Personal Injury and Social Security Disability Blog

Social Security Administration Announces 2007 Cost-Of-Living Adjustments

The Social Security Administration has announced cost-of-Living Adjustments for 2007. The information below is from the Social Security Administration Web site.

Cost-of-Living Adjustment (COLA):

Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2005 through the third quarter of 2006, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 3.3 percent COLA for 2007. Other important 2007 Social Security information is as follows:

Tax Rate	2006	2007
Employee	7.65%	7.65%
Self-Employed	15.30%	15.30%
NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings.

Maximum Earnings Taxable:	2006	2007
Social Security (OASDI only)	$94,200	$97,500
Medicare (HI only)	No Limit

Quarter of Coverage:	2006	2007
	$ 970	$1,000

Retirement Earnings Test Exempt Amounts:	2006	2007
Under full retirement age NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.	$12,480/yr. ($1,040/mo.)	$12,960/yr. ($1,080/mo.)
The year an individual reaches full retirement age 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.	$33,240/yr. ($2,770/mo.)	$34,440/yr. ($2,870/mo.)
There is no limit on earnings beginning the month an individual attains full retirement age (65 and 8 months for retirees born in 1941; 65 and 10 months for those born in 1942).

Social Security Disability Thresholds:		2006	2007
Substantial Gainful Activity (SGA)	Non-Blind	$  860/mo.	$  900/mo.
	Blind	$1,450/mo.	$1,500/mo.
Trial Work Period (TWP)		$  620/mo.	$  640/mo.

Maximum Social Security Benefit: Worker Retiring at Full Retirement Age in	2006	2007
NOTE: For retirees born in 1941, full retirement age is 65 and 8 months; for those born in 1942, it is 65 and 10 months. Full retirement age will gradually increase to age 67 for those born in 1960 and later.	$2,053/mo. (Age 65 and 8 months)	$2,116/mo. (Age 65 and 10 months)

SSI Federal Payment Standard:	2006	2007
Individual	$ 603/mo.	$ 623/mo.
Couple	$ 904/mo.	$ 934/mo.

SSI Resources Limits:	2006	2007
Individual	$2,000	$2,000
Couple	$3,000	$3,000

SSI Student Exclusion Limits:	2006	2007
Monthly Limit	$1,460	$1,510
Annual Limit	$5,910	$6,100

Estimated Average Monthly Social Security Benefits Payable in January 2007:	Before 3.3% COLA	After 3.3% COLA
All Retired Workers	$1,011	$1,044
Aged Couple, Both Receiving Benefits	$1,658	$1,713
Widowed Mother and Two Children	$2,098	$2,167
Aged Widow(er) Alone	$  976	$1,008
Disabled Worker, Spouse and One or More Children	$1,593	$1,646
All Disabled Workers	$  947	$  979

Link of the Day - Social Security Acronyms

One of the most daunting challenges to lawyers in a Social Security Disability practice is the ridiculous number of acronyms you need to learn. The National Organization of Social Security Disability Claimants Representatives (NOSSCR) has put up two comprehensive lists of acronyms. The first Acronym Glossary is for general claims and appeals acronyms, and the POMS list is for acronyms specific to the Social Security Administration's Program Operations Manual System. Whether you're a lawyer or a Social Security disability claimant, these sites can be helpful.