COLA Act of 2021
Bill: H.R.2266 | Sponsor: Rep. Walberg, Tim (R-MI)
Policy area: Social Welfare

Summary:
Certainty for Older Living Americans Act of 2021 or the COLA Act of 2021
This bill sets out an alternative method to calculate cost-of-living adjustments for Social Security benefits.
The current method is based on the annual change in the Consumer Price Index for Urban Wage Earners and Clerical Workers, which results in no or small increases to benefits following a year with deflation or low inflation. The alternative method established by this bill is based on a 10-year average of cost-of-living adjustments. The Social Security Administration must use whichever method results in the larger increase for a given year.
In addition, the Department of Labor and the Department of Commerce must establish a working group to make recommendations on incorporating specified economic data when producing relevant consumer price indexes.

To amend title II of the Social Security Act to provide for a minimum 
 annual cost-of-living increase for Social Security benefits, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Certainty for Older Living Americans 
Act of 2021'' or the ``COLA Act of 2021''.

SEC. 2. COMPUTATION OF COST-OF-LIVING INCREASES.

    (a) In General.--Section 215(i) of the Social Security Act (42 
U.S.C. 415(i)) is amended--
            (1) in paragraph (1)(B), by striking ``with respect to 
        which the applicable increase percentage is greater than 
        zero;''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) in clause (ii), in the matter following 
                        subclause (III), by striking ``applicable 
                        increase percentage'' and inserting ``the 
                        increase percentage determined under clause 
                        (iv) for such year''; and
                            (ii) by adding at the end the following:
    ``(iv) The increase percentage determined under this clause for a 
year shall be the greater of--
            ``(I) the applicable increase percentage with respect to a 
        cost-of-living computation quarter in such year; or
            ``(II) the arithmetical mean of the increase percentages 
        determined under this clause for each of the years in the 10-
        year period ending with the year before such year.''; and
                    (B) in the first sentence of subparagraph (D), by 
                striking ``and the percentage thereof'' and inserting 
                ``, the percentage thereof, and the increase percentage 
                determined under subparagraph (A)(iv) for the following 
                year''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to cost-of-living computation quarters ending on or 
after September 30, 2021.

SEC. 3. WORKING GROUP ON USE OF NATIONAL ACCOUNTS DATA.

    (a) Establishment.--The Secretary of Labor and the Secretary of 
Commerce shall establish a working group (in this section referred to 
as the ``Working Group'') to provide recommendations to the Bureau of 
Labor Statistics on incorporating national accounts data to produce--
            (1) an accurate, timely, and relevant Consumer Price Index; 
        and
            (2) up-to-date expenditure weights.
    (b) Membership.--
            (1) Appointment.--The Secretary of Labor and the Secretary 
        of Commerce shall appoint to the Working Group individuals with 
        expertise relating to statistical and computational methods, 
        survey research, and economic, social, and demographic 
        measurement.
            (2) Representation.--In appointing representatives to the 
        Working Group, the Secretary of Labor and the Secretary of 
        Commerce shall consider appointing members from relevant 
        Federal agencies and non-Federal stakeholder groups, 
        including--
            (3) the Bureau of Labor Statistics;
            (4) the Bureau of Economic Analysis; and
            (5) the Federal Economic Statistics Advisory Committee.
    (c) Report.--Not later than 12 months after the date of enactment 
of this Act, the Working Group shall submit to the Committee on 
Education and Labor of the House of Representatives and the Committee 
on Health, Education, Labor, and Pensions of the Senate a report that 
includes the findings and recommendations of the Working Group under 
subsection (a).
    (d) Termination.--The Working Group shall terminate upon submission 
of the report required under subsection (c).
                                 <all>