4 Benefits of the Social Security 2100 Act
Alicia Munnell of MarcketWatch.com has compiled the four key benefits provided by the Social Security 2100 Act. These are the primary improvements which this important legislation will make to the Social Security system.
The Social Security 2100 Act will:
- Utilize an improved cost-of-living adjustment (COLA) formula to better compensate retirees for inflation. Rather than the current formula, COLAs would be based on the Consumer Price Index for the Elderly which better takes into consideration the costs facing seniors.
- Increase the “first factor in the benefit formula” by 3 percent. This will provide an across-the-board benefits increase to many seniors.
- Adjust the thresholds for the tax on Social Security benefits to “allow middle-class workers to keep more of their benefits.”
- Raise “the special minimum benefit” for beneficiaries who earn the least.
However, these are just some of the improvements provided by this legislation. Please read our Ultimate Guide to the Social Security 2100 Act for a deep dive into the text of the bill and its benefits.