Cost-of-Living Adjustment (COLA):
| Based on the increase in the Consumer Price Index (CPI-W)
from the third quarter of 2000 through the third quarter of 2001,
Social Security beneficiaries and Supplemental Security Income (SSI)
recipients will receive a 2.6 percent COLA for 2002. Other important
2002 Social Security information is as follows: |
|
2002 SOCIAL SECURITY CHANGES
| Tax Rate |
2001 |
2002 |
| Employee |
7.65% |
7.65% |
| Self-Employed |
15.30% |
15.30% |
| NOTE: The 7.65% tax rate is the combined
rate for Social Security and Medicare. The Social Security portion
(OASDI) is 6.20% on earnings up to the applicable taxable maximum
amount (see below). The Medicare portion (HI) is 1.45% on all
earnings. |
| Maximum Earnings Taxable: |
2001 |
2002 |
| Social Security (OASDI only) |
$80,400 |
$84,900 |
| Medicare (HI only) |
No
Limit |
| Quarter of Coverage: |
2001 |
2002 |
| Earnings required |
$830 |
$870 |
Retirement Earnings Test Exempt Amounts:
| As of January 2000, the Retirement Earnings Test has
been eliminated for individuals age 65-69. It remains in effect for
those ages 62 through 64. A modified test applies for the year an
individual reaches age 65. (The Senior Citizens’ Freedom To Work
Act of 2000, signed into law by President Clinton on April 7, 2000.) |
| |
2001 |
2002 |
| Year individual reaches 65
|
$25,000/yr.
($2,084/mo.) |
$30,000/yr.
($2,500/mo.) |
| NOTE: Applies only to earnings for months
prior to attaining age 65. One dollar in benefits will be withheld
for every $3 in earnings above the limit. There is no limit on earnings
beginning the month an individual attains age 65. |
| Under age 65
|
$10,680/yr.
($890/mo.) |
$11,280/yr.
($940/mo.) |
| NOTE: One dollar in benefits will be withheld
for every $2 in earnings above the limit. |
| Social Security Disability Thresholds |
2001 |
2002 |
| Substantial
Gainful Activity (SGA) |
|
|
 Non-Blind |
$740/mo. |
$780/mo. |
Blind |
$1,240/mo. |
$1,300/mo. |
| Trial Work Period (TWP) |
$530/mo. |
$560/mo. |
Maximum Social Security Benefit:
Worker Retiring at Age 65 in January |
2001 |
2002 |
| |
$1,536/mo. |
$1,660/mo. |
| SSI Federal Payment Standard: |
2001 |
2002 |
| Individual |
$531/mo. |
$545/mo. |
| Couple |
$796/mo |
$817/mo. |
| SSI Resources Limits: |
2001 |
2002 |
| Individual |
$2,000 |
$2,000 |
| Couple |
$3,000 |
$3,000 |
| SSI Student Exclusion Limits: |
2001 |
2002 |
| Monthly Limit |
$1,290 |
$1,320 |
| Annual Limit |
$5,200 |
$5,340 |
| SSI Student Exclusion Limits: |
2001 |
2002 |
| Monthly Limit |
$1,290 |
$1,320 |
| Annual Limit |
$5,200 |
$5,340 |
|
www.socialsecurity.gov
