Bill would give one-time extra Social Security payment to all recipients

Sen. Elizabeth Warren, D-Mass., introduced legislation paying $581 to each person receiving retirement benefits to offset no cost of living adjustment in 2016

Nov 6, 2015 @ 12:33 pm

By Laura Sanicola

Sen. Elizabeth Warren, D-Mass., introduced a bill Thursday to give all recipients of Social Security a one-time payment in 2016 to offset no cost of living adjustment. It would be funded by eliminating the CEO performance pay tax break that allows corporations to write off executive bonuses as a business expense for "performance pay."

The Seniors and Veterans Emergency Benefits Act (SAVE Benefits Act) would give about 70 million Social Security recipients an extra payment of $581, equal to the 3.9% raise CEOs of the top 350 firms receive, according to the release.

"If we do nothing, on January 1st, more than 70 million seniors, veterans and other Americans won't get an extra dime in much-needed Social Security and other benefits,” Ms. Warren said in a statement. “And while Congress sits on its hands and pretends that there's nothing we can do, taxpayers will keep right on subsidizing billions of dollars' worth of bonuses for highly paid CEOs.”

The legislation, cosponsored by 15 Democratic and one Independent senators, comes on the heels of an October announcement from the government that senior citizens could expect no COLA next year.

Richard Fiesta, executive director for the Retirement Alliance, announced his support of the new proposed legislation.

“Passage of this bill would help bring our economy into balance and make an important statement about fairness,” he said in a statement. “Congress should also require the Social Security Administration to base future COLAs on the Consumer Price Index for the Elderly (CPI-E), which much more accurately reflects the cost of things retirees purchase, including health care and housing.”

Boosting benefits to seniors may sounds like a popular move, but Kristine McKinley, owner of Beacon Financial Advisors, heard surprising backlash when sharing the news on social media.

“The typical response was disbelief that it was going to happen or a feeling that it would be subject to tax, so why bother,” she said. “It was not the response I expected.”

0
Comments

What do you think?

View comments

Recommended for you

We are about to enter the next chapter for exchange-traded funds. What do investors expect? What do advisers wants? Jillian DelSignore of JPMorgan Asset Management offers her perspective.

Recommended Video

Channels

Latest news & opinion

Funds that missed the January rally some by a little and some by a lot

Here are 10 funds that whiffed when at bat against the S&P 500 index, and why they struck out.

Treasury market pummeled in its worst January since 2009

'Melt-up' of yields pushes 10-year to 2.74%, its highest level since 2014

These funds have gained more than 10% in just a month

And not all of the funds did it with tech stocks

As Finra elder-abuse rule takes effect, advisers will face awkward conversations

Regulation taking effect Monday requires reasonable effort to find trusted contact, allows brokers to stop fund disbursement.

As Trump prepares for State of the Union, 50% of advisers approve of his job performance

Percentage is 10.3 points higher than the general population approval rating.

X

Hi! Glad you're here and we hope you like all the great work we do here at arjuna-design. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting arjuna-design.com? It'll help us continue to serve you.

Yes, show me how to whitelist arjuna-design.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Last News

vanguard california intermediate term tax exempt rookie cards worth money lowest performing mutual fund for the past 10 years ria payroll guide rollover simple ira to 401k vanguard retirement 2040 drawing social security from ex spouse funny retirement speech jokes strengthsfinder personality test t rowe price new horizon fund what does eafe stand for in finance oakmark eq & inc i ids life insurance company minneapolis mn what is the value of a 1943 steel penny wells fargo fined for money laundering who does fidelity investments clear through top no load mutual funds morningstar vanguard total bond market index fund institutional shares what is a deferred income annuity american century small cap value fund are social security disability benefits taxed columbia select large cap growth fund boiler room full movie free download pimco emerging market bond fund largest mutual fund families high yield default rate h and r block filing fees lpl financial advisors reviews generation x versus millennials etf expense ratio comparison are term life insurance proceeds taxable fidelity floating rate high income fund hr block tax preparation fees templeton international stock trust