A recent report showed that the Social Security program can pay full benefits through 2034 but will then face significant funding challenges. President Biden addressed this concern in his proposed 2025 federal budget which aims to avoid a disruption in benefits as well as providing greater stability for retirees.
Social Security Commissioner Martin O’Malley voiced his support of President Biden’s initiatives through a press release last month. He pinpointed several key areas where the proposed budget will aid the American people and, in his words, “promote greater prosperity for decades to come.”
Protect Social Security Benefits
Commissioner O’Malley first noted which proposals the Biden administration does not support in the budget – namely, cutting Social Security benefits or privatizing the Social Security system. Instead, the goal of the president’s budget is to protect the benefits that Americans have earned and ensure the current system is sound.
In order to protect Social Security benefits, the proposed budget requires high earners to pay their “fair share.” How much Social Security tax could increase and for whom remains unclear, but the president’s office said, “middle-class and lower-income Americans pay Social Security taxes on all of their earnings, but higher-income Americans do not. That’s not fair.”
If the budget is approved, additional taxes from high earners could help to prevent funding issues in the coming years. This offers a welcome reprieve for workers who are concerned that Social Security may not be there for them when they reach retirement.
Improve Service and Accessibility
In addition to protecting Social Security benefits, the proposed budget seeks to improve customer service for current and future beneficiaries. To do this, the budget allocates an additional $1.3 billion in discretionary funding – a 9% increase from 2023.
Commissioner O’Malley plans to use this funding to reduce wait times, improve service at Social Security field offices, and enhance teleservice centers. These improvements will help retirees, individuals with disabilities, and other Social Security beneficiaries get the information they need more quickly with less effort.
The increase in discretionary funding will also help the Social Security Administration reach people that are most in need of service. Some groups Commissioner O’Malley plans to target are people in underserved communities with low income, limited English proficiency, mental and intellectual disabilities, and those facing homelessness.
Introduce Paid Family and Medical Leave
The proposed budget expands the scope of the Social Security Administration by giving the organization administrative control of a new family and medical leave program. Commissioner O’Malley notes that this program would address common issues that Americans face. Two of the most common issues are the fact that 73% of private sector workers do not have access to employer-paid family leave and one in five retirees leave the workforce early to care for a sick family member.
The program would provide partial wage replacement for workers to take time off for family and medical reasons. This includes up to 12 weeks paid leave to bond with a new child, care for an ill family member, heal from an illness, seek safety from domestic violence, and address circumstances surrounding a loved one’s military deployment. Additionally, the program would provide up to 3 days paid leave to grieve the loss of a loved one.
While not directly related to Social Security retirement benefits, the new family and medical leave program could greatly benefit workers prior to retirement. Along with improved funding and customer service for Social Security benefits, the new budget could improve financial stability for Americans at all stages of life.
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