Office of the Commissioner; Cost-of-Living Increase and Other Determinations for 2007, 62636-62642 [E6-17939]
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Federal Register / Vol. 71, No. 207 / Thursday, October 26, 2006 / Notices
rule change is consistent with Section
6(b)(5) of the Act,15 which requires that
an exchange have rules designed, among
Electronic Comments
other things, to promote just and
• Use the Commission’s Internet
equitable principles of trade, to remove
comment form (https://www.sec.gov/
impediments to and perfect the
rules/sro.shtml); or
mechanism of a free and open market
• Send an e-mail to ruleand a national market system, and in
comments@sec.gov. Please include File
general to protect investors and the
Number SR–NYSEArca–2006–74 on the public interest.
subject line.
The Commission finds good cause for
approving this proposed rule change
Paper Comments
before the thirtieth day after the
• Send paper comments in triplicate
publication of notice thereof in the
to Nancy M. Morris, Secretary,
Federal Register. As noted above, the
Securities and Exchange Commission,
Commission previously found that the
Station Place, 100 F Street, NE.,
trading of these ETF Shares on the
Washington, DC 20549–1090.
Exchange is consistent with the Act.16
All submissions should refer to File
Substituting the Emerging Markets
Number SR–NYSEArca–2006–74. This
Index for the Select Index does not
file number should be included on the
change the Commission’s analysis, and
subject line if e-mail is used. To help the
the Commission believes accelerating
Commission process and review your
approval of this proposed rule change is
comments more efficiently, please use
appropriate.
only one method. The Commission will
post all comments on the Commission’s V. Conclusion
Internet Web site (https://www.sec.gov/
It is therefore ordered, pursuant to
rules/sro.shtml). Copies of the
Section 19(b)(2) of the Act, that the
submission, all subsequent
proposed rule change (SR–NYSEArca–
amendments, all written statements
2006–74), is hereby approved on an
with respect to the proposed rule
accelerated basis.17
change that are filed with the
For the Commission, by the Division of
Commission, and all written
Market Regulation, pursuant to delegated
communications relating to the
authority.18
proposed rule change between the
Nancy M. Morris,
Commission and any person, other than
Secretary.
those that may be withheld from the
[FR Doc. E6–17989 Filed 10–25–06; 8:45 am]
public in accordance with the
provisions of 5 U.S.C. 552, will be
BILLING CODE 8011–01–P
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be SOCIAL SECURITY ADMINISTRATION
available for inspection and copying at
[Document No. 2006 SSA–0088]
the principal offices of the Exchange.
All comments received will be posted
Office of the Commissioner; Cost-ofwithout change; the Commission does
Living Increase and Other
not edit personal identifying
Determinations for 2007
information from submissions. You
should submit only information that
AGENCY: Social Security Administration.
you wish to make available publicly. All
ACTION: Notice.
submissions should refer to File
Number SR–NYSEArca–2006–74 and
SUMMARY: The Commissioner has
should be submitted on or before
determined—
November 16, 2006.
(1) A 3.3 percent cost-of-living
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Comments may be submitted by any of
the following methods:
IV. Commission’s Findings and Order
Granting Accelerated Approval of
Proposed Rule Change
The Commission finds that the
proposed rule change is consistent with
the requirements of the Act and the
rules and regulations thereunder
applicable to a national securities
exchange.14 In particular, the
Commission finds that the proposed
14 In approving this rule change, the Commission
notes that it has considered the proposed rule’s
impact on efficiency, competition, and capital
formation. See 15 U.S.C. 78c(f).
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15:21 Oct 25, 2006
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increase in Social Security benefits
under title II of the Social Security Act
(the Act), effective for December 2006;
(2) An increase in the Federal
Supplemental Security Income (SSI)
monthly benefit amounts under title
XVI of the Act for 2007 to $623 for an
eligible individual, $934 for an eligible
individual with an eligible spouse, and
$312 for an essential person;
15 15
U.S.C. 78f(b)(5).
Approval Order, supra note 4.
17 15 U.S.C. 78s(b)(2).
18 17 CFR 200.30–3(a)(12).
16 See
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(3) The student earned income
exclusion to be $1,510 per month in
2007 but not more than $6,100 in all of
2007;
(4) The dollar fee limit for services
performed as a representative payee to
be $34 per month ($66 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 2007;
(5) The dollar limit on the
administrative-cost assessment charged
to attorneys representing claimants to be
$77 in 2007;
(6) The national average wage index
for 2005 to be $36,952.94;
(7) The Old-Age, Survivors, and
Disability Insurance (OASDI)
contribution and benefit base to be
$97,500 for remuneration paid in 2007
and self-employment income earned in
taxable years beginning in 2007;
(8) The monthly exempt amounts
under the Social Security retirement
earnings test for taxable years ending in
calendar year 2007 to be $1,080 and
$2,870;
(9) The dollar amounts (‘‘bend
points’’) used in the primary insurance
amount benefit formula for workers who
become eligible for benefits, or who die
before becoming eligible, in 2007 to be
$680 and $4,100;
(10) The dollar amounts (‘‘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 2007 to be $869, $1,255, and
$1,636;
(11) The amount of taxable earnings a
person must have to be credited with a
quarter of coverage in 2007 to be $1,000;
(12) The ‘‘old-law’’ contribution and
benefit base to be $72,600 for 2007;
(13) The monthly amount deemed to
constitute substantial gainful activity for
statutorily blind individuals in 2007 to
be $1,500, and the corresponding
amount for non-blind disabled persons
to be $900;
(14) The earnings threshold
establishing a month as a part of a trial
work period to be $640 for 2007; and
(15) Coverage thresholds for 2007 to
be $1,500 for domestic workers and
$1,300 for election workers.
FOR FURTHER INFORMATION CONTACT:
Jeffrey L. Kunkel, Office of the Chief
Actuary, Social Security
Administration, 6401 Security
Boulevard, Baltimore, MD 21235, (410)
965–3013. Information relating to this
announcement is available on our
Internet site at www.socialsecurity.gov/
OACT/COLA/. For
information on eligibility or claiming
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Federal Register / Vol. 71, No. 207 / Thursday, October 26, 2006 / Notices
benefits, call 1–800–772–1213 or TTY
1–800–325–0778, or visit our Internet
site, Social Security Online, at
www.socialsecurity.gov.
SUPPLEMENTARY INFORMATION: In
accordance with the Act, the
Commissioner must publish within 45
days after the close of the third calendar
quarter of 2006 the benefit increase
percentage and the revised table of
‘‘special minimum’’ benefits (section
215(i)(2)(D)). Also, the Commissioner
must publish on or before November 1
the national average wage index for
2005 (section 215(a)(1)(D)), the OASDI
fund ratio for 2006 (section
215(i)(2)(C)(ii)), the OASDI contribution
and benefit base for 2007 (section
230(a)), the amount of earnings required
to be credited with a quarter of coverage
in 2007 (section 213(d)(2)), the monthly
exempt amounts under the Social
Security retirement earnings test for
2007 (section 203(f)(8)(A)), the formula
for computing a primary insurance
amount for workers who first become
eligible for benefits or die in 2007
(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 2007 (section
203(a)(2)(C)).
