A New Social Security Bill Could Raise Benefits by 2% Starting in 2027

Millions of Social Security recipients could receive larger monthly checks beginning in 2027 under a Democratic proposal that would temporarily increase benefits for current and future beneficiaries.

The Social Security 2100 Act, introduced in the House by Rep. John Larson and in the Senate by Sen. Richard Blumenthal, would change the formula used to calculate Social Security payments. If passed, it could become one of the more important senior benefits changes for retirees watching their monthly income.

How the Social Security 2100 Act would work

Social Security benefits are calculated using a worker's earnings history and a formula that determines their primary insurance amount, or PIA.

The Social Security 2100 Act would temporarily make that formula more generous by increasing the percentage applied to the first portion of a worker's average indexed monthly earnings from 90% to 93%. The change would apply to benefits paid from 2027 through 2036.

Although changing a formula from 90% to 93% might sound like a 3% benefit increase, it doesn't translate directly into a 3% larger check because that percentage applies to only part of the formula used to determine benefits. The change is generally described as providing an across-the-board benefit increase equivalent to roughly 2% of the average benefit.

Importantly, the provision would apply to current beneficiaries as well as people who begin collecting Social Security during that period.

What a 2% increase could add to your check

The exact increase would depend on the size of your existing Social Security benefit. Someone receiving $1,000 per month could see roughly $20 more, while a $1,500 benefit could rise by about $30 and a $2,000 payment by around $40.

Using the June 2026 average retired-worker benefit of $2,084.40, an illustrative 2% increase would equal about $41.69 per month, or roughly $42. That would add about $500 over a full year.

These figures are illustrations rather than predictions because the legislation changes the benefit formula rather than simply adding exactly 2% to every existing check.

The 2% increase would be separate from the annual COLA

The proposed benefit enhancement shouldn't be confused with Social Security's annual cost-of-living adjustment.

Cost-of-living adjustments (COLAs) are intended to help benefits keep pace with inflation. The official 2027 COLA hasn't been determined yet because the Social Security Administration calculates it using inflation data from the third quarter of the year. Current estimates suggest beneficiaries could receive a COLA of more than 3% in 2027, although projections remain subject to change and the final figure won't be known until October.

The Social Security 2100 Act's benefit enhancement would change the underlying formula used to calculate payments. That means beneficiaries could potentially receive both the regular 2027 COLA and the additional increase created by the legislation if it became law.

However, retirees shouldn't budget for either a specific COLA percentage or the proposed legislative increase until they're finalized.

The Social Security benefit would only be temporary

One important detail is that the proposed enhancement isn't permanent. The revised benefit formula would apply to monthly benefits paid during calendar years 2027 through 2036. After that period, the temporary enhancement would expire unless Congress extended it or changed the law.

Ten years is still a substantial period for someone already in retirement. At roughly $42 per month, an illustrative increase based on the June 2026 average benefit would amount to about $504 over one year and just over $5,000 over 10 years, before accounting for subsequent changes to benefits.

The bill includes other ways to increase benefits

The roughly 2% increase is only one part of the Social Security 2100 Act. Larson and Blumenthal also want to replace the current inflation measure used for COLAs with the Consumer Price Index for the Elderly, or CPI-E, which supporters argue better reflects expenses faced by older Americans.

"Meanwhile, Congress reintroduced the Social Security 2100 Act, which would provide long-term relief to seniors losing buying power due to high inflation. The bill would raise benefits by 2%, set the new minimum benefit to 125% of the Federal poverty line, change the COLA calculation to the CPI for the Elderly (CPI-E), and improve the benefits calculation formula," The Senior Citizens League said.

The legislation would also strengthen the minimum benefit for lower-income workers, improve benefits for some widows and widowers, and provide additional help to people who have received benefits for many years. Those provisions mean some recipients could ultimately see a different impact than the roughly 2% across-the-board increase alone suggests.

The Social Security 2100 Act is far from guaranteed

Despite the potential increase, Social Security recipients shouldn't expect larger checks from the legislation yet.

The proposal remains in Congress and would have to advance through committees, pass both the House and Senate, and be signed by the president before any of its benefit changes could take effect.

"Although the Social Security 2100 Act is unlikely to pass in the current Congress, it should. The bill is the gold standard for Social Security reform and accomplishes the majority of changes older Americans want to see for the program," said Shannon Benton, executive director of The Senior Citizens League, in a statement.

Bottom line

The Social Security 2100 Act could give current and future beneficiaries a roughly 2% boost beginning in 2027, with the temporary enhancement remaining in place through 2036.

The bill could therefore provide meaningful additional income over a decade, especially when combined with annual COLAs. However, no increase has been approved yet, and Social Security recipients should continue planning around current law unless Congress ultimately passes the proposal, especially if you are trying to stretch your retirement dollars further.

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