Today the White House confirmed that their budget proposal would include a major cut to Social Security in the form of a shift to chained CPI.
The Chained CPI reduces the growth of benefits by using a different index to measure inflation.
The AARP, one of the nation's most powerful interest groups for people aged 50 and over, is prepared to mount a counter-assault.
Shifting the cost of living adjustment to chained CPI serves as a major long-term cut for Social Security benefits. It has infuriated liberal groups and members of Congress, but raising the ire of AARP — a key supporter of his health care reform — could turn a previous ally of the President into a powerful adversary.
Cristina Martin Firvida, the director of financial security at AARP, told Business Insider Wednesday that Obama's plan to toggle with Social Security benefits is potentially historic.
"What's so surprising about the momentum behind chained CPI is it's the only time anyone has put on the table a cut to current benefits for deficit reduction. It's not a phase-in. You're already retired."
AARP projection of the real dollar impact of chained CPI (C-CPI-U) over the course of a retirement
Chained CPI had been discussed as a potential fix as early as the summer of 2011, but has reached a fever pitch over the past several days following the official announcement that the President has included the measure in his budget as a concession to the GOP.
rest http://www.businessinsider.com/aarp-chained-cpi-barack-obama-budget-2013-4?nr_email_referer=1&utm_source=Triggermail&utm_medium=email&utm_term=Politics%20Select&utm_campaign=Politics%20Select%202013-04-10&utm_content=emailshare
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