New Social Security Bill Will Change COLA Formula, Eliminate WEP

‘It improves the annual cost-of-living adjustment (COLA) formula to better reflect the costs incurred by seniors through adopting a CPI-E formula’
State Social Security tax
Image credit: © Kim Reinick | Dreamstime.com

[Editor’s note: The bill’s introduction and press conference is delayed due to scheduling conflicts, according to the Congressman’s office.]

The recent Social Security COLA announcement served as a backdrop for the introduction of a new bill to permanently adjust the cost-of-living formula, repeal the controversial Windfall Elimination Provision (WEP) and provide a benefit bump for current and new beneficiaries.

Congressman John Larson

Congressman John B. Larson, D-Conn., said he will introduce Social Security 2100: A Sacred Trust this week on the heels of last week’s news that the Cost-of-Living Adjustment (COLA) will be 5.9% for 2022, the highest increase in 40 years.

“While this year’s Cost of Living Adjustment (COLA) is welcome news, it only further underscores the need for Congress to act on Social Security,” Larson said in a statement. “It has been more than 50 years since Congress has improved Social Security benefits. Seniors are suffering—five million are living below the poverty line—current Social Security benefits are not enough!”

Larson claimed Congress has failed seniors, the situation needs to change and the “time is now to enhance Social Security.”

According to the bill’s fact sheet, there are several significant—and some controversial—provisions:

Benefit bump for current and new beneficiaries

It provides an increase for all beneficiaries that is equivalent to about 2% of the average benefit. “The US faces a retirement crisis and a modest boost in benefits strengthens the one leg of the retirement system that is universal and the most reliable,” it notes.

Protection against inflation

It improves the annual cost-of-living adjustment (COLA) formula to better reflect the costs incurred by seniors through adopting a CPI-E formula. “This provision will help seniors who spend a greater portion of their income on health care and other necessities. Improved inflation protection will especially help older retirees and widows who are more likely to rely on Social Security benefits as they age.”

Protects low-income workers

“No one who paid into the system over a lifetime should retire into poverty,” Larson said, and therefore the new minimum benefit will be set at 25% above the poverty line and would be tied to wage levels to ensure that the minimum benefit does not fall behind.

Improved benefits for widows

And also, widowers in two-income households.

Repeals the Windfall Elimination Provision (WEP)

One of the more controversial provisions will eliminate WEP and the Government Pension Offset (GPO).

Ends the Waiting Period

The five-month wait will no longer apply to receive disability benefits.

Provides caregiver credits

It will ensure that “caregivers are not penalized in retirement for taking time out of the workforce to care for children or other dependents.”

Student benefits

Extends benefits for students through age 22.

Increases access

It will increase access to benefits for children who live with grandparents or other relatives.

John Sullivan
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With more than 20 years serving financial markets, John Sullivan is the former editor-in-chief of Investment Advisor magazine and retirement editor of ThinkAdvisor.com. Sullivan is also the former editor of Boomer Market Advisor and Bank Advisor magazines, and has a background in the insurance and investment industries in addition to his journalism roots.

65 comments
  1. The solution. Privatize Social Security(SS)! The US gov’t could go into debt to deposit the $ taken into a private IRA type account. Everyone is privatized going forward and mandatory deposits made to the privatized account. This would end poverty in one generation. Unfortunately, Every Politician is disingenuous about narrowing the wealth gap. People remain in poverty for generations, but if SS was required, but privatized, then someone earning $15 an hour for their entire working life, putting the same 7.65% in SS, matched by the employer 7.65% and earning 7% invested in the markets would accumulate $1.35mm by retirement age. They could draw 4% or $52k a yr and never touch principal, and leave their children over $1.35mm. Two people working leaves their family $2.7mm and would have drawn over $100k a yr in retirement. No more poverty, income inequality or lack of opportunity in just one generation. Now that is something that would be worth incurring a temporary deficit for.

  2. Shouldn’t we be assuring that the current benefits are funded before adding more liabilities?

    1. Social Security needs to increase benefits. I make $ 15576.00, below poverty level, I worked over 35 yrs, had to retire early due to Covid and they taxed me $1500.00 last year for making $18000.00. We NEED HELP. 5.9% is not even enough when you look at how high food and medical is increasing. Seniors made california what it is, now repay us correctly. FIX Social Security, you know you can pay more to seniors DO IT! The trouble is the people making the laws make TOO MUCH MONEY and don’t really care about seniors, medical or the ridiculous property tax, You can take the knife out now Seniors have suffered enough.

