Larson Statement on Social Security Trustees Report, Why Congress Must Act Now
Hartford, CT – Today, House Ways and Means Social Security Subcommittee Chairman John B. Larson (CT-01) released the following statement on the 2021 Social Security Trustees Report. Chairman Larson will be introducing legislation, Social Security: A Sacred Trust, to enhance benefits and improve solvency sometime this fall.
“Social Security is expected to pay a Cost of Living Adjustment (COLA) at the end of this year that is significantly higher than in recent years, largely because of the pandemic. While it’s welcome, it is not a benefit increase. It reflects inflation and keeps purchasing power steady for Social Security beneficiaries. It will be absorbed by Medicare premiums and the increase in costs for food, housing and prescription drugs. That’s why we’re working with the President to pass Social Security 2100: A Sacred Trust,” said Larson. “The Trustees Report confirms that Social Security’s financing is strong in the near term yet underscores why it is so important that Congress take action now to prevent 22% in cuts across the board on all benefits in 2034. With the loss of traditional pensions, rising health care costs, and many people unable to save enough for retirement, there is a growing retirement crisis. 65 million Americans currently rely on Social Security benefits, yet millions are suffering and can’t make ends meet. Further, the Trustees Report shows that this year the cost of paying out benefits will exceed the income from the Federal Insurance Contribution Act (FICA) payments.”
“It has been 50 years since Congress has done anything to improve benefits. Social Security is a lifeline for many beneficiaries and a program Americans pay into their entire working lives. The COVID-19 pandemic has underscored just how important this program is to our country, never missing a payment even during economic downturns. We must work to expand benefits now and strengthen the program for today’s seniors and generations to come,” Larson continued.