II

106TH CONGRESS

1ST SESSION S. 1247

To develop and apply a Consumer Price Index that accurately reflects the

cost-of-living for older Americans who receive social security benefits

under title II of the Social Security Act.

IN THE SENATE OF THE UNITED STATES

JUNE 21, 1999

Mr. GRAMS introduced the following bill; which was read twice and referred

to the Committee on Banking, Housing, and Urban Affairs

A BILL

To develop and apply a Consumer Price Index that accurately reflects the cost-of-living for older Americans who

receive social security benefits under title II of the Social

Security Act.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Fair Cost of Living

5 Adjustment for Seniors Act of 1999’’.
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1 SEC. 2. IMPROVEMENT OF CONSUMER PRICE INDEX FOR

2 THE ELDERLY BY CONGRESSIONALLY AP3 POINTED REVIEW COMMITTEE.

4 (a) ESTABLISHMENT OF CONSUMER PRICE INDEX

5 REVIEW COMMITTEE.—

6 (1) ESTABLISHMENT.—There is established a

7 review committee to be known as the Consumer

8 Price Index Review Committee (in this section re9 ferred to as the ‘‘Committee’’).

10 (2) MEMBERSHIP.—The Committee shall be

11 composed of 15 members jointly appointed by the

12 leadership of the Senate and the House of Rep13 resentatives of whom—

14 (A) 11 shall be leading experts in the field

15 of economics and, to the extent feasible, famil16 iar with the issues related to the calculation of

17 changes in the cost of living; and

18 (B) 4 shall be representatives of individ19 uals who have attained age 65.

20 (3) TERMS AND VACANCIES.—

21 (A) TERMS.—A member of the Committee

22 appointed under paragraph (2) shall be ap23 pointed for the duration of the Committee.

24 (B) VACANCIES.—

25 (i) IN GENERAL.—A vacancy on the

26 Committee shall be filled in the same man-
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1 ner in which the original appointment was

2 made and shall be subject to any condi3 tions which applied with respect to the

4 original appointment.

5 (ii) FILLING UNEXPIRED TERM.—An

6 individual chosen to fill a vacancy shall be

7 appointed for the duration of the Com8 mittee.

9 (4) INITIAL MEETING.—Not later than 30 days

10 after the date on which all members of the Com11 mittee have been appointed, the Committee shall

12 hold its first meeting.

13 (5) QUORUM.—A majority of the members of

14 the Committee shall constitute a quorum, but a less15 er number of members may hold hearings.

16 (6) CHAIRPERSON AND VICE CHAIRPERSON.—

17 The Committee shall select a Chairperson and Vice

18 Chairperson from among the members appointed

19 under paragraph (2).

20 (b) DUTIES.—

21 (1) STUDY AND DEVELOPMENT OF IMPLEMEN22 TATION PLAN.—

23 (A) IN GENERAL.—The Committee shall

24 conduct a study—
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1 (i) to improve the method for deter2 mining an index, to be known as the ‘‘Con3 sumer Price Index for the Elderly’’;

4 (ii) to make recommendations ad5 dressing the limitations of the method for

6 determining the Experimental Consumer

7 Price Index for the Elderly calculated by

8 the Bureau of Labor Statistics to ensure

9 that the improved index accurately meas10 ures changes over time in expenditures for

11 consumption that are typical for retirees in

12 the United States who receive old-age and

13 survivors insurance benefits under title II

14 of the Social Security Act (42 U.S.C. 401

15 et seq.); and

16 (iii) to develop an implementation

17 plan.

18 (B) STUDY REQUIREMENTS.—The study

19 described in subparagraph (A) shall include the

20 following requirements:

21 (i) The Consumer Price Index for the

22 Elderly shall be based on an accurate mar23 ket basket of goods and services that re24 flect a representative collection of typical

25 purchases by the total retiree population in
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1 the United States who receive old-age and

2 survivors insurance benefits under title II

3 of such Act.

