Bill
S 5042
The bill would strengthen Social Security by increasing benefits, reforming the COLA, expanding eligibility (including caregivers and dependents), and expanding funding through hig
Purpose and intent
Key provisions and changes
Title I — Strengthening Benefits
- Sec. 101 Across-the-board benefit increase
- Increases the primary benefit floor: adjust from 90% to 93% of the Primary Insurance Amount (PIA) for benefits, effective 2027–2036; authorities recompute PIA as needed for accuracy during the transition.
- Sec. 102 More accurate COLA
- Establishes using the higher of CPI-W or CPI-E (elderly index) for COLA, with a process to apply either index if it yields a higher COLA. Also requires publication of a CPI-E index and provides transitional rules and impact timing through 2036.
- Sec. 103 Increasing minimum benefit for long-term low earners
- Adds an enhanced minimum benefit for individuals with long work histories, including an explicit table of gradual increases based on years of work, with a structured formula tying increases to the PIA and poverty measures.
- Sec. 104 Increasing income inclusion thresholds
- Raises income inclusion thresholds for Social Security benefits in taxable income calculations, and adjusts base amounts for tax purposes.
- Sec. 105 Improving benefits for widows/widowers in two-income households
- Reforms widow(er) benefits to provide stronger, more uniform options (including adjustments to PIA-based benefits and survivor options) and introduces a 9th provision addressing special cases.
- Sec. 106 Increasing benefits after 15 years of eligibility
- Adds an entitlement for a long-term beneficiary increase (a graduated, year-by-year boost) after 16th year of eligibility, with a detailed structure for how much the boost would be and how it scales (up to 20th year and beyond).
- Sec. 107 Caregiver credits
- Creates a new “deemed wages” credit for caregivers of dependents, allowing years of caregiving to count toward Social Security eligibility and benefit calculations, subject to certification standards.
- Sec. 108 Eliminating the 5-month waiting period for disability benefits
- Removes the waiting period and accelerates monthly disability benefits to start in the first month of disability; also adjusts survivor and dependent provisions similarly.
- Sec. 109 Gradual offset for disability beneficiaries with earnings
- Introduces a phased approach to offset earnings against disability benefits, including changes to trial work periods and gradual reductions, with protections to avoid abrupt benefit loss.
- Sec. 110 Extending the child’s benefit for post-secondary students under 26
- Extends eligibility for dependent child benefits to qualifying post-secondary students up to age 26 (with definitions of “qualifying post-secondary student” and transitional rules).
- Sec. 111 Expanding benefits for children living with grandparents/relatives
- Improves access to benefits for children who live with and are supported by grandparents or other relatives, updating definitions and eligibility criteria.
- Sec. 112 Preventing unintended drops in benefits tied to NAEI
- Modifies computation rules to prevent benefit reductions due to National Average Wage Index fluctuations; introduces protections around COLA and NAEI references.
- Sec. 113 Harmless treatment of SSI, Medicaid, and CHIP
- Ensures SSI, Medicaid, and CHIP determinations do not inadvertently reduce Title II benefits, protecting beneficiaries.
Title II — Strengthening the Trust Fund
- Sec. 201 Repeal of wage base limit after 2026
- Repeals the cap on the Social Security wage base for FICA/SECA beyond 2026, expanding taxable earnings for Social Security funding.
- Sec. 202–203 Tax and benefit integration
- Includes higher earnings in the benefit formula and applies Social Security tax to net investment income (and related revenue provisions).
- Sec. 204 Establishing the Social Security Trust Fund
- Creates or formalizes a dedicated trust fund structure to manage and protect increased revenues and benefit obligations.
Title III — Strengthening Service Delivery
- Sec. 301–308 Provisions to rebuild and protect service delivery
- Rebuild customer service workforce, keep field offices open, protect SSA data, prevent invalid account number actions, address improper withdrawals, prohibit dual office-holding, clarify statements mailing rules, and ensure access to professional representation.
Who would be affected
Procedural and timeline aspects
Note: This summary highlights substantive provisions; the bill contains detailed definitions, transition rules, and conforming amendments across multiple sections.
Compiled from official sources — confirm details with the bill’s official record.
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