Cost-of-Living Increase and Other Determinations for 2022, 58715-58721 [2021-23031]
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Federal Register / Vol. 86, No. 202 / Friday, October 22, 2021 / Notices
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed
rule change pursuant to Section
19(b)(3)(A)(iii) of the Act 17 and Rule
19b–4(f)(6) thereunder.18 Because the
proposed rule change does not (i)
significantly affect the protection of
investors or the public interest; (ii)
impose any significant burden on
competition; and (iii) become operative
for 30 days from the date on which it
was filed, or such shorter time as the
Commission may designate if consistent
with the protection of investors and the
public interest, the proposed rule
change has become effective pursuant to
Section 19(b)(3)(A) of the Act 19 and
Rule 19b–4(f)(6)(iii) thereunder.20
A proposed rule change filed under
Rule 19b–4(f)(6) 21 normally does not
become operative prior to 30 days after
the date of the filing. However, pursuant
to Rule 19b–4(f)(6)(iii),22 the
Commission may designate a shorter
time if such action is consistent with the
protection of investors and the public
interest. The Exchange asked that the
Commission waive the 30 day operative
delay so that the proposal may become
operative immediately upon filing.
Extending the Pilot Rules’ effectiveness
to the close of business on March 18,
2022 will extend the protections
provided by the Pilot Rules, which
would otherwise expire in less than 30
days. Waiver of the operative delay
would therefore permit uninterrupted
continuation of the MWCB pilot while
the Commission reviews the NYSE’s
proposed rule change to make the Pilot
Rules permanent. Therefore, the
Commission hereby waives the 30-day
operative delay and designates the
proposed rule change as operative upon
filing.23
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
17 15
U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b-4(f)(6).
19 15 U.S.C. 78s(b)(3)(A).
20 17 CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6) requires a self-regulatory organization to give
the Commission written notice of its intent to file
the proposed rule change at least five business days
prior to the date of filing of the proposed rule
change, or such shorter time as designated by the
Commission. The Commission has waived this
requirement.
21 17 CFR 240.19b–4(f)(6).
22 17 CFR 240.19b–4(f)(6)(iii).
23 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).
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action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
LTSE–2021–06 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–LTSE–2021–06. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549 on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of the
filing also will be available for
inspection and copying at the principal
office of LTSE and on its internet
website at https://longterm
stockexchange.com/.
All comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
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58715
submissions should refer to File
Number SR–LTSE–2021–06 and should
be submitted on or before November 12,
2021.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.24
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021–23024 Filed 10–21–21; 8:45 am]
BILLING CODE 8011–01–P
SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA–2021–0033]
Cost-of-Living Increase and Other
Determinations for 2022
Social Security Administration.
Notice.
AGENCY:
ACTION:
Under title II of the Social
Security Act (Act), there will be a 5.9
percent cost-of-living increase in Social
Security benefits effective December
2021. In addition, the national average
wage index for 2020 is $55,628.60. The
cost-of-living increase and national
average wage index affect other program
parameters as described below.
FOR FURTHER INFORMATION CONTACT:
Kathleen K. Sutton, Office of the Chief
Actuary, Social Security
Administration, 6401 Security
Boulevard, Baltimore, MD 21235, (410)
965–3000. Information relating to this
announcement is available on our
internet site at www.socialsecurity.gov/
oact/cola/. For information
on eligibility or claiming benefits, call
1–800–772–1213 (TTY 1–800–325–
0778), or visit our internet site at
www.socialsecurity.gov online.
SUPPLEMENTARY INFORMATION: Because of
the 5.9 percent cost-of-living increase,
the following items will increase for
2022;
(1) The maximum Federal
Supplemental Security Income (SSI)
monthly payment amounts for 2022
under title XVI of the Act will be $841
for an eligible individual, $1,261 for an
eligible individual with an eligible
spouse, and $421 for an essential
person;
(2) The special benefit amount under
title VIII of the Act for certain World
War II veterans will be $630.75 for 2022;
(3) The student earned income
exclusion under title XVI of the Act will
be $2,040 per month in 2022, but not
more than $8,230 for all of 2022;
(4) The dollar fee limit for services
performed as a representative payee will
be $48 per month ($89 per month in the
SUMMARY:
24 17
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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 2022;
and
(5) The dollar limit on the
administrative-cost fee assessment
charged to an appointed representative
such as an attorney, agent, or other
person who represents claimants will be
$104 beginning in December 2021.
The national average wage index for
2020 is $55,628.60. This index affects
the following amounts:
(1) The Old-Age, Survivors, and
Disability Insurance (OASDI)
contribution and benefit base will be
$147,000 for remuneration paid in 2022
and self-employment income earned in
taxable years beginning in 2022;
(2) The monthly exempt amounts
under the OASDI retirement earnings
test for taxable years ending in calendar
year 2022 will be $1,630 for
beneficiaries who will attain their
Normal Retirement Age (NRA) (defined
in the Retirement Earnings Test Exempt
Amounts section below) after 2022 and
$4,330 for those who attain NRA in
2022;
(3) The dollar amounts (bend points)
used in the primary insurance amount
(PIA) formula for workers who become
eligible for benefits, or who die before
becoming eligible, in 2022 will be
$1,024 and $6,172;
(4) The bend points used in the
formula for computing maximum family
benefits for workers who become
eligible for retirement benefits, or who
die before becoming eligible, in 2022
will be $1,308, $1,889, and $2,463;
(5) The taxable earnings a person
must have to be credited with a quarter
of coverage in 2022 will be $1,510;
(6) The ‘‘old-law’’ contribution and
benefit base under title II of the Act will
be $109,200 for 2022;
(7) The monthly amount deemed to
constitute substantial gainful activity
(SGA) for statutorily blind persons in
2022 will be $2,260. The corresponding
amount for non-blind disabled persons
will be $1,350;
(8) The earnings threshold
establishing a month as a part of a trial
work period will be $970 for 2022; and
(9) Coverage thresholds for 2022 will
be $2,400 for domestic workers and
$2,000 for election officials and election
workers.