4 (ii) The Consumer Expenditure Sur5 vey used by the Bureau of Labor Statistics

6 to calculate the Experimental Consumer

7 Price Index for the Elderly shall be re-de8 signed and expanded to collect expenditure

9 patterns representative of such total retiree

10 population.

11 (iii) The areas and outlets priced by

12 the Bureau of Labor Statistics to calculate

13 the Experimental Consumer Price Index

14 for the Elderly shall be modified to reflect

15 a representation of the places of purchase

16 for such total retiree population.

17 (iv) The categories of items to be

18 priced shall be selected to represent such

19 total retiree population.

20 (v) The prices collected shall ade21 quately reflect the availability of discount

22 prices for such total retiree population.

23 (vi) Any other limitations otherwise

24 found to affect the accuracy of the Con-
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1 sumer Price Index for the Elderly shall be

2 removed.

3 (C) ADDITIONAL STUDY.—The Committee

4 shall also study the method for determining an

5 accurate consumer price index for individuals

6 who receive disability insurance benefits under

7 title II of such Act.

8 (2) REPORT.—

9 (A) IN GENERAL.—Subject to subpara10 graph (B), not later than 1 year after the ini11 tial meeting of the Committee under subsection

12 (a)(4), the Committee shall submit a report to

13 Congress on the study conducted in accordance

14 with paragraph (1).

15 (B) REQUIRED APPROVAL.—The Com16 mittee shall not submit a report under subpara17 graph (A) unless the report has the approval of

18 at least 9 members of the Committee.

19 (c) POWERS.—

20 (1) HEARINGS.—The Committee may hold such

21 hearings, sit and act at such times and places, take

22 such testimony, and receive such evidence as the

23 Committee considers advisable to carry out the pur24 poses of this section.
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1 (2) INFORMATION FROM FEDERAL AGENCIES.—

2 The Committee may secure directly from any Fed3 eral department or agency such information as the

4 Committee considers necessary to carry out this sec5 tion, including the published and unpublished data

6 and analytical products of the Bureau of Labor Sta7 tistics. Upon request of the Chairperson of the Com8 mittee, the head of such department or agency shall

9 furnish such information to the Committee in a

10 timely manner.

11 (3) POSTAL SERVICES.—The Committee may

12 use the United States mails in the same manner and

13 under the same conditions as other departments and

14 agencies of the Federal Government.

15 (4) GIFTS.—The Committee may accept, use,

16 and dispose of gifts or donations of services or prop17 erty.

18 (d) PERSONNEL MATTERS.—

19 (1) COMPENSATION OF MEMBERS.—Each mem20 ber of the Committee who is not otherwise an officer

21 or employee of the Federal Government shall be

22 compensated at a rate equal to the daily equivalent

23 of the annual rate of basic pay prescribed for level

24 III of the Executive Schedule under section 5315 of

25 title 5, United States Code, for each day (including
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1 travel time) during which such member is engaged

2 in the performance of the duties of the Committee.

3 All members of the Committee who otherwise are of4 ficers or employees of the United States shall serve

5 without compensation in addition to that received for

6 their services as officers or employees of the United

7 States.

8 (2) TRAVEL EXPENSES.—The members of the

9 Committee shall be allowed travel expenses, includ10 ing per diem in lieu of subsistence, at rates author11 ized for employees of agencies under subchapter I of

12 chapter 57 of title 5, United States Code, while

13 away from their homes or regular places of business

14 in the performance of services for the Committee.

15 (3) STAFF.—

16 (A) IN GENERAL.—The Chairperson of the

17 Committee may, without regard to the civil

18 service laws and regulations, appoint and termi19 nate an executive director and such other addi20 tional personnel as may be necessary to enable

21 the Committee to perform its duties. The em22 ployment of an executive director shall be sub23 ject to confirmation by the Committee.

