Congressman Reid Ribble (R-Wisconsin) has introduced the Save Our Social Security Act in order to make Social Security solvent for another 75 years. This year, Social Security will spend $15.7 billion more than it collects in taxes, the Congressman notes. At this rate, the fund will run dry by 2034, resulting in benefit cuts that year of 21% for each senior.
The legislation proposes to close the collection/spending gap through progressive revenue, progressive benefit changes, and increasing the retirement age. The Social Security Administration projects that the bill would increase revenues to the Administration by $168.5 billion in the first 10 years, $355.2 billion by 2034, and $10.6 trillion over the next 75 years.
Payroll currently subject to Social Security taxes is $118,500. The bill would gradually increase the payroll cap to $156,550 in 2017, and to $308,750 by 2021. It would change the formula used to calculate benefits of high earners from 15% to 5% over five years, or 2% a year from 2017 to 2021.
Starting in 2022, full retirement age would increase from 67 to 69. The bill would adjust the cost of living adjustments to a more specialized index that seeks to track retail prices as they affect urban hourly wage earners and clerical workers, and places a slightly higher weight on food, apparel, transportation and other goods and services, while placing a lightly lower weight on housing, medical care and recreation.
It would create a minimum benefit at 125% of poverty, increase benefit amounts after 20 years of eligibility, calculate a person’s benefit based on their highest earnings in 38 years, and prevent the Trust Fund from being used for anything but the current fiscal year.
More information about the bill is here.