Outlines a BLS pilot program to test CPIE accuracy.
Provides for interim application of the Consumer Price Index for All Urban Consumers for cost-of-living computation quarters from January 1, 2000, to implementation of the Official Consumer Price Index for the Elderly (Official CPIE) to calculate cost-of-living adjustments for old-age and survivors insurance benefits.
Directs the BLS Commissioner to prepare and publish monthly the Official CPIE for implementation, based on the implementation plan and recommendations, and subject to congressional approval of the study report, in calculating such adjustments for any retiree or individual who has attained age 62.
Authorizes appropriations.
[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 1247 Introduced in Senate (IS)]
106th CONGRESS
1st Session
S. 1247
To develop and apply a Consumer Price Index that accurately reflects
the cost-of-living for older Americans who receive social security
benefits under title II of the Social Security Act.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 21, 1999
Mr. Grams introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To develop and apply a Consumer Price Index that accurately reflects
the cost-of-living for older Americans who receive social security
benefits under title II of the Social Security Act.
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 Cost of Living Adjustment for
Seniors Act of 1999''.
SEC. 2. IMPROVEMENT OF CONSUMER PRICE INDEX FOR THE ELDERLY BY
CONGRESSIONALLY APPOINTED REVIEW COMMITTEE.
(a) Establishment of Consumer Price Index Review Committee.--
(1) Establishment.--There is established a review committee
to be known as the Consumer Price Index Review Committee (in
this section referred to as the ``Committee'').
(2) Membership.--The Committee shall be composed of 15
members jointly appointed by the leadership of the Senate and
the House of Representatives of whom--
(A) 11 shall be leading experts in the field of
economics and, to the extent feasible, familiar with
the issues related to the calculation of changes in the
cost of living; and
(B) 4 shall be representatives of individuals who
have attained age 65.
(3) Terms and vacancies.--
(A) Terms.--A member of the Committee appointed
under paragraph (2) shall be appointed for the duration
of the Committee.
(B) Vacancies.--
(i) In general.--A vacancy on the Committee
shall be filled in the same manner in which the
original appointment was made and shall be
subject to any conditions which applied with
respect to the original appointment.
(ii) Filling unexpired term.--An individual
chosen to fill a vacancy shall be appointed for
the duration of the Committee.
(4) Initial meeting.--Not later than 30 days after the date
on which all members of the Committee have been appointed, the
Committee shall hold its first meeting.
(5) Quorum.--A majority of the members of the Committee
shall constitute a quorum, but a lesser number of members may
hold hearings.
(6) Chairperson and vice chairperson.--The Committee shall
select a Chairperson and Vice Chairperson from among the
members appointed under paragraph (2).
(b) Duties.--
(1) Study and development of implementation plan.--
(A) In general.--The Committee shall conduct a
study--
(i) to improve the method for determining
an index, to be known as the ``Consumer Price
Index for the Elderly'';
(ii) to make recommendations addressing the
limitations of the method for determining the
Experimental Consumer Price Index for the
Elderly calculated by the Bureau of Labor
Statistics to ensure that the improved index
accurately measures changes over time in
expenditures for consumption that are typical
for retirees in the United States who receive
old-age and survivors insurance benefits under
title II of the Social Security Act (42 U.S.C.
401 et seq.); and
(iii) to develop an implementation plan.
(B) Study requirements.--The study described in
subparagraph (A) shall include the following
requirements:
(i) The Consumer Price Index for the
Elderly shall be based on an accurate market
basket of goods and services that reflect a
representative collection of typical purchases
by the total retiree population in the United
States who receive old-age and survivors insurance benefits under title
II of such Act.
(ii) The Consumer Expenditure Survey used
by the Bureau of Labor Statistics to calculate
the Experimental Consumer Price Index for the
Elderly shall be re-designed and expanded to
collect expenditure patterns representative of
such total retiree population.
(iii) The areas and outlets priced by the
Bureau of Labor Statistics to calculate the
Experimental Consumer Price Index for the
Elderly shall be modified to reflect a
representation of the places of purchase for
such total retiree population.
(iv) The categories of items to be priced
shall be selected to represent such total
retiree population.
(v) The prices collected shall adequately
reflect the availability of discount prices for
such total retiree population.
(vi) Any other limitations otherwise found
to affect the accuracy of the Consumer Price
Index for the Elderly shall be removed.
