Speaker Pelosi: Bring Larson’s Social Security proposal to a floor vote

Published in RINewsToday on September 12, 2022

On the 87^th Anniversary of Social Security, the Washington, DC based Social Security Works (SSW) hosted a “Social Security Town Hall Meeting” to get the word out about the importance of passing the Social Security 2100: A Sacred Trust.

The virtual town hall meeting brought together House lawmakers, aging advocates and beneficiaries to send a strong message to House Democratic leadership to support the markup of Congressman John Larson’s (D-CT) social security proposal to expand and strengthen Social Security and send it to the House floor for a vote.

The town hall participants, including host Nancy Altman, President of Social Security Works, Larson, chair of the Social Security Subcommittee of the House Ways and Means, Congresswoman Pramila Jayapal, Chair of the Congressional Progressive Caucus, Peter Morley, Patient Advocate and co-founder of Health Care Awareness month, and John Blair, who chairs the Community Advisory Board, SPACE in Action, strongly supported quick action and passage of the legislative proposal. Additionally, several members of Congress also pre-recorded videos which were played at the end of the town hall meeting.

Town hall participants used the Aug. 15th virtual town meeting to highlight polls that show Democratic and Republican voters strongly support Democratic proposals to expand Social Security, and to call on House leader Nancy Pelosi to schedule a vote on Larson’s legislative proposal prior to the upcoming mid-term elections.

Throughout the hour-long internet discussion, they also condemned the recent attacks on Social Security from Senate Republicans. Specifically, Sen Ron Johnson has called for Social Security spending to be considered “discretionary spending” and subject to routine budget negotiations, even though the program is self-funded by workers. Sen. Rick Scott (R-FL), chairing the GOP’s committee to re-take the Senate, also has proposed a plan where Social Security would have to be renewed by Congress every five years. And finally, Sen. Mitt Romney (R-Utah) is pushing for passage of the TRUST Act, which could fast-track legislation to cut Social Security benefits.

“Social Security has provided our nation with the most comprehensive retirement, disability, and survivors benefits for 87 years,” said Larson. “Democrats are fighting to expand and protect it, yet my Republican colleagues have plans to cut benefits and even end the program as a whole,” he noted.

Larson noted that Congress had not acted in 50 years to enhance benefits. “The American people have made clear they want to protect the program they pay into with each and every paycheck so they can retire with dignity,” he said. “With the COVID-19 pandemic still impacting our country and Republicans revealing their plans to end benefits, there is a fierce urgency to protect and enhance Social Security now. Alongside commemorating 87 years of this program, Congress must pass Social Security 2100: A Sacred Trust to make much needed benefit improvements and ensure this program can serve our nation for years to come. Congress must vote!” he said.

Congresswomen Rep. Pramila Jayapal (D-WA), chair of the Congressional Caucus Progressive, representing 100 lawmakers made an urgent call for the protection and expansion of Social Security. “It’s not an entitlement program,” she said, stressing that it is an earned benefit.

“The work we have to do to make sure that this earned benefit pays out the dividends that keep up with the requirement and needs of our Social Security benefit is what H. R. 2100 is all about,” she said, pushing Larson’s Social Security legislative proposal.

Like Larson, Jayapal calls Social Security the most successful antipoverty program in this country. “It has lifted more than 20 million Americans out of poverty, including one million children and more 16 million older Americans. It provides a lifeline to over 16 disabled persons.,” she says.

Julian Blair, Chair of the Advisory Board, SPACEs in Action, called for Congress to get behind expanding and protecting Social Security. “Expanding Social Security …will allow us seniors, and many other people who depend on Social Security, to live with a little dignity—a right all of us have earned and should expect to receive from our country,” she said.

Peter Morley, Patient Advocate & co-founder of Health Care Awareness Month, who is permanently disabled,” urged that Congress overhaul the and expedite the process for patients applying to SSDI and SSI. “They should not have to wait for years. It’s a tragedy and a shame on our country,” he said.

Urgency to Act Now

Four days before SSW’s virtual town meeting, Max Richtman, President and CEO of the National Committee to Preserve Social Security and Medicare (NCPSSM) gave his thoughts as to the need to expand and strengthen Social Security in an opinion piece, “Let’s Honor Social Security’s 87^th Anniversary by Strengthening and Expanding it,” published on the digital site, The Hill.

When President Franklin D. Roosevelt signed the Social Security Act of 1935 into law 87 years ago, he didn’t “intend for it to remain frozen in place” but would need to be expanded with the nation’s changing demographics,” says NCPSSM’s Richtman.

“In fact, during the first 40 years of Social Security, Congress expanded the program no less than 15 times – mostly to broaden coverage and increase benefits.  In 1950, Social Security was expanded to cover domestic and agricultural workers.

