A proposal first introduced in 1987 by former Democratic Rep. Tim Penny of Minnesota would replace Social Security's percentage-based cost-of-living adjustment with the same dollar increase for every beneficiary. The annual adjustment would still be calculated using average July-through-September changes in the CPI-W, but the resulting percentage would be applied to the benefit of a recipient at the 20th percentile and then paid uniformly across all benefit levels. Supporters, including the Committee for a Responsible Federal Budget, say the approach would favor lower-income retirees, reduce poverty and allow the program to pay full benefits for two additional years. AARP says 80% of beneficiaries would instead see weaker inflation protection, with the losses compounding as recipients age. Under the proposal, the average beneficiary would have received a $34.20 monthly increase in 2026 rather than the $57.90 increase under the existing formula, a difference of $285 over the year. Social Security's Old-Age and Survivors Insurance Trust Fund is projected to run dry in the fourth quarter of 2032. Without congressional action, incoming payroll taxes would cover 78% of scheduled benefits, implying an estimated 22% reduction under current law. New IRS data shows households reporting at least $100,000 in annual income received 37% of reported Social Security benefits in 2023, although the data excludes many low-income beneficiaries who do not file tax returns and combines retirement, survivor and disability payments. Other policy options include raising or eliminating the taxable wage cap, increasing the full retirement age, reducing benefits for higher-income retirees, means-testing and slowing future benefit growth.