According to section 215(i)(2)(D) of
the Act, we must publish the benefit
increase percentage and the revised
table of ‘‘special minimum’’ benefits
within 45 days after the close of the
third calendar quarter of 2021. We must
also publish the following by November
1: The national average wage index for
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2020 (215(a)(1)(D)), the OASDI fund
ratio for 2021 (section 215(i)(2)(C)(ii)),
the OASDI contribution and benefit base
for 2022 (section 230(a)), the earnings
required to be credited with a quarter of
coverage in 2022 (section 213(d)(2)), the
monthly exempt amounts under the
Social Security retirement earnings test
for 2022 (section 203(f)(8)(A)), the
formula for computing a PIA for workers
who first become eligible for benefits or
die in 2022 (section 215(a)(1)(D)), and
the formula for computing the
maximum benefits payable to the family
of a worker who first becomes eligible
for old-age benefits or dies in 2022
(section 203(a)(2)(C)).
Cost-of-Living Increases
General
The cost-of-living increase is 5.9
percent for monthly benefits under title
II and for monthly payments under title
XVI of the Act. Under title II, OASDI
monthly benefits will increase by 5.9
percent for individuals eligible for
December 2021 benefits, payable in
January 2022 and thereafter. We base
this increase on the authority contained
in section 215(i) of the Act.
Pursuant to section 1617 of the Act,
Federal SSI benefit rates will also
increase by 5.9 percent effective for
payments made for January 2022 but
paid on December 30, 2021.
Computation
Computation of the cost-of-living
increase is based on an increase in a
Consumer Price Index produced by the
Bureau of Labor Statistics. At the time
the Act was amended to provide
automatic cost-of-living increases
starting in 1975, only one Consumer
Price Index existed, namely the
Consumer Price Index for Urban Wage
Earners and Clerical Workers. Although
the Bureau of Labor Statistics has since
developed other consumer price
indices, we follow precedent by
continuing to use the Consumer Price
Index for Urban Wage Earners and
Clerical Workers. We refer to this index
in the following paragraphs as the CPI.
Section 215(i)(1)(B) of the Act defines
a ‘‘computation quarter’’ to be a third
calendar quarter in which the average
CPI 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 2020, was based on the
CPI increase from the third quarter of
2019 to the third quarter of 2020.
Therefore, the last computation quarter
is the third quarter of 2020. The law
states that a cost-of-living increase for
benefits is determined based on the
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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 2020
to the third quarter of 2021.
Section 215(i)(1) of the Act states 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 each
month in the quarter ending September
30, 2020, the last computation quarter,
is: For July 2020, 252.636; for August
2020, 253.597; and for September 2020,
254.004. The arithmetic mean for the
calendar quarter ending September 30,
2020 is 253.412. The CPI for each month
in the quarter ending September 30,
2021, is: For July 2021, 267.789; for
August 2021, 268.387; and for
September 2021, 269.086. The
arithmetic mean for the calendar quarter
ending September 30, 2021 is 268.421.
The CPI for the calendar quarter ending
September 30, 2021, exceeds that for the
calendar quarter ending September 30,
2020, by 5.9 percent (rounded to the
nearest 0.1). Therefore, beginning
December 2021 a cost-of-living benefit
increase of 5.9 percent is effective for
benefits under title II of the Act.
Section 215(i) also specifies that a
benefit increase under title II, effective
for December of any year, will be
limited to the increase in the national
average wage index for the prior year if
the OASDI fund ratio for that year is
below 20.0 percent. The OASDI fund
ratio for a year is the ratio of the
combined assets of the OASDI Trust
Funds at the beginning of that year to
the combined expenditures of these
funds during that year. For 2021, the
OASDI fund ratio is assets of $2,908,286
million divided by estimated
expenditures of $1,146,226 million, or
253.7 percent. Because the 253.7
percent OASDI fund ratio exceeds 20.0
percent, the benefit increase for
December 2021 is not limited to the
increase in the national average wage
index.
Program Amounts That Change Based
on the Cost-of-Living Increase
The following program amounts
change based on the cost-of-living
increase: (1) Title II benefits; (2) title
XVI payments; (3) title VIII benefits; (4)
the student earned income exclusion;
(5) the fee for services performed by a
representative payee; and (6) the
appointed representative fee
assessment.
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Title II Benefit Amounts
In accordance with section 215(i) of
the Act, for workers and family
members for whom eligibility for
benefits (that is, the worker’s attainment
of age 62, or disability or death before
age 62) occurred before 2022, benefits
will increase by 5.9 percent beginning
with benefits for December 2021, which
are payable in January 2022. For those
first eligible after 2021, the 5.9 percent
increase will not apply.
For eligibility after 1978, we
determine benefits using a 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 using a benefit
table. The table is available on the
internet at www.socialsecurity.gov/oact/
ProgData/tableForm.html or by writing
to: Social Security Administration,
Office of Public Inquiries, Windsor Park
Building, 6401 Security Boulevard,
Baltimore, MD 21235.
Section 215(i)(2)(D) of the Act
requires that, when we determine an
increase in Social Security benefits, we
will publish in the Federal Register a
revision of the range of the PIAs and
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 low earnings. To qualify for
these 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 maximum
family benefit amounts after the 5.9
percent benefit increase.
SPECIAL MINIMUM PIAS AND MAXIMUM
FAMILY BENEFITS PAYABLE FOR DECEMBER 2021
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Number of
years of
coverage
11
12
13
14
15
16
17
18
19
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..............................
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Maximum
family
benefit
PIA
$45.50
93.10
140.90
188.30
235.60
283.60
331.20
378.80
426.40
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$69.40
141.10
212.80
284.00
355.10
426.80
498.80
569.90
641.50
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SPECIAL MINIMUM PIAS AND MAXIMUM college, university, or a course of
FAMILY BENEFITS PAYABLE FOR DE- vocational or technical training can
have limited earnings that do not count
CEMBER 2021—Continued
Number of
years of
coverage
20
21
22
23
24
25
26
27
28
29
30
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
..............................
PIA
474.30
521.90
569.20
617.70
665.20
712.40
760.90
807.90
855.50
903.30
950.80
Maximum
family
benefit
712.40
784.70
855.70
928.50
999.20
1,070.20
1,142.70
1,214.10
1,285.20
1,357.30
1,427.90
Title XVI Payment Amounts
In accordance with section 1617 of
the Act, the Federal benefit rates used
in computing Federal SSI payments for
the aged, blind, and disabled will
increase by 5.9 percent effective January
2022. For 2021, we derived the monthly
payment amounts for an eligible
individual, an eligible individual with
an eligible spouse, and for an essential
person—$794, $1,191, and $397,
respectively—from yearly, unrounded
Federal SSI payment amounts of
$9,530.12, $14,293.61, and $4,775.99.
