I

103D CONGRESS

2D SESSION H. R. 4373

To amend the Social Security Act to provide for limitations on cost-ofliving adjustments.

IN THE HOUSE OF REPRESENTATIVES

MAY 10, 1994

Mr. PENNY (for himself, Ms. MARGOLIES-MEZVINSKY, Mr. MEEHAN, and Mr.

LEVY) introduced the following bill; which was referred jointly to the

Committees on Ways and Means, Veterans’ Affairs, and Energy and

Commerce

A BILL

To amend the Social Security Act to provide for limitations

on cost-of-living adjustments.

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 COLA

5 Limitation Act of 1994’’.

6 SEC. 2. LIMITATIONS ON COST-OF-LIVING ADJUSTMENTS.

7 (a) IN GENERAL.—

8 (1) REDUCTION IN INCREASES APPLIED TO

9 HIGHER PRIMARY INSURANCE AMOUNTS.—Section
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1 215(i)(2)(A) of the Social Security Act (42 U.S.C.

2 415(i)(2)(A)) is amended—

3 (A) by redesignating clause (iii) as clause

4 (vii); and

5 (B) in clause (ii), by striking ‘‘The in6 crease shall’’ in the matter following subclause

7 (III) and all that follows through ‘‘Any in8 crease’’ and inserting the following:

9 ‘‘(iii) With respect to the amounts described in

10 subclauses (I) and (III) of clause (ii), the increase shall

11 be derived by multiplying each of such amounts (including

12 each of those amounts as previously increased under this

13 subparagraph) by the applicable increase percentage.

14 ‘‘(iv) With respect to primary insurance amounts de15 scribed in subclause (II) of clause (ii), the increase shall

16 be derived by—

17 ‘‘(I) multiplying each of such amounts (includ18 ing each such amount as previously increased under

19 this subparagraph) by the applicable increase per20 centage,

21 ‘‘(II) determining among all such amounts as

22 increased under subclause (I) the greatest primary

23 insurance amount which is below the 20th percentile

24 of such amounts, and
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1 ‘‘(III) reducing each primary insurance amount

2 as increased under subclause (I) to the sum of such

3 amount determined as if there had been no reduc4 tion in such amount under this subclause in any pre5 ceding year and the amount of the increase under

6 subclause (I) in the primary insurance amount de7 scribed in subclause (II).

8 ‘‘(v) Any amount increased under clause (iii) or

9 clause (iv) which is not a multiple of $0.10 shall be de10 creased to the next lower multiple of $0.10.

11 ‘‘(vi) Any increase’’.

12 (2) CONFORMING AMENDMENT.—The last sen13 tence of section 215(a)(4) of such Act (42 U.S.C.

14 415(a)(4)) is amended, in subclause (I), by striking

15 ‘‘clause (iii) of subsection (i)(2)(A)’’ and inserting

16 ‘‘clause (vii) of subsection (i)(2)(A)’’.

17 (b) CONFORMING AMENDMENTS TO MAINTAIN CUR18 RENT LEVELS OF COST-OF-LIVING ADJUSTMENT UNDER

19 OTHER PROGRAMS.—

20 (1) SUPPLEMENTAL SECURITY INCOME FOR

21 THE AGED, BLIND, AND DISABLED.—Section

22 1617(a)(2) of the Social Security Act (42 U.S.C.

23 1382f(a)(2)) is amended by striking ‘‘by the same

24 percentage’’ and all that follows through ‘‘percent25 age,’’ and inserting the following: ‘‘by the applicable
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1 increase percentage (within the meaning of section

2 215(i)(1)(C)) used in determining the amount by

3 which benefit amounts under title II are increased

4 for such month’’.

5 (2) SUPPLEMENTARY MEDICAL INSURANCE.—

6 Section 1839(a)(3)(B) of such Act (42 U.S.C.

7 1395r(a)(3)(B)) is amended by striking ‘‘by a per8 centage’’ and all that follows through ‘‘November 1’’

9 and inserting the following: ‘‘by the applicable in10 crease percentage (within the meaning of section

11 215(i)(1)(C)) used in determining the amount by

12 which benefit amounts under title II are increased

13 for the month of December preceding the year of the

14 promulgation’’.

15 (3) CERTAIN VETERAN’S BENEFITS.—Section

16 3112 of title 38, United States Code, is amended—

17 (A) in subsection (a), by striking ‘‘by the

18 same percentage by which such benefit amounts

19 are increased’’ and inserting ‘‘by the applicable

20 increase percentage (within the meaning of sec21 tion 215(i)(1)(C) of such Act) used in deter22 mining the amount by which such benefit

23 amounts are increased’’; and

24 (B) in subsection (b)(1), by striking ‘‘by

25 the same percentage as the percentage by which
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1 such benefit amounts are increased’’ and insert2 ing ‘‘by the applicable increase percentage

3 (within the meaning of section 215(i)(1)(C) of

4 such Act) used in determining the amount by

5 which such benefit amounts are increased’’.

6 (4) COST-OF-LIVING ADJUSTMENTS TO LIMITA7 TIONS ON BENEFITS AND CONTRIBUTIONS UNDER

8 QUALIFIED PLANS.—Subsection (d) of section 415 of

9 the Internal Revenue Code of 1986 (relating to cost10 of-living adjustments) is amended by striking ‘‘sec11 tion 215(i)(2)(A)’’ and inserting ‘‘section

12 215(i)(2)(A)(iii)’’.

13 (c) AMENDMENT TO PRIOR APPLICABLE LAW.—Sec14 tion 215(i)(4) of the Social Security Act (42 U.S.C.

15 415(i)(4)) is amended by adding at the end the following

16 new sentence: ‘‘The Secretary shall provide by regulation

17 for the continued application of this subsection as in effect

18 in December 1978 as provided by the preceding provisions

19 of this paragraph and the amendments referred to therein.

20 Such regulations shall provide for the application of the

21 amendments to the preceding provisions of this subsection

22 made by section 2 of the Social Security Solvency En23 hancement Act of 1994 so as to have the same effect on

24 the corresponding provisions of this subsection as in effect
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1 in December 1978 and applicable in accordance with this

2 paragraph.’’.

3 SEC. 3. EFFECTIVE DATE.

4 The amendments made by this Act shall apply with

5 respect to adjustments under section 215(i) of the Social

6 Security Act effective with months after November 1994.

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