I

103D CONGRESS

1ST SESSION H. R. 3457

To provide that cost-of-living adjustments to payments made under Federal

law shall be determined using a new price index which does not take

into account tobacco products.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 4, 1993

Mr. SMITH of Michigan (for himself, Mr. ALLARD, Mr. DREIER, Mr. HERGER,

Mr. HOEKSTRA, Mr. JACOBS, Mr. KLINK, Mr. TRAFICANT, Mr. GINGRICH, Mr. COPPERSMITH, and Mr. TORKILDSEN) introduced the following

bill; which was referred jointly to the Committees on Ways and Means,

Armed Services, Education and Labor, Post Office and Civil Service, and

Energy and Commerce

A BILL

To provide that cost-of-living adjustments to payments made

under Federal law shall be determined using a new price

index which does not take into account tobacco products.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. COST-OF-LIVING ADJUSTMENTS TO PAYMENTS

2 MADE UNDER FEDERAL LAW DETERMINED

3 USING PRICE INDEX WHICH DOES NOT TAKE

4 INTO ACCOUNT TOBACCO PRODUCTS.

5 (a) IN GENERAL.—Notwithstanding any other provi6 sion of law, the Consumer Price Index for Government

7 Use (CPI-G) established by subsection (c) shall be used

8 to determine the amount of any cost-of-living or similar

9 adjustment to any payment (including payments referred

10 to in subsection (b)) made under Federal law which is oth11 erwise subject to such an adjustment using any price index

12 which takes into account prices of tobacco products.

13 (b) PAYMENTS AFFECTED.—The payments referred

14 to in this subsection are:

15 (1) Benefits payable under the Social Security

16 Act.

17 (2) Retirement benefits payable to former em18 ployees of the United States or to former members

19 of the Armed Forces of the United States.

20 (3) Payments on account of the death or dis21 ability of any employee or former employee of the

22 United States.

23 (4) Tier 1 railroad retirement benefits.

24 (c) PUBLICATION OF NEW INDEX.—

25 (1) IN GENERAL.—Not later than August 1,

26 1994, the Bureau of Labor Statistics shall publish
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1 a Consumer Price Index for Government Use (CPI2 G).

3 (2) INDEX NOT TO INCLUDE TOBACCO PROD4 UCTS.—The Consumer Price Index for Government

5 Use (CPI-G) shall be modeled after the Consumer

6 Price Index for All Urban Consumers, but shall not

7 include tobacco products in the items for which

8 prices are compared.

9 (3) PAST PERIODS INCLUDED.—Such Index

10 shall be determined, to the extent practicable, for

11 the same periods before October 1, 1994, that the

12 Consumer Price Index for All Urban Consumers was

13 determined.

14 (d) TRANSITION TO NEW INDEX.—If, in determining

15 an amount for any period, an adjustment takes into ac16 count periods before October 1, 1994, and periods after

17 September 30, 1994—

18 (1) the Consumer Price Index for Government

19 Use shall be treated as being used for all periods,

20 and

21 (2) the amount being adjusted shall be treated

22 as being the amount which, had such Index been

23 used for all prior periods, would result in the

24 amount in effect for the immediately preceding pe25 riod.
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1 (e) EFFECTIVE DATE.—The section shall apply to

2 adjustments after September 30, 1994.

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