(C) Additional study.--The Committee shall also
study the method for determining an accurate consumer
price index for individuals who receive disability
insurance benefits under title II of such Act.
(2) Report.--
(A) In general.--Subject to subparagraph (B), not
later than 1 year after the initial meeting of the
Committee under subsection (a)(4), the Committee shall
submit a report to Congress on the study conducted in
accordance with paragraph (1).
(B) Required approval.--The Committee shall not
submit a report under subparagraph (A) unless the
report has the approval of at least 9 members of the
Committee.
(c) Powers.--
(1) Hearings.--The Committee may hold such hearings, sit
and act at such times and places, take such testimony, and
receive such evidence as the Committee considers advisable to
carry out the purposes of this section.
(2) Information from federal agencies.--The Committee may
secure directly from any Federal department or agency such
information as the Committee considers necessary to carry out
this section, including the published and unpublished data and
analytical products of the Bureau of Labor Statistics. Upon
request of the Chairperson of the Committee, the head of such
department or agency shall furnish such information to the
Committee in a timely manner.
(3) Postal services.--The Committee may use the United
States mails in the same manner and under the same conditions
as other departments and agencies of the Federal Government.
(4) Gifts.--The Committee may accept, use, and dispose of
gifts or donations of services or property.
(d) Personnel Matters.--
(1) Compensation of members.--Each member of the Committee
who is not otherwise an officer or employee of the Federal
Government shall be compensated at a rate equal to the daily
equivalent of the annual rate of basic pay prescribed for level
III of the Executive Schedule under section 5315 of title 5,
United States Code, for each day (including travel time) during
which such member is engaged in the performance of the duties
of the Committee. All members of the Committee who otherwise
are officers or employees of the United States shall serve
without compensation in addition to that received for their
services as officers or employees of the United States.
(2) Travel expenses.--The members of the Committee shall be
allowed travel expenses, including per diem in lieu of
subsistence, at rates authorized for employees of agencies
under subchapter I of chapter 57 of title 5, United States
Code, while away from their homes or regular places of business
in the performance of services for the Committee.
(3) Staff.--
(A) In general.--The Chairperson of the Committee
may, without regard to the civil service laws and
regulations, appoint and terminate an executive
director and such other additional personnel as may be
necessary to enable the Committee to perform its
duties. The employment of an executive director shall
be subject to confirmation by the Committee.
(B) Compensation.--The Chairperson of the Committee
may fix the compensation of the executive director and
other personnel without regard to the provisions of
chapter 51 and subchapter III of chapter 53 of title 5,
United States Code, relating to classification of
positions and General Schedule pay rates, except that
the rate of pay for the executive director and other
personnel may not exceed the rate payable for level IV
of the Executive Schedule under section 5316 of such
title.
(4) Detail of government employees.--Any Federal Government
employee may be detailed to the Committee without additional
reimbursement (other than the employee's regular compensation),
and such detail shall be without interruption or loss of civil
service status or privilege.
(5) Procurement of temporary and intermittent services.--
The Chairperson of the Committee may procure temporary and
intermittent services under section 3109(b) of title 5, United
States Code, at rates for individuals which do not exceed the
daily equivalent of the annual rate of basic pay prescribed for
level V of the Executive Schedule under section 5316 of such
title.
(e) Termination.--The Committee shall terminate 1 year after the
date of the initial meeting of the Committee under subsection (a)(4).
(f) Authorization of Appropriations.--There are authorized to be
appropriated to the Committee such sums as are necessary to carry out
the purposes of this section.
SEC. 3. BUREAU OF LABOR STATISTICS PILOT PROGRAM TO TEST CONSUMER PRICE
INDEX FOR THE ELDERLY.
(a) Pilot Program.--The Commissioner of the Bureau of Labor
Statistics shall establish a pilot program to test the accuracy of an
operational index to be recommended by the Consumer Price Index Review
Committee under section 2 and to be known as the ``Consumer Price Index
for the Elderly'', which indicates changes over time in expenditures
for consumption which are typical for retirees in the United States who
receive old-age and survivors insurance benefits under title II of the
Social Security Act (42 U.S.C. 401 et seq.).
(b) Duration of Pilot Program.--The pilot program shall commence
with the first month that begins after the date of the submission of
the report under section 2(b)(2) and shall continue through December
2002.
