India, Sept. 9 -- An old Social Security idea is getting fresh attention. A proposal from 1987 would give every Social Security beneficiary the same dollar increase in benefits each year instead of giving everyone the same percentage increase.

The idea was proposed by former Democratic Rep. Tim Penny of Minnesota in 1987. His proposal was called a "flat-rate COLA." Under the proposal, the dollar increase would be based on the COLA received by a beneficiary at the 20th percentile. Everyone would then get that same dollar increase, regardless of how much they normally receive. The issue is becoming more important because Social Security is facing a serious funding problem.

AARP estimates that 80% of Social Security beneficiaries could see...