Bill > S3462

This bill, the Safeguarding American Families and Expanding Social Security Act of 2025, aims to improve retirement security by increasing Social Security benefits and strengthening the program for the future. Key provisions include gradually phasing out the taxation of Social Security benefits on earnings above a certain threshold, starting with 80% in 2026 and decreasing to 0% by 2030, which applies to both wages and self-employment income. It also adjusts the formula used to calculate primary insurance amounts, the basis for Social Security benefits, by increasing the percentage for lower earnings and introducing a new component for "surplus average indexed monthly earnings" (surplus AIME), which accounts for earnings above the contribution and benefit base. For individuals already receiving benefits before 2026, their primary insurance amounts will be recomputed to reflect these changes, ensuring they are not disadvantaged. Additionally, the bill mandates the use of a "Consumer Price Index for Elderly Consumers" to calculate cost-of-living adjustments (COLAs) for Social Security benefits, which is intended to more accurately reflect the spending patterns of seniors.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/3462/all-info