Fee for Administration of
State Supplementary Payments

States are required to pay a fee for Federal administration of State Supplementary Payments (supplemental to Federal SSI payments). The law provides a method to increase the fee for fiscal years after 2002. The method sets the fee for the next fiscal year to be the fee for the current fiscal year increased by the percentage, if any, by which the Consumer Price Index (CPI) for the month of June in the current year exceeds the CPI for the month of June in the preceding year. The resulting amount is to be rounded to the nearest whole cent. The law also allows the Commissioner of Social Security to set a different fee "appropriate for the State."

Fee for fiscal year 2008
The Social Security Administration has interpreted CPI to mean the "consumer price index for all urban consumers" (CPI-U). Based on the increase in the CPI-U from June 2006 to June 2007, we have determined the fee for fiscal year 2008 to be $9.95. This amount applies to both optional and mandatory State Supplementary Payments. Details concerning this determination are shown below.