Fee for Administration of State Supplementary Payments
States are required to pay a fee for Federal administration of State
Supplementary Payments (supplemental to Federal SSI payments). The
provides a method to increase the fee for fiscal years after 2002. The method
sets the fee for the next fiscal year to be the fee for the current fiscal year
increased by the percentage, if any, by which the Consumer Price Index
(CPI) for the month of June in the current year exceeds the CPI for the month of
June in the preceding year. The resulting amount is to be rounded to the nearest
whole cent. The law also allows the Commissioner of Social Security to set a
different fee "appropriate for the State."
Fee for fiscal year 2013
The Social Security Administration has interpreted CPI to mean the "consumer price
index for all urban consumers" (CPI-U). Based on the increase in the CPI-U from
June 2011 to June 2012, we have determined the fee for fiscal year 2013 to be
$11.12. This amount applies to both optional and mandatory State
Supplementary Payments. Details concerning this determination are shown below.
Determination of Fiscal Year 2013 Administration Fee
Percentage increase in CPI-U, from June 2011 to June 2012,
is 1.66399376 percent.
Fee increase for fiscal year 2013
Fee determined for fiscal year 2012 is $10.94.
Fee increase is 1.66399376 percent of $10.94 or $0.18204092.
After rounding, the fee increase is $0.18.
Fee determined for fiscal year 2013 is $10.94 plus $0.18,