Social Security Guarantee Act of 2023 H.R.521

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@SerafinoC973866 wrote:

  At face value this looks worth supporting but want an expert opinion. Thank You.

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Whyin the world does it look worth supporting to you?

Right now Social Security - Old Age, Survivors, Disability - are earned entitlements and by law are funded from payroll taxes, taxes on Social Security benefits and  interest earned from the special treasuries where any excess funds are kept until redeemed to pay benefits.  All of this income goes into the Trust Fund and benefits are then paid out of the Trust Fund.

Our problem is that currently there is not enough income coming in to pay benefits for the long term - according to the SS Trust Fund Actuaries, the Trust Fund could be depleted sometimes around 2035 unless some measures are taken to either increase the income coming in OR reduce the benefits going out OR some combination.

By depletion, they don’t mean down to zero - it means that the Trust Fund is unable to pay all the benefits out of the amount of income in the Trust Fund.  By law, when this happens, the Trust Fund is obligated to adjust benefits to what is coming in and thus it is forecasted that about 2035, if no action is taken, benefits would have to be cut about 20 +/- % to bring the Trust Fund out of depletion status.  THIS has never happened before - although pretty close in the 80’s when the Reagan - O’Neil SS compromise took place.and it was fixed until present time.

This legislation just gives Congress the right to give SS beneficiaries who are currently drawing benefits a certificate of guarantee to complete their benefit along with any COLA adjustment and make up for this forecasted shortfall.  

Here is a short synopsis of the legislation:  

Social Security Guarantee Act of 2023

This bill requires the Department of the Treasury to issue certificates to Social Security beneficiaries that guarantee them the full monthly benefit amount to which they are entitled and at least an annual cost-of-living increase to their benefits. It also provides additional mandatory funding for those benefits.

Currently, Social Security beneficiaries are entitled to their benefits, but benefits are primarily funded through a payroll tax (including assets derived from the tax held in reserve). Actuarial projections reported by the Social Security Board of Trustees indicate that in 2035 there will be insufficient tax revenue and reserved assets to cover the full amount of benefit payments.

Now where would that funding for these certificates of guarantee come from ?

The funding would come from the Congress in their appropriations but it would put the funding of these certificates of guarantee in a position close to the top of the list. 

Our Congress can’t currently even meet their current obligations of funding - why would you think that this would be any different?  They cannot agree on the measures to fix the current SS funding system - why would you think they would do it then?

This would place those guaranteed certificates right up there with interest paid on the national debt - I think - but at the same time, would be driving us further into debt.

Just another way to stall any actual fix to the system.  Congress likes to do this - 

IMO, this would just create another welfare type benefit - where the benefit is no longer earned but also subsidized.  We already have a welfare program for those who don’t have access to the Social Security Program - it is called Supplemental Security Income and it comes from the General Fund paying minimal-type benefits to those who are aged, blind, or disabled - who don’t get any Social Security or perhaps only a minimal amount - their max benefit is $ 943 a month less in-kind payments.  

Congress just needs to fix the current Social Security program - probably in a compromised style - with some income increases and some benefits decreasing.  [ nothing would happen to those who are currently getting benefits or even close to it]. Any change would be effective years out - although an increase in payroll taxes would probably start pretty fast.

TEXT - H.R. 521 118th Congress (2023 - 2024) Social Security Guarantee Act of 2023 

It was introduced in January 2023 and has gone nowhere and even now has only 4-cosponsors.  IMO, when a Congress person doesn’t work hard to build a falling of any piece of legislation, it is just busy work for them perhaps to show their constituents they might be doing something.  Anybody can write a bill - the real work comes in getting momentum behind it - some are worth the effort - others aren’t.  This one is in the later.