Cost-of-Living Increases
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General
The next cost-of-living increase, or
automatic benefit increase, is 3.3
percent for benefits under titles II and
XVI of the Act. Under title II, OASDI
benefits will increase by 3.3 percent for
individuals eligible for December 2006
benefits, payable in January 2007. This
increase is based on the authority
contained in section 215(i) of the Act
(42 U.S.C. 415(i)).
Under title XVI, Federal SSI payment
levels will also increase by 3.3 percent
effective for payments made for the
month of January 2007 but paid on
December 29, 2006. This is based on the
authority contained in section 1617 of
the Act (42 U.S.C. 1382f).
Automatic Benefit Increase
Computation
Under section 215(i) of the Act, the
third calendar quarter of 2006 is a costof-living computation quarter for all the
purposes of the Act. The Commissioner
is, therefore, required to increase
benefits, effective for December 2006,
for individuals entitled under section
227 or 228 of the Act, to increase
primary insurance amounts of all other
individuals entitled under title II of the
Act, and to increase maximum benefits
payable to a family. For December 2006,
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the benefit increase is the percentage
increase in the Consumer Price Index
for Urban Wage Earners and Clerical
Workers from the third quarter of 2005
to the third quarter of 2006.
Section 215(i)(1) of the Act provides
that the Consumer Price Index for a
cost-of-living computation quarter shall
be the arithmetic mean of this index for
the 3 months in that quarter. We round
the arithmetic mean, if necessary, to the
nearest 0.1. The Department of Labor’s
Consumer Price Index for Urban Wage
Earners and Clerical Workers for each
month in the quarter ending September
30, 2005, is: for July 2005, 191.0; for
August 2005, 192.1; and for September
2005, 195.0. The arithmetic mean for
this calendar quarter is 192.7. The
corresponding Consumer Price Index for
each month in the quarter ending
September 30, 2006, is: for July 2006,
199.2; for August 2006, 199.6; and for
September 2006, 198.4. The arithmetic
mean for this calendar quarter is 199.1.
Thus, because the Consumer Price Index
for the calendar quarter ending
September 30, 2006, exceeds that for the
calendar quarter ending September 30,
2005 by 3.3 percent (rounded to the
nearest 0.1), a cost-of-living benefit
increase of 3.3 percent is effective for
benefits under title II of the Act
beginning December 2006.
Section 215(i) also specifies that an
automatic 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 Old-Age and
Survivors Insurance and Disability
Insurance Trust Funds at the beginning
of that year to the combined
expenditures of these funds during that
year. (The expenditures in the ratio’s
denominator exclude transfer payments
between the two trust funds, and reduce
any transfers to the Railroad Retirement
Account by any transfers from that
account into either trust fund.) For
2006, the OASDI fund ratio is assets of
$1,858,660 million divided by estimated
expenditures of $560,000 million, or
331.9 percent. Because the 331.9percent OASDI fund ratio exceeds 20.0
percent, the automatic benefit increase
for December 2006 is not limited.
Title II Benefit Amounts
In accordance with section 215(i) of
the Act, in the case of 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 2007, benefits will
increase by 3.3 percent beginning with
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benefits for December 2006 which are
payable in January 2007. In the case of
first eligibility after 2006, the 3.3
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 the Commissioner
determines an automatic increase in
Social Security benefits, the
Commissioner will publish in the
Federal Register a revision of the range
of the primary insurance amounts 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 primary insurance
amounts and corresponding maximum
family benefit amounts after the 3.3
percent automatic benefit increase.
SPECIAL MINIMUM PRIMARY INSURANCE AMOUNTS AND MAXIMUM FAMILY BENEFITS PAYABLE FOR DECEMBER 2006
Number of years
of coverage
11
12
13
14
15
16
17
18
19
20
21
......................
......................
......................
......................
......................
......................
......................
......................
......................
......................
......................
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Primary
insurance
amount
$34.20
69.50
105.00
140.10
175.10
210.60
246.00
281.30
316.50
351.90
387.30
Maximum
family
benefit
$52.00
105.10
158.10
210.80
263.60
316.90
370.10
422.90
475.90
528.60
582.00
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Federal Register / Vol. 71, No. 207 / Thursday, October 26, 2006 / Notices
SPECIAL MINIMUM PRIMARY INSURANCE AMOUNTS AND MAXIMUM FAMILY BENEFITS PAYABLE FOR DECEMBER 2006—Continued
Number of years
of coverage
22
23
24
25
26
27
28
29
30
......................
......................
......................
......................
......................
......................
......................
......................
......................
Primary
insurance
amount
422.30
458.20
493.40
528.60
564.50
599.30
634.70
669.90
705.20
Maximum
family
benefit
634.80
688.50
741.10
793.50
847.50
900.20
953.00
1,006.30
1,058.70
Title XVI Benefit Amounts
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In accordance with section 1617 of
the Act, maximum SSI Federal benefit
amounts for the aged, blind, and
disabled will increase by 3.3 percent
effective January 2007. For 2006, we
derived the monthly benefit amounts for
an eligible individual, an eligible
individual with an eligible spouse, and
for an essential person—$603, $904, and
$302, respectively—from corresponding
yearly unrounded Federal SSI benefit
amounts of $7,240.56, $10,859.62, and
$3,628.58. For 2007, these yearly
unrounded amounts increase by 3.3
percent to $7,479.50, $11,217.99, and
$3,748.32, 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 2007, are $7,476, $11,208,
and $3,744. Dividing the yearly amounts
by 12 gives the corresponding monthly
amounts for 2007—$623, $934, and
$312, respectively. In the case of an
eligible individual with an eligible
spouse, we equally divide the amount
payable between the two spouses.
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.’’ Thus the
monthly benefit for 2007 under this
provision is 75 percent of $623, or
$467.25.
Student Earned Income Exclusion
A blind or disabled child, who is a
student regularly attending school,
college, or university, or a course of
vocational or technical training, can
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Jkt 211001
have limited earnings that are not
counted against his or her SSI benefits.
The maximum amount of such income
that may be excluded in 2006 is $1,460
per month but not more than $5,910 in
all of 2006. 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 2007, we
increase the corresponding unrounded
amount for 2006 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
2006 is $1,464.95. We increase this
amount by 3.3 percent to $1,513.29,
which we then round to $1,510.
Similarly, we increase the unrounded
yearly amount for 2006, $5,905.21, by
3.3 percent to $6,100.08 and round this
to $6,100. Thus the maximum amount
of the income exclusion applicable to a
student in 2007 is $1,510 per month but
not more than $6,100 in all of 2007.
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 an
individual a monthly fee for expenses
incurred in providing services
performed as such individual’s
representative payee. Currently the fee
is limited to the lesser of: (1) 10 percent
of the monthly benefit involved; or (2)
$33 per month ($64 per month in any
case in which the individual is entitled
to disability benefits and the
Commissioner has determined that
payment to the representative payee
would serve the interest of the
individual because the individual has
an alcoholism or drug addiction
condition and is incapable of managing
such benefits). The dollar fee limits are
subject to increase by the automatic
cost-of-living increase, with the
resulting amounts rounded to the
nearest whole dollar amount. Thus we
increase the current amounts by 3.3
percent to $34 and $66 for 2007.
