Social Security Announces 4.1 Percent Benefit
Increase for 2006
Monthly Social Security and Supplemental Security Income benefits
for more than 52 million Americans will increase 4.1 percent in
2006, the Social Security Administration announced today.
Social Security and Supplemental Security Income benefits increase
automatically each year based on the rise in the Bureau of Labor
Statistics’ Consumer Price Index for Urban Wage Earners
and Clerical Workers (CPI-W), from the third quarter of the
prior year to the corresponding period of the current year. This
year's increase in the CPI-W was 4.1 percent.
The 4.1 percent Cost-of-Living Adjustment (COLA) will begin with
benefits that more than 48 million Social Security beneficiaries
receive in January 2006. Increased payments to 7 million Supplemental
Security Income beneficiaries will begin on December 30.
Some other changes that take effect in January of each year are
based on the increase in average wages. Based on that increase,
the maximum amount of earnings subject to the Social Security tax
(taxable maximum) will increase to $94,200 from $90,000. Of the
estimated 161 million workers who will pay Social Security taxes
in 2006, about 11.3 million will pay higher taxes as a result of
the increase in the taxable maximum in 2006.
It is important to note that no one’s Social Security benefit
will decrease as a result of the 2006
Medicare Part B premium increase, announced last month. By law,
the Part B premium increase cannot be larger than a beneficiary’s
COLA increase. More information about Medicare can be found at www.cms.hhs.gov.
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NOTE TO CORRESPONDENTS: A fact
sheet showing the effect of the various automatic adjustments
Copies of most SSA press releases, as well as other Social Security
information and statistics,
are available at SSA's Internet site, Social Security
Online, at http://www.socialsecurity.gov.
SSA Press Office 440
Altmeyer Bldg. 6401 Security Blvd. Baltimore, MD 21235
410-965-8904 FAX 410-966-9973