Oct 30, 2013

1.5% COLA

     As expected, Social Security's Cost Of Living Adjustment (COLA) will be 1.5% this year.
     Update: Here are all the numbers released today:
Social Security (OASDI) Program Rates & Limits 2014
Tax Rates (percent)  
Social Security (Old-Age, Survivors, and Disability Insurance)  
Employers and Employees, each a 6.20
Medicare (Hospital Insurance)  
Employers and Employees, each a,b 1.45
Maximum Taxable Earnings (dollars)  
Social Security 117,000
Medicare (Hospital Insurance) No limit
Earnings Required for Work Credits (dollars)  
One Work Credit (One Quarter of Coverage) 1,200
Maximum of Four Credits a Year 4,800
Earnings Test Annual Exempt Amount (dollars)  
Under Full Retirement Age for Entire Year 15,480
For Months Before Reaching Full Retirement Age in Given Year 41,400
Beginning with Month Reaching Full Retirement Age No limit
Maximum Monthly Social Security Benefit for Workers Retiring at Full Retirement Age (dollars) 2,642
Full Retirement Age 66
Cost-of-Living Adjustment (percent) 1.5
a. Self-employed persons pay a total of 15.3 percent—12.4 percent for OASDI and 2.9 percent for Medicare.
b. This rate does not reflect the additional 0.9 percent in Medicare taxes certain high-income taxpayers are required to pay. See IRS information on this topic.
Supplemental Security Income (SSI) Program Rates & Limits 2014
Monthly Federal Payment Standard (dollars)  
Individual 721
Couple 1,082
Cost-of-Living Adjustment (percent) 1.5
Resource Limits (dollars)  
Individual 2,000
Couple 3,000
Monthly Income Exclusions (dollars)  
Earned Income a 65
Unearned Income 20
Substantial Gainful Activity (SGA) Level for the Nonblind Disabled (dollars) 1,070
a. The earned income exclusion consists of the first $65 of monthly earnings, plus one-half of remaining earnings.


Mike B. said...

The Average Wage Index (AWI) for 2012 was also released today ($44,321.67). This is up 3.1% from 2011, more than expected. Social Security benefits are directly related to the AWI in the year a person turns 60.

I guess it's good that the COLA released today is rather small, since it might make it harder to argue that it is too generous (as people pushing the chained CPI do).

Anonymous said...

still more generous than the COLA employees have received in the past three years (0.0%) and what is expected in 2012 (1.0%).