Attorney Assessment Fee
Under sections 206(d) and 1631(d) of
the Act, whenever a fee for services is
required to be paid to an attorney who
has represented a claimant, the
Commissioner must impose on the
attorney an assessment to cover
administrative costs. Such assessment
shall be no more than 6.3 percent of the
attorney’s fee or, if lower, a dollar
amount that is subject to increase by the
automatic cost-of-living increase. We
derive the dollar limit for December
2006 by increasing the unrounded limit
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for December 2005, $75.00, by 3.3
percent, which gives $77.47. We then
round $77.47 to the next lower multiple
of $1. The dollar limit effective for
December 2006 is thus $77.
National Average Wage Index for 2005
General
Under various provisions of the Act,
several amounts increase automatically
with annual increases in the national
average wage index. The amounts are:
(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
primary insurance amount and
maximum family benefit formulas; (4)
the amount of earnings required for a
worker to be credited with a quarter of
coverage; (5) the ‘‘old-law’’ contribution
and benefit base (as determined under
section 230 of the Act as in effect before
the 1977 amendments); (6) the
substantial gainful activity amount
applicable to statutorily blind
individuals; and (7) 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
automatically under regulatory
requirements. The amounts are (1) the
substantial gainful activity amount
applicable to non-blind disabled
persons, and (2) the monthly earnings
threshold that establishes a month as
part of a trial work period for disabled
beneficiaries.
Computation
The determination of the national
average wage index for calendar year
2005 is based on the 2004 national
average wage index of $35,648.55
announced in the Federal Register on
October 25, 2005 (70 FR 61677), along
with the percentage increase in average
wages from 2004 to 2005 measured by
annual wage data tabulated by the
Social Security Administration (SSA).
The wage data tabulated by SSA include
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
$34,197.63 and $35,448.93 for 2004 and
2005, respectively. To determine the
national average wage index for 2005 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 2004 national average wage
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index of $35,648.55 by the percentage
increase in average wages from 2004 to
2005 (based on SSA-tabulated wage
data) as follows, with the result rounded
to the nearest cent.
Amount
Multiplying the national average wage
index for 2004 ($35,648.55) by the ratio
of the average wage for 2005
($35,448.93) to that for 2004
($34,197.63) produces the 2005 index,
$36,952.94. The national average wage
index for calendar year 2005 is about
3.66 percent greater than the 2004
index.
OASDI Contribution and Benefit Base
General
The OASDI contribution and benefit
base is $97,500 for remuneration paid in
2007 and self-employment income
earned in taxable years beginning in
2007.
The OASDI contribution and benefit
base serves two purposes:
(a) It is the maximum annual amount of
earnings on which OASDI taxes are paid. The
OASDI tax rate for remuneration paid in 2007
is 6.2 percent for employees and employers,
each. The OASDI tax rate for selfemployment income earned in taxable years
beginning in 2007 is 12.4 percent. (The
Hospital Insurance tax is due on
remuneration, without limitation, paid in
2007, at the rate of 1.45 percent for
employees and employers, each, and on selfemployment income earned in taxable years
beginning in 2007, at the rate of 2.9 percent.)
(b) It is 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 2007 shall be the
larger of: (1) The 1994 base of $60,600
multiplied by the ratio of the national
average wage index for 2005 to that for
1992; or (2) the current base ($94,200).
If the resulting amount is not a multiple
of $300, it shall be rounded to the
nearest multiple of $300.
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Amount
Multiplying the 1994 OASDI
contribution and benefit base amount
($60,600) by the ratio of the national
average wage index for 2005 ($36,952.94
as determined above) to that for 1992
($22,935.42) produces the amount of
$97,637.11. We round this amount to
$97,500. Because $97,500 exceeds the
current base amount of $94,200, the
OASDI contribution and benefit base is
$97,500 for 2007.
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Retirement Earnings Test Exempt
Amounts
General
We withhold Social Security benefits
when a beneficiary under the normal
retirement age (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 primary insurance
amount. The NRA is age 65 for those
born before 1938, and it gradually
increases to age 67.) A higher exempt
amount applies in the year in which a
person attains his/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 who are under NRA and
who will not attain NRA in 2007, the
lower monthly exempt amount for 2007
shall be the larger of: (1) The 1994
monthly exempt amount multiplied by
the ratio of the national average wage
index for 2005 to that for 1992; or (2) the
2006 monthly exempt amount ($1,040).
If the resulting amount is not a multiple
of $10, it shall be rounded to the nearest
multiple of $10.
Under the formula applicable to
beneficiaries attaining NRA in 2007, the
higher monthly exempt amount for 2007
shall be the larger of: (1) The 2002
monthly exempt amount multiplied by
the ratio of the national average wage
index for 2005 to that for 2000; or (2) the
2006 monthly exempt amount ($2,770).
If the resulting amount is not a multiple
of $10, it shall be 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 2005 ($36,952.94) to that
for 1992 ($22,935.42) produces the
amount of $1,079.49. We round this to
$1,080. Because $1,080 is larger than the
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62639
corresponding current exempt amount
of $1,040, the lower retirement earnings
test monthly exempt amount is $1,080
for 2007. The corresponding lower
annual exempt amount is $12,960 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 2005
($36,952.94) to that for 2000
($32,154.82) produces the amount of
$2,873.05. We round this to $2,870.
Because $2,870 is larger than the
corresponding current exempt amount
of $2,770, the higher retirement earnings
test monthly exempt amount is $2,870
for 2007. The corresponding higher
annual exempt amount is $34,440 under
the retirement earnings test.
Computing Benefits After 1978
General
The Social Security Amendments of
1977 provided a method for computing
benefits which generally applies when a
worker first becomes eligible for benefits
after 1978. This method uses the
worker’s ‘‘average indexed monthly
earnings’’ to compute the primary
insurance amount. 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 general
wage levels that occurred during the
worker’s years of employment. Such
indexation 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 average
indexed monthly earnings, we first
determine the required number of years
of earnings. Then we select that number
of years with the highest indexed
earnings, add the indexed earnings, 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 average indexed
monthly earnings.
For example, to compute the average
indexed monthly earnings for a worker
attaining age 62, becoming disabled
before age 62, or dying before attaining
age 62, in 2007, we divide the national
average wage index for 2005,
$36,952.94, by the national average
wage index for each year prior to 2005
in which the worker had earnings. Then
we multiply the actual wages and selfemployment income, as defined in
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section 211(b) of the Act and credited
for each year, by the corresponding ratio
to obtain the worker’s indexed earnings
for each year before 2005. We consider
any earnings in 2005 or later at face
value, without indexing. We then
compute the average indexed monthly
earnings for determining the worker’s
primary insurance amount for 2007.
Computing the Primary Insurance
Amount
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The primary insurance amount is the
sum of three separate percentages of
portions of the average indexed monthly
earnings. 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 average indexed monthly earnings
the ‘‘bend points’’ of the formula. Thus,
the bend points for 1979 were $180 and
$1,085.
