Cost-of-Living Increase and Other Determinations for 2012, 66111-66117 [2011-27496]
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Federal Register / Vol. 76, No. 206 / Tuesday, October 25, 2011 / Notices
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
ACTION:
James E. Rivera,
Associate Administrator for Disaster
Assistance.
SUMMARY:
[FR Doc. 2011–27483 Filed 10–24–11; 8:45 am]
BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #12858 and #12859]
New York Disaster Number NY–00113
U.S. Small Business
Administration.
ACTION: Amendment 4.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of New York (FEMA–4031–
DR), dated 09/23/2011.
Incident: Remnants of Tropical Storm
Lee.
Incident Period: 09/07/2011 through
09/11/2011.
Effective Date: 10/13/2011.
Physical Loan Application Deadline
Date: 11/22/2011.
Economic Injury (EIDL) Loan
Application Deadline Date: 06/25/2012.
ADDRESSES: Submit completed loan
applications to: U.S. Small Business
Administration, Processing and
Disbursement Center, 14925 Kingsport
Road, Fort Worth, TX 76155.
FOR FURTHER INFORMATION CONTACT: A.
Escobar, Office of Disaster Assistance,
U.S. Small Business Administration,
409 3rd Street, SW., Suite 6050,
Washington, DC 20416.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the State of New York,
dated 09/23/2011, is hereby amended to
include the following areas as adversely
affected by the disaster.
Primary Counties: Montgomery.
All other information in the original
declaration remains unchanged.
SUMMARY:
(Catalog of Federal Domestic Assistance
Numbers 59002 and 59008)
James E. Rivera,
Associate Administrator for Disaster
Assistance.
[FR Doc. 2011–27487 Filed 10–24–11; 8:45 am]
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BILLING CODE 8025–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #12891 and #12892]
New Jersey Disaster #NJ–00028
U.S. Small Business
Administration.
AGENCY:
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Notice.
66111
SOCIAL SECURITY ADMINISTRATION
This is a Notice of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of New Jersey (FEMA–4039–
DR), dated 10/14/2011.
Incident: Remnants of Tropical Storm
Lee.
Incident Period: 09/06/2011 through
09/11/2011.
Effective Date: 10/14/2011.
Physical Loan Application Deadline
Date: 12/13/2011.
Economic Injury (EIDL) Loan
Application Deadline Date: 07/16/2012.
[Docket No. SSA–2011–0075]
Cost-of-Living Increase and Other
Determinations for 2012
Social Security Administration.
Notice.
AGENCY:
ACTION:
Under title II of the Social
Security Act (Act), there will be a 3.6
percent cost-of-living increase in Social
Security benefits effective December
2011. As a result of this increase, the
following items will increase for 2012:
(1) The maximum Federal
Supplemental Security Income (SSI)
monthly benefit amounts for 2012 under
title XVI of the Act will be $698 for an
ADDRESSES: Submit completed loan
eligible individual, $1,048 for an
applications to: U.S. Small Business
eligible individual with an eligible
Administration, Processing and
spouse, and $350 for an essential
Disbursement Center, 14925 Kingsport
person;
Road, Fort Worth, TX 76155.
(2) The special benefit amount under
title VIII of the Act for certain World
FOR FURTHER INFORMATION CONTACT: A.
War II veterans will be $523.50 for 2012;
Escobar, Office of Disaster Assistance,
(3) The student earned income
U.S. Small Business Administration,
exclusion under title XVI of the Act will
409 3rd Street, SW., Suite 6050,
be $1,700 per month in 2012, but not
Washington, DC 20416.
more than $6,840 for all of 2012;
SUPPLEMENTARY INFORMATION: Notice is
(4) The dollar fee limit for services
hereby given that as a result of the
performed as a representative payee will
President’s major disaster declaration on be $38 per month ($75 per month in the
10/14/2011, Private Non-Profit
case of a beneficiary who is disabled
organizations that provide essential
and has an alcoholism or drug addiction
services of governmental nature may file condition that leaves him or her
disaster loan applications at the address incapable of managing benefits) in 2012;
listed above or other locally announced
and
locations.
(5) The dollar limit on the
The following areas have been
administrative-cost assessment charged
determined to be adversely affected by
to attorneys representing claimants will
the disaster:
be $86 in 2012.
The national average wage index for
Primary Counties: Hunterdon, Mercer,
2010 is $41,673.83. This index affects
Passaic, Sussex, Warren.
the following amounts:
(1) The Old-Age, Survivors, and
The Interest Rates are:
Disability Insurance (OASDI)
Percent
contribution and benefit base will be
$110,100 for remuneration paid in 2012
For Physical Damage:
and self-employment income earned in
Non-Profit Organizations With
taxable years beginning in 2012;
Credit Available Elsewhere ...
3.250
(2) The monthly exempt amounts
Non-Profit Organizations Withunder the OASDI retirement earnings
out Credit Available Elsewhere .....................................
3.000 test for taxable years ending in calendar
year 2012 will be $1,220, for years prior
For Economic Injury:
to the year in which a person attains his
Non-Profit Organizations Without Credit Available Elseor her Normal Retirement Age (NRA)
where .....................................
3.000 and $3,240, for the year in which a
The number assigned to this disaster for person attains his or her NRA;
(3) The dollar amounts (‘‘bend
physical damage is 128918 and for economic
points’’) used in the primary insurance
injury is 128928.
amount (PIA) benefit formula for
(Catalog of Federal Domestic Assistance
workers who become eligible for
Numbers 59002 and 59008)
benefits, or who die before becoming
James E. Rivera,
eligible, in 2012 will be $767 and
Associate Administrator for Disaster
$4,624;
Assistance.
