We all agree that Social Security needs to be reformed to ensure long term solvency.  The question is how to do this (eg who pays). 

Some of the key proposals include:

• Eliminating State/ Federal Taxation of SSA: Several proposals are on the Hill right now to eliminate both state and federal taxation of Social Security.  Many retirees are surprised when they learn Social Security is taxed.  If the tax is eliminated, SSA will have to make up these funds from other places...
• Delaying Full Retirement Date:  Over the years the definition of 'full retirement date', the age when you are eligible for 100% of your benefit, has been delayed.  Currently age 67, one way for Social Security to increase solvency is to delay full retirement date.  This may be viewed unfavorably by soon to be retirees, particularly those in labor related jobs.
• Increasing Earnings Cap:  Another way to increase solvency is to increase the amount of workers salaries that is subject to Social Security tax.  Today earnings above $160,200 are not subject to the 6.2% (12.4% when including employer tax) but there are several proposals to increase the taxes on higher income earners.
• Modernizing Benefit Calculations: Current Social Security calculations discourage part time work in retirement.  They also provide inequitable outcomes when couples divorce and don't provide family caregivers with earnings credits.  

This week Reps. Angie Craig, D-Minn., and Yadira Caraveo, D-Colo., introduced new legislation called the You Earned It, You Keep It Act.  The Act proposes extending the Social Security lifeline by 20 years by increasing taxes on high earning workers and simultaneously removing the federal taxation of Social Security.

Why should credit unions care about Social Security?

99% of your members will enroll in Social Security and Medicare when they retire.  Social Security is your members largest retirement asset, their only source of lifetime and inflation protected income.  Its also a 25+ year direct deposit stream for the credit union.

What our data shows

Your female members are disadvantaged by these 1920s policies.  They have 20% lower Social Security benefits and 9 year lower retirement scores.. yet will live 5+ years longer than male partners.  If your female members age into poverty we have a multi-generational problem.