For 2022, these yearly unrounded
amounts respectively increase by 5.9
percent to $10,092.40, $15,136.93, and
$5,057.77. We must round each of these
resulting amounts, when not a multiple
of $12, to the next lower multiple of
$12. Therefore, the annual amounts,
effective for 2022, are $10,092, $15,132,
and $5,052. Dividing the yearly amounts
by 12 gives the respective monthly
amounts for 2022—$841, $1,261, and
$421. For 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 who reside outside the United
States. Section 805 of the Act 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.’’ Therefore, the monthly
benefit for 2022 under this provision is
75 percent of $841, or $630.75.
Student Earned Income Exclusion
A blind or disabled child who is a
student regularly attending school,
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against his or her SSI payments. The
maximum amount of such income that
we may exclude in 2021 is $1,930 per
month, but not more than $7,770 in all
of 2021. 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 2022, we
increase the unrounded amount for
2021 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 2021 is $1,928.19.
We increase this amount by 5.9 percent
to $2,041.95, which we then round to
$2,040. Similarly, we increase the
unrounded yearly amount for 2021,
$7,772.50, by 5.9 percent to $8,231.08
and round this to $8,230. Therefore, the
maximum amount of the income
exclusion applicable to a student in
2022 is $2,040 per month but not more
than $8,230 in all of 2022.
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 a
monthly fee from a beneficiary for
expenses incurred in providing services
as the beneficiary’s representative
payee. In 2021, the fee is limited to the
lesser of: (1) 10 percent of the monthly
benefit involved; or (2) $45 each month
($84 each month when 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.
Therefore, we increase the current
amounts by 5.9 percent to $48 and $89
for 2022.
Appointed Representative Fee
Assessment
Under sections 206(d) and 1631(d) of
the Act, whenever we pay a fee to a
representative such as an attorney,
agent, or other person who represents
claimants, we must impose on the
representative an assessment to cover
administrative costs. The assessment is
no more than 6.3 percent of the
representative’s authorized fee or, if
lower, a dollar amount that is subject to
increase by the cost-of-living increase.
We derive the dollar limit for December
2021 by increasing the unrounded limit
for December 2020, $98.71, by 5.9
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percent, which is $104.53. We then
round $104.53 to the next lower
multiple of $1. The dollar limit effective
for December 2021 is, therefore, $104.
National Average Wage Index for 2020
Computation
We determined the national average
wage index for calendar year 2020 based
on the 2019 national average wage index
of $54,099.99, published in the Federal
Register on October 22, 2020 (85 FR
67413), and the percentage increase in
average wages from 2019 to 2020, 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 from these data were
$51,916.27 for 2019 and $53,383.18 for
2020. To determine the national average
wage index for 2020 at a level consistent
with the national average wage indexing
series for 1951 through 1977 (published
December 29, 1978, at 43 FR 61016), we
multiply the 2019 national average wage
index of $54,099.99 by the percentage
increase in average wages from 2019 to
2020 (based on SSA-tabulated wage
data) as follows. We round the result to
the nearest cent.
National Average Wage Index Amount
Multiplying the national average wage
index for 2019 ($54,099.99) by the ratio
of the average wage for 2020
($53,383.18) to that for 2019
($51,916.27) produces the 2020 index,
$55,628.60. The national average wage
index for calendar year 2020 is about
2.83 percent higher than the 2019 index.
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Program Amounts That Change Based
on the National Average Wage Index
Under 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
formula; (4) the bend points in the
maximum family benefit formula; (5)
the earnings required to credit a worker
with a quarter of coverage; (6) the oldlaw contribution and benefit base (as
determined under section 230 of the Act
as in effect before the 1977
amendments); (7) the substantial gainful
activity (SGA) amount applicable to
statutorily blind individuals; and (8) the
coverage threshold for election officials
and election workers. Additionally,
under section 3121(x) of the Internal
Revenue Code, the domestic employee
coverage threshold is based on changes
in the national average wage index.
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Two amounts also increase under
regulatory requirements—the SGA
amount applicable to non-blind
disabled persons, and the monthly
earnings threshold that establishes a
month as part of a trial work period for
disabled beneficiaries.
OASDI Contribution and Benefit Base
General
The OASDI contribution and benefit
base is $147,000 for remuneration paid
in 2022 and self-employment income
earned in taxable years beginning in
2022. The OASDI contribution and
benefit base serves as the maximum
annual earnings on which OASDI taxes
are paid. It is also the maximum annual
earnings used in determining a person’s
OASDI benefits.
amounts are exactly 12 times the
monthly amounts.
For beneficiaries who attain NRA in
the year, we withhold $1 in benefits for
every $3 of earnings over the annual
exempt amount for months before NRA.
For all other beneficiaries under NRA,
we withhold $1 in benefits for every $2
of earnings over the annual exempt
amount.
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 2022 is the larger
of: (1) The 1994 base of $60,600
multiplied by the ratio of the national
average wage index for 2020 to that for
1992; or (2) the current base ($142,800).
If the resulting amount is not a multiple
of $300, we round it to the nearest
multiple of $300.
Computation
Under the formula that applies to
beneficiaries attaining NRA after 2022,
the lower monthly exempt amount for
2022 is the larger of: (1) The 1994
monthly exempt amount multiplied by
the ratio of the national average wage
index for 2020 to that for 1992; or (2) the
2021 monthly exempt amount ($1,580).
If the resulting amount is not a multiple
of $10, we round it to the nearest
multiple of $10.
Under the formula that applies to
beneficiaries attaining NRA in 2022, the
higher monthly exempt amount for 2022
is the larger of: (1) The 2002 monthly
exempt amount multiplied by the ratio
of the national average wage index for
2020 to that for 2000; or (2) the 2021
monthly exempt amount ($4,210). If the
resulting amount is not a multiple of
$10, we round it to the nearest multiple
of $10.
OASDI Contribution and Benefit Base
Amount
Multiplying the 1994 OASDI
contribution and benefit base ($60,600)
by the ratio of the national average wage
index for 2020 ($55,628.60 as
determined above) to that for 1992
($22,935.42) produces $146,981.97. We
round this amount to $147,000. Because
$147,000 exceeds the current base
amount of $142,800, the OASDI
contribution and benefit base is
$147,000 for 2022.
Lower Exempt Amount
Multiplying the 1994 retirement
earnings test monthly exempt amount of
$670 by the ratio of the national average
wage index for 2020 ($55,628.60) to that
for 1992 ($22,935.42) produces
$1,625.05. We round this to $1,630.
Because $1,630 exceeds the current
exempt amount of $1,580, the lower
retirement earnings test monthly exempt
amount is $1,630 for 2022. The lower
annual exempt amount is $19,560 under
the retirement earnings test.
