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Yes Sir, SS is indexed (to what the politicians want to pay out).

Under New Proposed Inflation Measure Seniors Would Lose $720 per Year in Social Security Payments

Economic Policy Journal
Robert Wenzel
July 18, 2011

As I have pointed out before, as part of the current deficit-reduction talks, White House officials and Congressional leaders on both sides of the aisle are advocating changes to the way inflation is calculated by using a method to measure inflation known as the “chained consumer price index.”

This method would likely result in a slower inflation adjustment rate payment on social security. So if you think the current CPI doesn’t reflect price inflation accurately, just wait until the SS administration starts using a Congressionally approved ‘chained consumer index”.

According the the Senior Citizens League, the average retiree would receive about $720 per year less in inflation adjusted benefits. But the SCL is assuming real price inflation rates around current levels, if price inflation accelerates, as is likely, the reduction in adjusted benefits based on the current measure of CPI will be much greater on an annual basis.

This fraudulent indexing scheme that will screw seniors is being hailed by some as a method a positive step social security. “This is a start in helping us fix Social Security,” says David John, a senior fellow at the Heritage Foundation, according to Smart Money. If Bernie Madoff ever proposed such a thing he would of ended up in the slammer, much earlier on in his Ponzi scheme than he did.

The United States shouldn’t be in the savings business at all, as is evident, they will use the money to engage in wars and otherwise siphon money off to the politically collected. That said it is an outrage that the government will play with the promised income of the elderly, many of whom trusted the government and have no other sources of income.