Cost-of-Living Increase and Other Determinations for 2015
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Notice.
Citation: "79 FR 64455"
Document Number: "Docket No. SSA-2014-0064"
Page Number: "64455"
"Notices"
SUMMARY: Under title II of the Social Security Act (Act), there will be a 1.7 percent cost-of-living increase in
FOR FURTHER INFORMATION CONTACT:
SUPPLEMENTARY INFORMATION: Because of the 1.7 percent cost-of-living increase, the following items will increase for 2015:
(1) The maximum Federal Supplemental Security Income (SSI) monthly benefit amounts for 2015 under title XVI of the Act will be
(2) The special benefit amount under title VIII of the Act for certain World War II veterans will be
(3) The student earned income exclusion under title XVI of the Act will be
(4) The dollar fee limit for services performed as a representative payee will be
(5) The dollar limit on the administrative-cost fee assessment charged to an appointed representative such as an attorney, agent, or other person who represents claimants will be
The national average wage index for 2013 is
(1) The Old-Age, Survivors, and
(2) The monthly exempt amounts under the OASDI retirement earnings test for taxable years ending in calendar year 2015 will be
(3) The dollar amounts ("bend points") used in the primary insurance amount (PIA) benefit formula for workers who become eligible for benefits, or who die before becoming eligible, in 2015 will be
(4) The bend points used in the formula for computing maximum family benefits for workers who become eligible for benefits, or who die before becoming eligible, in 2015 will be
(5) The taxable earnings a person must have to be credited with a quarter of coverage in 2015 will be
(6) The "old-law" contribution and benefit base under title II of the Act will be
(7) The monthly amount deemed to constitute substantial gainful activity for statutorily blind persons in 2015 will be
(8) The earnings threshold establishing a month as a part of a trial work period will be
(9) Coverage thresholds for 2015 will be
According to section 215(i)(2)(D) of the Act, we must publish the benefit increase percentage and the revised table of "special minimum" benefits within 45 days after the close of the third calendar quarter of 2014. We must also publish by
Cost-of-Living Increases
General
The cost-of-living increase is 1.7 percent for benefits under titles II and XVI of the Act. Under title II, OASDI benefits will increase by 1.7 percent for individuals eligible for
Pursuant to section 1617 of the Act, Federal SSI payment levels will also increase by 1.7 percent effective for payments made for
Computation
Computation of the cost-of-living increase is based on an increase in a Consumer Price Index produced by the
Section 215(i)(1)(B) of the Act defines a "computation quarter" to be a third calendar quarter in which the average CPI exceeded the average CPI in the previous computation quarter. The last cost-of-living increase, effective for those eligible to receive title II benefits for
Section 215(i)(1) of the Act states that the CPI for a cost-of-living computation quarter is the arithmetic mean of this index for the 3 months in that quarter. In accordance with 20 CFR 404.275, we round the arithmetic mean, if necessary, to the nearest 0.001. The CPI for each month in the quarter ending
Section 215(i) also specifies that a benefit increase under title II, effective for December of any year, will be limited to the increase in the national average wage index for the prior year if the OASDI fund ratio for that year is below 20.0 percent. The OASDI fund ratio for a year is the ratio of the combined assets of the OASDI Trust Funds at the beginning of that year to the combined expenditures of these funds during that year. For 2014, the OASDI fund ratio is assets of
Program Amounts That Change Based on the Cost-of-Living Increase
The following program amounts change based on the cost-of-living increase: (1) Title II benefits; (2) title XVI benefits; (3) title VIII benefits; (4) the student earned income exclusion; (5) the fee for services performed by a representative payee; and (6) the appointed representative fee assessment.
Title II Benefit Amounts
In accordance with section 215(i) of the Act, for workers and family members for whom eligibility for benefits (i.e., the worker's attainment of age 62, or disability or death before age 62) occurred before 2015, benefits will increase by 1.7 percent beginning with benefits for
For eligibility after 1978, we determine benefits using a formula provided by the Social Security Amendments of 1977 (Pub. L. 95-216), as described later in this notice.
