Social Security

It has been 70 years since the Social Security death benefit was adjusted.

Seventy years ago was 1954 and I wasn't even alive.

When the Social Security death benefit was last adjusted.

• The Chevy Bel Air was the most popular car in America
• The Senate censured Senator Joe McCarthy
• President Eisenhower was still in his first term.

It was in 1954 that

• the Dow Jones Average finally recovered to its pre-crash 1929 high
• the average cost of rent was $85 per month
• the hydrogen bomb was tested on Bikini Atoll
• I Love Lucy was the #1 TV show (but in black and white).

The Current Social Security Death Benefit is $255

The Social Security death benefit has remained stagnant at $255 for seven decades.

According to the National Funeral Directors Association, even a basic funeral and cremation service now exceeds $6,000, while traditional burial services cost over $8,000. This significant cost rise has rendered the death benefit practically irrelevant to funeral expenses.

The Proposed Social Security Survivor Benefits Equity Act

In response to these pressing concerns, Senator Peter Welch (D-VT) has introduced the Social Security Survivor Benefits Equity Act. Co-sponsored by Senators Bernie Sanders (I-VT) and Elizabeth Warren )D-MA), this bill proposes raising the lump sum death benefit to $2,900.

This new figure is designed to reflect today's living costs and inflation better.

Eligibility criteria would largely remain unchanged.

The payment would traditionally be received by the surviving spouse or, in their absence, dependent children of the deceased. Beneficiaries must apply for the lump sum within two years of the decedent's death.

Legislative Challenges and Prospects

Despite the bill's potential positive impact, its passage is uncertain.

Given broader debates on the program's solvency, legislative obstacles often kill bills to expand or adjust Social Security.

Nevertheless, proponents of the bill remain hopeful, arguing that after seven decades without significant adjustment, updating the benefit is necessary to reflect current economic realities.

Potential Outcomes if the Bill Passes

Should the bill pass, the increased lump sum death benefit of $2,900 would take effect in 2025. This amount, pegged to the Consumer Price Index for Urban Wage Earners and Clerical Workers, would ensure the benefit keeps pace with inflation.

If you want this bill to pass, call your Senators and Congressional Representatives.

Believe it or not, Senators and Members of Congress keep track of constituent calls and respond to them.

So, call your Senators and Congressional representatives.

Go to this website (https://www.house.gov/representatives/find-your-representative) and your representative's telephone number will be provided.

If you want to call Senator Scott's office, his number is 202-224-5274.

And Senator Rubio's office number is 202-224-3041.

Conclusion

The proposed Social Security death benefit increase represents a long-overdue adjustment to support grieving families. The existing $255 benefit is grossly inadequate for covering even minimal expenses, with funeral costs continually rising.

The Social Security Survivor Benefits Equity Act aims to adjust this benefit to reflect current economic conditions better, providing much-needed financial relief to distressed families.

But if we don't call our elected representatives, don't be surprised if the bill doesn't pass.