The COLA is designed to help Social Security benefits keep pace with inflation and is based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), specifically the average increase in prices during July, August, and September compared to the same period the previous year. The Social Security 2100 Act would increase benefits by an additional 2%, raise the minimum benefit for qualifying long-term beneficiaries to 125% of the federal poverty level, and shift the COLA calculation from CPI-W to CPI-E, a measure that better reflects spending patterns for older Americans. Social Security checks could rise by about $78 a month in 2027 based on current COLA projections, but the increase mainly reflects higher living costs rather than improved buying power.