Key facts
- The Social Security 2100 Act, H.R. 9519, aims to increase benefits and ensure long-term program solvency.
- The bill proposes changing the COLA calculation to use the CPI-E for elderly consumers.
- A new minimum benefit would be established for long-term low earners with at least 30 qualifying years.
- A 12.4% tax on net investment income for high earners exceeding $400,000 is included.
- The legislation seeks to address projected trust fund depletion by the fourth quarter of 2032.
The Social Security 2100 Act, reintroduced by Representative John Larson, proposes significant reforms to bolster the program's long-term solvency and enhance beneficiary benefits. The legislation addresses a projected shortfall where the trust fund is expected to cover only 78% of scheduled benefits by late 2032 without congressional action.
Key provisions include a modest increase to the basic benefit formula, raising the initial calculation percentage from 90% to 93% for beneficiaries between 2027 and 2036. A new minimum benefit is established for individuals with at least 30 qualifying years, set at 125% of the poverty guideline, which would amount to approximately $1,663 per month for a single person based on 2026 figures. The bill also aims to improve benefits for surviving spouses.
A significant change involves the annual cost-of-living adjustment (COLA), which would shift from the current Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to a system that uses whichever index—CPI-W or the Consumer Price Index for Elderly Consumers (CPI-E)—yields a higher increase. This adjustment would be in effect from 2027 through 2036.
Further reforms include allowing deemed earnings for unpaid caregivers who provide at least 960 hours of care annually, helping to fill gaps in their work histories. The legislation also proposes temporarily eliminating the five-month waiting period for Social Security Disability Insurance benefits.
To fund these changes and shore up finances, the bill introduces tax provisions targeting high earners. It would impose a 12.4% tax on net investment income for individuals whose modified adjusted gross income exceeds $400,000, applying to the lesser of their investment income or the amount over the threshold. Supporters argue this ensures the wealthy contribute more, while critics question its impact on payroll contribution links.
Shannon Benton, executive director of The Senior Citizens League, stated that while the bill is unlikely to pass in the current Congress, it represents a "gold standard" for reform and addresses key concerns of older Americans, including rising poverty and homelessness among seniors. Many of the proposed benefit increases are temporary, set to expire after 2036, necessitating future legislative action.