II 

118TH CONGRESS 

2D SESSION S. 4877 

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. 

IN THE SENATE OF THE UNITED STATES 

JULY 31, 2024 

Ms. HIRONO (for herself, Mr. MERKLEY, and Ms. SMITH) 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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Protecting and Preserving Social Security Act’’. 

6 (b) TABLE OF CONTENTS.—The table of contents of 

7 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. 


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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 2024. 

Sec. 202. Inclusion of surplus earnings in Social Security benefit formula. 

1 TITLE I—COST-OF-LIVING 

2 INCREASES 

3 SEC. 101. CONSUMER PRICE INDEX FOR ELDERLY CON4 SUMERS. 

5 (a) IN GENERAL.—The Bureau of Labor Statistics 

6 of the Department of Labor shall prepare and publish an 

7 index for each calendar month to be known as the ‘‘Con8 sumer Price Index for Elderly Consumers’’ that indicates 

9 changes over time in expenditures for consumption which 

10 are typical for individuals in the United States who are 

11 62 years of age or older. 

12 (b) EFFECTIVE DATE.—Subsection (a) shall apply 

13 with respect to calendar months ending on or after July 

14 31 of the calendar year following the calendar year in 

15 which this Act is enacted. 

16 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated such sums as are nec18 essary to carry out the provisions of this section. 

19 SEC. 102. COMPUTATION OF COST-OF-LIVING INCREASES. 

20 (a) IN GENERAL.—Section 215(i)(1) of the Social Se21 curity Act (42 U.S.C. 415(i)(1)) is amended by adding 

22 at the end the following new subparagraph: 


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1 ‘‘(H) the term ‘Consumer Price Index’ 

2 means the Consumer Price Index for Elderly 

3 Consumers (CPI–E, as published by the Bu4 reau of Labor Statistics of the Department of 

5 Labor).’’. 

6 (b) APPLICATION TO PRE-1979 LAW.— 

7 (1) IN GENERAL.—Section 215(i)(1) of the So8 cial Security Act as in effect in December 1978, and 

9 as applied in certain cases under the provisions of 

10 such Act as in effect after December 1978, is 

11 amended by adding at the end the following new 

12 subparagraph: 

13 ‘‘(D) the term ‘Consumer Price Index’ 

14 means the Consumer Price Index for Elderly 

15 Consumers (CPI–E, as published by the Bu16 reau of Labor Statistics of the Department of 

17 Labor).’’. 

18 (2) CONFORMING AMENDMENT.—Section 

19 215(i)(4) of the Social Security Act (42 U.S.C. 

20 415(i)(4)) is amended by inserting ‘‘and by section 

21 102 of the Protecting and Preserving Social Security 

22 Act’’ after ‘‘1986’’. 

23 (c) NO EFFECT ON ADJUSTMENTS UNDER OTHER

24 LAWS.—Section 215(i) of the Social Security Act (42 


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1 U.S.C. 415(i)) is amended by adding at the end the fol2 lowing: 

3 ‘‘(6) Any provision of law (other than in this 

4 title or title XVI) which provides for adjustment of 

5 an amount based on a change in benefit amounts re6 sulting from a determination made under this sub7 section shall be applied and administered without re8 gard to the amendments made by section 102 of the 

9 Protecting and Preserving Social Security Act.’’. 

10 (d) NO EFFECT ON ELIGIBILITY FOR SSI AND MED11 ICAID.—Any increase to an individual’s monthly benefit 

12 amount under title II of the Social Security Act as a result 

13 of the amendments made by this section shall not be re14 garded as income or resources for any subsequent month, 

15 for purposes of determining the eligibility of the recipient 

16 (or the recipient’s spouse or family) for benefits or assist17 ance, or the amount or extent of benefits or assistance, 

18 under the Supplemental Security Income program or the 

19 Medicaid program. 

20 (e) EFFECTIVE DATE.—The amendments made by 

21 this section shall apply to determinations made with re22 spect to cost-of-living computation quarters (as defined in 

23 section 215(i)(1)(B) of the Social Security Act (42 U.S.C. 

