Social Security Increases for 2011

FACT SHEET

Social Security

Cost of Living Adjustment (COLA):

Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2008 through the third quarter of 2011, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 3.6 percent COLA for 2012. Other important 2012 Social Security information is as follows:

TAX RATE

Employee

2011: 7.65% *

2012:7.65% *

Self-Employed

2011: 15.30% *

2012: 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 1.46% on all earnings.

*Section 601 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reduced, for wages and salaries paid in calendar year 2011 and self-employment income in calendar year 2011, the OASDI payroll tax by 2 percentage points, applied to the portion of the tax paid by the worker and the self-employed individual.

Maximum Taxable Earnings:

Social Security (OASDI only)

2011: $106,800

2012: $110,110

Medicare (HI only) N o L i m i t

Quarter of Coverage:

Earnings needed to earn Social Security Credit

2011: $1,120

2012: $1,130

Retirement Earnings Test Exempt Amounts:

Under full retirement age

2011: $14,160/yr. ($1,180/mo.)

2012: $14,640/yr. ($1,220/mo.)

NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit

The year an individual reaches full retirement age
2011: $37,680/yr. ($3,140/mo.)

2012: $38,880/yr. ($3,240/mo.)

NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be witheld for every $3 in earnings about the limit.

There is no limit on the earnings beginning the month an individual attains full retirement age.

Social Security Disability Thresholds:

Substantial Gainful Activity (SGA)

Non-Blind

2011: $1,000/mo.

2012: $1,010/mo.

Blind

2011: $1,640/mo.

2012: $1,690/mo.

Trial Work Period (TWP)

2011: $720/mo.

2012: $720/mo.

Maximum Social Security Benefit: Worker Retiring at Full Retirement Age

2011: $2,366/mo.

2012: $2,513/mo.

SSI Federal Payment Standard

Individual
2011: $674/mo.

2012: $698/mo.

Couple
2011: $1,011/mo.

2012: $1,048/mo.

SSI Resources Limits

Individual

2011: $2,000

2012: $2,000

Couple

2011: $3,000

2012: $3,000

SSI Student Exclusion

Monthly Limit

2011: $1,640

2012: $1,700

Annual Limit

2011: $6,600

2012: $6,840

Estimated Average Monthly Social Security Benefits Payable in January 2012:
All Retired Workers

Before 3.6% COLA: $1,186

After 3.6% COLA: $1,229

Aged Couple, Both Receiving Benefits

Before 3.6% COLA: $1,925

After 3.6% COLA: $1,994

Widowed Mother and Two Children

Before 3.6% COLA: $2,455

After 3.6% COLA: $2,543

Aged Widow(er) Alone

Before 3.6% COLA: $1,143

After 3.6% COLA: $1,184

Disabled Worker, Spouse and One or More Children

Before 3.6% COLA: $1,826

After 3.6% COLA: $1,892

All Disabled Workers

Before 3.6% COLA: $1,072

After 3.6% COLA: $1,111