Protecting and Improving Social Security: New Cost-of-Living and Contribution Rules
This act aims to enhance the old-age, survivors, and disability insurance program. It introduces a new method for calculating benefit increases based on a consumer price index specifically for the elderly, potentially leading to higher benefits. It also modifies how contributions are calculated for higher earners, impacting high-income individuals.
Key points
Changes to benefit increase calculation: Increases will be based on a Consumer Price Index for Elderly Consumers (CPI-E), potentially resulting in higher benefit adjustments for retirees and beneficiaries.
New rules for high-earner contributions: Starting in 2026, a portion of earnings above the current contribution limit will gradually be subject to Social Security contributions again, meaning high-income individuals will contribute more.
Inclusion of surplus earnings in benefit formula: A portion of earnings previously not considered for benefit calculations will now be included, potentially leading to higher retirement and disability benefits for high earners.
No impact on other benefit eligibility: Any increase in Social Security benefits due to this act will not affect eligibility for programs like Supplemental Security Income (SSI) or Medicaid.
Status:
Introduced
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