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  [link removed] Insider's Report: Workers Turning 60 This Year Face Benefit Reduction 

 

Future Social Security beneficiaries turning 60 this year are in for a rude
surprise: their monthly benefits may be lower than those born in previous years.
Benefits for each age group are calculated based on the Average Wage Index (AWI)
for the year they turn 60. Normally, average wages rise from year to year. But
this year, because of the coronavirus pandemic, wages are likely to decrease by
as much as 20%. Benefits for wage-earners in 2020 would then be as much as 15%
lower than for workers hitting that milestone birthday in 2019. This incipient
reduction is sometimes referred to as a "notch" in benefits [link removed] for people born in 1960.  

The notch for workers turning 60 this year is due to a glitch in Social Security
law. Social Security benefits are based on the highest 30 years in a worker's
earning history. The Average Wage Index is applied to each year's earnings in
order to ensure that benefits are based on the dollar value of today's wages vs.
the year the wages were earned (which, for someone just turning 60, could date
as far back as the late 1970s). The AWI was introduced into the formula by the
Social Security Amendments of 1977. The drafters of that legislation clearly did
not anticipate that average wages would fall precipitously from one year to the
next.

Unfortunately, if no remedial action is taken, the benefit
reduction for workers turning 60 in 2020 will be permanent. Their benefits will
be lower than workers' born before 1960 for life.Of course, newly retiring workers' annual Cost-of-Living Adjustments (COLAs)
would also be permanently reduced, causing further financial hardship. With 40%
of seniors relying on Social Security for all or most of their income — and many
just skirting the edges of poverty on already modest benefits — a steep falloff
in the AWI could cause retirees real financial distress.  

In order to avoid unintentionally punishing people who turn 60 this year, Congress must take actionbefore those workers begin claiming Social Security. (Sixty-two is the youngest
age a worker can collect retirement benefits; 67 is the Full Retirement Age for
this age group.) Any change in Social Security law requires a 60-vote majority
in the Senate.   [link removed] Please consider becoming a member now [link removed] to help us keep the pressure on Congress. Your continued support is essential to
the National Committee's mission of protecting your earned benefits. Good Bills 

 

The National Committee enthusiastically supports U.S. Representative Jan
Schakowsky's (IL-09) bill, the "Quality Care for Nursing Home Residents and Workers During COVID-19 Act of 2020" (H.R. 6698). [link removed]  

Among other things, H.R. 6698 would require nursing home facilities to:   have a full-time infection interventionist on staff;
regularly test residents and staff;
provide enough personal protective equipment (PPE) for all employees and report PPE shortages at least 24 hours before a shortage is expected to occur;
offer at least two weeks of paid sick leave to each employee; and
facilitate virtual visits for residents who cannot receive visitors during lockdown.  

This bill also authorizes $100 million to states for strike teams who can assist
with resident or worker safety within 72 hours of a coronavirus case being
reported.  

The plight of seniors [link removed] does not always receive the news coverage or legislative priority it deserves.
Yet, older people are suffering disproportionately — not only because they are
more vulnerable to the virus — but because of the federal government's flagrant
failure to quickly provide the testing and data necessary to slow the infection
rate in nursing homes. That's why U.S. Representative Schakowsky's bill is so
important! It offers a health and social lifeline to millions of seniors
confined in nursing homes, isolated from friends and family, falling ill and in
some cases dying — or living in constant fear of both.   Take Our Poll! 

 

Last week the Trump Administration urged the Supreme Court to strike down the
Affordable Care Act (ACA), in yet another step to demolish the health care law
passed under the Obama Administration on which millions of Americans depend,
arguing that the ACA is invalid because the last Congress repealed the
individual mandate. This comes at a time when many Americans have lost their
jobs and employer-provided health care benefits as a result of the coronavirus
pandemic, and they may now have to sign up for the ACA to gain coverage.  

And so, we want to know your response to the following question:  

At a time when millions of Americans are losing their jobs and their health care
coverage because of the ongoing coronavius pandemic, should the Trump
Administration drop its attack on the Affordable Care Act (ACA) — or continue
full steam ahead?  

Take our poll now! [link removed]   Ask Us

 

Did you know that a team of experts in the field of Social Security policy is
available to answer your questions about benefits? For 37 years, the National
Committee has been helping thousands of our members and supporters with a broad
range of concerns on Social Security.

 

Whether you're currently retired or approaching retirement, the National
Committee's "Ask Us"section can help answer your questions about Social Security. You can either
search our archives for valuable advice on a broad range of concerns at www.ncpssm.org/ask-us-recent/ [link removed] or email your question to [email protected] mailto:[email protected]?subject=.

 

This week's question is: Our Social Security checks are deposited the 3rd of the month. Are they for the month of deposit, or the previous month?

 

Click here to read the answer. [link removed]   Recent Headlines

 

Q&A on the Basics of Social Security During the Pandemic [link removed]  (June 18, 2020, WMKV, interview with NCPSSM Senior Policy Analyst Webster Phillips)  

Surprising Support in Congress for a Very Bad Bill [link removed]  (June 19, 2020, KTNF, audio clip with NCPSSM President & CEO Max Richtman)  

Donald Trump's Big Problem with Senior Voters [link removed]  (June 27, 2020, The New Yorker, John Cassidy)  

Trump administration asks Supreme Court to overturn Obamacare [link removed]  (June 25, 2020, Politico, Susannah Luthi)  

A Pandemic Problem for Older Workers: Will They Have to Retire Sooner? [link removed]  (June 26, 2020, The New York Times, Mark Miller)        
[link removed] [link removed] [link removed] [link removed] Member contributions to the National Committee, a nonprofit 501(c)(4)
organization, are not tax-deductible.

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