0
Social Security 2100 Act
3/13/2024, 3:00 AM
Summary of Bill S 2280
One of the main provisions of the bill is an increase in Social Security benefits for all recipients. This would be achieved by adjusting the formula used to calculate benefits, resulting in higher monthly payments for retirees, disabled individuals, and survivors. The bill also includes a provision to provide a minimum benefit for low-income workers who have paid into the system for at least 30 years.
In addition to increasing benefits, the Social Security 2100 Act proposes to raise the payroll tax cap, which is the maximum amount of income subject to Social Security taxes. Currently, only income up to a certain threshold is subject to the payroll tax, but the bill would increase this threshold to ensure that higher-income individuals contribute more to the program. The bill also includes measures to improve the financial stability of the Social Security Trust Fund, such as gradually increasing the payroll tax rate over time and implementing a new formula for calculating cost-of-living adjustments. These changes are intended to ensure that the program remains solvent and able to provide benefits to future generations of retirees. Overall, the Social Security 2100 Act aims to strengthen and expand the Social Security program to ensure that it continues to provide vital support to millions of Americans in their retirement years. The bill has garnered bipartisan support in Congress and is currently under consideration in committee.
Congressional Summary of S 2280
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).
