I 

112TH CONGRESS 

1ST SESSION H. R. 3758 

To ensure that seniors, veterans, and people with disabilities who receive 

Social Security and certain other Federal benefits receive a $250 payment in the event that no cost-of-living adjustment is payable in a 

calendar year. 

IN THE HOUSE OF REPRESENTATIVES 

DECEMBER 20, 2011 

Ms. RICHARDSON introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Transportation and Infrastructure and Veterans’ Affairs, for a period to be 

subsequently determined by the Speaker, in each case for consideration 

of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To ensure that seniors, veterans, and people with disabilities 

who receive Social Security and certain other Federal 

benefits receive a $250 payment in the event that no 

cost-of-living adjustment is payable in a calendar year. 

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 ‘‘Social Security Safety 

5 Dividend Act’’. 


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1 SEC. 2. PAYMENT IN LIEU OF A COST-OF-LIVING ADJUST2 MENT TO RECIPIENTS OF SOCIAL SECURITY, 

3 SUPPLEMENTAL SECURITY INCOME, RAIL4 ROAD RETIREMENT BENEFITS, AND VET5 ERANS DISABILITY COMPENSATION OR PEN6 SION BENEFITS. 

7 (a) AUTHORITY TO MAKE PAYMENTS.— 

8 (1) ELIGIBILITY.— 

9 (A) IN GENERAL.—The Secretary of the 

10 Treasury shall disburse, out of any funds in the 

11 Treasury of the United States not otherwise ap12 propriated, a cash payment equal to $250 for 

13 each non-COLA year of a program providing 

14 benefit payments described in clause (i), (ii), or 

15 (iii) of subparagraph (C) or in subparagraph 

16 (D) to each individual who, for any month dur17 ing such year, is entitled to such benefit pay18 ment. 

19 (B) NON-COLA YEAR.—For purposes of 

20 this section, the term ‘‘non-COLA year’’ means, 

21 in connection with a program referred to in 

22 subparagraph (A), a 12-month period for 

23 which— 

24 (i) a cost-of-living adjustment is gen25 erally provided under such program in re26 lation to an index specified in section 


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1 215(i) of the Social Security Act (42 

2 U.S.C. 415(i)); and 

3 (ii) such an adjustment does not take 

4 effect by reason of the performance of such 

5 index. 

6 (C) BENEFIT PAYMENT DESCRIBED.—For 

7 purposes of subparagraph (A): 

8 (i) TITLE II BENEFIT.—A benefit pay9 ment described in this clause is a monthly 

10 insurance benefit payable (without regard 

11 to sections 202(j)(1) and 223(b) of the So12 cial Security Act (42 U.S.C. 402(j)(1), 

13 423(b))) under— 

14 (I) section 202(a) of such Act 

15 (42 U.S.C. 402(a)); 

16 (II) section 202(b) of such Act 

17 (42 U.S.C. 402(b)); 

18 (III) section 202(c) of such Act 

19 (42 U.S.C. 402(c)); 

20 (IV) section 202(d)(1)(B)(ii) of 

21 such Act (42 U.S.C. 

22 402(d)(1)(B)(ii)); 

23 (V) section 202(e) of such Act 

24 (42 U.S.C. 402(e)); 


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1 (VI) section 202(f) of such Act 

2 (42 U.S.C. 402(f)); 

3 (VII) section 202(g) of such Act 

4 (42 U.S.C. 402(g)); 

5 (VIII) section 202(h) of such Act 

6 (42 U.S.C. 402(h)); 

7 (IX) section 223(a) of such Act 

8 (42 U.S.C. 423(a)); 

9 (X) section 227 of such Act (42 

10 U.S.C. 427); or 

11 (XI) section 228 of such Act (42 

12 U.S.C. 428). 

13 (ii) RAILROAD RETIREMENT BEN14 EFIT.—A benefit payment described in this 

15 clause is a monthly annuity or pension 

16 payment payable (without regard to section 

17 5(a)(ii) of the Railroad Retirement Act of 

18 1974 (45 U.S.C. 231d(a)(ii))) under— 

19 (I) section 2(a)(1) of such Act 

20 (45 U.S.C. 231a(a)(1)); 

21 (II) section 2(c) of such Act (45 

22 U.S.C. 231a(c)); 

23 (III) section 2(d)(1)(i) of such 

24 Act (45 U.S.C. 231a(d)(1)(i)); 


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1 (IV) section 2(d)(1)(ii) of such 

2 Act (45 U.S.C. 231a(d)(1)(ii)); 

3 (V) section 2(d)(1)(iii)(C) of such 

4 Act to an adult disabled child (45 

5 U.S.C. 231a(d)(1)(iii)(C)); 

6 (VI) section 2(d)(1)(iv) of such 

7 Act (45 U.S.C. 231a(d)(1)(iv)); 

8 (VII) section 2(d)(1)(v) of such 

9 Act (45 U.S.C. 231a(d)(1)(v)); or 

10 (VIII) section 7(b)(2) of such Act 

11 (45 U.S.C. 231f(b)(2)) with respect to 

12 any of the benefit payments described 

13 in clause (i) of this subparagraph. 