SEC. 4. INTERIM APPLICATION OF CONSUMER PRICE INDEX FOR ALL URBAN
CONSUMERS.
For 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))
occurring during the period that begins on January 1, 2000, and ends
with the implementation of the Official Consumer Price Index for the
Elderly under section 5(b), the Commissioner of Social Security,
notwithstanding section 215(i) of the Social Security Act (42 U.S.C.
415(i)) and any regulations promulgated thereunder, shall use the
Consumer Price Index for All Urban Consumers to calculate cost-of-
living adjustments for benefits described in section 5(b)(1).
SEC. 5. APPLICATION OF CONSUMER PRICE INDEX FOR THE ELDERLY.
(a) Implementation.--
(1) Commissioner of bureau of labor statistics.--
(A) In general.--Subject to subparagraph (B), not
later than the fourth year that begins after the
Consumer Price Index Review Committee submits the
report required under section 2(b)(2), the Commissioner
of the Bureau of Labor Statistics shall prepare and
publish monthly the Official Consumer Price Index for
the Elderly based on the implementation plan and
recommendations included in that report.
(B) No implementation if congressional disapproval
of committee report.--Subparagraph (A) shall not apply
if a joint resolution is enacted, in accordance with
paragraph (2), disapproving the report submitted by the
Consumer Price Index Review Committee before the end of
the 90-day period that begins on the date on which the
Review Committee submits the report.
(C) Exclusion of certain days.--For purposes of
subparagraph (B) and paragraph (2), the days on which
either House of Congress is not in session because of
an adjournment of more than 3 days to a day certain
shall be excluded from the computation of the period.
(2) Congressional consideration.--
(A) Terms of the resolution.--For purposes of
paragraph (1)(A), the term ``joint resolution'' means
only a joint resolution that is introduced within the
period described in that paragraph and--
(i) that does not have a preamble;
(ii) the matter after the resolving clause
of which is as follows: ``That Congress
disapproves the report of the Consumer Price
Index Review Committee regarding the
implementation of the Consumer Price Index for
the Elderly submitted on ________.'', the blank
space being filled in with the appropriate
date; and
(iii) the title of which is as follows:
``Joint resolution disapproving the report of
the Consumer Price Index Review Committee
regarding the implementation of the Consumer
Price Index for the Elderly.''.
(B) Referral.--A resolution described in
subparagraph (A) that is introduced--
(i) in the House of Representatives, shall
be referred to the Committee on Ways and Means;
and
(ii) in the Senate, shall be referred to
the Committee on Finance.
(C) Discharge.--If a committee to which a
resolution described in subparagraph (A) is referred
has not reported such resolution by the end of the 60-
day period beginning on the date on which the Consumer
Price Index Review Committee submits the report
required under section 2(b)(2), such committee shall
be, at the end of such period, discharged from further
consideration of such resolution, and such resolution
shall be placed on the appropriate calendar of the
House involved.
(D) Consideration.--On or after the third day after
the date on which the committee to which a resolution
described in subparagraph (A) has reported, or has been
discharged from further consideration of such
resolution, such resolution shall be considered in the
same manner as a resolution is considered under
subsections (d), (e), and (f) of section 2908 of the
Defense Base Closure and Realignment Act of 1990 (10
U.S.C. 2687 note).
(b) Use of Index.--For 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))) beginning on or after January 1 of the calendar year
that begins after the Commissioner of the Bureau of Labor Statistics
first prepares and publishes the Official Consumer Price Index for the
Elderly in accordance with subsection (a)(1), the Commissioner of
Social Security shall--
(1) cease using the Consumer Price Index for All Urban
Consumers to calculate cost-of-living adjustments for old-age
and survivors insurance benefits payable under title II of the
Social Security Act (42 U.S.C. 401 et seq.) to any retiree or
individual who has attained age 62; and
(2) notwithstanding section 215(i) of the Social Security
Act (42 U.S.C. 415(i)) and any regulations promulgated
thereunder, use the Official Consumer Price Index for the
Elderly to calculate such adjustments.
(c) Authorization of Appropriations.--There are authorized to be
appropriated to the Bureau of Labor Statistics such sums as are
necessary to carry out the purposes of this section.
<all>
Introduced in Senate
Sponsor introductory remarks on measure. (CR S7326-7327)
Read twice and referred to the Committee on Banking.
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