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1994.10.14 :  1995 Social Security Changes

Contact:  Phil Gambino or Tom Margenau  (410) 965-8904 (202) 690-8359
Friday, Oct. 14, 1994

               1995 SOCIAL SECURITY CHANGES ANNOUNCED


     HHS Secretary Donna E. Shalala announced today that Social
Security and Supplemental Security Income benefits will increase  
2.8 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 $679 to 
$698.  The maximum federal SSI monthly payments to an individual
will rise from $446 to $458.  For a couple, the maximum federal SSI
payment will rise from $669 to $687.

     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 2.8 percent.

                               # # # #

NOTE TO CORRESPONDENTS:  A fact sheet showing the effect of the
various automatic adjustments is attached. 
                    1995 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 1993 through the third quarter of 1994,
     Social Security beneficiaries and Supplemental Security Income
     (SSI) recipients received a 2.8 percent COLA for 1995.  Other
     important 1995 Social Security information is as follows:

                                   1994           1995

  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% on wages up to the applicable
               maximum taxable amount (see below).  The Medicare
               portion (HI) is 1.45% on all wages.

  o  Maximum Earnings Taxable:

     Social Security (OASDI only)  $60,600        $61,200 

     Medicare (HI only)               N o    L i m i t*

     *The maximum was eliminated by the "Omnibus Budget
     Reconciliation Act of 1993."

  o  Quarter of Coverage:

                                   $620           $630


  o  Retirement Earnings Test Exempt Amounts:*

     Age 65 thru 69                $11,160/yr.    $11,280/yr.
                                   ($930/mo.)     ($940/mo.)

     Under age 65                  $ 8,040/yr.    $ 8,160/yr.
                                   ($670/mo.)     ($680/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 1994 and 1995:

                                   $1,147/mo.     $1,199/mo.

  o  SSI Federal Payment Standard:

     Individual                    $446/mo.       $458/mo.

     Couple                        $669/mo.       $687/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 1994 COLA:

                                   Before         After
                                   2.8% COLA      2.8% COLA

     All Retired Workers           $  679         $  698

     Aged Couple, Both             $1,146         $1,178
       Receiving Benefits

     Widowed Mother and            $1,328         $1,365
       Two Children

     Aged Widow(er) Alone          $  638         $  656

     Disabled Worker, Spouse       $1,088         $1,118
       and One or More Children

     All Disabled Workers          $  643         $  661

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