Cartwright Co-Sponsors Legislation to Strengthen Social Security

Press Release

Today, U.S. Rep. Matt Cartwright signed on as an original co-sponsor of the Strengthening Social Security Act of 2013, a companion to S. 567 introduced by Sen. Harkin earlier this year. The legislation is designed to increase benefits for current beneficiaries while making Social Security stronger for future generations.

"Social Security continues to be one of our nation's strongest anti-poverty programs. Social Security benefits are the most common source of income for those aged 65 and older, and they represent an even greater share of retirement income for those in low and middle income brackets," said Cartwright. "By updating the current benefit formula, we can boost benefits for current beneficiaries to provide a better standard of living."

To extend the life of the trust fund, the Strengthening Social Security Act would phase out the current taxable cap of $113,700, so that payroll taxes apply fairly to every dollar of wages. By improving the long-term financial condition of the trust fund, we can ensure that future generations are able to receive the benefits they have earned while providing fairer benefits to current seniors.

Additionally, the Act changes the way the Social Security Administration calculates the Cost of Living Adjustments (COLA). Currently, the annual adjustment is tied to the Consumer Price Index for all Urban Wage Earners (CPI-W) for the purposes of calculating inflation. However, the CPI-W is based on a basket of goods that does not adequately track the purchases of seniors. As a result, to ensure that benefits better reflect cost increases facing seniors, future COLAs will be based on the Consumer Price Index for the Elderly (CPI-E). The CPI-E is an experimental index that the Bureau of Labor Statistics has been keeping since 1982. Making this change to Social Security is expected to result in higher COLAs, ensuring that seniors are able to better keep up with the rising costs of essential items, like health care.

"Most importantly, this bill would make sure that benefits better reflect the increasing costs facing seniors today," Cartwright said. "This change to the way cost-of-living adjustments are calculated is crucial for seniors facing the daunting challenge of meeting their health care needs. As you know, health care costs for seniors have soared over the past decade, increasing out-of-pocket expenses for a population who can least afford it."

These changes are estimated to preserve the trust fund through at least 2049. While more needs to be done to preserve and protect Social Security for future generations, the changes included in the Strengthening Social Security Act of 2013 are an important first step.

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