Guaranteed 3 Percent COLA for Seniors Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 3389 To require the establishment of a Consumer Price Index for Elderly Con- sumers to compute cost-of-living increases for Social Security benefits under title II of the Social Security Act and to provide, in the case of elderly beneficiaries under such title, for an annual cost-of-living increase which is not less than 3 percent. IN THE HOUSE OF REPRESENTATIVES JUNE 20, 2019 Mr. ENGEL introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and Labor, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdic- tion of the committee concerned A BILL To require the establishment of a Consumer Price Index for Elderly Consumers to compute cost-of-living increases for Social Security benefits under title II of the Social Security Act and to provide, in the case of elderly bene- ficiaries under such title, for an annual cost-of-living increase which is not less than 3 percent. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 VerDate Sep 11 2014 04:19 Jun 26, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H3389.IH H3389 kjohnson on DSK79L0C42 with BILLS 2 •HR 3389 IH SECTION 1. SHORT TITLE. 1 This Act may be cited as the ‘‘Guaranteed 3 Percent 2 COLA for Seniors Act of 2019’’. 3 SEC. 2. CONSUMER PRICE INDEX FOR ELDERLY CON- 4 SUMERS. 5 (a) IN GENERAL.—The Bureau of Labor Statistics 6 of the Department of Labor shall prepare and publish an 7 index for each calendar month to be known as the ‘‘Con- 8 sumer Price Index for Elderly Consumers’’ that indicates 9 changes over time in expenditures for consumption which 10 are typical for individuals in the United States who are 11 62 years of age or older. 12 (b) EFFECTIVE DATE.—Subsection (a) shall apply 13 with respect to calendar months ending on or after July 14 31 of the calendar year following the calendar year in 15 which this Act is enacted. 16 (c) AUTHORIZATION OF APPROPRIATIONS.—There 17 are authorized to be appropriated such sums as are nec- 18 essary to carry out the provisions of this section. 19 SEC. 3. COMPUTATION OF COST-OF-LIVING INCREASES. 20 (a) IN GENERAL.—Section 215(i) of the Social Secu- 21 rity Act (42 U.S.C. 415(i)) is amended— 22 (1) in paragraph (1)(G), by inserting before the 23 period the following: ‘‘, and, solely with respect to 24 any monthly insurance benefit payable under this 25 title to an individual who has attained age 62, effec- 26 VerDate Sep 11 2014 04:19 Jun 26, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3389.IH H3389 kjohnson on DSK79L0C42 with BILLS 3 •HR 3389 IH tive for adjustments under this subsection to the pri- 1 mary insurance amount on which such benefit is 2 based (or to any such benefit under section 227 or 3 228) occurring after such individual attains such 4 age, the applicable Consumer Price Index shall be 5 the Consumer Price Index for Elderly Consumers 6 and such primary insurance amount shall be ad- 7 justed under this subsection using such Index’’; 8 (2) in paragraph (2)(A)(ii), by adding at the 9 end the following: ‘‘In the case of individuals re- 10 ferred to in subdivision (I) or (II) who have attained 11 age 62, irrespective of whether the Commissioner 12 makes a determination described in the first sen- 13 tence of this clause with respect to the base quarter 14 in any year, effective for adjustments under this 15 subsection to the primary insurance amount on 16 which such individual’s monthly insurance benefit is 17 based occurring after such individual attains such 18 age (or to any such benefit under section 227 or 19 228), the Commissioner shall, effective with the 20 month of December of such year, increase benefit 21 amounts and primary insurance amounts of such in- 22 dividuals under this clause as if such base quarter 23 were a cost of living computation quarter and the 24 applicable increase percentage with respect to such 25 VerDate Sep 11 2014 04:19 Jun 26, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H3389.IH H3389 kjohnson on DSK79L0C42 with BILLS 4 •HR 3389 IH base quarter were equal to the greater of 3 percent 1 or the applicable increase percentage (if any) with 2 respect to such base quarter.’’; and 3 (3) in paragraph (4), by striking ‘‘and by sec- 4 tion 9001’’ and inserting ‘‘, by section 9001’’, and 5 by inserting after ‘‘1986,’’ the following: ‘‘and by 6 section 3 of the Guaranteed 3 Percent COLA for 7 Seniors Act of 2019,’’. 