S. 3255 — SWIFT Act

This section expands eligibility for widow's and widower's insurance benefits under the Social Security Act (i.e., monthly survivors benefits for spouses and surviving divorced spouses of deceased workers entitled to old-age or disability benefits) to individuals with a qualifying disability at any age (previously limited to ages 50-59). Specifically, it (1) eliminates the age 50 minimum and requirement that the disability began before the later of seven years after the worker's death or three years after a prior entitlement to disability benefits; (2) deems a post-qualifying marriage not to have occurred; (3) limits retroactive benefits to 16 months before the application month (previously 12 months); and (4) eliminates any reduction in benefit amount prior to full retirement age for those qualifying due to disability. (Thus, eligible disabled widows, widowers, and surviving divorced spouses may receive unreduced benefits regardless of age.) The section makes conforming amendments to paragraph numbering and cross-references in the Social Security Act, the Railroad Retirement Act, and federal retirement law and applies to benefits payable on or after January 1, 2027.

This section increases the age limit for a child in the care of a wife or divorced wife of a Social Security old-age or disability beneficiary to qualify for child-in-care spousal benefits (i.e., benefits under SSA §202(b) or (d)) to age 18 (from age 16), or age 19 if the child is a full-time elementary or secondary school student. (As background, these spousal benefits allow eligible spouses under full retirement age to receive up to 50% of the worker's primary insurance amount while caring for the worker's entitled child.) The change applies to benefits payable on or after January 1, 2027.

This section modifies limits on widow's and widower's insurance benefits under Social Security Act section 202(e)(2)(D) and (f)(2)(D) when the deceased worker received reduced old-age benefits under subsection (q), setting the maximum to the greater of (i) the deceased worker's reduced old-age benefit (computed as if still living, applying delayed retirement adjustments under section 215(f)(5), (6), or (9)(B) where applicable) or (ii) 82 1/2 percent of the deceased worker's primary insurance amount (PIA, determined without regard to subsection (e)(2)(C) or (f)(2)(C)); inserts cross-references to new subsections (aa) and (bb) in the list of exceptions to benefit reductions; and adds subsections (aa) and (bb). New subsection (aa) increases widow's and widower's benefits subject to the revised limit in (e)(2)(D) or (f)(2)(D) for delay in claiming. Increases apply to the benefit amount (before that limit but after certain other reductions) by the applicable percentage (28.5 percent divided by the number of months from attaining age 60—early retirement age under section 216(l)(2)—to full retirement age under section 216(l)(1)) multiplied by the number of increment months (i.e., months on or after January 1, 2027, after age 60 during which the survivor was eligible but did not claim or suspended benefits under subsection (z), excluding penalty months under section 1129A), capped at the higher of the deceased worker's PIA or reduced old-age benefit; recomputed upon entitlement, reentitlement, or resumption after suspension. New subsection (bb) provides a parallel increase in widow's and widower's benefits (excluding those based on certain special PIAs under section 215(a)) for delayed receipt. (As background, widow's and widower's benefits pay eligible surviving spouses generally 71.5-100% of the deceased worker's PIA, reduced for claiming before full retirement age but currently capped at the deceased worker's reduced benefit if the worker claimed early; these changes establish an 82.5% PIA floor and delayed retirement credits—similar to those for retirees—to incentivize postponing claims for higher monthly payments, effective for delays starting in 2027.)

This section requires federal, state, and local programs financed in whole or in part with federal funds to disregard any additional income attributable to increased benefits or new eligibility under title II of the Social Security Act (i.e., retirement, survivors, and disability insurance benefits) resulting from this Act, when determining continued eligibility and benefit amounts for individuals receiving such program benefits as of the Act's effective date. (Thus, current recipients of means-tested programs such as Supplemental Security Income are held harmless from reductions due to the Social Security changes.) The disregard ceases if the individual later becomes ineligible for the program.

This section directs the Commissioner of Social Security to publish, by January 1, 2027, a booklet on benefits available under title II of the Social Security Act (i.e., Old-Age, Survivors, and Disability Insurance) to widows, widowers, and surviving divorced spouses—including interactions between old-age insurance benefits and survivors insurance benefits, claiming procedures and timing effects on amounts, the lump-sum death benefit, and contact information for the Social Security Administration. The section further requires the Commissioner to mail the booklet to each such survivor known to the administration within 30 days of being informed of an individual's death on or after that date.