Lawmakers Introduce Bill to Create Commission to Address Social Security Insolvency

Representatives Tom Cole (R-OK) and Thomas Suozzi (D-NY) recently introduced the Bipartisan Social Security Commission Act, legislation that would establish a “Commission on Long Term Social Security Solvency” to examine the program’s financial challenges and provide recommendations for how lawmakers can address them.

As the Social Security Trustees warned in their latest report, the program’s retirement trust fund faces insolvency in 2032. By law, when insolvency arrives, there will be a 22% across-the-board cut in benefits, which would have devastating impacts on the average household on Social Security. We have previously estimated the impact of similar cuts, finding that a typical couple retiring in 2033 would see an $18,400 reduction in annual benefits. We also recently published a state-by-state analysis of the effect of a similar cut if it were imposed today.

The commission established by Cole and Suozzi’s legislation would create a 13-person panel, with the chair of the commission being appointed by the President. Eight additional commissioners would be evenly chosen by the leadership of both parties in the House and Senate, while four would be evenly chosen by the chairs and ranking members of the Senate Finance and House Ways & Means committees. Two of the individuals appointed by lawmakers would also need to be outside experts.

The bill would require the commission to submit a report on the financial health of Social Security over the next 75 years and provide recommendations for how Congress can address its finances. The report would need approval from at least nine members of the commission in order to be transmitted to Congress and would be fast-tracked for consideration.

Maya MacGuineas, president of the Committee for a Responsible Federal Budget, commended the bill’s introduction this Congress:

I applaud Reps. Cole and Suozzi for reintroducing the Social Security Commission Act. With Social Security reaching insolvency in just a few short years, and a 22% cut in benefits looming because of inaction, time is running out to address a critical program relied upon by 70 million Americans. A commission would be the first step in creating lasting bipartisan solutions.

As we have written before, commissions have been used successfully in the past and can help lawmakers address politically difficult issues. For example, in 1983, the Greenspan Commission helped President Reagan and lawmakers agree on a package that extended Social Security’s solvency by 50 years. In this Congress alone, numerous lawmakers have recognized the successful role that commissions can play, with the introduction of other commission legislation, like the Fiscal Commission Act in the House and Senate and the Sustainable Budget Act.

We applaud Cole and Suozzi for their leadership in introducing a bipartisan solution to address the solvency of Social Security. For more information on the program’s finances, see our paper on the Trustees’ latest report. Also, for more information on commissions, see our paper, FAQs blog, and our blog outlining the bipartisan support that exists for commissions.