Cost-of-Living Increase and Other Determinations for 2014, 66413-66418 [2013-26569]
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Federal Register / Vol. 78, No. 214 / Tuesday, November 5, 2013 / Notices
No. 1 thereto, be, and it hereby is,
approved.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.43
Kevin M. O’Neill,
Deputy Secretary.
[FR Doc. 2013–26409 Filed 11–4–13; 8:45 am]
BILLING CODE 8011–01–P
SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA–2013–0057]
Cost-of-Living Increase and Other
Determinations for 2014
Social Security Administration.
Notice.
AGENCY:
ACTION:
Under title II of the Social
Security Act (Act), there will be a 1.5
percent cost-of-living increase in Social
Security benefits effective December
2013. As a result of this increase, the
following items will increase for 2014:
(1) The maximum Federal
Supplemental Security Income (SSI)
monthly benefit amounts for 2014 under
title XVI of the Act will be $721 for an
eligible individual, $1,082 for an
eligible individual with an eligible
spouse, and $361 for an essential
person;
(2) The special benefit amount under
title VIII of the Act for certain World
War II veterans will be $540.75 for 2014;
(3) The student earned income
exclusion under title XVI of the Act will
be $1,750 per month in 2014, but not
more than $7,060 for all of 2014;
(4) The dollar fee limit for services
performed as a representative payee will
be $40 per month ($77 per month in the
case of a beneficiary who is disabled
and has an alcoholism or drug addiction
condition that leaves him or her
incapable of managing benefits) in 2014;
and
(5) The dollar limit on the
administrative-cost fee assessment
charged to an appointed representative
such as an attorney, agent, or other
person who represents claimants will be
$89 beginning in December 2013.
The national average wage index for
2012 is $44,321.67. This index affects
the following amounts:
(1) The Old-Age, Survivors, and
Disability Insurance (OASDI)
contribution and benefit base will be
$117,000 for remuneration paid in 2014
and self-employment income earned in
taxable years beginning in 2014;
(2) The monthly exempt amounts
under the OASDI retirement earnings
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SUMMARY:
43 17
CFR 200.30–3(a)(12).
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test for taxable years ending in calendar
year 2014 will be $1,290 for
beneficiaries who will attain their
Normal Retirement Age (NRA) (defined
below) after 2014 and $3,450 for those
who attain NRA in 2014;
(3) The dollar amounts (‘‘bend
points’’) used in the primary insurance
amount (PIA) benefit formula for
workers who become eligible for
benefits, or who die before becoming
eligible, in 2014 will be $816 and
$4,917;
(4) The bend points used in the
formula for computing maximum family
benefits for workers who become
eligible for benefits, or who die before
becoming eligible, in 2014 will be
$1,042, $1,505, and $1,962;
(5) The amount of taxable earnings a
person must have to be credited with a
quarter of coverage in 2014 will be
$1,200;
(6) The ‘‘old-law’’ contribution and
benefit base under title II of the Act will
be $87,000 for 2014;
(7) The monthly amount deemed to
constitute substantial gainful activity
(SGA) for statutorily blind individuals
in 2014 will be $1,800, and the
corresponding amount for non-blind
disabled persons will be $1,070;
(8) The earnings threshold
establishing a month as a part of a trial
work period will be $770 for 2014; and
(9) Coverage thresholds for 2014 will
be $1,900 for domestic workers and
$1,600 for election officials and election
workers.
FOR FURTHER INFORMATION CONTACT:
Susan C. Kunkel, Office of the Chief
Actuary, Social Security
Administration, 6401 Security
Boulevard, Baltimore, MD 21235, (410)
965–3000. Information relating to this
announcement is available on our
Internet site at www.socialsecurity.gov/
oact/cola/. For information
on eligibility or claiming benefits, call
1–800–772–1213, or visit our Internet
site at www.socialsecurity.gov.
SUPPLEMENTARY INFORMATION: In
accordance with the Act, we must
publish within 45 days after the close of
the third calendar quarter of 2013 the
benefit increase percentage and the
revised table of ‘‘special minimum’’
benefits (section 215(i)(2)(D)). Also, we
must publish on or before November 1
the national average wage index for
2012 (section 215(a)(1)(D)), the OASDI
fund ratio for 2013 (section
215(i)(2)(C)(ii)), the OASDI contribution
and benefit base for 2014 (section
230(a)), the amount of earnings required
to be credited with a quarter of coverage
in 2014 (section 213(d)(2)), the monthly
exempt amounts under the Social
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Security retirement earnings test for
2014 (section 203(f)(8)(A)), the formula
for computing a PIA for workers who
first become eligible for benefits or die
in 2014 (section 215(a)(1)(D)), and the
formula for computing the maximum
amount of benefits payable to the family
of a worker who first becomes eligible
for old-age benefits or dies in 2014
(section 203(a)(2)(C)).
Cost-of-Living Increases
General
The cost-of-living increase is 1.5
percent for benefits under titles II and
XVI of the Act. Under title II, OASDI
benefits will increase by 1.5 percent for
individuals eligible for December 2013
benefits, payable in January 2014. This
increase is based on the authority
contained in section 215(i) of the Act.
Pursuant to section 1617 of the Act,
Federal SSI payment levels will also
increase by 1.5 percent effective for
payments made for the month of
January 2014 but paid on December 31,
2013.
Computation
Section 215(i)(1)(B) of the Act defines
a ‘‘computation quarter’’ to be a third
calendar quarter in which the average
Consumer Price Index (CPI) for Urban
Wage Earners and Clerical Workers
exceeded the average CPI in the
previous computation quarter. The last
cost-of-living increase, effective for
those eligible to receive title II benefits
for December 2012, was based on the
CPI increase from the third quarter of
2011 to the third quarter of 2012.
Accordingly, the last computation
quarter is the third quarter of 2012. The
law stipulates that a cost-of-living
increase for benefits is determined
based on the percentage increase, if any,
in the CPI from the last computation
quarter to the third quarter of the
current year. Therefore, we compute the
increase in the CPI from the third
quarter of 2012 to the third quarter of
2013.
Section 215(i)(1) of the Act provides
that the CPI for a cost-of-living
computation quarter is the arithmetic
mean of this index for the 3 months in
that quarter. In accordance with 20 CFR
404.275, we round the arithmetic mean,
if necessary, to the nearest 0.001. The
CPI for Urban Wage Earners and Clerical
Workers for each month in the quarter
ending September 30, 2012, is: For July
2012, 225.568; for August 2012,
227.056; and for September 2012,
228.184. The arithmetic mean for that
calendar quarter is 226.936. The
corresponding CPI for each month in the
quarter ending September 30, 2013, is:
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For July 2013, 230.084; for August 2013,
230.359; and for September 2013,
230.537. The arithmetic mean for this
calendar quarter is 230.327. The CPI for
the calendar quarter ending September
30, 2013, exceeds that for the calendar
quarter ending September 30, 2012 by
1.5 percent (rounded to the nearest 0.1).
Therefore, beginning December 2013 a
cost-of-living benefit increase of 1.5
percent is effective for benefits under
title II of the Act.
Section 215(i) also specifies that a
benefit increase under title II, effective
for December of any year, will be
limited to the increase in the national
average wage index for the prior year if
the OASDI fund ratio for that year is
below 20.0 percent. The OASDI fund
ratio for a year is the ratio of the
combined assets of the OASDI Trust
Funds at the beginning of that year to
the combined expenditures of these
funds during that year. For 2013, the
OASDI fund ratio is assets of $2,732,334
million divided by estimated
expenditures of $825,382 million, or
331.0 percent. Because the 331.0
percent OASDI fund ratio exceeds 20.0
percent, the benefit increase for
December 2013 is not limited.
Program Amounts That Change Based
on the Cost-of-Living Increase
The following program amounts
change based on the cost-of-living
increase: (1) Title II benefits; (2) title
XVI benefits; (3) title VIII benefits; (4)
the student earned income exclusion;
(5) the fee for services performed by a
representative payee; and (6) the
appointed representative fee
assessment.
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In accordance with section 215(i) of
the Act, for workers and family
members for whom eligibility for
benefits (i.e., the worker’s attainment of
age 62, or disability or death before age
62) occurred before 2014, benefits will
increase by 1.5 percent beginning with
benefits for December 2013, which are
payable in January 2014. In the case of
first eligibility after 2013, the 1.5
percent increase will not apply.
For eligibility after 1978, benefits are
generally determined using a benefit
formula provided by the Social Security
Amendments of 1977 (Pub. L. 95–216),
as described later in this notice.
For eligibility before 1979, we
determine benefits by means of a benefit
table. The table is available on the
Internet at www.socialsecurity.gov/oact/
ProgData/tableForm.html or by writing
to: Social Security Administration,
Office of Public Inquiries, Windsor Park
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corresponding yearly unrounded
Federal SSI benefit amounts of
$8,529.32, $12,792.55, and $4,274.43.
