[nfbmi-talk] SSA Media Release

[Terry D. Eagle]

News Release

 

SOCIAL SECURITY Law Does Not Provide for a Social Security Cost-of-Living
Adjustment for 2016

 

With consumer prices down over the past year, monthly Social Security and
Supplemental Security Income (SSI) benefits for nearly 65 million Americans
will not automatically increase in 2016.

 

The Social Security Act provides for an automatic increase in Social
Security and SSI benefits if there is an increase in inflation as measured
by the Consumer Price Index for Urban Wage Earners and Clerical Workers
(CPI-W).  The period of consideration includes the third quarter of the last
year a cost-of-living adjustment (COLA) was made to the third quarter of the
current year.  As determined by the Bureau of Labor Statistics, there was no
increase in the CPI-W from the third quarter of 2014 to the third quarter of
2015.  Therefore, under existing law, there can be no COLA in 2016.

 

Other adjustments that would normally take effect based on changes in the
national average wage index also will not take effect in January 2016.
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 2016.  The attached fact sheet provides more information on
2016 Social Security and SSI changes.

 

The Department of Health and Human Services has not yet announced Medicare
premium changes for 2016.  Should there be an increase in the Medicare Part
B premium, the law contains a "hold harmless" provision that protects
approximately 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 2016.  In addition, beneficiaries who have their Medicare Part B premiums
paid by state medical assistance programs will see no change in their Social
Security benefit.  The state will be required to pay any Medicare Part B
premium increase.

 

Information about Medicare changes for 2016, when available, will be found
at www.medicare.gov <http://www.medicare.gov> .

 

For additional information, please go to www.socialsecurity.gov/cola
<http://www.socialsecurity.gov/cola> .