Daniel Nickerson

Office of the Chief AcSocial Security Admin

Proposals to Expand Benef

National Academy of Social Insurance

2018 Summer Intern Academy

August 1, 2018
Expanding Benefits

1. Expand the population covered by Social S

- Example: Cover all State and Local Government E

2. Increase benefits for those already covered 

Security

- Focus of this presentation
Increasing Benefits (Example

 Increase the Special Minimum Benefit Reinstate student benefits Increase all benefits by 5% Increase benefits for beneficiaries 85+ Childcare Credits
Special Minimum Benefit

The special minimum benefit is a special minimprimary insurance amount (PIA) enacted in 197provide adequate benefits to long-term low earfirst full special minimum PIA in 1973 was $170 month. Beginning in 1979, its value has increaprice growth and is about $850 per month in 20
Special Minimum Benefit Effective December 201

Number of years of 

coverage Primary Insurance Amount

11 $40.80 

12 $83.30 

13 $125.90 14 $168.30 15 $210.50 16 $253.30 17 $295.80 18 $338.30 19 $380.80 20 $423.50 21 $466.00 22 $508.20 23 $551.50 24 $593.90 25 $636.00 26 $679.30 27 $721.30 28 $763.80 29 $806.40 30 $848.80 
Increase the Special Minimum B

One option is to increase Social Security’s special minimto pay 125% of the poverty level at full retirement age fowho has worked 30 years or more.  The poverty level is currently $12,140 a year for one 

the new full special minimum PIA would be about $1roughly 50% higher than current-law

 The Special Minimum PIA would be wage-indexed go Year of coverage would be re-defined from $14,310 i

$5,280

 Targets benefit increases for lower wage workers Increases the financing gap by 5%
Reinstate Student Benefits

Reinstate student benefits until age 22 for children of dedisabled workers if the child is in college or vocational s Currently, a “student beneficiary” refers to an 18-yea

a retired, disabled, or deceased worker who is enrollesecondary school or below

 From 1965 through 1981, these benefits continued u

the child was in college or vocational school

 This change alone increases the financing gap by 2%
Increase all Benefits

One option is to increase the monthly benefit aall beneficiaries now and in the future by 5% of average SS benefit. 5% of the average SS benefit would be abou

month in 2018

 Same dollar increase applied to all beneficia Increases the financing gap by 27%
Increase Benefits for Older Beneficia

One option is to increase the monthly benefit amount fobeneficiaries aged 85 and older now and in the future by 

average retired worker benefit.

 Same dollar increase applied to all beneficiaries eligi

on age

 Older ages targeted due to increased risk of inadequ

levels

 Further insurance against longevity Increases the financing gap by 4%
Childcare Credits

Provide Social Security earnings credits for up to 5 yearwith young children under 6 years of age. The amount of the earnings credit would be half of th

Security Average Wage ($24,321 in 2016)

 Under current law, retired worker benefits are calcula

highest 35 years of earnings

 Would replace as many as the 5 lowest earning year

one has a child under age 6

 Increases the financing gap by 8%