In 1956, Congress added monthly disability benefits, which is why millions of workers with disabilities collect Social Security today. The 1972 amendments provided annual cost-of-living adjustments  (COLAs) to help beneficiaries keep up with inflation,” states Richtman.

“Sadly, benefits have not been significantly improved since then. Instead, lawmakers have prioritized keeping the program’s trust fund solvent amidst waves of retiring baby boomers. In 1983, Congress increased the payroll tax and raised the retirement age gradually from 65 to 67, which was, in effect, a benefit cut. It was ‘hard medicine’ that affects retirees four decades later. At the time, Congress had little choice because it waited so long to act that Social Security was just months away from being unable to pay full benefits,” added Richtman in his opinion piece.

Like Larson and Jayapal, Richtman also called for strengthening Social Security and in his opinion, piece, urging passage of the Social Security 2100 Act, that expands Social Security benefits and extends the life of the trust fund. At press time, this legislative proposal has 208 cosponsors in the House. The legislative proposal has not one Republican supporting it and some moderate Democrats still haven’t endorsed it.

Richtman also expressed strong concern about the Republican proposals to cut and privatize Social Security if they take over leadership of the House and Senate Chambers. “When Congress returns from summer recess, Democrats have a limited window to enact the Social Security 2100 Act before the midterm elections and subsequent lame duck session, observes Richtman.

According to Richtman, under Larson’s legislative proposal, all beneficiaries would receive a 2 percent increase in boost in benefits — with special increases for widows and widowers, lower-income workers, and retirees over 85 years of age. Future COLAs would be based on a new inflation formula – the Consumer Price Index for the Elderly – that more accurately reflects seniors’ spending patterns.

Richtman says that Larson’s Social Security proposal would increase the flow of tax revenues into Social Security. Currently, he noted that high earners do not contribute to Social Security on wages exceeding $147,000. Under this proposal, wages above $400,000 also would be subject to payroll taxes.

Overwhelming support for the Social Security’s proposal for passage

With the midterm elections just 57 days away, Congress must move quickly to bring Larson’s Social Security 2200 Act to the House floor for a vote. Even with President Biden and 208 Democratic House lawmakers calling for a House vote on Social Security 2100 Act, it has been reported that Wendell Primus, House Leader Nancy Pelosi’s senior staffer on domestic policy issues, has advised his boss to pull the Social Security proposal from markup, reportedly over cost concerns, effectively derailing Larson’s efforts to get a House vote on his legislative proposal.

Almost 40 aging groups have joined 208 House lawmakers in advocating for expanding and protecting Social Security benefits received by over 70 million Americans. Primus must rethink his position opposing House consideration. If the GOP retains control of the House and Senate chambers, Democrats will not be able for years to improve the financial health and expand Social Security benefits. The GOP will control the House and Senate’s legislative agenda. Congressional Democrats and aging advocacy groups would be put in the defensive position to keep the program that we know so well in existence.

For details about the Social Security 2100 Act, go to https://larson.house.gov/sites/evo-subsites/larson.house.gov/files/Social%20Security%202100%20-%20Fact%20Sheet%20117th.pdf

To watch the livestream event, “Social Security Town Hall Meeting,” go to https://www.youtube.com/watch?v=xycabwQSurI

_____

A Sacred Trust – moves to strengthen Social Security

Published on November 8, 2021 in RINewsToday

Almost two weeks ago, House Ways and Means Social Security Subcommittee Chairperson John B. Larson (D-Conn.) threw H.R. 5723, the Social Security 2100: A Sacred Trust, into the legislative hopper. During its unveiling in the historic committee room of the House Ways and Means Social Security subcommittee, the same room where Social Security and Medicare legislation was crafted in the 1930s and 1960, the Connecticut Congressman’s proposal comes on the heels of the Social Security Administration’s 2021 estimate that the trust funds that support the program will be depleted in just 13 years, averting an estimated 20 percent cut in benefits by 2034.

The Sacred Trust Act is the successor to Larson’s original Social Security 2100 Act, which he first introduced in 2014.The House Ways and Means Committee is planning to hold a hearing on the bill in Nov. followed by a markup.

At press time, 194 House Democratic Members are cosponsoring the 100-page House Democratic proposal with no Republican lawmakers crossing the aisle. Almost 40 advocacy groups are endorsing the House Democratic proposal.

At the Oct. 26 news conference unveiling Larson’s legislative proposal, the Connecticut congressman noted that Congress expanded Social Security during the past 50 years and it has been 38 years since lawmakers have taken any comprehensive action to strengthen the program.“ With 10,000 Baby Boomers a day becoming eligible, and with millennials needing Social Security more than any generation, the time for Congress to act is now,” he said.

