Mobile Menu - OpenMobile Menu - Closed

Connect

Social Security 2100: A Sacred Trust

For more than 86 years, the Federal Government has kept the promise to all Americans: if they contribute to Social Security with each and every paycheck, they would be able to retire with dignity. President Biden has called this promise a “sacred trust.”

It is Congress’ responsibility to keep that promise and to safeguard Social Security for all Americans. Congress must also ensure the benefits keep up with Americans’ expenses – today, tomorrow, and forever.

That’s why, as Chairman of the House Ways and Means Social Security Subcommittee, Rep. Larson authored the Social Security 2100: A Sacred Trust.

Increases Benefits

  • Benefit bump for current and new Social Security beneficiaries – 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. The US faces a retirement crisis and a modest boost in benefits strengthens the one leg of the retirement system that is universal and the most reliable: Social Security.

  • Protection against inflation – Improves the annual Cost-of-Living Adjustment (COLA) formula to better reflect the costs incurred by seniors through adopting what’s called a “CPI-E formula.” This provision will help seniors who spend a greater portion of their income on health care and other necessities. Improved inflation protection will especially help older retirees, people of color, and widows who are more likely to rely on Social Security benefits as they age. 

  • Protects low-income workers – Five million seniors currently live in poverty. No one who paid into the system over a lifetime should retire into poverty. The new minimum benefit will be set at 25% above the poverty line and would be tied to wage levels to ensure that the minimum benefit does not fall behind.

  • Improves Social Security benefits for widows and widowers in two income households so they are not penalized for having two incomes.

  • Repeals the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO) that currently reduces Social Security benefits for many public servants, including teachers.

  • Ends the 5-month waiting period to receive disability benefits, so those with ALS or other severe disabilities no longer have to wait.

  • Provides caregiver credits toward Social Security wages to ensure caregivers are not penalized in retirement for taking time out of the workforce to care for children or other dependents.

  • Extends Social Security dependent benefits for students to age 26 and for part-time students.

  • Increases access to Social Security dependent benefits for children who live with grandparents or other relatives.

  • Requires SSA to mail annual statements to all workers – The bill requires SSA to mail annual statements showing the FICA contributions workers make and projections for their benefits in the future.  This will help workers prepare for retirement, disability or in the event of an untimely death. Currently, SSA makes this information available only on its website mySSA.com.

  • Prevents unwarranted closures of SSA field offices – The bill will improve customer service by making it more difficult to close field offices, which are used by many seniors to file claims and discuss questions about their benefits.

  • Improves access to legal representation for people seeking long term disability benefits.

 Strengthens the Trust Fund

  • Have millionaires and billionaires pay the same rate as everyone else – Presently, payroll taxes are not collected on an individual’s wages over $142,800. This legislation would apply the payroll tax to wages above $400,000 so the wealthy pay the same rate as someone earning $50,000 a year. This provision would only affect the top 0.4% of wage earners. 

  • Extends the solvency of Social Security – This bill makes a significant contribution toward the program’s solvency, making up more than half the shortfall in the Social Security Trust Funds.

  • Social Security Trust Fund Established – Social Security provides all-in-one retirement, survivor, and disability benefits funded through the dedicated FICA contribution paid by workers. There are technically two trust funds, Old-Age and Survivors (OASI) and Disability Insurance (DI), and that are usually referred to as the Social Security Trust Fund. This provision combines the OASI & DI trust funds into one Social Security Trust Fund, to ensure that all benefits will be paid.

 

More on Social Security 2100: A Sacred Trust

August 21, 2020 Press Release
In a letter to President Donald Trump, Congressman John Larson (D-CT) and Congressman Joe Kennedy III (D-MA) today demanded that the Administration reverse their recent actions attempting to dismantle Social Security.
August 20, 2020 Press Release
House Ways and Means Social Security Subcommittee Chairman John B. Larson (CT-01) applauded the U.S. Chamber of Commerce, National Retail Federation, the National Association of Manufacturers, and two dozen additional business organizations who wrote a letter opposing President Trump’s recent order to defer payroll taxes.
August 17, 2020 Press Release
Today, House Ways and Means Committee Chairman Richard E. Neal (D-MA), Worker and Family Support Subcommittee Chairman Danny K. Davis (D-IL), and Social Security Subcommittee Chairman John B. Larson (D-CT) called on the Social Security Administration (SSA) to continue relief for seniors and people with disabilities who have received extra benefits due to the COVID-19 pandemic, while Congress works towards a fair resolution of the situation.
August 14, 2020 Op-Ed and Letters
Rep. Larson's op-ed in The Hill
August 13, 2020 Press Release
Today, House Ways and Means Social Security Subcommittee Chairman John B. Larson (D-CT) and Senate Budget Committee Ranking Member Bernie Sanders (I-Vt.) responded to new findings from a Government Accountability Office (GAO) study they commissioned which found that thousands of American die or go bankrupt waiting to receive their disability benefits each year.
August 10, 2020 Press Release
House Ways and Means Social Security Subcommittee Chairman John B. Larson (CT-01) released the following statement after President Trump said he wanted to permanently cut payroll taxes.
August 7, 2020 Press Release
Today, House Ways and Means Social Security Subcommittee Chairman John B. Larson (CT-01) assailed President Trump’s announcement that he will be implementing a pay roll tax holiday via Executive Order that is retroactive to July 1st through the end of the year.
August 4, 2020 Op-Ed and Letters
The COVID-19 pandemic has led to an unprecedented health and economic crisis. More than 150,000 Americans have been killed by this disease. At its peak, 42 million Americans were unemployed. Now we’re facing a new crisis. Five million Americans could see a drastic cut in their Social Security benefits as a direct result of the COVID-19-induced economic downturn. Due to a quirk in the benefit formula, those born in 1960 are at risk of a permanent reduction in their benefits that could be as much as $2,000 per year.
August 3, 2020 Press Release
Today, Ways and Means Committee Chairman Richard E. Neal (D-MA) and Social Security Subcommittee Chairman John B. Larson (D-CT) released the following statement regarding the suggestion that President Trump circumvent Congress to temporarily defer the collection of payroll taxes:
July 31, 2020 Press Release
Today, House Ways and Means Social Security Subcommittee Chairman John B. Larson (CT-01) released the following statement after the House passed the FY 2021 Labor-HHS Appropriations package.

Pages