24 415(i)(1)(B))) ending on or after September 30 of the secVerDate Sep 11 2014 23:32 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S4877.IS S4877

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1 ond calendar year following the calendar year in which this 

2 Act is enacted. 

3 TITLE II—CONTRIBUTION AND 

4 BENEFIT FAIRNESS 

5 SEC. 201. DETERMINATION OF WAGES AND SELF-EMPLOY6 MENT INCOME ABOVE CONTRIBUTION AND 

7 BENEFIT BASE AFTER 2024. 

8 (a) DETERMINATION OF WAGES ABOVE CONTRIBU9 TION AND BENEFIT BASE AFTER 2024.— 

10 (1) AMENDMENTS TO THE INTERNAL REVENUE

11 CODE OF 1986.—Section 3121 of the Internal Rev12 enue Code of 1986 is amended— 

13 (A) in subsection (a)(1), by inserting ‘‘the 

14 applicable percentage (determined under sub15 section (c)(1)) of’’ before ‘‘that part of the re16 muneration’’, and 

17 (B) in subsection (c), by striking ‘‘(c) IN18 CLUDED AND EXCLUDED SERVICE.—For pur19 poses of this chapter, if’’ and inserting the fol20 lowing: 

21 ‘‘(c) SPECIAL RULES FOR WAGES AND EMPLOY22 MENT.— 

23 ‘‘(1) APPLICABLE PERCENTAGE OF REMUNERA24 TION IN DETERMINING WAGES.—For purposes of 

25 paragraph (1) of subsection (a), the applicable perVerDate Sep 11 2014 23:32 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S4877.IS S4877

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1 centage for a calendar year, in connection with any 

2 calendar year referred to in such paragraph, shall be 

3 the percentage determined in accordance with the 

4 following table: 

The applicable 

‘‘In the case of: percentage is: 

Calendar year 2025 ..................................................................... 86

Calendar year 2026 ..................................................................... 71

Calendar year 2027 ..................................................................... 57

Calendar year 2028 ..................................................................... 43

Calendar year 2029 ..................................................................... 29

Calendar year 2030 ..................................................................... 14

Calendar years after 2030 ........................................................... 0. 

5 ‘‘(2) INCLUDED AND EXCLUDED SERVICE.—For 

6 purposes of this chapter, if’’. 

7 (2) AMENDMENTS TO THE SOCIAL SECURITY

8 ACT.—Section 209 of the Social Security Act (42 

9 U.S.C. 409) is amended— 

10 (A) in subsection (a)(1)— 

11 (i) in subparagraph (I)— 

12 (I) by inserting ‘‘and before 

13 2025’’ after ‘‘1974’’; and 

14 (II) by inserting ‘‘and’’ after the 

15 semicolon; and 

16 (ii) by adding at the end the following 

17 new subparagraph: 

18 ‘‘(J) The applicable percentage (deter19 mined under subsection (l)) of that part of re20 muneration which, after remuneration (other 

21 than remuneration referred to in the succeeding 


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1 subsections of this section) equal to the con2 tribution and benefit base (determined under 

3 section 230) with respect to employment has 

4 been paid to an individual during any calendar 

5 year after 2024 with respect to which such con6 tribution and benefit base is effective, is paid to 

7 such individual during such calendar year;’’; 

8 and 

9 (B) by adding at the end the following new 

10 subsection: 

11 ‘‘(l) For purposes of subparagraph (J) of subsection 

12 (a)(1), the applicable percentage for a calendar year, in 

13 connection with any calendar year referred to in such sub14 paragraph, shall be the percentage determined in accord15 ance with the following table: 

The applicable 

‘‘In the case of: percentage is: 

Calendar year 2025 ..................................................................... 86

Calendar year 2026 ..................................................................... 71

Calendar year 2027 ..................................................................... 57

Calendar year 2028 ..................................................................... 43

Calendar year 2029 ..................................................................... 29

Calendar year 2030 ..................................................................... 14

Calendar years after 2030 ........................................................... 0.’’. 

