Congressional lawmakers are currently debating making changes to social security in order to reduce the federal deficit. These changes would consist of altering the way that the social security benefits are calculated. Currently the system uses CPI which stands for Consumer Price Index and this value is used to calculate the annual cost of living adjustment. The COLA is a value that is released annually by the US Bureau of Labor Statistics. According to the annual CPI, consumer prices had a two percent increase in 2012 and Social Security benefits have increased by the same amount.
Chained CPI is an alternative way to measure inflation which began to get released by the Bureau of Labor Statistics in 2012.This would help the federal deficit because Chained CPI finds smaller increases in consumer prices when compared to traditional CPI. You can view the entire article here.