Bipartisan Senators Working to Retool Social Security, Avert Funding Shortfall
As the Social Security trust fund is projected to be depleted by 2032, a group of bipartisan senators is working to retool the program in order to avert a funding shortfall. Currently, Americans can begin collecting Social Security benefits at age 62, but they receive less money every month than they would if they had waited until they reached the full retirement age, which is 67 for anyone born after 1960.
The senators are advocating for changing the terminology for how the claiming options are presented. The Social Security Administration (SSA) would change its benefits statement terminology from “early eligibility age,” “full retirement age,” and “delayed retirement credits” to “minimum benefit age,” “standard benefit age,” and “maximum benefit age” to better reflect Social Security’s claiming design and how the program works.
Enacted in 1983, the Windfall Elimination Provision (WEP) decreases the Social Security benefits of individuals who receive pensions from a government institution (federal, state, or local) for a job that is not subject to Social Security. The senators are also calling for the repeal of both the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO) in current Social Security law. Doing so would help to reduce the financial burden on law enforcement officers who have to retire earlier than most other public employees.
The senators have promised that there would be no cuts for Americans currently receiving Social Security benefits in their plan, and that many would even receive additional benefits. President Joe Biden has also made it clear that he is opposed to any cuts to Social Security or Medicare. As the senators continue to work on the framework of the plan, they hope to find a solution that will help to secure the future of Social Security and ensure that Americans can plan for their retirement with peace of mind.
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