Here we go…
A group of bipartisan senators are discussing raising the retirement age on Social Security to about 70.
According to Semafor, the group of senators led by Angus King (I-ME) and Bill Cassidy (R-LA) are considering raising the retirement age.
The Senators insisted there are no cuts for Americans currently receiving Social Security benefits.
“This is an example of two leaders trying to find a solution to a clear and foreseeable danger,” Cassidy and King spokespeople told Semafor in a statement. “Although the final framework is still taking shape, there are no cuts for Americans currently receiving Social Security benefits in our plan. Indeed, many will receive additional benefits.
A bipartisan group led by Sens. Angus King, I-Maine, and Bill Cassidy, R-La. is considering gradually raising the retirement age to about 70 as part of their legislation to overhaul Social Security, Semafor has learned from two people briefed on their efforts.
Other options on the table include changing the existing formula that calculates monthly benefits from one based on a worker’s average earnings over 35 years to a different formula that’s based instead on the number of years spent working and paying into Social Security.
The plan also includes a proposed sovereign wealth fund (as previously reported by Semafor) that could be seeded with $1.5 trillion or more in borrowed money to jumpstart stock investments, the people said. If it fails to generate an 8% return, both the maximum taxable income and the payroll tax rate would be increased to ensure Social Security stays on track to be solvent another 75 years.
In a brief interview Monday evening on Capitol Hill, Cassidy said he’d been meeting with stakeholders for the past two years on the proposal, but that its details were still in flux. “You could really take a fund and, with certain assumptions, take all your revenue from there,” he told Semafor.