For 2014, these yearly unrounded
amounts increase by 1.5 percent to
$8,657.26, $12,984.44, and $4,338.55,
respectively. Each of these resulting
amounts must be rounded, when not a
multiple of $12, to the next lower
multiple of $12. Accordingly, the
corresponding annual amounts,
effective for 2014, are $8,652, $12,984,
and $4,332. Dividing the yearly amounts
by 12 gives the corresponding monthly
amounts for 2014–$721, $1,082, and
$361, respectively. In the case of an
eligible individual with an eligible
spouse, we equally divide the amount
payable between the two spouses.
Title VIII Benefit Amount
Title VIII of the Act provides for
special benefits to certain World War II
veterans residing outside the United
States. Section 805 provides that ‘‘[t]he
benefit under this title payable to a
qualified individual for any month shall
be in an amount equal to 75 percent of
the Federal benefit rate [the maximum
amount for an eligible individual] under
title XVI for the month, reduced by the
SPECIAL MINIMUM PIAs AND MAXIMUM amount of the qualified individual’s
FAMILY BENEFITS PAYABLE FOR DE- benefit income for the month.’’
Accordingly, the monthly benefit for
CEMBER 2013
2014 under this provision is 75 percent
of $721, or $540.75.
Number of
Maximum
years of
coverage
Title II Benefit Amounts
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Building, 6401 Security Boulevard,
Baltimore, MD 21235.
Section 215(i)(2)(D) of the Act
requires that, when we determine an
increase in Social Security benefits, we
will publish in the Federal Register a
revision of the range of the PIAs and
corresponding maximum family benefits
based on the dollar amount and other
provisions described in section
215(a)(1)(C)(i). We refer to these benefits
as special minimum benefits. These
benefits are payable to certain
individuals with long periods of
relatively low earnings. To qualify for
such benefits, an individual must have
at least 11 years of coverage. To earn a
year of coverage for purposes of the
special minimum benefit, a person must
earn at least a certain proportion of the
old-law contribution and benefit base
(described later in this notice). For years
before 1991, the proportion is 25
percent; for years after 1990, it is 15
percent. In accordance with section
215(a)(1)(C)(i), the table below shows
the revised range of PIAs and
corresponding maximum family benefit
amounts after the 1.5 percent benefit
increase.
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
PIA
......................
......................
......................
......................
......................
......................
......................
......................
......................
......................
......................
......................
......................
......................
......................
......................
......................
......................
......................
......................
$39.30
80.20
121.20
161.90
202.40
243.50
284.40
325.30
366.10
407.10
448.00
488.60
530.10
570.90
611.50
653.00
693.40
734.30
775.20
816.00
family
benefit
$59.80
121.40
182.80
243.90
304.90
366.50
428.20
489.20
550.60
611.50
673.30
734.50
796.70
857.50
918.20
980.60
1,041.70
1,102.80
1,164.60
1,225.20
Title XVI Benefit Amounts
In accordance with section 1617 of
the Act, maximum Federal SSI benefit
amounts for the aged, blind, and
disabled will increase by 1.5 percent
effective January 2014. For 2013, we
derived the monthly benefit amounts for
an eligible individual, an eligible
individual with an eligible spouse, and
for an essential person—$710, $1,066,
and $356, respectively—from
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Student Earned Income Exclusion
A blind or disabled child who is a
student regularly attending school,
college, university, or a course of
vocational or technical training can
have limited earnings that are not
counted against his or her SSI benefits.
The maximum amount of such income
that may be excluded in 2013 is $1,730
per month, but not more than $6,960 in
all of 2013. These amounts increase
based on a formula set forth in
regulation 20 CFR 416.1112.
To compute each of the monthly and
yearly maximum amounts for 2014, we
increase the corresponding unrounded
amount for 2013 by the latest cost-ofliving increase. If the amount so
calculated is not a multiple of $10, we
round it to the nearest multiple of $10.
The unrounded monthly amount for
2013 is $1,725.70. We increase this
amount by 1.5 percent to $1,751.59,
which we then round to $1,750.
Similarly, we increase the unrounded
yearly amount for 2013, $6,956.28, by
1.5 percent to $7,060.62 and round this
to $7,060. Accordingly, the maximum
amount of the income exclusion
applicable to a student in 2014 is $1,750
per month but not more than $7,060 in
all of 2014.
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Fee for Services Performed as a
Representative Payee
Sections 205(j)(4)(A)(i) and
1631(a)(2)(D)(i) of the Act permit a
qualified organization to collect from a
beneficiary a monthly fee for expenses
incurred in providing services
performed as such beneficiary’s
representative payee. In 2013 the fee is
limited to the lesser of: (1) 10 percent of
the monthly benefit involved; or (2) $39
per month ($76 per month in any case
in which the beneficiary is entitled to
disability benefits and has an
alcoholism or drug addiction condition
that makes the individual incapable of
managing such benefits). The dollar fee
limits are subject to increase by the costof-living increase, with the resulting
amounts rounded to the nearest whole
dollar amount. Accordingly, we increase
the current amounts by 1.5 percent to
$40 and $77 for 2014.
Appointed Representative Fee
Assessment
Under sections 206(d) and 1631(d) of
the Act, whenever we pay a fee to a
representative such as an attorney,
agent, or other person who represents
claimants, we must impose on the
representative an assessment to cover
administrative costs. Such assessment is
no more than 6.3 percent of the
representative’s authorized fee or, if
lower, a dollar amount that is subject to
increase by the cost-of-living increase.
We derive the dollar limit for December
2013 by increasing the unrounded limit
for December 2012, $88.35, by 1.5
percent, which is $89.68. We then
round $89.68 to the next lower multiple
of $1. The dollar limit effective for
December 2013 is, therefore, $89.
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National Average Wage Index for 2012
Computation
We determined the national average
wage index for calendar year 2012 based
on the 2011 national average wage index
of $42,979.61, announced in the Federal
Register on October 30, 2012 (77 FR
65754), along with the percentage
increase in average wages from 2011 to
2012, as measured by annual wage data.
We tabulate the annual wage data,
including contributions to deferred
compensation plans, as required by
section 209(k) of the Act. The average
amounts of wages calculated directly
from these data were $41,211.36 and
$42,498.21 for 2011 and 2012,
respectively. To determine the national
average wage index for 2012 at a level
that is consistent with the national
average wage indexing series for 1951
through 1977 (published December 29,
1978, at 43 FR 61016), we multiply the
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2011 national average wage index of
$42,979.61 by the percentage increase in
average wages from 2011 to 2012 (based
on SSA-tabulated wage data) as follows,
with the result rounded to the nearest
cent.
Amount
Multiplying the national average wage
index for 2011 ($42,979.61) by the ratio
of the average wage for 2012
($42,498.21) to that for 2011
($41,211.36) produces the 2012 index,
$44,321.67. The national average wage
index for calendar year 2012 is about
3.12 percent higher than the 2011 index.
Program Amounts That Change Based
on the National Average Wage Index
The following amounts change with
annual changes in the national average
wage index: (1) The OASDI contribution
and benefit base; (2) the exempt
amounts under the retirement earnings
test; (3) the dollar amounts, or bend
points, in the PIA formula; (4) the bend
points in the maximum family benefit
formula; (5) the amount of earnings
required for a worker to be credited with
a quarter of coverage; (6) the old-law
contribution and benefit base (as
determined under section 230 of the Act
as in effect before the 1977
amendments); (7) the SGA amount
applicable to statutorily blind
individuals; and (8) the coverage
threshold for election officials and
election workers. Also, section 3121(x)
of the Internal Revenue Code requires
that the domestic employee coverage
threshold be based on changes in the
national average wage index.
In addition to the amounts required
by statute, two amounts increase under
regulatory requirements—the SGA
amount applicable to non-blind
disabled persons, and the monthly
earnings threshold that establishes a
month as part of a trial work period for
disabled beneficiaries.
OASDI Contribution and Benefit Base
General
The OASDI contribution and benefit
base is $117,000 for remuneration paid
in 2014 and self-employment income
earned in taxable years beginning in
2014. The OASDI contribution and
benefit base serves as the maximum
annual amount of earnings on which
OASDI taxes are paid. It is also the
maximum annual amount of earnings
used in determining a person’s OASDI
benefits.
Computation
Section 230(b) of the Act provides the
formula used to determine the OASDI
contribution and benefit base. Under the
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formula, the base for 2014 is the larger
of: (1) The 1994 base of $60,600
multiplied by the ratio of the national
average wage index for 2012 to that for
1992; or (2) the current base ($113,700).
If the resulting amount is not a multiple
of $300, it is rounded to the nearest
multiple of $300.
Amount
Multiplying the 1994 OASDI
contribution and benefit base amount
($60,600) by the ratio of the national
average wage index for 2012 ($44,321.67
as determined above) to that for 1992
($22,935.42) produces the amount of
$117,106.78. We round this amount to
$117,000. Because $117,000 exceeds the
current base amount of $113,700, the
OASDI contribution and benefit base is
$117,000 for 2014.
