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HR 9415

Safeguarding American Families and Expanding Social Security Act of 2026

119th Congress Introduced by Lateefah Simon

The bill strengthens Social Security by boosting benefits through a revised PIA formula, adding surplus earnings, and using CPI-E for higher, more targeted cost-of-living increases

Introduced in House
1
WeVote Research Nonpartisan
Bill Summary · HR 9415

Overview

  • Bill: HR 9415, the Safeguarding American Families and Expanding Social Security Act of 2026
  • Purpose: Improve retirement security by increasing Social Security benefits for current and future beneficiaries and strengthen the program for future generations.
  • Introduced: June 23, 2026 by Rep. Latheus (assumed; sponsor listed as Ms. Simon). Referred to Ways and Means and Education and Workforce.
  • Target: Social Security in the United States, with changes to taxable wage/base rules, benefit calculations, and cost-of-living adjustments.

Key Provisions and Changes

1) Determination of Taxable Wages and Self-Employment Income Above the Contribution and Benefit Base After 2025

  • Applies to both wages and self-employment income when computing Social Security taxes/benefits.
  • Internal Revenue Code amendments (Sections 3121 and related) establish an “applicable percentage” of remuneration for determining taxable wages:
    • 2026: 80% of remuneration counted toward the Social Security base.
    • 2027–2029: 60% (80% minus 20 percentage points).
    • 2030 and beyond: 0% (effectively ending the inclusion above the base).
  • Parallel changes to the Social Security Act (Section 209 and new subsection (l)) set the same applicable percentages for benefits determinations tied to earnings above the contribution and benefit base.
  • Effective date: Applies to remuneration paid in calendar years after 2025.

2) Determination of Taxable Self-Employment Income Above the Contribution and Benefit Base After 2025

  • Mirrors wage changes for self-employment income:
    • 2026: 80% of net earnings above the base counted for taxation.
    • 2027–2029: 60% (reduction by 20 points from prior year).
    • 2030 onward: 0%.
  • Implemented via amendments to the Internal Revenue Code (Section 1402) and Social Security Act (Section 211) with a new subsection (l) defining the annual applicable percentage.
  • Effective date: Tax years beginning after 2025.

3) Adjustments to Primary Insurance Amount (PIA) Formula and Inclusion of Surplus Earnings

  • Increases the weight of lower earnings in calculating PIA:
    • Section 215(a)(1)(A)(i): Increase factor from 90% to 95% for the lowest-earning portion used to determine PIA.
  • Inclusion of “surplus average indexed monthly earnings” (surplus AIME) in benefit determinations:
    • Adds a new component to base earners’ calculations: 5% of surplus AIME earnings.
    • Redefines and expands references to “basic” average earnings in the calculation and introduces surplus earnings mechanics.
  • Changes to the AIME framework:
    • Reconfigures how surplus earnings are computed and incorporated into AIME.
    • Sets rules for recomputing benefits for individuals who became eligible before 2026 (Section 215(f) new paragraph (10)):
    • Social Security to recompute PIA as if the new formula had applied, with rounding rules and safeguards to retain a beneficiary’s higher prior benefit if recomputation would lower it.
  • Effective date: Applies to individuals who become eligible after 2030 or die before eligibility after 2030.

4) Cost-of-Living Adjustments (COLA) and Consumer Price Index for Elderly Consumers

  • Reforms the COLA computation:
    • Updates index used to adjust benefits to the Consumer Price Index for Elderly Consumers (CPI-E) for adjustments related to the primary insurance amount and benefits under sections 227 or 228.
    • Clarifies adjustments under 215(i) to use CPI-E as the basis for cost-of-living increases.
  • Establishes a new CPI for Elderly Consumers:
    • Creates a dedicated CPI for elderly expenditures to be used for adjustments.
    • Requires monthly publications by the Bureau of Labor Statistics.
    • Calendar months ending after June 30 of the year the Act is enacted would see these changes phased in.
  • Authorization of appropriations to carry out the CPI-E-related provisions.

Who Is Affected

  • Current and future Social Security beneficiaries, including:
    • Old-age and disability insurance beneficiaries.
    • Dependents and survivors whose benefits are tied to PIA/AIME calculations.
  • Workers and employers due to changes in the wage base and the portion of earnings treated as taxable for Social Security.
  • Individuals with surplus earnings contributing to future PIA calculations via surplus AIME.
  • Beneficiaries impacted by CPI-E-based COLAs.

Procedural and Timeline Highlights

  • Introduction and referral: June 23, 2026; referred to the House Ways and Means and Education and Workforce committees.
  • Effective dates:
    • Provisions related to tax base determinations apply to remuneration and earnings after 2025 (calendar years 2026 onward).
    • Benefit recomputation and new surplus earnings framework apply to eligibility events occurring after 2030.
    • COLA/CPI-E changes apply to adjustments and determinations for months ending after June 30 of the enactment year.
  • Administrative changes:
    • Requires changes to IRS and SSA computations, publishing of CPI-E data, and quarterly/annual adjustments to benefit formulas.

Summary of Impact

  • The bill aims to bolster retirement security by delivering higher initial benefits, incorporating surplus earnings, and enhancing cost-of-living protections using an elderly-focused index.
  • It also introduces a staged adjustment to the taxable portion of wages/self-employment income, gradually reducing the portion counted toward the Social Security base after 2025, culminating in no inclusion from 2030 onward.
  • The combination of higher PIA calculation factors, surplus earnings, and CPI-E-based adjustments seeks to strengthen Social Security for current and future retirees, while changing how earnings are taxed for Social Security purposes.

Compiled from official sources — confirm details with the bill’s official record.

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