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Category Legislative News Page 46
Key Bills Gain Support in the House and Senate .The information you do get can seem contradictory. The one piece of advice almost all retirement advisors do agree on is this — starting Social Security at 62 is a bad idea unless you are terminally ill with only a few more years to live. Your benefits will be permanently reduced up to 30% depending on your full retirement age, and if you are working, your benefits could be reduced due to earnings restriction rules. .Just years before they were set to retire, these individuals learned that they would receive significantly lower benefits than originally anticipated. The problem has grown and compounded over time, and TSCL believes that in order to make the program more equitable, some compensation for the injustice should be provided. We enthusiastically support Rep. Meng's Notch Fairness Act, and we were pleased to see one new cosponsor sign on this week. … Continued
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H R 624 Social Security Fraud Prevention Act
That does raise a fair question about conflict of interest: If something was not in the best interest of seniors but would raise millions of dollars for AARP through insurance sales, would AARP put principle ahead of profit? .The Social Security Administration maintains an "earnings suspense file" which tracks wages sent in by employers, for earnings that cannot be posted to individual workers' records because there is no match for the name and Social Security number. The Congressional Research Service reports that wages represented in the earnings suspense file currently amount to approximately 0 billion. According to Social Security Administration Inspector Patrick P. O'Carroll, "We believe the chief cause of wage items being posted to the earnings suspense file instead of an individual's earning record is unauthorized work by noncitizens." .The revenues that would be collected based on the 12.4% Social Security tax (the total paid by employee with the employer match) was ,071,619, and averaged 3,581 per CEO. … Continued
In 2007 an analysis released by TSCL estimated that if 6 million illegal workers were to gain work authorization it would cost Social Security alone more than .6 trillion in benefits through 204Under current law, if illegal immigrants get work authorization at some point they could file claim for Social Security benefits. Currently the Social Security Administration uses all reported earnings to determine entitlement to benefits, including earnings for jobs worked illegally if the worker has kept evidence, like W2s, of earnings. .Senate Subcommittee Considers Family Leave Proposal .Unfortunately, this has become standard operating procedure in Congress, regardless of who's in power. And even shutting down the government for a period of time is no longer seen to be the drastic action it once was. .In 1977, Social Security was close to bankruptcy. Legislation enacted in 1977 changed the way benefits were calculated, beginning with retirees who were born in 1917 and who first became eligible for benefits in 197The changes were major, and the transition between the old and new method of calculating benefits not only took place over a very short period of time, it did not work as anticipated. .Negotiations thus far seem to be moving slowly, and it remains to be seen whether or not the conferees will reach an agreement before the looming deadline. TSCL will keep a close eye on the evolving negotiations, and we will continue to inform the conferees about the harms that would result from including harsh benefit cuts in a budget package. For updates, visit the Legislative News section of our website. .Not thoroughly reviewing the contracts. Make sure you understand what your fees cover and understand built - in price "escalators." For example, cost-of-living adjustments have only increased Social Security benefits by an average of 1.1% over the past 8 years, but rental units may come with automatic price escalators of 5% per year. Facilities often have charges for room and board and separate fees for care. In addition to care fees, there may be medical supplies, medication delivery, laundry and other fees. It's a good idea to have an attorney review the contracts with you. .The first few months of this year were spent encouraging lawmakers to re-introduce critical legislation. So far, TSCL's most vital bills have been re-introduced, including the Consumer Price Index for Elderly Consumers (CPI-E) Act, the Notch Fairness Act, the Social Security Fairness Act, and the Medicare Physician Payment Innovation Act. More recently, TSCL's focus has shifted to building support for these and other bills, and already, many legislators have signed on to them as co-sponsors. .To remedy this problem, TSCL supports Social Security "caregiving credits." These credits would be applied to a worker's Social Security earnings record to make up for years when people took time out of their working careers, and earned little or zero income, because they were caring for children, spouses, or older family members. .Senate Committee Discusses Social Security Benefit Maximization
