Protecting and Preserving Social Security Act
- Bill Number
- H.R. 4968
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Social Welfare
- Status
- Introduced
- Latest Action
- 2025-08-12: 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.
- Last Updated
- 2026-06-03T16:39:48Z
AI-Generated Summary
Summary of H.R. 4968: Protecting and Preserving Social Security Act
Purpose
This legislation aims to enhance the old-age, survivors, and disability insurance program under Social Security by improving how cost-of-living adjustments are calculated, ensuring fairer contributions from higher earners, and incorporating additional earnings into benefit calculations. The goal is to better align adjustments with seniors' expenses and make the system more equitable and sustainable.
Key Provisions
- Title I: Cost-of-Living Increases
- Consumer Price Index for Elderly Consumers (CPI-E): Directs the Bureau of Labor Statistics to create and publish a new index (CPI-E) tracking spending changes for people aged 62 and older, starting after the year of enactment. Authorizes funding for this.
- Use of CPI-E for Adjustments: Replaces the standard Consumer Price Index with CPI-E for calculating annual cost-of-living increases in Social Security benefits. This applies to adjustments for quarters ending after September 30 of the second year following enactment.
- Protections: Benefit increases from these changes do not count as income or assets when determining eligibility or amounts for Supplemental Security Income (SSI, a program for low-income individuals) or Medicaid (health coverage for low-income people). Other laws relying on standard CPI adjustments remain unaffected.
- Title II: Contribution and Benefit Fairness
- Phased Taxation of Earnings Above the Base (Sec. 201): Gradually reduces the exemption for earnings above the annual contribution and benefit base (the income cap currently subject to Social Security taxes, set at about $168,600 in 2024).
- For wages and self-employment income: Starting in 2026, taxes apply to a decreasing percentage of excess earnings (86% in 2026, dropping to 0% after 2031), effectively taxing all earnings by 2032.
- Applies to remuneration paid after 2025 for wages and taxable years starting in 2026 for self-employment.
- Inclusion of Surplus Earnings in Benefits (Sec. 202): Modifies the formula for Primary Insurance Amount (PIA, the base monthly benefit amount).
- Introduces "basic" average indexed monthly earnings (AIME, a measure of lifetime earnings adjusted for inflation) up to the contribution base, and "surplus" AIME for earnings above it.
- Adds new "bend points" (thresholds in the benefit formula) for surplus earnings: 3% replacement rate up to a set amount (starting at $8,933 in 2026, indexed to wages thereafter), and 0.25% on amounts above that.
- Applies to individuals becoming eligible for benefits or dying after 2025.
Significant Changes to Existing Law
- Shifts from the general Consumer Price Index to CPI-E for benefit adjustments, potentially leading to higher annual increases since elderly spending (e.g., on healthcare) often rises faster.
- Ends the full exemption for high earners' income above the contribution base over six years, increasing taxable wages/self-employment income (amends Internal Revenue Code sections 3121 and 1402, and Social Security Act sections 209 and 211).
- Expands the benefit formula to credit surplus earnings, providing modest additional benefits to higher earners while maintaining the progressive structure (lower earners get higher replacement rates on basic earnings).
Potential Impacts
- On Citizens: Elderly and disabled beneficiaries may receive larger cost-of-living adjustments, improving purchasing power against inflation in healthcare and housing. High-income workers and self-employed individuals will pay more in Social Security taxes but could see slightly higher future benefits. Low-income recipients' SSI and Medicaid eligibility remains protected.
- On Government Agencies: The Social Security Administration (SSA) will use the new CPI-E for adjustments and recalculate benefits with surplus earnings, requiring system updates. The Internal Revenue Service (IRS) and Treasury will collect more payroll taxes from high earners, boosting Social Security revenue and potentially extending program solvency. The Bureau of Labor Statistics gains a new ongoing responsibility.
- On International Relations: No direct impacts, as this is a domestic social insurance program.
Main Stakeholders Affected
- Social Security Beneficiaries: Primarily older adults (62+), survivors, and disabled individuals, who benefit from enhanced adjustments and formula changes.
- High-Income Earners and Self-Employed: Face increased taxes on earnings above the base but gain from surplus earnings in benefits.
- Low-Income Individuals: Indirectly protected through unchanged SSI/Medicaid rules.
- Government Entities: SSA (benefit administration), IRS (tax collection), Bureau of Labor Statistics (index creation), and Congress (funding oversight).
- Taxpayers Generally: Contribute more overall to Social Security, supporting long-term program stability.
Notable Legal, Constitutional, or Political Implications
- Legal: Amendments to the Social Security Act and Internal Revenue Code are straightforward statutory changes, with clear effective dates to phase in alterations. The bill ensures no disruption to related programs like SSI and Medicaid, avoiding conflicts with existing welfare laws.
- Constitutional: No apparent issues; the changes involve congressional authority over taxation (Article I, Section 8) and social welfare programs, without infringing on due process or equal protection (benefits remain progressive).
- Political: Addresses Social Security's long-term funding challenges by increasing revenue from high earners without reducing core benefits, potentially appealing across party lines but sparking debate on tax equity and benefit expansion for the wealthy. Referred to key committees (Ways and Means, Energy and Commerce, Education and Workforce) for review, indicating broad jurisdictional interest.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (10)
Rep. Pettersen, Brittany [D-CO-7], Rep. Tlaib, Rashida [D-MI-12], Rep. Magaziner, Seth [D-RI-2], Rep. Cohen, Steve [D-TN-9], Rep. Tonko, Paul [D-NY-20], Rep. Pingree, Chellie [D-ME-1], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Frankel, Lois [D-FL-22], Rep. Escobar, Veronica [D-TX-16], Rep. Schakowsky, Janice D. [D-IL-9]
Recent Actions
- 2025-08-12: 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.
- 2025-08-12: 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.
- 2025-08-12: 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.
- 2025-08-12: Introduced in House
- 2025-08-12: Introduced in House
Bill Versions
- Protecting and Preserving Social Security Act — issued 2025-08-12 — PDF (16 pages)