Rep. John Larson, D-Conn., and other lawmakers discuss Social Security Act 2100, which will include increased minimum benefits, on Capitol Hill on October 26, 2021.
Drew Angerer | Getty Images News | beautiful pictures
Social Security has passed a new milestone when it reached 87order celebrate on Sunday.
The program was signed into law by President Franklin Delano Roosevelt on August 14, 1935. Today, it provides monthly checks to more than 65 million beneficiaries.
But now it faces a deadline after which the program will no longer be able to fully pay benefits, if Congress does not act sooner.
By 2035, according to the program’s trustees, only 80% of the benefits need to be paid.
House Democrat John Larson of Connecticut and Pramila Jayapal of Washington teamed up Monday to call for the Social Security expansion bill to be put up for a vote this fall.
More from Personal Finance:
Social Security average monthly benefit could increase by $159 by 2023
Protecting Social Security from high inflation in voters’ minds
The Social Security Calculator can assess how the cut might affect you
That proposal, called Social Security 2100: A Sacred Trust, would expand benefits, which have not been implemented in about 51 years, said Larson, the bill’s proponent and chair of the House Ways and Subcommittee Means on Social Security, note.
“It’s long overdue for us to make sure we’re ramping up a program they need, especially during this pandemic,” Larson said of the program’s beneficiaries.
Jayapal, who serves as chairman of the radical caucus, has urged action as soon as next month.
Jayapal said: “When Parliament returns from recess in September, we need to bring this bill to the committee and then send it to the floor for a vote.
Congressman Pramila Jayapal, D-Wash., participates in a televised interview at the US Capitol on November 4, 2021.
Elizabeth Frantz | Reuters
The latest Social Security Bill 2100 introduced by Larson aims to enhance Social Security benefits in several ways.
It calls for increasing all checks to about 2% of the average interest. At the same time, it would also put the minimum benefit above the poverty level and tie it to current wages.
Measures for the year Cost of living will be changed with the goal of better keeping up with the costs faced by retirees.
Widows will also receive more generous benefits. It would repeal rules that reduce benefits for public workers, including the Windstorm Exclusion Clause and the Government Pension Compensation.
The bill also calls for providing carer credits to people who spend non-work time caring for children or other family members.
Student benefits will be extended to age 26. Children living with grandparents or other relatives will also have increased access to benefits.
The bill also calls for an end to the five-month waiting period for disability benefits.
To pay for the added benefit, the bill requires re-imposition of the Social Security payroll tax with wages above $400,000, it is estimated to affect about 0.4% of salaried workers.
Currently, wages up to $147,000 are taxed for Social Security in 2022. Employers and employees must each pay 6.2% tax on wages, for a total of 12.4%.
Social Security 2100: Sacred Trust Now Available 202 Democratic Co-sponsors in the House of Commons.
This is one of a number of Democratic proposals to address Social Security reform. While the proposals vary, each seeks to increase benefits while getting the wealthy to pay more for the program.
One key difference, however, is how long they extend the program’s solvency. The Social Security Act 2100 would extend the expiration date to 2038 from the current projected date of 2035. Another proposal led by Sens. Bernie Sanders, I-Vt., and Elizabeth Warren, D-Mass., will extend the program’s solvency through 2096 while expanding benefits.
While Democrats can negotiate the details of their proposals, they will also have to compete with Republicans, who have expressed opposition to expanding benefits and increasing tax.
Senator Rick Scott, R-Fla., has received much criticism for his proposal to stop government programs like Social Security and Medicare every five years. In one Senate hearings in Junehe denied any intention to cut benefits.
“I have justly asked Congress to reconsider these programs,” Scott said. I will never support cuts to Social Security, Medicare or Medicaid. “
Even so, support from both sides will be needed to pass any changes to the program in both chambers. But it remains to be seen what remedial solutions both sides can agree on.
Andrew Biggs, a senior fellow at the American Enterprise Institute who was nominated by President Joe Biden to the Social Security Advisory Board that could pass, would be a compromise, said CNBC.com interview.