24 (B) COMPENSATION.—The Chairperson of

25 the Committee may fix the compensation of the
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1 executive director and other personnel without

2 regard to the provisions of chapter 51 and sub3 chapter III of chapter 53 of title 5, United

4 States Code, relating to classification of posi5 tions and General Schedule pay rates, except

6 that the rate of pay for the executive director

7 and other personnel may not exceed the rate

8 payable for level IV of the Executive Schedule

9 under section 5316 of such title.

10 (4) DETAIL OF GOVERNMENT EMPLOYEES.—

11 Any Federal Government employee may be detailed

12 to the Committee without additional reimbursement

13 (other than the employee’s regular compensation),

14 and such detail shall be without interruption or loss

15 of civil service status or privilege.

16 (5) PROCUREMENT OF TEMPORARY AND INTER17 MITTENT SERVICES.—The Chairperson of the Com18 mittee may procure temporary and intermittent serv19 ices under section 3109(b) of title 5, United States

20 Code, at rates for individuals which do not exceed

21 the daily equivalent of the annual rate of basic pay

22 prescribed for level V of the Executive Schedule

23 under section 5316 of such title.
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1 (e) TERMINATION.—The Committee shall terminate

2 1 year after the date of the initial meeting of the Com3 mittee under subsection (a)(4).

4 (f) AUTHORIZATION OF APPROPRIATIONS.—There

5 are authorized to be appropriated to the Committee such

6 sums as are necessary to carry out the purposes of this

7 section.

8 SEC. 3. BUREAU OF LABOR STATISTICS PILOT PROGRAM

9 TO TEST CONSUMER PRICE INDEX FOR THE

10 ELDERLY.

11 (a) PILOT PROGRAM.—The Commissioner of the Bu12 reau of Labor Statistics shall establish a pilot program

13 to test the accuracy of an operational index to be rec14 ommended by the Consumer Price Index Review Com15 mittee under section 2 and to be known as the ‘‘Consumer

16 Price Index for the Elderly’’, which indicates changes over

17 time in expenditures for consumption which are typical for

18 retirees in the United States who receive old-age and sur19 vivors insurance benefits under title II of the Social Secu20 rity Act (42 U.S.C. 401 et seq.).

21 (b) DURATION OF PILOT PROGRAM.—The pilot pro22 gram shall commence with the first month that begins

23 after the date of the submission of the report under sec24 tion 2(b)(2) and shall continue through December 2002.
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1 SEC. 4. INTERIM APPLICATION OF CONSUMER PRICE

2 INDEX FOR ALL URBAN CONSUMERS.

3 For cost-of-living computation quarters (as defined in

4 section 215(i)(1)(B) of the Social Security Act (42 U.S.C.

5 415(i)(1)(B)) occurring during the period that begins on

6 January 1, 2000, and ends with the implementation of

7 the Official Consumer Price Index for the Elderly under

8 section 5(b), the Commissioner of Social Security, not9 withstanding section 215(i) of the Social Security Act (42

10 U.S.C. 415(i)) and any regulations promulgated there11 under, shall use the Consumer Price Index for All Urban

12 Consumers to calculate cost-of-living adjustments for ben13 efits described in section 5(b)(1).

14 SEC. 5. APPLICATION OF CONSUMER PRICE INDEX FOR

15 THE ELDERLY.

16 (a) IMPLEMENTATION.—

17 (1) COMMISSIONER OF BUREAU OF LABOR STA18 TISTICS.—

19 (A) IN GENERAL.—Subject to subpara20 graph (B), not later than the fourth year that

21 begins after the Consumer Price Index Review

22 Committee submits the report required under

23 section 2(b)(2), the Commissioner of the Bu24 reau of Labor Statistics shall prepare and pub25 lish monthly the Official Consumer Price Index

26 for the Elderly based on the implementation
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1 plan and recommendations included in that re2 port.