Taking a Close look at H.R. 5723

According to the legislative fact sheet released at the news conference, H.R. 5723 gives a benefit bump for current and new Social Security beneficiaries. It provides an increase for all beneficiaries (receiving retirement, disability or dependent benefits) equivalent to an average of 2% of benefits to make up for inadequate Cost-of-Living Adjustments (COLA) since 1983.

Larson’s Social Security proposal also protects Social Security beneficiaries against inflation. It improves the annual COLA formula by adopting a Consumer Price Index for the Elderly (CPI-E), to better reflect the costs incurred by seniors who spend a greater portion of their income on health care and other necessities. Although the 2022 COLA 5.9%, the largest in years, the average for the past 10 years is roughly 1.5% and in 3 of the past 12 years, beneficiaries received no COLA at all.

It protects low-income works that provides a new minimum benefit stet at 25% above the poverty line and would be tied to wage levels to ensure that minimum benefits doe not fall behind. Currently, 5 million seniors live in poverty.

The Sacred Trust Act also contains other provisions that seniors and their advocates have sought for years, including:

Improving Social Security benefits for widows and widowers in two income households so they are not penalized for having two incomes.
Ending five-month waiting period to receive disability benefits so those with ALS or other severe disabilities no longer have to wait.
Providing caregiver credits for Social Security wages to ensure that caregivers are not penalized in retirement for taking timeout of the workforce to care for children and other dependents.
Extending Social Security benefits for students to age 26 and for part-time students.
Increasing access to Social Security dependents for children who live with grandparents or other relatives.
Requiring Social Security Administration (SSA) to mail annual statements to all workers detailing the FICA contributions they make and projects of their benefits in the future.
Preventing unwarranted closures of SSA offices to improve customer serve
Improving access to legal representation for people seeking long-term disability benefits.

H.R. 5723 would pay for strengthening the Social Security Trust Fund by having millionaires and billionaires pay the same rate as everyone else.Currently, payroll taxes are not collected on an individual wages over $142,800.The legislative proposal would apply payroll taxes to wages above $400,00.This provision would only impact the top 0.04% of wage earners.

Larson’s proposal would also extend the solvency of Social Security by making a significant contribution to the programs solvency, making up more than half of the shortfall in the Social Security Trust Funds.

Finally, H.R. 5723 would combine the Old-Age and Survivors Insurance with Disability Insurance into one Social Security Trust Fund, to ensure all benefits will be paid.

It’s Now Time to Fix Social Security

Larson’s Social Security proposal would “take historic steps to expand Social Security — delivering for retirees, people with disabilities, and their families the first real boost in benefits in 50 years. The Sacred Trust Act also would bring new revenue into Social Security amid projections that the trust fund will run dry in 2034 if Congress doesn’t take action,” says Max Richtman, President and CEO of the Washington, DC-based National Committee to Preserve Social Security and Medicare.

“To those who claim that no one in Washington has the courage to address Social Security’s challenges, or that the only solution is to cut benefits for future generations, Congressman Larson’s bill is a stunning refutation,” states Richtman, noting that he understands that beneficiaries need an increase in monthly checks to meet skyrocketing living expenses. “He knows that the fairest way to strengthen Social Security’s finances is for the wealthy to begin paying their fair share of payroll contributions. For years, seniors and their advocates have demanded these improvements,” adds Richtman.

“There is good news for everyone in this bill, which is only fitting, since Social Security touches almost every American’s life. Beneficiaries have waited long enough for these vital improvements. Congressman Larson now has nearly 200 cosponsorsin the House. After seven long years, seniors and their advocates can finally see the finish line, says Richtman.

With the Democrats controlling the White House, seniors have a good chance of seeing the expansion and strengthening of Social Security. The proposal has many of President Biden’s promises made during his campaign. But, like Larson’s previous Social Security Bill, the latest version has no Republican cosigners.

Over the years, poll after poll has shown that the American public strongly supports Social Security, across party and demographic lines. Larson’s legislative proposal has the support in the House, but will it pass in the upper chamber with Senate Democrats holding a slim majority? Will voter support influence Republican lawmakers to work across the aisle with Democrats to hammer out an acceptable bipartisan proposal, as the 2022 mid-term elections get closer? We’ll just have to wait and see.

Time to Change how Social Security Calculates ‘COLA’

Published in Woonsocket Call on October 23, 2016

On Tuesday, September 18, the U.S. Social Security Administration announced that the nation’s 65 million Social Security beneficiaries will be automatically be paid a minuscule 0.3 percent cost-of-living adjustment (COLA) to their monthly checks in 2017. The average monthly Social Security benefit next year will be $1,360, $5 more than now.

