Sponsors (11)
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Modifies definitions and special rules within section 3121 concerning wages by altering subsection (a)(1) and replacing subsection (c) with new special rules that introduce an applicable-percentage table and clarify included and excluded service for determining wages above the contribution and benefit base.
Amends definitions and rules in section 1402 by adjusting subsection (b)(1) and adding an applicable-percentage rule in subsection (d) for determining the portion of net earnings from self-employment that is treated with respect to the contribution and benefit base.
Adds a new subparagraph to 42 U.S.C. 409(a)(1) and a new subsection (l) establishing that an applicable percentage (from a new table) applies to remuneration paid in calendar years after 2025 that exceed the contribution and benefit base.
Modifies section 411 by inserting a new paragraph in subsection (b) to treat net earnings from self-employment above the contribution and benefit base for taxable years beginning in calendar years after 2025 and by adding a new subsection (l) specifying applicable percentages via a table.
Amends the computation of the primary insurance amount by adding clauses to apply small percentages to 'surplus' average indexed monthly earnings, establishing a new bend point amount of $8,933 for 2026 and an indexing rule for years after 2026, and defining and integrating 'surplus AIME' and 'surplus earnings' into AIME calculations and adjustments.
Adds a new subparagraph defining 'Consumer Price Index' to mean the Consumer Price Index for Elderly Consumers (CPI–E) as published by the Bureau of Labor Statistics.
Makes a conforming amendment by inserting additional text into subsection (i)(4) as specified in the section (text of insertion is not specified in the provided excerpt).
Adds a new paragraph (6) to subsection (i) stating that any provision of law (other than in title II or title XVI) providing for adjustment of an amount based on a change in benefit amounts resulting from determinations under this subsection shall be applied and administered without regard to the amendments made by section 102 of this Act.
Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, and Education and Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
This bill would change how Social Security keeps up with prices and how it treats very high earnings. It would direct the government to create a price index focused on older adults and use it to set yearly Social Security cost‑of‑living increases. These increases would start being calculated with the new index in the second year after the law takes effect, and they would not be counted against someone’s eligibility for SSI or Medicaid .
It would also require Social Security taxes on part of wages and self‑employment income above today’s cap, starting after 2025, using a set percentage from a table in the law. In return, some of those extra earnings would count toward future benefits, but at much smaller rates than regular earnings. The bill creates a new way to measure those “surplus” earnings and adds them to the benefit formula at 3% up to a set level and 0.25% above that, for people who first become eligible for benefits after 2025 .
Key points
Introduced August 12, 2025 by Jill Tokuda · Last progress August 12, 2025
