WASHINGTON — U.S. Sen. Mazie Hirono and U.S. Rep. Jill Tokuda, both D-Hawaii, introduced new legislation Friday that would solidify the Social Security program’s financial state and help ensure continued benefits for eligible seniors. 

What You Need To Know

  • The bill would require that the Consumer Price Index for the Elderly rather than the CPI for Urban Wage Earners is used to calculate cost-of-living adjustments, phase out the cap on Social Security contributions over the next seven years and encourage contributions above the cap in exchange for additional benefits
  • According to the Social Security Administration’s Office of the Chief Actuary, the Protecting and Preserving Social Security Act would extend the ability of the Old Age, Survivors, and Disability Insurance program to pay scheduled benefits in full and on time for an additional 19 years, moving the date of projected depletion from 2035 to 2054
  • The bill would also reduce the federal deficit by approximately $13.3 trillion by the end of the 75-year projection period

“Social Security provides crucial support to millions of kupuna, people with disabilities and other vulnerable communities in Hawaii and across the country,” Hirono said. “By lifting the cap on Social Security contributions, the Protecting and Preserving Social Security Act will help ensure Social Security remains solvent for decades to come. I’m proud to introduce this legislation to strengthen the program and help ensure the millions of Americans who rely on it will continue to receive the benefits they deserve.” 

Specifically, the bill would require that the Consumer Price Index for the Elderly rather than the CPI for Urban Wage Earners is used to calculate cost-of-living adjustments, phase out the cap on Social Security contributions over the next seven years and encourage contributions above the cap in exchange for additional benefits.

“Americans across the country depend on Social Security,” Tokuda said. “It is a commitment we make to the working men and women who keep America moving forward and they are relying on us to keep Social Security solvent so they can retire with dignity. In Hawaii, where the cost of living is so high, we must ensure these hard-earned benefits keep pace with rising costs of food, housing, and everyday necessities. Our bill will provide a necessary increase to Social Security payments while reducing the national debt by trillions of dollars and strengthening the Trust Funds to support our kupuna and retirees for decades to come.”

According to the Social Security Administration’s Office of the Chief Actuary, the Protecting and Preserving Social Security Act would extend the ability of the Old Age, Survivors, and Disability Insurance program to pay scheduled benefits in full and on time for an additional 19 years, moving the date of projected depletion from 2035 to 2054. The bill would also reduce the federal deficit by approximately $13.3 trillion by the end of the 75-year projection period.

“With prices rising, it’s more important than ever for Social Security’s annual cost-of-living adjustments to reflect the real expenses seniors and people with disabilities face every day,” said Alex Lawson, executive director of the nonprofit Social Security Works. “The Protecting and Preserving Social Security Act would do just that by updating the formula used to calculate the adjustments. This wise legislation makes this important improvement while also increasing the financial health of the Social Security system by requiring that the highest-paid workers contribute to Social Security all year long, just like the rest of us.” 

In addition to Hirono, Sens. Jeff Merkley, D-Ore., and Tina Smith, D-Minn., co-sponsored the bill in the Senate. 

In the House, the bill was co-sponsored by Tokuda, Rep. Steve Cohen, D-Tenn., and Jan Schakowsky, D-Ill.

Michael Tsai covers local and state politics for Spectrum News Hawaii. He can be reached at michael.tsai@charter.com.