Cohen: Social Security Administration Announces 1.7 Percent Benefit Increase for 2013

MEMPHIS, TN – Congressman Steve Cohen (TN-09) today announced that monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 62 million Americans will increase 1.7 percent in 2013.  The 1.7 percent cost-of-living adjustment (COLA) will begin with benefits that more than 56 million Social Security beneficiaries receive in January 2013.  Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2012.

“The Social Security Administration made an important announcement today that will affect millions of Americans,” said Congressman Cohen.  “The purpose of the COLA is to ensure that the purchasing power of Social Security and SSI benefits is not eroded by inflation. More than 55,000 District 9 households rely on Social Security income to make ends meet. This extra money will go a long way toward helping people through tough economic times.”

Some other changes that take effect in January of each year are based on the increase in average wages.  Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $113,700 from $110,100.  Of the estimated 163 million workers who will pay Social Security taxes in 2013, nearly 10 million will pay higher taxes as a result of the increase in the taxable maximum.

Information about Medicare changes for 2013, when announced, will be available at www.Medicare.gov.  For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums.

The Social Security Act provides for how the COLA is calculated.  To learn more, please visit www.socialsecurity.gov/cola.

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