(4) The bend points used in the
[FR Doc. 2011–27491 Filed 10–24–11; 8:45 am]
formula for computing maximum family
BILLING CODE 8025–01–P
benefits for workers who become
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SUMMARY:
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Federal Register / Vol. 76, No. 206 / Tuesday, October 25, 2011 / Notices
eligible for benefits, or who die before
becoming eligible, in 2012 will be $980,
$1,415, and $1,845;
(5) The amount of taxable earnings a
person must have to be credited with a
quarter of coverage in 2012 will be
$1,130;
(6) The ‘‘old-law’’ contribution and
benefit base under title II of the Act will
be $81,900 for 2012;
(7) The monthly amount deemed to
constitute substantial gainful activity for
statutorily blind individuals in 2012
will be $1,690, and the corresponding
amount for non-blind disabled persons
will be $1,010;
(8) The earnings threshold
establishing a month as a part of a trial
work period will be $720 for 2012; and
(9) Coverage thresholds for 2012 will
be $1,800 for domestic workers and
$1,500 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 https://
www.socialsecurity.gov/oact/cola/
index.html. For information on
eligibility or claiming benefits, call 1–
800–772–1213, or visit our Internet site,
Social Security Online, at https://
www.socialsecurity.gov.
In
accordance with the Act, we must
publish within 45 days after the close of
the third calendar quarter of 2011 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
2010 (section 215(a)(1)(D)), the OASDI
fund ratio for 2011 (section
215(i)(2)(C)(ii)), the OASDI contribution
and benefit base for 2012 (section
230(a)), the amount of earnings required
to be credited with a quarter of coverage
in 2012 (section 213(d)(2)), the monthly
exempt amounts under the Social
Security retirement earnings test for
2012 (section 203(f)(8)(A)), the formula
for computing a PIA for workers who
first become eligible for benefits or die
in 2012 (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 2012
(section 203(a)(2)(C)).
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SUPPLEMENTARY INFORMATION:
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Cost-of-Living Increases
General
The cost-of-living increase is 3.6
percent for benefits under titles II and
XVI of the Act. Under title II, OASDI
benefits will increase by 3.6 percent for
individuals eligible for December 2011
benefits, payable in January 2012. 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 3.6 percent effective for
payments made for the month of
January 2012 but paid on December 30,
2011.
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 2008, was based on the
CPI increase from the third quarter of
2007 to the third quarter of 2008.
Accordingly, the last computation
quarter is the third quarter of 2008. 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 2008 to the third quarter of
2011.
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, 2008, is: For July
2008, 216.304; for August 2008,
215.247; and for September 2008,
214.935. The arithmetic mean for that
calendar quarter is 215.495. The
corresponding CPI for each month in the
quarter ending September 30, 2011, is:
For July 2011, 222.686; for August 2011,
223.326; and for September 2011,
223.688. The arithmetic mean for this
calendar quarter is 223.233. The CPI for
the calendar quarter ending September
30, 2011, exceeds that for the calendar
quarter ending September 30, 2008 by
3.6 percent (rounded to the nearest 0.1),
beginning December 2011. Therefore, a
cost-of-living benefit increase of 3.6
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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 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. For 2011, the OASDI fund ratio is
assets of $2,608,950 million divided by
estimated expenditures of $738,528
million, or 353.3 percent. Because the
353.3 percent OASDI fund ratio exceeds
20.0 percent, the benefit increase for
December 2011 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; (2) title XVI; (3)
title VIII; (4) the student earned income
exclusion; (5) the fee for services
performed by a representative payee;
and (6) the attorney assessment fee.
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 2012, benefits will
increase by 3.6 percent beginning with
benefits for December 2011 which are
payable in January 2012. In the case of
first eligibility after 2011, the 3.6
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 https://
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
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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 3.6 percent benefit
increase.
effective for 2012, are $8,376, $12,576,
and $4,200. Dividing the yearly amounts
by 12 gives the corresponding monthly
amounts for 2012—$698, $1,048, and
$350, 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 2011
2012 under this provision is 75 percent
of $698, or $523.50.
Number of
Primary
Maximum
years of
coverage
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11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
..............
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..............
..............
..............
..............
..............
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insurance
amount
$38.20
77.80
117.60
157.00
196.20
236.00
275.60
315.20
354.70
394.40
434.10
473.40
513.60
553.10
592.50
632.70
671.80
711.50
751.10
790.60
family
benefit
$58.10
117.70
177.10
236.30
295.40
355.10
414.90
474.00
533.50
592.50
652.40
711.70
771.90
830.80
889.60
950.10
1,009.30
1,068.50
1,128.30
1,187.00
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 3.6 percent
effective January 2012. For 2011, we
derived the monthly benefit amounts for
an eligible individual, an eligible
individual with an eligible spouse, and
for an essential person—$674, $1,011,
and $338, respectively—from
corresponding yearly unrounded
Federal SSI benefit amounts of
$8,095.32, $12,141.61, and $4,056.93.
For 2012, these yearly unrounded
amounts increase by 3.6 percent to
$8,386.75, $12,578.71, and $4,202.98,
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,
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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 2011 is $1,640
per month, but not more than $6,600 in
all of 2011. 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 2012, we
increase the corresponding unrounded
amount for 2011 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
2011 is $1,637.89. We increase this
amount by 3.6 percent to $1,696.85,
which we then round to $1,700.
Similarly, we increase the unrounded
yearly amount for 2011, $6,602.32, by
3.6 percent to $6,840.00 and round this
to $6,840. Accordingly, the maximum
amount of the income exclusion
applicable to a student in 2012 is $1,700
per month but not more than $6,840 in
all of 2012.
