SS COLA for 2009
From the Social Security Administration:
Monthly Social Security and Supplemental Security Income benefitsfor more than 55 million Americans will increase 5.8 percent in 2009,the Social Security Administration announced today. The 5.8 percentincrease is the largest since 1982.
SocialSecurity and Supplemental Security Income benefits increaseautomatically each year based on the rise in the Bureau of LaborStatistics’ Consumer Price Index for Urban Wage Earners and Clerical Workers(CPI-W), from the third quarter of the prior year to the correspondingperiod of the current year. This year’s increase in the CPI-W was 5.8percent.
The 5.8 percent Cost-of-LivingAdjustment (COLA) will begin with benefits that over 50 million SocialSecurity beneficiaries receive in January 2009. Increased payments tomore than 7 million Supplemental Security Income beneficiaries willbegin on December 31.
Some other changes that take effect inJanuary of each year are based on the increase in average wages. Basedon that increase, the maximum amount of earnings subject to the SocialSecurity tax (taxable maximum) will increase to $106,800 from$102,000. Of the estimated 164 million workers who will pay SocialSecurity taxes in 2009, about 11 million will pay higher taxes as aresult of the increase in the taxable maximum.
Information about Medicare changes for 2009 can be found at www.medicare.gov.