According to AARP, 153,349 Rhode Islanders received Social Security checks as of the end of 2014. Also, 22 percent of Rhode Island retirees depend on their Social Security check for 90 percent or more of their income. That’s chump change, not a lot of money for Rhode Island retirees to buy groceries, gas, or even catch up on their bills.

The federal agency detailed other changes that we can expect, too. Beginning in 2017, the amount of your earnings subject to the Social Security tax increases from $118,500 to $127,200. It’s estimated that this tax change impacts about 12 million of the 173 million people who pay into the retirement system.

Next year’s Social Security COLA increase is the smallest in a decade and comes after no increase in 2016 (zero increases also occurred in 2010 and 2011). Seventy percent of Medicare beneficiaries are protected by a hold-harmless rule, which keeps Social Security benefit payments from decreasing because of increased Medicare Part B premiums. However, 30 percent of Medicare beneficiaries (including high wage earners, those enrolled in Medicare and not yet receiving Social Security, and newly enrolled in Medicare) could see cost increases in their Medicare Part B premiums that cover their visits to doctors and hospitals. The increased premium costs will be deducted directly from their Social Security check.

Chump Change COLA Won’t Pay Bills

Responding to the federal government’s disappointing COLA announcement, AARP CEO Jo Ann Jenkins, whose Washington, DC aging group represents 37 million members, charges in a statement that one major domestic issue ignored by presidential debate moderators and one that demands attention from candidates is the future of Social Security.

“Over the last five years, Social Security COLA’s have remained small or nonexistent at 1,7 percent or lower, even though every cent can matter to beneficiaries and their families. After last year’s zero COLA, this year’s announcement doesn’t offer much help to the millions of families who depend on their Social Security benefits. As prescription prices skyrocket and Medicare premiums and other health costs increase, many older Americans have understandable concerns. Along with many groups, AARP has also asked Congress to ensure that Medicare premiums and deductibles don’t skyrocket next year,” says Jenkins.

Adds Max Richtman, President/CEO of the National Committee to Preserve Social Security and Medicare (NCPSSM), “No one can say with a straight face that providing the average senior with an additional four dollars a month will come even close to covering the true cost of living that retirees face. The average senior spends more than $5,000 a year on healthcare costs alone. A $4 Social Security COLA doesn’t even make a dent in covering rising costs for seniors.”

Richtman asserts that next year’s tiny COLA increase only continues the trend of historically low cost-of-living adjustments for retirees. “Over the past eight years, the current COLA formula has led to average increases of just over 1%, with three of those years seeing no increase at all. For the average senior, the 2017 COLA will mean an extra $4.00 per month which would barely cover the average cost of one Lipitor pill, a prescription drug frequently prescribed to seniors,” he says.

Richtman notes, “I’ve asked seniors at town hall meetings around the country how many of them think the COLA represents their true cost of living — laughter is always the response. We should move to a COLA formula that takes a more accurate measure of seniors’ expenses, which is a CPI for the elderly. The CPI-E has been in the experimental phase since 1982. It’s time to finish the job by fully funding the development of a more accurate COLA formula.”

Congress Must Legislatively Fix COLA Formula

In media releases, Rhode Island lawmakers call for tweaking how Social Security calculates Social Security COLAs.

Democratic U.S. Senator Sheldon Whitehouse, who sits on the U.S. Senate Special Committee on Aging, calls next year’s Social Security COLA increase an “insult.” He says, “For the fifth year in a row, Washington’s outdated formula has resulted in zero or next to zero cost of living adjustment for Social Security benefits. For the fifth year in a row, Rhode Island seniors will have to stretch their budgets to cover the rising cost of the basics, like food, housing, bills, and prescriptions. They didn’t bargain for this when they paid into Social Security over a lifetime of hard work. Congress needs to change the way we calculate Social Security COLAs.”

Adds, Rep. David Cicilline (D-RI), “This is completely unacceptable. The method for calculating cost of living adjustments is completely broken and fails to reflect the costs of gods and services seniors buy in Rhode Island and across the country.”
The Rhode Island Congressman calls for the Republican House Leadership to seriously consider pending legislation that will ensure that cost of living adjustments reflect the goods and services Rhode Island seniors actually buy. “Speaker Ryan should immediately bring the Protecting and Preserving Social Security Act to the floor so we can replace this outdated method for calculating cost of living adjustments with a model that actually meets the needs of Rhode Island seniors,” said Cicilline.

During the last Congress, the Senate and House controlled GOP have consistently kept legislative proposals from being considered that were crafted to bring needed reforms to the nation’s Social Security and Medicare programs. A newly elected Democratic President and a Congress controlled by Democrats might just be the political fix necessary to finally do the job that is ensuring the financial long-term solvency of these two domestic entitlement programs

Herb Weiss

Aging Issues

Tag Archives for cost-of-living adjustments