Home

Social Security Payments Will Jump 3.5% in 2001

Wed, 11/01/2000 - 1:00am — Karen Stevenson
Description: 

Kenneth S. Apfel, Commissioner of the Social Security Administration (SSA) announced cost of living (COLA) changes in Social Security payments for 2001. A 3.5% increase will begin with benefits that Social Security beneficiaries receive in January 2001. Increased payments to SSI recipients will begin on December 29.

For Social Security beneficiaries, the average monthly benefit amount for all retired workers will rise from $816 to $845. The maximum benefit will increase from $1,433 to $1,536.

The maximum federal SSI monthly payments to an individual will rise from $512 to $530. For a couple, the maximum federal SSI payment be unchanged at $769.

The earnings test that reduces Social Security for recipients who are age 65 or under also has changed. In the year the beneficiary turns 65, the earnings limit is $25,000 a year, up from the $17,000 a year limit in 2000. This limit only applies to earnings prior to the time the person turned 65. For people under age 65, the earnings limit in 2001 is $10,080, unchanged from 2000. The earnings test for people over age 65 was eliminated last year.

The maximum amount of earnings subject to the Social Security payroll tax will increase to $80,400 from $76,200.

Kenneth S. Apfel, Commissioner of the Social Security Administration (SSA) announced cost of living (COLA) changes in Social Security payments for 2001. A 3.5% increase will begin with benefits that Social Security beneficiaries receive in January 2001. Increased payments to SSI recipients will begin on December 29.

For Social Security beneficiaries, the average monthly benefit amount for all retired workers will rise from $816 to $845. The maximum benefit will increase from $1,433 to $1,536.

The maximum federal SSI monthly payments to an individual will rise from $512 to $530. For a couple, the maximum federal SSI payment be unchanged at $769.

The earnings test that reduces Social Security for recipients who are age 65 or under also has changed. In the year the beneficiary turns 65, the earnings limit is $25,000 a year, up from the $17,000 a year limit in 2000. This limit only applies to earnings prior to the time the person turned 65. For people under age 65, the earnings limit in 2001 is $10,080, unchanged from 2000. The earnings test for people over age 65 was eliminated last year.

The maximum amount of earnings subject to the Social Security payroll tax will increase to $80,400 from $76,200.