Millions of Americans could soon see bigger Social Security checks and stronger financial protections thanks to a new bill making its way through Congress. The Social Security 2100 Act is designed to improve benefits, protect retirees from inflation, and ensure the program stays funded for future generations.
If passed, this legislation would make some of the most significant changes to Social Security in decades. Here’s what’s in the bill and how it could impact you.
Bigger Monthly Checks for All
One of the biggest highlights of the Social Security 2100 Act is a 2% increase in benefits across the board. This means every Social Security recipient, from retirees to people with disabilities, would receive a larger monthly check.
For many, this boost could make a real difference, especially with the rising cost of living. The goal is to provide immediate financial relief while making sure benefits keep up with inflation.
Better Cost-of-Living Adjustments (COLA)
Currently, Social Security benefits are adjusted each year based on general inflation, but many experts say this doesn’t accurately reflect the expenses seniors face, especially rising healthcare costs.
The new bill would change how COLA is calculated by using the Consumer Price Index for the Elderly (CPI-E) instead of the current method. This would ensure that Social Security benefits increase in a way that better reflects the actual spending habits of retirees.
Stronger Support for Low-Income Retirees
Another major provision in the bill would set the minimum Social Security benefit at 125% of the federal poverty level. This means no one who worked their entire life would have to retire in poverty.
For long-term, low-wage workers, this change could provide much-needed financial security.
Public Workers Could See More Money
Many public employees, such as teachers, firefighters, and police officers, have seen their Social Security benefits reduced because of two provisions known as the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO).
The Social Security 2100 Act aims to eliminate these reductions, allowing public workers to receive their full benefits. This would be a major win for many retirees who have been unfairly penalized for years.
How Will This Be Paid For?
With all these benefit increases, you might be wondering how the government plans to pay for it. The bill proposes raising taxes on high earners by requiring those making over $400,000 a year to pay Social Security taxes.
Currently, income above $168,600 (as of 2024) is not taxed for Social Security. The new bill would close this loophole, helping to keep the program financially stable.
What’s Next?
While the Social Security 2100 Act has strong support from advocacy groups and some lawmakers, it still faces hurdles in Congress. The outcome will depend on whether lawmakers from both parties can come to an agreement.
For now, Social Security recipients and future retirees should stay informed and reach out to their representatives to voice their opinions. If passed, this bill could make a huge difference in the lives of millions of Americans.
