I

103D CONGRESS

1ST SESSION H. R. 3592

To amend title II of the Social Security Act to provide for cost-of-living

increases based solely on the percentage increase in the Consumer Price

Index and for the establishment of a single annual cost-of-living increase

in primary insurance amounts at a uniform flat rate.

IN THE HOUSE OF REPRESENTATIVES

NOVEMBER 20, 1993

Mr. PENNY 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 title II of the Social Security Act to provide

for cost-of-living increases based solely on the percentage

increase in the Consumer Price Index and for the establishment of a single annual cost-of-living increase in primary insurance amounts at a uniform flat rate.

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 Flat

5 Rate COLA Act of 1993’’.
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1 SEC. 2. FLAT RATE COST-OF-LIVING ADJUSTMENT.

2 (a) GENERAL RULE.—Section 215(i)(2)(A) of the

3 Social Security Act (42 U.S.C. 415(i)(2)(A)) is amend4 ed—

5 (1) by redesignating clause (iii) as clause (v);

6 (2) in the matter in clause (ii) following

7 subclause (III), by striking ‘‘The increase’’ and all

8 that follows through ‘‘Any increase’’ and inserting

9 the following:

10 ‘‘(iii) For purposes of subclause (II) of clause (ii),

11 the increase shall be derived by adding to each primary

12 insurance amount described in such subclause (including

13 each such amount as previously increased under this sub14 paragraph) the applicable benefit increase amount. Any

15 increase’’; and

16 (3) by inserting before clause (v) (as redesig17 nated by paragraph (1) of this subsection) the fol18 lowing new clause:

19 ‘‘(iv) For purposes of subclauses (I) and (III) of

20 clause (ii), the increase shall be derived by multiplying

21 each of the amounts described in such subclauses (includ22 ing each of those amounts as previously increased under

23 this subparagraph) by the applicable increase percentage.

24 Any amount so increased which is not a multiple of $0.10

25 shall be decreased to the next lower multiple of $0.10.’’.
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1 (b) DEFINITIONS.—Section 215(i)(1) of such Act (42

2 U.S.C. 415(i)(1)) is amended—

3 (1) by striking subparagraphs (C) through (G);

4 (2) by redesignating subparagraph (H) as sub5 paragraph (E); and

6 (3) by inserting after subparagraph (B) the fol7 lowing new subparagraphs:

8 ‘‘(C) the term ‘applicable increase percentage’

9 means, with respect to any cost-of-living computa10 tion quarter, the same percentage (rounded to the

nearest 1 11 ⁄10 of 1 percent) as the percentage by which

12 the Consumer Price Index for that cost-of-living

13 computation quarter exceeds such index for the most

14 recent prior calendar quarter which was a base quar15 ter under subparagraph (A)(ii), or, if later, the most

16 recent prior cost-of-living computation quarter under

17 subparagraph (B);

18 ‘‘(D) the term ‘applicable benefit increase

19 amount’ means, with respect to any increase under

20 this subsection taking effect with the month of De21 cember of any year, an amount equal to the product

22 derived by multiplying—

23 ‘‘(i) the average of the primary insurance

24 amounts consisting of that 20 percent of the

25 primary insurance amounts, on the basis of
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1 which benefits were paid under this title for No2 vember of such year, which were the lowest

3 (which average, if not a multiple of $0.01, shall

4 be rounded to the next lower multiple of $0.01),

5 by

6 ‘‘(ii) the applicable increase percentage,

7 which product, if not a multiple of $0.10, shall be

8 rounded to the next lower multiple of $0.10; and’’.

9 (c) CONFORMING AMENDMENTS.—

10 (1) Section 215(i) of such Act (42 U.S.C.

11 415(i)) is further amended by striking paragraph

12 (5).

13 (2) The last sentence of section 215(a)(4) of

14 such Act (42 U.S.C. 415(a)(4)) is amended, in

15 subclause (I), by striking ‘‘clause (iii) of subsection

16 (i)(2)(A)’’ and inserting ‘‘clause (v) of subsection

17 (i)(2)(A)’’.

18 (3) Section 708(c) of such Act (42 U.S.C.

19 909(c)) is amended by striking ‘‘, the ‘OASDI fund

20 ratio’ under section 215(i),’’.
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1 SEC. 3. CONFORMING AMENDMENTS TO MAINTAIN CUR2 RENT LEVELS OF COST-OF-LIVING ADJUST3 MENT BASED ON THE CONSUMER PRICE

4 INDEX UNDER OTHER PROGRAMS.

5 (a) SUPPLEMENTAL SECURITY INCOME FOR THE

6 AGED, BLIND, AND DISABLED.—Section 1617(a)(2) of

7 the Social Security Act (42 U.S.C. 1382f(a)(2)) is amend8 ed by striking ‘‘by the same percentage’’ and all that fol9 lows through ‘‘percentage,’’ and inserting the following:

10 ‘‘by the applicable increase percentage (within the mean11 ing of section 215(i)(1)(C)) used in determining the

12 amount by which benefit amounts under title II are in13 creased for such month’’.

14 (b) SUPPLEMENTARY MEDICAL INSURANCE.—Sec15 tion 1839(a)(3)(B) of such Act (42 U.S.C.

16 1395r(a)(3)(B)) is amended by striking ‘‘by a percentage’’

17 and all that follows through ‘‘November 1’’ and inserting

18 the following: ‘‘by the applicable increase percentage

19 (within the meaning of section 215(i)(1)(C)) used in deter20 mining the amount by which benefit amounts under title

21 II are increased for the month of December preceding the

22 year of the promulgation’’.

23 (c) CERTAIN VETERAN’S BENEFITS.—Section 3112

24 of title 38, United States Code, is amended—

25 (1) in subsection (a), by striking ‘‘by the same

26 percentage by which such benefit amounts are in-
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1 creased’’ and inserting ‘‘by the applicable increase

2 percentage (within the meaning of section

3 215(i)(1)(C) of such Act) used in determining the

4 amount by which such benefit amounts are in5 creased’’; and

6 (2) in subsection (b)(1), by striking ‘‘by the

7 same percentage as the percentage by which such

8 benefit amounts are increased’’ and inserting ‘‘by

9 the applicable increase percentage (within the mean10 ing of section 215(i)(1)(C) of such Act) used in de11 termining the amount by which such benefit

12 amounts are increased’’.

13 (d) COST-OF-LIVING ADJUSTMENTS TO LIMITATIONS

14 ON BENEFITS AND CONTRIBUTIONS UNDER QUALIFIED

15 PLANS.—Subsection (d) of section 415 of the Internal

16 Revenue Code of 1986 (relating to cost-of-living adjust17 ments) is amended by striking ‘‘section 215(i)(2)(A)’’ and

18 inserting ‘‘section 215(i)(2)(A)(iv)’’.

19 SEC. 4. EFFECTIVE DATE.

20 The amendments made by this Act shall apply with

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

22 Security Act effective with months after November 1993.

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