Let’s Look at Some of the Proposed Legislation Impacting Social Security
The future for Social Security is looking bleak. According to the latest Social Security Board of Trustees report, the Old-Age and Survivors Insurance (OASI) Trust Fund — the fund that pays retirement benefits — will reach a deficit in 2033. That’s one year earlier than reported last year. At that time, the fund’s reserves will become depleted and Social Security will only be able to pay 77 percent of scheduled benefits. That’s a significant cut that is bound to hurt retirees who rely on their monthly benefit checks.
Proposed Plans
Hopefully, it will never get to that. Lawmakers are busy trying to come up with solutions to solve Social Security’s solvency and other issues. Think Advisor looked into some of the proposed legislation now before Congress:
H.R. 82 – The Social Security Fairness Act of 2023 — Introduced by Rep. Garrett Graves (R-Louisiana), this bill repeals provisions that reduce Social Security benefits for individuals who receive other benefits, such as a pension from a state or local government.
H.R. 521 – The Social Security Guarantee Act — Sponsored by Rep. Alex Mooney (R-West Virginia), this bill would guarantee “the right of individuals to receive Social Security benefits under title II of the Social Security Act in full with an accurate annual cost-of-living adjustment.”
H.R. 853 – Social Security and Medicare Lock-Box Act — Sponsored by Rep. Tim Walberg (R-Michigan), this proposed legislation calls for a “lock-box” to be created for any payroll surplus in the programs’ trust funds and prevent these funds from being invested in U.S. bonds.
H.R. 6925 – Senior Independence Act of 2022 — Introduced by Rep. Glenn Grothman (R-Wisconsin), this bill would raise the retirement earnings threshold from $21,240 to $30,000, with future increases tied to inflation.
S. 393 – Social Security Expansion Act — Sponsored by Sen. Bernie Sanders (I-Vermont) and Sen. Elizabeth Warren (D-Massachusetts) among others, this bill would increase Social Security benefits by $2,400 a year and adopt the Consumer Price Index for the Elderly (CPI-E) when determining cost-of-living adjustments for Social Security benefits.
S. 424 – Protect Our Seniors Act — Introduced by Sen. Rick Scott (R-Florida), this bill would establish a new Senate rule requiring a two-thirds vote on any legislation cutting Social Security or Medicare benefits. It would also redirect part of the $80 billion IRS funding boost under the Inflation Adjustment Act to the Social Security and Medicare trust funds.
S. 664 – A bill to ensure that Social Security beneficiaries receive regular statements from the Social Security Administration, and for other purposes — Sen. Bill Cassidy (R-Louisiana) proposed legislation that would change the Social Security Administration’s benefits statement terminology from “early eligibility age,” “full retirement age,” and “delayed retirement credits” to “minimum benefit age,” “standard benefit age,” and “maximum benefit age” respectively in order to better reflect Social Security’s claiming design and how the program works.
The Best Bet
The Seniors Trust is committed to defending the financial security of America’s senior citizens. We are strong proponents of S. 393, the Social Security Expansion Act, a landmark bill that buttresses the long-term solvency of Social Security by expanding benefits for seniors — not cutting them!
If passed, this legislation will make four major changes to Social Security for retirees:
• Benefits will be increased for most recipients by about $200 per month.
• The Consumer Price Index for the Elderly (CPI-E) will be used to calculate Social Security Cost-of-Living Adjustments (COLAs) instead of the Consumer Price Index for Urban Wage Earners (CPI-W) used currently. The CPI-E takes the unique spending habits of seniors into account — particularly regarding the cost of healthcare — and offers a more realistic COLA for retirees.
• Increase minimum Social Security benefits to provide higher payments to seniors and greatly reduce senior poverty.
• Provide enhanced benefits would be set to greatly reduce senior poverty to guarantee the long-term solvency of the Social Security program.
Please join our efforts to ensure all retired Americans receive the full benefits they were promised — and that they worked so hard to help fund — by signing our petition urging Congress to pass this important piece of legislation now!
