Supplemental Security Income Restoration Act

Many people have criticized the Social Security program for its archaic legislation and its failure to provide a substantial living for the elderly and disabled citizens of America. This year, Congress has decided to make the necessary reforms to the program by introducing the Supplemental Security Income Restoration Act. The reforms introduced in this act will assist in modernizing the Supplemental Security Income (SSI) program and bringing the appropriate financial assistance to the disabled and elderly.

Today, the SSI program is responsible for providing suitable income assistance to an estimated eight million elderly and disabled Americans with limited resources and low incomes. Instead of living up to its sole purpose, which was to ensure that no American lives in poverty, the program has failed to make an impact for the very citizens it was designed to help. If the SSI Restoration Act were passed into legislation, many of its reforms would help revitalize the program.

What are the proposed updates to the program?

One of the updates included in the SSI Restoration Act is an increase in the SSI’s monthly benefits. The current monthly benefit is $794 a month. The increase in monthly benefits would be raised to 100% of the federal poverty level and have the benefits indexed to inflation. Another update includes an increase in individual’s and couples’ assets. Instead of the current limit of $2,000 for individuals and $3,000 for couples, the amount of assets would be updated to $10,000 for individuals and $20,000 for couples.

Rule reform from the Social Security Administration

In addition to the increase in income requirements, many of the SSI’s income rules will see a necessary upgrade. There have been no amendments to the income rules of the SSI since its creation in 1972. That means that while the cost of living has increased, the SSI has been upholding the same rule requirements for over four decades. Fortunately, the new reforms will encourage the disabled and the elderly to earn additional money if they desire, instead of penalizing them for doing so.

Should the Restoration Act be passed, disabled and elderly recipients of SSI will be able to earn up to $399 a month from employment, and an additional $123 a month in assistance from other sources. Disabled and elderly citizens would be allowed to accept assistance from additional sources such as Social Security, veterans’ benefits, and pension payments without worrying about the fear of a reduction in benefits.

What are the benefits of reform?

If the SSI Restoration Act is enacted, it could help keep the millions of disabled and elderly citizens who receive SSI benefits from falling below the poverty line. One advantage that this Act can provide to many SSI recipients is simplifying the SSI claim process.

Currently, there are regulations that discourage SSI recipients from earning additional income. To qualify for SSI benefits, individuals cannot receive additional income that exceeds the current limit of $794 a month ($1,191 for couples).  Although these limits are well below the poverty level, if an individual earns more than that limit, they are ineligible to receive SSI benefits.

If the Act is passed, however, individuals who earn additional money will not be penalized for doing so. The increase in income limits will also be beneficial for many SSI recipients, who still need financial assistance after receiving benefits. Again, the income requirements are the same requirements from 1972. Individuals living in 2021 are trying to survive with the financial benefits of 1972, which is difficult, if not impossible. The last benefit that the Act will provide is the elimination of these limits. Individuals who are employed, operate businesses, were previous veterans, or receive pensions should not be punished for earning additional income or suffer a reduction in benefits.

It is more than safe to say that the cost of living has increased over four decades ago. When your cost of living has increased, but your wages have remained the same for the past four decades, you are likely facing a problem. The same logic should be applied to the Social Security Program, which is in need of serious reform in terms of its income and rule requirements. Individuals who are fortunate enough to qualify for benefits still find themselves living below the poverty line. If the SSI Restoration Act is passed, however, it could provide the Social Security Program and its recipients with the updated reform it desperately needs.

If you have questions about Social Security Disability or the proposed updates to the SSI program, contact the experienced Maryland attorneys at Plaxen Adler Muncy, PA. Call our office at 410-730-7737, or complete a contact form to schedule a consultation at one of our multiple offices throughout the state.