National Active and Retired Federal Employees Association (NARFE) President

Margaret L. Baptiste said Thursday that her organization is disappointed that

the Senate sidetracked an amendment by Sen. Bernard Sanders (I-VT), that would

have provided a one-time $250 payment to most older Americans.

Sanders and Sens. Christopher Dodd, D-CT, Patrick Leahy, D-VT,  Sheldon

Whitehouse, D-RI, Kirsten Gillibrand, D-NY, Frank Lautenberg, D-NJ, and Mark

Begich, D-AK, tried to attach the amendment to H.R. 4213, a bill to extend

unemployment compensation, renew several expiring tax breaks, help states with

skyrocketing Medicaid costs and prevent doctors from having to absorb cuts in

Medicare reimbursements.  The 47-50 vote that killed the Sanders amendment

was on a procedural motion on whether the Senate would consider as "emergency

spending" the $12.7 billion price of the $250 payment.

"While all older Americans are trying to make ends meet in a tough economy

and in a year with no cost-of-living adjustment (COLA), federal annuitants are

particularly burdened by 12-15-percent increases in their health insurance

premiums and a 25 percent hike in Federal Long Term Care Insurance Program

premiums," said Baptiste.

 "What's more, federal, state and local government retirees who are not

eligible for Social Security benefits have been particularly hard hit this year

because they have shouldered a 14-percent increase in their Medicare Part B

premiums while most Social Security beneficiaries were protected from the rate

hike."

The lack of a COLA is being felt by millions of people because the annual

calculation affects the income of 47.8 million Social Security beneficiaries,

4.1 million military and federal civil service retirees as well as survivors,

veterans, railroad retirees and Supplemental Security Income (SSI)

beneficiaries.

The payment under the Sanders amendment is identical to the $250 payment

provided to older Americans who received Social Security, Veterans', Railroad

Retirement, and Supplemental Security Income in 2009 under the American Recovery

and Reinvestment Act of 2009 (ARRA).  In addition, the Sanders amendment,

like ARRA, would have offered a refundable $250 tax credit in 2010 to over 1

million federal, state and local government retirees who are not eligible to

receive Social Security benefits. 

These public-sector employees who did not contribute to Social Security

instead contributed to a public pension fund that partially operates as their

social insurance. While some retired public employees are eligible for Social

Security benefits through other Social Security-covered employment or through

marriage, many of them remain ineligible for any Social Security

benefits.