      1. I completely agree with you. The ones making the laws have never been in the situation of having to decide if you pay for food or gas. If you’ve ever noticed ss is going to run out of money but you never hear welfare is running out.

  3. Sadly, Republicans will kill the bill. Republicans basically would like to see social security go away. And democrats do just enough to keep it on life support.

    1. Seriously, it’s not just 1 party. Congress under Obama took money from Social Security, to pay for ACA. They literally robbed from a program to pay for what they were supposed to pay back.

  4. This is long overdue. Let’s eliminate property taxes for seniors. We need a break to allow us to remain in our homes.

    1. Amen! Part of my property taxes includes school taxes! Almost 600. Alone this year. I pay more school taxes then I paid when my child was in school. I’m 62. Seniors in their 80’s are also paying! That’s not right! We’ve raised our kids!!! Thanks

  5. WEP and GPO protect the American taxpayers from pension double dipping. Everyone should pay FICA.

    1. I paid into FICA over 25 years then employed by state . Didn’t know about WEP when I was hired (learned later) but whether one works 1 year or 30 years, WEP comes into play. If I had FICA 30 years adequate contribution, it would not have applied. Instead my Social Security was reduced by 24%-a significant penalty for a minimal number of years worked

    2. Hey. No such thinhg of double dipping. I worked full time with my own painting business while I also spent 41 years as Phila. Firefirefighter. I paid SS on my paintimg business. But because I collect my fully earned FF Pension, I am called a double dipper. My Ass. That wss my money paid into SS. But now i lose 66% for the FF pension?? No way will that ever be fair!

    3. Not double dipping….SSI is federal…state pension is State…2 different buckets! I’ve paid into SSI for more than 12 years before I got my job at a state agency who didn’t pay into SSI.
      So where is my money that I paid into for 12 years ?
      Worse is the GPO…i will not get spousal benefits if my wife passes because of the GPO.so where does her money that she paid into for over 45 years go to?

  6. Yes it is great that improvements are being made to the Social Security System and pay, but you do know that every time we receive a Social Security pay raise we do not see it because it goes to Medicare for the Medicare part B payment that comes out of our Social Security pay. Every time we receive a pay raise the Medicare part B payment increases too and it takes our pay raise.

    1. Ella Pullen 10/21/2021
      So are they serious about increasing Social Security,are just trying to pacifier us? I am just saying. We will also welcome a Long Star card, cost of food is also unbearable.
      Thank you

  7. Why aren’t we addressing the coming SS benefits shortfall before adding more benefits? We are going to have to cut benefits in a few years if we (Congress) doesn’t change how SS is funded, or change ages when benefits can be collected.

  8. If WEP & GPO are eliminated what happens to all it applied to previously, do they get back and future benefits when WEP & GPO are gone?

  9. We was just hearing that social security is dried up. Now this. Here’s an idea stop giving out this eic to these low income workers! They never earned it! Our parents never got it. Our country encourages people to stay down.

  10. Please repeal WEP. It is incredibly unfair. People who have EARNED benefits are denied their benefit or it is drastically reduced.

    1. Yes absolutely. I am denied $1200 of SS benefits per month because I have a partial teacher pension. For half of my teaching career, I taught in private schools and paid social security. It is theft by the government.

      1. Please stop WEP. I’m a divorced woman. I have enough credits to get social security, but with WEP and medicare my benefits will be next to nothing. I’m waiting until I’m 70, but I would only get $400 after the WEP deduction, We had our own business for 10 years and my ex claimed all the income. I worked for law enforcement for 15 years and barely get by with the pension from that. I also stayed home for five years and raised our sons. It’s not fair, we worked and earned the money and you took the social security out why can’t we get our full benefits?????????????

  11. I am turning 65 in November. Was laid off from my MASSACHUSETTS STATE POSITION @ MASSDOT because Tolls were removed…leaving me w a pension of 33% but I will only receive partial Social Security because of WEP, YET I worked from 33 yrs prior contributing to Social Security …I can’t understand this if I paid into my 40 quarters in 35 yrs…what other options do I have & is Congress CONTINUING to eliminate the WEP? IVE READ THAT SEVERAL STATES IN USA R EXEMPT FROM WEP???

  12. Until food costs are included in the calculation of COLA, the increases will never be relevant to the facts of increased costs for all Americans. The 5.9% increase, does not include the cost of foods and other sundries that seniors must endure. This is a start, but still not good enough…..