To obtain the bend points for 2007,
we multiply each of the 1979 bendpoint amounts by the ratio of the
national average wage index for 2005 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 2005
($36,952.94) to that for 1977 ($9,779.44)
produces the amounts of $680.15 and
$4,099.82. We round these to $680 and
$4,100. Accordingly, the portions of the
average indexed monthly earnings to be
used in 2007 are the first $680, the
amount between $680 and $4,100, and
the amount over $4,100.
Consequently, for individuals who
first become eligible for old-age
insurance benefits or disability
insurance benefits in 2007, or who die
in 2007 before becoming eligible for
benefits, their primary insurance
amount will be the sum of
(a) 90 percent of the first $680 of their
average indexed monthly earnings, plus
(b) 32 percent of their average indexed
monthly earnings over $680 and
through $4,100, plus
(c) 15 percent of their average indexed
monthly earnings over $4,100.
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 (42 U.S.C. 415(a)).
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
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family may receive based on his or her
primary insurance amount. Those
amendments also continued the then
existing relationship between maximum
family benefits and primary insurance
amounts but did change 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 primary insurance
amount. It involves computing the sum
of four separate percentages of portions
of the worker’s primary insurance
amount. 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 2007,
we multiply each of the 1979 bendpoint amounts by the ratio of the
national average wage index for 2005 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 2005
($36,952.94) to that for 1977 ($9,779.44)
produces the amounts of $869.09,
$1,254.51, and $1,636.15. We round
these amounts to $869, $1,255, and
$1,636. Accordingly, the portions of the
primary insurance amounts to be used
in 2007 are the first $869, the amount
between $869 and $1,255, the amount
between $1,255 and $1,636, and the
amount over $1,636.
Consequently, for the family of a
worker who becomes age 62 or dies in
2007 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 $869 of the
worker’s primary insurance amount,
plus
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(b) 272 percent of the worker’s
primary insurance amount over $869
through $1,255, plus
(c) 134 percent of the worker’s
primary insurance amount over $1,255
through $1,636, plus
(d) 175 percent of the worker’s
primary insurance amount over $1,636.
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 (42 U.S.C. 403(a)).
Quarter of Coverage Amount
General
The amount of earnings required for
a quarter of coverage in 2007 is $1,000.
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 2007
shall be the larger of: (1) The 1978
amount of $250 multiplied by the ratio
of the national average wage index for
2005 to that for 1976; or (2) the current
amount of $970. Section 213(d) further
provides that if the resulting amount is
not a multiple of $10, it shall be
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
2005 ($36,952.94) to that for 1976
($9,226.48) produces the amount of
$1,001.27. We then round this amount
to $1,000. Because $1,000 exceeds the
current amount of $970, the quarter of
coverage amount is $1,000 for 2007.
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‘‘Old-Law’’ Contribution and Benefit
Base
General
The ‘‘old-law’’ contribution and
benefit base for 2007 is $72,600. This is
the base that 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 which 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 (as stated in section 230(d) of the
Social Security 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 shall be the larger of: (1)
The 1994 ‘‘old-law’’ base ($45,000)
multiplied by the ratio of the national
average wage index for 2005 to that for
1992; or (2) the current ‘‘old-law’’ base
($69,900). If the resulting amount is not
a multiple of $300, it shall be 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 2005
($36,952.94) to that for 1992
($22,935.42) produces the amount of
$72,502.81. We round this amount to
$72,600. Because $72,600 exceeds the
current amount of $69,900, the ‘‘oldlaw’’ contribution and benefit base is
$72,600 for 2007.
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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 substantial
gainful activity (SGA). A person who is
earning more than a certain monthly
amount (net of impairment-related work
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15:21 Oct 25, 2006
Jkt 211001
expenses) 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.
Both SGA amounts increase in
accordance with increases in the
national average wage index.
Computation
The monthly SGA amount for
statutorily blind individuals under title
II for 2007 shall be the larger of: (1)
Such amount for 1994 multiplied by the
ratio of the national average wage index
for 2005 to that for 1992; or (2) such
amount for 2006. The monthly SGA
amount for non-blind disabled
individuals for 2007 shall be the larger
of: (1) Such amount for 2000 multiplied
by the ratio of the national average wage
index for 2005 to that for 1998; or (2)
such amount for 2006. In either case, if
the resulting amount is not a multiple
of $10, it shall be 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 2005
($36,952.94) to that for 1992
($22,935.42) produces the amount of
$1,498.39. We then round this amount
to $1,500. Because $1,500 is larger than
the current amount of $1,450, the
monthly SGA amount for statutorily
blind individuals is $1,500 for 2007.
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 2005 ($36,952.94) to that for
1998 ($28,861.44) produces the amount
of $896.25. We then round this amount
to $900. Because $900 is larger than the
current amount of $860, the monthly
SGA amount for non-blind disabled
individuals is $900 for 2007.
Trial Work Period Earnings Threshold
General
During a trial work period, a
beneficiary receiving Social Security
disability benefits may test his or her
ability to work and still be considered
disabled. We do not consider services
performed during the trial work period
as showing that the disability has ended
until services have been performed in at
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Fmt 4703
Sfmt 4703
62641
least 9 months (not necessarily
consecutive) in a rolling 60-month
period. In 2006, any month in which
earnings exceed $620 is considered a
month of services for an individual’s
trial work period. In 2007, this monthly
amount increases to $640.
Computation
The method used to determine the
new amount is set forth in our
regulations at 20 CFR 404.1592(b).
Monthly earnings in 2007, 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
2005 to that for 1999, or, if larger, such
amount for 2006. 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
2005 ($36,952.94) to that for 1999
($30,469.84) produces the amount of
$642.77. We then round this amount to
$640. Because $640 is larger than the
current amount of $620, the monthly
earnings threshold is $640 for 2007.
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 2007, this
threshold is $1,500. 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 2007 shall be equal to the 1995
amount of $1,000 multiplied by the ratio
of the national average wage index for
2005 to that for 1993. If the resulting
amount is not a multiple of $100, it
shall be 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 2005
($36,952.94) to that for 1993
($23,132.67) produces the amount of
$1,597.44. We then round this amount
to $1,500. Accordingly, the domestic
employee coverage threshold amount is
$1,500 for 2007.
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Federal Register / Vol. 71, No. 207 / Thursday, October 26, 2006 / Notices
The minimum amount an election
worker must earn so that such earnings
are covered under Social Security or
Medicare is the election worker
coverage threshold. For 2007, this
threshold is $1,300. Section 218(c)(8)(B)
of the Act provides the formula for
increasing the threshold.
Exchange Program. Public and private
non-profit organizations meeting the
provisions described in Internal
Revenue Code section 26 U.S.C.
501(c)(3) will submit proposals to
recruit and select English-speaking high
school students in Iraq and conduct
month-long projects in the United States
for student groups that focus on
leadership development and civic
education.
Computation
I. Funding Opportunity Description
Under the formula, the election
worker coverage threshold amount for
2007 shall be equal to the 1999 amount
of $1,000 multiplied by the ratio of the
national average wage index for 2005 to
that for 1997. If the amount so
determined is not a multiple of $100, it
shall be rounded to the nearest multiple
of $100.