Retirement Earnings Test Exempt
Amounts
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 2020
($55,628.60) to that for 2000
($32,154.82) produces $4,325.06. We
round this to $4,330. Because $4,330
exceeds the current exempt amount of
$4,210, the higher retirement earnings
test monthly exempt amount is $4,330
for 2022. The higher annual exempt
amount is $51,960 under the retirement
earnings test.
General
We withhold Social Security benefits
when a beneficiary under the NRA has
earnings over the applicable retirement
earnings test exempt amount. The NRA
is the age when retirement benefits
(before rounding) are equal to the PIA.
The NRA is age 66 for those born in
1943–54, and it gradually increases to
age 67 for those born in 1960 or later.
A higher exempt amount applies in the
year in which a person attains NRA, but
only for earnings in months before such
attainment. A lower exempt amount
applies at all other ages below NRA.
Section 203(f)(8)(B) of the Act provides
formulas for determining the monthly
exempt amounts. The annual exempt
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Primary Insurance Amount Formula
General
The Social Security Amendments of
1977 provided a method for computing
benefits that generally applies when a
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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 formula each year to
reflect changes in general wage levels,
as measured by the national average
wage index.
We also adjust, or index, a worker’s
earnings to reflect the change in the
general wage levels that occurred during
the worker’s years of employment. Such
indexing ensures that a worker’s future
benefit level will reflect the general rise
in the standard of living that will occur
during his or her working lifetime. To
compute the AIME, we first determine
the required number of years of
earnings. We then select the number of
years with the highest indexed earnings,
add the indexed earnings for those
years, and divide the total amount by
the total number of months in those
years. We then round the resulting
average amount down to the next lower
dollar amount. The result is the AIME.
Computing the PIA
The PIA is the sum of three separate
percentages of portions of the AIME. In
1979 (the first year the formula was in
effect), these portions were the first
$180, the amount between $180 and
$1,085, and the amount over $1,085. We
call the dollar amounts in the formula
governing the portions of the AIME the
bend points of the formula. Therefore,
the bend points for 1979 were $180 and
$1,085.
To obtain the bend points for 2022,
we multiply each of the 1979 bendpoint amounts by the ratio of the
national average wage index for 2020 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 2020
($55,628.60) to that for 1977 ($9,779.44)
produces the amounts of $1,023.90 and
$6,171.83. We round these to $1,024
and $6,172. Therefore, the portions of
the AIME to be used in 2022 are the first
$1,024, the amount between $1,024 and
$6,172, and the amount over $6,172.
Therefore, for individuals who first
become eligible for old-age insurance
benefits or disability insurance benefits
in 2022, or who die in 2022 before
becoming eligible for benefits, their PIA
will be the sum of:
(a) 90 percent of the first $1,024 of
their AIME, plus
(b) 32 percent of their AIME over
$1,024 and through $6,172, plus
(c) 15 percent of their AIME over
$6,172.
We round this amount to the next
lower multiple of $0.10 if it is not
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already a multiple of $0.10. This
formula and the rounding adjustment
are stated in section 215(a) of the Act.
Maximum Benefits Payable to a Family
General
The 1977 amendments continued the
policy of limiting the total monthly
benefits that a worker’s family may
receive based on the worker’s PIA.
Those amendments also continued the
relationship between maximum family
benefits and PIAs but changed the
method of computing the maximum
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 2022,
we multiply each of the 1979 bendpoint amounts by the ratio of the
national average wage index for 2020 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 2020
($55,628.60) to that for 1977 ($9,779.44)
produces the amounts of $1,308.31,
$1,888.52, and $2,463.04. We round
these amounts to $1,308, $1,889, and
$2,463. Therefore, the portions of the
PIAs to be used in 2022 are the first
$1,308, the amount between $1,308 and
$1,889, the amount between $1,889 and
$2,463, and the amount over $2,463.
Thus, for the family of a worker who
becomes age 62 or dies in 2022 before
age 62, we will compute the total
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58719
benefits payable to them so that it does
not exceed:
(a) 150 percent of the first $1,308 of
the worker’s PIA, plus
(b) 272 percent of the worker’s PIA
over $1,308 through $1,889, plus
(c) 134 percent of the worker’s PIA
over $1,889 through $2,463, plus
(d) 175 percent of the worker’s PIA
over $2,463.
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
are stated in section 203(a) of the Act.
Quarter of Coverage Amount
General
The earnings required for a quarter of
coverage in 2022 is $1,510. A quarter of
coverage is the basic unit for
determining if 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 yearly
instead of quarterly. With the change to
yearly 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. The amendment
also provided a formula for years after
1978.
Computation
Under the prescribed formula, the
quarter of coverage amount for 2022 is
the larger of: (1) The 1978 amount of
$250 multiplied by the ratio of the
national average wage index for 2020 to
that for 1976; or (2) the current amount
of $1,470. Section 213(d) provides that
if the resulting amount is not a multiple
of $10, we round it 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
2020 ($55,628.60) to that for 1976
($9,226.48) produces $1,507.31. We
then round this amount to $1,510.
Because $1,510 exceeds the current
amount of $1,470, the quarter of
coverage amount is $1,510 for 2022.
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Old-Law Contribution and Benefit Base
General
The old-law contribution and benefit
base for 2022 is $109,200. This base
would have been effective under the Act
without the enactment of the 1977
amendments.
The old-law contribution and benefit
base is used by:
(a) The Railroad Retirement program
to determine certain tax liabilities and
tier II benefits payable under that
program to supplement the tier I
payments that correspond to basic
Social Security benefits,
(b) the Pension Benefit Guaranty
Corporation to determine the maximum
amount of pension guaranteed under the
Employee Retirement Income Security
Act (section 230(d) of the Act),
(c) Social Security to determine a year
of coverage in computing the special
minimum benefit, as described earlier,
and
(d) Social Security to determine a year
of coverage (acquired whenever
earnings equal or exceed 25 percent of
the old-law base for this purpose only)
in computing benefits for persons who
are also eligible to receive pensions
based on employment not covered
under section 210 of the Act.
Computation
The old-law contribution and benefit
base is the larger of: (1) The 1994 oldlaw base ($45,000) multiplied by the
ratio of the national average wage index
for 2020 to that for 1992; or (2) the
current old-law base ($106,200). If the
resulting amount is not a multiple of
$300, we round it to the nearest
multiple of $300.
