Council of Seniors Model Legislation Will Deliver One-Time Restitution Payment to Social Security Beneficiaries
The “Social Security Restitution Act” would provide an estimated $970 payment to every retired worker receiving Social Security benefits, to help offset years of inadequate cost-of-living adjustments
WASHINGTON, D.C. — Council of Seniors, a national nonprofit organization dedicated to strengthening Social Security for retired Americans, today released model legislation — the Social Security Restitution Act.
The legislation responds to mounting concern among seniors that annual cost-of-living adjustments (COLAs) have failed to keep pace with the real-world expenses older Americans face, from healthcare and housing to groceries and utilities. The Social Security Restitution Act would direct the Commissioner of Social Security to issue a one-time restitution payment to every retired worker receiving retirement benefits under Title II of the Social Security Act.
“For years, seniors have watched their Social Security checks fail to stretch as far as they should, while the cost of everyday essentials keeps climbing,” said Barbara Godwin, Executive Director of Council of Seniors. “This legislation is a straightforward, targeted way to help make up for COLAs that didn’t reflect what retired Americans were actually paying to get by.”
How the Payment Would Work
Under the bill, the one-time payment would be calculated as 3.9 percent of the average annual Social Security benefit paid to retired workers, using the most recent data published by the Social Security Administration. Based on current figures, Council of Seniors estimates the payment would amount to approximately $970 per eligible beneficiary.
Importantly, the legislation specifies that the payment:
- Would be issued in addition to all existing monthly Social Security benefits;
- Would not reduce, offset, or otherwise affect any beneficiary’s monthly benefit amount; and
- Would not impact eligibility for any other federal benefit program.
The bill directs the Commissioner of Social Security to issue payments as soon as practicable after enactment, with no additional bureaucratic steps or application process required for eligible beneficiaries.
“Every retiree who paid into this system for decades deserves a Social Security benefit that reflects their real cost of living,” Godwin added. “We’re calling on Congress to stand up for the millions of seniors who have been shortchanged, and we’re ready to work with any member who wants to lead on this issue.”
About Council of Seniors
Council of Seniors is a nonprofit organization committed to protecting and strengthening Social Security for retired Americans. Through grassroots advocacy, public education, and policy development, the organization works to ensure that seniors receive the full benefits they earned over a lifetime of work. Learn more at councilofseniors.com