Cost-of-Living Adjustment (COLA):
Based on the increase in the Consumer Price Index (CPI-W)
from the third quarter of 2001 through the third quarter of 2002,
Social Security and Supplemental Security Income (SSI) beneficiaries
will receive a 1.4 percent COLA for 2003. Other
important 2003 Social Security information follows: |
|
2003 SOCIAL SECURITY CHANGES
Tax Rate |
2002 |
2003 |
Employee |
7.65% |
7.65% |
-- Social Security Portion
(OASDI) |
6.20% |
6.20% |
-- Medicare Portion (HI) |
1.45% |
1.45% |
Self-Employed |
15.30% |
15.30% |
-- Social Security Portion
(OASDI) |
12.40% |
12.40% |
-- Medicare Portion (HI) |
2.90% |
2.90% |
Maximum Earnings Taxable: |
2002 |
2003 |
Social Security (OASDI only) |
$84,900 |
$87,000 |
Medicare (HI only) |
No
Limit |
Quarter of Coverage: |
2002 |
2003 |
Earnings required |
$870 |
$890 |
Retirement Earnings
Test Exempt Amounts: |
2002 |
2003 |
Under full retirement
age
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. |
$11,280/yr.
($940/mo.) |
$11,520/yr.
($960/mo.)
|
Year individual reaches full retirement age NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit. |
$30,000/yr.
($2,500/mo.) |
$30,720/yr.
($2,560/mo.) |
There is no limit on earnings beginning
the month an individual attains full retirement age (65
for retirees born in 1937; 65 and 2 months for those born in 1938).
|
Social Security Disability Thresholds |
2002 |
2003 |
Substantial
Gainful Activity (SGA) |
Non-Blind |
$780/mo. |
$800/mo. |
Blind |
$1,300/mo. |
$1,330/mo. |
Trial Work Period
(TWP) |
$560/mo. |
$570/mo. |
Maximum Social Security Benefit:
Worker Retiring at Full Retirement Age in |
January 2002
(Age 65) |
March
2003
(Age 65 and 2 months) |
NOTE: For retirees born in 1937, full
retirement age is 65; for those born in 1938, it is 65 and 2 months.
Full retirement age will gradually increase to age 67 for those
born in 1960 or later. |
$1,660/mo. |
$1,741/mo. |
SSI Federal Payment Standard: |
2002 |
2003 |
Individual |
$545/mo. |
$552/mo. |
Couple |
$817/mo |
$829/mo. |
SSI Resources Limits: |
2002 |
2003 |
Individual |
$2,000 |
$2,000 |
Couple |
$3,000 |
$3,000 |
SSI Student Exclusion Limits: |
2002 |
2003 |
Monthly Limit |
$1,320 |
$1,340 |
Annual Limit |
$5,340 |
$5,410 |
Estimated Average Monthly Social Security Benefits
Payable in January 2003: |
Before
1.4% COLA |
After
1.4% COLA |
All Retired Workers |
$ 882 |
$895 |
Aged Couple, Both Receiving
Benefits |
$1,463 |
$1,483 |
Widowed Mother and Two Children |
$1,812 |
$1,838 |
Aged Widow(er) Alone |
$ 850 |
$ 862 |
Disabled Worker, Spouse
and
One or More Children |
$1,376 |
$1,395 |
All Disabled Workers |
$ 822 |
$ 833 |
[Return to Top] |