Social Security Survivor Benefits Equity Act
Summary
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 amount 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, if enacted, would increase the lump sum death payment to $2,900, replacing the existing formula. Furthermore, it would index this amount to the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) starting in 2026, ensuring that the payment keeps pace with inflation. This change would apply to individuals who die on or after January 1, 2026.
Potential Benefits
- Increased financial support for surviving family members upon the death of a loved one.
- The lump sum death payment will maintain its real value over time due to inflation indexing.
- Simplification of the calculation for the lump sum death payment.
- Provides greater financial certainty for beneficiaries.
Most Benefited Areas:
Potential Disadvantages
- The increased payments could place additional strain on the Social Security system's finances.
- The CPI-W may not accurately reflect the actual cost of living increases for all beneficiaries.
- Some may argue the increase is still insufficient to cover funeral or other related expenses.
Most Disadvantaged Areas:
Constitutional Alignment
The bill aligns with the Constitution's mandate to "promote the general Welfare" (Preamble). Congress has the power to legislate on matters related to Social Security under the Necessary and Proper Clause (Article I, Section 8). The bill does not appear to infringe upon 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).