Cost-of-Living Adjustment (COLA):
| Based on the increase in the Consumer Price Index (CPI-W)
from the third quarter of 2001 through the third quarter of 2002,
Social Security and Supplemental Security Income (SSI) beneficiaries
will receive a 1.4 percent COLA for 2003. Other
important 2003 Social Security information follows: |
|
2003 SOCIAL SECURITY CHANGES
| Tax Rate |
2002 |
2003 |
| Employee |
7.65% |
7.65% |
| -- Social Security Portion
(OASDI) |
6.20% |
6.20% |
| -- Medicare Portion (HI) |
1.45% |
1.45% |
| Self-Employed |
15.30% |
15.30% |
-- Social Security Portion
(OASDI) |
12.40% |
12.40% |
| -- Medicare Portion (HI) |
2.90% |
2.90% |
| Maximum Earnings Taxable: |
2002 |
2003 |
| Social Security (OASDI only) |
$84,900 |
$87,000 |
| Medicare (HI only) |
No
Limit |
| Quarter of Coverage: |
2002 |
2003 |
| Earnings required |
$870 |
$890 |
| Retirement Earnings
Test Exempt Amounts: |
2002 |
2003 |
| Under full retirement
age
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. |
$11,280/yr.
($940/mo.) |
$11,520/yr.
($960/mo.)
|
Year 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. |
$30,000/yr.
($2,500/mo.) |
$30,720/yr.
($2,560/mo.) |
| There is no limit on earnings beginning
the month an individual attains full retirement age (65
for retirees born in 1937; 65 and 2 months for those born in 1938).
|
| Social Security Disability Thresholds |
2002 |
2003 |
| Substantial
Gainful Activity (SGA) |
Non-Blind |
$780/mo. |
$800/mo. |
| Blind |
$1,300/mo. |
$1,330/mo. |
| Trial Work Period
(TWP) |
$560/mo. |
$570/mo. |
Maximum Social Security Benefit:
Worker Retiring at Full Retirement Age in |
January 2002
(Age 65) |
March
2003
(Age 65 and 2 months) |
| NOTE: For retirees born in 1937, full
retirement age is 65; for those born in 1938, it is 65 and 2 months.
Full retirement age will gradually increase to age 67 for those
born in 1960 or later. |
$1,660/mo. |
$1,741/mo. |
| SSI Federal Payment Standard: |
2002 |
2003 |
| Individual |
$545/mo. |
$552/mo. |
| Couple |
$817/mo |
$829/mo. |
| SSI Resources Limits: |
2002 |
2003 |
| Individual |
$2,000 |
$2,000 |
| Couple |
$3,000 |
$3,000 |
| SSI Student Exclusion Limits: |
2002 |
2003 |
| Monthly Limit |
$1,320 |
$1,340 |
| Annual Limit |
$5,340 |
$5,410 |
Estimated Average Monthly Social Security Benefits
Payable in January 2003: |
Before
1.4% COLA |
After
1.4% COLA |
| All Retired Workers |
$ 882 |
$895 |
| Aged Couple, Both Receiving
Benefits |
$1,463 |
$1,483 |
| Widowed Mother and Two Children |
$1,812 |
$1,838 |
| Aged Widow(er) Alone |
$ 850 |
$ 862 |
| Disabled Worker, Spouse
and
One or More Children |
$1,376 |
$1,395 |
| All Disabled Workers |
$ 822 |
$ 833 |
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