Social Security

Newsweek - A bipartisan group of senators has unveiled legislation designed to force Congress to address Social Security's approaching funding crisis.   The proposal, known as the Protecting Retirement Opportunities and Maintaining Income Security for Everyone (PROMISE) Act, would not immediately raise taxes, cut benefits or change eligibility rules. However, it would create a mechanism requiring lawmakers to vote on a plan to restore Social Security's long-term finances after years of political gridlock.

The legislation arrives as Social Security's retirement trust fund is projected to face a funding shortfall in 2032, one year earlier than previously forecast. At that point, beneficiaries would see an automatic benefit cut of roughly 20 percent if lawmakers don’t do anything.

…According to the latest trustees report, if lawmakers do nothing and the retirement trust fund becomes depleted in 2032, Social Security would still collect payroll taxes and continue paying benefits but would be able to pay only about 78 percent of scheduled benefits, resulting in an automatic reduction of 22 percent.