Full Press Release On COLAs

Below is the complete Social Security press release on the Cost of Living Adjustments (COLAs):

Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2007 through the third quarter of 2008, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 5.8 percent COLA for 2009. Other important 2009 Social Security information is as follows:

Tax Rate	2008	2009
Employee	7.65%	7.65%
Self-Employed	15.30%	15.30%
NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings.

Maximum Taxable Earnings:	2008	2009
Social Security (OASDI only)	$102,000	$106,800
Medicare (HI only)	No Limit

Quarter of Coverage:	2008	2009
Earnings needed to earn one Social Security credit	$1,050	$1,090

Retirement Earnings Test Exempt Amounts:	2008	2009
Under full retirement age NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.	$13,560/yr. ($1,130/mo.)	$14,160/yr. ($1,180/mo.)
The year an individual reaches full retirement age NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.	$36,120/yr. ($3,010/mo.)	$37,680/yr. ($3,140/mo.)
There is no limit on earnings beginning the month an individual attains full retirement age.

Social Security Disability Thresholds:		2008	2009
Substantial Gainful Activity (SGA)	Non-Blind	$ 940/mo.	$ 980/mo.
	Blind	$1,570/mo.	$1,640/mo.
Trial Work Period (TWP)		$ 670/mo.	$ 700/mo.

Maximum Social Security Benefit: Worker Retiring at Full Retirement Age	2008	2009
	$2,185/mo.	$2,323/mo.

SSI Federal Payment Standard:	2008	2009
Individual	$ 637/mo.	$ 674/mo.
Couple	$ 956/mo.	$1,011/mo.

SSI Resources Limits:	2008	2009
Individual	$2,000	$2,000
Couple	$3,000	$3,000

SSI Student Exclusion:	2008	2009
Monthly Limit	$1,550	$1,640
Annual Limit	$6,240	$6,600

Estimated Average Monthly Social Security Benefits Payable in January 2009:	Before 5.8% COLA	After 5.8% COLA
All Retired Workers	$1,090	$1,153
Aged Couple, Both Receiving Benefits	$1,773	$1,876
Widowed Mother and Two Children	$2,268	$2,399
Aged Widow(er) Alone	$1,051	$1,112
Disabled Worker, Spouse and One or More Children	$1,695	$1,793
All Disabled Workers	$1,006	$1,064

Benefits Going Up 5.8%

The Associated Press is reporting that the Cost of Living Adjustment for Social Security benefits will be 5.8% for this year. This will affect benefits beginning with the December 2008 benefits, which are paid in January 2009. The Associated Press article contains an amazing mistake, saying that the Supplemental Security Income benefit for an individual will go to $1,011 per month. I wish!

An Oldie But A Goodie -- On DAA The Tie Goes To The Claimant

This is nothing new. In fact, it dates back to August 30, 1996 when the statute forbidding payment of disability benefits when drug abuse or alcoholism is material to the determination of disability was very new. It is just that it remains important and remains current Social Security policy, but people who ought to know better, both inside and outside Social Security, keep forgetting Emergency Message 96-200. Here is the key quote:

Q. The most complicated and difficult determinations of materiality [of drue abuse or alcoholism] will involve individuals with documented substance use disorders and one or more other mental impairments. In many of these instances, it will be very difficult to disentangle the restrictions and limitations imposed by the substance use disorder from those resulting from the other mental impairment(s). Can any examples be provided for how to handle the materiality determination in these situations/ or can any guidance be provided for the type of information that should be used in trying to assess the impact of each impairment?

A. We know of no research data upon which to reliably predict the expected improvement in a coexisting mental, impairment(s) should drug/alcohol use stop. The most useful evidence that might be obtained in such cases is that relating to a period when the individual was not using drugs/alcohol. Of course, when evaluating this type of evidence consideration must be given to the length of the period of abstinence, how recently it occurred, and whether there may have been any increase in the limitations and restrictions imposed by-the other mental impairments since the last period of abstinence. When it is not possible to separate the mental restrictions and limitations imposed by DAA and the various other mental disorders shown by the evidence, a finding of "not material" would be appropriate. See the response to question 27.

ALJ James Brown Retires

Administrative Law Judge James Brown retired recently. Judge Brown had been working at the Office of Disability Adjudication and Review office in Raleigh, NC.

Waiting In Jacksonville

Today's Jacksonville, FL Times-Union has a story on the severe backlogs facing Social Security disability claimants awaiting a hearing before an Administrative Law Judge on a Social Security disability claim.

Backlog Report

Click on each of the thumbnails to see a September 3, 2008 report that the National Organization of Social Security Claimants Representatives (NOSSCR) obtained from the Social Security Administration on backlogs of claimants awaiting hearings on their Social Security disability claims at each of the hearing offices, each of Social Security's regions and nationally.

Compare the state of the national backlog over time:

• January 25, 2007 -- 508 days
• May 25, 2007 -- 523 days
• July 28, 2007 -- 528 days
• August 31, 2007 -- 523 days
• November 30, 2007 -- 500 days
• February 29, 2008 -- 511 days
• May 30, 2008 -- 523 days
• June 27, 2008 -- 529 days
• July 31, 2008 -- 530 days
  
• September 3, 2008 -- 532 days

It just keeps getting worse. With Social Security operating under a continuing funding resolution, which is likely to mean few new hires and little overtime, the deterioration may hasten.

AARP Makes A Mistake

Social Security has released an emergency message to its staff because of an error made by the American Association of Retired Persons (AARP) in its Bulletin. In its "Ask the Experts" column, AARP stated that a 62 year old person who lacked sufficient work credits could obtain Social Security benefits on the account of their 64 year old spouse, even though that spouse was still working and had not applied for Social Security retirement benefits. Serious mistake. AARP needs better experts.

Draft Of Frequently Asked Questions

On the separate Social Security Perspectives blog I have posted a draft of an update to my Frequently Asked Questions. I am posting them to ask for comments. Do you think any of the answers are wrong or misleading or outdated? Are there other questions that I ought to include?

These FAQs have been used with my consent by the National Organization of Social Security Claimants Representatives (NOSSCR) and a few others and illegally by many more. You may freely link to this draft of the FAQs, but you ought to wait until I finalize them. You may not simply steal them however. Copying them, with or without attribution, and using them elsewhere, whether online or offline, without my permission is a copyright violation or to be more blunt, theft. That is illegal and can get you in trouble.