WASHINGTON – Today, U.S. Senators Chris Coons (D-Del.) and Bill Cassidy, M.D. (R-La.) reintroduced the Retirement Security for American Hostages Act to ensure American hostages and wrongful detainees don’t see reduced Social Security earnings as a result of being unlawfully held abroad. In addition to Senators Coons and Cassidy, this legislation is co-sponsored by Senators Tim Kaine (D-Va.), Susan Collins (R-Maine), and Ron Wyden (D-Ore.). This legislation was previously introduced in the 118th Congress.
“The financial impact of wrongful detention doesn't end when Americans come home – the damage can last into their years of retirement,” said Senator Coons. “Americans like Paul Whelan – unjustly held in a Russian prison for six years until the Biden Administration secured his release – see severely reduced Social Security benefits for the rest of their lives and have precious little time to make those earnings back. The Retirement Security for American Hostages Act provides a straightforward and practical solution so that years spent in foreign detention don't translate into permanently reduced retirement benefits for these Americans who have already suffered so much."
“Losing one’s freedom is enough to endure. Americans held hostage should not also lose their Social Security benefits,” said Senator Cassidy. “Ensuring their benefits are protected makes a difference in someone’s life.”
“Hostage US strongly supports the Retirement Security for American Hostages Act. As the leading organization providing reintegration support, guidance, and resources to Americans held hostage or wrongfully detained abroad, we see firsthand the long-term impact captivity has on individuals and their loved ones. This critical piece of legislation prevents reduced retirement security when hostages return home and means former captives can rebuild their lives without additional hardship. Americans who have endured captivity should have financial protections and this commonsense legislation will provide much-needed relief to those who have already suffered so much,” said Liz Cathcart, Executive Director of Hostage US.
“The lives of Americans held hostage or wrongfully detained are forever altered in damaging ways that can continue upon their release and return home,” said Diane Foley, President, the James W. Foley Legacy Foundation. “This bill provides an important measure of relief to reduce the burdens faced by those who are lucky enough to be freed.”
Last summer, several Americans were released from wrongful detention in Russia as part of a historic prisoner exchange, and additional Americans have been released from hostage situations since then. These individuals now face financial obstacles resulting from their captivity, including diminished Social Security benefits when they reach retirement. Because they may not have received a paycheck or paid payroll taxes while in captivity, their Average Indexed Monthly Earnings (AIME), which determines their Social Security benefit upon retirement, may have diminished by a meaningful amount.
The Retirement Security for American Hostages Act would amend the Social Security Administration’s (SSA) calculation of benefits for individuals identified as wrongful detainees by the federal government. The bill ensures that when calculating Social Security benefits, the SSA would assume “deemed wages” equal to the national average for each month a former hostage or detainee was held, preventing unjust reductions in their retirement benefits.
Senator Coons has led numerous bills supporting American hostages and wrongful detainees and addressing financial hardships they often face upon their return. He reintroduced the Retirement Security for American Hostages Act alongside two other hostage bills today–– the Fair Credit for American Hostages Act and the Stop Tax Penalties on American Hostages Act. The first is a bill with Senator Thom Tillis (R-N.C.) that would empower former hostages and detainees to restore credit scores that may have been negatively impacted during their detention. The latter is with Senator Mike Rounds (R-S.D.) and would stop the IRS from imposing fines and penalties on American hostages and wrongful detainees for late tax payments while they are held abroad. Both of those bills unanimously cleared the Senate last year.
A one-pager is available here.
The full text of the legislation can be found here.