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. Currently the fee
is limited to the lesser of: (1) 10 Percent
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66113
of the monthly benefit involved; or (2)
$37 per month ($72 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 3.6 percent to
$38 and $75 for 2012.
Attorney Assessment Fee
Under sections 206(d) and 1631(d) of
the Act, whenever we pay fees to an
attorney who has represented a
claimant, we must impose on the
attorney an assessment to cover
administrative costs. Such assessment is
no more than 6.3 percent of the
attorney’s 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 2011 by
increasing the unrounded limit for
December 2010, $83.85, by 3.6 percent,
which is $86.87. We then round $86.87
to the next lower multiple of $1. The
dollar limit effective for December 2011
is, therefore, $86.
National Average Wage Index for 2010
Computation
We determined the national average
wage index for calendar year 2010 based
on the 2009 national average wage index
of $40,711.61, announced in the Federal
Register on November 30, 2010 (75 FR
74123), along with the percentage
increase in average wages from 2009 to
2010, 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 $39,036.67 and
$39,959.30 for 2009 and 2010,
respectively. Note that the average
amount of wages for 2009 is different
from the amount shown in last year’s
Federal Register announcement because
it reflects our improved data edits for
this calculation. To determine the
national average wage index for 2010 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 2009 national average wage
index of $40,711.61 by the percentage
increase in average wages from 2009 to
2010 (based on SSA-tabulated wage
data) as follows, with the result rounded
to the nearest cent.
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Amount
Multiplying the national average wage
index for 2009 ($40,711.61) by the ratio
of the average wage for 2010
($39,959.30) to that for 2009
($39,036.67) produces the 2010 index,
$41,673.83. The national average wage
index for calendar year 2010 is about
2.36 percent higher than the 2009 index.
Program Amounts That Change Based
on the National Average Wage Index
Under various provisions of the Act, 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; (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
substantial gainful activity 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
substantial gainful activity 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
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General
The OASDI contribution and benefit
base is $110,100 for remuneration paid
in 2012 and self-employment income
earned in taxable years beginning in
2012. 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 2012 is the larger
of: (1) The 1994 base of $60,600
multiplied by the ratio of the national
average wage index for 2010 to that for
1992; or (2) the current base ($106,800).
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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 2010 ($41,673.83
as determined above) to that for 1992
($22,935.42) produces the amount of
$110,110.65. We round this amount to
$110,100. Because $110,100 exceeds the
current base amount of $106,800, the
OASDI contribution and benefit base is
$110,100 for 2012.
higher monthly exempt amount for 2012
is the larger of: (1) The 2002 monthly
exempt amount multiplied by the ratio
of the national average wage index for
2010 to that for 2000; or (2) the 2011
monthly exempt amount ($3,140). If the
resulting amount is not a multiple of
$10, it is rounded to the nearest
multiple of $10.
Lower Exempt Amount
If the resulting amount is not a multiple
of $300, it is rounded to the nearest
multiple of $300.
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 PIA. The NRA is
age 66 for those born in 1943–55, 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 who are under NRA and
who will not attain NRA in 2012, the
lower monthly exempt amount for 2012
is the larger of: (1) The 1994 monthly
exempt amount multiplied by the ratio
of the national average wage index for
2010 to that for 1992; or (2) the 2011
monthly exempt amount ($1,180). If the
resulting amount is not a multiple of
$10, it is rounded to the nearest
multiple of $10.
Under the formula applicable to
beneficiaries attaining NRA in 2012, the
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Multiplying the 1994 retirement
earnings test monthly exempt amount of
$670 by the ratio of the national average
wage index for 2010 ($41,673.83) to that
for 1992 ($22,935.42) produces the
amount of $1,217.40. We round this to
$1,220. Because $1,220 exceeds the
corresponding current exempt amount
of $1,180, the lower retirement earnings
test monthly exempt amount is $1,220
for 2012. The corresponding lower
annual exempt amount is $14,640 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 2010
($41,673.83) to that for 2000
($32,154.82) produces the amount of
$3,240.09. We round this to $3,240.
Because $3,240 exceeds the
corresponding current exempt amount
of $3,140, the higher retirement earnings
test monthly exempt amount is $3,240
for 2012. The corresponding higher
annual exempt amount is $38,880 under
the retirement earnings test.
Primary Insurance Amount (PIA)
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
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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 2012,
we multiply each of the 1979 bendpoint amounts by the ratio of the
national average wage index for 2010 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 2010
($41,673.83) to that for 1977 ($9,779.44)
produces the amounts of $767.05 and
$4,623.59. We round these to $767 and
$4,624. Accordingly, the portions of the
AIME to be used in 2012 are the first
$767, the amount between $767 and
$4,624, and the amount over $4,624.
Consequently, for individuals who
first become eligible for old-age
insurance benefits or disability
insurance benefits in 2012, or who die
in 2012 before becoming eligible for
benefits, their PIA will be the sum of:
(a) 90 percent of the first $767 of their
AIME, plus.
(b) 32 percent of their AIME over $767
and through $4,624, plus.
(c) 15 percent of their AIME over
$4,624.
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
sroberts on DSK5SPTVN1PROD with NOTICES
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
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Jkt 226001
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 2012,
we multiply each of the 1979 bendpoint amounts by the ratio of the
national average wage index for 2010 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 2010
($41,673.83) to that for 1977 ($9,779.44)
produces the amounts of $980.12,
$1,414.78, and $1,845.17. We round
these amounts to $980, $1,415, and
$1,845. Accordingly, the portions of the
PIAs to be used in 2012 are the first
$980, the amount between $980 and
$1,415, the amount between $1,415 and
$1,845, and the amount over $1,845.
