WASHINGTON — U.S. Sen. Brian Schatz, D-Hawaii, reintroduced a bill Wednesday that would increase Social Security benefits by an average of $125 per month, ensure cost-of-living adjustments reflect actual living expenses of retirees and otherwise improve and expand the program.

The Safeguarding American Families and Expanding Social Security Act was originally introduced in 2021 but failed to advance after a pair of readings and referral to the Senate finance committee.

“Social Security is the most successful safety net program in American history,” Schatz said in a release issued on Wednesday. “My bill will expand Social Security, put more money in the hands of seniors who rely on it, strengthen the program for the next generation of retirees, and make sure everyone pays into the system equally.”

Over 280,000 people in Hawaii, greater than 1 in 6 residents, receive Social Security benefits. That number is expected to grow significantly by 2040, when about 20% of the population will be eligible for the program.

The SAFE Social Security Act proposes to phase out the payroll tax cap so that payroll taxes apply to every dollar of wages earned, a change Schatz said will ensure that all American taxpayers contribute equally.

The bill would also adjust benefits calculations to increase monthly benefits by an average of more than $125; provide an additional 5% increase in benefits for older seniors to ensure they can make ends meet as their retirement savings are depleted; guarantee a new minimum benefit to help lower income seniors have enough to survive; and provide a credit for caregivers that would be added to an individual’s earnings to calculate their future Social Security benefits.

In addition, the measure would ensure that any increase in benefits would not harm an individual’s eligibility or reduce their SSI, Medicaid, or CHIP benefits; eliminate the waiting period for disability insurance and surviving spousal benefits; include an increase of 5.7% in the Net Investment Income Tax to extend the solvency of the Trust Fund to 2050; and update the annual cost-of-living adjustment to better reflect the actual costs that seniors face through the use of the Consumer Price Index for the Elderly.

Following the introduction of the bill, Schatz met with Social Security commissioner Martin O’Malley to discuss the need to protect the program and secure adequate support for retired seniors.

The bill was endorsed by the National Committee to Preserve Social Security and Medicare and Social Security Works.

“Enactment of the SAFE Social Security Act would give all Americans confidence that Social Security will be there for them when they need it,” said NCPSSM president and CEO Max Richtman. “It would extend the solvency of the trust funds for decades to come by asking the wealthiest Americans to pay their fair share. It also provides much needed improvements to Social Security benefits, which have not been boosted in half a century.”

SSW president Nancy Altman thanked Schatz for the “visionary legislation,” and his “tireless efforts to increase our economic security.”

“This essential legislation substantially increases benefits for all current and future beneficiaries, both across the board by an average of $1,500 a year and in important targeted ways,” Altman said. “It also ensures that all benefits can be paid in full and on time for the foreseeable future.”

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