Congresswoman Gwen Moore Introduces Legislation to Strengthen Social Security
Today, Congresswoman Moore, a member of the Ways and Means Social Security subcommittee, introduced her legislation, the Social Security Enhancement and Protection Act. This bold legislation would improve this vital program and build on its promise to ensure that hardworking Americans can retire and age in dignity. To kick off its re-introduction, she hosted a press conference and was joined by Nancy Altman, President of Social Security Works and Judith Brown, an individual with a disability who depends on Social Security.
My legislation would enhance Social Security, ensuring it better benefits those who often lack economic security as they age: our oldest seniors who often outlive their nest eggs, parents who leave the workforce to care full-time for their children, and low-wage workers who often heavily rely on Social Security to retire. Women and people of color especially stand to benefit from these interventions.
My proposal would also improve the trust funds fiscal solvency for future generations and restore the student benefit for deceased, retired or disabled workers, providing crucial support to low-income students. We can and must strengthen Social Security to better meet the needs of everyday Americans, and Congress can do that through the Social Security Enhancement and Protection Act,” said Congresswoman Moore.
“Social Security Works strongly endorses the Social Security Enhancement and Protection Act. This legislation will increase the economic security of America’s working families. It is an all-generation plan. We applaud Congresswoman Moore for fighting to protect and expand Social Security’s earned benefits. Not only is she the author of this important bill, she is an invaluable champion of our Social Security every single day,” said Nancy Altman, President of Social Security Works.
Endorsing organizations: Social Security Works, Alliance for Retired Americans, Senior Citizens League, Economic Policy Institute, National Committee to Preserve Social Security & Medicare, Strengthen Social Security Coalition, Paralyzed Veterans of America, Generations United, Disability Belongs™
Watch the full press conference here.
Congresswoman Moore’s bill would improve Social Security coverage/benefits for women, people of color, and low-wage workers in three key ways:
1) Updating the Special Minimum Benefit to 100% of poverty and providing child care credits for low-wage workers. People who have had low-wage jobs for their whole lives are more financially at risk when they reach retirement. To make up for this problem, in 1974 Congress set a “Special Minimum Benefit” designed to increase the adequacy of benefits by setting a floor below which the full monthly benefit may not fall for beneficiaries with long-term work experience. But today, only a tiny population of beneficiaries receives it because it has not kept up with wage growth. Only about one-fifth of one-percent of Social Security beneficiaries receive benefits based on the special minimum.
• Congresswoman Moore’s bill would increase the Special Minimum Benefit to pay 100% of the poverty threshold, for those who have worked at least 30 years under Social Security, and claimed their benefits when they reached full retirement age.
• This benefit will be phased down proportionally to allow access for workers with fewer than 30 but more than 10 years of work.
• This legislation would also allow child care credits, so that the years in which a parent has a young child could count as a year of coverage for Social Security benefits. A parent could receive a child care credit year for each year when a child under age 6 is present in the home, up to a maximum of 5 years (which would count toward the 30 years required to be eligible for the full Special Minimum Benefit).
2) Increasing benefits 20 years after becoming eligible for retirement. People who live beyond the age of 85 are more likely to be financially vulnerable, even with Social Security. They may have exhausted their savings by this point, or have more serious health problems that have been a drain on their finances, or have faced any number of financial strains.
• Congresswoman Moore’s bill would provide additional security by increasing benefits for all beneficiaries 20 years after retirement by a uniform amount equal to 5% of the average retired worker benefit in the prior year.
• This benefit would be phased in 1% each year, after beneficiaries hit 16 years of eligibility, until beneficiaries hit the full 5% increase 20 years after they begin receiving benefits.
3) Reinstating the student benefit. Social Security benefits are paid to children whose working parent has died, become disabled, or retired. Currently, these benefits are paid until age 18—but from 1965 to 1981, students were eligible to receive those benefits until age 22 if they were enrolled in college or vocational schools. Research demonstrated that this benefit was particularly helpful and high-impact for students of color and for low-income families with parents working higher-risk, blue-collar jobs. This benefit has also been disproportionately helpful to women, as they are often the one left to raise the children and help put them through college if the father is deceased or disabled. Congresswoman Moore’s bill would restore the student benefit for children of deceased and disabled workers up to age 26 as long as they are enrolled in college or vocational schools.
Congresswoman Moore’s legislation would pay for the three reforms described above using the following revenue raisers:
1) Eliminate the cap on Social Security payroll contributions (“scrap the cap”). Social Security payroll contributions are capped at $176,100 in 2025 for higher-wage earners. Congresswoman Moore’s bill would phase out this cap, allowing us to generate substantial additional revenue for the Social Security system towards eliminating the Social Security shortfall, while at the same time enhancing benefits for these key populations.
2) Gradually raise the Social Security contribution rate for employers and employees each by 1/20 of 1 percent a year (over 6 years from 6.2 to 6.5 percent). For an average earner, this increase would be about 50 cents a week
NOTE: This press release was submitted to Urban Milwaukee and was not written by an Urban Milwaukee writer. While it is believed to be reliable, Urban Milwaukee does not guarantee its accuracy or completeness.
Mentioned in This Press Release
Recent Press Releases by U.S. Rep. Gwen Moore
