Social Security Flat Rate COLA Act of 1993

Summary: Social Security Flat Rate COLA Act of 1993 - Amends titles II (Old Age, Survivors and Disability Insurance), XVI (Supplemental Security Income), and XVIII (Medicare) part B (Supplementary Medical Insurance) of the Social Security Act and the veterans' benefits program to make changes in the method of calculating cost of living adjustments (COLAs), basing such COLAs solely on the percentage increase in the Consumer Price Index. 
Amends the Internal Revenue Code with respect to COLAs to limitations on benefits and contributions under qualified plans.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Social Security Flat Rate COLA Act 
of 1993''.

SEC. 2. FLAT RATE COST-OF-LIVING ADJUSTMENT.

    (a) General Rule.--Section 215(i)(2)(A) of the Social Security Act 
(42 U.S.C. 415(i)(2)(A)) is amended--
            (1) by redesignating clause (iii) as clause (v);
            (2) in the matter in clause (ii) following subclause (III), 
        by striking ``The increase'' and all that follows through ``Any 
        increase'' and inserting the following:
    ``(iii) For purposes of subclause (II) of clause (ii), the increase 
shall be derived by adding to each primary insurance amount described 
in such subclause (including each such amount as previously increased 
under this subparagraph) the applicable benefit increase amount. Any 
increase''; and
            (3) by inserting before clause (v) (as redesignated by 
        paragraph (1) of this subsection) the following new clause:
    ``(iv) For purposes of subclauses (I) and (III) of clause (ii), the 
increase shall be derived by multiplying each of the amounts described 
in such subclauses (including each of those amounts as previously 
increased under this subparagraph) by the applicable increase 
percentage. Any amount so increased which is not a multiple of $0.10 
shall be decreased to the next lower multiple of $0.10.''.
    (b) Definitions.--Section 215(i)(1) of such Act (42 U.S.C. 
415(i)(1)) is amended--
            (1) by striking subparagraphs (C) through (G);
            (2) by redesignating subparagraph (H) as subparagraph (E); 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraphs:
            ``(C) the term `applicable increase percentage' means, with 
        respect to any cost-of-living computation quarter, the same 
        percentage (rounded to the nearest \1/10\ of 1 percent) as the 
        percentage by which the Consumer Price Index for that cost-of-
        living computation quarter exceeds such index for the most 
        recent prior calendar quarter which was a base quarter under 
        subparagraph (A)(ii), or, if later, the most recent prior cost-
        of-living computation quarter under subparagraph (B);
            ``(D) the term `applicable benefit increase amount' means, 
        with respect to any increase under this subsection taking 
        effect with the month of December of any year, an amount equal 
        to the product derived by multiplying--
                    ``(i) the average of the primary insurance amounts 
                consisting of that 20 percent of the primary insurance 
                amounts, on the basis of which benefits were paid under 
                this title for November of such year, which were the 
                lowest (which average, if not a multiple of $0.01, 
                shall be rounded to the next lower multiple of $0.01), 
                by
                    ``(ii) the applicable increase percentage,
        which product, if not a multiple of $0.10, shall be rounded to 
        the next lower multiple of $0.10; and''.
    (c) Conforming Amendments.--
            (1) Section 215(i) of such Act (42 U.S.C. 415(i)) is 
        further amended by striking paragraph (5).
            (2) The last sentence of section 215(a)(4) of such Act (42 
        U.S.C. 415(a)(4)) is amended, in subclause (I), by striking 
        ``clause (iii) of subsection (i)(2)(A)'' and inserting ``clause 
        (v) of subsection (i)(2)(A)''.
            (3) Section 708(c) of such Act (42 U.S.C. 909(c)) is 
        amended by striking ``, the `OASDI fund ratio' under section 
        215(i),''.

SEC. 3. CONFORMING AMENDMENTS TO MAINTAIN CURRENT LEVELS OF COST-OF-
              LIVING ADJUSTMENT BASED ON THE CONSUMER PRICE INDEX UNDER 
              OTHER PROGRAMS.

    (a) Supplemental security Income for the Aged, Blind, and 
Disabled.--Section 1617(a)(2) of the Social Security Act (42 U.S.C. 
1382f(a)(2)) is amended by striking ``by the same percentage'' and all 
that follows through ``percentage,'' and inserting the following: ``by 
the applicable increase percentage (within the meaning of section 
215(i)(1)(C)) used in determining the amount by which benefit amounts 
under title II are increased for such month''.
    (b) Supplementary Medical Insurance.--Section 1839(a)(3)(B) of such 
Act (42 U.S.C. 1395r(a)(3)(B)) is amended by striking ``by a 
percentage'' and all that follows through ``November 1'' and inserting 
the following: ``by the applicable increase percentage (within the 
meaning of section 215(i)(1)(C)) used in determining the amount by 
which benefit amounts under title II are increased for the month of 
December preceding the year of the promulgation''.
    (c) Certain Veteran's Benefits.--Section 3112 of title 38, United 
States Code, is amended--
            (1) in subsection (a), by striking ``by the same percentage 
        by which such benefit amounts are increased'' and inserting 
        ``by the applicable increase percentage (within the meaning of 
        section 215(i)(1)(C) of such Act) used in determining the 
        amount by which such benefit amounts are increased''; and
            (2) in subsection (b)(1), by striking ``by the same 
        percentage as the percentage by which such benefit amounts are 
        increased'' and inserting ``by the applicable increase 
        percentage (within the meaning of section 215(i)(1)(C) of such 
        Act) used in determining the amount by which such benefit 
        amounts are increased''.
    (d) Cost-of-Living Adjustments to Limitations on Benefits and 
Contributions Under Qualified Plans.--Subsection (d) of section 415 of 
the Internal Revenue Code of 1986 (relating to cost-of-living 
adjustments) is amended by striking ``section 215(i)(2)(A)'' and 
inserting ``section 215(i)(2)(A)(iv)''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this Act shall apply with respect to 
adjustments under section 215(i) of the Social Security Act effective 
with months after November 1993.