​This article examines the role that the price indexing of benefits has played in creating financing problems, particularly in the short term. The article shows that the use of the consumer price index for indexing probably has overstated the benefit increases necessary to keep the purchasing power of benefits constant and that price indexing is inconsistent with the way benefits are funded. In addition, it discusses modifications of indexing formulas that would help eliminate the current imbalance or avert the development of future financial imbalances.