Consequently, for the family of a
worker who becomes age 62 or dies in
2012 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 $980 of the
worker’s PIA, plus.
(b) 272 percent of the worker’s PIA
over $980 through $1,415, plus.
(c) 134 percent of the worker’s PIA
over $1,415 through $1,845, plus.
(d) 175 percent of the worker’s PIA
over $1,845.
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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Sfmt 4703
66115
Quarter of Coverage Amount
General
The amount of earnings required for
a quarter of coverage in 2012 is $1,130.
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 2012 is
the larger of (1) The 1978 amount of
$250 multiplied by the ratio of the
national average wage index for 2010 to
that for 1976; or (2) the current amount
of $1,120. 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
2010 ($41,673.83) to that for 1976
($9,226.48) produces the amount of
$1,129.19. We then round this amount
to $1,130. Because $1,130 exceeds the
current amount of $1,120, the quarter of
coverage amount is $1,130 for 2012.
‘‘Old-Law’’ Contribution and Benefit
Base
General
The ‘‘old-law’’ contribution and
benefit base for 2012 is $81,900. 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
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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 2010 to that for 1992; or (2) the
current ‘‘old-law’’ base ($79,200). 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 2010
($41,673.83) to that for 1992
($22,935.42) produces the amount of
$81,765.34. We round this amount to
$81,900. Because $81,900 exceeds the
current amount of $79,200, the ‘‘oldlaw’’ contribution and benefit base is
$81,900 for 2012.
Substantial Gainful Activity Amounts
sroberts on DSK5SPTVN1PROD with NOTICES
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 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 2012 is the larger of: (1) Such
amount for 1994 multiplied by the ratio
of the national average wage index for
2010 to that for 1992; or (2) such
amount for 2011. The monthly SGA
amount for non-blind disabled
individuals for 2012 is the larger of: (1)
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Such amount for 2000 multiplied by the
ratio of the national average wage index
for 2010 to that for 1998; or (2) such
amount for 2011. In either case, if the
resulting amount is not a multiple of
$10, it is rounded to the nearest
multiple of $10.
$724.88. We then round this amount to
$720. Because $720 equals the current
amount of $720, the monthly earnings
threshold is $720 for 2012.
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 2010
($41,673.83) to that for 1992
($22,935.42) produces the amount of
$1,689.82. We then round this amount
to $1,690. Because $1,690 exceeds the
current amount of $1,640, the monthly
SGA amount for statutorily blind
individuals is $1,690 for 2012.
General
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 2010 ($41,673.83) to that for
1998 ($28,861.44) produces the amount
of $1,010.75. We then round this
amount to $1,010. Because $1,010
exceeds the current amount of $1,000,
the monthly SGA amount for non-blind
disabled individuals is $1,010 for 2012.
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 2012, any
month in which earnings exceed $720 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 2012, 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
2010 to that for 1999 or, if larger, such
amount for 2011. 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
2010 ($41,673.83) to that for 1999
($30,469.84) produces the amount of
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Fmt 4703
Sfmt 4703
Domestic Employee Coverage
Threshold
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 2012, this
threshold is $1,800. 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 2012 is equal to the 1995 amount of
$1,000 multiplied by the ratio of the
national average wage index for 2010 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 2010
($41,673.83) to that for 1993
($23,132.67) produces the amount of
$1,801.51. We then round this amount
to $1,800. Accordingly, the domestic
employee coverage threshold amount is
$1,800 for 2012.
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 2012, this
threshold is $1,500. 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 2012 is equal to
the 1999 amount of $1,000 multiplied
by the ratio of the national average wage
index for 2010 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
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Federal Register / Vol. 76, No. 206 / Tuesday, October 25, 2011 / Notices
the ratio of the national average wage
index for 2010 ($41,673.83) to that for
1997 ($27,426.00) produces the amount
of $1,519.50. We then round this
amount to $1,500. Accordingly, the
election worker coverage threshold
amount is $1,500 for 2012.
(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)
Michael J. Astrue,
Commissioner of Social Security.
[FR Doc. 2011–27496 Filed 10–24–11; 8:45 am]
BILLING CODE 4191–02–P
SUSQUEHANNA RIVER BASIN
COMMISSION
Projects Approved for Consumptive
Uses of Water
Susquehanna River Basin
Commission.
ACTION: Notice.
AGENCY:
This notice lists the projects
approved by rule by the Susquehanna
River Basin Commission during the
period set forth in ‘‘DATES.’’
DATES: August 1, 2011, through
September 30, 2011.
ADDRESSES: Susquehanna River Basin
Commission, 1721 North Front Street,
Harrisburg, PA 17102–2391.
FOR FURTHER INFORMATION CONTACT:
Richard A. Cairo, General Counsel,
telephone: (717) 238–0423, ext. 306; fax:
(717) 238–2436; e-mail: rcairo@srbc.net
or Stephanie L. Richardson, Secretary to
the Commission, telephone: (717) 238–
0423, ext. 304; fax: (717) 238–2436; email: srichardson@srbc.net. Regular
mail inquiries may be sent to the above
address.
SUPPLEMENTARY INFORMATION: This
notice lists the projects, described
below, receiving approval for the
consumptive use of water pursuant to
the Commission’s approval by rule
process set forth in 18 CFR 806.22(f) for
the time period specified above:
Approvals By Rule Issued Under 18
CFR 806.22(f):
1. Talisman Energy USA Inc., Pad ID:
05 098 Younger, ABR–201108001, Pike
Township, Bradford County, Pa.;
Consumptive Use of up to 6.000 mgd;
Approval Date: August 1, 2011.