Authority: Overall grant making
authority for this program is contained
in the Mutual Educational and Cultural
Exchange Act of 1961, Public Law 87–
256, as amended, also known as the
Fulbright-Hays Act. The purpose of the
Act is ‘‘to enable the Government of the
United States to increase mutual
understanding between the people of
the United States and the people of
other countries * * *; to strengthen the
ties which unite us with other nations
by demonstrating the educational and
cultural interests, developments, and
achievements of the people of the
United States and other nations * * *
and thus to assist in the development of
friendly, sympathetic, and peaceful
relations between the United States and
the other countries of the world.’’ The
funding authority for the program above
is provided through legislation.
Purpose: The Iraqi Young Leaders
Exchange Program is being introduced
to offer youth from Iraq an opportunity
to learn about the United States, to
develop their leadership skills, and to
develop friendships. The Office of
Citizen Exchanges’ Youth Programs
Division, through the Iraqi Young
Leaders Exchange Program, will sponsor
approximately 200 Iraqi exchange
participants, ages 15–17, in a series of
intensive one-month-long projects in the
summers of 2007 and 2008. Programs
will be designed to provide educational
and recreational opportunities to
experience a democratic and free society
firsthand.
The Office of Citizen Exchanges’
Youth Programs Division will bring 100
young people from Iraq to the United
States through a series of month-long
programs in the summer of 2007 and a
minimum of 100 students in the
summer of 2008. The grant recipient
organizations will recruit, screen, and
select the exchange participants, in
consultation with, but without reliance
on the U.S. Embassy in Baghdad. The
grantee organization will prepare the
students for both the content and the
logistics of the exchange. Students will
travel to the United States in groups of
20 to 30 with adult accompaniment.
Election Worker Coverage Threshold
General
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 2005 ($36,952.94) to that for
1997 ($27,426.00) produces the amount
of $1,347.37. We then round this
amount to $1,300. Accordingly, the
election worker coverage threshold
amount is $1,300 for 2007.
(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)
Dated: October 19, 2006.
Jo Anne B. Barnhart,
Commissioner, Social Security
Administration.
[FR Doc. E6–17939 Filed 10–25–06; 8:45 am]
BILLING CODE 4191–02–P
DEPARTMENT OF STATE
[Public Notice 5593]
ycherry on PROD1PC64 with NOTICES
Bureau of Educational and Cultural
Affairs (ECA) Request for Grant
Proposals: Iraqi Young Leaders
Exchange Program
Announcement Type: New Grant.
Funding Opportunity Number: ECA/
PE/C/PY–07–10.
Catalog of Federal Domestic
Assistance Number: 00.000.
Application Deadline: December 13,
2006.
Executive Summary: The Office of
Citizen Exchanges, Youth Programs
Division, of the Bureau of Educational
and Cultural Affairs announces an open
competition for the Iraqi Young Leaders
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15:21 Oct 25, 2006
Jkt 211001
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Sfmt 4703
Grant recipient organizations will be
responsible for the entire cycle of each
program to include: Recruitment,
screening and selection of Iraqi and
American students; management of
travel documents, international and
domestic airline reservations for
students and adult chaperones;
preparation and oversight of all
programmatic components in the U.S.;
provision of follow on activities and
support for grantee alumni.
For each summer’s program, an
applicant organization will plan to
recruit between 20 and 100 exchange
participants in Iraq. There is no limit on
the number of groups each applicant
plans to organize. However, since a
delegation will include between 20 and
30 students, any organization that plans
to recruit more than 30 participants will
also need to propose to arrange U.S.
program activity for more than one
delegation. ECA intends to award
multiple grants in order for 100 students
to travel to the U.S. for each summer’s
program. Applicant organizations will
be responsible for arranging all activities
in the U.S. directly or in collaboration
with partner organizations, which must
be identified in the proposal. The
applicant will take into account that
Iraqi students may have little or no prior
knowledge of the United States and
varying degrees of experience in
expressing their opinions in a classroom
setting, therefore, component activities
will be tailored accordingly. Every effort
will be made to encourage active
student participation in all aspects of a
program.
Components for each program group
will include: (A) A two-week period of
community stays with activities
designed to enhance student leadership
skills, expose students to grass-roots
democratic institutions and processes,
and strengthen English language
proficiency; (B) a week at a camp or
other summer program site where
students can have structured interaction
with American youth and with each
other; and (C) a civic education week in
Washington, DC for Iraqi students only.
Follow-up activities in Iraq for alumni
from each grant recipient alumni will be
designed to reinforce the lessons
learned on the exchange and enable the
alumni to apply their new skills in their
community.
A successful project will be one that
nurtures a cadre of students to be
actively engaged in addressing issues in
their schools and communities upon
their return home and that equips
students with the knowledge, skills, and
confidence to do so. By the end of the
program, students will also have
developed relationships with their peers
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]]>Agencies
[Federal Register Volume 71, Number 207 (Thursday, October 26, 2006)]
[Notices]
[Pages 62636-62642]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-17939]
=======================================================================
-----------------------------------------------------------------------
SOCIAL SECURITY ADMINISTRATION
[Document No. 2006 SSA-0088]
Office of the Commissioner; Cost-of-Living Increase and Other
Determinations for 2007
AGENCY: Social Security Administration.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Commissioner has determined--
(1) A 3.3 percent cost-of-living increase in Social Security
benefits under title II of the Social Security Act (the Act), effective
for December 2006;
(2) An increase in the Federal Supplemental Security Income (SSI)
monthly benefit amounts under title XVI of the Act for 2007 to $623 for
an eligible individual, $934 for an eligible individual with an
eligible spouse, and $312 for an essential person;
(3) The student earned income exclusion to be $1,510 per month in
2007 but not more than $6,100 in all of 2007;
(4) The dollar fee limit for services performed as a representative
payee to be $34 per month ($66 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 2007;
(5) The dollar limit on the administrative-cost assessment charged
to attorneys representing claimants to be $77 in 2007;
(6) The national average wage index for 2005 to be $36,952.94;
(7) The Old-Age, Survivors, and Disability Insurance (OASDI)
contribution and benefit base to be $97,500 for remuneration paid in
2007 and self-employment income earned in taxable years beginning in
2007;
(8) The monthly exempt amounts under the Social Security retirement
earnings test for taxable years ending in calendar year 2007 to be
$1,080 and $2,870;
(9) The dollar amounts (``bend points'') used in the primary
insurance amount benefit formula for workers who become eligible for
benefits, or who die before becoming eligible, in 2007 to be $680 and
$4,100;
(10) The dollar amounts (``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 2007 to be $869,
$1,255, and $1,636;
(11) The amount of taxable earnings a person must have to be
credited with a quarter of coverage in 2007 to be $1,000;
(12) The ``old-law'' contribution and benefit base to be $72,600
for 2007;
(13) The monthly amount deemed to constitute substantial gainful
activity for statutorily blind individuals in 2007 to be $1,500, and
the corresponding amount for non-blind disabled persons to be $900;
(14) The earnings threshold establishing a month as a part of a
trial work period to be $640 for 2007; and
(15) Coverage thresholds for 2007 to be $1,500 for domestic workers
and $1,300 for election workers.
