Social Security Survivor Benefits Equity Act
Summary
H.R. 6424, the Social Security Survivor Benefits Equity Act, aims to amend Title II of the Social Security Act. The primary goal is to update the Social Security lump sum death payment and index it to inflation. This adjustment seeks to provide more substantial financial assistance to survivors upon the death of an insured individual.
Expected Effects
The bill will increase the lump sum death payment to $2,900, starting January 1, 2025. It will also implement an annual adjustment based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to maintain its real value over time. This change will directly impact those eligible for survivor benefits under the Social Security program.
Potential Benefits
- Increased financial support for survivors to cover immediate expenses.
- Inflation indexing ensures the payment's value doesn't erode over time.
- Provides greater financial security for families during a difficult period.
- Simplifies the calculation and disbursement of death benefits.
- Addresses the long-standing issue of the fixed death benefit amount.
Most Benefited Areas:
Potential Disadvantages
- The increase might not be sufficient to cover all expenses related to death for some families.
- The CPI-W may not accurately reflect the actual cost increases faced by survivors.
- Potential strain on the Social Security system's finances, although likely minimal.
- May create a need for further adjustments in the future to keep pace with rising costs.
- Could lead to debates about the adequacy of Social Security benefits in general.
Constitutional Alignment
The bill aligns with the Constitution's general welfare clause (Preamble). Congress has the power to legislate on matters related to Social Security under Article I, Section 8, which grants the power to collect taxes and provide for the general welfare of the United States. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).