Retirement Earnings Test Exempt
Amounts
General
We withhold Social Security benefits
when a beneficiary under the NRA has
earnings in excess of the applicable
retirement earnings test exempt amount.
NRA is the age of initial benefit
entitlement for which the benefit, before
rounding, is equal to the worker’s PIA.
The NRA is age 66 for those born in
1943–54, and it gradually increases
reaching age 67 for those born in 1960
or later. A higher exempt amount
applies in the year in which a person
attains his or her NRA, but only with
respect to earnings in months prior to
such attainment, and a lower exempt
amount applies at all other ages below
NRA. Section 203(f)(8)(B) of the Act, as
amended by section 102 of Public Law
104–121, provides formulas for
determining the monthly exempt
amounts. The corresponding annual
exempt amounts are exactly 12 times
the monthly amounts.
For beneficiaries attaining NRA in the
year, we withhold $1 in benefits for
every $3 of earnings in excess of the
annual exempt amount for months prior
to such attainment. For all other
beneficiaries under NRA, we withhold
$1 in benefits for every $2 of earnings
in excess of the annual exempt amount.
Computation
Under the formula applicable to
beneficiaries attaining NRA after 2014,
the lower monthly exempt amount for
2014 is the larger of: (1) The 1994
monthly exempt amount multiplied by
the ratio of the national average wage
index for 2012 to that for 1992; or (2) the
2013 monthly exempt amount ($1,260).
If the resulting amount is not a multiple
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of $10, it is rounded to the nearest
multiple of $10.
Under the formula applicable to
beneficiaries attaining NRA in 2014, the
higher monthly exempt amount for 2014
is the larger of: (1) The 2002 monthly
exempt amount multiplied by the ratio
of the national average wage index for
2012 to that for 2000; or (2) the 2013
monthly exempt amount ($3,340). If the
resulting amount is not a multiple of
$10, it is rounded to the nearest
multiple of $10.
Lower Exempt Amount
Multiplying the 1994 retirement
earnings test monthly exempt amount of
$670 by the ratio of the national average
wage index for 2012 ($44,321.67) to that
for 1992 ($22,935.42) produces the
amount of $1,294.74. We round this to
$1,290. Because $1,290 exceeds the
corresponding current exempt amount
of $1,260, the lower retirement earnings
test monthly exempt amount is $1,290
for 2014. The corresponding lower
annual exempt amount is $15,480 under
the retirement earnings test.
Higher Exempt Amount
Multiplying the 2002 retirement
earnings test monthly exempt amount of
$2,500 by the ratio of the national
average wage index for 2012
($44,321.67) to that for 2000
($32,154.82) produces the amount of
$3,445.96. We round this to $3,450.
Because $3,450 exceeds the
corresponding current exempt amount
of $3,340, the higher retirement earnings
test monthly exempt amount is $3,450
for 2014. The corresponding higher
annual exempt amount is $41,400 under
the retirement earnings test.
Primary Insurance Amount Benefit
Formula
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General
The Social Security Amendments of
1977 provided a method for computing
benefits that generally applies when a
worker first becomes eligible for benefits
after 1978. This method uses the
worker’s average indexed monthly
earnings (AIME) to compute the PIA.
We adjust the computation formula each
year to reflect changes in general wage
levels, as measured by the national
average wage index.
We also adjust, or index, a worker’s
earnings to reflect the change in the
general wage levels that occurred during
the worker’s years of employment. Such
indexing ensures that a worker’s future
benefit level will reflect the general rise
in the standard of living that will occur
during his or her working lifetime. To
compute the AIME, we first determine
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the required number of years of
earnings. We then select the number of
years with the highest indexed earnings,
add the indexed earnings for those
years, and divide the total amount by
the total number of months in those
years. We then round the resulting
average amount down to the next lower
dollar amount. The result is the AIME.
Computing the PIA
The PIA is the sum of three separate
percentages of portions of the AIME. In
1979 (the first year the formula was in
effect), these portions were the first
$180, the amount between $180 and
$1,085, and the amount over $1,085. We
call the dollar amounts in the formula
governing the portions of the AIME the
‘‘bend points’’ of the formula. Therefore,
the bend points for 1979 were $180 and
$1,085.
To obtain the bend points for 2014,
we multiply each of the 1979 bendpoint amounts by the ratio of the
national average wage index for 2012 to
that average for 1977. We then round
these results to the nearest dollar.
Multiplying the 1979 amounts of $180
and $1,085 by the ratio of the national
average wage index for 2012
($44,321.67) to that for 1977 ($9,779.44)
produces the amounts of $815.78 and
$4,917.36. We round these to $816 and
$4,917. Accordingly, the portions of the
AIME to be used in 2014 are the first
$816, the amount between $816 and
$4,917, and the amount over $4,917.
Consequently, for individuals who
first become eligible for old-age
insurance benefits or disability
insurance benefits in 2014, or who die
in 2014 before becoming eligible for
benefits, their PIA will be the sum of:
(a) 90 percent of the first $816 of their
AIME, plus
(b) 32 percent of their AIME over $816
and through $4,917, plus
(c) 15 percent of their AIME over
$4,917.
We round this amount to the next
lower multiple of $0.10 if it is not
already a multiple of $0.10. This
formula and the rounding adjustment
described above are contained in section
215(a) of the Act.
Maximum Benefits Payable to a Family
General
The 1977 amendments continued the
long-established policy of limiting the
total monthly benefits that a worker’s
family may receive based on his or her
PIA. Those amendments also continued
the then-existing relationship between
maximum family benefits and PIAs but
changed the method of computing the
maximum amount of benefits that may
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be paid to a worker’s family. The Social
Security Disability Amendments of 1980
(Pub. L. 96–265) established a formula
for computing the maximum benefits
payable to the family of a disabled
worker. This formula applies to the
family benefits of workers who first
become entitled to disability insurance
benefits after June 30, 1980, and who
first become eligible for these benefits
after 1978. For disabled workers
initially entitled to disability benefits
before July 1980 or whose disability
began before 1979, we compute the
family maximum payable the same as
the old-age and survivor family
maximum.
Computing the Old-Age and Survivor
Family Maximum
The formula used to compute the
family maximum is similar to that used
to compute the PIA. It involves
computing the sum of four separate
percentages of portions of the worker’s
PIA. In 1979, these portions were the
first $230, the amount between $230
and $332, the amount between $332 and
$433, and the amount over $433. We
refer to such dollar amounts in the
formula as the ‘‘bend points’’ of the
family-maximum formula.
To obtain the bend points for 2014,
we multiply each of the 1979 bendpoint amounts by the ratio of the
national average wage index for 2012 to
that average for 1977. Then we round
this amount to the nearest dollar.
Multiplying the amounts of $230, $332,
and $433 by the ratio of the national
average wage index for 2012
($44,321.67) to that for 1977 ($9,779.44)
produces the amounts of $1,042.39,
$1,504.67, and $1,962.41. We round
these amounts to $1,042, $1,505, and
$1,962. Accordingly, the portions of the
PIAs to be used in 2014 are the first
$1,042, the amount between $1,042 and
$1,505, the amount between $1,505 and
$1,962, and the amount over $1,962.
Consequently, for the family of a
worker who becomes age 62 or dies in
2014 before age 62, we will compute the
total amount of benefits payable to them
so that it does not exceed:
(a) 150 percent of the first $1,042 of
the worker’s PIA, plus
(b) 272 percent of the worker’s PIA
over $1,042 through $1,505, plus
(c) 134 percent of the worker’s PIA
over $1,505 through $1,962, plus
(d) 175 percent of the worker’s PIA
over $1,962.
We then round this amount to the
next lower multiple of $0.10 if it is not
already a multiple of $0.10. This
formula and the rounding adjustment
described above are contained in section
203(a) of the Act.
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Quarter of Coverage Amount
General
The amount of earnings required for
a quarter of coverage in 2014 is $1,200.
A quarter of coverage is the basic unit
for determining whether a worker is
insured under the Social Security
program. For years before 1978, we
generally credited an individual with a
quarter of coverage for each quarter in
which wages of $50 or more were paid,
or with 4 quarters of coverage for every
taxable year in which $400 or more of
self-employment income was earned.
Beginning in 1978, employers generally
report wages on an annual basis instead
of a quarterly basis. With the change to
annual reporting, section 352(b) of the
Social Security Amendments of 1977
amended section 213(d) of the Act to
provide that a quarter of coverage would
be credited for each $250 of an
individual’s total wages and selfemployment income for calendar year
1978, up to a maximum of 4 quarters of
coverage for the year.
Computation
Under the prescribed formula, the
quarter of coverage amount for 2014 is
the larger of (1) the 1978 amount of $250
multiplied by the ratio of the national
average wage index for 2012 to that for
1976; or (2) the current amount of
$1,160. Section 213(d) provides that if
the resulting amount is not a multiple
of $10, it is rounded to the nearest
multiple of $10.
