S. 2614

119 S2614 IS: Protecting and Preserving Social Security Act
 U.S. Senate
 2025-07-31
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  1st Session  S. 2614  IN THE SENATE OF THE UNITED STATES   July 31, 2025   Ms. Hirono  (for herself,  Ms. Smith , and  Mr. Merkley ) introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To amend title II of the Social Security Act and the Internal Revenue Code of 1986 to make improvements in the old-age, survivors, and disability insurance program.
1.
Short title and table of contents
(a)
Short title
This Act may be cited as the   Protecting and Preserving Social Security Act  .
(b)
Table of contents
The table of contents of this Act is as follows:
Sec. 1. Short title and table of contents.
Title I—Cost-of-Living Increases
Sec. 101. Consumer Price Index for Elderly Consumers.
Sec. 102. Computation of cost-of-living increases.
Title II—Contribution and benefit fairness
Sec. 201. Determination of wages and self-employment income above contribution and benefit base after 2025.
Sec. 202. Inclusion of surplus earnings in Social Security benefit formula.
I
Cost-of-Living Increases
101.
Consumer Price Index for Elderly Consumers
(a)
In General
The Bureau of Labor Statistics of the Department of Labor shall prepare and publish an index for each calendar month to be known as the  Consumer Price Index for Elderly Consumers  that indicates changes over time in expenditures for consumption which are typical for individuals in the United States who are 62 years of age or older.
(b)
Effective Date
Subsection (a) shall apply with respect to calendar months ending on or after July 31 of the calendar year following the calendar year in which this Act is enacted.
(c)
Authorization of Appropriations
There are authorized to be appropriated such sums as are necessary to carry out the provisions of this section.
102.
Computation of cost-of-living increases
(a)
In general
Section 215(i)(1) of the Social Security Act ( 42 U.S.C. 415(i)(1) ) is amended by adding at the end the following new subparagraph:
(H)
the term  Consumer Price Index  means the Consumer Price Index for Elderly Consumers (CPI–E, as published by the Bureau of Labor Statistics of the Department of Labor).
 .
(b)
Application to pre-1979 law
(1)
In general
Section 215(i)(1) of the Social Security Act as in effect in December 1978, and as applied in certain cases under the provisions of such Act as in effect after December 1978, is amended by adding at the end the following new subparagraph:
(D)
the term  Consumer Price Index  means the Consumer Price Index for Elderly Consumers (CPI–E, as published by the Bureau of Labor Statistics of the Department of Labor).
  .
(2)
Conforming amendment
Section 215(i)(4) of the Social Security Act ( 42 U.S.C. 415(i)(4) ) is amended by inserting  and by section 102 of the  Protecting and Preserving Social Security Act   after  1986 .
(c)
No effect on adjustments under other laws
Section 215(i) of the Social Security Act ( 42 U.S.C. 415(i) ) is amended by adding at the end the following:
(6)
Any provision of law (other than in this title or title XVI) which provides for adjustment of an amount based on a change in benefit amounts resulting from a determination made under this subsection shall be applied and administered without regard to the amendments made by section 102 of the  Protecting and Preserving Social Security Act .
 .
(d)
No effect on eligibility for SSI and Medicaid
Any increase to an individual’s monthly benefit amount under title II of the Social Security Act as a result of the amendments made by this section shall not be regarded as income or resources for any subsequent month, for purposes of determining the eligibility of the recipient (or the recipient's spouse or family) for benefits or assistance, or the amount or extent of benefits or assistance, under the Supplemental Security Income program or the Medicaid program.
(e)
Effective date
The amendments made by this section shall apply to determinations made with respect to cost-of-living computation quarters (as defined in section 215(i)(1)(B) of the Social Security Act ( 42 U.S.C. 415(i)(1)(B) )) ending on or after September 30 of the second calendar year following the calendar year in which this Act is enacted.
II
Contribution and benefit fairness
201.
Determination of wages and self-employment income above contribution and benefit base after 2025
(a)
Determination of wages above contribution and benefit base after 2025
(1)
Amendments to the Internal Revenue Code of 1986
 Section 3121  of the Internal Revenue Code of 1986 is amended—
(A)
in subsection (a)(1), by inserting  the applicable percentage (determined under subsection (c)(1)) of  before  that part of the remuneration , and
(B)
in subsection (c), by striking  (c)
Included and excluded service.— For purposes of this chapter, if  and inserting the following:
(c)
Special rules for wages and employment
(1)
Applicable percentage of remuneration in determining wages
For purposes of paragraph (1) of subsection (a), the applicable percentage for a calendar year, in connection with any calendar year referred to in such paragraph, shall be the percentage determined in accordance with the following table:
  The applicable      In the case of:    percentage is:       Calendar year 2026  86    Calendar year 2027  71    Calendar year 2028  57    Calendar year 2029  43    Calendar year 2030  29    Calendar year 2031  14    Calendar years after 2031  0.