2. Talisman Energy USA Inc., Pad ID:
02 010 DCNR 587, ABR–201108002,
Ward Township, Tioga County, Pa.;
Consumptive Use of up to 6.000 mgd;
Approval Date: August 1, 2011.
sroberts on DSK5SPTVN1PROD with NOTICES
SUMMARY:
VerDate Mar<15>2010
18:10 Oct 24, 2011
Jkt 226001
3. Talisman Energy USA Inc., Pad ID:
03 113 Vanblarcom, ABR–201108003,
Columbia Township, Bradford County,
Pa.; Consumptive Use of up to 6.000
mgd; Approval Date: August 1, 2011.
4. Talisman Energy USA Inc., Pad ID:
03 110 Barlow, ABR–201108004,
Columbia Township, Bradford County,
Pa.; Consumptive Use of up to 6.000
mgd; Approval Date: August 1, 2011.
5. Cabot Oil & Gas Corporation, Pad
ID: Mogridge P1, ABR–201108005,
Springville Township, Susquehanna
County, Pa.; Consumptive Use of up to
3.575 mgd; Approval Date: August 1,
2011.
6. EXCO Resources, (PA), LLC, Pad
ID: Lamborne Pad 195, ABR–201108006,
Jordan Township, Clearfield County,
Pa.; Consumptive Use of up to 8.000
mgd; Approval Date: August 1, 2011.
7. Southwestern Energy Production
Company, Pad ID: Cramer Pad, ABR–
201108007, New Milford Township,
Susquehanna County, Pa.; Consumptive
Use of up to 4.990 mgd; Approval Date:
August 4, 2011.
8. Seneca Resources Corporation, Pad
ID: Rich Valley Pad B, ABR–201108008,
Shippen Township, Cameron County,
Pa.; Consumptive Use of up to 4.000
mgd; Approval Date: August 8, 2011.
9. Talisman Energy USA Inc., Pad ID:
03 111 Stephani, ABR–201108009,
Columbia Township, Bradford County,
Pa.; Consumptive Use of up to 6.000
mgd; Approval Date: August 8, 2011.
10. Talisman Energy USA Inc., Pad
ID: 05 229 Acres, ABR–201108010,
Windham Township, Bradford County,
Pa.; Consumptive Use of up to 6.000
mgd; Approval Date: August 8, 2011.
11. EXCO Resources (PA), LLC, Pad
ID: Remley Drilling Pad #1, ABR–
201012035.1, Jackson Township,
Columbia County, Pa.; Consumptive Use
of up to 8.000 mgd; Approval Date:
August 8, 2011.
12. EXCO Resources (PA), LLC, Pad
ID: Hess Drilling Pad #1, ABR–
201012037.1, Jackson Township,
Columbia County, Pa.; Consumptive Use
of up to 8.000 mgd; Approval Date:
August 8, 2011.
13. Southwestern Energy Production
Company, Pad ID: Shively Pad, ABR–
201108011, Lenox Township,
Susquehanna County, Pa.; Consumptive
Use of up to 4.990 mgd; Approval Date:
August 8, 2011.
14. Carrizo (Marcellus), LLC, Pad ID:
Frystak Central Pad, ABR–201108012,
Bridgewater Township, Susquehanna
County, Pa.; Consumptive Use of up to
2.100 mgd; Approval Date: August 8,
2011.
15. Chesapeake Appalachia, LLC, Pad
ID: CSB, ABR–201108013, Cherry
Township, Sullivan County, Pa.;
PO 00000
Frm 00086
Fmt 4703
Sfmt 4703
66117
Consumptive Use of up to 7.500 mgd;
Approval Date: August 8, 2011.
16. Chesapeake Appalachia, LLC, Pad
ID: Joe, ABR–201108014, Wilmot
Township, Bradford County, Pa.;
Consumptive Use of up to 7.500 mgd;
Approval Date: August 8, 2011.
17. Chesapeake Appalachia, LLC, Pad
ID: Rock Ridge, ABR–201108015,
Towanda Township, Bradford County,
Pa.; Consumptive Use of up to 7.500
mgd; Approval Date: August 8, 2011.
18. J–W Operating Company, Pad ID:
Pardee-F, ABR–201108016, Shippen
Township, Cameron County, Pa.;
Consumptive Use of up to 5.000 mgd;
Approval Date: August 9, 2011.
19. Anadarko E&P Company LP, Pad
ID: COP Tract 356 Pad G, ABR–
201108017, Cummings Township,
Lycoming County, Pa.; Consumptive
Use of up to 4.000 mgd; Approval Date:
August 10, 2011.
20. Chief Oil & Gas LLC, Pad ID:
Savage Drilling Pad #1, ABR–20118018,
Elkland Township, Sullivan County,
Pa.; Consumptive Use of up to 2.000
mgd; Approval Date: August 10, 2011.
21. EXCO Resources (PA), LLC, Pad
ID: Sterner Drilling Pad #1, ABR–
201012036.1, Jackson Township,
Columbia County, Pa.; Consumptive Use
of up to 8.000 mgd; Approval Date:
August 12, 2011.
22. Chesapeake Appalachia, LLC, Pad
ID: Colcam, ABR–201108019,
Meshoppen Township, Wyoming
County, Pa.; Consumptive Use of up to
7.500 mgd; Approval Date: August 12,
2011.
23. Southwestern Energy Production
Company, Pad ID: Roman Pad, ABR–
201108020, New Milford Township,
Susquehanna County, Pa.; Consumptive
Use of up to 4.990 mgd; Approval Date:
August 15, 2011.
24. Chesapeake Appalachia, LLC, Pad
ID: Mad Dog, ABR–201108021, Wilmot
Township, Bradford County, Pa.;
Consumptive Use of up to 7.500 mgd;
Approval Date: August 15, 2011.