Quarter of Coverage Amount
Multiplying the 1978 quarter of
coverage amount ($250) by the ratio of
the national average wage index for
2012 ($44,321.67) to that for 1976
($9,226.48) produces the amount of
$1,200.94. We then round this amount
to $1,200. Because $1,200 exceeds the
current amount of $1,160, the quarter of
coverage amount is $1,200 for 2014.
wreier-aviles on DSK5TPTVN1PROD with NOTICES
Old-Law Contribution and Benefit Base
General
The old-law contribution and benefit
base for 2014 is $87,000. This base
would have been effective under the Act
without the enactment of the 1977
amendments.
The old-law contribution and benefit
base is used by:
(a) the Railroad Retirement program to
determine certain tax liabilities and tier
II benefits payable under that program
to supplement the tier I payments that
correspond to basic Social Security
benefits,
(b) the Pension Benefit Guaranty
Corporation to determine the maximum
amount of pension guaranteed under the
VerDate Mar<15>2010
15:22 Nov 04, 2013
Jkt 232001
Employee Retirement Income Security
Act (section 230(d) of the Act),
(c) Social Security to determine a year
of coverage in computing the special
minimum benefit, as described earlier,
and
(d) Social Security to determine a year
of coverage (acquired whenever
earnings equal or exceed 25 percent of
the old-law base for this purpose only)
in computing benefits for persons who
are also eligible to receive pensions
based on employment not covered
under section 210 of the Act.
Computation
The old-law contribution and benefit
base is the larger of: (1) The 1994 oldlaw base ($45,000) multiplied by the
ratio of the national average wage index
for 2012 to that for 1992; or (2) the
current old-law base ($84,300). If the
resulting amount is not a multiple of
$300, it is rounded to the nearest
multiple of $300.
Amount
Multiplying the 1994 old-law
contribution and benefit base amount
($45,000) by the ratio of the national
average wage index for 2012
($44,321.67) to that for 1992
($22,935.42) produces the amount of
$86,960.48. We round this amount to
$87,000. Because $87,000 exceeds the
current amount of $84,300, the old-law
contribution and benefit base is $87,000
for 2014.
Substantial Gainful Activity Amounts
General
A finding of disability under titles II
and XVI of the Act requires that a
person, except for a title XVI disabled
child, be unable to engage in SGA. A
person who is earning more than a
certain monthly amount is ordinarily
considered to be engaging in SGA. The
amount of monthly earnings considered
as SGA depends on the nature of a
person’s disability. Section 223(d)(4)(A)
of the Act specifies a higher SGA
amount for statutorily blind individuals
under title II while Federal regulations
(20 CFR 404.1574 and 416.974) specify
a lower SGA amount for non-blind
individuals.
Computation
The monthly SGA amount for
statutorily blind individuals under title
II for 2014 is the larger of: (1) Such
amount for 1994 multiplied by the ratio
of the national average wage index for
2012 to that for 1992; or (2) such
amount for 2013. The monthly SGA
amount for non-blind disabled
individuals for 2014 is the larger of: (1)
Such amount for 2000 multiplied by the
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Sfmt 4703
66417
ratio of the national average wage index
for 2012 to that for 1998; or (2) such
amount for 2013. In either case, if the
resulting amount is not a multiple of
$10, it is rounded to the nearest
multiple of $10.
SGA Amount for Statutorily Blind
Individuals
Multiplying the 1994 monthly SGA
amount for statutorily blind individuals
($930) by the ratio of the national
average wage index for 2012
($44,321.67) to that for 1992
($22,935.42) produces the amount of
$1,797.18. We then round this amount
to $1,800. Because $1,800 exceeds the
current amount of $1,740, the monthly
SGA amount for statutorily blind
individuals is $1,800 for 2014.
SGA Amount for Non-Blind Disabled
Individuals
Multiplying the 2000 monthly SGA
amount for non-blind individuals ($700)
by the ratio of the national average wage
index for 2012 ($44,321.67) to that for
1998 ($28,861.44) produces the amount
of $1,074.97. We then round this
amount to $1,070. Because $1,070
exceeds the current amount of $1,040,
the monthly SGA amount for non-blind
disabled individuals is $1,070 for 2014.
Trial Work Period Earnings Threshold
General
During a trial work period of 9
months in a rolling 60-month period, a
beneficiary receiving Social Security
disability benefits may test his or her
ability to work and still receive monthly
benefit payments. To be considered a
trial work period month, earnings must
be over a certain level. In 2014, any
month in which earnings exceed $770 is
considered a month of services for an
individual’s trial work period.
Computation
The method used to determine the
new amount is set forth in our
regulations at 20 CFR 404.1592(b).
Monthly earnings in 2014, used to
determine whether a month is part of a
trial work period, is such amount for
2001 ($530) multiplied by the ratio of
the national average wage index for
2012 to that for 1999 or, if larger, such
amount for 2013. If the amount so
calculated is not a multiple of $10, we
round it to the nearest multiple of $10.
Amount
Multiplying the 2001 monthly
earnings threshold ($530) by the ratio of
the national average wage index for
2012 ($44,321.67) to that for 1999
($30,469.84) produces the amount of
$770.94. We then round this amount to
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Federal Register / Vol. 78, No. 214 / Tuesday, November 5, 2013 / Notices
$770. Because $770 exceeds the current
amount of $750, the monthly earnings
threshold is $770 for 2014.
Domestic Employee Coverage
Threshold
General
The minimum amount a domestic
worker must earn so that such earnings
are covered under Social Security or
Medicare is the domestic employee
coverage threshold. For 2014, this
threshold is $1,900. Section 3121(x) of
the Internal Revenue Code provides the
formula for increasing the threshold.
Under the formula, the domestic
employee coverage threshold amount
for 2014 is equal to the 1995 amount of
$1,000 multiplied by the ratio of the
national average wage index for 2012 to
that for 1993. If the resulting amount is
not a multiple of $100, it is rounded to
the next lower multiple of $100.
Domestic Employee Coverage Threshold
Amount
Multiplying the 1995 domestic
employee coverage threshold amount
($1,000) by the ratio of the national
average wage index for 2012
($44,321.67) to that for 1993
($23,132.67) produces the amount of
$1,915.98. We then round this amount
to $1,900. Accordingly, the domestic
employee coverage threshold amount is
$1,900 for 2014.
Election Official and Election Worker
Coverage Threshold
General
The minimum amount an election
official and election worker must earn
so that such earnings are covered under
Social Security or Medicare is the
election official and election worker
coverage threshold. For 2014, this
threshold is $1,600. Section 218(c)(8)(B)
of the Act provides the formula for
increasing the threshold.
Computation
wreier-aviles on DSK5TPTVN1PROD with NOTICES
463, 5 U.S.C., App.), notice is hereby
given for a meeting of RTCA Special
Committee 217—Aeronautical Databases
held jointly with EUROCAE WG–44—
Aeronautical Databases. The agenda will
include the following:
(Catalog of Federal Domestic Assistance:
Program Nos. 96.001 Social SecurityDisability Insurance; 96.002 Social SecurityRetirement Insurance; 96.004 Social SecuritySurvivors Insurance; 96.006 Supplemental
Security Income)
Monday, December 2—Opening Plenary
Session
Dated: October 31, 2013.
Carolyn W. Colvin,
Acting Commissioner of Social Security.
[FR Doc. 2013–26569 Filed 11–1–13; 4:15 pm]
Computation
Under the formula, the election
official and election worker coverage
threshold amount for 2014 is equal to
the 1999 amount of $1,000 multiplied
by the ratio of the national average wage
index for 2012 to that for 1997. If the
amount so determined is not a multiple
of $100, it is rounded to the nearest
multiple of $100.
Election Worker Coverage Threshold
Amount
Multiplying the 1999 election worker
coverage threshold amount ($1,000) by
the ratio of the national average wage
VerDate Mar<15>2010
index for 2012 ($44,321.67) to that for
1997 ($27,426.00) produces the amount
of $1,616.05. We then round this
amount to $1,600. Accordingly, the
election worker coverage threshold
amount is $1,600 for 2014.
15:22 Nov 04, 2013
Jkt 232001
BILLING CODE P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Eighteenth Meeting: RTCA Special
Committee 217—Aeronautical
Databases Joint With EUROCAE WG–
44—Aeronautical Databases
Federal Aviation
Administration (FAA), U.S. Department
of Transportation (DOT).
ACTION: Notice of RTCA Special
Committee 217—Aeronautical Databases
Joint with EUROCAE WG–44—
Aeronautical Databases.
AGENCY:
The FAA is issuing this notice
to advise the public of a meeting of
RTCA Special Committee 217—
Aeronautical Databases being held
jointly with EUROCAE WG–44—
Aeronautical Databases.
DATES: The meeting will be held
December 2 through December 6, 2013,
from 9:00 a.m. to 5:00 p.m.