Old-Law Contribution and Benefit Base
Amount
Multiplying the 1994 old-law
contribution and benefit base ($45,000)
by the ratio of the national average wage
index for 2020 ($55,628.60) to that for
1992 ($22,935.42) produces
$109,145.03. We round this amount to
$109,200. Because $109,200 exceeds the
current amount of $106,200, the old-law
contribution and benefit base is
$109,200 for 2022.
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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 SGA. A
person who is earning more than a
certain monthly amount is ordinarily
considered to be engaging in SGA. The
monthly earnings considered as SGA
depends on the nature of a person’s
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disability. Section 223(d)(4)(A) of the
Act specifies the SGA amount for
statutorily blind individuals under title
II while our regulations (20 CFR
404.1574 and 416.974) specify the SGA
amount for non-blind individuals.
Computation
The monthly SGA amount for
statutorily blind individuals under title
II for 2022 is the larger of: (1) The
amount for 1994 multiplied by the ratio
of the national average wage index for
2020 to that for 1992; or (2) the amount
for 2021. The monthly SGA amount for
non-blind disabled individuals for 2022
is the larger of: (1) The amount for 2000
multiplied by the ratio of the national
average wage index for 2020 to that for
1998; or (2) the amount for 2021. In
either case, if the resulting amount is
not a multiple of $10, we round it 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 2020
($55,628.60) to that for 1992
($22,935.42) produces $2,255.66. We
then round this amount to $2,260.
Because $2,260 exceeds the current
amount of $2,190, the monthly SGA
amount for statutorily blind individuals
is $2,260 for 2022.
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 2020 ($55,628.60) to that for
1998 ($28,861.44) produces $1,349.21.
We then round this amount to $1,350.
Because $1,350 exceeds the current
amount of $1,310, the monthly SGA
amount for non-blind disabled
individuals is $1,350 for 2022.
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 2022, any
month in which earnings exceed $970 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).
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Monthly earnings in 2022, used to
determine whether a month is part of a
trial work period, is the larger of: (1)
The amount for 2001 ($530) multiplied
by the ratio of the national average wage
index for 2020 to that for 1999; or (2) the
amount for 2021. If the resulting amount
is not a multiple of $10, we round it to
the nearest multiple of $10.
Trial Work Period Earnings Threshold
Amount
Multiplying the 2001 monthly
earnings threshold ($530) by the ratio of
the national average wage index for
2020 ($55,628.60) to that for 1999
($30,469.84) produces $967.62. We then
round this amount to $970. Because
$970 exceeds the current amount of
$940, the monthly earnings threshold is
$970 for 2022.
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 2022, this
threshold is $2,400. Section 3121(x) of
the Internal Revenue Code provides the
formula for increasing the threshold.
Computation
Under the formula, the domestic
employee coverage threshold for 2022 is
equal to the 1995 amount of $1,000
multiplied by the ratio of the national
average wage index for 2020 to that for
1993. If the resulting amount is not a
multiple of $100, we round it to the next
lower multiple of $100.
Domestic Employee Coverage Threshold
Amount
Multiplying the 1995 domestic
employee coverage threshold ($1,000)
by the ratio of the national average wage
index for 2020 ($55,628.60) to that for
1993 ($23,132.67) produces $2,404.76.
We then round this amount to $2,400.
Therefore, the domestic employee
coverage threshold amount is $2,400 for
2022.
Election Official and Election Worker
Coverage Threshold
General
The minimum amount an election
official and election worker must earn
so the earnings are covered under Social
Security or Medicare is the election
official and election worker coverage
threshold. For 2022, this threshold is
$2,000. Section 218(c)(8)(B) of the Act
provides the formula for increasing the
threshold.
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Computation
Under the formula, the election
official and election worker coverage
threshold for 2022 is equal to the 1999
amount of $1,000 multiplied by the ratio
of the national average wage index for
2020 to that for 1997. If the amount we
determine is not a multiple of $100, we
round it to the nearest multiple of $100.
Election Official and Election Worker
Coverage Threshold Amount
Multiplying the 1999 coverage
threshold amount ($1,000) by the ratio
of the national average wage index for
2020 ($55,628.60) to that for 1997
($27,426.00) produces $2,028.32. We
then round this amount to $2,000.
Therefore, the election official and
election worker coverage threshold
amount is $2,000 for 2022.
(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)
The Acting Commissioner of the
Social Security Administration, Kilolo
Kijakazi, having reviewed and approved
this document, is delegating the
authority to electronically sign this
document to Faye I. Lipsky, who is the
primary Federal Register Liaison for
SSA, for purposes of publication in the
Federal Register.
Faye I. Lipsky,
Federal Register Liaison, Office of Legislation
and Congressional Affairs, Social Security
Administration.
[FR Doc. 2021–23031 Filed 10–21–21; 8:45 am]
BILLING CODE 4191–02–P
SURFACE TRANSPORTATION BOARD
[Docket No. FD 36547]
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BNSF Railway Company—Trackage
Rights Exemption—Union Pacific
Railroad Company
BNSF Railway Company (BNSF), a
Class I rail carrier, has filed a verified
notice of exemption under 49 CFR
1180.2(d)(7) for overhead trackage rights
over a rail line owned by Union Pacific
Railroad Company (UP), specifically,
UP’s Jefferson City Subdivision,
between milepost 34.66 near Pacific,
Mo., and milepost 46.22 near Labadie,
Mo. (the Line).
Pursuant to a written trackage rights
agreement,1 UP has agreed to grant
1A
redacted version of the draft trackage rights
agreement between UP and BNSF was filed with the
verified notice. An unredacted version of the
agreement was submitted to the Board under seal
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overhead trackage rights to BNSF over
the Line. According to the verified
notice, the agreement is pursuant to the
Restated and Amended BNSF
Settlement Agreement (RASA) between
BNSF and UP in connection with the
transaction authorized in Union Pacific
Corp.—Control & Merger—Southern
Pacific Rail Corp., FD 32760, Decision
No. 44 (STB served Aug. 12, 1996). The
purpose of this transaction is to allow
BNSF to serve Ameren Corporation’s
facility at Labadie as well as the right to
serve all ‘‘2-to-1’’ Shipper Facilities,
New Shipper Facilities, and Existing
Transload Facilities at Labadie as those
terms are defined in the RASA.
The transaction may be consummated
on November 6, 2021, the effective date
of the exemption (30 days after the
verified notice was filed).
