Social Security 2100 Act

Social Security 2100 Act

This bill modifies the Social Security system, particularly with respect to benefit calculations, fund administration, and beneficiary resources.

For example, the bill temporarily increases the primary insurance amount for Social Security benefits for all individuals (from 90% of a certain portion of average indexed monthly earnings to 93%). It also modifies benefit calculations for certain individuals, including by temporarily (1) increasing benefits for widows or widowers in two-income households; and (2) allowing children of a deceased, disabled, or retired worker to remain eligible for benefits through age 25 if they are full-time students.

Additionally, the bill temporarily eliminates (1) the government pension offset, which reduces Social Security benefits for spouses, widows, and widowers who also receive government pensions of their own; and (2) the windfall elimination provision, which reduces Social Security benefits for individuals who also receive a pension or disability benefit from an employer that did not withhold Social Security taxes.

The bill also modifies the financing and administration of the Social Security trust funds. For example, the bill (1) subjects income over $400,000 to Social Security payroll taxes, and (2) combines the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund into a single Social Security Trust Fund.

Finally, the bill establishes requirements relating to Social Security services and resources, including by prohibiting the closure of field offices unless certain conditions are met (e.g., public hearings).

The Social Security 2100 Act, also known as Bill 118 hr 4583, is a piece of legislation introduced in the US Congress aimed at strengthening and expanding the Social Security program. The bill proposes several key changes to ensure the long-term sustainability of the program and improve benefits for current and future beneficiaries.

One of the main provisions of the Social Security 2100 Act is an increase in the payroll tax rate. Currently, employees and employers each contribute 6.2% of wages to the Social Security program. The bill proposes gradually increasing this rate to 7.4% over a period of seven years, with the goal of ensuring the program's solvency for the next 75 years.

In addition to increasing the payroll tax rate, the bill also includes a provision to increase benefits for current and future Social Security recipients. This includes a change in the way cost-of-living adjustments are calculated, as well as an increase in the minimum benefit for low-income earners. Furthermore, the Social Security 2100 Act aims to address the gender pay gap by providing additional benefits for widows and widowers, as well as caregivers who take time off work to care for a family member. The bill also includes measures to protect Social Security funds from being used for other purposes, ensuring that the program remains dedicated to providing retirement security for all Americans. Overall, the Social Security 2100 Act represents a comprehensive effort to strengthen and expand the Social Security program, ensuring its long-term sustainability and improving benefits for current and future beneficiaries.