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Social Security Benefits Boost, New COLA Index, and Temporary High-Earner Taxes.

This Act aims to enhance retirement security by increasing Social Security benefits for current and future beneficiaries. It introduces a temporary tax on a portion of earnings above the current cap and modifies benefit calculation methods to provide higher payouts, especially for lower-income individuals. Additionally, cost-of-living adjustments will use a new inflation index better reflecting the expenses of the elderly.
Key points
Higher Benefits for Current and Future Retirees: Individuals already receiving benefits may see their payments recomputed and potentially increased starting January 2026. New benefit calculation rules, effective after 2030, will lead to higher payouts for both lower and higher earners.
Temporary Taxation of High Earnings: From 2026 to 2029, a portion of earnings exceeding the current Social Security cap will be subject to taxation to support the system. This additional taxation will be phased out after 2030.
New Cost-of-Living Adjustment Method: Starting September 2026, annual Social Security benefit increases (COLAs) will be calculated using the Consumer Price Index for Elderly Consumers (CPI-E), which may result in more frequent and higher adjustments.
Inclusion of High Earnings in Benefit Calculations: From 2030 onwards, even after the temporary taxation is removed, a small portion of earnings above the current cap will be considered when calculating future benefits, increasing them for higher-income individuals.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_3462
Sponsor: Sen. Schatz, Brian [D-HI]
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Safeguarding American Families and Expanding Social Security Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_3462.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

What are the main provisions?

Key points include:

  • Higher Benefits for Current and Future Retirees: Individuals already receiving benefits may see their payments recomputed and potentially increased starting January 2026. New benefit calculation rules, effective after 2030, will lead to higher payouts for both lower and higher earners.
  • Temporary Taxation of High Earnings: From 2026 to 2029, a portion of earnings exceeding the current Social Security cap will be subject to taxation to support the system. This additional taxation will be phased out after 2030.
  • New Cost-of-Living Adjustment Method: Starting September 2026, annual Social Security benefit increases (COLAs) will be calculated using the Consumer Price Index for Elderly Consumers (CPI-E), which may result in more frequent and higher adjustments.
  • Inclusion of High Earnings in Benefit Calculations: From 2030 onwards, even after the temporary taxation is removed, a small portion of earnings above the current cap will be considered when calculating future benefits, increasing them for higher-income individuals.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Schatz, Brian [D-HI].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2026-01-11.

CATEGORIES

Benefits Taxes