This post has been modified to make clear that if the current financing crisis isn’t resolved, some Americans may not receive their full benefits.
Although Social Security’s long-term viability is uncertain, some representatives in Congress are working to guarantee that retirees will receive their full benefits. According to a news release from DeFazio’s office, the Social Security Expansion Act (SSEA) was first proposed in June by Representative Peter DeFazio (D-Ore.) and Senator Bernie Sanders (I-Vt.).
CBS News reports that the proposed legislation would increase monthly benefits for Social Security recipients by $200, or by 12%.
The Social Security Administration warned that without legislative action to solve the financial shortfall, Americans would no longer receive their full benefits in 13 years.
Who Will Benefit From These Social Security Increases?
This additional $200 per month will be added to the benefits of everyone who is already receiving Social Security or who reaches the earliest eligibility age of 62 in 2023. Under a new plan proposed in Congress, Social Security recipients might receive an extra $2,400 every year.
Oregon Democrat Peter DeFazio and Independent Vermont Senator Bernie Sanders introduced the Social Security Expansion Act in June. Current Social Security recipients or those who will reach 62 in 2023 would be eligible to receive an additional $200 in their monthly checks under the provisions of the bill.
Inflation and rising healthcare expenses are anticipated to eat away at the highest Cost-of-Living-Adjustment that Social Security recipients may expect in 2023, which is when the law will be enacted.
The projected rise for next year places the average monthly payout at $175.10, up from the current $1542.22.
Other Social Security Proposals
In addition to increasing benefits each month, the bill would alter how cost-of-living adjustments (COLAs) are calculated by shifting from using the Consumer Price Index for Urban Wage Earners and Clerical Workers to using the Consumer Price Index for the Elderly, which would account for greater increases in healthcare and drug costs. According to the bill’s explanation, this legislation would make any income over $250,000 liable to Social Security payroll taxes, up from the present maximum of $147,000.
Child dependents of disabled or deceased workers who are enrolled full-time in an accredited college or vocational school would also be eligible for a restoration of student benefits up to the age of 22 under the proposed legislation. In 1983, people were no longer eligible for these benefits.
More than fifty organizations are in favor of the bill. These organizations include the American Federation of Government Employees, the National Education Association, the American Civil Liberties Union, and the American Federation of Retired Persons.
Stay tuned for more updates, Venturejolt.