(2)
Included and excluded service
For purposes of this chapter, if
 .
(2)
Amendments to the Social Security Act
Section 209 of the Social Security Act ( 42 U.S.C. 409 ) is amended—
(A)
in subsection (a)(1)—
(i)
in subparagraph (I)—
(I)
by inserting  and before 2026  after  1974 ; and
(II)
by inserting  and  after the semicolon; and
(ii)
by adding at the end the following new subparagraph:
(J)
The applicable percentage (determined under subsection (l)) of that part of remuneration which, after remuneration (other than remuneration referred to in the succeeding subsections of this section) equal to the contribution and benefit base (determined under section 230) with respect to employment has been paid to an individual during any calendar year after 2025 with respect to which such contribution and benefit base is effective, is paid to such individual during such calendar year;
 ; and
(B)
by adding at the end the following new subsection:
(l)
For purposes of subparagraph (J) of subsection (a)(1), the applicable percentage for a calendar year, in connection with any calendar year referred to in such subparagraph, shall be the percentage determined in accordance with the following table:
  The applicable      In the case of:    percentage is:       Calendar year 2026  86    Calendar year 2027  71    Calendar year 2028  57    Calendar year 2029  43    Calendar year 2030  29    Calendar year 2031  14    Calendar years after 2031  0.
 .
(3)
Effective date
The amendments made by this subsection shall apply with respect to remuneration paid in calendar years after 2025.
(b)
Determination of self-Employment income above contribution and benefit base after 2025
(1)
Amendments to the Internal Revenue Code of 1986
 Section 1402  of the Internal Revenue Code of 1986 is amended—
(A)
in subsection (b)(1), by inserting  an amount equal to the applicable percentage (as determined under subsection (d)(2)) of  before  that part of the net earnings from self-employment , and
(B)
in subsection (d)—
(i)
by striking  (d)
Employee and wages.— The term  and inserting the following:
(d)
Rules and definitions
(1)
Employee and wages
The term
 , and
(ii)
by adding at the end the following:
(2)
Applicable percentage of net earnings from self-employment in determining self-employment income
For purposes of paragraph (1) of subsection (b), the applicable percentage for a taxable year beginning in any calendar year referred to in such paragraph shall be the percentage determined in accordance with the following table:
  The applicable      In the case of:    percentage is:       Calendar year 2026  86    Calendar year 2027  71    Calendar year 2028  57    Calendar year 2029  43    Calendar year 2030  29    Calendar year 2031  14    Calendar years after 2031  0.
 .
(2)
Amendments to the Social Security Act
Section 211 of the Social Security Act ( 42 U.S.C. 411 ) is amended—
(A)
in subsection (b)—
(i)
in paragraph (1)(I)—
(I)
by striking  or  after the semicolon; and
(II)
by inserting  and before 2026  after  1974 ;
(ii)
by redesignating paragraph (2) as paragraph (3); and
(iii)
by inserting after paragraph (1) the following new paragraph:
(2)
For any taxable year beginning in any calendar year after 2025, an amount equal to the applicable percentage (as determined under subsection (l)) of that part of net earnings from self-employment which is in excess of (A) an amount equal to the contribution and benefit base (determined under section 230) that is effective for such calendar year, minus (B) the amount of the wages paid to such individual during such taxable year; or
 ; and
(B)
by adding at the end the following:
(l)
For purposes of paragraph (2) of subsection (b), the applicable percentage for a taxable year beginning in any calendar year referred to in such paragraph, shall be the percentage determined in accordance with the following table:
  The applicable      In the case of:    percentage is:       Calendar year 2026  86    Calendar year 2027  71    Calendar year 2028  57    Calendar year 2029  43    Calendar year 2030  29    Calendar year 2031  14    Calendar years after 2031  0.
 .
(3)
Effective date
The amendments made by this subsection shall apply with respect to taxable years beginning during or after calendar year 2026.
202.