25. Southwestern Energy Production
Company, Pad ID: Alexander Pad, ABR–
201108022, New Milford Township,
Susquehanna County, Pa.; Consumptive
Use of up to 4.990 mgd; Approval Date:
August 15, 2011.
26. Southwestern Energy Production
Company, Pad ID: Grizzanti Pad, ABR–
201108023, New Milford Township,
Susquehanna County, Pa.; Consumptive
Use of up to 4.990 mgd; Approval Date:
August 15, 2011.
27. EXCO Resources (PA), LLC, Pad
ID: Marquardt Drilling Pad #1, ABR–
201008008.1, Davidson Township,
Sullivan County, Pa.; Consumptive Use
of up to 8.000 mgd; Approval Date:
August 15, 2011.
E:\FR\FM\25OCN1.SGM
25OCN1
]]>Agencies
[Federal Register Volume 76, Number 206 (Tuesday, October 25, 2011)]
[Notices]
[Pages 66111-66117]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-27496]
=======================================================================
-----------------------------------------------------------------------
SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA-2011-0075]
Cost-of-Living Increase and Other Determinations for 2012
AGENCY: Social Security Administration.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: Under title II of the Social Security Act (Act), there will be
a 3.6 percent cost-of-living increase in Social Security benefits
effective December 2011. As a result of this increase, the following
items will increase for 2012:
(1) The maximum Federal Supplemental Security Income (SSI) monthly
benefit amounts for 2012 under title XVI of the Act will be $698 for an
eligible individual, $1,048 for an eligible individual with an eligible
spouse, and $350 for an essential person;
(2) The special benefit amount under title VIII of the Act for
certain World War II veterans will be $523.50 for 2012;
(3) The student earned income exclusion under title XVI of the Act
will be $1,700 per month in 2012, but not more than $6,840 for all of
2012;
(4) The dollar fee limit for services performed as a representative
payee will be $38 per month ($75 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 2012; and
(5) The dollar limit on the administrative-cost assessment charged
to attorneys representing claimants will be $86 in 2012.
The national average wage index for 2010 is $41,673.83. This index
affects the following amounts:
(1) The Old-Age, Survivors, and Disability Insurance (OASDI)
contribution and benefit base will be $110,100 for remuneration paid in
2012 and self-employment income earned in taxable years beginning in
2012;
(2) The monthly exempt amounts under the OASDI retirement earnings
test for taxable years ending in calendar year 2012 will be $1,220, for
years prior to the year in which a person attains his or her Normal
Retirement Age (NRA) and $3,240, for the year in which a person attains
his or her NRA;
(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 2012 will be $767
and $4,624;
(4) The bend points used in the formula for computing maximum
family benefits for workers who become
[[Page 66112]]
eligible for benefits, or who die before becoming eligible, in 2012
will be $980, $1,415, and $1,845;
(5) The amount of taxable earnings a person must have to be
credited with a quarter of coverage in 2012 will be $1,130;
(6) The ``old-law'' contribution and benefit base under title II of
the Act will be $81,900 for 2012;
(7) The monthly amount deemed to constitute substantial gainful
activity for statutorily blind individuals in 2012 will be $1,690, and
the corresponding amount for non-blind disabled persons will be $1,010;
(8) The earnings threshold establishing a month as a part of a
trial work period will be $720 for 2012; and
(9) Coverage thresholds for 2012 will be $1,800 for domestic
workers and $1,500 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 https://www.socialsecurity.gov/oact/cola/. For information on
eligibility or claiming benefits, call 1-800-772-1213, or visit our
Internet site, Social Security Online, at https://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 2011
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 2010 (section
215(a)(1)(D)), the OASDI fund ratio for 2011 (section
215(i)(2)(C)(ii)), the OASDI contribution and benefit base for 2012
(section 230(a)), the amount of earnings required to be credited with a
quarter of coverage in 2012 (section 213(d)(2)), the monthly exempt
amounts under the Social Security retirement earnings test for 2012
(section 203(f)(8)(A)), the formula for computing a PIA for workers who
first become eligible for benefits or die in 2012 (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 2012 (section 203(a)(2)(C)).
Cost-of-Living Increases
General
The cost-of-living increase is 3.6 percent for benefits under
titles II and XVI of the Act. Under title II, OASDI benefits will
increase by 3.6 percent for individuals eligible for December 2011
benefits, payable in January 2012. 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 3.6 percent effective for payments made for the
month of January 2012 but paid on December 30, 2011.
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 2008, was based on the CPI increase from the
third quarter of 2007 to the third quarter of 2008. Accordingly, the
last computation quarter is the third quarter of 2008. 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
2008 to the third quarter of 2011.
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, 2008, is: For July 2008, 216.304; for August 2008,
215.247; and for September 2008, 214.935. The arithmetic mean for that
calendar quarter is 215.495. The corresponding CPI for each month in
the quarter ending September 30, 2011, is: For July 2011, 222.686; for
August 2011, 223.326; and for September 2011, 223.688. The arithmetic
mean for this calendar quarter is 223.233. The CPI for the calendar
quarter ending September 30, 2011, exceeds that for the calendar
quarter ending September 30, 2008 by 3.6 percent (rounded to the
nearest 0.1), beginning December 2011. Therefore, a cost-of-living
benefit increase of 3.6 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 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. For
2011, the OASDI fund ratio is assets of $2,608,950 million divided by
estimated expenditures of $738,528 million, or 353.3 percent. Because
the 353.3 percent OASDI fund ratio exceeds 20.0 percent, the benefit
increase for December 2011 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; (2) title XVI; (3) title VIII; (4) the student
earned income exclusion; (5) the fee for services performed by a
representative payee; and (6) the attorney assessment fee.