As a condition to this exemption, any
employees affected by the acquisition of
the trackage rights will be protected by
the conditions imposed in Norfolk &
Western Railway—Trackage Rights—
Burlington Northern, Inc., 354 I.C.C. 605
(1978), as modified in Mendocino Coast
Railway—Lease & Operate—California
Western Railroad, 360 I.C.C. 653 (1980).
If the notice contains false or
misleading information, the exemption
is void ab initio. Petitions to revoke the
exemption under 49 U.S.C. 10502(d)
may be filed at any time. The filing of
a petition to revoke will not
automatically stay the effectiveness of
the exemption. Petitions for stay must
be filed by October 29, 2021 (at least
seven days before the exemption
becomes effective).
All pleadings, referring to Docket No.
FD 36547, should be filed with the
Surface Transportation Board via efiling on the Board’s website. In
addition, a copy of each pleading must
be served on BNSF’s representative,
Peter W. Denton, Steptoe & Johnson
LLP, 1330 Connecticut Avenue NW,
Washington, DC 20036.
According to BNSF, this action is
categorically excluded from
environmental review under 49 CFR
1105.6(c)(3) and from historic
preservation reporting requirements
under 49 CFR 1105.8(b)(3).
Board decisions and notices are
available at www.stb.gov.
Decided: October 19, 2021.
concurrently with a motion for protective order,
which was granted on October 14, 2021. BNSF
states that it will submit an executed copy of the
agreement within 10 days of its execution, pursuant
to 49 CFR 1180.6(a)(7)(ii).
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58721
By the Board, Scott M. Zimmerman, Acting
Director, Office of Proceedings.
Eden Besera,
Clearance Clerk.
[FR Doc. 2021–23071 Filed 10–21–21; 8:45 am]
BILLING CODE 4915–01–P
DEPARTMENT OF TRANSPORTATION
Federal Railroad Administration
[Docket No. FRA–2021–0006–N–14]
Proposed Agency Information
Collection Activities; Comment
Request
Federal Railroad
Administration (FRA), U.S. Department
of Transportation (DOT).
ACTION: Notice of information collection;
request for comment.
AGENCY:
Under the Paperwork
Reduction Act of 1995 (PRA) and its
implementing regulations, FRA seeks
approval of the Information Collection
Request (ICR) abstracted below. Before
submitting this ICR to the Office of
Management and Budget (OMB) for
approval, FRA is soliciting public
comment on specific aspects of the
activities identified in the ICR.
DATES: Interested persons are invited to
submit comments on or before
December 21, 2021].
ADDRESSES: Written comments and
recommendations for the proposed ICR
should be submitted on regulations.gov
to the docket, Docket No. FRA–2021–
0006. All comments received will be
posted without change to the docket,
including any personal information
provided. Please refer to the assigned
OMB control number in any
correspondence submitted. FRA will
summarize comments received in
response to this notice in a subsequent
notice and include them in its
information collection submission to
OMB for approval.
FOR FURTHER INFORMATION CONTACT: Ms.
Hodan Wells, Information Collection
Clearance Officer, at email:
hodan.wells@dot.gov or telephone: (202)
493–0440.
SUPPLEMENTARY INFORMATION: The PRA,
44 U.S.C. 3501–3520, and its
implementing regulations, 5 CFR part
1320, require Federal agencies to
provide 60-days’ notice to the public to
allow comment on information
collection activities before seeking OMB
approval of the activities. See 44 U.S.C.
3506, 3507; 5 CFR 1320.8 through
1320.12. Specifically, FRA invites
interested parties to comment on the
following ICR regarding: (1) Whether the
SUMMARY:
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]]>Agencies
[Federal Register Volume 86, Number 202 (Friday, October 22, 2021)]
[Notices]
[Pages 58715-58721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-23031]
=======================================================================
-----------------------------------------------------------------------
SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA-2021-0033]
Cost-of-Living Increase and Other Determinations for 2022
AGENCY: Social Security Administration.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: Under title II of the Social Security Act (Act), there will be
a 5.9 percent cost-of-living increase in Social Security benefits
effective December 2021. In addition, the national average wage index
for 2020 is $55,628.60. The cost-of-living increase and national
average wage index affect other program parameters as described below.
FOR FURTHER INFORMATION CONTACT: Kathleen K. Sutton, Office of the
Chief Actuary, Social Security Administration, 6401 Security Boulevard,
Baltimore, MD 21235, (410) 965-3000. Information relating to this
announcement is available on our internet site at
www.socialsecurity.gov/oact/cola/. For information on
eligibility or claiming benefits, call 1-800-772-1213 (TTY 1-800-325-
0778), or visit our internet site at www.socialsecurity.gov online.
SUPPLEMENTARY INFORMATION: Because of the 5.9 percent cost-of-living
increase, the following items will increase for 2022;
(1) The maximum Federal Supplemental Security Income (SSI) monthly
payment amounts for 2022 under title XVI of the Act will be $841 for an
eligible individual, $1,261 for an eligible individual with an eligible
spouse, and $421 for an essential person;
(2) The special benefit amount under title VIII of the Act for
certain World War II veterans will be $630.75 for 2022;
(3) The student earned income exclusion under title XVI of the Act
will be $2,040 per month in 2022, but not more than $8,230 for all of
2022;
(4) The dollar fee limit for services performed as a representative
payee will be $48 per month ($89 per month in the
[[Page 58716]]
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 2022; and
(5) The dollar limit on the administrative-cost fee assessment
charged to an appointed representative such as an attorney, agent, or
other person who represents claimants will be $104 beginning in
December 2021.
The national average wage index for 2020 is $55,628.60. This index
affects the following amounts:
(1) The Old-Age, Survivors, and Disability Insurance (OASDI)
contribution and benefit base will be $147,000 for remuneration paid in
2022 and self-employment income earned in taxable years beginning in
2022;
(2) The monthly exempt amounts under the OASDI retirement earnings
test for taxable years ending in calendar year 2022 will be $1,630 for
beneficiaries who will attain their Normal Retirement Age (NRA)
(defined in the Retirement Earnings Test Exempt Amounts section below)
after 2022 and $4,330 for those who attain NRA in 2022;
(3) The dollar amounts (bend points) used in the primary insurance
amount (PIA) formula for workers who become eligible for benefits, or
who die before becoming eligible, in 2022 will be $1,024 and $6,172;
(4) The bend points used in the formula for computing maximum
family benefits for workers who become eligible for retirement
benefits, or who die before becoming eligible, in 2022 will be $1,308,
$1,889, and $2,463;
(5) The taxable earnings a person must have to be credited with a
quarter of coverage in 2022 will be $1,510;
(6) The ``old-law'' contribution and benefit base under title II of
the Act will be $109,200 for 2022;
(7) The monthly amount deemed to constitute substantial gainful
activity (SGA) for statutorily blind persons in 2022 will be $2,260.
