Senate Elections and Social Security’s Insolvency: Coinciding Timelines - AMAC Foundation
With nearly 14% of American seniors reporting that Social Security accounts for at least 90% of their family income, the early days of the 120th Congress will likely focus heavily on the program’s financial plight. Some midterm watchers have labeled Social Security a “sleeper issue,” but with time (and reserve funding) running out rapidly, many expect it will take center stage early in the new Congress.
It’s Not Like Congress is Starting Its Social Security Work Without Ideas
A full slate of ideas to reform portions of Social Security are vying for congressional attention, and many of them have appeared in prior posts on this website. Organizations like the Committee for a Responsible Federal Budget (CRFB), Economic Policy Innovation Center (EPIC), Progressive Policy Institute (PPI), CATO Institute, Brookings Institution, Urban Institute, and others have offered researched reform measures (in fact, using “insolvency” as a search term on this site will return a steady stream of information on what these organizations offer on this subject).
Joining this stream of ideas available to Congress is the Association of Mature American Citizens (AMAC) Social Security Guarantee (SSG). AMAC’s SSG is a packaged proposal to address insolvency, based on the premise that Social Security’s promise must be preserved and modernized to meet 21st-century economic demands.
AMAC’s Stance on Preserving, Protecting, and Modernizing Social Security
AMAC’s position is that Social Security solvency can be achieved without increasing the payroll tax rate through relatively minor program changes, including changes to the cost-of-living adjustment (COLA) process and modifications to the formulas that calculate payments to higher-income beneficiaries. AMAC's position also includes changes to the age at which benefits are maximized, along with steps to ensure that a larger percentage of total worker earnings are subject to FICA/SECA payroll taxes. Other changes advocated by AMAC include (1) an increase in the thresholds where benefits are subject to income tax; (2) indexing of these thresholds annually to account for inflation; (3) improved survivor benefits, (4) eliminating the reduction in benefits for those choosing to work before full retirement age; and (5) improved savings tools for future retirees, including a savings account that builds estate value.
AMAC is resolute in its mission to preserve Social Security for current and future generations and has drawn the attention of lawmakers in D.C., meeting with many congressional offices and staff over the past decade. Most recently, the suggested legislative framework has been reviewed with Social Security Administration officials. For more information on the AMAC proposal, read the “AMAC Social Security Guarantee” document on their website.
This posting is presented for informational purposes only and does not represent legal or financial guidance. Any opinions or interpretations presented are either those of the original author or, in the case of articles authored by the AMAC Foundation, are the opinions of AMAC Foundation staff, originally trained and accredited by the National Social Security Association (NSSA) and certified via the AMAC Foundation. Any links included in the article are valid on the posted date; socialsecurityreport.org cannot guarantee the duration of the links’ validity. NSSA and the AMAC Foundation and its staff are not affiliated with or endorsed by the Social Security Administration or any other governmental entity. To submit a question, visit our website (https://amacfoundation.org/services/) or email us at ssadvisor@amacfoundation.org. Because we are a non-profit organization, there is no charge for these services.