4 Major Ways the Social Security 2100 Act Would Change Benefits

Social Security 2100 Act

The Social Security 2100 Act is a legislative proposal designed to improve benefits for retirees and disabled individuals while securing the future of the program. Introduced by lawmakers committed to strengthening Social Security, the Act outlines meaningful changes that aim to modernize how benefits are calculated and distributed.

1. Universal Increase in Benefits

The Act proposes a 2% increase in monthly Social Security payments for all beneficiaries. This boost is intended to provide immediate relief and correct decades of benefit stagnation.

This is a permanent increase, not a one-time bonus.
It is aimed at offsetting inflation and enhancing financial security for recipients.

2. Improved Cost-of-Living Adjustments (COLAs)

Currently, annual benefit increases are calculated using the Consumer Price Index for Urban Wage Earners (CPI-W). The 2100 Act recommends shifting to the Consumer Price Index for the Elderly (CPI-E), which better reflects the spending patterns of seniors, especially in areas like healthcare and housing.

This change would likely lead to slightly higher annual COLA increases.
It ensures benefit adjustments more accurately match seniors’ actual living expenses.

3. Higher Minimum Benefits for Low-Income Workers

To better support lifelong low-wage earners, the Act sets a new minimum benefit at 125% of the federal poverty level for individuals with at least 30 years of covered employment.

This reform addresses senior poverty and helps ensure a dignified retirement.
Long-term workers in low-paying jobs would see significantly improved benefits.

4. Repeal of WEP and GPO Penalties

The Act aims to eliminate the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). These provisions currently reduce Social Security benefits for workers who also receive pensions from non-Social Security-covered employment, such as teachers, police officers, and firefighters.

Repealing these rules would restore full Social Security benefits for affected public servants.
This change addresses long-standing inequities faced by government employees.

Are These Changes Permanent?

Many provisions in the Social Security 2100 Act are designed to last for about 10 years. Congress would need to revisit and renew them to ensure the changes continue beyond that time frame.

Conclusion: Moving Toward a Stronger Future

The Social Security 2100 Act represents a step toward modernizing a program that millions of Americans rely on. From improving benefit calculations to correcting outdated policies, the Act proposes meaningful updates that could provide more financial stability to current and future beneficiaries.

Vivek

As a finance news writer at sirfal.com, I specialize in breaking down complex economic trends, market updates, and investment strategies into clear, actionable insights. My mission is to empower readers with the knowledge needed to make informed financial decisions. Thank you for engaging with my articles; I hope they add value to your financial journey.