SB 2614, the “Protecting and Preserving Social Security Act,” would make two broad changes to Social Security. First, it would change the cost-of-living adjustment (COLA) calculation to use the Consumer Price Index for Elderly Consumers (CPI-E) instead of the current index, with the goal of tying annual benefit increases more closely to the spending patterns of older Americans. The bill also directs the Bureau of Labor Statistics to publish a monthly CPI-E and specifies that Social Security COLA-related changes would not alter SSI or Medicaid eligibility determinations.
Second, the bill would alter how payroll taxes and benefits are calculated for higher earners. It phases out the Social Security payroll tax cap for wages and self-employment income above the contribution and benefit base beginning in 2026, gradually reducing the share of earnings above the cap that are excluded from taxation until that exclusion reaches zero after 2031. It also changes the benefit formula so that earnings above the taxable maximum are included in a new “surplus” earnings calculation, which would modestly increase benefits for workers with earnings above the current cap. These changes would apply only to individuals first eligible for retirement or disability benefits after 2025, or who die before becoming eligible after that date.
Impact
The bill would amend Title II of the Social Security Act and related provisions of the Internal Revenue Code, affecting both payroll tax collection and benefit computation. It would replace the CPI used for Social Security COLAs with CPI-E, create new statutory definitions and formulas for basic and surplus average indexed monthly earnings, and revise the treatment of wages and self-employment income above the contribution and benefit base. It would also expressly preserve SSI and Medicaid eligibility rules by preventing COLA-related increases from being counted as income or resources for those programs.
Sentiment
No committee transcript or vote record is available, so there is no recorded floor or committee debate to gauge sentiment. Based on the bill text and sponsorship, the measure appears to be framed as a pro-beneficiary Social Security expansion and solvency/fairness proposal, with support implied by its introduction by Senators Hirono, Smith, and Merkley. The absence of votes or amendments means there is no documented bipartisan support or opposition in the provided record.
Contention
The main policy points likely to generate contention are the use of CPI-E for COLAs and the elimination of the payroll tax cap for higher earners. Supporters would likely argue that CPI-E better reflects seniors’ costs and that taxing earnings above the cap improves fairness and program financing. Opponents may object to higher payroll taxes on upper-income workers and self-employed individuals, and may question whether CPI-E is the appropriate inflation measure for Social Security. The bill also creates a more complex benefit formula for surplus earnings, which could raise administrative and distributional concerns.