16 (3) EFFECTIVE DATE.—The amendments made 

17 by this subsection shall apply with respect to remu18 neration paid in calendar years after 2024. 

19 (b) DETERMINATION OF SELF-EMPLOYMENT IN20 COME ABOVE CONTRIBUTION AND BENEFIT BASE AFTER

21 2024.— 


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1 (1) AMENDMENTS TO THE INTERNAL REVENUE

2 CODE OF 1986.—Section 1402 of the Internal Rev3 enue Code of 1986 is amended— 

4 (A) in subsection (b)(1), by inserting ‘‘an 

5 amount equal to the applicable percentage (as 

6 determined under subsection (d)(2)) of’’ before 

7 ‘‘that part of the net earnings from self-employ8 ment’’, and 

9 (B) in subsection (d)— 

10 (i) by striking ‘‘(d) EMPLOYEE AND

11 WAGES.—The term’’ and inserting the fol12 lowing: 

13 ‘‘(d) RULES AND DEFINITIONS.— 

14 ‘‘(1) EMPLOYEE AND WAGES.—The term’’, and 

15 (ii) by adding at the end the fol16 lowing: 

17 ‘‘(2) APPLICABLE PERCENTAGE OF NET EARN18 INGS FROM SELF-EMPLOYMENT IN DETERMINING

19 SELF-EMPLOYMENT INCOME.—For purposes of para20 graph (1) of subsection (b), the applicable percent21 age for a taxable year beginning in any calendar 

22 year referred to in such paragraph shall be the per23 centage determined in accordance with the following 

24 table: 

The applicable 

‘‘In the case of: percentage is: 

Calendar year 2025 ..................................................................... 86


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The applicable 

‘‘In the case of: percentage is: 

Calendar year 2026 ..................................................................... 71

Calendar year 2027 ..................................................................... 57

Calendar year 2028 ..................................................................... 43

Calendar year 2029 ..................................................................... 29

Calendar year 2030 ..................................................................... 14

Calendar years after 2030 ........................................................... 0.’’. 

1 (2) AMENDMENTS TO THE SOCIAL SECURITY

2 ACT.—Section 211 of the Social Security Act (42 

3 U.S.C. 411) is amended— 

4 (A) in subsection (b)— 

5 (i) in paragraph (1)(I)— 

6 (I) by striking ‘‘or’’ after the 

7 semicolon; and 

8 (II) by inserting ‘‘and before 

9 2025’’ after ‘‘1974’’; 

10 (ii) by redesignating paragraph (2) as 

11 paragraph (3); and 

12 (iii) by inserting after paragraph (1) 

13 the following new paragraph: 

14 ‘‘(2) For any taxable year beginning in any cal15 endar year after 2024, an amount equal to the appli16 cable percentage (as determined under subsection 

17 (l)) of that part of net earnings from self-employ18 ment which is in excess of (A) an amount equal to 

19 the contribution and benefit base (determined under 

20 section 230) that is effective for such calendar year, 


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1 minus (B) the amount of the wages paid to such in2 dividual during such taxable year; or’’; and 

3 (B) by adding at the end the following: 

4 ‘‘(l) For purposes of paragraph (2) of subsection (b), 

5 the applicable percentage for a taxable year beginning in 

6 any calendar year referred to in such paragraph, shall be 

7 the percentage determined in accordance with the fol8 lowing table: 

The applicable 

‘‘In the case of: percentage is: 

Calendar year 2025 ..................................................................... 86

Calendar year 2026 ..................................................................... 71

Calendar year 2027 ..................................................................... 57

Calendar year 2028 ..................................................................... 43

Calendar year 2029 ..................................................................... 29

Calendar year 2030 ..................................................................... 14

Calendar years after 2030 ........................................................... 0.’’. 

