This bill changes the way the Social Security lump-sum death payment in section 202(i) is calculated. It replaces the previous formula with a flat $2,900 payment for deaths on or after January 1, 2025. For deaths in calendar years after 2025, the $2,900 amount is increased each year by the percentage change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from October 2024 to October of the prior year, and the result is rounded to the nearest $10.
If a lump-sum death payment under section 202(i) is payable for an individual who dies on or after January 1, 2025, the payment amount would be $2,900. For deaths in later calendar years, the payment would rise each year based on the CPI-W change between October 2024 and October of the year before the death year, rounded to the nearest $10. The change applies only to lump-sum death payments payable under section 202(i) for individuals who die on or after January 1, 2025.
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The text of the bill states its purpose is to update the lump-sum death payment amount and to index that amount to inflation using the CPI-W beginning after 2025. The bill was introduced by several Members of the House and referred to the Ways and Means Committee.
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