I
103D CONGRESS
2D SESSION
H. R. 4373
To amend the Social Security Act to provide for limitations on cost-of-
living 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.
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 COLA
Limitation Act of 1994’’.
SEC. 2. LIMITATIONS ON COST-OF-LIVING ADJUSTMENTS.
(a) IN GENERAL.—
(1) REDUCTION
IN
INCREASES
APPLIED
TO
HIGHER
PRIMARY
INSURANCE
AMOUNTS.—Section
215(i)(2)(A) of the Social Security Act (42 U.S.C.
415(i)(2)(A)) is amended—
(A) by redesignating clause (iii) as clause
(vii); and
(B) in clause (ii), by striking ‘‘The in-
crease shall’’ in the matter following subclause
(III) and all that follows through ‘‘Any in-
crease’’ and inserting the following:
‘‘(iii) With respect to the amounts described in
subclauses (I) and (III) of clause (ii), the increase shall
be derived by multiplying each of such amounts (including
each of those amounts as previously increased under this
subparagraph) by the applicable increase percentage.
‘‘(iv) With respect to primary insurance amounts de-
scribed in subclause (II) of clause (ii), the increase shall
be derived by—
‘‘(I) multiplying each of such amounts (includ-
ing each such amount as previously increased under
this subparagraph) by the applicable increase per-
centage,
‘‘(II) determining among all such amounts as
increased under subclause (I) the greatest primary
insurance amount which is below the 20th percentile
of such amounts, and
‘‘(III) reducing each primary insurance amount
as increased under subclause (I) to the sum of such
amount determined as if there had been no reduc-
tion in such amount under this subclause in any pre-
ceding year and the amount of the increase under
subclause (I) in the primary insurance amount de-
scribed in subclause (II).
‘‘(v) Any amount increased under clause (iii) or
clause (iv) which is not a multiple of $0.10 shall be de-
creased to the next lower multiple of $0.10.
‘‘(vi) Any increase’’.
(2) CONFORMING AMENDMENT.—The last sen-
tence 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 (vii) of subsection (i)(2)(A)’’.
(b) CONFORMING AMENDMENTS TO MAINTAIN CUR-
RENT LEVELS OF COST-OF-LIVING ADJUSTMENT UNDER
OTHER PROGRAMS.—
(1) 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 amended by striking ‘‘by the same
percentage’’ and all that follows through ‘‘percent-
age,’’ and inserting the following: ‘‘by the applicable
increase percentage (within the meaning of section
215(i)(1)(C)) used in determining the amount by
which benefit amounts under title II are increased
for such month’’.
(2) SUPPLEMENTARY
MEDICAL
INSURANCE.—
Section 1839(a)(3)(B) of such Act (42 U.S.C.
1395r(a)(3)(B)) is amended by striking ‘‘by a per-
centage’’ and all that follows through ‘‘November 1’’
and inserting the following: ‘‘by the applicable in-
crease percentage (within the meaning of section
215(i)(1)(C)) used in determining the amount by
which benefit amounts under title II are increased
for the month of December preceding the year of the
promulgation’’.
(3) CERTAIN
VETERAN’S
BENEFITS.—Section
3112 of title 38, United States Code, is amended—
(A) in subsection (a), by striking ‘‘by the
same percentage by which such benefit amounts
are increased’’ and inserting ‘‘by the applicable
increase percentage (within the meaning of sec-
tion 215(i)(1)(C) of such Act) used in deter-
mining the amount by which such benefit
amounts are increased’’; and
(B) in subsection (b)(1), by striking ‘‘by
the same percentage as the percentage by which
such benefit amounts are increased’’ and insert-
ing ‘‘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 increased’’.
(4) COST-OF-LIVING ADJUSTMENTS TO LIMITA-
TIONS ON BENEFITS AND CONTRIBUTIONS UNDER
QUALIFIED PLANS.—Subsection (d) of section 415 of
the Internal Revenue Code of 1986 (relating to cost-
of-living adjustments) is amended by striking ‘‘sec-
tion 
215(i)(2)(A)’’ 
and 
inserting 
‘‘section
215(i)(2)(A)(iii)’’.
(c) AMENDMENT TO PRIOR APPLICABLE LAW.—Sec-
tion 215(i)(4) of the Social Security Act (42 U.S.C.
415(i)(4)) is amended by adding at the end the following
new sentence: ‘‘The Secretary shall provide by regulation
for the continued application of this subsection as in effect
in December 1978 as provided by the preceding provisions
of this paragraph and the amendments referred to therein.
Such regulations shall provide for the application of the
amendments to the preceding provisions of this subsection
made by section 2 of the Social Security Solvency En-
hancement Act of 1994 so as to have the same effect on
the corresponding provisions of this subsection as in effect