A COLA Shake-Up That Could Save Social Security Solvency

Social Security is facing a sustainability crisis. Predictions are that the retired worker’s trust fund will be depleted in about six years, at which time Social Security will only be able to pay 77% of benefits. Several possible solutions have been floated, such as raising the full-retirement age or eliminating the payroll tax cap for high-income earners.

A recent article posted to MSN says there’s “another innovative solution to the mix: limiting cost-of-living adjustments (COLA) for the highest-income earners.” It comes from the Committee for a Responsible Federal Budget (CRFB), a bipartisan nonprofit, which believes the proposed change “could be a rapid, thoughtful, and progressive way to help restore solvency and put Social Security on a sustainable path.”

The Seniors Trust believes there’s a better way to ensure Social Security solvency. We want Congress to finally enact the Social Security Expansion Act. Not only will it secure long-term solvency of the Social Security program, but this landmark piece of legislation will also give retirees an immediate benefits increase of about $200 a month, a fair annual COLA, and increased minimum benefits.