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