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Insider's Report: Congress must act to fix this Social Security glitch
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Time is running out for Congress to fix the notch in Social Security benefits for people born in 1960.
As you may know, Social Security benefits are based on a worker’s 35 highest years of earnings. 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. However, those who turned 60 in 2020 could see benefits reduced due to the economic downturn and a drop in the index. Normally, average wages rise from year to year. But in 2020, because of the COVID pandemic, wages decreased by as much as 10 percent.
The average beneficiary would take a $1,400 annual hit in their future Social Security benefits — and not just once, but for life.
In order to avoid unintentionally punishing people who turn 62 in 2022, Congress must take action before those workers begin claiming Social Security. (Sixty-two is the youngest age a worker can collect 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.
That’s why the National Committee is working with members of Congress and the Biden Administration to introduce and pass legislation that would spare workers turning 62 next year from a painful and permanent benefit cut.
Of course, the “notch” issue is only one of the challenges facing the program. Social Security will need a revenue boost in order to remain financially healthy for the remainder of this century. And retirees will need a benefit boost and a more accurate Cost-of-Living Adjustment (COLA) formula — simply to keep up with the increasing cost of essentials, from groceries to housing to health care. These are top priorities of the National Committee and our members and supporters — and we are working with our allies in Congress to get these important proposals across the finish line in Washington.
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| Good Bills |
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The National Committee endorses the “Social Security Fairness Act” (H.R. 82), introduced by U.S. Representative Rodney Davis (IL-13), which will repeal both the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) provisions of the Social Security Act. Since their enactment over 30 years ago, these provisions have unfairly prevented millions of Americans, including teachers, firefighters and police officers, from receiving the Social Security benefits that they have earned.
Instead of receiving the benefits they’ve paid for through their work and earnings, the WEP slashes the amount received by public servants, leaving them with payments that are a fraction of what they otherwise would have received. Making matters worse, those who are subjected to the GPO experience even more massive cuts in their benefits; in most cases reducing otherwise payable spousal or survivor benefits to zero.
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| Ask Web |
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Our resident Social Security expert, Webster Phillips — a Senior Policy Analyst for the National Committee and a 31-year veteran at the Social Security Administration — is here to answer your questions about Social Security.
You can either search our archives for valuable advice on a broad range of concerns or submit your question here.
This week's question is: I called a local Social Security office yesterday to discuss filing benefits for my wife and me. We have both reached full retirement age. The agent asked me when I wanted to start benefits. I didn’t know we had a choice. What answer should I give when we go to file?
Click here to read the answer.
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| Poll Results! |
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In the last issue Benefits Watch we asked our readers the following question:
Should Congress raise the minimum wage from the current $7.25 per hour, which has not been increased since 2007, to $15 per hour by 2025?
The results from our recent poll are fascinating, but they’re only available to National Committee members! Join the National Committee today and we’ll immediately give you the results of this important poll. |
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Legislation
Learn more about the bills we support and oppose in the current session of Congress. |
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Join Now
Your support sustains our campaigns in Washington to protect and strengthen Social Security and Medicare. |
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Coronavirus
Find valuable information, essential tips and warnings about COVID-19-related scams. |
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| March 22nd is an Important Anniversary for American Seniors |
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Today is the 49th anniversary of senior nutrition programs being added to the Older Americans Act (OAA), an important milestone in federal efforts to address food insecurity among the elderly. The original Older Americans Act was signed into law by President Lyndon B. Johnson as part of his vision for a Great Society. (March 22, 2021, www.ncpssm.org, Entitled to Know blog)
Read More →
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| Danger to Social Security on a Fast Track |
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"I don't think anyone should trust the TRUST act if they care about protecting Social Security and Medicare. Senator Mitt Ronney's plan would set up special committees to determine future of all trust funds and could fast track cuts to seniors' earned benefits," says National Committee President and CEO Max Richtman. (March 18, 2021, WSVA, Radio Interview with NCPSSM President & CEO Max Richtman)
Listen Here →
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| Senate Confirms Seniors’ Champion to Lead HHS |
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Seniors can rightly celebrate Thursday’s Senate confirmation of California attorney general Xavier Becerra to lead the U.S. Department of Health and Human Services (HHS). Few cabinet positions have as much impact on older Americans’ health and well-being as the Secretary of HHS, which oversees the administration of Medicare, Medicaid, and Older Americans Act programs. (March 18, 2021, www.ncpssm.org, Entitled to Know blog)
Read More →
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| Another stimulus check — while welcome — won’t go far for cash-strapped seniors |
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This has been a good week for millions of older Americans. Not only did President Biden say the government will purchase another 100 million doses of the COVID-19 vaccine (there were already enough doses in the pipeline to vaccinate every citizen over age 16, and this looks to be icing on the cake), but he also got his giant $1.9 trillion pandemic stimulus package passed. (March 11, 2021, MARKETWATCH, Paul Brandus)
Read More →
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| Wyden: Reduce and negotiate drug prices are next steps |
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U.S. Sen. Ron Wyden says among the next steps Congress must take on health care are to lower the soaring cost of some medications — specifically insulin — and restore the ability of the federal government to negotiate drug prices for Medicare. (March 16, 2021, Portland Tribune, Peter Wong)
Read More →
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