S-3974 : Still Just a Bill

The "Boosting Benefits and COLAs for Seniors Act" (S.3974) proposes changes to how Social Security benefits are adjusted for cost-of-living increases. Key provisions include:

• Using the CPI-E: The bill mandates that the Social Security Administration use either the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) or the Consumer Price Index for Elderly Consumers (CPI-E), whichever results in a higher adjustment percentage. The CPI-E is designed to better reflect the spending patterns of seniors.
• Application to Past Laws: The change applies not only to current Social Security laws but also to relevant laws as they existed in December 1978 and as applied after that date.
• No Impact on Other Laws: The bill clarifies that this change only affects cost-of-living adjustments for Social Security benefits and Supplemental Security Income (SSI). Other laws that use the Social Security cost-of-living adjustment as a reference will not be affected by this change.
• CPI-E Publication: The Bureau of Labor Statistics is required to publish a monthly Consumer Price Index for Elderly Consumers (CPI-E) to track expenditure changes typical for individuals aged 62 and older.
• Transition: Before the official CPI-E is published, a research price index (R-CPI-E) will be used as a reference.
• Effective Date: These changes would apply to cost-of-living adjustments determined for quarters ending on or after September 30, 2024.