The Bipartisan Social Security bill aims to prevent a deep 22% cut in benefits.
Ramsey Show personality and host George Kamel breaks down the myth-truth about Social Security funding cuts with Fox News Digital.
The ticking clock on Social Security solvency prompted a bipartisan coalition to introduce legislation aimed at preventing automatic benefit cuts, across the board for more than 70 million Americans.
Called the Protecting Retirement Opportunity and Preserving Social Security Income for Everyone (PROMISE) Act, the bill establishes a procedural process designed to require congressional votes on a long-term Social Security solvency plan before the expected decline in the retirement fund in 2032 results in an automatic 22% reduction in monthly benefits. The law calls for an independent, bipartisan advisory committee to make recommendations aimed at reimbursing the plan for at least 50 years.
“Here is our chance to agree on a bipartisan process to save Social Security this year,” said Senate Democratic Whip Dick Durbin, D-Ill., in a press release. “Our bipartisan proposal opens up Congress to discuss this issue in an open, fair, and inclusive way. We were elected to solve problems — and there is no bigger problem than the solvency and future of Social Security.”
“Millions of Americans rely on Social Security to survive. In 6 years, those families will see a 22% cut in their benefits if Congress does not act. Our plan begins the process of keeping the promised benefits for current retirees and the next generation of Americans,” said Sen. Bill Cassidy, R-La., alongside Republican Sens. Thom Tillis, RN.C; John Cornyn R-Texas; and Alan Armstrong, R-Okla.
WHY FINANCIAL EXPERT RAMSEY SAYS 'THERE IS NO MAGIC TIME' TO ENROLL IN SOCIAL PROTECTION
Although many legislative proposals to protect Social Security trust funds have been introduced over the years, almost none have reached a floor vote.
A US Treasury check and Social Security card in front of the United States Capitol building. (Getty Images)
The PROMISE Act establishes a strict procedural timeline, requiring the Social Security Advisory Board (SSAB) to submit a proposal designed to restore Social Security payments for at least 50 years. The bill also requires the majority leaders of the House and Senate to introduce the proposal, and if they fail to do so, any member of Congress can introduce it.
The proposal will then be referred to the House Ways and Means Committee and the Senate Finance Committee. If the committees do not report, the legislation will be released to the House and Senate calendar for consideration.
The final phase would require a simple majority vote in the House and a three-fifths majority in the Senate.
The 'Big Money Show' panel discusses new analysis that shows Social Security and Medicare are headed for bankruptcy and warns that retirees face steep benefit cuts unless Washington acts quickly.
“Social Security is on an unmanageable path that will lead to dramatic declines in benefits for retirees and growing skepticism among workers paying into a system on the brink of bankruptcy. With each passing year, the menu of options that preserve benefits and limit tax increases shrinks. The modest changes Congress considered in 2010 would have put Social Security through two years of tougher reform than our 75-year-old current runway,” it said. Sen. Tillis. “I'm not going to pretend there's a consensus on how to solve this, but the math is unforgiving: the longer Congress waits, the fewer good options remain.”
“For nearly a century, Social Security has been a lifeline that has allowed Americans to retire with dignity. Congress should not wait until the last minute to improve this critical program and prevent broad benefit cuts from destroying the Trust Fund,” said Sen. Tim Kaine, D-Va., supported the bill.
“That's why I'm joining a bipartisan group of colleagues to introduce legislation that will encourage Congress to roll up its sleeves and find a way forward to ensure that current and future generations of retirees and their families are able to receive the benefits they've earned and are owed,” he continued.
US Social Security Administration Commissioner Frank Bisignano pushes back against Sen. Elizabeth Warren also discusses the threat of bankruptcy on 'Mornings with Maria.'
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The nonpartisan Committee for a Responsible Federal Budget expressed support for the bill: “The PROMISE Act will establish a thoughtful bipartisan process to help Congress do its job and save Social Security before it's too late… These proposals keep Congress and the public engaged in this important process. I hope they can give our leaders the kick in the pants they need to start working together to get the Federal Security Committee of the future,” Budget President Maya MacGuineas wrote.
Based on the current average monthly payment of $2,071, beneficiaries – including seniors and people with disabilities – could lose about $450 a month if the financing plan is not implemented. Experts estimate that this reduction will force more than 3 million American citizens into poverty.
READ MORE AT FOX BUSINESS
