Protecting Benefits for Retirees Act

Bill: 116-s-4180
Sponsor: full_name: Sen. Kaine, Tim [D-VA]
Introduced: 2020-07-02
Policy area: Social Welfare
Subjects: Disability assistance

Inflation and prices

Social security and elderly assistance

Wages and earnings
Latest action: action_date: 2020-07-02
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2020-07-02
action_desc: Introduced in Senate
text: <p><b>Protecting Benefits for Retirees Act</b></p> <p>This bill specifies that the national average wage index used in calculations related to Old Age, Survivors, and Disability Insurance (OASDI) benefit programs must be at least as high as the wage index used in the previous year. Specifically, for any year in which the average wage index declines, the calculations must use the index that applied during the previous year. </p> <p>Under current law, the wage index adjusts the value of an individual's actual earnings to account for changes in average wages over time across a range of OASDI programs, such as when determining benefit amounts for retired workers and certain income thresholds that apply to recipients of Social Security Disability Insurance benefits. Using an average wage index that is lower than in previous years reduces the benefit amounts and relevant income thresholds. For example, under current law, if the average wage index in 2020 is lower than it was in 2019, an individual who turns 60 (the age at which past earnings are indexed) in 2020 would receive reduced retirement benefits compared to a similar individual who turned 60 in 2019.</p>

tv_txt: II 116th CONGRESS 2d Session S. 4180 IN THE SENATE OF THE UNITED STATES July 2, 2020 Mr. Kaine (for himself and Mr. Cassidy ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend title II of the Social Security Act to provide that the national average wage index for any year shall not be less than the amount of the national average wage index for the preceding year.

1. Short title This Act may be cited as the Protecting Benefits for Retirees Act . 2. Modifying the calculation of the Social Security average wage index to conform with the calculation of Social Security cost-of-living adjustments and taxable maximum Section 209(k) of the Social Security Act ( 42 U.S.C. 409(k) ) is amended— (1) in paragraph (1), by striking subject to regulations and inserting subject to paragraph (4) and regulations ; and (2) by adding at the end the following new paragraph: (4) For any calendar year after 2019, if the average of the total wages for a calendar year is less than the national average wage index applicable under this subsection for the preceding calendar year, the amount of the national average wage index for the calendar year involved shall be the amount of the national average wage index that applied under this subsection for such preceding calendar year. .