US SB3462

Eliminates the Social Security taxable earnings cap over a 5-year phase-in period (2026-2030), requiring all wages and self-employment income above the current contribution and benefit base to be subject to Social Security taxes at 80% in 2026, decreasing by 20 percentage points annually until fully eliminated in 2030

Increases the primary insurance amount formula factor for the lowest earnings bracket from 90% to 95%, and adds a new 5% factor applied to "surplus average indexed monthly earnings" (earnings above the contribution and benefit base)

Establishes a new "bend point" of $6,300 for 2026 that will increase annually with wage growth, with additional 1% annual increases from 2031-2044 (reaching 15% by 2045) to gradually expand the portion of earnings receiving higher benefit calculations

Requires the Commissioner of Social Security to recompute primary insurance amounts for all beneficiaries who became eligible before January 2026 to reflect the new benefit formula adjustments

Replaces the standard Consumer Price Index with a new "Consumer Price Index for Elderly Consumers" for calculating annual Social Security cost-of-living adjustments, effective for computation quarters ending on or after September 30, 2026