14 (iii) VETERANS BENEFIT.—A benefit 

15 payment described in this clause is a com16 pensation or pension payment payable 

17 under— 

18 (I) section 1110, 1117, 1121, 

19 1131, 1141, or 1151 of title 38, 

20 United States Code; 

21 (II) section 1310, 1312, 1313, 

22 1315, 1316, or 1318 of title 38, 

23 United States Code; 


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1 (III) section 1513, 1521, 1533, 

2 1536, 1537, 1541, 1542, or 1562 of 

3 title 38, United States Code; or 

4 (IV) section 1805, 1815, or 1821 

5 of title 38, United States Code, 

6 to a veteran, surviving spouse, child, or 

7 parent as described in paragraph (2), (3), 

8 (4)(A)(ii), or (5) of section 101, title 38, 

9 United States Code. 

10 (D) SSI CASH BENEFIT DESCRIBED.—A 

11 SSI cash benefit described in this subparagraph 

12 is a cash benefit payable under section 1611 

13 (other than under subsection (e)(1)(B) of such 

14 section) or 1619(a) of the Social Security Act 

15 (42 U.S.C. 1382, 1382h). 

16 (2) REQUIREMENT.—A payment shall be made 

17 under paragraph (1) only to individuals who reside 

18 in 1 of the 50 States, the District of Columbia, 

19 Puerto Rico, Guam, the United States Virgin Is20 lands, American Samoa, or the Northern Mariana 

21 Islands, or who are utilizing a foreign or domestic 

22 Army Post Office, Fleet Post Office, or Diplomatic 

23 Post Office address. For purposes of the preceding 

24 sentence, the determination of the individual’s resi25 dence shall be based on the address of record, as of 


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1 the date of certification under subsection (b) for a 

2 payment under this section under a program speci3 fied in paragraph (1). 

4 (3) NO DOUBLE PAYMENTS.—An individual 

5 shall be paid only 1 payment for any non-COLA 

6 year under this section, regardless of whether the in7 dividual is entitled to, or eligible for, more than 1 

8 benefit or cash payment described in paragraph (1). 

9 (4) LIMITATION.—A payment under this section 

10 shall not be made (or, in the case of subparagraph 

11 (D), shall not be due)— 

12 (A) in the case of an individual entitled to 

13 a benefit specified in paragraph (1)(B)(i) or 

14 paragraph (1)(B)(ii)(VIII) if, for any month 

15 within the 12-month period ending with the 

16 month of payment, such individual’s benefit 

17 under such paragraph was not payable by rea18 son of subsection (x) or (y) of section 202 the 

19 Social Security Act (42 U.S.C. 402) or section 

20 1129A of such Act (42 U.S.C. 1320a–8a); 

21 (B) in the case of an individual entitled to 

22 a benefit specified in paragraph (1)(B)(iii) if, 

23 for any month within the 12-month period end24 ing with the month of payment, such individ25 ual’s benefit under such paragraph was not 


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1 payable, or was reduced, by reason of section 

2 1505, 5313, or 5313B of title 38, United 

3 States Code; 

4 (C) in the case of an individual entitled to 

5 a benefit specified in paragraph (1)(C) if, for 

6 any month within the 12-month period ending 

7 with the month of payment, such individual’s 

8 benefit under such paragraph was not payable 

9 by reason of subsection (e)(1)(A) or (e)(4) of 

10 section 1611 (42 U.S.C. 1382) or section 

11 1129A of such Act (42 U.S.C. 1320a–8a); or 

12 (D) in the case of any individual whose 

13 date of death occurs— 

14 (i) before the date of the receipt of 

15 the payment; or 

16 (ii) in the case of a direct deposit, be17 fore the date on which such payment is de18 posited into such individual’s account. 

19 In the case of any individual whose date of 

20 death occurs before a payment is negotiated (in 

21 the case of a check) or deposited (in the case 

22 of a direct deposit), such payment shall not be 

23 due and shall not be reissued to the estate of 

24 such individual or to any other person. 


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1 (5) TIMING AND MANNER OF PAYMENTS.—The 

2 Secretary of the Treasury shall commence disbursing 

3 payments under this section at the earliest prac4 ticable date for any non-COLA year prior to April 

5 1 following such year. The Secretary of the Treasury 

6 may disburse any payment electronically to an indi7 vidual in such manner as if such payment was a 

8 benefit payment or cash benefit to such individual 

9 under the applicable program described in subpara10 graph (B) or (C) of paragraph (1). 

