SSA Announces 2009 COLA
November 1, 2008
Author: Catherine M. Callery (Kate)| Louise M. Tarantino
Ann Biddle, Esq., Paul M. Ryther, Esq.
On October 16, 2008, SSA announced its cost of living adjustments (COLA) for benefits effective January 2009. It is largest annual increase (5.8%) since 1982, and is based on the annual change in the Consumer Price Index.
The federal portion of monthly SSI benefits increases to $674 for individuals, $1,011 for couples. The current state supplemental payments in New York will remain the same: $87 for individuals living alone, $23 for living with others, and $104 for couples living in their own households, or $46 if the couple lives with others in the same household. http://www.ssa.gov/OACT/COLA/SSI.html
Other changes include:
- The student earned income exclusion for SSI recipients will increase to $1,640 per month but not more than $6,600 in 2009. http://www.ssa.gov/OACT/COLA/studentEIE.html
- Monthly fees allowed to institutional representative payees increase from $35 to $37 or, in the case of recipients and beneficiaries whose DAA requires a rep payee, from $68 this year to $72.
- Wage earners will earn a quarter of coverage, up to four, for each $1,090 of earnings in 2009. http://www.ssa.gov/OACT/COLA/QC.html
- The SGA threshold, based on the national average wage index instead of the CPI, increases to $980 per month, $1,640 for blind individuals, for 2009. http://www.ssa.gov/OACT/COLA/sga.html
- Disabled individuals who return to work accrue one Trial Work Period ("TWP") month for each month in 2009 during which they earn $700 or more.
Medicare changes were announced previously. The Part B premium for those with low incomes remains at $96.40 per month. The different changes for the rest of the population were announced in 73 Fed. Reg. 55089-55096 (September 24, 2008).
For all the details, including information on the retirement earnings test and exempt earnings amounts, visit SSA’s website: http://www.ssa.gov/OACT/COLA/index.html.
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