FOR FURTHER INFORMATION CONTACT: Jeffrey L. Kunkel, Office of the Chief
Actuary, Social Security Administration, 6401 Security Boulevard,
Baltimore, MD 21235, (410) 965-3013. Information relating to this
announcement is available on our Internet site at
www.socialsecurity.gov/OACT/COLA/. For information on
eligibility or claiming
[[Page 62637]]
benefits, call 1-800-772-1213 or TTY 1-800-325-0778, or visit our
Internet site, Social Security Online, at www.socialsecurity.gov.
SUPPLEMENTARY INFORMATION: In accordance with the Act, the Commissioner
must publish within 45 days after the close of the third calendar
quarter of 2006 the benefit increase percentage and the revised table
of ``special minimum'' benefits (section 215(i)(2)(D)). Also, the
Commissioner must publish on or before November 1 the national average
wage index for 2005 (section 215(a)(1)(D)), the OASDI fund ratio for
2006 (section 215(i)(2)(C)(ii)), the OASDI contribution and benefit
base for 2007 (section 230(a)), the amount of earnings required to be
credited with a quarter of coverage in 2007 (section 213(d)(2)), the
monthly exempt amounts under the Social Security retirement earnings
test for 2007 (section 203(f)(8)(A)), the formula for computing a
primary insurance amount for workers who first become eligible for
benefits or die in 2007 (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 2007
(section 203(a)(2)(C)).
Cost-of-Living Increases
General
The next cost-of-living increase, or automatic benefit increase, is
3.3 percent for benefits under titles II and XVI of the Act. Under
title II, OASDI benefits will increase by 3.3 percent for individuals
eligible for December 2006 benefits, payable in January 2007. This
increase is based on the authority contained in section 215(i) of the
Act (42 U.S.C. 415(i)).
Under title XVI, Federal SSI payment levels will also increase by
3.3 percent effective for payments made for the month of January 2007
but paid on December 29, 2006. This is based on the authority contained
in section 1617 of the Act (42 U.S.C. 1382f).
Automatic Benefit Increase Computation
Under section 215(i) of the Act, the third calendar quarter of 2006
is a cost-of-living computation quarter for all the purposes of the
Act. The Commissioner is, therefore, required to increase benefits,
effective for December 2006, for individuals entitled under section 227
or 228 of the Act, to increase primary insurance amounts of all other
individuals entitled under title II of the Act, and to increase maximum
benefits payable to a family. For December 2006, the benefit increase
is the percentage increase in the Consumer Price Index for Urban Wage
Earners and Clerical Workers from the third quarter of 2005 to the
third quarter of 2006.
Section 215(i)(1) of the Act provides that the Consumer Price Index
for a cost-of-living computation quarter shall be the arithmetic mean
of this index for the 3 months in that quarter. We round the arithmetic
mean, if necessary, to the nearest 0.1. The Department of Labor's
Consumer Price Index for Urban Wage Earners and Clerical Workers for
each month in the quarter ending September 30, 2005, is: for July 2005,
191.0; for August 2005, 192.1; and for September 2005, 195.0. The
arithmetic mean for this calendar quarter is 192.7. The corresponding
Consumer Price Index for each month in the quarter ending September 30,
2006, is: for July 2006, 199.2; for August 2006, 199.6; and for
September 2006, 198.4. The arithmetic mean for this calendar quarter is
199.1. Thus, because the Consumer Price Index for the calendar quarter
ending September 30, 2006, exceeds that for the calendar quarter ending
September 30, 2005 by 3.3 percent (rounded to the nearest 0.1), a cost-
of-living benefit increase of 3.3 percent is effective for benefits
under title II of the Act beginning December 2006.
Section 215(i) also specifies that an automatic 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 Old-
Age and Survivors Insurance and Disability Insurance Trust Funds at the
beginning of that year to the combined expenditures of these funds
during that year. (The expenditures in the ratio's denominator exclude
transfer payments between the two trust funds, and reduce any transfers
to the Railroad Retirement Account by any transfers from that account
into either trust fund.) For 2006, the OASDI fund ratio is assets of
$1,858,660 million divided by estimated expenditures of $560,000
million, or 331.9 percent. Because the 331.9-percent OASDI fund ratio
exceeds 20.0 percent, the automatic benefit increase for December 2006
is not limited.
Title II Benefit Amounts
In accordance with section 215(i) of the Act, in the case of
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 2007, benefits will increase by 3.3 percent beginning
with benefits for December 2006 which are payable in January 2007. In
the case of first eligibility after 2006, the 3.3 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 the
Commissioner determines an automatic increase in Social Security
benefits, the Commissioner will publish in the Federal Register a
revision of the range of the primary insurance amounts 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
primary insurance amounts and corresponding maximum family benefit
amounts after the 3.3 percent automatic benefit increase. ?>
Special Minimum Primary Insurance Amounts and Maximum Family Benefits
Payable for December 2006
------------------------------------------------------------------------
Primary Maximum
Number of years of coverage insurance family
amount benefit
------------------------------------------------------------------------
11............................................ $34.20 $52.00
12............................................ 69.50 105.10
13............................................ 105.00 158.10
14............................................ 140.10 210.80
15............................................ 175.10 263.60
16............................................ 210.60 316.90
17............................................ 246.00 370.10
18............................................ 281.30 422.90
19............................................ 316.50 475.90
20............................................ 351.90 528.60
21............................................ 387.30 582.00
[[Page 62638]]
22............................................ 422.30 634.80
23............................................ 458.20 688.50
24............................................ 493.40 741.10
25............................................ 528.60 793.50
26............................................ 564.50 847.50
27............................................ 599.30 900.20
28............................................ 634.70 953.00
29............................................ 669.90 1,006.30
30............................................ 705.20 1,058.70
------------------------------------------------------------------------
Title XVI Benefit Amounts
In accordance with section 1617 of the Act, maximum SSI Federal
benefit amounts for the aged, blind, and disabled will increase by 3.3
percent effective January 2007. For 2006, we derived the monthly
benefit amounts for an eligible individual, an eligible individual with
an eligible spouse, and for an essential person--$603, $904, and $302,
respectively--from corresponding yearly unrounded Federal SSI benefit
amounts of $7,240.56, $10,859.62, and $3,628.58. For 2007, these yearly
unrounded amounts increase by 3.3 percent to $7,479.50, $11,217.99, and
$3,748.32, 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 2007, are
$7,476, $11,208, and $3,744. Dividing the yearly amounts by 12 gives
the corresponding monthly amounts for 2007--$623, $934, and $312,
respectively. In the case of an eligible individual with an eligible
spouse, we equally divide the amount payable between the two spouses.
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.'' Thus the monthly
benefit for 2007 under this provision is 75 percent of $623, or
$467.25.
Student Earned Income Exclusion
A blind or disabled child, who is a student regularly attending
school, college, or 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 2006 is $1,460 per month but not more than $5,910 in all of
2006. 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 2007,
we increase the corresponding unrounded amount for 2006 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 2006 is $1,464.95. We increase this amount by 3.3
percent to $1,513.29, which we then round to $1,510. Similarly, we
increase the unrounded yearly amount for 2006, $5,905.21, by 3.3
percent to $6,100.08 and round this to $6,100. Thus the maximum amount
of the income exclusion applicable to a student in 2007 is $1,510 per
month but not more than $6,100 in all of 2007.
