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‘Increase in SS COLA not enough for man’amko’
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Posted on Dec 07 2008
Department of Community and Cultural Affairs Deputy Secretary Melvin O. Faisao said the expected 5.8 percent increase in Social Security’s Cost of Living Adjustments next year would not be enough to offset the rapidly rising costs of most basic necessities, especially for the CNMI’s elderly.
Faisao said the man’amko’s cost of living outpaces the COLA
“Even with the recent decreases on gasoline prices, we need to take into account that the Baby Boomers are expectedly living longer and their (man’amko) desires for independently making choices for a healthier future,” Faisao said.
He said the 5.8 percent adjustments that would be in effect in 2009 would still be very hard to absorb for retirees on fixed incomes.
“In the CNMI, the Commodity Price Index is pegged at 14 percent since last increase and prices remains steadfastly intact. COLA’s are in essence inadequate for competitive stage to protect the buying power of Social Security Benefits and Retirees, leaving a growing number of senior citizens to accumulate significant debt with some of the most aged and vulnerable, unable to pay off basic necessities such as power/water and mortgages,” Faisao said.
In essence, he said, the man’amko are spending their money very differently than younger working people.
He said the elderly spend much more on health care costs, but have much more lower income to do so.
Faisao noted that the latest report from United States Department of Agriculture is that food prices are soaring and there is a possibility that the Part D Plan of the Medicare may have an increase in the range of 24 percent to 28 percent in 2009.
