Automatic Increases
Cost of Living Adjustments
Fees by Fiscal Year
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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.
Determination of Fiscal Year 2008 Administration Fee
CPI-U data
June 2006 | June 2007 |
202.9 | 208.352 |
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Percentage increase in CPI-U, from June 2006
to June 2007, is 2.68703795 percent. |
Fee increase for fiscal year 2008 |
Fee determined for fiscal year 2007 is $9.69.
Fee increase is 2.68703795 percent of $9.69 or $0.26037398.
After rounding, the fee increase is $0.26.
Fee determined for fiscal year 2008 is $9.69 plus $0.26,
or $9.95. |
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