Fair COLA for Seniors Act of 2021
Bill: H.R.4315 | Sponsor: Rep. Garamendi, John (D-CA)
Policy area: Social Welfare

Summary:
Fair COLA for Seniors Act
This bill bases cost-of-living adjustments for certain benefits available through federal and military retirement programs, Social Security, and specified programs for veterans on a price index that tracks the spending patterns of older consumers. The Bureau of Labor Statistics of the Department of Labor must publish that price index on a monthly basis.

To provide for cost-of-living increases for certain Federal benefits 
    programs based on increases in the Consumer Price Index for the 
                                elderly.

    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 ``Fair COLA for Seniors Act of 2021''.

SEC. 2. COMPUTATION OF COST-OF-LIVING INCREASES BASED ON CONSUMER PRICE 
              INDEX FOR ELDERLY CONSUMERS.

    (a) In General.--Section 215(i)(1) of the Social Security Act (42 
U.S.C. 415(i)(1)) is amended by adding at the end the following new 
subparagraph:
            ``(H) the term `Consumer Price Index' means the Consumer 
        Price Index for Elderly Consumers (CPI-E, as published by the 
        Bureau of Labor Statistics of the Department of Labor).''.
    (b) Application to Pre-1979 Law.--
            (1) In general.--Section 215(i)(1) of the Social Security 
        Act as in effect in December 1978, and as applied in certain 
        cases under the provisions of such Act as in effect after 
        December 1978, is amended by adding at the end the following 
        new subparagraph:
            ``(D) the term `Consumer Price Index' means the Consumer 
        Price Index for Elderly Consumers (CPI-E, as published by the 
        Bureau of Labor Statistics of the Department of Labor).''.
            (2) Conforming change.--Section 215(i)(4) of the Social 
        Security Act (42 U.S.C. 415(i)(4)) is amended--
                    (A) by striking ``and by section 9001'' and 
                inserting ``, section 9001''; and
                    (B) by inserting ``and section 2 of the Fair COLA 
                for Seniors Act of 2021,'' after ``1986,''.
    (c) Publication of Consumer Price Index for Elderly Consumers.--The 
Bureau of Labor Statistics of the Department of Labor shall prepare and 
publish the index authorized by section 191 of the Older Americans 
Amendments Act of 1987 (29 U.S.C. 2 note) for each calendar month, 
beginning with the date of enactment of this Act, and such index shall 
be known as the ``Consumer Price Index for Elderly Consumers''.
    (d) Effective Date.--The amendments made by subsection (a) shall 
apply to determinations made with respect to cost-of-living computation 
quarters (as defined in section 215(i)(1)(B) of the Social Security Act 
(42 U.S.C. 415(i)(1)(B))) ending on or after September 30, 2021.

SEC. 3. COST-OF-LIVING INCREASES FOR CERTAIN FEDERAL BENEFITS PROGRAMS 
              BASED ON INCREASES IN THE CONSUMER PRICE INDEX FOR THE 
              ELDERLY.

    Notwithstanding any other provision of law, whenever benefit 
amounts under title II of the Social Security Act are increased by any 
percentage effective with any month as a result of a determination made 
under section 215(i) of such Act, the dollar amounts in effect for the 
payment of the following benefits, as such amounts were in effect 
immediately before the increase of such benefit amounts, shall be 
increased by the same percentage:
            (1) An annuity under the Civil Service Retirement System or 
        the Federal Employees Retirement System.
            (2) Department of Veterans Affairs wartime disability 
        compensation under section 1114 of title 38, United States 
        Code.
            (3) Department of Veterans Affairs additional compensation 
        for dependents under section 1115(1) of such title.
            (4) The Department of Veterans Affairs clothing allowance 
        under section 1162 of such title.
            (5) Department of Veterans Affairs dependency and indemnity 
        compensation to surviving spouse under subsections (a) through 
        (d) of section 1311 of such title.
            (6) Department of Veterans Affairs dependency and indemnity 
        compensation to children under sections 1313(a) and 1314 of 
        such title.
            (7) Military retirement and survivor benefit programs, as 
        defined in section 1461(b) of title 10, United States Code.
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