S. 5042 — Social Security 2100 Act

This section increases the primary insurance amount replacement rate for the lowest earnings band to 93 percent (from 90 percent) for monthly Social Security benefits payable in calendar years 2027 through 2036. It directs the Commissioner of Social Security to recompute primary insurance amounts as needed to implement the change and to revert it after 2036, and provides that the increase does not trigger automatic cost-of-living adjustments.

This section requires Social Security cost-of-living adjustments to be calculated using the higher of the Consumer Price Index for Urban Wage Earners and Clerical Workers or the Consumer Price Index for Elderly Consumers for determinations made with respect to cost-of-living computation quarters ending December 31 of calendar years 2027 through 2036. It directs the Bureau of Labor Statistics to publish the CPI-E for individuals age 62 and older, applies the same higher-index rule to pre-1979 law, and requires recomputation of primary insurance amounts and other benefit levels after 2036 to restore the prior methodology.

This section establishes an alternative minimum primary insurance amount for individuals becoming eligible for old-age or disability insurance benefits (or dying before eligibility) after 2026. The amount equals the greater of the existing minimum or a percentage of one-twelfth of the annual poverty guideline for a single individual (initially the 2026 guideline, then adjusted by national average wage growth), with the percentage rising from 6.25 percent for 11 years of work to 125 percent for 30 or more years. The change applies only to monthly benefits payable in calendar years 2027 through 2036, after which the Commissioner of Social Security must recompute affected primary insurance amounts.

This section raises the income thresholds for including Social Security benefits in gross income to $35,000 (from $25,000) for single filers and $50,000 (from $32,000) for joint returns, and applies an inclusion rate of up to 85 percent of benefits received. The changes apply only to taxable years beginning after December 31, 2026, and before January 1, 2037, and hold the Federal Hospital Insurance Trust Fund harmless for resulting revenue changes.

This section revises the calculation of widow's and widower's insurance benefits under the Social Security Act to equal the greater of the deceased individual's primary insurance amount or 75 percent of the sum of the survivor's own old-age or disability benefit and the deceased's primary insurance amount, subject to a cap based on a hypothetical average-wage earner. The changes apply to benefits payable for months in calendar years 2027 through 2036.

This section increases monthly Social Security insurance benefits for qualified beneficiaries beginning in the 16th year after the applicable year of eligibility, with the increase equal to 20 percent of a calculated full increase amount (5 percent of a primary insurance amount based on the national average wage index) in year 16, rising by 20 percentage points each year to 100 percent in year 20 or later. The increase applies to old-age, disability, spouse, child, and survivor benefits for months in calendar years 2027 through 2036, with the earliest applicable year of eligibility used when an individual qualifies for multiple benefits.

This section establishes deemed wages for Social Security benefit calculations after December 2026 for individuals who provide at least 960 hours of unpaid care in a qualifying year to a dependent relative (a child under age 12 or a chronically dependent family member needing assistance with at least two activities of daily living). It deems wages equal to 50 percent of the national average wage index (reduced by half of any actual earnings) for up to five such years, selected to maximize benefits, and directs the Commissioner of Social Security to issue implementing regulations within one year.

This section eliminates the five-month waiting period for Social Security disability insurance benefits under section 223(a) and for benefits for disabled surviving spouses under section 202. The change applies to individuals whose period of disability begins in calendar years 2027 through 2036, with transition rules that deem the waiting period to end in December 2026 for those affected before 2027 and adjust its length after 2036.

This section replaces the termination of Social Security Disability Insurance benefits, child’s benefits, and widow’s and widower’s benefits after a period of trial work with a gradual offset that reduces each benefit by $1 for every $2 of monthly earnings above the substantial gainful activity threshold established for blind individuals. It applies the offset to months in calendar years 2027 through 2036, eliminates the extended period of eligibility and work-related termination of hospital insurance benefits, and authorizes the Commissioner to adjust Ticket to Work employment network payment requirements.

This section extends Social Security child's insurance benefits to unmarried qualifying post-secondary school students in at least half-time attendance at a post-secondary educational institution until they attain age 26. It defines qualifying post-secondary school students and post-secondary educational institutions, updates related eligibility and termination rules for full-time elementary or secondary school students through age 22, and adjusts transition and nonattendance provisions.

This section expands eligibility for child's insurance benefits under the Social Security Act to children living with grandparents or other first- through fifth-degree relatives of the insured individual or spouse. It requires the child to have lived with the relative in the United States and received at least half the child's support from that relative for at least 12 months beginning before age 18 (or substantially all of the first year for infants under 12 months), with no living natural or adoptive parent or a court order granting custody to the relative. The changes apply to benefits payable for months in calendar years 2027 through 2036.

This section modifies computation of Social Security primary insurance amounts to use the highest national average wage index from any calendar year before the second preceding year (if higher) when determining benefits for individuals who become eligible or die after 2026. It makes a conforming change to the reduction of disability insurance benefits based on other earnings.

