Two items in the decidedly mixed bag of Social Security proposals -

[pinto]

I expect there will be strong opposition / debate to any incremental encroachment on SS. As there should be. Hadn't seen these proposals mentioned, though. Both seem fairly positive. ~ pinto

Increase the Amount of the Special Minimum PIA

Current Law: The special minimum benefit applies to workers who have been employed many years at low earnings. This computation method is only used if it results in a higher payment than the benefit computed by any other method. The Primary Insurance Amount for a worker with 30 years of coverage as of December 2008 is $763.20.

Proposed Change: The Commission recommends adding a new special minimum benefit to keep full-career minimum wage workers above the poverty threshold by wage-indexing the minimum benefit. This benefit would be increased at implementation by setting the benefit level for 30 years of coverage at 125 percent of the poverty level (about $1,128 in 2009). From 2009 to 2017, the poverty level would be indexed by the chain-CPI. Thereafter, the benefit amount would be indexed for wage growth, so that the special minimum would keep up with the wage-indexed benefit formula. This provision would take full effect for all newly eligible workers in 2017.

(Represents an increase of $365 / month for minimum wage retirees.)

Mandatory Coverage of State and Local Employees

Current Law: Not all state and local government employees are currently covered by Social Security. Approximately 25 percent of State and local government employees are covered by alternative pension systems and are not provided Social Security coverage. States with more than half their employees not covered by Social Security include Ohio, Massachusetts, Louisiana, Nevada, Colorado, California, Alaska and Maine.

Proposed Change: The Commission recommends including newly hired state and local workers in Social Security after 2020. This would achieve more universal coverage under Social Security, requiring workers to pay FICA taxes, making them eligible to receive benefits.

(Represents an increase of FICA funding for Social Security, short term, with an increase in expenditures long term once the newly covered workers retire.)

http://www.ncpssm.org/news/archive/Analysis_of_Commission_Co_Chairs_Proposal/

(ed to include link)

[jtown1123]

1. State and local employees should be part of the system! They've wanted it for years.

[pinto]

2. Agree. I was a covered County employee, had a lot of friends State - no FICA, no coverage.

It'd be a plus, all around, imo.

:hi: