The bill proposes significant changes to the Social Security program, beginning with reforms to how cost-of-living adjustments (COLAs) are determined. It mandates the Bureau of Labor Statistics to create and publish a new Consumer Price Index for Elderly Consumers (CPI-E) , which will specifically track the spending patterns of individuals aged 62 and older. This CPI-E would then be adopted for calculating future Social Security COLAs, aiming to provide more accurate benefit increases for beneficiaries. Furthermore, the legislation addresses contribution and benefit fairness by modifying the treatment of high earners. Starting after 2025, it introduces a phased-in approach to subject a portion of wages and self-employment income above the current Social Security contribution and benefit base to taxation. This "applicable percentage" of income above the cap will gradually decrease from 86% in 2026 to 0% after 2031, effectively taxing a portion of higher incomes for Social Security. Concurrently, the bill amends the Social Security benefit formula to include these "surplus earnings" in the calculation of primary insurance amounts. For individuals becoming eligible after 2025, a new "surplus average indexed monthly earnings" component will be added, contributing a small percentage (3% and 0.25%) to their overall benefit. This ensures that higher contributions from earnings above the cap are partially reflected in increased benefits.