Protecting and Preserving Social Security Act
Summary
The "Protecting and Preserving Social Security Act" aims to amend Title II of the Social Security Act and the Internal Revenue Code to improve the old-age, survivors, and disability insurance program. A key component involves creating a "Consumer Price Index for Elderly Consumers" (CPI-E) to better reflect the spending habits of those 62 and older for cost-of-living adjustments. The bill also adjusts how wages and self-employment income above the contribution and benefit base are determined after 2025, and includes surplus earnings in the Social Security benefit formula.
Title I focuses on cost-of-living increases by mandating the Bureau of Labor Statistics to publish a CPI-E. This index would specifically track expenditure changes for individuals 62 years or older. Title II addresses contribution and benefit fairness by modifying the determination of wages and self-employment income above the contribution base and incorporating surplus earnings into benefit calculations.
These changes are intended to provide more accurate cost-of-living adjustments for seniors and to address perceived inequities in the Social Security system.
Expected Effects
The bill's passage would lead to several changes in how Social Security benefits are calculated and adjusted. The creation of a CPI-E could result in higher cost-of-living adjustments for seniors, as it would be tailored to their specific spending patterns.
Adjustments to wage and self-employment income calculations could affect contributions and benefits for higher earners. The inclusion of surplus earnings in the benefit formula would also alter how primary insurance amounts are determined, potentially increasing benefits for some individuals.
Overall, the act seeks to modernize and improve the Social Security system by addressing cost-of-living adjustments and contribution fairness.
Potential Benefits
Here are some potential benefits of the bill:
* More Accurate COLA: The CPI-E could provide a more accurate reflection of the cost of living for seniors, leading to more appropriate benefit adjustments.
* Fairer Contributions: Adjustments to wage and self-employment income calculations could address perceived inequities in the contribution system.
* Increased Benefits: The inclusion of surplus earnings in the benefit formula could increase benefits for some retirees.
* Targeted Support: Provisions ensuring no impact on SSI and Medicaid eligibility protect vulnerable populations.
* Modernization: The bill updates aspects of the Social Security system to reflect current economic realities.
Most Benefited Areas:
Potential Disadvantages
Here are some potential disadvantages of the bill:
* Complexity: The changes to wage and income calculations could add complexity to the Social Security system.
* Uncertainty: The impact of the CPI-E on actual benefit amounts is uncertain and depends on its calculation methodology.
* Potential for Reduced Benefits: While some may see increased benefits, others might see smaller increases than under the current system.
* Implementation Costs: Creating and maintaining the CPI-E will require additional government funding.
* Delayed Implementation: Some provisions have delayed effective dates, potentially postponing needed relief.
Constitutional Alignment
The "Protecting and Preserving Social Security Act" primarily aligns with the "general Welfare" clause of the Constitution's preamble. This clause allows Congress to enact laws that promote the well-being of the nation's citizens, including providing for their economic security in old age.
The bill's provisions related to taxation and revenue may also be considered under Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States. The act does not appear to infringe upon any specific individual rights or liberties protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).