New legislation, the Safeguarding American Families and Expanding Social Security (SAFE Social Security) Act, would increase benefits for all current and future beneficiaries by an average of more than $150 a month.
The bill, S.3462, sponsored by Sen. Brian Schatz, D-Hawaii, would phase out the cap on wages subject to payroll tax — currently $184,500 — by 2030 and calculate the cost of living adjustment using the Consumer Price Index for the Elderly, or CPI-E rather than the Consumer Price Index for Urban Wage Earners, or CPI-W.
The bill would adjust current benefit calculations, resulting in about a $150 a month increase, Schatz said in a statement.
"The SAFE Social Security Act strengthens Social Security’s financial foundations by increasing revenue dedicated to support the program," Max Richtman, president and CEO of the National Committee to Preserve Social Security and Medicare, said Tuesday in an email. "It eliminates the current cap on Social Security taxes, thus subjecting all earned income to FICA contributions. The bill also provides that the additional Social Security taxable wages stemming from this provision will be taken into account in determining workers’ benefits, which we believe is an important element of the bill."
Nancy Altman, president of Social Security Works, added in another email Thursday that "this essential legislation substantially increases benefits for all current and future beneficiaries by an average of more than $150 a month. It also ensures that all benefits can be paid in full and on time for the foreseeable future by requiring the wealthiest to contribute at the same rate as the rest of us."
Shannon Benton, executive director of The Senior Citizens League, added in another email that "at a time when many Americans are worried about retirement security and rising costs, S.3462 sends a clear message that Congress is committed to protecting earned benefits and ensuring Social Security remains strong for decades to come."
The Social Security Emergency Inflation Relief Act, introduced last November, would increase Social Security benefits by $200 per month to account for inflation.
The bill, S. 3078, introduced by Sens. Elizabeth Warren, D-Mass.; Ron Wyden, D-Ore., and Chuck Schumer, D-N.Y., would provide economic recovery payments to recipients of Social Security, supplemental security income, railroad retirement benefits, and veterans disability compensation or pension benefits. The $200 benefit boost would last for six months, starting Jan. 1.
Schatz's bill was last introduced in 2015. The Office of the Chief Actuary said at the time that the bill would have extended trust fund solvency by 15 years, to 2048.
"At the time of the original Actuaries' analysis, the Schatz bill would have reduced the long-range (75 year) actuarial deficit by 1.33% of taxable payroll, from a deficit of 2.88% of payroll under the law at the time to a deficit of 1.55% of payroll under the proposal," said a spokesperson for the National Committee to Preserve Social Security and Medicare, citing the actuary analysis.
Schatz has likely asked for an updated analysis, "but it's not likely to differ dramatically from the one 10 years ago," the spokesperson said.
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