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 an individual a monthly fee for
expenses incurred in providing services performed as such individual's
representative payee. Currently the fee is limited to the lesser of:
(1) 10 percent of the monthly benefit involved; or (2) $33 per month
($64 per month in any case in which the individual is entitled to
disability benefits and the Commissioner has determined that payment to
the representative payee would serve the interest of the individual
because the individual has an alcoholism or drug addiction condition
and is incapable of managing such benefits). The dollar fee limits are
subject to increase by the automatic cost-of-living increase, with the
resulting amounts rounded to the nearest whole dollar amount. Thus we
increase the current amounts by 3.3 percent to $34 and $66 for 2007.
Attorney Assessment Fee
Under sections 206(d) and 1631(d) of the Act, whenever a fee for
services is required to be paid to an attorney who has represented a
claimant, the Commissioner must impose on the attorney an assessment to
cover administrative costs. Such assessment shall be no more than 6.3
percent of the attorney's fee or, if lower, a dollar amount that is
subject to increase by the automatic cost-of-living increase. We derive
the dollar limit for December 2006 by increasing the unrounded limit
for December 2005, $75.00, by 3.3 percent, which gives $77.47. We then
round $77.47 to the next lower multiple of $1. The dollar limit
effective for December 2006 is thus $77.
National Average Wage Index for 2005
General
Under various provisions of the Act, several amounts increase
automatically with annual increases in the national average wage index.
The amounts are: (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 primary insurance amount and
maximum family benefit formulas; (4) the amount of earnings required
for a worker to be credited with a quarter of coverage; (5) the ``old-
law'' contribution and benefit base (as determined under section 230 of
the Act as in effect before the 1977 amendments); (6) the substantial
gainful activity amount applicable to statutorily blind individuals;
and (7) 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 automatically under regulatory requirements. The amounts are
(1) the substantial gainful activity amount applicable to non-blind
disabled persons, and (2) the monthly earnings threshold that
establishes a month as part of a trial work period for disabled
beneficiaries.
Computation
The determination of the national average wage index for calendar
year 2005 is based on the 2004 national average wage index of
$35,648.55 announced in the Federal Register on October 25, 2005 (70 FR
61677), along with the percentage increase in average wages from 2004
to 2005 measured by annual wage data tabulated by the Social Security
Administration (SSA). The wage data tabulated by SSA include
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 $34,197.63 and $35,448.93 for 2004 and 2005,
respectively. To determine the national average wage index for 2005 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 2004 national average wage
[[Page 62639]]
index of $35,648.55 by the percentage increase in average wages from
2004 to 2005 (based on SSA-tabulated wage data) as follows, with the
result rounded to the nearest cent.
Amount
Multiplying the national average wage index for 2004 ($35,648.55)
by the ratio of the average wage for 2005 ($35,448.93) to that for 2004
($34,197.63) produces the 2005 index, $36,952.94. The national average
wage index for calendar year 2005 is about 3.66 percent greater than
the 2004 index.
OASDI Contribution and Benefit Base
General
The OASDI contribution and benefit base is $97,500 for remuneration
paid in 2007 and self-employment income earned in taxable years
beginning in 2007.
The OASDI contribution and benefit base serves two purposes:
(a) It is the maximum annual amount of earnings on which OASDI
taxes are paid. The OASDI tax rate for remuneration paid in 2007 is
6.2 percent for employees and employers, each. The OASDI tax rate
for self-employment income earned in taxable years beginning in 2007
is 12.4 percent. (The Hospital Insurance tax is due on remuneration,
without limitation, paid in 2007, at the rate of 1.45 percent for
employees and employers, each, and on self-employment income earned
in taxable years beginning in 2007, at the rate of 2.9 percent.)
(b) It is 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 2007 shall be the larger of: (1) The 1994 base of $60,600
multiplied by the ratio of the national average wage index for 2005 to
that for 1992; or (2) the current base ($94,200). If the resulting
amount is not a multiple of $300, it shall be 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 2005
($36,952.94 as determined above) to that for 1992 ($22,935.42) produces
the amount of $97,637.11. We round this amount to $97,500. Because
$97,500 exceeds the current base amount of $94,200, the OASDI
contribution and benefit base is $97,500 for 2007.
Retirement Earnings Test Exempt Amounts
General
We withhold Social Security benefits when a beneficiary under the
normal retirement age (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 primary insurance amount. The NRA is age 65 for those born
before 1938, and it gradually increases to age 67.) A higher exempt
amount applies in the year in which a person attains his/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 who are under NRA and
who will not attain NRA in 2007, the lower monthly exempt amount for
2007 shall be the larger of: (1) The 1994 monthly exempt amount
multiplied by the ratio of the national average wage index for 2005 to
that for 1992; or (2) the 2006 monthly exempt amount ($1,040). If the
resulting amount is not a multiple of $10, it shall be rounded to the
nearest multiple of $10.
Under the formula applicable to beneficiaries attaining NRA in
2007, the higher monthly exempt amount for 2007 shall be the larger of:
(1) The 2002 monthly exempt amount multiplied by the ratio of the
national average wage index for 2005 to that for 2000; or (2) the 2006
monthly exempt amount ($2,770). If the resulting amount is not a
multiple of $10, it shall be 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 2005
($36,952.94) to that for 1992 ($22,935.42) produces the amount of
$1,079.49. We round this to $1,080. Because $1,080 is larger than the
corresponding current exempt amount of $1,040, the lower retirement
earnings test monthly exempt amount is $1,080 for 2007. The
corresponding lower annual exempt amount is $12,960 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 2005
($36,952.94) to that for 2000 ($32,154.82) produces the amount of
$2,873.05. We round this to $2,870. Because $2,870 is larger than the
corresponding current exempt amount of $2,770, the higher retirement
earnings test monthly exempt amount is $2,870 for 2007. The
corresponding higher annual exempt amount is $34,440 under the
retirement earnings test.
Computing Benefits After 1978
General
The Social Security Amendments of 1977 provided a method for
computing benefits which generally applies when a worker first becomes
eligible for benefits after 1978. This method uses the worker's
``average indexed monthly earnings'' to compute the primary insurance
amount. 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 general wage levels that occurred during the worker's years
of employment. Such indexation 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 average
indexed monthly earnings, we first determine the required number of
years of earnings. Then we select that number of years with the highest
indexed earnings, add the indexed earnings, 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 average indexed monthly earnings.
For example, to compute the average indexed monthly earnings for a
worker attaining age 62, becoming disabled before age 62, or dying
before attaining age 62, in 2007, we divide the national average wage
index for 2005, $36,952.94, by the national average wage index for each
year prior to 2005 in which the worker had earnings. Then we multiply
the actual wages and self-employment income, as defined in
[[Page 62640]]
section 211(b) of the Act and credited for each year, by the
corresponding ratio to obtain the worker's indexed earnings for each
year before 2005. We consider any earnings in 2005 or later at face
value, without indexing. We then compute the average indexed monthly
earnings for determining the worker's primary insurance amount for
2007.
