Federal Legislation

Introduction

For more than 70 million Americans, Social Security provides an essential source of retirement, disability, and survivor income. One of the program’s most important features is the annual Cost-of-Living Adjustment (COLA), which is intended to help benefits keep pace with inflation.

A recently introduced proposal in Congress the Social Security 2100 Act would make a significant change to the way future COLAs are calculated. According to a recent overview published by FinanceBuzz, the legislation would replace the current inflation index used for Social Security with one that many advocates believe more accurately reflects the spending patterns of older Americans. If enacted, retirees could receive modestly larger annual benefit increases over time.