  13. This would be a real blessing if it could be made to happen and would strengthen the faith in the democratic party tremendously

    1. This Democratic Party are you kidding! They are the major reason we have this high inflation now.

  14. I am very happy to hear that Congressman John B. Larson, (D-CONN) wil be introducing a bill that will repeal the Windfall Elimination Provision (WEP) and Government Pension Offset (GPO). I am a Federal Government retiree with 32 years of federal service. I am currently caught up in the WEP and GPO provisions as I have been denied the widows benefit. The WEP and GPO are two provisions that are very complicated to understand. The Social Security Administration (SSA) does not explain the WEP and GPO in layman’s terms so that the applicant who applies for benefits can see and understand how both the WEP and GPO formulas has been applied to explain SSA’s decisions. The SSAs, a retired federal government worker, none of this information pertaining to (WEP) and (GPO) was ever introduced in the retirement training for federal workers. It took me by surprise when I applied for the widows benefit and I did not have any idea of WEP or GPO. The SSA needs to be more transparent in explaining how both the WEP and GPO has been applied in the denial of benefits. When I received my Notice of Award Letter from SSA, I was just told that I was denied the widows benefit. No clear or understandable explanation of how the WEP and GPO has been applied to explaining the SSA’s decision. Thank you for this article because it has very important information for me. This article has given me the name of the Congress member who is working on this new bill and I plan to write to the Congress member with my concerns

    1. I so agree
      This would be a big help to us . The WEB needs to go! We have been to Manny mass retirement meetings and all they say is its being worked on.
      Please call your congress representative

  15. I WOULD LIKE TO SEE THE 10 YR MARRIAGE RULE TO BE LOWERED TO 8 OR 9..! BECUZE I LIKED 23 DAYS BEING 10 YRS MARRIED.! BUT WHEN YR HUSBAN BEATS YOU YOU HAVE TO LEAVE.I COULD BE DRAWING 1600 OFF HIM IF WASNT FOR THE 10 YR RULE.I WAS 28 HAD A NEW BORN BUT HAD TO LEAVE BECUZ OF HIS ANGER ISSUSE…PLEASE KNOCKED THAT RULE DOWN TO 8 OR 9 YRS OFHAVE TO BE MARRIED TO HIM…IM 67 NOW AN ONLY DRAW 538 SSDI…PLEASE DO SOMTHING BOUT THAT RULE. TY BETTYBLACKBURN15@GMAIL.COM

  16. The bill sounds really great ! If the IOU’s to Soc. Sec. Were paid Back there would never be a Short Fall to anyone Paying into it.. Stop all the Giveaways to Illegals and that money would be well SPENT for Retirees Needs !!!

  17. This sounds good but need Nancy P. to put funds back in SSI that she took to pay the 2 Impeachments that she lost against Trump.

  18. So how will this be paid for? Google Democrat tons of ways to spend more money but nothing that I’ve read so far tells me how we’re going to put more money into a s s

  19. First we need to find a way to fund social security and Medicare for the future. The young people need to know that this will be there for them. The bill sounds good what he is proposing but without the the funding first it can not be done. Insurance prices is killing are seniors.literally people are staying home to die because they can not afford to live.

  20. It’s about time someone in Congress speak up for seniors in social security benefits especially the widow claim .As a retire federal worker of 40 years my late wife work 30 years working for the STATE of Alabama and she was paying into SOCIAL security every two weeks for part of her retirement ,when unfortunately pass away I was told because of the GOVERNMENT OFFSET LAW,I was not eligible to receive her social security benefits as her husband and file for widower claim because the Government OFFSET LAW take two-third of my pension and if that amount equal more than what I would receive from my wife social security benefits I receive NOTHING $0.00,and after I pass away the government keep what my wife WORK for her family for 30 years .Senator Larsen of CONNECTICUT purpose bill will help many WORKING CLASS Americans especially the seniors citizens. My wife pass away in 2004 since then I been calling Democrats and Republicans representatives asking for their support for this bill similar to one Senator Larsen purpose the SOCIAL SECURITY FAIRNESS ACT,we are not asking for TAXPAYERS money but the money they WORK for in my case my wife work 30 years,this bill been setting there for years now.It time to pass it.

