Full Text: HHS Release On 1995 Social Security Changes.

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

SOCIAL SECURITY ADMINISTRATION

FACT SHEET

SHIRLEY S. CHATER, COMMISSIONER OF SOCIAL SECURITY

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%

       Self-Employed                 15.30%             15.30%

       NOTE: The 7.65% represents the combined Social Security and

     o MAXIMUM EARNINGS TAXABLE:

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

       Medicare (HI only)                    No Limit *

       * The maximum was eliminated by the "Omnibus Budget

     o QUARTER OF COVERAGE:

                                     $620               $630

     o RETIREMENT EARNINGS TEST EXEMPT AMOUNTS: *

       Age 65 thru 69                $11,160/yr.        $11,280/yr.

       Under age 65                  $ 8,040/yr.        $ 8,160/yr.

       * NOTE: For people age 65 through 69, $1 in benefits will be

     o MAXIMUM SOCIAL SECURITY BENEFIT: WORKER RETIRING AT AGE 65 IN

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

     o SSI FEDERAL PAYMENT STANDARDS:

       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

                                     Before              After

       All Retired Workers           $679                $698

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

       Widowed Mother and            $1,328              $1,365

       Aged Widow(er) Alone          $638                $656

       Disabled Worker, Spouse       $1,088              $1,118

       All Disabled Workers          $643                $661