9 (3) EFFECTIVE DATE.—The amendments made 

10 by this subsection shall apply with respect to taxable 

11 years beginning during or after calendar year 2025. 

12 SEC. 202. INCLUSION OF SURPLUS EARNINGS IN SOCIAL SE13 CURITY BENEFIT FORMULA. 

14 (a) INCLUSION OF SURPLUS AVERAGE INDEXED

15 MONTHLY EARNINGS IN DETERMINATION OF PRIMARY

16 INSURANCE AMOUNTS.— 

17 (1) IN GENERAL.—Section 215(a)(1)(A) of the 

18 Social Security Act (42 U.S.C. 415(a)(1)(A)) is 

19 amended— 


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1 (A) in clauses (i), (ii), and (iii), by insert2 ing ‘‘basic’’ before ‘‘average indexed monthly 

3 earnings’’ each place it appears; 

4 (B) in clause (ii), by striking ‘‘and’’ at the 

5 end; and 

6 (C) by inserting after clause (iii) the fol7 lowing new clauses: 

8 ‘‘(iv) 3 percent of the individual’s surplus aver9 age indexed monthly earnings to the extent such 

10 surplus average indexed monthly earnings do not ex11 ceed the excess of the amount established for purposes of this clause by subparagraph (B) over 1 12 ⁄12

13 of the contribution and benefit base for the last of 

14 such individual’s computation base years, and 

15 ‘‘(v) 0.25 percent of the sum of the individual’s 

surplus average indexed monthly earnings plus 1 16 ⁄12

17 of the contribution and benefit base for the last of 

18 such individual’s computation base years, to the ex19 tent such sum exceeds the amount established for 

20 purposes of clause (iv) by subparagraph (B).’’. 

21 (2) BEND POINT FOR SURPLUS EARNINGS.— 

22 Section 215(a)(1)(B) of such Act (42 U.S.C. 

23 415(a)(1)(B)) is amended— 

24 (A) in clause (ii), by striking ‘‘the amounts 

25 so established’’ and inserting ‘‘the amounts esVerDate Sep 11 2014 23:32 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S4877.IS S4877

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1 tablished for purposes of clauses (i) and (ii) of 

2 subparagraph (A)’’; 

3 (B) by redesignating clause (iii) as clause 

4 (v); 

5 (C) in clause (v) (as redesignated), by in6 serting ‘‘or (iv)’’ after ‘‘clause (ii)’’; and 

7 (D) by inserting after clause (ii) the fol8 lowing new clauses: 

9 ‘‘(iii) For individuals who initially become eligible for 

10 old-age or disability insurance benefits, or who die (before 

11 becoming eligible for such benefits), in the calendar year 

12 2023, the amount established for purposes of clause (iv) 

13 of subparagraph (A) shall be $8,933. 

14 ‘‘(iv) For individuals who initially become eligible for 

15 old-age or disability insurance benefits, or who die (before 

16 becoming eligible for such benefits), in any calendar year 

17 after 2023, the amount established for purposes of clause 

18 (iv) of subparagraph (A) shall equal the product of the 

19 amount established with respect to the calendar year 2023 

20 under clause (iii) of this subparagraph and the quotient 

21 obtained by dividing— 

22 ‘‘(I)(aa) the national average wage index (as de23 fined in section 209(k)(1)) for the second calendar 

24 year preceding the calendar year for which the de25 termination is made, or 


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1 ‘‘(bb) if higher (and if such second calendar 

2 year is after 2023), the highest national average 

3 wage index (as so defined) for any calendar year be4 fore such second calendar year, by 

5 ‘‘(II) the national average wage index (as so de6 fined) for 2018.’’. 