  21. Thank you, Congressman Larson, for introducing this long awaited and vitally necessary legislation. I pray to God that it passes with flying colors!
    It has the potential to alleviate much suffering of widows,seniors, parents, the disabled and the poor. I could never understand how the FUTURE COLA was based on LAST years prices. Makes no sense!
    Here in Florida, prices have jumped 30 to 50 %…not 5 or 10%, as has been reported. We, the People , need some real relief from the covid fallout and ongoing repercussions. All those who would benefit from this bill should support and promote it

    1. OVER DUE WIDOWS SURVIVORS ARE SUFFERING DUE TO GPO WINDFALL ELIMINATION PROVISION AND WEP . STOP THE STEALING AND HELP US LIVE . STOP TAKING THE SURVIVORS WIDOWS PAID FROM SPOUSE EARN S
      SSA PAID IN FULL 2/3 OUT ON WIDOWS SURVIVORS LOL FOR YOU ALL WHO LET THIS HAPPEN TO US , YOUR TIME WILL COME , BLESSING TO ALL WIDOWS SURVIVORS DONT GIVE UP THE LORD WILL BE OUR DEFENDER LIKE IT SAID IN THE BIBLE . KEEP YOURS EYES ON THE LORD . THANK YOU ALL WHO ARE FIGHTING FOR US . 🙏👵🏻

  22. People on Social Security need increase, more than 5,000000 are living in poverty. Lower the Medicare cost and fix medicare so people will not need the ripp off from supplement insurance.

  23. This would be great! If Congress would QUIT RAIDING SS, & PAY BACK what’s been taken there would be more than enough money for future retirees. I worked 40+years for my benefits. I’m a widow & I don’t understand why I couldn’t receive my husbands SS benefits when he passed! Why should the government get his benefits? I hope this passes, but I doubt the CROOKS in Congress will pass it!

  24. Its about time someone took the bull by the horns and revamped the entire system. Retirees work so hard to get to retirement only to have to decide on heat, medicine or food. Taking care of our elderly & truly disabled should be this countries priority. We take care of single parents & immigrants but our poverty stricken seniors struggle to live at a time they should be enjoying life. People complain about the system but when uts their turn to retire they suddenly see the light. Not everyone can work a job that has good retirement plans. We depend on our blue collar workers for EVERY ASPECT of our daily life but we don’t want to give them a hand up when they retire or get a crippling illness? Whats wrong with this picture? Help our seniors, help our ill & in turn help outselves by giving blue collar workers a reason to be and a secure future retirement.

    1. Love it right on help poor seniors who went to work all there lives THIS IS BULL GPO WINDFALL ELIMINATION PROVISION AND WEP JUST JUST STOP THE STEALING GIVE US WIDOWS AND SURVIVORS ALREADY EARN INCOME FROM OUR SPOUSE . LEAVING US SOOOOOOOOO POOR .

  25. I’m all for to end the WEP . When i filed for Social Security I was told due to the WEP my social security
    Will be cut in half. Instead of drawing full benefits. I feel this isn’t fair. I paid into Social Security and should draw fully what I am owed. Repeal the WEP has my vote.

  26. If we can feed, house, give free medical care & give income & education & who knows what else the Dems are giving the illegals, the Gov should be able to find a way to fund services for our senior citizens. We have people who have to choose between medications for serious illnesses, food, housing & utilities. I WANT THE GOVERNMENT TO EXPLAIN TO ME WHY THESE ILLEGALS ARE MORE IMPORTANT THAN OUR SENIORS?

    1. The first bill that Larson created, included, changing the total income limits from 25.000 single , and 34.000 for couples. You have to take half of you total benefit, and add to what you make while working. If you go over you pay taxes on. You benefit.. this has not been changed since 1983, when people made an average of $3.35 an hour, and Social Security checks were a lot less! 25 thousand for a single person was a lot of money. That was almost 40 years ago.. Larson wrote aBill called Social Security act 2100. It raises the limits to 50,000 for a single person and 100,000 for a couple to make it comparable to today’s income. They raise that limit that you can make each year, but they don’t tell People that they have to include half of their Social Security benefit. If they keep increasing that each year we will not be able to work it out without paying taxes on our Social Security. I for one don’t want handouts, I would rather work! Will still be paying Social Security taxes, but they won’t be double dipping. A lot of people don’t work part time after retirement because of this. It’s time it was changed. Please look at the bill from 1983 that was meant to change Social Security. Thanks

  27. Where is all this money coming from when you talk about soc. Sec. Going dry by the next ten years!

  28. Looks like typical democrat delusional thinking. The system is terribly underfunded and all this is new costs without a revenue source. Bernie has you all thinking that money grows on trees. A little common sense would say we should shore up the program before we add more costs.

