Increase the special minimum benefit
There has been a third Social Security reform proposed by the President, which involves increasing the special minimum benefit paid to all low-income workers for their lifetimes.
This year, the maximum payout for a low-income individual with only 30 years of coverage is $951 a month. Well, that’s more than $180 per month below the established federal poverty level for a single filer.
Under Biden’s plan, the minimum benefit would automatically rise to 125% of the federal poverty level. And for someone who was a low earner his or her entire career, this would mean a monthly payout boost of almost $500.
Boost the primary insurance amount for those who are older
The fourth and final adjustment is related to the primary insurance amount, or PIA, which has steadily increased over the years for older beneficiaries.
To be more specific, the PIA would increase by 1% yearly, from 78 through 82, up until a 5% cumulative increase was made.
The whole purpose of boosting the PIA was to account for better expenditures. As we get older, medical transportation costs and prescription drugs might cost more, and this might actually offset some of these expenses.
