Larson Introduces Bill to Prevent Social Security Benefit Cuts Due to COVID-19, Expand Benefits | Congressman John Larson

As a result of the economic impact of the pandemic, several predictions show that Social Security will not be able to pay full accrued benefits as early as 2031.

No matter, after all, Congress has ignored this looming crisis for decades. In the meantime pandering politicians have no trouble proposing expanding the program. The press release doesn’t mention how these changes will be paid for.

According to the Trustees, the combined Social Security trust funds have an actuarial deficit equal to 3.21% of payroll. And yet here is a proposal to increase all benefits by 2%. (by the way, that equals about $7.50 a week for the average Social Security beneficiary).

The Social Security COVID-19 Correction and Equity Act will fix the notch and address the inequities as follows:

prevents the cut in benefits due to the notch for those born in 1960 (or any year in the future, if a similar situation reoccurs) by ensuring that the Average Wage Index as used for these purposes never drops below the previous year’s level – while carefully avoiding any benefit cut compared to current law;

increases benefits by 2 percent;

includes provisions to help grandparents provide for dependent grandchildren, assist dependent students so that they can get the education they need to get a good job, expand benefits for dependent widows/widowers so they can make ends meet, and provide more help to the poorest of all by expanding eligibility for Supplemental Security Income.

increases the threshold to 125 percent of the poverty level for the special minimum benefit, lifting more lifelong workers out of poverty;

reduces taxation on benefits for lower-middle income beneficiaries who are struggling to provide for themselves and their families, and

includes provisions to help grandparents provide for dependent grandchildren, assist dependent students so that they can get the education they need to get a good job, expand benefits for dependent widows/widowers so they can make ends meet, and provide more help to the poorest of all by expanding eligibility for Supplemental Security Income.

Source:https://larson.house.gov/media-center/press-releases/larson-introduces-bill-prevent-social-security-benefit-cuts-due-covid-19

5 comments

  1. I didn’t see how he was planning to pay for his plan. So if you don’t cut benefits when the fund runs out of money but instead you increase benefits by 2%, won’t this speed up the process? About the year 2031 or so, social security can only pay benefits based on income from what social security taxes that can be collected at the time. How does his plan work?

    I think this is another missed opportunity to finally fix the social security trust fund funding mess. But on the positive side, at least this idiot gets that the trust fund is being depleted and something must be done. He at least finally pulled his head out of his ….., I mean sand. It doesn’t seem like anyone else in congress has.

    Like

  2. I was born in 1960 and, therefore, support the proposal with respect to not allowing the average wage index to be reduced. All of the other considerations should be addressed outside of the social security benefits program.

    Like

      1. I’ll go on the record as not liking my idiots and “dislike” is being very, very kind. But for some reason, it seems like I am the only one who keeps voting against them. It is very frustrating year after year.

        Like

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