What You Need to Know
- The new COLA formula, based on CPI-E, will help seniors who spend a greater portion of their income on health care.
- It's been 50 years since Congress has enhanced Social Security benefits, Larson said.
- The bill also includes a benefit bump equivalent to about 2% of the average benefit.
House Ways and Means Social Security Subcommittee Chairman John Larson, D-Ct., introduced Tuesday his new legislation, Social Security 2100: A Sacred Trust.
The bill adopts the Consumer Price Index for the Elderly as the basis of the annual cost-of-living adjustment (COLA), applies the payroll tax to wages above $400,000, combines the Old-Age and Survivors and Disability Insurance trust funds, includes a 2% benefits bump, and extends the depletion date (when a 20% cut to benefits would occur) to 2038.
“Here’s the deal: The majority of Americans, including 75% of independents, 78% of Democrats and 79% of Republicans feel leaders in Washington do not understand how hard it is for Americans to save for retirement,” Larson said during a press conference to introduce the bill.
What Your Peers Are Reading
Larson said House Ways and Means is “looking forward” to holding a hearing on the bill in November followed by a markup.
“People’s skepticism is validated by Congressional inaction,” he continued. “It’s been 50 years, let me repeat that, 50 years since Congress has enhanced Social Security benefits and 38 years since it has taken any comprehensive action.
“This is compounded by the fact that 10,000 Baby Boomers a day become eligible for Social Security. And millennials will need Social Security more than any generation before,” he stated adding that there are 65 million Social Security recipients.
Larson introduced the legislation along with Majority Whip James Clyburn, D-S.C.; House Ways and Means Chairman Richard Neal, D-Mass.; Sen. Chris Van Hollen, D-Md.; and other Ways and Means Democrats.