ADDRESSES: The meeting will be hosted
by Boeing, 100 Boeing Way B–82,
Titusville, Florida 32780, USA. Preregistration for this meeting is required
to accommodate the Boeing Facility
Requirements. Information is to be
provided to Brian Gilbert
(brian.d.gilbert@boeing.com). US
citizens need to provide their full names
and company names in an email to
Brian. Non-US persons need to fill out
the Non-US Person Badge form available
on RTCA Workspace.
FOR FURTHER INFORMATION CONTACT:
Sophie Bousquet, SBousquet@rtca.org,
202–330–0663 or The RTCA Secretariat,
1150 18th Street NW., Suite 910,
Washington, DC 20036, or by telephone
at (202) 833–9339, fax at (202) 833–
9434, or Web site at https://www.rtca.org.
SUPPLEMENTARY INFORMATION: Pursuant
to section 10(a)(2) of the Federal
Advisory Committee Act (Pub. L. 92–
SUMMARY:
PO 00000
Frm 00090
Fmt 4703
Sfmt 4703
• Co-Chairmen’s remarks and
introductions
• Approve minutes from 17th meeting
• Review and approve meeting agenda
for 18th meeting
• Review of joint WG–1/WG–2 Action
Items
• Review of ISRA from SC–217 to SC–
216
• Continuation, ‘‘Data Terms
Definitions’’ Review
Monday Thru Thursday, Dec 2 Through
Dec 5—Working Group One (WG1)–
DO–200A/ED–76
• Discussion of WG–1 open action
items
• Standards related to ED–76/DO–200
• Source data considerations
• Tool qualification aspects (including a
presentation of DO–330/ED215 by the
corresponding RTCA Committee SC
Chairman)
• DAL and DQR considerations
• Clarification of terms (user/end-user,
end-use/intended use, etc.)
• Aeronautical data flow (text to
support the figure agreed in Dublin)
Monday Thru Thursday, Dec 2 Through
Dec 5—Working Group Two (WG2)–
DO–272/DO–291
• WG–2 Action Item Status Review
• Terms of Reference for Dec PMC
Meeting
• Report on Recent Meetings—
European Committee for
Standardisation (CEN), Technical
Committee (TC) 377 ‘‘Air Traffic
Management’’—WG 2—Aerodrome
Mapping Data
• Helicopter Terrain and Obstacle
Data—Progress Report
• Airport Lighting Presentation
Closing Plenary Session (9:00 a.m. to
Noon)
• Presentation of WG1 and WG2
conclusions
• Working arrangements for the
remaining work
• Review of action items
• Next meetings, dates and locations
• Any other business
• Adjourn
Attendance is open to the interested
public but limited to space availability.
With the approval of the chairman,
members of the public may present oral
statements at the meeting. Persons
E:\FR\FM\05NON1.SGM
05NON1
]]>Agencies
[Federal Register Volume 78, Number 214 (Tuesday, November 5, 2013)]
[Notices]
[Pages 66413-66418]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-26569]
=======================================================================
-----------------------------------------------------------------------
SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA-2013-0057]
Cost-of-Living Increase and Other Determinations for 2014
AGENCY: Social Security Administration.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: Under title II of the Social Security Act (Act), there will be
a 1.5 percent cost-of-living increase in Social Security benefits
effective December 2013. As a result of this increase, the following
items will increase for 2014:
(1) The maximum Federal Supplemental Security Income (SSI) monthly
benefit amounts for 2014 under title XVI of the Act will be $721 for an
eligible individual, $1,082 for an eligible individual with an eligible
spouse, and $361 for an essential person;
(2) The special benefit amount under title VIII of the Act for
certain World War II veterans will be $540.75 for 2014;
(3) The student earned income exclusion under title XVI of the Act
will be $1,750 per month in 2014, but not more than $7,060 for all of
2014;
(4) The dollar fee limit for services performed as a representative
payee will be $40 per month ($77 per month in the case of a beneficiary
who is disabled and has an alcoholism or drug addiction condition that
leaves him or her incapable of managing benefits) in 2014; and
(5) The dollar limit on the administrative-cost fee assessment
charged to an appointed representative such as an attorney, agent, or
other person who represents claimants will be $89 beginning in December
2013.
The national average wage index for 2012 is $44,321.67. This index
affects the following amounts:
(1) The Old-Age, Survivors, and Disability Insurance (OASDI)
contribution and benefit base will be $117,000 for remuneration paid in
2014 and self-employment income earned in taxable years beginning in
2014;
(2) The monthly exempt amounts under the OASDI retirement earnings
test for taxable years ending in calendar year 2014 will be $1,290 for
beneficiaries who will attain their Normal Retirement Age (NRA)
(defined below) after 2014 and $3,450 for those who attain NRA in 2014;
(3) The dollar amounts (``bend points'') used in the primary
insurance amount (PIA) benefit formula for workers who become eligible
for benefits, or who die before becoming eligible, in 2014 will be $816
and $4,917;
(4) The bend points used in the formula for computing maximum
family benefits for workers who become eligible for benefits, or who
die before becoming eligible, in 2014 will be $1,042, $1,505, and
$1,962;
(5) The amount of taxable earnings a person must have to be
credited with a quarter of coverage in 2014 will be $1,200;
(6) The ``old-law'' contribution and benefit base under title II of
the Act will be $87,000 for 2014;
(7) The monthly amount deemed to constitute substantial gainful
activity (SGA) for statutorily blind individuals in 2014 will be
$1,800, and the corresponding amount for non-blind disabled persons
will be $1,070;
(8) The earnings threshold establishing a month as a part of a
trial work period will be $770 for 2014; and
(9) Coverage thresholds for 2014 will be $1,900 for domestic
workers and $1,600 for election officials and election workers.
FOR FURTHER INFORMATION CONTACT: Susan C. Kunkel, Office of the Chief
Actuary, Social Security Administration, 6401 Security Boulevard,
Baltimore, MD 21235, (410) 965-3000. Information relating to this
announcement is available on our Internet site at
www.socialsecurity.gov/oact/cola/. For information on
eligibility or claiming benefits, call 1-800-772-1213, or visit our
Internet site at www.socialsecurity.gov.
SUPPLEMENTARY INFORMATION: In accordance with the Act, we must publish
within 45 days after the close of the third calendar quarter of 2013
the benefit increase percentage and the revised table of ``special
minimum'' benefits (section 215(i)(2)(D)). Also, we must publish on or
before November 1 the national average wage index for 2012 (section
215(a)(1)(D)), the OASDI fund ratio for 2013 (section
215(i)(2)(C)(ii)), the OASDI contribution and benefit base for 2014
(section 230(a)), the amount of earnings required to be credited with a
quarter of coverage in 2014 (section 213(d)(2)), the monthly exempt
amounts under the Social Security retirement earnings test for 2014
(section 203(f)(8)(A)), the formula for computing a PIA for workers who
first become eligible for benefits or die in 2014 (section
215(a)(1)(D)), and the formula for computing the maximum amount of
benefits payable to the family of a worker who first becomes eligible
for old-age benefits or dies in 2014 (section 203(a)(2)(C)).
Cost-of-Living Increases
General
The cost-of-living increase is 1.5 percent for benefits under
titles II and XVI of the Act. Under title II, OASDI benefits will
increase by 1.5 percent for individuals eligible for December 2013
benefits, payable in January 2014. This increase is based on the
authority contained in section 215(i) of the Act.
Pursuant to section 1617 of the Act, Federal SSI payment levels
will also increase by 1.5 percent effective for payments made for the
month of January 2014 but paid on December 31, 2013.
Computation
Section 215(i)(1)(B) of the Act defines a ``computation quarter''
to be a third calendar quarter in which the average Consumer Price
Index (CPI) for Urban Wage Earners and Clerical Workers exceeded the
average CPI in the previous computation quarter. The last cost-of-
living increase, effective for those eligible to receive title II
benefits for December 2012, was based on the CPI increase from the
third quarter of 2011 to the third quarter of 2012. Accordingly, the
last computation quarter is the third quarter of 2012. The law
stipulates that a cost-of-living increase for benefits is determined
based on the percentage increase, if any, in the CPI from the last
computation quarter to the third quarter of the current year.
Therefore, we compute the increase in the CPI from the third quarter of
2012 to the third quarter of 2013.
Section 215(i)(1) of the Act provides that the CPI for a cost-of-
living computation quarter is the arithmetic mean of this index for the
3 months in that quarter. In accordance with 20 CFR 404.275, we round
the arithmetic mean, if necessary, to the nearest 0.001. The CPI for
Urban Wage Earners and Clerical Workers for each month in the quarter
ending September 30, 2012, is: For July 2012, 225.568; for August 2012,
227.056; and for September 2012, 228.184. The arithmetic mean for that
calendar quarter is 226.936. The corresponding CPI for each month in
the quarter ending September 30, 2013, is:
[[Page 66414]]
For July 2013, 230.084; for August 2013, 230.359; and for September
2013, 230.537. The arithmetic mean for this calendar quarter is
230.327. The CPI for the calendar quarter ending September 30, 2013,
exceeds that for the calendar quarter ending September 30, 2012 by 1.5
percent (rounded to the nearest 0.1). Therefore, beginning December
2013 a cost-of-living benefit increase of 1.5 percent is effective for
benefits under title II of the Act.