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 2012, benefits will increase by 3.6 percent beginning with
benefits for December 2011 which are payable in January 2012. In the
case of first eligibility after 2011, the 3.6 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 https://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
[[Page 66113]]
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 3.6 percent
benefit increase.
Special Minimum PIAs and Maximum Family Benefits Payable for December
2011
------------------------------------------------------------------------
Primary Maximum
Number of years of coverage insurance family
amount benefit
------------------------------------------------------------------------
11...................................... $38.20 $58.10
12...................................... 77.80 117.70
13...................................... 117.60 177.10
14...................................... 157.00 236.30
15...................................... 196.20 295.40
16...................................... 236.00 355.10
17...................................... 275.60 414.90
18...................................... 315.20 474.00
19...................................... 354.70 533.50
20...................................... 394.40 592.50
21...................................... 434.10 652.40
22...................................... 473.40 711.70
23...................................... 513.60 771.90
24...................................... 553.10 830.80
25...................................... 592.50 889.60
26...................................... 632.70 950.10
27...................................... 671.80 1,009.30
28...................................... 711.50 1,068.50
29...................................... 751.10 1,128.30
30...................................... 790.60 1,187.00
------------------------------------------------------------------------
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 3.6
percent effective January 2012. For 2011, we derived the monthly
benefit amounts for an eligible individual, an eligible individual with
an eligible spouse, and for an essential person--$674, $1,011, and
$338, respectively--from corresponding yearly unrounded Federal SSI
benefit amounts of $8,095.32, $12,141.61, and $4,056.93. For 2012,
these yearly unrounded amounts increase by 3.6 percent to $8,386.75,
$12,578.71, and $4,202.98, 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 2012, are $8,376, $12,576, and $4,200. Dividing the
yearly amounts by 12 gives the corresponding monthly amounts for 2012--
$698, $1,048, and $350, 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 2012 under this provision is 75 percent of $698, or
$523.50.
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 2011 is $1,640 per month, but not more than $6,600 in all
of 2011. 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 2012,
we increase the corresponding unrounded amount for 2011 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 2011 is $1,637.89. We increase this amount by 3.6
percent to $1,696.85, which we then round to $1,700. Similarly, we
increase the unrounded yearly amount for 2011, $6,602.32, by 3.6
percent to $6,840.00 and round this to $6,840. Accordingly, the maximum
amount of the income exclusion applicable to a student in 2012 is
$1,700 per month but not more than $6,840 in all of 2012.
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. Currently the fee is limited to the lesser of:
(1) 10 Percent of the monthly benefit involved; or (2) $37 per month
($72 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 3.6
percent to $38 and $75 for 2012.
Attorney Assessment Fee
Under sections 206(d) and 1631(d) of the Act, whenever we pay fees
to an attorney who has represented a claimant, we must impose on the
attorney an assessment to cover administrative costs. Such assessment
is no more than 6.3 percent of the attorney's 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 2011 by increasing
the unrounded limit for December 2010, $83.85, by 3.6 percent, which is
$86.87. We then round $86.87 to the next lower multiple of $1. The
dollar limit effective for December 2011 is, therefore, $86.
National Average Wage Index for 2010
Computation
We determined the national average wage index for calendar year
2010 based on the 2009 national average wage index of $40,711.61,
announced in the Federal Register on November 30, 2010 (75 FR 74123),
along with the percentage increase in average wages from 2009 to 2010,
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 $39,036.67 and $39,959.30 for 2009 and
2010, respectively. Note that the average amount of wages for 2009 is
different from the amount shown in last year's Federal Register
announcement because it reflects our improved data edits for this
calculation. To determine the national average wage index for 2010 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 2009 national average wage index of $40,711.61 by the
percentage increase in average wages from 2009 to 2010 (based on SSA-
tabulated wage data) as follows, with the result rounded to the nearest
cent.
[[Page 66114]]
Amount
Multiplying the national average wage index for 2009 ($40,711.61)
by the ratio of the average wage for 2010 ($39,959.30) to that for 2009
($39,036.67) produces the 2010 index, $41,673.83. The national average
wage index for calendar year 2010 is about 2.36 percent higher than the
2009 index.
Program Amounts That Change Based on the National Average Wage
Index Under various provisions of the Act, 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; (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 substantial gainful activity 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 substantial gainful
activity 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 $110,100 for
remuneration paid in 2012 and self-employment income earned in taxable
years beginning in 2012. 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 2012 is the larger of: (1) The 1994 base of $60,600 multiplied by
the ratio of the national average wage index for 2010 to that for 1992;
or (2) the current base ($106,800). 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 2010
($41,673.83 as determined above) to that for 1992 ($22,935.42) produces
the amount of $110,110.65. We round this amount to $110,100. Because
$110,100 exceeds the current base amount of $106,800, the OASDI
contribution and benefit base is $110,100 for 2012.
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 PIA. The NRA is age 66 for those born in 1943-55, 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 who are under NRA and
who will not attain NRA in 2012, the lower monthly exempt amount for
2012 is the larger of: (1) The 1994 monthly exempt amount multiplied by
the ratio of the national average wage index for 2010 to that for 1992;
or (2) the 2011 monthly exempt amount ($1,180). If the resulting amount
is not a multiple of $10, it is rounded to the nearest multiple of $10.
