December 02, 2015
SAVE Act Introduced in House of Representatives
On November 5 Sen. Elizabeth Warren introduced S. 2251, the Seniors and Veterans Emergency (SAVE) Benefits Act. The SAVE Act would help seniors and veterans by providing a one-time benefit of $581 to offset last month’s announcement by the Social Security Administration that, despite rising costs of many necessities, there would be no cost-of-living adjustment (COLA) for beneficiaries next year.
Yesterday, Rep. Tammy Duckworth (D-IL) introduced H.R. 4144, the companion legislation in the U.S. House.
Passage of the SAVE Act would help bring our economy into balance and make an important statement about fairness. The payment amount equals 3.9% of the average Social Security benefit, and 3.9% is the average increase in pay last year for the nation’s top 350 CEOs.
It is entirely appropriate that these one-time payments to Social Security beneficiaries would be funded by eliminating the CEO performance pay tax break. The revenue gained from closing the tax loophole would then be dedicated to Social Security, strengthening the long-range projected solvency of the Social Security Trust Fund.
Passing this bill is one step we can take to improve our retirement security. Congress should also require the Social Security Administration to base future COLAs on the Consumer Price Index for the Elderly (CPI-E), which much more accurately reflects the cost of things retirees purchase, such as health care and housing.
The Alliance and other groups including the AFL-CIO, AFSCME, and Social Security Works are among the many organizations who have already endorsed the legislation.