+1 on the phenolic. And a new seal isn't just for holding fluid in. It's an integral, functioning part of the braking system. If it doesn't grip the piston, deform under pressure and then return to normal shape when released, the brake won't work properly. A fresh seal in a clean groove will provide the needed elasticity.
Also, if your piston is frozen, the caliper arm is also probably stuck. Take it off, pull the pivot pin out and re-grease it. The arm must swing freely left and right on that pivot pin on order for the system to work, but the pin gets rusty so easily, being rarely moved and located so close to the ground.