Social Security’s death benefit has been $255 since 1954. Some senators want to change that

When a Social Safety beneficiary dies, their family members could qualify for a one-time $255 lump-sum demise cost.

But that quantity has not modified in 70 years — since 1954 — whereas inflation has pushed the prices for funerals larger.

On Wednesday, Sen. Peter Welch, D-Vt., launched a brand new invoice, the Social Safety Survivor Advantages Fairness Act, to boost the lump-sum demise profit to $2,900 to replicate at this time’s price of residing.

The invoice is co-led with Sens. Bernie Sanders, I-Vt., and Elizabeth Warren, D-Mass.

The change is aimed toward serving to to alleviate the monetary burden for households following the lack of a beloved one, Welch mentioned in an announcement.

“Funeral prices needs to be the very last thing on the minds of grieving households after they lose a beloved one,” Welch mentioned. “However as a result of advantages designed to assist people afford funeral bills have not saved tempo with inflation, the price of burying a beloved one has turn out to be high of thoughts for a lot of mourning households.”

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A full memorial and cremation service costed round $700 within the Fifties, when the $255 lump sum demise cost nonetheless in impact at this time was established, in line with Welch’s proposal.

At the moment, the median price of a funeral with casket and burial is $8,300, whereas the common price for a funeral with cremation is $6,280, in line with the Nationwide Funeral Administrators Affiliation.

Below the phrases of the invoice, the upper $2,900 demise profit would go into impact in 2025. That sum would adjusted for inflation to the Client Value Index for City Wage Earners and Clerical Employees, or CPI-W, which is used to calculate Social Safety’s annual cost-of-living changes.

The proposal has been endorsed by advocacy organizations Social Safety Works and the Strengthen Social Safety Coalition.

The present $255 one-time lump-sum demise cost is accessible to Social Safety beneficiaries’ survivors, supplied they meet sure necessities.

“For those who’ve labored lengthy sufficient, we make a one-time cost of $255 while you die,” the Social Safety Administration states in a information on survivors’ advantages.

Survivors — similar to a partner or baby — should apply for the cost inside two years of the date of demise, in line with the company.

A surviving partner could also be eligible for the demise cost in the event that they had been residing with the one that passes away. If the partner was residing other than the deceased however was receiving Social Safety advantages based mostly on their file, they could even be eligible for the $255 cost.

If there isn’t any surviving partner, youngsters of the deceased could as a substitute be eligible for the cost, so long as they qualify to obtain advantages on their deceased dad or mum’s file after they died.

Whereas funeral houses typically report a demise to the company, survivors ought to nonetheless notify the Social Safety Administration as quickly as potential when a beneficiary dies to cancel their advantages, in line with Jim Blair, vice chairman of Premier Social Safety Consulting and a former Social Safety administrator.

Although a one-time demise cost could also be obtainable, any profit funds obtained by the deceased within the month of demise or after should be returned, in line with the Social Safety Administration. Nevertheless, how this rule is dealt with relies on the timing of the demise.

If a deceased beneficiary was due a Social Safety verify or a Medicare premium refund after they died, a declare could also be submitted to the Social Safety Administration.

Sure members of the family could also be eligible to obtain survivor advantages based mostly on the deceased beneficiary’s earnings file beginning as quickly because the month they died, in line with the Social Safety Administration.

That will embrace a surviving partner age 60 or older; a surviving partner 50 or older who has a incapacity; a surviving divorced partner in the event that they meet sure {qualifications}; or a surviving partner who’s caring for a deceased’s baby who’s below age 16 or who has a incapacity.

Different members of the family may additionally qualify, together with an single baby of the deceased who’s below 18, or as much as 19 if they’re a full-time elementary or secondary faculty pupil, or age 18 and older with a incapacity that started earlier than age 22; stepchildren, grandchildren, step-grandchildren or adopted youngsters below sure circumstances; and oldsters ages 62 or over who relied on the deceased for a minimum of half of their monetary assist.