"Progressive price-indexing" is a variation on the benefit formula change described above. It has received considerable attention from the President and other privatization advocates as a means to reduce guaranteed benefits over time in conjunction with private accounts. Under a proposal from business executive Robert Pozen, benefits for low-wage workers would continue to be calculated as they are today (with initial benefits based on the rise in wages); benefits for middle income workers would be calculated based partly on wages and partly on prices to produce a moderate decrease over time; and high income beneficiaries' initial benefits would be calculated based entirely on prices.

While the idea of withholding Social Security from the wealthy may seem logical, "progressive price indexing" would in fact reduce benefits significantly for many average families, weakening an important safety net for the middle class. In addition, by eroding the value of Social Security benefits over time for a large number of beneficiaries, the proposal could jeopardize popular support for the program.

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