Computing the Primary Insurance Amount
The primary insurance amount is the sum of three separate
percentages of portions of the average indexed monthly earnings. 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 average indexed monthly earnings the ``bend points'' of
the formula. Thus, the bend points for 1979 were $180 and $1,085.
To obtain the bend points for 2007, we multiply each of the 1979
bend-point amounts by the ratio of the national average wage index for
2005 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 2005 ($36,952.94) to that
for 1977 ($9,779.44) produces the amounts of $680.15 and $4,099.82. We
round these to $680 and $4,100. Accordingly, the portions of the
average indexed monthly earnings to be used in 2007 are the first $680,
the amount between $680 and $4,100, and the amount over $4,100.
Consequently, for individuals who first become eligible for old-age
insurance benefits or disability insurance benefits in 2007, or who die
in 2007 before becoming eligible for benefits, their primary insurance
amount will be the sum of
(a) 90 percent of the first $680 of their average indexed monthly
earnings, plus
(b) 32 percent of their average indexed monthly earnings over $680
and through $4,100, plus
(c) 15 percent of their average indexed monthly earnings over
$4,100.
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
(42 U.S.C. 415(a)).
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 primary insurance amount. Those amendments also
continued the then existing relationship between maximum family
benefits and primary insurance amounts but did change 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 primary insurance amount. It involves computing the
sum of four separate percentages of portions of the worker's primary
insurance amount. 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 2007, we multiply each of the 1979
bend-point amounts by the ratio of the national average wage index for
2005 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 2005 ($36,952.94) to that for 1977
($9,779.44) produces the amounts of $869.09, $1,254.51, and $1,636.15.
We round these amounts to $869, $1,255, and $1,636. Accordingly, the
portions of the primary insurance amounts to be used in 2007 are the
first $869, the amount between $869 and $1,255, the amount between
$1,255 and $1,636, and the amount over $1,636.
Consequently, for the family of a worker who becomes age 62 or dies
in 2007 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 $869 of the worker's primary insurance
amount, plus
(b) 272 percent of the worker's primary insurance amount over $869
through $1,255, plus
(c) 134 percent of the worker's primary insurance amount over
$1,255 through $1,636, plus
(d) 175 percent of the worker's primary insurance amount over
$1,636.
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
(42 U.S.C. 403(a)).
Quarter of Coverage Amount
General
The amount of earnings required for a quarter of coverage in 2007
is $1,000. 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
2007 shall be the larger of: (1) The 1978 amount of $250 multiplied by
the ratio of the national average wage index for 2005 to that for 1976;
or (2) the current amount of $970. Section 213(d) further provides that
if the resulting amount is not a multiple of $10, it shall be 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 2005 ($36,952.94) to that for
1976 ($9,226.48) produces the amount of $1,001.27. We then round this
amount to $1,000. Because $1,000 exceeds the current amount of $970,
the quarter of coverage amount is $1,000 for 2007.
[[Page 62641]]
``Old-Law'' Contribution and Benefit Base
General
The ``old-law'' contribution and benefit base for 2007 is $72,600.
This is the base that 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 which 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 (as stated in section 230(d) of the Social Security
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 shall be the larger
of: (1) The 1994 ``old-law'' base ($45,000) multiplied by the ratio of
the national average wage index for 2005 to that for 1992; or (2) the
current ``old-law'' base ($69,900). If the resulting amount is not a
multiple of $300, it shall be 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
2005 ($36,952.94) to that for 1992 ($22,935.42) produces the amount of
$72,502.81. We round this amount to $72,600. Because $72,600 exceeds
the current amount of $69,900, the ``old-law'' contribution and benefit
base is $72,600 for 2007.
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 substantial gainful activity (SGA). A person who is earning
more than a certain monthly amount (net of impairment-related work
expenses) 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. Both SGA amounts increase in accordance with
increases in the national average wage index.
Computation
The monthly SGA amount for statutorily blind individuals under
title II for 2007 shall be the larger of: (1) Such amount for 1994
multiplied by the ratio of the national average wage index for 2005 to
that for 1992; or (2) such amount for 2006. The monthly SGA amount for
non-blind disabled individuals for 2007 shall be the larger of: (1)
Such amount for 2000 multiplied by the ratio of the national average
wage index for 2005 to that for 1998; or (2) such amount for 2006. In
either case, if the resulting amount is not a multiple of $10, it shall
be 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
2005 ($36,952.94) to that for 1992 ($22,935.42) produces the amount of
$1,498.39. We then round this amount to $1,500. Because $1,500 is
larger than the current amount of $1,450, the monthly SGA amount for
statutorily blind individuals is $1,500 for 2007.
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 2005
($36,952.94) to that for 1998 ($28,861.44) produces the amount of
$896.25. We then round this amount to $900. Because $900 is larger than
the current amount of $860, the monthly SGA amount for non-blind
disabled individuals is $900 for 2007.
Trial Work Period Earnings Threshold
General
During a trial work period, a beneficiary receiving Social Security
disability benefits may test his or her ability to work and still be
considered disabled. We do not consider services performed during the
trial work period as showing that the disability has ended until
services have been performed in at least 9 months (not necessarily
consecutive) in a rolling 60-month period. In 2006, any month in which
earnings exceed $620 is considered a month of services for an
individual's trial work period. In 2007, this monthly amount increases
to $640.
Computation
The method used to determine the new amount is set forth in our
regulations at 20 CFR 404.1592(b). Monthly earnings in 2007, 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 2005 to that for 1999, or, if larger, such amount for
2006. 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 2005 ($36,952.94) to that for
1999 ($30,469.84) produces the amount of $642.77. We then round this
amount to $640. Because $640 is larger than the current amount of $620,
the monthly earnings threshold is $640 for 2007.
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 2007, this threshold is $1,500.
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 2007 shall be equal to the 1995 amount of $1,000 multiplied by the
ratio of the national average wage index for 2005 to that for 1993. If
the resulting amount is not a multiple of $100, it shall be 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 2005
($36,952.94) to that for 1993 ($23,132.67) produces the amount of
$1,597.44. We then round this amount to $1,500. Accordingly, the
domestic employee coverage threshold amount is $1,500 for 2007.
[[Page 62642]]
Election Worker Coverage Threshold
General
The minimum amount an election worker must earn so that such
earnings are covered under Social Security or Medicare is the election
worker coverage threshold. For 2007, this threshold is $1,300. Section
218(c)(8)(B) of the Act provides the formula for increasing the
threshold.
Computation
Under the formula, the election worker coverage threshold amount
for 2007 shall be equal to the 1999 amount of $1,000 multiplied by the
ratio of the national average wage index for 2005 to that for 1997. If
the amount so determined is not a multiple of $100, it shall be 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 2005
($36,952.94) to that for 1997 ($27,426.00) produces the amount of
$1,347.37. We then round this amount to $1,300. Accordingly, the
election worker coverage threshold amount is $1,300 for 2007.
(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 19, 2006.
Jo Anne B. Barnhart,
Commissioner, Social Security Administration.
[FR Doc. E6-17939 Filed 10-25-06; 8:45 am]
BILLING CODE 4191-02-P