For eligibility before 1979, we determine benefits by using a benefit table. The table is available on the Internet at www.socialsecurity.gov/oact/ProgData/tableForm.html or by writing to:
Section 215(i)(2)(D) of the Act requires that, when we determine an increase in
Special Minimum PIAs and Maximum Family Benefits Payable forDecember 2014 Number of PIA Maximum years of family coverage benefit 11$39.90 $60.80 12 81.50 123.40 13 123.20 185.90 14 164.60 248.00 15 205.80 310.00 16 247.70 372.70 17 289.20 435.40 18 330.80 497.50 19 372.30 559.90 20 414.00 621.80 21 455.60 684.70 22 496.90 746.90 23 539.10 810.20 24 580.60 872.00 25 621.80 933.80 26 664.10 997.20 27 705.10 1,059.40 28 746.70 1,121.50 29 788.30 1,184.30 30 829.80 1,246.00
Title XVI Benefit Amounts
In accordance with section 1617 of the Act, maximum Federal SSI benefit amounts for the aged, blind, and disabled will increase by 1.7 percent effective
Title VIII Benefit Amount
Title VIII of the Act provides for special benefits to certain World War II veterans who reside outside
Student Earned Income Exclusion
A blind or disabled child who is a student regularly attending school, college, university, or a course of vocational or technical training can have limited earnings that do not count against his or her SSI benefits. The maximum amount of such income that we may exclude in 2014 is
To compute each of the monthly and yearly maximum amounts for 2015, we increase the unrounded amount for 2014 by the latest cost-of-living increase. If the amount so calculated is not a multiple of
Fee for Services Performed as a Representative Payee
Sections 205(j)(4)(A)(i) and 1631(a)(2)(D)(i) of the Act permit a qualified organization to collect a monthly fee from a beneficiary for expenses incurred in providing services as the beneficiary's representative payee. In 2014, the fee is limited to the lesser of: (1) 10 percent of the monthly benefit involved; or (2)
Appointed Representative Fee Assessment
Under sections 206(d) and 1631(d) of the Act, whenever we pay a fee to a representative such as an attorney, agent, or other person who represents claimants, we must impose on the representative an assessment to cover administrative costs. The assessment is no more than 6.3 percent of the representative's authorized fee or, if lower, a dollar amount that is subject to increase by the cost-of-living increase. We derive the dollar limit for
National Average Wage Index for 2013
Computation
We determined the national average wage index for calendar year 2013 based on the 2012 national average wage index of
Amount
Multiplying the national average wage index for 2012 (
Program Amounts That Change Based on the National Average Wage Index
The following amounts change with annual changes in the national average wage index: (1) The OASDI contribution and benefit base; (2) the exempt amounts under the retirement earnings test; (3) the dollar amounts, or bend points, in the PIA formula; (4) the bend points in the maximum family benefit formula; (5) the earnings required to credit a worker with a quarter of coverage; (6) the old-law contribution and benefit base (as determined under section 230 of the Act as in effect before the 1977 amendments); (7) the substantial gainful activity (SGA) amount applicable to statutorily blind individuals; and (8) the coverage threshold for election officials and election workers. Section 3121(x) of the Internal Revenue Code requires that the domestic employee coverage threshold be based on changes in the national average wage index.
In addition to the amounts required by statute, two amounts increase under regulatory requirements--the SGA amount applicable to non-blind disabled persons, and the monthly earnings threshold that establishes a month as part of a trial work period for disabled beneficiaries.
OASDI Contribution and Benefit Base
General
The OASDI contribution and benefit base is
Computation
Section 230(b) of the Act provides the formula used to determine the OASDI contribution and benefit base. Under the formula, the base for 2015 is the larger of: (1) The 1994 base of
Amount
Multiplying the 1994 OASDI contribution and benefit base (
Retirement Earnings Test Exempt Amounts
General
We withhold
For beneficiaries who attain NRA in the year, we withhold
Computation
Under the formula applicable to beneficiaries attaining NRA after 2015, the lower monthly exempt amount for 2015 is the larger of: (1) The 1994 monthly exempt amount multiplied by the ratio of the national average wage index for 2013 to that for 1992; or (2) the 2014 monthly exempt amount (
Under the formula that applies to beneficiaries attaining NRA in 2015, the higher monthly exempt amount for 2015 is the larger of: (1) The 2002 monthly exempt amount multiplied by the ratio of the national average wage index for 2013 to that for 2000; or (2) the 2014 monthly exempt amount (
Lower Exempt Amount
Multiplying the 1994 retirement earnings test monthly exempt amount of
Higher Exempt Amount
Multiplying the 2002 retirement earnings test monthly exempt amount of
Primary Insurance Amount Benefit Formula
General
The Social Security Amendments of 1977 provided a method for computing benefits that generally applies when a worker first becomes eligible for benefits after 1978. This method uses the worker's average indexed monthly earnings (AIME) to compute the PIA. We adjust the formula each year to reflect changes in general wage levels, as measured by the national average wage index.
We also adjust, or index, a worker's earnings to reflect the change in the general wage levels that occurred during the worker's years of employment. Such indexing ensures that a worker's future benefit level will reflect the general rise in the standard of living that will occur during his or her working lifetime. To compute the AIME, we first determine the required number of years of earnings. We then select the number of years with the highest indexed earnings, add the indexed earnings for those years, and divide the total amount by the total number of months in those years. We then round the resulting average amount down to the next lower dollar amount. The result is the AIME.