The corresponding amount for non-blind disabled persons will be $1,350;
(8) The earnings threshold establishing a month as a part of a
trial work period will be $970 for 2022; and
(9) Coverage thresholds for 2022 will be $2,400 for domestic
workers and $2,000 for election officials and election workers.
According to section 215(i)(2)(D) of the Act, we must publish the
benefit increase percentage and the revised table of ``special
minimum'' benefits within 45 days after the close of the third calendar
quarter of 2021. We must also publish the following by November 1: The
national average wage index for 2020 (215(a)(1)(D)), the OASDI fund
ratio for 2021 (section 215(i)(2)(C)(ii)), the OASDI contribution and
benefit base for 2022 (section 230(a)), the earnings required to be
credited with a quarter of coverage in 2022 (section 213(d)(2)), the
monthly exempt amounts under the Social Security retirement earnings
test for 2022 (section 203(f)(8)(A)), the formula for computing a PIA
for workers who first become eligible for benefits or die in 2022
(section 215(a)(1)(D)), and the formula for computing the maximum
benefits payable to the family of a worker who first becomes eligible
for old-age benefits or dies in 2022 (section 203(a)(2)(C)).
Cost-of-Living Increases
General
The cost-of-living increase is 5.9 percent for monthly benefits
under title II and for monthly payments under title XVI of the Act.
Under title II, OASDI monthly benefits will increase by 5.9 percent for
individuals eligible for December 2021 benefits, payable in January
2022 and thereafter. We base this increase on the authority contained
in section 215(i) of the Act.
Pursuant to section 1617 of the Act, Federal SSI benefit rates will
also increase by 5.9 percent effective for payments made for January
2022 but paid on December 30, 2021.
Computation
Computation of the cost-of-living increase is based on an increase
in a Consumer Price Index produced by the Bureau of Labor Statistics.
At the time the Act was amended to provide automatic cost-of-living
increases starting in 1975, only one Consumer Price Index existed,
namely the Consumer Price Index for Urban Wage Earners and Clerical
Workers. Although the Bureau of Labor Statistics has since developed
other consumer price indices, we follow precedent by continuing to use
the Consumer Price Index for Urban Wage Earners and Clerical Workers.
We refer to this index in the following paragraphs as the CPI.
Section 215(i)(1)(B) of the Act defines a ``computation quarter''
to be a third calendar quarter in which the average CPI 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 2020, was based on the CPI increase from the
third quarter of 2019 to the third quarter of 2020. Therefore, the last
computation quarter is the third quarter of 2020. The law states 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 2020 to the third
quarter of 2021.
Section 215(i)(1) of the Act states 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
each month in the quarter ending September 30, 2020, the last
computation quarter, is: For July 2020, 252.636; for August 2020,
253.597; and for September 2020, 254.004. The arithmetic mean for the
calendar quarter ending September 30, 2020 is 253.412. The CPI for each
month in the quarter ending September 30, 2021, is: For July 2021,
267.789; for August 2021, 268.387; and for September 2021, 269.086. The
arithmetic mean for the calendar quarter ending September 30, 2021 is
268.421. The CPI for the calendar quarter ending September 30, 2021,
exceeds that for the calendar quarter ending September 30, 2020, by 5.9
percent (rounded to the nearest 0.1). Therefore, beginning December
2021 a cost-of-living benefit increase of 5.9 percent is effective for
benefits under title II of the Act.
Section 215(i) also specifies that a benefit increase under title
II, effective for December of any year, will be limited to the increase
in the national average wage index for the prior year if the OASDI fund
ratio for that year is below 20.0 percent. The OASDI fund ratio for a
year is the ratio of the combined assets of the OASDI Trust Funds at
the beginning of that year to the combined expenditures of these funds
during that year. For 2021, the OASDI fund ratio is assets of
$2,908,286 million divided by estimated expenditures of $1,146,226
million, or 253.7 percent. Because the 253.7 percent OASDI fund ratio
exceeds 20.0 percent, the benefit increase for December 2021 is not
limited to the increase in the national average wage index.
Program Amounts That Change Based on the Cost-of-Living Increase
The following program amounts change based on the cost-of-living
increase: (1) Title II benefits; (2) title XVI payments; (3) title VIII
benefits; (4) the student earned income exclusion; (5) the fee for
services performed by a representative payee; and (6) the appointed
representative fee assessment.
[[Page 58717]]
Title II Benefit Amounts
In accordance with section 215(i) of the Act, for workers and
family members for whom eligibility for benefits (that is, the worker's
attainment of age 62, or disability or death before age 62) occurred
before 2022, benefits will increase by 5.9 percent beginning with
benefits for December 2021, which are payable in January 2022. For
those first eligible after 2021, the 5.9 percent increase will not
apply.
For eligibility after 1978, we determine benefits using a 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 using a
benefit table. The table is available on the internet at
www.socialsecurity.gov/oact/ProgData/tableForm.html or by writing to:
Social Security Administration, Office of Public Inquiries, Windsor
Park Building, 6401 Security Boulevard, Baltimore, MD 21235.
Section 215(i)(2)(D) of the Act requires that, when we determine an
increase in Social Security benefits, we will publish in the Federal
Register a revision of the range of the PIAs and 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 low earnings. To qualify for these 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 maximum family benefit amounts after the 5.9
percent benefit increase.
Special Minimum PIAs and Maximum Family Benefits Payable for December
2021
------------------------------------------------------------------------
Maximum
Number of years of coverage PIA family
benefit
------------------------------------------------------------------------
11................................................ $45.50 $69.40
12................................................ 93.10 141.10
13................................................ 140.90 212.80
14................................................ 188.30 284.00
15................................................ 235.60 355.10
16................................................ 283.60 426.80
17................................................ 331.20 498.80
18................................................ 378.80 569.90
19................................................ 426.40 641.50
20................................................ 474.30 712.40
21................................................ 521.90 784.70
22................................................ 569.20 855.70
23................................................ 617.70 928.50
24................................................ 665.20 999.20
25................................................ 712.40 1,070.20
26................................................ 760.90 1,142.70
27................................................ 807.90 1,214.10
28................................................ 855.50 1,285.20
29................................................ 903.30 1,357.30
30................................................ 950.80 1,427.90
------------------------------------------------------------------------
Title XVI Payment Amounts
In accordance with section 1617 of the Act, the Federal benefit
rates used in computing Federal SSI payments for the aged, blind, and
disabled will increase by 5.9 percent effective January 2022. For 2021,
we derived the monthly payment amounts for an eligible individual, an
eligible individual with an eligible spouse, and for an essential
person--$794, $1,191, and $397, respectively--from yearly, unrounded
Federal SSI payment amounts of $9,530.12, $14,293.61, and $4,775.99.
