For Immediate Release
October 21, 2010

SOCIAL SECURITY
Under the Law No Social Security COLA for 2011

Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 58 million Americans will not automatically increase in 2011, the Social Security Administration announced today.

The Social Security Act provides for an automatic increase in Social Security and SSI benefits if there is an increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a cost-of-living adjustment (COLA) was determined to the third quarter of the current year. As determined by the Bureau of Labor Statistics, there is no increase in the CPI-W from the third quarter of 2008, the last year a COLA was determined, to the third quarter of 2010, therefore, under existing law, there can be no COLA in 2011.

Other changes that would normally take effect based on changes in the national average wage index also will not take effect in January 2011. Since there is no COLA, the statute also prohibits a change in the maximum amount of earnings subject to the Social Security tax as well as the retirement earnings test exempt amounts. These amounts will remain unchanged in 2011. The attached fact sheet provides more information on 2011 Social Security and SSI changes.

Information about Medicare changes for 2011, when available, will be found at www.Medicare.gov. The Department of Health and Human Services has not yet announced if there will be any Medicare premium changes for 2011. Should there be an increase in the Medicare Part B premium, the law contains a "hold harmless" provision that protects more than 70 percent of Social Security beneficiaries from paying a higher Part B premium, in order to avoid reducing their net Social Security benefit. Those not protected include higher income beneficiaries subject to an income-adjusted Part B premium and beneficiaries newly entitled to Part B in 2011. In addition, almost 20 percent of beneficiaries have their Medicare Part B premiums paid by state medical assistance programs and thus will see no change in their Social Security benefit. The state will be required to pay any Medicare Part B premium increase.

For additional information about the 2011 COLA, go to www.socialsecurity.gov/cola.

For additional information about changes in the national average wage index, go to www.socialsecurity.gov/OACT/COLA/AWI.html .

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Fact Sheet

SOCIAL SECURITY

2011 SOCIAL SECURITY CHANGES

o Cost-of-Living Adjustment (COLA):
Monthly Social Security and Supplemental Security Income (SSI) benefits will not automatically increase in 2011 as there is no increase in the Consumer Price Index (CPI-W) from the third quarter of 2008, the last year a COLA was determined, to the third quarter of 2010. Other important 2011 Social Security information is as follows:

2010 2011

o Maximum Taxable Earnings:

Social Security (OASDI only) $106,800 $106,800*

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

o Quarter of Coverage:

$1,120 $1,120**

o Primary Insurance Amount Bend Points:

First dollar amount $761 $753

Second dollar amount $4,583 $4,542

o Retirement Earnings Test Exempt Amounts:

Under full retirement age $14,160/yr. $14,160/yr.*

($1,180/mo.) ($1,180/mo.)

NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.

The year an individual reaches full retirement age $37,680/yr. $37,680/yr.*

($3,140/mo.) ($3,140/mo.)

NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.
There is no limit on earnings beginning the month an individual attains full retirement age.

o Social Security Disability Thresholds:

Substantial Gainful Activity (SGA)

Non-Blind $1,000/mo. $1,000/mo.**

Blind $1,640/mo $1,640/mo.*

Trial Work Period (TWP) $ 720/mo. $ 720/mo.**

o SSI Federal Payment Standard:

Individual $674/mo. $674/mo.*

Couple $1,011/mo. $1,011/mo.*

o SSI Student Exclusion:

Monthly limit $1,640 $1,640*

Annual limit $6,600 $6,600*

* By law, these amounts will be unchanged in 2011 because there is no COLA.
**By law, these amounts will be unchanged in 2011 because there was a decrease in the national average wage index for 2009.

Center in the Park is a community center that promotes positive aging and fosters community connections for older adults in Northwest Philadelphia, whose voices are critical instruments in shaping its activities and direction. CIP is accredited by the National Institute of Senior Centers, a unit of the National Council on Aging as a provider of excellent programs, activities and services for its active membership of more than 5,000 and its 1,000 homebound clients.
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