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CRS Reports on Potential Impacts of Proposed Policy Changes in Social Security Computation Years

On December 12, 2022, the Congressional Research Service (CRS) released its report, Social Security: Potential Impacts of Changes in Computation Years. The report discusses Social Security’s computation years benefit calculation formula under the current law as well as the provision’s legislative background. The number of computation years is used as one factor used for calculating an individual’s Social Security monthly benefit amount.

Furthermore, the report presents various policy options that would change the number of computation years. It also includes an analysis of the effects on beneficiaries and related costs to the Social Security program.

Some proposals for policy changes in the number of computation years used in the Social Security benefit calculation would include:

  • Increasing the number of computation years, which may encourage individuals to work longer, improve individual equity, and improve funding. However, it may result in years of lower earnings which would reduce the monthly benefit payable to some beneficiaries; or
  • Decreasing the number of computation years for certain groups (i.e., parents caring for small children), which may increase the monthly benefits for the target group and help to improve income security. However, it may result in individual equity issues and increased financial outlays from the Social Security program.

The report is available here.