States are required to pay a fee for Federal administration of State Supplementary Payments (supplemental to Federal SSI payments). The fee applies to each such State Supplementary payment made by SSA on behalf of the state. The law 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 2017
For this determination, 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 2015 to June 2016, we have determined the fee for fiscal year 2017 to be $11.68. This amount applies to both optional and mandatory State Supplementary Payments. Details concerning this determination are shown below.

Determination of Fiscal Year 2017 Administration Fee
CPI-U data
June 2015June 2016
238.638241.038

Percentage increase in CPI-U, from June 2015 to June 2016, is 1.00570739 percent.

Fee increase for fiscal year 2017

Fee determined for fiscal year 2016 is $11.56.
Fee increase is 1.00570739 percent of $11.56 or $0.11625977.
After rounding, the fee increase is $0.12.
Fee determined for fiscal year 2017 is $11.56 plus $0.12, or $11.68.