PRESS RELEASE

For Immediate Release Contact: Lisa Tucker

August 20, 2012 (925) 934-0550 or

Jamie Hintzke

(925) 876-2380

Eric Swalwell Proposes Closing “Rich Kid Loophole” in Social Security

“Just because it’s legal, doesn’t make it right,” says Swalwell in announcing proposal to close loophole.

PLEASANTON— Dublin City Councilman and candidate for Congress in CA-15, Eric Swalwell, today announced his support for closing a loophole in granting Social Security benefits to children of a parent eligible for Social Security, but still working and collecting a salary in excess of the earning cap.

Last week it was reported by San Francisco Chronicle reporter Carolyn Lochhead that Congressman Pete Stark’s minor children receive Social Security benefits. (http://blog.sfgate.com/nov05election/2012/08/17/pete-stark-defends-social-security-payments-to-his-kids-delinquent-dues/) They are eligible for Social Security benefits because Stark, at 81 years-old, is entitled to Social Security payments in addition to his Congressional salary.

Stark receives a $174,000 annual salary from Congress and also is eligible to collect Social Security payments. His children are eligible for Social Security benefits because their father is eligible to collect the benefit. It was also noted in the article, that in addition to his annual Congressional salary, Congressman Stark, ranking Member of the Ways & Means Committee, is worth an estimated $27 million – making him one of the wealthiest people in Congress, and in the country.

“Every person should receive the benefits to which he or she paid into and is entitled,” said Swalwell. “But, just because it’s legal, doesn’t make it right. The purpose of granting Social Security benefits to children of retirees is to stabilize the family’s income – the only income of the family -- and ensure the minor children are receiving the necessities they need. Clearly, the situation in the Stark household is not the intended purpose of this benefit and he’s diverting government money to his kids.”

“If a person is eligible for Social Security but working and earning too much to quality for a benefit check, then I propose closing the loophole that allows his or her children to collect Social Security benefits simply because their father or mother is eligible,” said Swalwell. “Minor children should only be allowed to collect Social Security benefits if their parent is collecting benefits earned because they are retired, not working and not earning other income above the earnings cap.”

“It is outrageous that Congressman Stark, one of the wealthiest Members of Congress, is drawing Social Security benefits for his minor children,” said Jamie Hintzke, a Trustee of the Pleasanton Unified School District, an advocate for low-income children and families, and a Democrat. “This benefit is intended for children of retired, disabled or dead parents, and to keep them out of poverty and ensure the financial future of the children. For the majority of these children, this is the only source of income in their family. And, at a time when Social Security is more threatened than ever, Democrats lose credibility on an important issue when a senior member of the Ways & Means Committee abuses this loophole.”

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