SB 113-44: Strengthening Social Security Act (Passed)

[Mr. Reactionary]

STRENGTHENING SOCIAL SECURITY ACT

TITLE I: REVENUE ADJUSTMENTS

1. The cap on wages subject to payroll taxation under the social security program is hereby eliminated.

2. The payroll tax rate is hereby reduced by 4% on taxable wages.

3. The realized gain on social security benefits shall be subject to income taxation at the same rate as the realized gain on benefits from a private pension.

4. The value of cafeteria plan contributions shall not be deducted from income when determining the taxable wages subject to payroll tax.

TITLE II: BENEFIT ADJUSTMENTS

1. Any social security beneficiary with 30 eligible working years shall be entitled to a minimum social security benefit amount equaling 125% of the federal poverty line, indexed to wage growth over time.

2. The initial benefit formula of social security benefits are hereby increased by 4% of the wage formula.

3. The eligible full retirement age is hereby increased from 67 years to 68 years, with the retirement age to be increased by 1 month every 2 years until the age is 68.

4. The social security benefit formula shall be based on the top 38 years of earning.

5. The social security benefit award shall be calculated by applying the benefit formula individually to each of the top 38 years of earning, adding the values, then dividing by 38.

6. The initial social security benefit amount shall grow with the federal rate of wage growth for the lowest 30% of earners and shall grow with the federal rate of prices as determined by a chained-CPI formula for the highest 70% of earners.

7. The amount of annual Cost of Living Adjustments (COLAs) shall grow with the federal rate of prices as determined by a chained-CPI formula.

8. No COLA shall be provided to beneficiaries earning more than $100,000 annually or married couples making more than $200,000 annually.

9. The amount of survivor benefits a surviving spouse shall be eligible to receive shall be capped for the highest 25% of earners at the amount that pushes them into the top 25% of earners and indexed thereafter with the federal rate of prices as determined by a chained-CPI formula.

TITLE III: PROGRAM ADMINISTRATION

1. No State or local government employees shall be exempt from participating in the social security program.

2. Eligibility for social security disability insurance (SSDI) benefits shall be conditioned on an applicant having worked for 4 of the 6 years prior to filing for SSDI.

3. The age at which SSDI eligibility is loosened shall be increased from 50 to 55.

4. In SSDI administrative hearings, evidence provided by treating physicians shall not be presumed to be controlling in determining if an applicant is disabled.

5. An applicant for SSDI shall submit all medical evidence prior to an administrative hearing.

6. Up to 10% of the assets of the social security trust fund may be invested into private stocks, bonds, and other financial instruments in the same manner and with the same fiduciary duties and disclosure rules as assets invested by the Federal Employee Retirement System (FERS) and other federal law, including but not limited to the Bullmoose Act.

7. Any participant in the social security program may voluntarily opt to pay up to an additional 2% of withheld wages to be invested in an add-on account alongside and subject to the same protections as those social security assets invested pursuant to section 6 of this title.

8. The Social Security Administration shall be located within the Department of Internal Affairs.

TITLE IV: ENACTMENT

1. This act shall take effect July 1, 2023.

Sponsor: OSR
Debate on this bill is now open.

[LAKISYLVANIA]

I need more explanation on what this exactly plans to do, and what the existing legislation with regards to this.

I'd also like to hear what this written act is based on?

[LAKISYLVANIA]

I call it honestly misleading if an act which is named "strengthening social security" raises retirement age by 1 and increases the loosening of social security disability insurance by 5. I don't call that strengthening social security. I call that weakening social security.

Secondly, I doubt the sponsor or whoever written the act has a good understanding of disability, if to be eligible for social security disability insurance you have to have worked 4 of the 6 years.

Do you know what disabled means.

2. Eligibility for social security disability insurance (SSDI) benefits shall be conditioned on an applicant having worked for 4 of the 6 years prior to filing for SSDI.

[PPT Spiral]

Under no circumstances will I support a bill that raises the retirement age, especially at a time when average life expectancy is dipping now.

[At-Large Senator LouisvilleThunder]

STRENGTHENING SOCIAL SECURITY ACT

TITLE I: REVENUE ADJUSTMENTS

1. The cap on wages subject to payroll taxation under the social security program is hereby eliminated.

2. The payroll tax rate is hereby reduced by 4% on taxable wages.

3. The realized gain on social security benefits shall be subject to income taxation at the same rate as the realized gain on benefits from a private pension.