Under the formula applicable to beneficiaries attaining NRA in
2012, the higher monthly exempt amount for 2012 is the larger of: (1)
The 2002 monthly exempt amount multiplied by the ratio of the national
average wage index for 2010 to that for 2000; or (2) the 2011 monthly
exempt amount ($3,140). 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 2010
($41,673.83) to that for 1992 ($22,935.42) produces the amount of
$1,217.40. We round this to $1,220. Because $1,220 exceeds the
corresponding current exempt amount of $1,180, the lower retirement
earnings test monthly exempt amount is $1,220 for 2012. The
corresponding lower annual exempt amount is $14,640 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 2010
($41,673.83) to that for 2000 ($32,154.82) produces the amount of
$3,240.09. We round this to $3,240. Because $3,240 exceeds the
corresponding current exempt amount of $3,140, the higher retirement
earnings test monthly exempt amount is $3,240 for 2012. The
corresponding higher annual exempt amount is $38,880 under the
retirement earnings test.
Primary Insurance Amount (PIA) 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
[[Page 66115]]
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 2012, we multiply each of the 1979
bend-point amounts by the ratio of the national average wage index for
2010 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 2010 ($41,673.83) to that
for 1977 ($9,779.44) produces the amounts of $767.05 and $4,623.59. We
round these to $767 and $4,624. Accordingly, the portions of the AIME
to be used in 2012 are the first $767, the amount between $767 and
$4,624, and the amount over $4,624.
Consequently, for individuals who first become eligible for old-age
insurance benefits or disability insurance benefits in 2012, or who die
in 2012 before becoming eligible for benefits, their PIA will be the
sum of:
(a) 90 percent of the first $767 of their AIME, plus.
(b) 32 percent of their AIME over $767 and through $4,624, plus.
(c) 15 percent of their AIME over $4,624.
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 2012, we multiply each of the 1979
bend-point amounts by the ratio of the national average wage index for
2010 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 2010 ($41,673.83) to that for 1977
($9,779.44) produces the amounts of $980.12, $1,414.78, and $1,845.17.
We round these amounts to $980, $1,415, and $1,845. Accordingly, the
portions of the PIAs to be used in 2012 are the first $980, the amount
between $980 and $1,415, the amount between $1,415 and $1,845, and the
amount over $1,845.
Consequently, for the family of a worker who becomes age 62 or dies
in 2012 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 $980 of the worker's PIA, plus.
(b) 272 percent of the worker's PIA over $980 through $1,415, plus.
(c) 134 percent of the worker's PIA over $1,415 through $1,845,
plus.
(d) 175 percent of the worker's PIA over $1,845.
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.
Quarter of Coverage Amount
General
The amount of earnings required for a quarter of coverage in 2012
is $1,130. 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
2012 is the larger of (1) The 1978 amount of $250 multiplied by the
ratio of the national average wage index for 2010 to that for 1976; or
(2) the current amount of $1,120. 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 2010 ($41,673.83) to that for
1976 ($9,226.48) produces the amount of $1,129.19. We then round this
amount to $1,130. Because $1,130 exceeds the current amount of $1,120,
the quarter of coverage amount is $1,130 for 2012.
``Old-Law'' Contribution and Benefit Base
General
The ``old-law'' contribution and benefit base for 2012 is $81,900.
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
[[Page 66116]]
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 2010 to that for 1992; or (2) the
current ``old-law'' base ($79,200). 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
2010 ($41,673.83) to that for 1992 ($22,935.42) produces the amount of
$81,765.34. We round this amount to $81,900. Because $81,900 exceeds
the current amount of $79,200, the ``old-law'' contribution and benefit
base is $81,900 for 2012.
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 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 2012 is the larger of: (1) Such amount for 1994 multiplied
by the ratio of the national average wage index for 2010 to that for
1992; or (2) such amount for 2011. The monthly SGA amount for non-blind
disabled individuals for 2012 is the larger of: (1) Such amount for
2000 multiplied by the ratio of the national average wage index for
2010 to that for 1998; or (2) such amount for 2011. 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
2010 ($41,673.83) to that for 1992 ($22,935.42) produces the amount of
$1,689.82. We then round this amount to $1,690. Because $1,690 exceeds
the current amount of $1,640, the monthly SGA amount for statutorily
blind individuals is $1,690 for 2012.
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 2010
($41,673.83) to that for 1998 ($28,861.44) produces the amount of
$1,010.75. We then round this amount to $1,010. Because $1,010 exceeds
the current amount of $1,000, the monthly SGA amount for non-blind
disabled individuals is $1,010 for 2012.
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 2012, any month in which earnings exceed $720
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 2012, 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 2010 to that for 1999 or, if larger, such amount for
2011. 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 2010 ($41,673.83) to that for
1999 ($30,469.84) produces the amount of $724.88. We then round this
amount to $720. Because $720 equals the current amount of $720, the
monthly earnings threshold is $720 for 2012.
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 2012, this threshold is $1,800.
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 2012 is equal to the 1995 amount of $1,000 multiplied by the ratio
of the national average wage index for 2010 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 2010
($41,673.83) to that for 1993 ($23,132.67) produces the amount of
$1,801.51. We then round this amount to $1,800. Accordingly, the
domestic employee coverage threshold amount is $1,800 for 2012.
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 2012, this threshold is $1,500. 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 2012 is equal to the 1999 amount of
$1,000 multiplied by the ratio of the national average wage index for
2010 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
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the ratio of the national average wage index for 2010 ($41,673.83) to
that for 1997 ($27,426.00) produces the amount of $1,519.50. We then
round this amount to $1,500. Accordingly, the election worker coverage
threshold amount is $1,500 for 2012.
(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)
Michael J. Astrue,
Commissioner of Social Security.
[FR Doc. 2011-27496 Filed 10-24-11; 8:45 am]
BILLING CODE 4191-02-P
