CPI for Seniors Act of 2011 - Directs the Bureau of Labor Statistics (BLS) of the Department of Labor to prepare and publish a monthly index, to be known as the Consumer Price Index for Seniors (CPI-S), that indicates monthly changes in expenditures for consumption that are typical for individuals in the United States who are 62 years of age or older.
[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1086 Introduced in House (IH)]
112th CONGRESS
1st Session
H. R. 1086
To mandate the monthly formulation and publication of a consumer price
index specifically for senior citizens for the purpose of establishing
an accurate Social Security COLA for such citizens.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 15, 2011
Mr. Duncan of Tennessee (for himself, Mr. Lipinski, Mr. Harper, Mr.
Tonko, Mr. Roe of Tennessee, Ms. Fudge, Mr. Bishop of Georgia, and Mr.
Sablan) introduced the following bill; which was referred to the
Committee on Education and the Workforce
_______________________________________________________________________
A BILL
To mandate the monthly formulation and publication of a consumer price
index specifically for senior citizens for the purpose of establishing
an accurate Social Security COLA for such citizens.
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 ``CPI for Seniors Act of 2011''.
SEC. 2. FINDINGS.
The Congress finds the following:
(1) Each year the Bureau of Labor Statistics of the
Department of Labor prepares and publishes consumer price
indices (the most notable being the Consumer Price Index or
``CPI'') that measure the rate of inflation in the economy of
the United States.
(2) A derivative of the CPI is used to determine an annual
cost-of-living adjustment (hereinafter referred to as ``COLA'')
for millions of senior citizens (individuals aged 62 and over)
who depend on their respective Social Security benefits.
(3) The Social Security COLA is calculated using the
Consumer Price Index for Urban Wage Earners and Clerical
Workers (hereinafter referred to as ``CPI-W''), a subset of the
population covered by the Consumer Price Index for All Urban
Consumers (hereinafter referred to as ``CPI-U'').
(4) While the experimental Consumer Price Index for
Americans 62 Years of Age and Older (hereinafter referred to as
``CPI-E'') is a more accurate measure of the average price of
consumer goods and services purchased by senior citizens than
the CPI-W, it too is derived from the CPI-U.
(5) According to numerous credible authorities, the present
methods (CPI-U, CPI-W, and CPI-E to a lesser extent) used to
measure inflation are flawed and deficient in measuring the
average price of consumer goods and services purchased by
senior citizens, and the overall impact of inflation on such
citizens.
(6) The present sampling regarding senior citizens is too
small under the methods referred to in paragraph (5), creating
an opportunity for sampling error.
(7) Prices used under the methods referred to in paragraph
(5) are based on geographic areas, retail outlets, and sample
items used and purchased by younger consumers and are not
necessarily representative of the geographic areas, retail
outlets, and sample items used and purchased by senior
citizens.
(8) The locations used under the methods referred to in
paragraph (5) are urban locations that do not reflect the
economic challenges faced in rural communities, which often
have a far larger demographic segment of senior citizens.
(9) Senior citizens neither have the flexibility or the
ability that younger consumers have to substitute necessary
purchases in response to changes in prices, nor the same
options as younger consumers have to supplement their income.
(10) Premium increases for part B of Medicare, part D of
Medicare, and other health care costs affecting senior citizens
are not adequately considered under the methods referred to in
paragraph (5).
(11) The cost of taxes on Social Security income is not
considered under the methods referred to in paragraph (5), thus
putting senior citizens at a greater economic disadvantage each
year.
SEC. 3. MANDATE THE MONTHLY FORMULATION AND PUBLICATION OF A CONSUMER
PRICE INDEX FOR SENIORS.
(a) Establishment of New CPI.--The Bureau of Labor Statistics of
the Department of Labor shall prepare and publish an index monthly to
be known as the ``Consumer Price Index for Seniors'' (hereinafter
referred to as ``CPI-S'') that indicates monthly changes in
expenditures for consumption that are typical for individuals in the
United States who are 62 years of age or older.
(b) Submittal to Congress.--The Bureau of Labor Statistics of the
Department of Labor shall submit to the Joint Economic Committee a
description of the actions taken by such Bureau to meet the
requirements of this section not later than 6 months after the date of
enactment of this Act, and semi-annually thereafter.
(c) Authorization of Appropriations.--There are authorized to be
appropriated such sums as are necessary to carry out the provisions of
this section.
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Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
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