4. The value of cafeteria plan contributions shall not be deducted from income when determining the taxable wages subject to payroll tax.

TITLE II: BENEFIT ADJUSTMENTS

1. Any social security beneficiary with 30 eligible working years shall be entitled to a minimum social security benefit amount equaling 125% of the federal poverty line, indexed to wage growth over time.

2. The initial benefit formula of social security benefits are hereby increased by 4% of the wage formula.

3. The eligible full retirement age is hereby increased from 67 years to 68 years, with the retirement age to be increased by 1 month every 2 years until the age is 68.

3. The social security benefit formula shall be based on the top 38 years of earning.

4. The social security benefit award shall be calculated by applying the benefit formula individually to each of the top 38 years of earning, adding the values, then dividing by 38.

5. The initial social security benefit amount shall grow with the federal rate of wage growth for the lowest 30% of earners and shall grow with the federal rate of prices as determined by a chained-CPI formula for the highest 70% of earners.

6. The amount of annual Cost of Living Adjustments (COLAs) shall grow with the federal rate of prices as determined by a chained-CPI formula.

7. No COLA shall be provided to beneficiaries earning more than $100,000 annually or married couples making more than $200,000 annually.

8. The amount of survivor benefits a surviving spouse shall be eligible to receive shall be capped for the highest 25% of earners at the amount that pushes them into the top 25% of earners and indexed thereafter with the federal rate of prices as determined by a chained-CPI formula.

TITLE III: PROGRAM ADMINISTRATION

1. No State or local government employees shall be exempt from participating in the social security program.

2. Eligibility for social security disability insurance (SSDI) benefits shall be conditioned on an applicant having worked for 4 of the 6 years prior to filing for SSDI.

3. The age at which SSDI eligibility is loosened shall be increased from 50 to 55.

4. In SSDI administrative hearings, evidence provided by treating physicians shall not be presumed to be controlling in determining if an applicant is disabled.

5. An applicant for SSDI shall submit all medical evidence prior to an administrative hearing.

6. Up to 10% of the assets of the social security trust fund may be invested into private stocks, bonds, and other financial instruments in the same manner and with the same fiduciary duties and disclosure rules as assets invested by the Federal Employee Retirement System (FERS) and other federal law, including but not limited to the Bullmoose Act.

7. Any participant in the social security program may voluntarily opt to pay up to an additional 2% of withheld wages to be invested in an add-on account alongside and subject to the same protections as those social security assets invested pursuant to section 6 of this title.

8. The Social Security Administration shall be located within the Department of Internal Affairs.

TITLE IV: ENACTMENT

1. This act shall take effect July 1, 2023.

I propose this amendment to strike the retirement age increase.

[LAKISYLVANIA]

4. At SSDI administrative hearings, evidence provided by attending physicians shall not be considered conclusive in determining whether an applicant is disabled.

How is evidence provided by attending physicians not conclusive?

In what way does an administrator at SSDI better qualify than a physician in determining whether an applicant is disabled?

[Pericles]

Social Security was well protected under my administration. It's embarrassing that cutting it is even being discussed.

[Mr. Reactionary]

24 hours to object to the amendment

[Mr. Reactionary]

Heres the App:

https://www.crfb.org/socialsecurityreformer/

Heres the math on the original plan

[Mr. Reactionary]

Social Security was well protected under my administration. It's embarrassing that cutting it is even being discussed.

If it goes insolvent its not being protected. Perhaps you should have focused on long term sustainability of the fund to protect retirees and provided a minimum benefit for the poor instead of conservatively wedding yourself to a 90 year old retirement formula.

[LAKISYLVANIA]

I don't want to cut the payroll tax. I'm using the app and it's the big reason of why to balance things out, you get in trouble. There's simply no reason to.

1. The cap on wages subject to payroll taxation under the social security program is hereby eliminated.

2. The payroll tax rate is hereby reduced by 4% on taxable wages.

A payroll tax cut of 4% is drastic, it is currently at 12.4%, you would completely cut taxes in a way that you're not able to provide a healthy social security safenet. On top of that, you expand payroll tax to all wages, which would essentially increase the burden on lower incomes, potentially moving more people into requiring social security.