7 (b) BASIC AIME AND SURPLUS AIME.— 

8 (1) BASIC AIME.—Section 215(b)(1) of such 

9 Act (42 U.S.C. 415(b)(1)) is amended— 

10 (A) by inserting ‘‘basic’’ before ‘‘average’’; 

11 and 

12 (B) in subparagraph (A), by striking 

13 ‘‘paragraph (3)’’ and inserting ‘‘paragraph 

14 (3)(A)’’ and by inserting before the comma the 

15 following: ‘‘to the extent such total does not ex16 ceed the contribution and benefit base for the 

17 applicable year’’. 

18 (2) SURPLUS AIME.— 

19 (A) IN GENERAL.—Section 215(b)(1) of 

20 such Act (as amended by paragraph (1)) is 

21 amended— 

22 (i) by redesignating subparagraphs 

23 (A) and (B) as clauses (i) and (ii), respec24 tively; 


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1 (ii) by inserting ‘‘(A)’’ after ‘‘(b)(1)’’; 

2 and 

3 (iii) by adding at the end the fol4 lowing new subparagraph: 

5 ‘‘(B)(i) An individual’s surplus average indexed 

6 monthly earnings shall be equal to the quotient obtained 

7 by dividing— 

8 ‘‘(I) the total (after adjustment under para9 graph (3)(B)) of such individual’s surplus earnings 

10 (determined under clause (ii)) for such individual’s 

11 benefit computation years (determined under para12 graph (2)), by 

13 ‘‘(II) the number of months in those years. 

14 ‘‘(ii) For purposes of clause (i) and paragraph (3)(B), 

15 an individual’s surplus earnings for a benefit computation 

16 year are the total of such individual’s wages paid in and 

17 self-employment income credited to such benefit computa18 tion year, to the extent such total (before adjustment 

19 under paragraph (3)(B)) exceeds the contribution and 

20 benefit base for such year.’’. 

21 (B) CONFORMING AMENDMENT.—The 

22 heading for section 215(b) of such Act is 

23 amended by striking ‘‘Average Indexed Monthly 

24 Earnings’’ and inserting ‘‘Basic Average InVerDate Sep 11 2014 23:32 Aug 28, 2024 Jkt 049200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S4877.IS S4877

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1 dexed Monthly Earnings; Surplus Average In2 dexed Monthly Earnings’’. 

3 (3) ADJUSTMENT OF SURPLUS EARNINGS FOR

4 PURPOSES OF DETERMINING SURPLUS AIME.—Sec5 tion 215(b)(3) of such Act (42 U.S.C. 415(b)(3)) is 

6 amended— 

7 (A) in subparagraph (A), by striking ‘‘sub8 paragraph (B)’’ and inserting ‘‘subparagraph 

9 (C)’’ and by inserting ‘‘and determination of 

10 basic average indexed monthly income’’ after 

11 ‘‘paragraph (2)’’; 

12 (B) by redesignating subparagraph (B) as 

13 subparagraph (C); and 

14 (C) by inserting after subparagraph (A) 

15 the following new subparagraph: 

16 ‘‘(B) For purposes of determining under paragraph 

17 (1)(B) an individual’s surplus average indexed monthly 

18 earnings, the individual’s surplus earnings (described in 

19 paragraph (2)(B)(ii)) for a benefit computation year shall 

20 be deemed to be equal to the product of— 

21 ‘‘(i) the individual’s surplus earnings for such 

22 year (as determined without regard to this subpara23 graph), and 

24 ‘‘(ii) the quotient described in subparagraph 

25 (A)(ii).’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply with respect to individuals who ini3 tially become eligible (within the meaning of section 

4 215(a)(3)(B) of the Social Security Act) for old-age or dis5 ability insurance benefits under title II of the Social Secu6 rity Act, or who die (before becoming eligible for such ben7 efits), in any calendar year after 2024. 

Æ 


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