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FOR IMMEDIATE RELEASE
Contact:
Lauren Astor, AltaMed (323) 622-2408
Kathy Mimberg, NCLR (202) 776-1714
Andrew Sousa, Global Policy Solutions (202) 265-5111
Panel unveils plan to modernize the program for future U.S. “majority-minority” population
LOS ANGELES—A town hall meeting in Los Angeles today brought together national advocates, local leaders, and seniors from the Black, Hispanic, and Asian American communities who are concerned that Congress may cut Social Security benefits that keep millions of Americans out of poverty. A panel of experts emphasized the need to modernize Social Security to ensure the program’s long-term solvency and improve benefits for the growing population of workers and families of color who are more vulnerable to economic instability and far less likely to have generational wealth than White families.
The forum, which was hosted by AltaMed Health Services Corporation, NCLR (National Council of La Raza), Global Policy Solutions, Insight Center for Community Economic Development (Insight), and Latinos for a Secure Retirement (LSR), featured remarks from Representative Judy Chu (CA-32) and offered simultaneous interpretation in Spanish and Chinese.
Although Social Security is self-funded and does not contribute to the national deficit, there is mounting concern that the Congressional Super Committee now meeting will recommend mainly a cuts approach to Social Security that would reduce cost-of-living increases or raise the retirement age.
“Any changes to Social Security must consider key differences in how racial and ethnic groups use the program. For example, Latinos and Asians have longer life expectancies than Whites or other minority groups, so the annual cost of living adjustment (COLA) is especially important because it maintains the purchasing power of Social Security benefits over time,” said Maya Rockeymoore, President and CEO of Global Policy Solutions. “And maintaining a strong benefit for those who retire earlier is vital to shorter-lived African Americans and Native Americans.”
“Social Security keeps 20 million Americans out of poverty and people of color rely more heavily on these benefits than other Americans,” said Leticia Miranda, Associate Director of NCLR’s Employment and Economic Policy Project. “We must protect those who rely on this program from across-the-board cuts that could leave them more insecure than they are today.”
Despite a progressive formula that favors low-wage workers, most Social Security benefits are modest and compose a large part of the income of minority seniors. In 2009, the average yearly benefits for Black senior men and women were $13,889 and $11,369, and for Hispanic senior men and women, these were $12,823 and $9,968. Asian American and Pacific Islander senior men and women collected average yearly benefits of $13,783 and $11,102. These modest Social Security benefits represent at least 90 percent of the income for about half of Latino, Black, and Asian American seniors today.
The speakers outlined a new report by the Commission to Modernize Social Security, Plan for a New Future: The Impact of Social Security Reform on People of Color, which lays out a plan for increasing revenue, in part by urging Congress to “Scrap the Cap” on Social Security payroll contributions (currently capped at $106,800 for high wage earners) and making the benefit formula less generous for high earners. This option alone would eliminate most of Social Security’s long-term revenue shortfall, making harmful across-the-board benefit cuts unnecessary.
The Commission’s recommendations provide enough revenue to increase benefits for vulnerable populations such as those who are long-lived, low-income widowed spouses, orphaned college students, caregivers, and long-term low-wage workers.
“We oppose the cuts-only approach favored by many in Congress and urge our nation’s leaders to improve Social Security’s revenue base so it is sustainable and can better meet the needs of our future workforce,” said Meizhu Lui, Director Emeritus for the Insight Center for Community Economic Development.
“Social Security benefits provide a lifeline to the seniors we serve in Los Angeles and Orange Counties. They are worried about changes that could reduce their benefits and those of future generations. Seniors are concerned about the state and federal budget cuts that could reduce their benefits, affecting their ability to stay healthy and placing undue burdens on their children and grandchildren,” said Dr. Marie Torres, Senior Vice President of Government Relations and Community Research Initiatives at AltaMed Health Services Corporation.
In Los Angeles County, Social Security contributes $14.5 billion annually to the local economy by paying benefits to 1.5 million residents of the county, including 765,380 retirees, 142,095 disabled workers, and 83,360 children. Social Security serves five million residents of California and prevents 1.1 million of them from living in poverty. The Los Angeles forum is the fourth in a series being held across the country as part of the Latinos and Social Security: ¡Tu Futuro Cuenta! campaign.
For more information about AltaMed Health Services Corporation, visit www.altamed.org.
For more information about NCLR, visit www.nclr.org or www.nclr.org/socialsecurity.
For more information about Global Policy Solutions, visit www.globalpolicysolutions.com.
For more information about the Insight Center for Community Economic Development, visit www.insightcced.org.
For more information about Latinos for Secure Retirement, visit www.latinosforasecureretirement.org.
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