8 (b) CONFORMING AMENDMENTS IN APPLICABLE 9 FORMER LAW.—Section 215(i) of such Act, as in effect 10 in December 1978 and applied in certain cases under the 11 provisions of such Act in effect after December 1978, is 12 amended— 13 (1) in paragraph (1)(C), by inserting before the 14 period the following: ‘‘, and, solely with respect to 15 any monthly insurance benefit payable under this 16 title to an individual who has attained age 62, effec- 17 tive for adjustments under this subsection to the pri- 18 mary insurance amount on which such benefit is 19 based (or to any such benefit under section 227 or 20 228) occurring after such individual attains such 21 age, the applicable Consumer Price Index shall be 22 the Consumer Price Index for Elderly Consumers 23 and such primary insurance amount shall be ad- 24 justed under this subsection using such Index’’; and 25 VerDate Sep 11 2014 04:19 Jun 26, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H3389.IH H3389 kjohnson on DSK79L0C42 with BILLS 5 •HR 3389 IH (2) by adding at the end of paragraph 1 (2)(A)(ii) the following: ‘‘In the case of individuals 2 referred to in the first sentence of this clause who 3 have attained age 62, irrespective of whether the 4 Commissioner makes a determination described in 5 the first sentence of this clause with respect to the 6 base quarter in any year, effective for adjustments 7 under this subsection to the primary insurance 8 amount on which such individual’s monthly insur- 9 ance benefit is based occurring after such individual 10 attains such age (or to any such benefit under sec- 11 tion 227 or 228), the Commissioner shall, effective 12 with the month of December of such year, increase 13 benefit amounts and primary insurance amounts of 14 such individuals under this clause as if such base 15 quarter were a cost of living computation quarter 16 and the percentage referred to in the first sentence 17 of this clause with respect to such base quarter were 18 equal to the greater of 3 percent or the percentage 19 (if any) otherwise referred to in the first sentence of 20 this clause with respect to such base quarter.’’. 21 (c) PROTECTION OF BENEFITS SUBJECT TO THE 22 FAMILY MAXIMUM.—Section 203(a) of the Social Security 23 Act (42 U.S.C. 403(a)) is amended by adding at the end 24 the following new paragraph: 25 VerDate Sep 11 2014 04:19 Jun 26, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H3389.IH H3389 kjohnson on DSK79L0C42 with BILLS 6 •HR 3389 IH ‘‘(11) In determining whether total monthly benefits 1 based on any primary insurance amount exceed the 2 amount permitted under this subsection, the Commis- 3 sioner shall disregard the portion of any benefit otherwise 4 payable to any beneficiary under this title which is attrib- 5 utable to so much of any increases in benefits which would 6 not have occurred but for the application of the last sen- 7 tence of section 215(i)(2)(A)(ii) (or the last sentence of 8 section 215(i)(2)(A)(ii) as in effect in December 1978 (as 9 amended) and applied in certain cases under the provi- 10 sions of such Act in effect after December 1978).’’. 11 (d) RULE OF CONSTRUCTION.—This section and the 12 amendments made thereby shall not be construed as a 13 general benefit increase for purposes of section 215(i) of 14 the Social Security Act (and section 215(i) of such Act 15 as in effect in December 1978 and applied in certain cases 16 under the provisions of such Act in effect after December 17 1978). 18 (e) EFFECTIVE DATE.—The amendments made by 19 this section shall apply to determinations made with re- 20 spect to base quarters ending on or after September 30 21 of the second calendar year following the calendar year 22 in which this Act is enacted. 23 Æ VerDate Sep 11 2014 04:19 Jun 26, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6301 E:\BILLS\H3389.IH H3389 kjohnson on DSK79L0C42 with BILLS