S. 3059: Boosting Benefits and COLAs for Seniors Act

This bill, titled the Boosting Benefits and COLAs for Seniors Act, aims to amend specific provisions of the Social Security Act concerning adjustments for costs of living for seniors. Here are the key components of what the bill would do:

Changes to Cost-of-Living Adjustments (COLAs)

The bill proposes that the method for calculating cost-of-living adjustments for Social Security benefits should change from the current Consumer Price Index (CPI) for Urban Wage Earners and Clerical Workers (CPI–W) to the Consumer Price Index for Elderly Consumers (CPI–E). This change would ensure that COLAs reflect the spending patterns of older adults more accurately.

Specific Amendments

• The Social Security Act's language would be updated to specify that either the CPI–W or the CPI–E will be used, depending on which index shows a higher percentage increase.
• Adjustments made under pre-1979 law regarding these calculations will also adopt this new methodology, taking into account the higher index for varying cost-of-living assessments.

Effect on Other Provisions

The bill clarifies that adjustments under other laws that rely on the same percentage as the Social Security COLAs will continue to be applied without considering this new methodology until stated otherwise.

Publication of Consumer Price Index for Elderly Consumers

The Bureau of Labor Statistics will be tasked with preparing and publishing an index called the Consumer Price Index for Elderly Consumers, which will track changes in expenditures typical for individuals aged 62 and older.

Transition Period

Before the CPI–E is officially published, the bill stipulates that references to this new index will initially refer to an existing research price index prepared by the Bureau, aimed at Americans 62 years and older.

Effective Date

The new method for determining cost-of-living adjustments will go into effect for computation quarters ending on or after September 30, 2026.

Relevant Companies