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.

February 3, 2005

Ms. CANTWELL introduced the following bill; which was read twice and referred to the Committee on Finance

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.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Consumer Price Index for Elderly Consumers Act'.

SEC. 2. CONSUMER PRICE INDEX FOR ELDERLY CONSUMERS.

(a) In General- The Bureau of Labor Statistics of the Department of Labor shall prepare and publish an index for each calendar month to be known as the `Consumer Price Index for Elderly Consumers' that indicates changes over time in expenditures for consumption which are typical for individuals in the United States who are 62 years of age or older.

(b) Effective Date- Subsection (a) shall apply with respect to calendar months ending on or after July 31 of the calendar year following the calendar year in which this Act is enacted.

(c) Authorization of Appropriations- There are authorized to be appropriated such sums as are necessary to carry out the provisions of this section.

SEC. 3. COMPUTATION OF COST-OF-LIVING INCREASES FOR SOCIAL SECURITY BENEFITS.

(a) In General- Section 215(i) of the Social Security Act (42 U.S.C. 415(i)) is amended--

(1) in paragraph (1)(G), by inserting before the period the following: `, and, solely with respect to any monthly insurance benefit payable under this title to an individual who has attained age 62, effective for adjustments under this subsection to the primary insurance amount on which such benefit is based (or to any such benefit under section 227 or 228) occurring after such individual attains such age, the applicable Consumer Price Index shall be deemed to be the Consumer Price Index for Elderly Consumers and such primary insurance amount shall be deemed adjusted under this subsection using such Index'; and

(2) in paragraph (4), by striking `and by section 9001' and inserting `, by section 9001', and by inserting after `1986,' the following: `and by section 3(a) of the Consumer Price Index for Elderly Consumers Act,'.

(b) Conforming Amendments in Applicable Former Law- Section 215(i)(1)(C) of the Social Security Act, as in effect in December 1978 and applied in certain cases under the provisions of such Act in effect after December 1978, is amended by inserting before the period the following: `, and, solely with respect to any monthly insurance benefit payable under this title to an individual who has attained age 62, effective for adjustments under this subsection to the primary insurance amount on which such benefit is based (or to any such benefit under section 227 or 228) occurring after such individual attains such age, the applicable Consumer Price Index shall be deemed to be the Consumer Price Index for Elderly Consumers and such primary insurance amount shall be deemed adjusted under this subsection using such Index'.

(c) Effective Date- The amendments made by this section shall apply to determinations made by the Commissioner of Social Security under section 215(i)(2) of the Social Security Act (42 U.S.C. 415(i)(2)) with respect to cost-of-living computation quarters ending on or after September 30 of the second calendar year following the calendar year in which this Act is enacted.

END