Section 215(i) also specifies that a benefit increase under title
II, effective for December of any year, will be limited to the increase
in the national average wage index for the prior year if the OASDI fund
ratio for that year is below 20.0 percent. The OASDI fund ratio for a
year is the ratio of the combined assets of the OASDI Trust Funds at
the beginning of that year to the combined expenditures of these funds
during that year. For 2013, the OASDI fund ratio is assets of
$2,732,334 million divided by estimated expenditures of $825,382
million, or 331.0 percent. Because the 331.0 percent OASDI fund ratio
exceeds 20.0 percent, the benefit increase for December 2013 is not
limited.
Program Amounts That Change Based on the Cost-of-Living Increase
The following program amounts change based on the cost-of-living
increase: (1) Title II benefits; (2) title XVI benefits; (3) title VIII
benefits; (4) the student earned income exclusion; (5) the fee for
services performed by a representative payee; and (6) the appointed
representative fee assessment.
Title II Benefit Amounts
In accordance with section 215(i) of the Act, for workers and
family members for whom eligibility for benefits (i.e., the worker's
attainment of age 62, or disability or death before age 62) occurred
before 2014, benefits will increase by 1.5 percent beginning with
benefits for December 2013, which are payable in January 2014. In the
case of first eligibility after 2013, the 1.5 percent increase will not
apply.
For eligibility after 1978, benefits are generally determined using
a benefit formula provided by the Social Security Amendments of 1977
(Pub. L. 95-216), as described later in this notice.
For eligibility before 1979, we determine benefits by means of a
benefit table. The table is available on the Internet at
www.socialsecurity.gov/oact/ProgData/tableForm.html or by writing to:
Social Security Administration, Office of Public Inquiries, Windsor
Park Building, 6401 Security Boulevard, Baltimore, MD 21235.
Section 215(i)(2)(D) of the Act requires that, when we determine an
increase in Social Security benefits, we will publish in the Federal
Register a revision of the range of the PIAs and corresponding maximum
family benefits based on the dollar amount and other provisions
described in section 215(a)(1)(C)(i). We refer to these benefits as
special minimum benefits. These benefits are payable to certain
individuals with long periods of relatively low earnings. To qualify
for such benefits, an individual must have at least 11 years of
coverage. To earn a year of coverage for purposes of the special
minimum benefit, a person must earn at least a certain proportion of
the old-law contribution and benefit base (described later in this
notice). For years before 1991, the proportion is 25 percent; for years
after 1990, it is 15 percent. In accordance with section
215(a)(1)(C)(i), the table below shows the revised range of PIAs and
corresponding maximum family benefit amounts after the 1.5 percent
benefit increase.
Special Minimum PIAs and Maximum Family Benefits Payable for December
2013
------------------------------------------------------------------------
Maximum
Number of years of coverage PIA family
benefit
------------------------------------------------------------------------
11............................................ $39.30 $59.80
12............................................ 80.20 121.40
13............................................ 121.20 182.80
14............................................ 161.90 243.90
15............................................ 202.40 304.90
16............................................ 243.50 366.50
17............................................ 284.40 428.20
18............................................ 325.30 489.20
19............................................ 366.10 550.60
20............................................ 407.10 611.50
21............................................ 448.00 673.30
22............................................ 488.60 734.50
23............................................ 530.10 796.70
24............................................ 570.90 857.50
25............................................ 611.50 918.20
26............................................ 653.00 980.60
27............................................ 693.40 1,041.70
28............................................ 734.30 1,102.80
29............................................ 775.20 1,164.60
30............................................ 816.00 1,225.20
------------------------------------------------------------------------
Title XVI Benefit Amounts
In accordance with section 1617 of the Act, maximum Federal SSI
benefit amounts for the aged, blind, and disabled will increase by 1.5
percent effective January 2014. For 2013, we derived the monthly
benefit amounts for an eligible individual, an eligible individual with
an eligible spouse, and for an essential person--$710, $1,066, and
$356, respectively--from corresponding yearly unrounded Federal SSI
benefit amounts of $8,529.32, $12,792.55, and $4,274.43. For 2014,
these yearly unrounded amounts increase by 1.5 percent to $8,657.26,
$12,984.44, and $4,338.55, respectively. Each of these resulting
amounts must be rounded, when not a multiple of $12, to the next lower
multiple of $12. Accordingly, the corresponding annual amounts,
effective for 2014, are $8,652, $12,984, and $4,332. Dividing the
yearly amounts by 12 gives the corresponding monthly amounts for 2014-
$721, $1,082, and $361, respectively. In the case of an eligible
individual with an eligible spouse, we equally divide the amount
payable between the two spouses.
Title VIII Benefit Amount
Title VIII of the Act provides for special benefits to certain
World War II veterans residing outside the United States. Section 805
provides that ``[t]he benefit under this title payable to a qualified
individual for any month shall be in an amount equal to 75 percent of
the Federal benefit rate [the maximum amount for an eligible
individual] under title XVI for the month, reduced by the amount of the
qualified individual's benefit income for the month.'' Accordingly, the
monthly benefit for 2014 under this provision is 75 percent of $721, or
$540.75.
Student Earned Income Exclusion
A blind or disabled child who is a student regularly attending
school, college, university, or a course of vocational or technical
training can have limited earnings that are not counted against his or
her SSI benefits. The maximum amount of such income that may be
excluded in 2013 is $1,730 per month, but not more than $6,960 in all
of 2013. These amounts increase based on a formula set forth in
regulation 20 CFR 416.1112.
To compute each of the monthly and yearly maximum amounts for 2014,
we increase the corresponding unrounded amount for 2013 by the latest
cost-of-living increase. If the amount so calculated is not a multiple
of $10, we round it to the nearest multiple of $10. The unrounded
monthly amount for 2013 is $1,725.70. We increase this amount by 1.5
percent to $1,751.59, which we then round to $1,750. Similarly, we
increase the unrounded yearly amount for 2013, $6,956.28, by 1.5
percent to $7,060.62 and round this to $7,060. Accordingly, the maximum
amount of the income exclusion applicable to a student in 2014 is
$1,750 per month but not more than $7,060 in all of 2014.
[[Page 66415]]
Fee for Services Performed as a Representative Payee
Sections 205(j)(4)(A)(i) and 1631(a)(2)(D)(i) of the Act permit a
qualified organization to collect from a beneficiary a monthly fee for
expenses incurred in providing services performed as such beneficiary's
representative payee. In 2013 the fee is limited to the lesser of: (1)
10 percent of the monthly benefit involved; or (2) $39 per month ($76
per month in any case in which the beneficiary is entitled to
disability benefits and has an alcoholism or drug addiction condition
that makes the individual incapable of managing such benefits). The
dollar fee limits are subject to increase by the cost-of-living
increase, with the resulting amounts rounded to the nearest whole
dollar amount. Accordingly, we increase the current amounts by 1.5
percent to $40 and $77 for 2014.
Appointed Representative Fee Assessment
Under sections 206(d) and 1631(d) of the Act, whenever we pay a fee
to a representative such as an attorney, agent, or other person who
represents claimants, we must impose on the representative an
assessment to cover administrative costs. Such assessment is no more
than 6.3 percent of the representative's authorized fee or, if lower, a
dollar amount that is subject to increase by the cost-of-living
increase. We derive the dollar limit for December 2013 by increasing
the unrounded limit for December 2012, $88.35, by 1.5 percent, which is
$89.68. We then round $89.68 to the next lower multiple of $1. The
dollar limit effective for December 2013 is, therefore, $89.
National Average Wage Index for 2012
Computation
We determined the national average wage index for calendar year
2012 based on the 2011 national average wage index of $42,979.61,
announced in the Federal Register on October 30, 2012 (77 FR 65754),
along with the percentage increase in average wages from 2011 to 2012,
as measured by annual wage data. We tabulate the annual wage data,
including contributions to deferred compensation plans, as required by
section 209(k) of the Act. The average amounts of wages calculated
directly from these data were $41,211.36 and $42,498.21 for 2011 and
2012, respectively. To determine the national average wage index for
2012 at a level that is consistent with the national average wage
indexing series for 1951 through 1977 (published December 29, 1978, at
43 FR 61016), we multiply the 2011 national average wage index of
$42,979.61 by the percentage increase in average wages from 2011 to
2012 (based on SSA-tabulated wage data) as follows, with the result
rounded to the nearest cent.
Amount
Multiplying the national average wage index for 2011 ($42,979.61)
by the ratio of the average wage for 2012 ($42,498.21) to that for 2011
($41,211.36) produces the 2012 index, $44,321.67. The national average
wage index for calendar year 2012 is about 3.12 percent higher than the
2011 index.