Computing the PIA
The PIA is the sum of three separate percentages of portions of the AIME. In 1979 (the first year the formula was in effect), these portions were the first
To obtain the bend points for 2015, we multiply each of the 1979 bend-point amounts by the ratio of the national average wage index for 2013 to that average for 1977. We then round these results to the nearest dollar. Multiplying the 1979 amounts of
Therefore, for individuals who first become eligible for old-age insurance benefits or disability insurance benefits in 2015, or who die in 2015 before becoming eligible for benefits, their PIA will be the sum of:
(a) 90 percent of the first
(b) 32 percent of their AIME over
(c) 15 percent of their AIME over
We round this amount to the next lower multiple of
Maximum Benefits Payable to a Family
General
The 1977 amendments continued the policy of limiting the total monthly benefits that a worker's family may receive based on his or her PIA. Those amendments also continued the relationship between maximum family benefits and PIAs but changed the method of computing the maximum benefits that may be paid to a worker's family. The Social Security Disability Amendments of 1980 (Pub. L. 96-265) established a formula for computing the maximum benefits payable to the family of a disabled worker. This formula applies to the family benefits of workers who first become entitled to disability insurance benefits after
Computing the Old-Age and Survivor Family Maximum
The formula used to compute the family maximum is similar to that used to compute the PIA. It involves computing the sum of four separate percentages of portions of the worker's PIA. In 1979, these portions were the first
To obtain the bend points for 2015, we multiply each of the 1979 bend-point amounts by the ratio of the national average wage index for 2013 to that average for 1977. Then we round this amount to the nearest dollar. Multiplying the amounts of
Thus, for the family of a worker who becomes age 62 or dies in 2015 before age 62, we will compute the total benefits payable to them so that it does not exceed:
(a) 150 percent of the first
(b) 272 percent of the worker's PIA over
(c) 134 percent of the worker's PIA over
(d) 175 percent of the worker's PIA over
We then round this amount to the next lower multiple of
Quarter of Coverage Amount
General
The earnings required for a quarter of coverage in 2015 is
Computation
Under the prescribed formula, the quarter of coverage amount for 2015 is the larger of: (1) The 1978 amount of
Quarter of Coverage Amount
Multiplying the 1978 quarter of coverage amount (
Old-Law Contribution and Benefit Base
General
The old-law contribution and benefit base for 2015 is
The old-law contribution and benefit base is used by:
(a) The Railroad Retirement program to determine certain tax liabilities and tier II benefits payable under that program to supplement the tier I payments that correspond to basic
(b) the
(c)
(d)
Computation
The old-law contribution and benefit base is the larger of: (1) The 1994 old-law base (
Amount
Multiplying the 1994 old-law contribution and benefit base (
Substantial Gainful Activity Amounts
General
A finding of disability under titles II and XVI of the Act requires that a person, except for a title XVI disabled child, be unable to engage in SGA. A person who is earning more than a certain monthly amount is ordinarily considered to be engaging in SGA. The monthly earnings considered as SGA depends on the nature of a person's disability. Section 223(d)(4)(A) of the Act specifies a higher SGA amount for statutorily blind individuals under title II while Federal regulations (20 CFR 404.1574 and 416.974) specify a lower SGA amount for non-blind individuals.
Computation
The monthly SGA amount for statutorily blind individuals under title II for 2015 is the larger of: (1) Such amount for 1994 multiplied by the ratio of the national average wage index for 2013 to that for 1992; or (2) such amount for 2014. The monthly SGA amount for non-blind disabled individuals for 2015 is the larger of: (1) Such amount for 2000 multiplied by the ratio of the national average wage index for 2013 to that for 1998; or (2) such amount for 2014. In either case, if the resulting amount is not a multiple of
SGA Amount for Statutorily Blind Individuals
Multiplying the 1994 monthly SGA amount for statutorily blind individuals (
SGA Amount for Non-Blind Disabled Individuals
Multiplying the 2000 monthly SGA amount for non-blind individuals (
Trial Work Period Earnings Threshold
General
During a trial work period of 9 months in a rolling 60-month period, a beneficiary receiving
Computation
The method used to determine the new amount is set forth in our regulations at 20 CFR 404.1592(b). Monthly earnings in 2015, used to determine whether a month is part of a trial work period, is the amount for 2001 (
Amount
Multiplying the 2001 monthly earnings threshold (
Domestic Employee Coverage Threshold
General
The minimum amount a domestic worker must earn so that such earnings are covered under
Computation
Under the formula, the domestic employee coverage threshold for 2015 is equal to the 1995 amount of
Domestic Employee Coverage Threshold Amount
Multiplying the 1995 domestic employee coverage threshold (
Election Official and Election Worker Coverage Threshold
General
The minimum amount an election official and election worker must earn so the earnings are covered under
Computation
Under the formula, the election official and election worker coverage threshold for 2015 is equal to the 1999 amount of
Election Worker Coverage Threshold Amount
Multiplying the 1999 election worker coverage threshold amount (
(Catalog of Federal Domestic Assistance: Program Nos. 96.001
Acting Commissioner of
[FR Doc. 2014-25802 Filed 10-28-14;
BILLING CODE 4191-02-P
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