Here’s Why Social Security Reform is a Matter of When Not If
Social Security is an ever-evolving program. The original law — the Social Security Act of 1935 — provided benefits only for a retired worker age 65 or older. That is no longer the case. Thanks to a series of amendments (some minor technical adjustments, others major changes to the program) Social Security now provides survivor and disability benefits and is available to people to start claiming as young as 62.
With Social Security facing serious insolvency issues, it appears another amendment may be in order. The Dallas Morning News did a great job of examining some of the more important amendments that have passed since the program was established.
Social Security Evolution
Almost every year since the Social Security Act was passed in 1935, there have been amendments to that original law. Here are some of the notable changes:
The 1939 Social Security Amendments added benefits for a dependent wife 65 and older and for the minor children of a retiree. They also included the first survivors’ benefits.
The 1950 Social Security Amendments added divorce benefits.
The 1956 Social Security Amendments created a major new Social Security program: disability benefits.
The 1972 Social Security Amendments introduced the concept of a “delayed retirement bonus” which for the first time offered an incentive to workers who wait to file for retirement benefits until beyond age 65.
The 1983 Social Security Amendments bumped up the retirement age from 65 to 67. A minor tax increase was implemented, and Social Security benefit payments to children over age 18 were eliminated. Also, for the first time, Social Security benefits became taxable. Incidentally, when these changes were implemented, the Social Security system was much closer to insolvency than it is today.
What’s Next?
As we get closer to tapping out the Social Security trust fund, Congress will have no choice but to act. Lawmakers will need to pass amendments to the Social Security laws that will keep the program solvent for generations to come.
The Seniors Trust believes the solution has already been introduced. We want Congress to enact The Social Security Expansion Act. This landmark bill 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.
• The minimum Social Security benefits would be increased to provide higher payments to seniors and greatly reduce senior poverty.
• The long-term solvency of the Social Security program would be guaranteed.
Please join us in our efforts to protect and improve Social Security benefits. Tell your elected leaders in Washington to pass The Social Security Expansion Act today!
