Feb. 20 (Bloomberg) — President Barack Obama plans to drop his proposal to reduce cost-of-living adjustments for Social Security and other benefit programs in the budget his administration releases March 4 for the 2015 fiscal year.

The so-called chained-CPI formula was part of a bid by the president to engage in deficit-reduction negotiations with Republicans. It wasn't adopted after a standoff over taxes and spending. It also was criticized by many congressional Democrats and some of Obama's political allies.

Josh Earnest, a White House spokesman, said the proposal remains on the table if talks on deficit reduction resume.

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