Summary of Provisions That Would Change the Social Security Program
Description of Proposed Provisions:
Provisions Affecting Family Member Benefits
Estimates based on the intermediate assumptions of
the 2019 Trustees Report
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|
Change from current law [percent of payroll] |
Shortfall eliminated | |||||
|---|---|---|---|---|---|---|
|
Long-range actuarial balance |
Annual balance in 75th year |
Long-range actuarial balance |
Annual balance in 75th year |
|||
| Current law shortfall in long-range actuarial balance is 2.78 percent of payroll and in annual balance for the 75th year is 4.11 percent of payroll. | ||||||
| D1 |
Beginning in 2020, continue benefits for children of disabled or deceased workers
until age 22 if the child is in high school, college or vocational school.
graph | table | pdf-graph | pdf-table | memo (Sanders, DeFazio 2019) | memo (Lawson) | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) | memo (Begich, Murray) | memo (Moore 2013) | memo (National Academy of Social Insurance) |
-0.06 | -0.06 | -2% | -1% | |
| D2 |
The current spouse benefit is based on 50 percent of the PIA of the other
spouse. Reduce this percent each year by 1 percentage point beginning with
newly eligible spouses in 2020, until the percent reaches 33 in 2036.
graph | table | pdf-graph | pdf-table | memo (National Academy of Social Insurance) |
0.10 | 0.15 | 4% | 4% | |
| D3 |
Allow divorced aged spouses and divorced surviving spouses married 5 to 9
years to get benefits based on the former spouse's account. Divorced aged
and surviving spouses would receive 50% of the applicable current-law PIA
percentage if married 5 years, 60% of the applicable PIA percentage if married
6 years, ..., 90% of the applicable PIA percentage if married 9 years. This
benefit would be available to divorced spouses on the rolls at the beginning
of 2021 and those becoming eligible after 2021.
graph | table | pdf-graph | pdf-table | memo (Begich, Murray) |
-0.02 | -0.01 | -1% | -0% | |
| D4 |
Establish an alternative benefit for a surviving spouse. For the surviving
spouse, the alternative benefit would equal 75 percent of the sum of the
survivor's own worker benefit and the deceased worker's PIA (including any
actuarial reductions or delayed retirement credits). If the deceased worker
died before becoming entitled, use the age 62 actuarial reduction if deceased
before age 62, or the applicable actuarial reduction/DRC for entitlement at
the age of death if deceased after 62. The alternative benefit would not exceed
the PIA of a hypothetical earner who earns the SSA average wage index (AWI)
every year, and who becomes eligible for retired-worker benefits in the same
year in which the deceased worker became entitled to worker benefits or died
(if before entitlement). The alternative benefit would be paid only if more
than the current-law benefit. This benefit would be available to surviving
spouses on the rolls at the beginning of 2021 and those becoming eligible
after 2021.
graph | table | pdf-graph | pdf-table | memo (Lawson) | memo (Begich, Murray) |
-0.11 | -0.12 | -4% | -3% | |
| D5 |
Limit the spousal benefit to that received by the spouse of the 75th
percentile career-average worker, beginning with retired workers newly
eligible in 2026. For future cohorts, this limit would be indexed for
inflation annually using chain weighted CPI-U. The provision affects
divorced spouses and young spouses (retired workers) but not spouses
of disabled workers.
graph | table | pdf-graph | pdf-table | memo (Bipartisan Policy Center October 2016) | memo (Bipartisan Policy Center June 2016) |
0.09 | 0.18 | 3% | 4% | |
| D6 |
For spouses and children of retired and disabled workers becoming newly
eligible beginning in 2026 and phased in for 2026 through 2035, limit
their auxiliary benefit to one-half of the PIA for a hypothetical worker
with earnings equal to the national average wage index (AWI) each year.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) |
0.07 | 0.10 | 2% | 3% | |
| D7 |
Beginning in January 2022, require full time school enrollment as
a condition of eligibility for child benefits at age 15 up to 18.
graph | table | pdf-graph | pdf-table | memo (Johnson 2016) |
0.00 | 0.00 | 0% | 0% | |
| D8 |
Beginning in 2020, continue benefits for children of disabled, retired,
or deceased workers until age 26 if the child is in high school, college
or vocational school.
graph | table | pdf-graph | pdf-table | memo (Moore 2019) |
-0.09 | -0.09 | -3% | -2% | |