While at the same time, you tighten eligibility criteria for numerous benefits, most importantly the disability insurance.

It's not because it works in "an app" that it would work in real life, while the creators of such an app have their bias too, not thinking of all ways how one can reform social security and having a political bias in what the problem is and what solutions possibly can be offered to fix the problem. It doesn't work like that. The reality is more complex.

On top of that, i demand that every senator has their say on how we improve social security, and not just the work of a few to than push it through the senate because the votes are there to make it pass.

[LAKISYLVANIA]

I propose this amendment to strike the retirement age increase.

Friendly to LT's amendment btw. I'll propose more amendments later on (after the amendment is adopted / passed or rejected by a vote.)

[Mr. Reactionary]

I don't want to cut the payroll tax. I'm using the app and it's the big reason of why to balance things out, you get in trouble. There's simply no reason to.

1. The cap on wages subject to payroll taxation under the social security program is hereby eliminated.

2. The payroll tax rate is hereby reduced by 4% on taxable wages.

A payroll tax cut of 4% is drastic, it is currently at 12.4%, you would completely cut taxes in a way that you're not able to provide a healthy social security safenet. On top of that, you expand payroll tax to all wages, which would essentially increase the burden on lower incomes, potentially moving more people into requiring social security.

While at the same time, you tighten eligibility criteria for numerous benefits, most importantly the disability insurance.

It's not because it works in "an app" that it would work in real life, while the creators of such an app have their bias too, not thinking of all ways how one can reform social security and having a political bias in what the problem is and what solutions possibly can be offered to fix the problem. It doesn't work like that. The reality is more complex.

On top of that, i demand that every senator has their say on how we improve social security, and not just the work of a few to than push it through the senate because the votes are there to make it pass.

Thats 4% of the current rate, not 4 points from the current rate, which I believe is higher in game. A 4% rate reduction takes it from 12.4% to 12% rate, not to 8.4%.

Also eliminating the cap raises revenue of high income earners. Income is currently capped at like 120K or something. Eliminating the cap means income over $120K would be subject to taxation. That is objectively a tax increase on the rich.

[LAKISYLVANIA]

This is the proposal i want.

A payroll tax increase of 0.4% while increasing benefits with 20%. No tightening of SSDI criteria and no raise of retirement age.

[LAKISYLVANIA]

I don't want to cut the payroll tax. I'm using the app and it's the big reason of why to balance things out, you get in trouble. There's simply no reason to.

1. The cap on wages subject to payroll taxation under the social security program is hereby eliminated.

2. The payroll tax rate is hereby reduced by 4% on taxable wages.

A payroll tax cut of 4% is drastic, it is currently at 12.4%, you would completely cut taxes in a way that you're not able to provide a healthy social security safenet. On top of that, you expand payroll tax to all wages, which would essentially increase the burden on lower incomes, potentially moving more people into requiring social security.

While at the same time, you tighten eligibility criteria for numerous benefits, most importantly the disability insurance.

It's not because it works in "an app" that it would work in real life, while the creators of such an app have their bias too, not thinking of all ways how one can reform social security and having a political bias in what the problem is and what solutions possibly can be offered to fix the problem. It doesn't work like that. The reality is more complex.

On top of that, i demand that every senator has their say on how we improve social security, and not just the work of a few to than push it through the senate because the votes are there to make it pass.

Thats 4% of the current rate, not 4 points from the current rate, which I believe is higher in game. A 4% rate reduction takes it from 12.4% to 12% rate, not to 8.4%.

Also eliminating the cap raises revenue of high income earners. Income is currently capped at like 120K or something. Eliminating the cap means income over $120K would be subject to taxation. That is objectively a tax increase on the rich.

I don't see why the payroll tax has to be decreased by 4% from its current total. I don't know what the payroll tax rate is in the game, but if it's different in the game, the balance will also be different.

Maybe it's better to clarify what current payrol tax is in game, and what the payroll tax rate would be when the act passes.

[LAKISYLVANIA]

Proposed two amendments, naming them (to avoid confusion) and put in queue or on hold till there is room to ask for objections (or motion for a vote).

