What This Bill Does
This bill changes how Social Security benefits increase each year for people receiving benefits. Instead of using a general price index, the bill says Social Security should use a price index (a measure of how much things cost) specifically designed for elderly consumers.
Who It Affects
Social Security beneficiaries receive the main impact from this bill. The Bureau of Labor Statistics (the government agency that tracks prices) must prepare and publish information needed to carry out this law.
Key Provisions
• Social Security will use the Consumer Price Index for Elderly Consumers (CPI-E) instead of the regular Consumer Price Index when calculating yearly increases to benefits (Sec. 2(a))
• The Bureau of Labor Statistics must prepare and publish the Consumer Price Index for Elderly Consumers for each calendar month starting when this law takes effect (Sec. 2(c))
• The changes apply to cost-of-living computation quarters ending on or after September 30, 2024 (Sec. 2(d))
What Changes
The method for calculating Social Security benefit increases switches to use a price index based on the spending patterns of elderly consumers. This could result in different yearly benefit increase amounts compared to the current method.
Important Definitions
Consumer Price Index for Elderly Consumers (CPI-E): A measure published by the Bureau of Labor Statistics showing how prices change for things elderly people buy.
Effective Date
September 30, 2024, or the first date after that when a yearly benefit increase is calculated.
I
118TH CONGRESS
1ST SESSION H. R. 1688
To provide an emergency cost-of-living increase for social security
beneficiaries, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 21, 2023
Mr. SMITH of New Jersey introduced the following bill; which was referred
to the Committee on Ways and Means, and in addition to the Committee
on Education and the Workforce, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To provide an emergency cost-of-living increase for social
security beneficiaries, and for other purposes.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Social Security Cost
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of Living Increase Act of 2023’’.
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•HR 1688 IH
SEC. 2. COMPUTATION OF COST-OF-LIVING INCREASES
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BASED ON CONSUMER PRICE INDEX FOR EL-
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DERLY CONSUMERS.
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(a) IN GENERAL.—Section 215(i)(1) of the Social Se-
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curity Act (42 U.S.C. 415(i)(1)) is amended by adding
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at the end the following new subparagraph:
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‘‘(H) the term ‘Consumer Price Index’ means
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the Consumer Price Index for Elderly Consumers
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(CPI–E, as published by the Bureau of Labor Sta-
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tistics of the Department of Labor).’’.
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(b) APPLICATION TO PRE-1979 LAW.—
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(1) IN GENERAL.—Section 215(i)(1) of the So-
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cial Security Act as in effect in December 1978, and
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as applied in certain cases under the provisions of
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such Act as in effect after December 1978, is
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amended by adding at the end the following new
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subparagraph:
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‘‘(D) the term ‘Consumer Price Index’ means
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the Consumer Price Index for Elderly Consumers
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(CPI–E, as published by the Bureau of Labor Sta-
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tistics of the Department of Labor).’’.
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(2) CONFORMING CHANGE.—Section 215(i)(4)
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of the Social Security Act (42 U.S.C. 415(i)(4)) is
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amended—
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(A) by striking ‘‘and by section 9001’’ and
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inserting ‘‘, section 9001’’; and
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•HR 1688 IH
(B) by inserting ‘‘and section 3 of the So-
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cial Security Cost of Living Increase Act of
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2023,’’ after ‘‘1986,’’.
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(c) PUBLICATION OF CONSUMER PRICE INDEX FOR
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ELDERLY CONSUMERS.—The Bureau of Labor Statistics
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of the Department of Labor shall prepare and publish the
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index authorized by section 191 of the Older Americans
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Amendments Act of 1987 (29 U.S.C. 2 note) for each cal-
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endar month, beginning with the date of enactment of this
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Act, and such index shall be known as the ‘‘Consumer
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Price Index for Elderly Consumers’’.
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(d) EFFECTIVE DATE.—The amendments made by
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subsection (a) shall apply to determinations made with re-
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spect to cost-of-living computation quarters (as defined in
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section 215(i)(1)(B) of the Social Security Act (42 U.S.C.
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415(i)(1)(B))) ending on or after September 30, 2024.
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Æ
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