H.R. 6424: Social Security Survivor Benefits Equity Act

This bill, known as the Social Security Survivor Benefits Equity Act, aims to amend the Social Security Act to update the lump sum death payment provided to beneficiaries after the death of a spouse or parent.

Key Provisions

• Increased Lump Sum Payment: The bill sets the initial amount of the lump sum death payment at $2,900, which is a fixed figure that will be adjusted for inflation in future years.
• Inflation Adjustment: For individuals who die after the calendar year 2025, the lump sum payment will be adjusted based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers. This means that the payment will be increased to keep pace with inflation, reflecting changes in the cost of living.
• Effective Date: The changes proposed in this bill will take effect on January 1, 2025. The new payment structure will apply only to deaths occurring on or after this date.

Purpose of the Bill

The primary purpose of this legislation is to ensure that the lump sum death benefits provided under Social Security are sufficient to meet the economic needs of beneficiaries over time. By indexing the payment to inflation, the bill intends to help maintain the purchasing power of these benefits as the cost of living increases.

Administrative Changes

The bill does not suggest any fundamental changes to how the Social Security Administration operates, but it does require adjustments to the amount distributed in the event of a beneficiary’s death, thus impacting the administrative processes associated with calculating and issuing lump sum payments.

Target Beneficiaries

This legislation primarily benefits survivors of insured individuals under the Social Security program. This includes widows, widowers, and children dependent on these payments upon the death of a family member.

Impact Analysis

The adjustment of the lump sum payment to $2,900 and the subsequent inflation indexing serves to potentially enhance financial support for grieving families, allowing them to better manage immediate expenses following the death of a loved one.

Relevant Companies

None found