Senator Elizabeth Warren introduced the Seniors and Veterans Emergency (SAVE) Benefits Act today. If passed, people receiving Social Security benefits, veterans and others would get $581 more in 2016. This one-time payment is equal to 3.9 percent of the average Social Security annual retirement benefit.
In 2016, older adults and people with disabilities are not receiving any increase in their Social Security benefits. The proposed additional payment is designed to match the 3.9 percent average CEO pay increase last year.
Senator Warren proposes to fund the one-time payment by ending the CEO performance pay tax break. That will cover the cost of this payment and help extend the life of the Social Security Trust Funds.
If Congress were to require the Social Security Administration to base Social Security cost of living increases on the Consumer Price Index for the Elderly, which far more accurately reflects increases to retirees’ costs, people receiving Social Security benefits would see an increase in 2016.