  29. They are saying that 5.9% will give most a $98 increase. That will give me $60 adore a month. Whoopi. Anything helps. Only I know a few that will get way less than that. Do they realize that a lot of SS recipients started jobs at less than a $1 an hour. I started at 1.50 an hour. Does add up over years of working. And a lot could not afford to have a retirement plan. So inflation is killing people. Not only covid. Stress plays a big part in life and health. So while you are out there during the holidays. I’m talking big wheels in Washington and all millionaires. Others will be at food banks. Who are running low. They appreciate what they get. Even though a lot are expired food. Think of that next time you order a steak or lobster and fill your guts.

  30. Does this mean this bill will allow those under Sep to have their social security refugees to all those who have 40 quarters into social security even if they worked for a time in a municipal position? Those of us who paid into social security for years were penalized because we worked for a municipality and had our social security cut just about in half. That is not right. All the trillions of dollars being bargained in Congress, certainly it is time to fix social security which will affect all who work.

  31. But being born in 1960, the Cola of 5.9% will not be applied as the Cola is only applied to SS after you turn 62. AWI is supposed to take care of any wage inflation until calculated at Age 60. Thats two years of inflation ravaged against you. So being born in 1960 just cost 5.9% of my total benefit plus the compounded amount of subsequent Colas ..This unfair situation just effectively reduces my annual Social security $1300 year..How is this fair??

  32. I’m wondering about all the money the government gets from people in my situation. Due to “a government offset” my small SS, of $500 something, earned before working for the government, was reduced to $241 per month.
    I fail to understand how the government can take SS I earned before working for the government.

  33. Getting only 509 a month doesn’t work for me. Not going to get the 98 extra because I am not the average recipient of SS. Someone needs to help us Seniors.

  34. I tried to read all of the comments, but eyes are bad. Anyway I don’t believe read anything about the raise affecting our rent for those who live in subsidized housing. Every time we got an increase in January we had to reevaluated and rent went up. I appreciate what they are trying to do with COLA but I also see where it hurts some of us. Especially those of us who are paying for their Medicare.

  35. Stop giving money to ex-wife’s. They are ex’s for a reason. Yes that money comes from what SSA told me. They only get if they were married for 10 years or more. That money could go to the seniors who could you it more then ex-wife’s. Yes they only get a percentage but still that is money that someone else can use.

  36. I hope that they pay retro for those of us that had to wait 5 months for SSDI. Mine was actually 6 months! I had to pay my bills and mortgage with no income during that period.

  37. They also need to work on the tax thresholds set almost 40 years ago! My parents have already surpassed the amount my dad built in his retirement for inflation in less than 6 years. His & my mom’s meds are $20,000/yr just for 1 of the meds each in copays & he has to pay taxes on their SS as well. His taxes on his house are outrageous since he needs to repair so much inside & they used to be middle class income now it is low income or very low middle class because of these things. Also, I am on SSDI & L&I from being shot @ my workplace and they limit how much you can get when you get both. It’s ridiculous as that COLA increase isn’t even going to cover the $189/rent increase much less the increase in food, gas, electric, w/s/g, medical , etc.. plus most of not all will be taken in Medicare premiums so won’t even put a dent in all the increases. Plus I was penalized when I applied for disability. My widow’s SS check I was using to help support my disabled son was taken away when I applied for my disability benefits. So I ended up in the hole when all was said & done.

  38. I think they should pass it if you retire at 62 you should get Medicaid and why not give seniors what they are giving on child care

  39. I paid into SSI for 15 years
    My wife paid into SSI 40 years.
    SSI IS A FEDERAL agency
    I paid into my pension for 35 years..
    My Pension is from a STATE agency
    It is not double dipping! Two different agencies!!
    Where is all my money from the contributions to SSI?
    And more importantly where is all the money my wife paid into SSI for 40 years??
    If she passes I do not get a nickel.
    Repeal these very unfair penalties!!!

  40. Congress for years have been saying they are introducing legislation to repeal or eliminate WEP and GPO but nothing changes. The hard working guy in this country is a sucker. You work 2 jobs and pay into the system only to learn later that you are unfairly penalized. The government has money for all kinds of programs but penalized the hard workers who contributed and paid into the system. I hope WEP and GPO will be repealed or eliminated before i die.

  41. Wep is unfair an needs to be repel . It has cause great hardship and uncertainty in my financial situation. Please get rid of it . Thank you

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