John,

Yesterday, Nancy raised the alarm about a sneaky way that the pandemic could cut Social Security benefits—and offered a solution for what to do about it. We’ve already been in touch with dozens of Members of Congress, and should be able to make an exciting announcement tomorrow.

If you missed it yesterday, read Nancy’s email below about how COVID could lead to millions of people losing out on thousands of dollars in Social Security benefits, and chip in to FIGHT BACK!

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Thanks,

Alex Lawson
Social Security Works

--NANCY'S EMAIL--

John,

The unprecedented conditions of the pandemic-fueled economic crisis have given enemies of Social Security the opportunity to exploit a glitch to cut Social Security benefits. We’re calling all of our allies on Capitol Hill with a red alert—and we’re launching an emergency campaign to ensure that Social Security benefits cannot be cut during this crisis.

Chip in $7 to our emergency fund to stop the glitch in our Social Security system!

Social Security’s earned benefits are based on each worker’s individual earnings history appropriately adjusted to reflect the growth in aggregate economy-wide wages. This structure is ingenious and fair, has numerous advantages, and works extremely well in almost all economic times. But these are not normal times.

Thanks to the pandemic and the economic collapse, aggregate wage levels are highly likely to decline substantially this year. Because this drastic decline in aggregate wage levels is so unusual, our Social Security system does not take that possibility into account. Congress must fix that understandable oversight to avoid the COVID-19 notch.

While benefits are secure, the unprecedented conditions of the COVID-19 economic crisis have unearthed a technical glitch. If left uncorrected, more than four million workers who turn 60 this year will receive substantially lower Social Security benefits than workers (and their families) with identical earnings who turned 60 last year.

Fortunately, the solution is easy and straightforward. But Congress must act.

Social Security Works is ringing the alarm about this emergency. Chip in $7 to protect millions of seniors from massive benefit cuts!

Here’s how they fix it: Congress should enact a simple correction that mirrors other parts of our Social Security system. Social Security’s automatic annual cost of living adjustment, for example, can never result in a decrease in benefits, notwithstanding what is happening with inflation. Similarly, Congress should amend Social Security’s indexing of earnings so that it does not result in lower benefits no matter what is happening with aggregate wages nationwide.

That simple fix—ensuring that the decline in overall wages doesn’t produce lower benefits—solves the problem. Those turning 60 this year will not get less than those who turned 60 last year.

Congress should immediately enact this change in a carefully constructed way, so that no one’s benefits are cut. Americans should not have to worry about the loss of several thousand dollars a year of Social Security benefits for those unlucky enough to turn 60 (and their families) during this unprecedented economic crisis.

What Congress should not do is use the need for a technical fix to achieve long-held dreams of benefit cuts. Andrew Biggs of the conservative American Enterprise Institute, for example, has called for price-indexing as a response.¹ That is a radical change that conservatives have been seeking for almost half a century.

Rejected by both the Ford and Carter administrations, though embraced by George W. Bush in his effort to privatize Social Security, price-indexing would radically transform Social Security. The wonky-sounding change would gradually but inexorably erode Social Security benefits so that they would eventually provide everyone with only a very low, subsistence level benefit, unrelated to prior earnings.

Congress should also avoid following the Trump administration’s lead in using our current crisis as a cover to undermine Social Security in other ways. As just one example, Trump, in the name of economic relief, has repeatedly demanded that Congress enact an elimination of payroll contributions, which are Social Security’s dedicated funding.²

As a response to the economic crisis, this makes no sense. It’s slow, inefficient and fails to get money into the pockets of those who need it most. The only reason to support this policy over better targeted, more efficient measures is if your true goal is to undermine Social Security and its self-funded structure.

Social Security Works is dedicated to protecting seniors from benefit cuts and harmful policies! We’re rushing to rally support to this technical fix before Donald Trump can turn it into a partisan issue. Chip in $7 to our emergency campaign fund today!

Opponents of Social Security are latching onto the worldwide pandemic and resulting economic collapse to undermine confidence in Social Security or even slash its modest benefits.

But despite fearmongering to the contrary, Social Security will continue to pay benefits in full and on time. Social Security has a reserve of $2.9 trillion, which provides more than enough cushion to ensure that benefits will continue without interruption, no matter how long the pandemic lasts.

Unquestionably, today’s crisis would be much worse without Social Security. And all of us would be far better off if Social Security’s modest but vital benefits were more adequate. Congress should eliminate the COVID-19 notch as soon as possible. Those we elect should not cut Social Security, but expand it.

Thanks,

Nancy Altman
President
Social Security Works