1.This Act may be cited as the
CPI for Seniors Act of
2010
.
2.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.
3.Mandate the
monthly formulation and publication of a consumer price index for
seniors
(a)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)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
appropriationsThere are authorized to be appropriated such sums
as are necessary to carry out the provisions of this section.