Updates on Social Security: More Achievements to Come?
The new social security bill would bring sweeping changes to Social Security benefits, including hiking the annual cost-of-living adjustment to better reflect costs incurred by seniors, reports say.
This new bill combines Biden’s proposals with House Ways and Means initiatives to expand and enhance Social Security benefits, said Rep. John Larson, D-Conn., chairman of the House Ways and Means subcommittee on Social Security, who brought the bill forward.
Read more: Social Security Cost of Living Adjustment Officially Announced for 2022
The bill, called “Social Security 2100: A Sacred Trust,” would provide an increase for all beneficiaries that is equivalent to about 2% of the average benefit.
It would also tweak the annual COLA by adopting a CPI-E (Consumer Price Index-Elderly) formula designed to take into account health care expenses, which seniors spend a greater portion of their income on than other age groups.
According to Larson, “Improved inflation protection will especially help older retirees and widows who are more likely to rely on Social Security benefits as they age.”
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The 2022 COLA represents the biggest jump in benefits in about 40 years. The Social Security Administration also announced this week that 2022 Social Security and Supplemental Security Income benefits will be boosted 5.9% to help seniors with the rise in the cost of living.
By comparison, in 2021, Social Security taxes are capped at $142,800 in wages. In 2022, that limit rises to $147,000.
Read more: New Social Security Bill to Improve Cost-of-Living Formula for Senior Citizens
Here are other benefits the bill will present:
- Set a higher minimum benefit for low-income workers
- Offer a benefit boost of roughly 2% for new and existing beneficiaries
- Include a cost-of-living adjustment tied to the Consumer Price Index for the Elderly (CPI-E)
- Extend benefits for students up through age 25
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- Increase certain widow and widower benefits
- Boost benefits after 15 years
- Eliminate the five-month waiting period for disability benefits
- Create caregiver credits for people who take time out of the workforce to care for family members so their benefits are not reduced
The bill also aims to eliminate a higher payroll tax rate to fund the Social Security increases. In its place, caps for Social Security taxes paid by high-wage earners would rise.
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