CPI for Seniors Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 2787 To mandate the monthly formulation and publication of a consumer price index specifically for senior citizens for the purpose of establishing an accurate Social Security COLA for such citizens. IN THE HOUSE OF REPRESENTATIVES MAY 16, 2019 Mr. LIPINSKI introduced the following bill; which was referred to the Committee on Education and Labor A BILL To mandate the monthly formulation and publication of a consumer price index specifically for senior citizens for the purpose of establishing an accurate Social Security COLA for such citizens. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘CPI for Seniors Act 4 of 2019’’. 5 SEC. 2. FINDINGS. 6 The Congress finds the following: 7 VerDate Sep 11 2014 04:44 May 29, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H2787.IH H2787 kjohnson on DSK79L0C42 with BILLS 2 •HR 2787 IH (1) Each year the Bureau of Labor Statistics of 1 the Department of Labor prepares and publishes 2 consumer price indices (the most notable being the 3 Consumer Price Index or ‘‘CPI’’) that measure the 4 rate of inflation in the economy of the United 5 States. 6 (2) A derivative of the CPI is used to determine 7 an annual cost-of-living adjustment (hereinafter re- 8 ferred to as ‘‘COLA’’) for millions of senior citizens 9 (individuals aged 62 and over) who depend on their 10 respective Social Security benefits. 11 (3) The Social Security COLA is calculated 12 using the Consumer Price Index for Urban Wage 13 Earners and Clerical Workers (hereinafter referred 14 to as ‘‘CPI–W’’), a subset of the population covered 15 by the Consumer Price Index for All Urban Con- 16 sumers (hereinafter referred to as ‘‘CPI–U’’). 17 (4) While the experimental Consumer Price 18 Index for Americans 62 Years of Age and Older 19 (hereinafter referred to as ‘‘CPI–E’’) is a more ac- 20 curate measure of the average price of consumer 21 goods and services purchased by senior citizens than 22 the CPI–W, it too is derived from the CPI–U. 23 (5) According to numerous credible authorities, 24 the present methods (CPI–U, CPI–W, and CPI–E 25 VerDate Sep 11 2014 04:44 May 29, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H2787.IH H2787 kjohnson on DSK79L0C42 with BILLS 3 •HR 2787 IH to a lesser extent) used to measure inflation are 1 flawed and deficient in measuring the average price 2 of consumer goods and services purchased by senior 3 citizens, and the overall impact of inflation on such 4 citizens. 5 (6) The present sampling regarding senior citi- 6 zens is too small under the methods referred to in 7 paragraph (5), creating an opportunity for sampling 8 error. 9 (7) Prices used under the methods referred to 10 in paragraph (5) are based on geographic areas, re- 11 tail outlets, and sample items used and purchased by 12 younger consumers and are not necessarily rep- 13 resentative of the geographic areas, retail outlets, 14 and sample items used and purchased by senior citi- 15 zens. 16 (8) The locations used under the methods re- 17 ferred to in paragraph (5) are urban locations that 18 do not reflect the economic challenges faced in rural 19 communities, which often have a far larger demo- 20 graphic segment of senior citizens. 21 (9) Senior citizens neither have the flexibility or 22 the ability that younger consumers have to sub- 23 stitute necessary purchases in response to changes 24 VerDate Sep 11 2014 04:44 May 29, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2787.IH H2787 kjohnson on DSK79L0C42 with BILLS 4 •HR 2787 IH in prices, nor the same options as younger con- 1 sumers have to supplement their income. 2 (10) Premium increases for part B of Medicare, 3 part D of Medicare, and other health care costs af- 4 fecting senior citizens are not adequately considered 5 under the methods referred to in paragraph (5). 6 (11) The cost of taxes on Social Security in- 7 come is not considered under the methods referred 8 to in paragraph (5), thus putting senior citizens at 9 a greater economic disadvantage each year. 10 SEC. 3. MANDATE THE MONTHLY FORMULATION AND PUB- 11 LICATION OF A CONSUMER PRICE INDEX FOR 12 SENIORS. 13 (a) ESTABLISHMENT OF NEW CPI.—The Bureau of 14 Labor Statistics of the Department of Labor shall prepare 15 and publish an index monthly to be known as the ‘‘Con- 16 sumer Price Index for Seniors’’ (hereinafter referred to 17 as ‘‘CPI–S’’) that indicates monthly changes in expendi- 18 tures for consumption that are typical for individuals in 19 the United States who are 62 years of age or older. 20 (b) SUBMISSION TO CONGRESS.—The Bureau of 21 Labor Statistics of the Department of Labor shall submit 22 to the Joint Economic Committee a description of the ac- 23 tions taken by such Bureau to meet the requirements of 24 VerDate Sep 11 2014 04:44 May 29, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H2787.IH H2787 kjohnson on DSK79L0C42 with BILLS 5 •HR 2787 IH this section not later than 6 months after the date of en- 1 actment of this Act, and semi-annually thereafter. 2 (c) AUTHORIZATION OF APPROPRIATIONS.—There 3 are authorized to be appropriated such sums as may be 4 necessary to carry out this section. 5 Æ VerDate Sep 11 2014 04:44 May 29, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6301 E:\BILLS\H2787.IH H2787 kjohnson on DSK79L0C42 with BILLS