The "Protecting and Preserving Social Security Act" proposes significant changes to the old-age, survivors, and disability insurance program. It mandates the creation and use of a new Consumer Price Index for Elderly Consumers (CPI-E) by the Bureau of Labor Statistics to calculate future cost-of-living adjustments (COLAs). This change aims to better reflect the spending patterns of individuals aged 62 or older, potentially leading to more accurate annual benefit increases. Importantly, any resulting benefit increases would not impact eligibility for Supplemental Security Income (SSI) or Medicaid. A major component of the bill addresses the Social Security contribution and benefit base, or tax cap. Starting in 2026, it would gradually subject a portion of wages and self-employment income above this cap to Social Security contributions, with the percentage increasing annually until all earnings above the cap are taxed after 2031. To ensure fairness, the bill also modifies the Social Security benefit formula to include these newly taxed "surplus earnings." While these surplus earnings would be factored into benefits, they would be at a significantly lower rate (3% for a portion, then 0.25% for higher amounts) compared to earnings below the cap. This dual approach aims to increase program revenue while providing a modest benefit increase for higher earners' additional contributions.