Millions of beneficiaries of Social Security — particularly those who are recipients of the Supplemental Security Income (SSI) — could soon see a change in their benefits if the motion for the Eliminate the Marriage Penalty in SSI Act is passed. The Supplemental Security Income is a monthly benefit paid to qualifying adults, such as retirees or disabled individuals who have little to no other resources.
Here is what to know about the Eliminate the Marriage Penalty in SSI Act and how it will effect SSI beneficiaries.
How will the elimination of this act impact Social Security benefits?
Last month, Republican Representative David Valadao of California and Democratic Representative Susie Lee of Nevada reintroduced the Eliminate the Marriage Penalty in SSI Act with the hope of removing penalties of marriage that are meted out on SSI benefit amounts. It does appear that much of the impact of this motion will be concentrated to specific states that have a more SSI beneficiaries than others.
According to data updated as of January, there are more than 7 million Americans currently receiving SSI benefits every month. These payments are made to those with limited income who are aged 65 and above, as well as to those with disabilities. These SSI payments face a reduction if the beneficiary gets married since having another adult in your household will hold financial implications.
Alex Beene, a financial literacy instructor at the University of Tennessee at Martin, told Newsweek, “When it comes to states that benefit the most from changes to Supplemental Security Income, we see a mixture of highly populous states and locations popular with retirees. While the majority of SSI recipients are of working age, we have seen a higher number of individuals over the age of 65 qualify for the program in recent years.”
Which states will be the most impacted by the elimination of this act?
California, Texas, Florida, New York, and Pennsylvania are the states with the highest concentration of SSI beneficiaries, with California being the highest with over 986,000 citizens living reliant on SSI payments. Florida has around 538,000 SSI beneficiaries, New York has roughly 557,000 SSI recipients, Pennsylvania has around 323,000 SSI recipients, and Texas has some 573,000 SSI recipients.
As such, if the Eliminate the Marriage Penalty in SSI Act comes to pass, beneficiaries residing in these states will see the most substantial changes to their benefit amounts as a result of the vast amount of beneficiaries in these states. These states are also known to be more populous hence the higher concentration of SSI beneficiaries.
According to the current law, American SSI beneficiaries who claim benefits due to intellectual or developmental disabilities will have their monthly benefit reduced after marriage. As such, for a married couple where both spouses receive SSI benefits and have no other income, their respective SSI benefit amounts would face a 25% decrease than they would have received if they were merely living together but unmarried. For instance, if each beneficiary was receiving a check for $841 per month prior to marriage, their benefit amount would drop to $1,261 collectively after marriage.
Michael Ryan, a finance expert, told Newsweek, “California, Texas, New York, Florida, and Pennsylvania are going to feel this change the most—and, frankly, it’s about time.” California alone has nearly a million SSI recipients. When you consider that they also offer state supplements on top of federal payments, married couples there could see the greatest financial relief.”
As such, according to Ryan, many Americans have deduced that if they are reliant on SSI, they simply cannot afford get married.
“Can you imagine choosing between love and having enough money to eat? I remember one couple in particular—both had disabilities, both received SSI, and they’d been ‘engaged’ for 12 years because they couldn’t afford the $421 monthly penalty for saying I do,” Ryan stated.
“The change is long overdue, and it’s not just about money. It’s about dignity. It’s about not having the government essentially tax love and companionship for our most vulnerable citizens. People who can marry without penalty are healthier, happier and ultimately less dependent on other social services.”
If this bill manages to garner more bipartisan support and finds its way to Congress, and finally, gets approved on the President’s desk, millions of Americans could stand to benefit greatly.