CPI for Seniors Act of 2017

CPI for Seniors Act of 2017

This bill directs the Bureau of Labor Statistics to prepare and publish a monthly index, to be known as the "Consumer Price Index for Seniors," that indicates changes in expenditures typical for U.S. consumers aged 62 or older.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2016 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 2016

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

                             April 6, 2017

 Mr. Duncan of Tennessee (for himself and Mr. Lipinski) 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 2017''.

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) Submission 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 may be necessary to carry out the provisions 
of this section.
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