Daniel Nickerson

Office of the Chief Actuary

Social Security Administration

Proposals to Expand Benefits

NASI 2017 Summer Academy for Interns

August 10, 2017
Expanding Benefits

1. Expand the population covered by Social Security

- Example: Cover all State and Local Government Employees

2. Increase benefits for those already covered by Social 

Security

- Focus of this presentation

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Increasing Benefits (Examples)

 Increase the Special Minimum Benefit

 Reinstate student benefits

 Increase all benefits by 5%

 Increase benefits for beneficiaries 85+

 Childcare Credits

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Special Minimum Benefit

The special minimum benefit is a special minimum 

primary insurance amount (PIA) enacted in 1972 to 

provide adequate benefits to long-term low earners. The 

first full special minimum PIA in 1973 was $170 per 

month. Beginning in 1979, its value has increased with 

price growth and is $832 per month in 2016.

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Special Minimum Benefit Effective December 2016

Number of years of 

coverage Primary Insurance Amount

11 $40.00 

12 $81.70 

13 $123.50 

14 $165.00 

15 $206.40 

16 $248.40 

17 $290.00 

18 $331.70 

19 $373.40 

20 $415.20 

21 $456.90 

22 $498.30 

23 $540.70 

24 $582.30 

25 $623.60 

26 $666.00 

27 $707.20 

28 $748.90 

29 $790.60 

30 $832.20 
Increase the Special Minimum Benefit

One option is to increase Social Security’s special minimum benefit 

to pay 125% of the poverty level at full retirement age for someone 

who has worked 30 years or more. 

 The poverty level is currently about $12,000 a year for one 

person, so the new full special minimum PIA would be about 

$1,250, roughly 50% higher than current-law

 The Special Minimum PIA would be wage-indexed going forward

 Year of coverage would be re-defined from $14,175 in 2017 to 

$5,200

 Targets benefit increases for lower wage workers

 Increases the financing gap by 5%

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Reinstate Student Benefits

Reinstate student benefits until age 22 for children of deceased or 

disabled workers if the child is in college or vocational school.

 Currently, a “student beneficiary” refers to an 18-year old child of 

a retired, disabled, or deceased worker who is enrolled in 

secondary school or below

 From 1965 through 1981, these benefits continued until age 22 if 

the child was in college or vocational school

 This change alone increases the financing gap by 2%

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Increase all Benefits

One option is to increase the monthly benefit amount for 

all beneficiaries now and in the future by 5% of the 

average SS benefit.

 5% of the average SS benefit would be about $65 a 

month in 2017

 Same dollar increase applied to all beneficiaries

 Increases the financing gap by 27%

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Increase Benefits for Older Beneficiaries

One option is to increase the monthly benefit amount for all 

beneficiaries aged 85 and older now and in the future by 5% of the 

average retired worker benefit.

 Same dollar increase applied to all beneficiaries eligible based 

on age

 Older ages targeted due to increased risk of inadequate benefit 

levels

 Further insurance against longevity

 Increases the financing gap by 4%

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Childcare Credits

Provide Social Security earnings credits for up to 5 years to parents 

with young children under 6 years of age.

 The amount of the earnings credit would be half of the Social 

Security Average Wage ($24,049 in 2015)

 Under current law, retired worker benefits are calculated using 

highest 35 years of earnings

 Would replace as many as the 5 lowest earning years in which 

one has a child under age 6

 Increases the financing gap by 8%

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