Diverse Elders Challenges Recommendations to Reduce Social Security Benefits
Recommendations by the Debt Reduction Task Force, National Commission on Fiscal Responsibility Proposals Seek to Reduce Social Security Benefits
Despite the fact that Social Security is outside the scope of federal deficit discussions, two national groups have called for cuts to the program. On November 17, the Bipartisan Policy Center's Debt Reduction Task Force released its report, "Restoring America's Future," advocating reductions to Social Security benefits that would affect millions of older Americans. This report comes one week after the National Commission on Fiscal Responsibility Chairmen Alan Simpson and Erskine Bowles released their preliminary deficit reduction recommendations, which also includes measures to cut Social Security benefits.
"The Social Security program is fully funded by payroll tax revenues, and therefore has not contributed to our nation's deficit," said Michael Adams, executive director of SAGE. "It is critical that our country's leaders propose substantive solutions to reduce our national debt, but not at the expense of a crucial program like Social Security that serves as a lifeline for millions of our country's diverse elders."
Nearly 54 million people, or one in four households, receive Social Security benefits, which provide economic support to American workers and their families who have lost income due to retirement, disability or death. Social Security is a critical source of income for many older adults, especially elders of color and LGBT elders, who are more likely to face financial insecurity due to lifetimes of discrimination, racial segregation and persistent, present-day inequalities.
For example, LGBT older adults are not eligible for Social Security spousal benefits, survivor benefits or death benefits, which can contribute to higher poverty rates among LGBT older adults and significantly reduce retirement income.
These benefits will become increasingly important as the number of Americans aged 65 and older, many of them people of color and LGBT, surges over the next two decades.
Recommendations from the two reports that are ultimately harmful to current and future Social Security beneficiaries include: raising the retirement and early retirement age, reducing cost of living adjustments, changing the benefit formula so that retirees will receive smaller monthly benefits, and cutting benefits to middle-income workers.
Both proposals advocate for an increase in the payroll tax cap, which is currently at $106,800 of wages and covers only 86% of total national wages. The Diverse Elders Coalition supports the recommendation to gradually cover 90% of total wages, as this will result in a more progressive payroll tax.
The Bipartisan Policy Center is a non-profit organization established in 2007 by former Senate Majority Leaders Howard Baker, Tom Daschle, Bob Dole and George Mitchell. The National Commission on Fiscal Responsibility and Reform, established by President Obama last February, is scheduled to release its final report on December 1.
The Diverse Elders Coalition is dedicated to promoting federal policy solutions that enhance the quality of life for our country's diverse aging communities and will continue to monitor the National Commission on Fiscal Responsibility. For more information about the Diverse Elders Coalition and its members, please refer to:
- Asociación Nacional Pro Personas Mayores (ANPPM)
- National Asian Pacific Center on Aging (NAPCA)
- National Caucus & Center on Black Aged (NCBA)
- National Hispanic Council on Aging (NHCOA)
- National Indian Council on Aging (NICOA)
- Services & Advocacy for GLBT Elders (SAGE)
- Southeast Asia Resource Action Center (SEARAC)
For information on Social Security Works:
Services and Advocacy for GLBT Elders (SAGE) is the country's largest and oldest organization dedicated to improving the lives of lesbian, gay, bisexual and transgender (LGBT) older adults. Founded in 1978 and headquartered in New York City, SAGE is a national organization that offers supportive services and consumer resources to LGBT older adults and their caregivers, advocates for public policy changes that address the needs of LGBT older people, provides education and technical assistance for aging providers and LGBT organizations through its National Resource Center on LGBT Aging, and cultural competence training through SAGECare. With staff in New York City, Washington, DC and Chicago, SAGE coordinates a growing network of 30 SAGE affiliates in 20 states and the District of Columbia. Learn more at sageusa.org and lgbtagingcenter.org.