For example, if lawmakers were not to make changes until 2035, maintaining a 75-year solvency would require a permanent increase of 3.65 percentage points to the payroll tax rate (a total of 16.05% split between worker and employer ) or a 23% reduction to all benefits starting that year.
Meanwhile, more than 200 lawmakers, all democrats, have signed the 2100 Social Security Law in Parliament. Introduced by Rep. John Larson, D-Connecticut, would gradually increase the payroll contribution of workers and their employers to 7.4% each in 2043 from the current 6.2% (to 14.8% down from 12.4%).
It would also require earnings above $ 400,000 to be subject to payroll tax. At present, earnings above a certain level ̵
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Among other changes, the annual service life adjustment for services rely on another formula that more accurately reflects the rising cost of older Americans.
The end result would be extended solvency for the program for 75 years, according to Social Security's Office of Chief Actuary.
Altman also said that despite the impending funding forces, retirees should not worry that their benefits will be reduced or eliminated. In fact, she said they should feel safe about the program.
"The whole cause of social security is calculated in 75 years is to give people a sense of security," Altman said. "Social security has never missed a payment, and I don't think it ever will."