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1991.10.17 :  SSI Benefit Increases

Contacts: Phil Gambino or Frank Battistelli (301) 965-8904
October 17, 1991

       HHS Secretary Louis W. Sullivan, M.D., today announced that
Social Security and Supplemental Security Income (SSI) benefits
will increase 3.7 percent, beginning with the payments that Social
Security beneficiaries receive January 3 and SSI recipients receive
on December 31.  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 $607 to $629. 
The maximum federal SSI monthly payments to an individual will rise
from $407 to $422.  For a couple, the maximum federal SSI payment
will rise from $610 to $633.
       Social Security and SSI benefits increase 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 3.7 percent.

                              # # # 

NOTE TO CORRESPONDENTS:  A fact sheet showing the effect of the  
various automatic adjustments is attached.

                            FACT SHEET
                              Phil Gambino and Frank Battistelli
                                   (301) 965-8904

                   1992 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 1990 through the third quarter of
        1991, Social Security beneficiaries and Supplemental
        Security Income (SSI) recipients received a  3.7 percent
        COLA for 1992.  Other important 1992 Social Security
        information is as follows:

                                   1991             1992

o       Tax Rate:

        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%.  The Medicare portion (HI) is
               1.45%.

               *Self-employed individuals calculate their net
               earnings as gross earnings reduced by 7.65% (the
               employee tax rate).  They may then deduct 1/2 of
               their Social Security taxes on their net earnings
               for income tax purposes.

o       Maximum Earnings Taxable:

        Social Security            $53,400          $55,500
        (OASDI only)

        Medicare                   $125,000         $130,200
        (HI only)

o       Quarter of Coverage:

                                   $540             $570


o       Retirement Earnings Test Exempt Amounts:

        Age 65 thru 69*            $9,720/yr.    ** $10,200/yr.
                                   ($810/mo.)       ($850/mo.)

        Under age 65               $7,080/yr.    ** $7,440/yr.
                                   ($590/mo.)       ($620/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.

        **     1992 exempt amounts are subject to change based on 
               currently pending legislation.

o       Maximum Social Security Benefit:  Worker Retiring at 
        Age 65 in January of 1991 and 1992:

                                   $1022/mo.        $1,088/mo.

o       SSI Federal Payment Standard:

        Individual                 $407/mo.         $422/mo.

        Couple                     $610/mo.         $633/mo.

o       SSI Resource Limits:

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

o       Supplementary Medical Insurance Premium (SMI):

                                   $29.90/mo.       $31.80/mo.

o       Average Monthly Social Security Benefits:  Before and After
        the December 1991 COLA:

                                   Before           After
                                   3.7% COLA        3.7% COLA

        All Retired Workers        $  607           $  629

        Aged Couple, Both
          Receiving Benefits       $1,029           $1,067

        Widowed Mother and
          Two Children             $1,208           $1,252

        Aged Widow(er) Alone       $  563           $  584

        Disabled Worker, Spouse,
          and One or More Children $1,018           $1,056

All Disabled Workers               $  588           $  610