*This is an archive page. The links are no longer being updated. 

1993.
10.15 :  Increase in Social Security & SSI Benefits

Contact:  Phil Gambino  (410) 965-8904 (202) 690-8359
October 15, 1993

     HHS Secretary Donna E. Shalala announced today that Social
Security and Supplemental Security Income benefits will increase
2.6 percent, beginning with the payments that Social Security
beneficiaries receive Jan. 3 and SSI recipients receive on Dec. 30. 
The automatic cost-of-living adjustment is made annually.
     For Social Security beneficiaries, the average monthly benefit
amount for all retired workers will rise from $657 to $674.  The
maximum federal SSI monthly payments to an individual will rise
from $434 to $446.  For a couple, the maximum federal SSI payment
will rise from $652 to $669.
     Social Security and SSI benefits increase automatically each
year based on the rise in the Consumer Price Index for Urban Wage
Earners and Clerical Workers (CPI-W) from the third quarter of one
year through the corresponding period of the next.  This year's
increase in the CPI-W was 2.6 percent.

NOTE TO CORRESPONDENTS:  A fact sheet showing the effect of the
various automatic adjustments is attached.
FACT SHEET
 
                   1994 SOCIAL SECURITY CHANGES

o    Cost-of-Living  Adjustment   (COLA):

     Based on the increase in the Consumer Price Index (CPI-W) from
the third quarter of 1992 through the third quarter of 1993, Social
Security beneficiaries and Supplemental Security Income (SSI)
recipients received a 2.6 percent COLA for 1994.  Other important
1994 Social Security information is as follows:

                              1993                1994

o  Tax gate:

   Employee                   7.65%               7.65%
                              (6.20% OASDI,       (6.20% OASDI,
                              1.45% HI)           1.45% HI)

      Self-Employed           15.30%              15.30%

     NOTE:  The 7.65% represents the combined Social Security and
Medicare tax rate.  The Social security portion (OASDI) is 6.20%
on wages up to the applicable maximum taxable amount (see below). 
The Medicare portion (HI) is 1.45% on all wages for 1994.

o  Maximum Earnings Taxable:

   Social Security (OASDI only)  $  57,600           $ 60,600
   Medicare (HI only)              $135,000         No limit*

     *The maximum was eliminated by the "Omnibus Budget
Reconciliation Act of *This is an archive page. The links are no longer being updated. 

1993.
"

o  Quarter of Coverage:

                                   $590                $620

o  Retirement Earnings Test Exempt Amounts:*

Age 65 thru 69                     $10,560/yr.    $11,160/yr.
                                   ($880/mo.)     ($930/mo.)

Under age 65                       $ 7,680/yr.    $ 8,040/yr.
                                   ($640/mo.)     ($670/mo.)

     *NOTE:     For people age 65 through 69, $1 in benefits will
be withheld for every $3 in earnings above the limit.  For people
under age 65, $1 will be withheld for every $2 in earnings above
the limit.

o  Maximum Social Security Benefit:  Worker Retiring at Age 65 in
January of 1993 and 1994:

                                   $1,128/mo.     $1,147/mo.

o    SSI Federal Payment Standard:

     Individual                    $434/mo.       $446/mo.
     Couple                        $652/mo.       $669/mo.

o    SSI Resources Limits:

     Individual                    $2,000         $2,000
     Couple                        $3,000         $3,000

o    Average Monthly Social security Benefits: Before and After
the December 1993 COLA:

                                   Before         After
                                   2.6% COLA      2.6% COLA

All Retired Workers                $   657        $   674
Aged Couple, Both                  $1,111         $1,140
  Receiving Benefits
Widowed Mother and                 $1,282         $1,316
  Two Children
Aged Widow(er) Alone               $  615         $  631
Disabled Worker, Spouse            $1,064         $1,092
  and One or More Children
All Disabled Workers               $  625         $  641