WASHINGTON – U.S. Senator Bill Cassidy, M.D. (R-LA) introduced the SSI Savings Penalty Elimination Act to reform the Supplemental Security Income (SSI) program, which has not been updated in nearly 40 years and currently punishes older and disabled Americans for saving for emergencies and their futures. Cassidy’s legislation would update SSI’s asset limits to ensure disabled and elderly Americans are able to prepare themselves for a financial emergency without putting the benefits they rely on to live at risk.
“Outdated rules are making disabled Americans pick between a better job and losing their safety net. That’s wrong,” said Dr. Cassidy. “Instead, let’s encourage work, help people save, and lift them out of poverty.”
Cassidy was joined by U.S. Senator Catherine Cortez Masto (D-NV) in introducing the legislation.
“A $2,000 rainy-day fund doesn’t go as far as it did in 1989, but that’s all the savings that people who rely on SSI benefits are allowed,” said Senator Cortez Masto. “We shouldn’t punish people who are working hard, saving their money, and planning for the future. Congress must raise the SSI asset limit to help our seniors and Americans with disabilities.”
Right now, individuals with a disability or those aged 65 and older are only eligible for Supplemental Security Income if they have under $2,000 in assets. SSI’s marriage penalty restricts married couples to a total of $3,000 in financial resources to remain eligible. A study by JPMorganChase suggests that current asset and income limits on federal benefits for people with disabilities make it harder for them to work a part-time job or save money for an emergency. TheSSI Savings Penalty Elimination Actwould raise the SSI asset limits to $10,000 for individuals and $20,000 for married couples, and index them to inflation moving forward. The last update to SSI asset limits was passed by Congress in 1984 and went into effect in 1989.
The SSI Savings Penalty Elimination Act is supported of more than 200 businesses, faith-based groups, and organizations dedicated to improving the lives of older adults and people with disabilities.
Cassidy and Cortez Masto were joined by U.S. Senators Susan Collins (R-ME), Maggie Hassan (D-NH), James Lankford (R-OK), Patty Murray (D-WA.), Lisa Murkowski (R-AK), Sheldon Whitehouse (D-RI), and Rick Scott (R-FL) in cosponsoring the legislation.
Companion legislation was introduced in the U.S. House of Representatives by U.S. Representatives Brian Fitzpatrick (R-PA-01) and Danny K. Davis (D-IL-07).
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