Summary Measures and Graphs

Description of Proposed Provision:
A9: For single/head-of-household/married-filing-separate taxpayers with modified adjusted gross income (MAGI) below $110,800 and for joint filers with MAGI below $221,500 for December 2026 ($85,000 and $170,000 multiplied by estimated CPI-U for 2018-2026), use the chain-weighted version of the Consumer Price Index for All Urban Consumers (C-CPI-U) to calculate the cost-of-living adjustment (COLA), beginning with the December 2026 COLA. For those beneficiaries whose MAGI is above these thresholds, provide no COLA. Use prior tax year income data for this determination. Use the chain-weighted CPI for the COLA for years prior to benefit receipt. Index the eligibility income threshold amounts to the CPI-U after December 2026.

Estimates based on the intermediate assumptions of the 2024 Trustees Report
Summary Measures
Current law
[percent of payroll]		 Change from current law
[percent of payroll]		 Shortfall eliminated
Long-range
actuarial
balance		 Annual
balance in
75th year		 Long-range
actuarial
balance		 Annual
balance in
75th year		 Long-range
actuarial
balance		 Annual
balance in
75th year
-3.50 -4.64 1.30 2.27 37% 49%

graph of OASDI cost rates and income rates by year, under current law and provision. click on graph to view underlying data. graph of OASDI trust fund ratio by year, under current law and provision. click on graph to view underlying data.