A ticking clock on Social Security solvency has prompted a bipartisan coalition of senators to introduce legislation aimed at preventing automatic, across-the-board benefit cuts for more than 70 million Americans.
Called the Protecting Retirement Opportunities and Maintaining Income Security for Everyone (PROMISE) Act, the bill establishes a procedural process designed to require congressional votes on a long-term Social Security solvency plan before the retirement trust fund’s projected depletion in 2032 triggers an automatic 22% reduction in monthly benefits. The legislation calls for an independent bipartisan advisory committee to develop recommendations intended to restore the program’s solvency for at least 50 years.
“Here is our chance to agree on a bipartisan process to rescue Social Security this year,” Senate Democratic Whip Dick Durbin, D-Ill, said in a press release. “Our bipartisan proposal opens Congress to debate this issue in a transparent, fair, and bipartisan way. We were elected to solve problems — and there’s no greater problem than the solvency and future of Social Security.”
“Millions of Americans rely on Social Security to live. In 6 years, those families will see a 22% cut to their benefits if Congress doesn’t act. Our plan starts the process of preserving promised benefits for current retirees and the next generation of Americans,” Sen. Bill Cassidy, R-La., said alongside Republican Sens. Thom Tillis, R-N.C.; John Cornyn R-Texas; and Alan Armstrong, R-Okla.
WHY RAMSEY FINANCIAL EXPERT SAYS THERE’S ‘NO MAGIC AGE’ TO CLAIM SOCIAL SECURITY
While multiple legislative proposals to secure Social Security’s trust funds have been introduced over the years, virtually none have advanced to a floor vote.
The PROMISE Act establishes a strict procedural timeline, requiring the Social Security Advisory Board (SSAB) to submit a proposal designed to restore Social Security solvency for at least 50 years. The bill also requires the House and Senate majority leaders to introduce the proposal, and if they fail to do so, any member of Congress may introduce it.
The proposal would then be referred to the House Ways and Means Committee and the Senate Finance Committee. If the committees do not report it, the legislation would automatically be discharged to the House and Senate calendars for floor consideration.
Final passage would require a simple majority vote in the House and a three-fifths majority in the Senate.
“Social Security is on an unsustainable path that will lead to dramatic benefit cuts for retirees and growing skepticism among workers paying into a program on the brink of insolvency. With each passing year, the menu of options that preserve benefits and limit tax hikes narrows. The modest reforms Congress contemplated in 2010 would have put Social Security on solid footing for 75 years; today, those same reforms would add less than two years to our current runway,” Sen. Tillis said. “I won’t pretend there’s consensus on how we solve this, but the math is unforgiving: the longer Congress waits to act, the fewer good options remain.”
“For nearly a century, Social Security has been a lifeline that allows Americans to retire with dignity. Congress should not wait around until the last minute to shore up this critical program and prevent broad-based benefit cuts upon Trust Fund depletion,” Sen. Tim Kaine, D-Va., said in support of the bill.
“That’s why I’m joining a bipartisan group of my colleagues in introducing legislation that will encourage Congress to roll up its sleeves and find a path forward to ensure current and future generations of retirees and their families are able to receive the benefits they have earned and which they are owed,” he continued.
The nonpartisan Committee for a Responsible Federal Budget voiced support for the bill: “The PROMISE Act would establish a thoughtful bipartisan process to help Congress do its job and rescue Social Security before it’s too late… These proposals keep Congress and the public involved in this important process. Hopefully they can give our leaders the kick in the pants they need to start working together to secure Social Security for current and future generations,” Committee for a Responsible Federal Budget President Maya MacGuineas wrote.
Based on the current average monthly payout of $2,071, beneficiaries — including seniors and individuals with disabilities — would lose roughly $450 per month if a funding plan is not put in place. Experts estimate this reduction would force over 3 million American citizens into poverty.
READ MORE FROM FOX BUSINESS
Read the full article here
