I 111th CONGRESS 1st Session H. R. 3672 IN THE HOUSE OF REPRESENTATIVES September 29, 2009 Mrs. McCarthy of New York (for herself, Mr. Costello, Mr. Andrews, Mr. Kennedy, Ms. Kaptur, and Ms. Fudge) introduced the following bill; which was referred to the Committee on Ways and Means A BILL To provide for an increase of $150 in social security benefits for one month in 2010 to compensate for the lack of a cost-of-living adjustment for that year, and to amend title II of the Social Security Act to eliminate the requirement that there be a social security cost-of-living adjustment for an adjustment in the contribution and benefit base to occur.

1.

Short title

This Act may be cited as the Social Security COLA Fix for 2010 Act.

2.

Findings and statement of policy

(a)

Findings

The Congress finds that— (1)no cost-of-living increase in social security benefits is anticipated under current law for 2010; and (2)the rising costs being endured by our Nation’s seniors and disabled individuals makes the lack of such a cost-of-living increase particularly burdensome for them and their families. (b)

Statement of policy

It is the policy of this Act to provide some compensation to our Nation’s seniors and disabled individuals and their families for the lack of a cost-of-living increase in social security benefits for 2010 by providing for them a benefit increase of $150 for one month in 2010.

3.

Social security benefit increase for one month payable in 2010

(a)

In general

Except as provided in this section, each individual who is entitled to a monthly insurance benefit under section 202 or 223 of the Social Security Act (42 U.S.C. 402, 423) for the month in which this Act is enacted and is also entitled to such benefit for the applicable increase month (as defined in subsection (b)) shall be entitled to an increase in such benefit for the applicable increase month in the amount of $150. (b)

Applicable increase month

For purposes of this section, the term applicable increase month means the first month beginning after 180 days after the date of the enactment of this Act (c)

Restriction of increase to one month

Nothing in this section shall affect the amount of a benefit under section 202 or 223 of the Social Security Act for any month other than the applicable increase month. (d)

Notice

Not later than the date of the benefit payment to each individual which reflects the benefit increase under this section, the Secretary of the Treasury shall issue to such individual a written notice which includes the following statement: Your benefit payment for ______ reflects a one-time increase in monthly insurance benefits for that month of $150 which is in lieu of an annual cost-of-living increase in benefits for 2010., with the blank space therein being filled with a reference to the calendar month which is the applicable increase month. (e)

Simultaneous entitlements

In any case in which an individual is entitled to 2 or more monthly insurance benefits under title II of the Social Security Act for the applicable increase month, the increase provided in subsection (a) shall apply to the total amount of such benefits for the applicable increase month, after application of section 202(k)), in lieu of the amount of each benefit which is so payable. (f)

Effect on family maximum

The amount of the increase in monthly insurance benefits under subsection (a) shall be disregarded in determining reductions in benefits under section 203(a) of the Social Security Act (42 U.S.C. 403(a)). (g)

Increase To be disregarded for purposes of all Federal and Federally assisted programs

The increase under subsection (a) shall not be regarded as income and shall not be regarded as a resource for the applicable increase month and the following 9 months, for purposes of determining the eligibility of the recipient (or the recipient’s spouse or family) for benefits or assistance, or the amount or extent of benefits or assistance, under any Federal program or under any State or local program financed in whole or in part with Federal funds. (h)

Increase not considered income for purposes of taxation

The increase under subsection (a) shall not be considered as gross income for purposes of the Internal Revenue Code of 1986. (i)

Benefits not otherwise payable

Nothing in this section shall be construed to provide, in connection with the increase of any benefit under this section, for a payment of any amount of such benefit if such benefit is not otherwise payable under subsection (t) or (x) of section 202 of the Social Security Act (42 U.S.C. 402(t), (x)).

4.

Increases in contribution and benefit base irrespective of whether a cost-of-living increase in benefits has occurred

(a)

In general

Section 230(a) of the Social Security Act (42 U.S.C. 430(a)) is amended— (1)by striking Whenever the Commissioner and all that follows through the Commissioner shall also and inserting the following: The Commissioner of Social Security shall; (2)by striking November 1 of the calendar year in which such quarter occurs and inserting November 1 of each calendar year; and (3)by striking after the calendar year in which such quarter occurs and inserting after such year. (b)

Effective date

The amendments made by this section shall apply with respect to the determination of the contribution and benefit base for years after 2009.