It’s Time the Government Enacts Another Social Security Reformation Act
The Social Security Fairness Act was signed into law earlier this month. It ends reductions of Social Security benefits for firefighters, police officers, and teachers as well as many local, state, and federal employees who also receive pension income.
According to an article by CNBC, the Congressional Budget Office estimates these benefit increases will cost $196 over the next decade. This is expected to move up Social Security’s trust fund depletion date by six months.
Before the Social Security Fairness Act was enacted, the Social Security trust fund was projected to be depleted by 2033. At that time, it would only be able to pay 79 percent of the expected benefits. This means recipients could face a 21 percent benefit cut. This is very concerning because more than three-quarters (77 percent) of current retirees rely on Social Security to pay their necessary expenses.
The Solvency Solution
The Seniors Trust believes it’s more important than ever that Congress now focus on solving Social Security’s solvency issue. The best way to ensure the longevity of this crucial program is through the passage of the Social Security Expansion Act. Not only will this landmark piece of legislation ensure the long-term solvency of Social Security, but it will also provide seniors with bigger benefits.
Under this bill, seniors would receive an extra $2,400 in benefits each year. In addition, it would recalculate the way the Social Security cost-of-living-adjustment (COLA) is calculated, using the Consumer Price Index for the Elderly (CPI-E) instead of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The CPI-E more accurately reflects the actual spending of seniors, which tends to be on expenses such as healthcare and housing.
To fund the proposed benefits boost and maintain solvency far into the future, the Social Security Expansion Act calls for applying the Social Security payroll tax on all income above $250,000. Currently, earnings above $176,100 aren’t subject to the Social Security tax.
If enacted, the Social Security Expansion Act could keep Social Security solvent for about 75 years.
Show Your Support
Please join The Seniors Trust in urging lawmakers to finally pass the Social Security Expansion Act. You can show your support by signing our petition to Congress. It will take just a minute of your time but could provide long-lasting financial support for senior citizens now and in the future.