Inclusion of surplus earnings in Social Security benefit formula
(a)
Inclusion of surplus average indexed monthly earnings in determination of primary insurance amounts
(1)
In general
Section 215(a)(1)(A) of the Social Security Act ( 42 U.S.C. 415(a)(1)(A) ) is amended—
(A)
in clauses (i), (ii), and (iii), by inserting  basic  before  average indexed monthly earnings  each place it appears;
(B)
in clause (ii), by striking  and  at the end; and
(C)
by inserting after clause (iii) the following new clauses:
(iv)
3 percent of the individual’s surplus average indexed monthly earnings to the extent such surplus average indexed monthly earnings do not exceed the excess of the amount established for purposes of this clause by subparagraph (B) over  1/12  of the contribution and benefit base for the last of such individual’s computation base years, and
(v)
0.25 percent of the sum of the individual’s surplus average indexed monthly earnings plus  1/12  of the contribution and benefit base for the last of such individual’s computation base years, to the extent such sum exceeds the amount established for purposes of clause (iv) by subparagraph (B).
 .
(2)
Bend point for surplus earnings
Section 215(a)(1)(B) of such Act ( 42 U.S.C. 415(a)(1)(B) ) is amended—
(A)
in clause (ii), by striking  the amounts so established  and inserting  the amounts established for purposes of clauses (i) and (ii) of subparagraph (A) ;
(B)
by redesignating clause (iii) as clause (v);
(C)
in clause (v) (as redesignated), by inserting  or (iv)  after  clause (ii) ; and
(D)
by inserting after clause (ii) the following new clauses:
(iii)
For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming eligible for such benefits), in the calendar year 2026, the amount established for purposes of clause (iv) of subparagraph (A) shall be $8,933.
(iv)
For individuals who initially become eligible for old-age or disability insurance benefits, or who die (before becoming eligible for such benefits), in any calendar year after 2026, the amount established for purposes of clause (iv) of subparagraph (A) shall equal the product of the amount established with respect to the calendar year 2026 under clause (iii) of this subparagraph and the quotient obtained by dividing—
(I)
(aa)
the national average wage index (as defined in section 209(k)(1)) for the second calendar year preceding the calendar year for which the determination is made, or
(bb)
if higher (and if such second calendar year is after 2026), the highest national average wage index (as so defined) for any calendar year before such second calendar year, by
(II)
the national average wage index (as so defined) for 2024.
 .
(b)
Basic AIME and surplus AIME
(1)
Basic AIME
Section 215(b)(1) of such Act ( 42 U.S.C. 415(b)(1) ) is amended—
(A)
by inserting  basic  before  average ; and
(B)
in subparagraph (A), by striking  paragraph (3)  and inserting  paragraph (3)(A)  and by inserting before the comma the following:  to the extent such total does not exceed the contribution and benefit base for the applicable year .
(2)
Surplus AIME
(A)
In general
Section 215(b)(1) of such Act (as amended by paragraph (1)) is amended—
(i)
by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively;
(ii)
by inserting  (A)  after  (b)(1) ; and
(iii)
by adding at the end the following new subparagraph:
(B)
(i)
An individual’s surplus average indexed monthly earnings shall be equal to the quotient obtained by dividing—
(I)
the total (after adjustment under paragraph (3)(B)) of such individual’s surplus earnings (determined under clause (ii)) for such individual’s benefit computation years (determined under paragraph (2)), by
(II)
the number of months in those years.
(ii)
For purposes of clause (i) and paragraph (3)(B), an individual’s surplus earnings for a benefit computation year are the total of such individual’s wages paid in and self-employment income credited to such benefit computation year, to the extent such total (before adjustment under paragraph (3)(B)) exceeds the contribution and benefit base for such year.
 .
(B)
Conforming amendment
The heading for section 215(b) of such Act is amended by striking  Average Indexed Monthly Earnings  and inserting  Basic Average Indexed Monthly Earnings; Surplus Average Indexed Monthly Earnings .
(3)
Adjustment of surplus earnings for purposes of determining surplus AIME
Section 215(b)(3) of such Act ( 42 U.S.C. 415(b)(3) ) is amended—
(A)
in subparagraph (A), by striking  subparagraph (B)  and inserting  subparagraph (C)  and by inserting  and determination of basic average indexed monthly income  after  paragraph (2) ;
(B)
by redesignating subparagraph (B) as subparagraph (C); and
(C)
by inserting after subparagraph (A) the following new subparagraph:
(B)
For purposes of determining under paragraph (1)(B) an individual’s surplus average indexed monthly earnings, the individual’s surplus earnings (described in paragraph (2)(B)(ii)) for a benefit computation year shall be deemed to be equal to the product of—
(i)
the individual’s surplus earnings for such year (as determined without regard to this subparagraph), and
(ii)
the quotient described in subparagraph (A)(ii).
 .
(c)
Effective date
The amendments made by this section shall apply with respect to individuals who initially become eligible (within the meaning of section 215(a)(3)(B) of the Social Security Act) for old-age or disability insurance benefits under title II of the Social Security Act, or who die (before becoming eligible for such benefits), in any calendar year after 2025.