Protecting and Preserving Social Security Act | ChamberLight
Bills · S 2614
IN COMMITTEE· 119TH CONGRESS
Senate BillS 2614Social Welfare
Protecting and Preserving Social Security Act
INTRO JUL 31· LAST ACTION JUL 31
READING
12MIN
COSPONSORS
2
READER REACTIONS0 TOTAL
NO VOTES YET · BE THE FIRST
Introduced only
LEGISLATIVE PROGRESS
STEP 2 / 8
Introduced
In Committee
Reported
Passed Senate
Passed House
Conference
To President
Became Law
WHAT THE BILL DOES
AI-written
This bill matters because it addresses key challenges facing the Social Security program and its beneficiaries. By changing the COLA calculation to the CPI-E, it could provide more adequate and realistic benefit increases for seniors, who often face higher healthcare and other costs that aren't fully captured by the current inflation measure. This could help millions of retirees maintain their standard of living.
The changes to the Social Security tax base are also significant. By gradually taxing all income above the current cap, the bill aims to strengthen Social Security's finances by increasing contributions from high-income earners. If this bill becomes law, it could extend the solvency of the Social Security trust funds, ensuring benefits are paid for longer. If it doesn't become law, the program's long-term financial challenges would remain, potentially necessitating other solutions like benefit cuts or further tax increases down the line.
KEY PROVISIONS
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PROVISION 01
Requires the Bureau of Labor Statistics to create and publish a new Consumer Price Index for Elderly Consumers (CPI-E) for individuals aged 62 or older.
This new index is intended to more accurately reflect the inflation experienced by seniors, particularly for costs like healthcare, which may lead to more appropriate benefit adjustments.
PROVISION 02
Changes the calculation of Social Security cost-of-living adjustments (COLAs) to use the new CPI-E instead of the current inflation measure.
This means annual Social Security benefit increases would be based on an inflation index specifically tailored to the spending habits of seniors, potentially resulting in larger annual benefit increases.
PROVISION 03
Phases in the taxation of earnings above the current Social Security contribution and benefit base, starting in 2026 and fully uncapping by 2032.
This provision aims to increase Social Security tax revenues by requiring high-income earners to contribute on all of their earnings, potentially improving the program's financial health.
PROVISION 04
Includes these newly taxed 'surplus earnings' (above the previous cap) in the calculation of Social Security benefits.
This ensures that individuals who contribute more to Social Security through uncapped earnings also receive commensurate increases in their future Social Security benefits.
PROVISION 05
Specifies that any increase in Social Security benefits resulting from these changes will not affect eligibility for Supplemental Security Income (SSI) or Medicaid.
This protects vulnerable beneficiaries from losing access to other crucial federal assistance programs due to a modest increase in their Social Security benefits.
This bill matters because it addresses key challenges facing the Social Security program and its beneficiaries. By changing the COLA calculation to the CPI-E, it could provide more adequate and realistic benefit increases for seniors, who often face higher healthcare and other costs that aren't fully captured by the current inflation measure. This could help millions of retirees maintain their standard of living.
The changes to the Social Security tax base are also significant. By gradually taxing all income above the current cap, the bill aims to strengthen Social Security's finances by increasing contributions from high-income earners. If this bill becomes law, it could extend the solvency of the Social Security trust funds, ensuring benefits are paid for longer. If it doesn't become law, the program's long-term financial challenges would remain, potentially necessitating other solutions like benefit cuts or further tax increases down the line.
KEY PROVISIONS
AI-extracted
high
Requires the Bureau of Labor Statistics to create and publish a new Consumer Price Index for Elderly Consumers (CPI-E) for individuals aged 62 or older.
This new index is intended to more accurately reflect the inflation experienced by seniors, particularly for costs like healthcare, which may lead to more appropriate benefit adjustments.
high
Changes the calculation of Social Security cost-of-living adjustments (COLAs) to use the new CPI-E instead of the current inflation measure.
This means annual Social Security benefit increases would be based on an inflation index specifically tailored to the spending habits of seniors, potentially resulting in larger annual benefit increases.
high
Phases in the taxation of earnings above the current Social Security contribution and benefit base, starting in 2026 and fully uncapping by 2032.
This provision aims to increase Social Security tax revenues by requiring high-income earners to contribute on all of their earnings, potentially improving the program's financial health.
med
Includes these newly taxed 'surplus earnings' (above the previous cap) in the calculation of Social Security benefits.
This ensures that individuals who contribute more to Social Security through uncapped earnings also receive commensurate increases in their future Social Security benefits.
med
Specifies that any increase in Social Security benefits resulting from these changes will not affect eligibility for Supplemental Security Income (SSI) or Medicaid.
This protects vulnerable beneficiaries from losing access to other crucial federal assistance programs due to a modest increase in their Social Security benefits.
for calendar months ending on or after July 31 of the calendar year following the calendar year in which this Act is enacted
Bureau of Labor Statistics to prepare and publish the Consumer Price Index for Elderly Consumers (CPI-E)
apply to determinations made with respect to cost-of-living computation quarters ending on or after September 30 of the second calendar year following the calendar year in which this Act is enacted
Amendments to Social Security Act for COLA computation using CPI-E
apply with respect to remuneration paid in calendar years after 2025
Amendments to Internal Revenue Code and Social Security Act regarding taxation of wages above the contribution and benefit base
Calendar year 2026: 86%
Applicable percentage for taxation of wages above the contribution and benefit base
Calendar year 2027: 71%
Applicable percentage for taxation of wages above the contribution and benefit base
Calendar year 2028: 57%
Applicable percentage for taxation of wages above the contribution and benefit base
Consumer Price Index for Elderly Consumers (CPI-E) creation and publication
discretionary
ongoing
GLOSSARY
AI-written
Consumer Price Index for Elderly Consumers (CPI-E)
A new measurement of inflation specifically designed to track the changes in prices for goods and services typically purchased by people aged 62 and older.
Cost-of-Living Adjustment (COLA)
An annual increase in Social Security and other federal benefits designed to help beneficiaries maintain their purchasing power as prices for goods and services rise.
Contribution and Benefit Base (Social Security Tax Cap)
The maximum amount of earnings subject to Social Security taxes in a given year. Incomes above this limit are not taxed for Social Security.
Old-Age, Survivors, and Disability Insurance (OASDI)
The official name for the Social Security program, which provides benefits to retirees, their families, survivors of deceased workers, and individuals with disabilities.
Social Security Act
The federal law that established the Social Security program and outlines its structure, benefits, and funding mechanisms.
Internal Revenue Code
The main body of federal tax law in the United States, which includes rules for collecting Social Security taxes.
Supplemental Security Income (SSI)
ACTION TIMELINE
2 EVENTS
JUL 31, 25
Introduced in Senate
INTROREFERRAL
JUL 31, 25
Read twice and referred to the Committee on Finance.
Applicable percentage for taxation of wages above the contribution and benefit base
Calendar year 2030: 29%
Applicable percentage for taxation of wages above the contribution and benefit base
Calendar year 2031: 14%
Applicable percentage for taxation of wages above the contribution and benefit base
Calendar years after 2031: 0%
Applicable percentage for taxation of wages above the contribution and benefit base
A federal program that provides monthly payments to adults and children with a disability or blindness, or people aged 65 or older, who have limited income and resources.
Medicaid
A joint federal and state program that helps cover healthcare costs for millions of low-income Americans, including children, pregnant women, elderly adults, and people with disabilities.