Laki amendment 1:

TITLE I: REVENUE ADJUSTMENTS

1. The cap on wages subject to payroll taxation under the social security program is hereby eliminated.

2. The payroll tax rate is hereby reduced by 4% on taxable wages.

3. 2. The realized gain on social security benefits shall be subject to income taxation at the same rate as the realized gain on benefits from a private pension.

4. 3. The value of cafeteria plan contributions shall not be deducted from income when determining the taxable wages subject to payroll tax.

TITLE II: BENEFIT ADJUSTMENTS

(...)

2. The initial benefit formula of social security benefits are hereby increased by 4% 15% of the wage formula.

Laki amendment 2:

TITLE III: PROGRAM ADMINISTRATION

1. No State or local government employees shall be exempt from participating in the social security program.

2. Eligibility for social security disability insurance (SSDI) benefits shall be conditioned on an applicant having worked for 4 of the 6 years prior to filing for SSDI.

3. The age at which SSDI eligibility is loosened shall be increased from 50 to 55.

4. In SSDI administrative hearings, evidence provided by treating physicians shall not be presumed to be controlling in determining if an applicant is disabled.

5. An applicant for SSDI shall submit all medical evidence prior to an administrative hearing.

6. 2. Up to 10% of the assets of the social security trust fund may be invested into private stocks, bonds, and other financial instruments in the same manner and with the same fiduciary duties and disclosure rules as assets invested by the Federal Employee Retirement System (FERS) and other federal law, including but not limited to the Bullmoose Act.

7. 3. Any participant in the social security program may voluntarily opt to pay up to an additional 2% of withheld wages to be invested in an add-on account alongside and subject to the same protections as those social security assets invested pursuant to section 6 of this title.

8. 4. The Social Security Administration shall be located within the Department of Internal Affairs.

The balance will still be maintained given i checked it on the app just like you (even when I did 20% i only had to raise payroll tax a tiny bit, but i'll do 15% to be safe, that way there is no change or increase in payroll tax, which i wanted to avoid). In that case, we can really talk about strengthening social security.

And no SSDI tightening eligibility (that's a red line for me).

[Mr. Reactionary]

24 hours to object to the amendments

[Mr. Reactionary]

LT Amendment is adopted.

[Mr. Reactionary]

Laki Amendment is adopted

[GM Team Member and Senator WB]

With Laki's amendments this seems much better. I'll need to look further into this of course but seems good

[Mr. Reactionary]

Bump. Anyone else play around with the App? Its a useful tool to gauge everyones preferences and reach a good consensus.

[GM Team Member and Senator WB]

Bump. Anyone else play around with the App? Its a useful tool to gauge everyones preferences and reach a good consensus.

fun to mess around with like the Fiscal Ship. I think Laki's amendments cover most of my concerns.

[Pyro]

I would strongly encourage striking or amending the following sections from this bill.

2. The realized gain on social security benefits shall be subject to income taxation at the same rate as the realized gain on benefits from a private pension.

Currently, individuals with a taxable income below $25,000 do not have their Social Security benefit taxed.
This should be addressed in an amendment to this section. Otherwise, this proposal will result in a tax increase on low-income Atlasians.

6. 2. Up to 10% of the assets of the social security trust fund may be invested into private stocks, bonds, and other financial instruments in the same manner and with the same fiduciary duties and disclosure rules as assets invested by the Federal Employee Retirement System (FERS) and other federal law, including but not limited to the Bullmoose Act.

It is enormously risky to invest any portion of the Social Security fund into the stock market. Investing a huge amount of government funds in this manner will introduce new risks concerning political influence on private companies, thus opening the doors for incalculable corruption with the SSA potentially choosing investments for reasons other than high returns. This would be an experiment with major consequences.

It's obviously no guarantee whether or not investments will be politicized, or how this changes the government's role in the stock market, but there are better solutions for creating a more stable future for Social Security. For instance, connect a new capital gains tax to the Social Security fund. This way, when stocks do well and corporations profit, the fund gets more money. That would essentially accomplish the same goal without having the admin directly purchase stocks.

[GM Team Member and Senator WB]

Pyro makes some good points. I motion to amend the bill by striking those sections.

[Mr. Reactionary]

24 hours to object.