Program Amounts That Change Based on the National Average Wage Index
The following amounts change with annual changes in the national
average wage index: (1) The OASDI contribution and benefit base; (2)
the exempt amounts under the retirement earnings test; (3) the dollar
amounts, or bend points, in the PIA formula; (4) the bend points in the
maximum family benefit formula; (5) the amount of earnings required for
a worker to be credited with a quarter of coverage; (6) the old-law
contribution and benefit base (as determined under section 230 of the
Act as in effect before the 1977 amendments); (7) the SGA amount
applicable to statutorily blind individuals; and (8) the coverage
threshold for election officials and election workers. Also, section
3121(x) of the Internal Revenue Code requires that the domestic
employee coverage threshold be based on changes in the national average
wage index.
In addition to the amounts required by statute, two amounts
increase under regulatory requirements--the SGA amount applicable to
non-blind disabled persons, and the monthly earnings threshold that
establishes a month as part of a trial work period for disabled
beneficiaries.
OASDI Contribution and Benefit Base
General
The OASDI contribution and benefit base is $117,000 for
remuneration paid in 2014 and self-employment income earned in taxable
years beginning in 2014. The OASDI contribution and benefit base serves
as the maximum annual amount of earnings on which OASDI taxes are paid.
It is also the maximum annual amount of earnings used in determining a
person's OASDI benefits.
Computation
Section 230(b) of the Act provides the formula used to determine
the OASDI contribution and benefit base. Under the formula, the base
for 2014 is the larger of: (1) The 1994 base of $60,600 multiplied by
the ratio of the national average wage index for 2012 to that for 1992;
or (2) the current base ($113,700). If the resulting amount is not a
multiple of $300, it is rounded to the nearest multiple of $300.
Amount
Multiplying the 1994 OASDI contribution and benefit base amount
($60,600) by the ratio of the national average wage index for 2012
($44,321.67 as determined above) to that for 1992 ($22,935.42) produces
the amount of $117,106.78. We round this amount to $117,000. Because
$117,000 exceeds the current base amount of $113,700, the OASDI
contribution and benefit base is $117,000 for 2014.
Retirement Earnings Test Exempt Amounts
General
We withhold Social Security benefits when a beneficiary under the
NRA has earnings in excess of the applicable retirement earnings test
exempt amount. NRA is the age of initial benefit entitlement for which
the benefit, before rounding, is equal to the worker's PIA. The NRA is
age 66 for those born in 1943-54, and it gradually increases reaching
age 67 for those born in 1960 or later. A higher exempt amount applies
in the year in which a person attains his or her NRA, but only with
respect to earnings in months prior to such attainment, and a lower
exempt amount applies at all other ages below NRA. Section 203(f)(8)(B)
of the Act, as amended by section 102 of Public Law 104-121, provides
formulas for determining the monthly exempt amounts. The corresponding
annual exempt amounts are exactly 12 times the monthly amounts.
For beneficiaries attaining NRA in the year, we withhold $1 in
benefits for every $3 of earnings in excess of the annual exempt amount
for months prior to such attainment. For all other beneficiaries under
NRA, we withhold $1 in benefits for every $2 of earnings in excess of
the annual exempt amount.
Computation
Under the formula applicable to beneficiaries attaining NRA after
2014, the lower monthly exempt amount for 2014 is the larger of: (1)
The 1994 monthly exempt amount multiplied by the ratio of the national
average wage index for 2012 to that for 1992; or (2) the 2013 monthly
exempt amount ($1,260). If the resulting amount is not a multiple
[[Page 66416]]
of $10, it is rounded to the nearest multiple of $10.
Under the formula applicable to beneficiaries attaining NRA in
2014, the higher monthly exempt amount for 2014 is the larger of: (1)
The 2002 monthly exempt amount multiplied by the ratio of the national
average wage index for 2012 to that for 2000; or (2) the 2013 monthly
exempt amount ($3,340). If the resulting amount is not a multiple of
$10, it is rounded to the nearest multiple of $10.
Lower Exempt Amount
Multiplying the 1994 retirement earnings test monthly exempt amount
of $670 by the ratio of the national average wage index for 2012
($44,321.67) to that for 1992 ($22,935.42) produces the amount of
$1,294.74. We round this to $1,290. Because $1,290 exceeds the
corresponding current exempt amount of $1,260, the lower retirement
earnings test monthly exempt amount is $1,290 for 2014. The
corresponding lower annual exempt amount is $15,480 under the
retirement earnings test.
Higher Exempt Amount
Multiplying the 2002 retirement earnings test monthly exempt amount
of $2,500 by the ratio of the national average wage index for 2012
($44,321.67) to that for 2000 ($32,154.82) produces the amount of
$3,445.96. We round this to $3,450. Because $3,450 exceeds the
corresponding current exempt amount of $3,340, the higher retirement
earnings test monthly exempt amount is $3,450 for 2014. The
corresponding higher annual exempt amount is $41,400 under the
retirement earnings test.
Primary Insurance Amount Benefit Formula
General
The Social Security Amendments of 1977 provided a method for
computing benefits that generally applies when a worker first becomes
eligible for benefits after 1978. This method uses the worker's average
indexed monthly earnings (AIME) to compute the PIA. We adjust the
computation formula each year to reflect changes in general wage
levels, as measured by the national average wage index.
We also adjust, or index, a worker's earnings to reflect the change
in the general wage levels that occurred during the worker's years of
employment. Such indexing ensures that a worker's future benefit level
will reflect the general rise in the standard of living that will occur
during his or her working lifetime. To compute the AIME, we first
determine the required number of years of earnings. We then select the
number of years with the highest indexed earnings, add the indexed
earnings for those years, and divide the total amount by the total
number of months in those years. We then round the resulting average
amount down to the next lower dollar amount. The result is the AIME.
Computing the PIA
The PIA is the sum of three separate percentages of portions of the
AIME. In 1979 (the first year the formula was in effect), these
portions were the first $180, the amount between $180 and $1,085, and
the amount over $1,085. We call the dollar amounts in the formula
governing the portions of the AIME the ``bend points'' of the formula.
Therefore, the bend points for 1979 were $180 and $1,085.
To obtain the bend points for 2014, we multiply each of the 1979
bend-point amounts by the ratio of the national average wage index for
2012 to that average for 1977. We then round these results to the
nearest dollar. Multiplying the 1979 amounts of $180 and $1,085 by the
ratio of the national average wage index for 2012 ($44,321.67) to that
for 1977 ($9,779.44) produces the amounts of $815.78 and $4,917.36. We
round these to $816 and $4,917. Accordingly, the portions of the AIME
to be used in 2014 are the first $816, the amount between $816 and
$4,917, and the amount over $4,917.
Consequently, for individuals who first become eligible for old-age
insurance benefits or disability insurance benefits in 2014, or who die
in 2014 before becoming eligible for benefits, their PIA will be the
sum of:
(a) 90 percent of the first $816 of their AIME, plus
(b) 32 percent of their AIME over $816 and through $4,917, plus
(c) 15 percent of their AIME over $4,917.
We round this amount to the next lower multiple of $0.10 if it is
not already a multiple of $0.10. This formula and the rounding
adjustment described above are contained in section 215(a) of the Act.
Maximum Benefits Payable to a Family
General
The 1977 amendments continued the long-established policy of
limiting the total monthly benefits that a worker's family may receive
based on his or her PIA. Those amendments also continued the then-
existing relationship between maximum family benefits and PIAs but
changed the method of computing the maximum amount of benefits that may
be paid to a worker's family. The Social Security Disability Amendments
of 1980 (Pub. L. 96-265) established a formula for computing the
maximum benefits payable to the family of a disabled worker. This
formula applies to the family benefits of workers who first become
entitled to disability insurance benefits after June 30, 1980, and who
first become eligible for these benefits after 1978. For disabled
workers initially entitled to disability benefits before July 1980 or
whose disability began before 1979, we compute the family maximum
payable the same as the old-age and survivor family maximum.
Computing the Old-Age and Survivor Family Maximum
The formula used to compute the family maximum is similar to that
used to compute the PIA. It involves computing the sum of four separate
percentages of portions of the worker's PIA. In 1979, these portions
were the first $230, the amount between $230 and $332, the amount
between $332 and $433, and the amount over $433. We refer to such
dollar amounts in the formula as the ``bend points'' of the family-
maximum formula.
To obtain the bend points for 2014, we multiply each of the 1979
bend-point amounts by the ratio of the national average wage index for
2012 to that average for 1977. Then we round this amount to the nearest
dollar. Multiplying the amounts of $230, $332, and $433 by the ratio of
the national average wage index for 2012 ($44,321.67) to that for 1977
($9,779.44) produces the amounts of $1,042.39, $1,504.67, and
$1,962.41. We round these amounts to $1,042, $1,505, and $1,962.
Accordingly, the portions of the PIAs to be used in 2014 are the first
$1,042, the amount between $1,042 and $1,505, the amount between $1,505
and $1,962, and the amount over $1,962.