11 (b) IDENTIFICATION OF RECIPIENTS.—The Commis12 sioner of Social Security, the Railroad Retirement Board, 

13 and the Secretary of Veterans Affairs shall certify the in14 dividuals entitled to receive payments under this section 

15 for each non-COLA year and provide the Secretary of the 

16 Treasury with the information needed to disburse such 

17 payments. A certification of an individual shall be unaf18 fected by any subsequent determination or redetermina19 tion of the individual’s entitlement to, or eligibility for, a 

20 benefit specified in subparagraph (B) or (C) of subsection 

21 (a)(1) (except that such certification shall be affected by 

22 a determination that an individual is an individual de23 scribed in subparagraph (A), (B), (C), or (D) of sub24 section (a)(4) during a period described in such subpara25 graphs). 


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1 (c) TREATMENT OF PAYMENTS.— 

2 (1) PAYMENT TO BE DISREGARDED FOR PUR3 POSES OF ALL FEDERAL AND FEDERALLY ASSISTED

4 PROGRAMS.—A payment under subsection (a) shall 

5 not be regarded as income and shall not be regarded 

6 as a resource for the month of receipt and the fol7 lowing 9 months, for purposes of determining the 

8 eligibility of the recipient (or the recipient’s spouse 

9 or family) for benefits or assistance, or the amount 

10 or extent of benefits or assistance, under any Fed11 eral program or under any State or local program fi12 nanced in whole or in part with Federal funds. 

13 (2) PAYMENT NOT CONSIDERED INCOME FOR

14 PURPOSES OF TAXATION.—A payment under sub15 section (a) shall not be considered as gross income 

16 for purposes of the Internal Revenue Code of 1986. 

17 (3) PAYMENTS PROTECTED FROM ASSIGN18 MENT.—The provisions of sections 207 and 

19 1631(d)(1) of the Social Security Act (42 U.S.C. 

20 407, 1383(d)(1)), section 14(a) of the Railroad Re21 tirement Act of 1974 (45 U.S.C. 231m(a)), and sec22 tion 5301 of title 38, United States Code, shall 

23 apply to any payment made under subsection (a) as 

24 if such payment was a benefit payment or cash ben25 efit to such individual under the applicable program 


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1 described in subparagraph (B) or (C) of subsection 

2 (a)(1). 

3 (4) PAYMENTS SUBJECT TO OFFSET.—Notwith4 standing paragraph (3)— 

5 (A) any payment made under this section 

6 shall, in the case of a payment of a direct de7 posit which is made after the date of the enact8 ment of this Act, be subject to the reclamation 

9 provisions under subpart B of part 210 of title 

10 31, Code of Federal Regulations (relating to 

11 reclamation of benefit payments); and 

12 (B) any payment made under this section 

13 shall not, for purposes of section 3716 of title 

14 31, United States Code, be considered a benefit 

15 payment or cash benefit made under the appli16 cable program described in subparagraph (B) 

17 or (C) of subsection (a)(1), and all amounts 

18 paid shall be subject to offset to collect delin19 quent debts. 

20 (d) PAYMENT TO REPRESENTATIVE PAYEES AND FI21 DUCIARIES.— 

22 (1) IN GENERAL.—In any case in which an in23 dividual who is entitled to a payment under sub24 section (a) and whose benefit payment or cash ben25 efit described in paragraph (1) of that subsection is 


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1 paid to a representative payee or fiduciary, the pay2 ment under subsection (a) shall be made to the indi3 vidual’s representative payee or fiduciary and the en4 tire payment shall be used only for the benefit of the 

5 individual who is entitled to the payment. 

6 (2) APPLICABILITY.— 

7 (A) PAYMENT ON THE BASIS OF A TITLE

8 II OR SSI BENEFIT.—Section 1129(a)(3) of the 

9 Social Security Act (42 U.S.C. 1320a–8(a)(3)) 

10 shall apply to any payment made on the basis 

11 of an entitlement to a benefit specified in para12 graph (1)(B)(i) or (1)(C) of subsection (a) in 

13 the same manner as such section applies to a 

14 payment under title II or XVI of such Act. 

15 (B) PAYMENT ON THE BASIS OF A RAIL16 ROAD RETIREMENT BENEFIT.—Section 13 of 

17 the Railroad Retirement Act (45 U.S.C. 231l) 

18 shall apply to any payment made on the basis 

19 of an entitlement to a benefit specified in para20 graph (1)(B)(ii) of subsection (a) in the same 

21 manner as such section applies to a payment 

22 under such Act. 

23 (C) PAYMENT ON THE BASIS OF A VET24 ERANS BENEFIT.—Sections 5502, 6106, and 

25 6108 of title 38, United States Code, shall 


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1 apply to any payment made on the basis of an 

2 entitlement to a benefit specified in paragraph 

3 (1)(B)(iii) of subsection (a) in the same manner 

4 as those sections apply to a payment under that 

5 title. 

Æ 


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