Bloomberg News

Pelosi Won’t Rule Out New Social Security Inflation Formula

October 27, 2011

Oct. 27 (Bloomberg) -- House Minority Leader Nancy Pelosi today wouldn’t rule out changing the formula for calculating cost-of-living increases for Social Security benefits if it is accompanied by higher taxes.

“Let’s just see a package, let’s not again exclude anything,” the California Democrat told reporters in Washington when asked about deliberations of the special committee charged with finding $1.5 trillion in savings in the U.S. budget.

Still, Pelosi said, “It’s not fair to say to a senior you are going to pay more for Social Security and we are not going to touch a hair on the head of the wealthiest people in our country.”

Under a revised formula for calculating Social Security inflation adjustments, seniors would get smaller increases in benefits, which would provide some with less money to pay their Medicare premiums.

The 12-member bipartisan supercommittee, which has met mostly in secret, has until Nov. 23 to present a proposal to Congress, which would be guaranteed a vote in the House and the Senate. Pelosi said the panel should debate the final proposal in “the public domain.”

--Editors: Mark McQuillan, Justin Blum

To contact the reporter on this story: James Rowley in Washington at jarowley@bloomberg.net

To contact the editor responsible for this story: Mark Silva at msilva34@bloomberg.net


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