3 (B) NO IMPLEMENTATION IF CONGRES4 SIONAL DISAPPROVAL OF COMMITTEE RE5 PORT.—Subparagraph (A) shall not apply if a

6 joint resolution is enacted, in accordance with

7 paragraph (2), disapproving the report sub8 mitted by the Consumer Price Index Review

9 Committee before the end of the 90-day period

10 that begins on the date on which the Review

11 Committee submits the report.

12 (C) EXCLUSION OF CERTAIN DAYS.—For

13 purposes of subparagraph (B) and paragraph

14 (2), the days on which either House of Con15 gress is not in session because of an adjourn16 ment of more than 3 days to a day certain shall

17 be excluded from the computation of the period.

18 (2) CONGRESSIONAL CONSIDERATION.—

19 (A) TERMS OF THE RESOLUTION.—For

20 purposes of paragraph (1)(A), the term ‘‘joint

21 resolution’’ means only a joint resolution that is

22 introduced within the period described in that

23 paragraph and—

24 (i) that does not have a preamble;
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1 (ii) the matter after the resolving

2 clause of which is as follows: ‘‘That Con3 gress disapproves the report of the Con4 sumer Price Index Review Committee re5 garding the implementation of the Con6 sumer Price Index for the Elderly sub7 mitted on llll.’’, the blank space

8 being filled in with the appropriate date;

9 and

10 (iii) the title of which is as follows:

11 ‘‘Joint resolution disapproving the report

12 of the Consumer Price Index Review Com13 mittee regarding the implementation of the

14 Consumer Price Index for the Elderly.’’.

15 (B) REFERRAL.—A resolution described in

16 subparagraph (A) that is introduced—

17 (i) in the House of Representatives,

18 shall be referred to the Committee on

19 Ways and Means; and

20 (ii) in the Senate, shall be referred to

21 the Committee on Finance.

22 (C) DISCHARGE.—If a committee to which

23 a resolution described in subparagraph (A) is

24 referred has not reported such resolution by the

25 end of the 60-day period beginning on the date
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1 on which the Consumer Price Index Review

2 Committee submits the report required under

3 section 2(b)(2), such committee shall be, at the

4 end of such period, discharged from further

5 consideration of such resolution, and such reso6 lution shall be placed on the appropriate cal7 endar of the House involved.

8 (D) CONSIDERATION.—On or after the

9 third day after the date on which the committee

10 to which a resolution described in subparagraph

11 (A) has reported, or has been discharged from

12 further consideration of such resolution, such

13 resolution shall be considered in the same man14 ner as a resolution is considered under sub15 sections (d), (e), and (f) of section 2908 of the

16 Defense Base Closure and Realignment Act of

17 1990 (10 U.S.C. 2687 note).

18 (b) USE OF INDEX.—For cost-of-living computation

19 quarters (as defined in section 215(i)(1)(B) of the Social

20 Security Act (42 U.S.C. 415(i)(1)(B))) beginning on or

21 after January 1 of the calendar year that begins after the

22 Commissioner of the Bureau of Labor Statistics first pre23 pares and publishes the Official Consumer Price Index for

24 the Elderly in accordance with subsection (a)(1), the Com25 missioner of Social Security shall—
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1 (1) cease using the Consumer Price Index for

2 All Urban Consumers to calculate cost-of-living ad3 justments for old-age and survivors insurance bene4 fits payable under title II of the Social Security Act

5 (42 U.S.C. 401 et seq.) to any retiree or individual

6 who has attained age 62; and

7 (2) notwithstanding section 215(i) of the Social

8 Security Act (42 U.S.C. 415(i)) and any regulations

9 promulgated thereunder, use the Official Consumer

10 Price Index for the Elderly to calculate such adjust11 ments.

12 (c) AUTHORIZATION OF APPROPRIATIONS.—There

13 are authorized to be appropriated to the Bureau of Labor

14 Statistics such sums as are necessary to carry out the pur15 poses of this section.

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