The resolution urges Congress to amend the Social Security index of earnings to protect retirees from benefit reductions caused by the pandemic-induced wage decline. It specifically recommends two potential methods: basing the average wage index on first quarter earnings for 2020 or utilizing the 2019 national average wage. By doing so, the resolution aims to mitigate potential losses that could vastly affect the retirement income of millions of Americans who rely on Social Security to meet their daily needs.
Summary
Senate Resolution No. 89, introduced by Senator Wilk, addresses significant concerns regarding the impact of the COVID-19 pandemic on the Social Security benefits of individuals turning 60 in 2020. The resolution highlights that due to unprecedented levels of unemployment stemming from the pandemic, many Americans will experience a decline in their aggregate wages. This decline is projected to adversely affect their Social Security earnings calculations, potentially leading to significantly lower benefits for these individuals compared to those who turned 60 in the previous year.
Contention
Notably, the resolution also highlights the importance of Social Security in lifting millions out of poverty, especially among vulnerable populations, including minorities and women. The concern is that if the technical glitch affecting benefit calculations is not resolved, it could result in approximately 4 million workers receiving lower benefits, which would exacerbate already existing disparities in income and financial security among retired individuals. This has sparked discussions on the fairness and sustainability of the Social Security system amid economic turbulence.