A House Democrat proposal to reform Social Security is being reintroduced to Congress. The new version of the bill, dubbed Social Security 2100: A Sacred Trust, is now aimed at drawing more support from President Biden and Republicans, CNBC reported.
This new bill combines Biden’s proposals with House Ways and Means initiatives to expand and enhance Social Security benefits, said Rep. John Larson, D-Conn., chairman of the House Ways and Means subcommittee on Social Security, who brought the bill forward.
The Social Security 2100 Act aims to tie annual cost-of-living adjustments to the Consumer Price Index for the Elderly, or CPI-E. CNBC noted that this may better reflect senior expenses.
The Social Security Administration also announced this week that 2022 Social Security and Supplemental Security Income benefits will be boosted 5.9% to help seniors with the rise in the cost of living, as previously reported by GOBankingRates. Prices are currently 5.4% higher compared to last year. The 2022 COLA represents the biggest jump in benefits in about 40 years.
The National Committee to Preserve Social Security and Medicare said that while the COLA increase for 2022 is “welcome news for seniors,” the ways the annual adjustments are calculated must also be adjusted, according to a separate CNBC report.
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However, some say that the CPI-E is an experimental index. “That index is not an exact match to the Social Security beneficiary population, and it hasn’t been fully studied,” Chantel Boyens, principal policy associate at the Urban Institute, said during a webinar, according to CNBC. Boyens claims that a one-time benefit boost would be more effective at reducing poverty.
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Last updated: October 26, 2021
This article originally appeared on GOBankingRates.com: Revamped Social Security Bill To Improve COLA for Seniors Seeks Widespread Support