HR-3261 : Still Just a Bill

The Strengthening Social Security Act of 2023, also known as H.R. 3261, aims to enhance the retirement security of United States families by modifying Social Security.

Key provisions of the bill include:

• Taxable Wage Base: Modifies the determination of taxable wages and self-employment income above the contribution and benefit base, gradually eliminating the cap on earnings subject to Social Security taxes, starting in 2025 with 80% inclusion and reaching 0% by 2029.
• Benefit Calculation Adjustments: Adjusts the bend points in determining the Primary Insurance Amount (PIA) to provide a higher benefit for lower-income earners and includes surplus earnings in benefit determinations.
• Consumer Price Index for the Elderly (CPI-E): Directs the Bureau of Labor Statistics to prepare and publish a Consumer Price Index for Elderly Consumers to reflect the specific spending patterns of older individuals.
• Cost-of-Living Adjustments (COLA): Mandates that cost-of-living increases for Social Security benefits be computed using the Consumer Price Index for Elderly Consumers (CPI-E).
• Improved Benefits for Widows/Widowers: Changes benefit calculations for widows and widowers in two-income households to provide a higher level of support.
• SSI Protection: Ensures that Supplemental Security Income (SSI) beneficiaries are not negatively affected by the changes in Social Security benefits.

In summary, the bill seeks to strengthen Social Security by increasing revenues, adjusting benefit calculations, and providing targeted support to vulnerable populations such as low-income earners, widows, and SSI recipients.