Consequently, for the family of a worker who becomes age 62 or dies
in 2014 before age 62, we will compute the total amount of benefits
payable to them so that it does not exceed:
(a) 150 percent of the first $1,042 of the worker's PIA, plus
(b) 272 percent of the worker's PIA over $1,042 through $1,505,
plus
(c) 134 percent of the worker's PIA over $1,505 through $1,962,
plus
(d) 175 percent of the worker's PIA over $1,962.
We then round this amount to the next lower multiple of $0.10 if it
is not already a multiple of $0.10. This formula and the rounding
adjustment described above are contained in section 203(a) of the Act.
[[Page 66417]]
Quarter of Coverage Amount
General
The amount of earnings required for a quarter of coverage in 2014
is $1,200. A quarter of coverage is the basic unit for determining
whether a worker is insured under the Social Security program. For
years before 1978, we generally credited an individual with a quarter
of coverage for each quarter in which wages of $50 or more were paid,
or with 4 quarters of coverage for every taxable year in which $400 or
more of self-employment income was earned. Beginning in 1978, employers
generally report wages on an annual basis instead of a quarterly basis.
With the change to annual reporting, section 352(b) of the Social
Security Amendments of 1977 amended section 213(d) of the Act to
provide that a quarter of coverage would be credited for each $250 of
an individual's total wages and self-employment income for calendar
year 1978, up to a maximum of 4 quarters of coverage for the year.
Computation
Under the prescribed formula, the quarter of coverage amount for
2014 is the larger of (1) the 1978 amount of $250 multiplied by the
ratio of the national average wage index for 2012 to that for 1976; or
(2) the current amount of $1,160. Section 213(d) provides that if the
resulting amount is not a multiple of $10, it is rounded to the nearest
multiple of $10.
Quarter of Coverage Amount
Multiplying the 1978 quarter of coverage amount ($250) by the ratio
of the national average wage index for 2012 ($44,321.67) to that for
1976 ($9,226.48) produces the amount of $1,200.94. We then round this
amount to $1,200. Because $1,200 exceeds the current amount of $1,160,
the quarter of coverage amount is $1,200 for 2014.
Old-Law Contribution and Benefit Base
General
The old-law contribution and benefit base for 2014 is $87,000. This
base would have been effective under the Act without the enactment of
the 1977 amendments.
The old-law contribution and benefit base is used by:
(a) the Railroad Retirement program to determine certain tax
liabilities and tier II benefits payable under that program to
supplement the tier I payments that correspond to basic Social Security
benefits,
(b) the Pension Benefit Guaranty Corporation to determine the
maximum amount of pension guaranteed under the Employee Retirement
Income Security Act (section 230(d) of the Act),
(c) Social Security to determine a year of coverage in computing
the special minimum benefit, as described earlier, and
(d) Social Security to determine a year of coverage (acquired
whenever earnings equal or exceed 25 percent of the old-law base for
this purpose only) in computing benefits for persons who are also
eligible to receive pensions based on employment not covered under
section 210 of the Act.
Computation
The old-law contribution and benefit base is the larger of: (1) The
1994 old-law base ($45,000) multiplied by the ratio of the national
average wage index for 2012 to that for 1992; or (2) the current old-
law base ($84,300). If the resulting amount is not a multiple of $300,
it is rounded to the nearest multiple of $300.
Amount
Multiplying the 1994 old-law contribution and benefit base amount
($45,000) by the ratio of the national average wage index for 2012
($44,321.67) to that for 1992 ($22,935.42) produces the amount of
$86,960.48. We round this amount to $87,000. Because $87,000 exceeds
the current amount of $84,300, the old-law contribution and benefit
base is $87,000 for 2014.
Substantial Gainful Activity Amounts
General
A finding of disability under titles II and XVI of the Act requires
that a person, except for a title XVI disabled child, be unable to
engage in SGA. A person who is earning more than a certain monthly
amount is ordinarily considered to be engaging in SGA. The amount of
monthly earnings considered as SGA depends on the nature of a person's
disability. Section 223(d)(4)(A) of the Act specifies a higher SGA
amount for statutorily blind individuals under title II while Federal
regulations (20 CFR 404.1574 and 416.974) specify a lower SGA amount
for non-blind individuals.
Computation
The monthly SGA amount for statutorily blind individuals under
title II for 2014 is the larger of: (1) Such amount for 1994 multiplied
by the ratio of the national average wage index for 2012 to that for
1992; or (2) such amount for 2013. The monthly SGA amount for non-blind
disabled individuals for 2014 is the larger of: (1) Such amount for
2000 multiplied by the ratio of the national average wage index for
2012 to that for 1998; or (2) such amount for 2013. In either case, if
the resulting amount is not a multiple of $10, it is rounded to the
nearest multiple of $10.
SGA Amount for Statutorily Blind Individuals
Multiplying the 1994 monthly SGA amount for statutorily blind
individuals ($930) by the ratio of the national average wage index for
2012 ($44,321.67) to that for 1992 ($22,935.42) produces the amount of
$1,797.18. We then round this amount to $1,800. Because $1,800 exceeds
the current amount of $1,740, the monthly SGA amount for statutorily
blind individuals is $1,800 for 2014.
SGA Amount for Non-Blind Disabled Individuals
Multiplying the 2000 monthly SGA amount for non-blind individuals
($700) by the ratio of the national average wage index for 2012
($44,321.67) to that for 1998 ($28,861.44) produces the amount of
$1,074.97. We then round this amount to $1,070. Because $1,070 exceeds
the current amount of $1,040, the monthly SGA amount for non-blind
disabled individuals is $1,070 for 2014.
Trial Work Period Earnings Threshold
General
During a trial work period of 9 months in a rolling 60-month
period, a beneficiary receiving Social Security disability benefits may
test his or her ability to work and still receive monthly benefit
payments. To be considered a trial work period month, earnings must be
over a certain level. In 2014, any month in which earnings exceed $770
is considered a month of services for an individual's trial work
period.
Computation
The method used to determine the new amount is set forth in our
regulations at 20 CFR 404.1592(b). Monthly earnings in 2014, used to
determine whether a month is part of a trial work period, is such
amount for 2001 ($530) multiplied by the ratio of the national average
wage index for 2012 to that for 1999 or, if larger, such amount for
2013. If the amount so calculated is not a multiple of $10, we round it
to the nearest multiple of $10.
Amount
Multiplying the 2001 monthly earnings threshold ($530) by the ratio
of the national average wage index for 2012 ($44,321.67) to that for
1999 ($30,469.84) produces the amount of $770.94. We then round this
amount to
[[Page 66418]]
$770. Because $770 exceeds the current amount of $750, the monthly
earnings threshold is $770 for 2014.
Domestic Employee Coverage Threshold
General
The minimum amount a domestic worker must earn so that such
earnings are covered under Social Security or Medicare is the domestic
employee coverage threshold. For 2014, this threshold is $1,900.
Section 3121(x) of the Internal Revenue Code provides the formula for
increasing the threshold.
Computation
Under the formula, the domestic employee coverage threshold amount
for 2014 is equal to the 1995 amount of $1,000 multiplied by the ratio
of the national average wage index for 2012 to that for 1993. If the
resulting amount is not a multiple of $100, it is rounded to the next
lower multiple of $100.
Domestic Employee Coverage Threshold Amount
Multiplying the 1995 domestic employee coverage threshold amount
($1,000) by the ratio of the national average wage index for 2012
($44,321.67) to that for 1993 ($23,132.67) produces the amount of
$1,915.98. We then round this amount to $1,900. Accordingly, the
domestic employee coverage threshold amount is $1,900 for 2014.
Election Official and Election Worker Coverage Threshold
General
The minimum amount an election official and election worker must
earn so that such earnings are covered under Social Security or
Medicare is the election official and election worker coverage
threshold. For 2014, this threshold is $1,600. Section 218(c)(8)(B) of
the Act provides the formula for increasing the threshold.
Computation
Under the formula, the election official and election worker
coverage threshold amount for 2014 is equal to the 1999 amount of
$1,000 multiplied by the ratio of the national average wage index for
2012 to that for 1997. If the amount so determined is not a multiple of
$100, it is rounded to the nearest multiple of $100.
Election Worker Coverage Threshold Amount
Multiplying the 1999 election worker coverage threshold amount
($1,000) by the ratio of the national average wage index for 2012
($44,321.67) to that for 1997 ($27,426.00) produces the amount of
$1,616.05. We then round this amount to $1,600. Accordingly, the
election worker coverage threshold amount is $1,600 for 2014.
(Catalog of Federal Domestic Assistance: Program Nos. 96.001 Social
Security-Disability Insurance; 96.002 Social Security-Retirement
Insurance; 96.004 Social Security-Survivors Insurance; 96.006
Supplemental Security Income)
Dated: October 31, 2013.
Carolyn W. Colvin,
Acting Commissioner of Social Security.
[FR Doc. 2013-26569 Filed 11-1-13; 4:15 pm]
BILLING CODE P
