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 estab-
lishment of a single annual cost-of-living increase in pri-
mary insurance amounts at a uniform flat rate.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Social Security Flat
Rate COLA Act of 1993’’.
SEC. 2. FLAT RATE COST-OF-LIVING ADJUSTMENT.
(a) GENERAL RULE.—Section 215(i)(2)(A) of the
Social Security Act (42 U.S.C. 415(i)(2)(A)) is amend-
ed—
(1) by redesignating clause (iii) as clause (v);
(2) in the matter in clause (ii) following
subclause (III), by striking ‘‘The increase’’ and all
that follows through ‘‘Any increase’’ and inserting
the following:
‘‘(iii) For purposes of subclause (II) of clause (ii),
the increase shall be derived by adding to each primary
insurance amount described in such subclause (including
each such amount as previously increased under this sub-
paragraph) the applicable benefit increase amount. Any
increase’’; and
(3) by inserting before clause (v) (as redesig-
nated by paragraph (1) of this subsection) the fol-
lowing new clause:
‘‘(iv) For purposes of subclauses (I) and (III) of
clause (ii), the increase shall be derived by multiplying
each of the amounts described in such subclauses (includ-
ing each of those amounts as previously increased under
this subparagraph) by the applicable increase percentage.
Any amount so increased which is not a multiple of $0.10
shall be decreased to the next lower multiple of $0.10.’’.
(b) DEFINITIONS.—Section 215(i)(1) of such Act (42
U.S.C. 415(i)(1)) is amended—
(1) by striking subparagraphs (C) through (G);
(2) by redesignating subparagraph (H) as sub-
paragraph (E); and
(3) by inserting after subparagraph (B) the fol-
lowing new subparagraphs:
‘‘(C) the term ‘applicable increase percentage’
means, with respect to any cost-of-living computa-
tion quarter, the same percentage (rounded to the
nearest 1⁄10 of 1 percent) as the percentage by which
the Consumer Price Index for that cost-of-living
computation quarter exceeds such index for the most
recent prior calendar quarter which was a base quar-
ter under subparagraph (A)(ii), or, if later, the most
recent prior cost-of-living computation quarter under
subparagraph (B);
‘‘(D) the term ‘applicable benefit increase
amount’ means, with respect to any increase under
this subsection taking effect with the month of De-
cember of any year, an amount equal to the product
derived by multiplying—
‘‘(i) the average of the primary insurance
amounts consisting of that 20 percent of the
primary insurance amounts, on the basis of
which benefits were paid under this title for No-
vember of such year, which were the lowest
(which average, if not a multiple of $0.01, shall
be rounded to the next lower multiple of $0.01),
by
‘‘(ii) the applicable increase percentage,
which product, if not a multiple of $0.10, shall be
rounded to the next lower multiple of $0.10; and’’.
(c) CONFORMING AMENDMENTS.—
(1) Section 215(i) of such Act (42 U.S.C.
415(i)) is further amended by striking paragraph
(5).
(2) The last sentence of section 215(a)(4) of
such Act (42 U.S.C. 415(a)(4)) is amended, in
subclause (I), by striking ‘‘clause (iii) of subsection
(i)(2)(A)’’ and inserting ‘‘clause (v) of subsection
(i)(2)(A)’’.
(3) Section 708(c) of such Act (42 U.S.C.
909(c)) is amended by striking ‘‘, the ‘OASDI fund
ratio’ under section 215(i),’’.
SEC. 3. CONFORMING AMENDMENTS TO MAINTAIN CUR-
RENT LEVELS OF COST-OF-LIVING ADJUST-
MENT BASED ON THE CONSUMER PRICE
INDEX UNDER OTHER PROGRAMS.
(a) SUPPLEMENTAL
SECURITY INCOME
FOR
THE
AGED, BLIND, AND DISABLED.—Section 1617(a)(2) of
the Social Security Act (42 U.S.C. 1382f(a)(2)) is amend-
ed by striking ‘‘by the same percentage’’ and all that fol-
lows through ‘‘percentage,’’ and inserting the following:
‘‘by the applicable increase percentage (within the mean-
ing of section 215(i)(1)(C)) used in determining the
amount by which benefit amounts under title II are in-
creased for such month’’.
(b) SUPPLEMENTARY MEDICAL INSURANCE.—Sec-
tion 
1839(a)(3)(B) 
of 
such 
Act 
(42 
U.S.C.
1395r(a)(3)(B)) is amended by striking ‘‘by a percentage’’
and all that follows through ‘‘November 1’’ and inserting
the following: ‘‘by the applicable increase percentage
(within the meaning of section 215(i)(1)(C)) used in deter-
mining the amount by which benefit amounts under title
II are increased for the month of December preceding the
year of the promulgation’’.
(c) CERTAIN VETERAN’S BENEFITS.—Section 3112
of title 38, United States Code, is amended—
(1) in subsection (a), by striking ‘‘by the same
percentage by which such benefit amounts are in-
creased’’ and inserting ‘‘by the applicable increase
percentage 
(within 
the 
meaning 
of 
section
215(i)(1)(C) of such Act) used in determining the
amount by which such benefit amounts are in-
creased’’; and
(2) in subsection (b)(1), by striking ‘‘by the
same percentage as the percentage by which such
benefit amounts are increased’’ and inserting ‘‘by
the applicable increase percentage (within the mean-
ing of section 215(i)(1)(C) of such Act) used in de-
termining the amount by which such benefit
amounts are increased’’.
(d) COST-OF-LIVING ADJUSTMENTS TO LIMITATIONS
ON BENEFITS AND CONTRIBUTIONS UNDER QUALIFIED
PLANS.—Subsection (d) of section 415 of the Internal
Revenue Code of 1986 (relating to cost-of-living adjust-
ments) is amended by striking ‘‘section 215(i)(2)(A)’’ and
inserting ‘‘section 215(i)(2)(A)(iv)’’.
SEC. 4. EFFECTIVE DATE.
The amendments made by this Act shall apply with
respect to adjustments under section 215(i) of the Social
Security Act effective with months after November 1993.
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