H.R. 5841: Boosting Benefits and COLAs for Seniors Act

This bill, titled the Boosting Benefits and COLAs for Seniors Act, aims to amend how cost-of-living adjustments (COLAs) are determined for beneficiaries under the Social Security Act. Here are the main points of the bill:

Adjustment of Cost-of-Living Index

The bill proposes that the Commissioner of Social Security should utilize the Consumer Price Index for Elderly Consumers (CPI-E) for calculating cost-of-living adjustments for social security benefits. This replaces the previously used index, the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W). The new method stipulates that whichever index (CPI-E or CPI-W) results in a higher percentage increase will be used for adjustments.

Application to Historical Law

The bill also retrofits this adjustment method back to applications of the law as it existed after December 1978, ensuring that historical calculations align with the new adjustment standards.

New Consumer Price Index Publication

The Bureau of Labor Statistics will be responsible for preparing and publishing a monthly index termed the Consumer Price Index for Elderly Consumers. This index will reflect changes in the costs of expenditures that are typical for individuals aged 62 and older over time.

Implementation Timeline

The changes proposed in this bill will take effect starting with cost-of-living computation quarters ending on or after September 30, 2026. Prior to this, a pre-existing research price index will be used as a reference for measurements.

No Effect on Other Adjustments

This legislation will not impact adjustments under other laws regarding how cost-of-living changes are calculated. Effectively, if other laws rely on the percentage of the COLA applied under the Social Security provisions, they will continue to function independently from the changes being introduced by this bill.

Summary of Changes

• Switch to using CPI-E for determining COLAs in Social Security benefits.
• Amend historical laws to ensure consistency with new COLA calculation methods.
• Establishment of a new Consumer Price Index tailored for elderly consumers.
• Implementation begins in 2026, with a transitional reference period until then.
• No alteration of how other applicable laws calculate adjustments based on COLAs.

Relevant Companies

• None found