This section deems title II Social Security benefits not to exceed the amounts that would have been determined without the amendments made by title I of this Act, for purposes of establishing eligibility for and the amount of SSI benefits, Medicaid medical assistance, and CHIP child health assistance. It applies the same pre-amendment primary insurance amounts for months in 2027 through 2036 when calculating primary insurance amounts after December 2036.

This section repeals the annual limitation on wages subject to Social Security payroll taxes under FICA after 2026, making all remuneration for employment taxable under sections 3101(a) and 3111(a). It repeals the corresponding limitation on net earnings from self-employment under SECA for taxable years beginning after December 31, 2026. It increases the national average wage index by 0.5 percent for calendar years 2027 through 2032, rising gradually to 0.9 percent after 2048.

This section adds a fourth tier to the Social Security primary insurance amount formula, applying a 1 percent factor to an individual’s average indexed monthly earnings above one-twelfth of the contribution and benefit base for the applicable year. The change applies to remuneration paid after calendar year 2026 and net earnings from self-employment in taxable years beginning after December 31, 2026.

This section imposes a 12.4 percent tax on the net investment income of individuals, estates, and trusts above a $400,000 social security contribution threshold amount, in addition to the existing 3.8 percent Medicare tax above the Medicare contribution threshold amounts of $250,000 for joint filers or surviving spouses and $200,000 otherwise. The changes apply to taxable years beginning after December 31, 2026.

This section establishes the Social Security Trust Fund by merging the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund into a single fund, effective the first calendar year after enactment. It redirects into the new fund 100 percent of payroll taxes under IRC chapter 21 (other than sections 3101(b) and 3111(b)), self-employment taxes under chapter 2 (other than section 1401(b)), and the net investment income tax portions under section 1411(a)(1)(B) and (2)(B). The section requires the annual trustees report to include separate actuarial analyses of benefit costs for disabled beneficiaries and their auxiliaries, retired beneficiaries and their auxiliaries, and survivor beneficiaries. It also continues the existing Board of Trustees as the board for the new fund.

This section requires the Commissioner of Social Security to maintain the Social Security Administration’s total full-time workforce at no fewer than the level employed as of January 19, 2025.

This section prohibits the Commissioner of Social Security from closing, consolidating, or imposing new limits on access to field or hearing offices or resident stations on or after the date of enactment, except for temporary emergency closures, until 180 days after submission of a required report to the House Ways and Means and Senate Finance Committees (not earlier than January 21, 2029). It then requires the Commissioner to provide 120 days’ public notice (including direct mail and community postings), conduct at least two public hearings separated by at least 10 days, and publish detailed justifications—including criteria for selection, transportation and communication burdens on elderly and disabled individuals, and a cost-benefit analysis covering savings, replacement costs, employee effects, and service continuity—before any future closure, consolidation, or access limitation.

This section prohibits political appointees and special government employees from accessing Social Security beneficiary data systems, including the Numident file, Master Beneficiary Record, Supplemental Security Income Record, National Disability Determination Services File, and Earnings Recording and Self-Employment Income System. It authorizes individuals to sue the United States or other persons for negligent unauthorized access or disclosure of their information, with damages equal to the greater of $5,000 per violation or actual damages plus punitive damages for gross negligence, plus costs and attorneys’ fees. It requires the Social Security Administration Inspector General to investigate each violation, treat related violations as one when appropriate, and report to Congress within 30 days with a description of the violation and a risk assessment.

This section prohibits rendering a social security account number non-verified or invalid except upon evidence of death, identity theft, fraud, or to correct an administrative error, using subregulatory criteria in effect on January 19, 2025. It authorizes civil actions for the greater of $5,000 or actual plus punitive damages plus fees, requires Inspector General investigations with reports to Congress within 30 days, mandates notifications of charges or disciplinary actions, and directs a GAO study within one year on the effects of these changes, all effective for violations on or after enactment.

This section limits recovery of Social Security overpayments not due to fraud or similar fault by capping reductions in monthly benefits at 10 percent of the payable amount, unless the recipient requests a higher rate. The limit applies to overpayments outstanding on or after the date of enactment.

This section prohibits the Commissioner of Social Security from holding any other office or position in the Government of the United States, except as otherwise required by law.

This section requires the Commissioner of Social Security to mail Social Security account statements provided upon request unless the individual elects electronic delivery for that request. It also requires mandatory annual statements to be sent by mail but deems the mailing requirement satisfied if the individual elects electronic delivery only in response to an annual inquiry from the Commissioner. These changes apply to statements required on or after January 1, 2027.

This section revises the maximum fee for representation agreements under section 206(a)(2)(A) of the Social Security Act by substituting, for agreements entered into on or after the date of enactment, the greater of the prior calendar year’s amount or the product (rounded to the nearest dollar) of $4,000 and the ratio of the national average wage index for the second preceding year to the 1989 index. It requires the Commissioner of Social Security to publish the applicable amount in the Federal Register by November 1 of each year after 2025 for the succeeding calendar year, with a one-time transition publication for the portion of 2026 after enactment.