U.S. Sens. Ron Wyden (D-OR), Sherrod Brown (D-OH), and Bill Cassidy (R-LA) introduced legislation to reform the Supplemental Security Income (SSI) program.
The SSI Savings Penalty Elimination Act would update SSI’s asset limits for the first time since the 1980s to ensure disabled and elderly Americans are able to prepare themselves for a financial emergency.
Currently, individuals receiving SSI benefits are limited to $2,000 in assets; for married couples it’s $3,000. The average current monthly benefit is $585 for individuals. The Savings Penalty Elimination Act would raise those caps, which have not been changed since 1984, to $10,000 for individuals and $20,000 for married couples. Further, they would be indexed to inflation moving forward.
“Supplemental Security Income’s woefully outdated income and asset rules make it virtually impossible for people with disabilities to work, to save, or to marry–bedrock goals for Americans from every walk of life,” Wyden, chair of the Senate Finance Committee, said. “With the support of large employers and community groups alike, I’m confident that this bipartisan approach is the right solution to bring SSI into the 21st century. As Chairman of the Senate Finance Committee, which oversees Social Security, I am committed to working on a bipartisan basis to move this bill forward.”
A study by JPMorgan Chase said the current asset and income limits on federal benefits for people with disabilities create barriers to labor force participation and accumulating savings. The study added that updating the asset limits for SSI would expand economic opportunity as well as mobility for people with disabilities.
“SSI’s arbitrary and outdated rules make no sense. The government shouldn’t punish seniors and Ohioans with disabilities who do the right thing and save money,” Brown said. “It’s long past time we end these out-of-date government restrictions and allow Americans on SSI to save for emergencies and for their futures without putting the benefits they rely on to live at risk.”
U.S. Sens. Susan Collins (R-ME), Bob Casey (D-PA), and James Lankford (R-OK) are cosponsors of the bill.
“Someone who is disabled should not have to choose between a better job and losing their safety net because of outdated rules,” Cassidy said. “This is an easy fix that encourages work, allows people to save, and lifts people out of poverty.”
A companion bill was introduced in the House by Reps. Brian Higgins (D-NY) and Brian Fitzpatrick (R-PA) will introduce companion legislation in the House.
The legislation has the support of more than 300 organizations, including AARP, JPMorgan Chase, the U.S. Chamber of Commerce, the National Association of Evangelicals, Microsoft, the Bipartisan Policy Center, The Arc of the United States, and Catholic Charities, among others.