For 2022, these yearly unrounded amounts respectively increase by 5.9
percent to $10,092.40, $15,136.93, and $5,057.77. We must round each of
these resulting amounts, when not a multiple of $12, to the next lower
multiple of $12. Therefore, the annual amounts, effective for 2022, are
$10,092, $15,132, and $5,052. Dividing the yearly amounts by 12 gives
the respective monthly amounts for 2022--$841, $1,261, and $421. For 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 who reside outside the United States. Section 805
of the Act 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.'' Therefore, the
monthly benefit for 2022 under this provision is 75 percent of $841, or
$630.75.
Student Earned Income Exclusion
A blind or disabled child who is a student regularly attending
school, college, university, or a course of vocational or technical
training can have limited earnings that do not count against his or her
SSI payments. The maximum amount of such income that we may exclude in
2021 is $1,930 per month, but not more than $7,770 in all of 2021.
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 2022,
we increase the unrounded amount for 2021 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 2021 is $1,928.19. We increase this amount by 5.9 percent to
$2,041.95, which we then round to $2,040. Similarly, we increase the
unrounded yearly amount for 2021, $7,772.50, by 5.9 percent to
$8,231.08 and round this to $8,230. Therefore, the maximum amount of
the income exclusion applicable to a student in 2022 is $2,040 per
month but not more than $8,230 in all of 2022.
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 a monthly fee from a beneficiary for
expenses incurred in providing services as the beneficiary's
representative payee. In 2021, the fee is limited to the lesser of: (1)
10 percent of the monthly benefit involved; or (2) $45 each month ($84
each month when 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. Therefore, we increase the
current amounts by 5.9 percent to $48 and $89 for 2022.
Appointed Representative Fee Assessment
Under sections 206(d) and 1631(d) of the Act, whenever we pay a fee
to a representative such as an attorney, agent, or other person who
represents claimants, we must impose on the representative an
assessment to cover administrative costs. The assessment is no more
than 6.3 percent of the representative's authorized fee or, if lower, a
dollar amount that is subject to increase by the cost-of-living
increase. We derive the dollar limit for December 2021 by increasing
the unrounded limit for December 2020, $98.71, by 5.9
[[Page 58718]]
percent, which is $104.53. We then round $104.53 to the next lower
multiple of $1. The dollar limit effective for December 2021 is,
therefore, $104.
National Average Wage Index for 2020
Computation
We determined the national average wage index for calendar year
2020 based on the 2019 national average wage index of $54,099.99,
published in the Federal Register on October 22, 2020 (85 FR 67413),
and the percentage increase in average wages from 2019 to 2020, 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 from
these data were $51,916.27 for 2019 and $53,383.18 for 2020. To
determine the national average wage index for 2020 at a level
consistent with the national average wage indexing series for 1951
through 1977 (published December 29, 1978, at 43 FR 61016), we multiply
the 2019 national average wage index of $54,099.99 by the percentage
increase in average wages from 2019 to 2020 (based on SSA-tabulated
wage data) as follows. We round the result to the nearest cent.
National Average Wage Index Amount
Multiplying the national average wage index for 2019 ($54,099.99)
by the ratio of the average wage for 2020 ($53,383.18) to that for 2019
($51,916.27) produces the 2020 index, $55,628.60. The national average
wage index for calendar year 2020 is about 2.83 percent higher than the
2019 index.
Program Amounts That Change Based on the National Average Wage Index
Under 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 formula; (4) the bend
points in the maximum family benefit formula; (5) the earnings required
to credit a worker 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 (SGA) amount applicable to statutorily blind
individuals; and (8) the coverage threshold for election officials and
election workers. Additionally, under section 3121(x) of the Internal
Revenue Code, the domestic employee coverage threshold is based on
changes in the national average wage index.
Two amounts also increase under regulatory requirements--the SGA
amount applicable to non-blind disabled persons, and the monthly
earnings threshold that establishes a month as part of a trial work
period for disabled beneficiaries.
OASDI Contribution and Benefit Base
General
The OASDI contribution and benefit base is $147,000 for
remuneration paid in 2022 and self-employment income earned in taxable
years beginning in 2022. The OASDI contribution and benefit base serves
as the maximum annual earnings on which OASDI taxes are paid. It is
also the maximum annual 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 2022 is the larger of: (1) The 1994 base of $60,600 multiplied by
the ratio of the national average wage index for 2020 to that for 1992;
or (2) the current base ($142,800). If the resulting amount is not a
multiple of $300, we round it to the nearest multiple of $300.
OASDI Contribution and Benefit Base Amount
Multiplying the 1994 OASDI contribution and benefit base ($60,600)
by the ratio of the national average wage index for 2020 ($55,628.60 as
determined above) to that for 1992 ($22,935.42) produces $146,981.97.
We round this amount to $147,000. Because $147,000 exceeds the current
base amount of $142,800, the OASDI contribution and benefit base is
$147,000 for 2022.
Retirement Earnings Test Exempt Amounts
General
We withhold Social Security benefits when a beneficiary under the
NRA has earnings over the applicable retirement earnings test exempt
amount. The NRA is the age when retirement benefits (before rounding)
are equal to the PIA. The NRA is age 66 for those born in 1943-54, and
it gradually increases to age 67 for those born in 1960 or later. A
higher exempt amount applies in the year in which a person attains NRA,
but only for earnings in months before such attainment. A lower exempt
amount applies at all other ages below NRA. Section 203(f)(8)(B) of the
Act provides formulas for determining the monthly exempt amounts. The
annual exempt amounts are exactly 12 times the monthly amounts.
For beneficiaries who attain NRA in the year, we withhold $1 in
benefits for every $3 of earnings over the annual exempt amount for
months before NRA. For all other beneficiaries under NRA, we withhold
$1 in benefits for every $2 of earnings over the annual exempt amount.
Computation
Under the formula that applies to beneficiaries attaining NRA after
2022, the lower monthly exempt amount for 2022 is the larger of: (1)
The 1994 monthly exempt amount multiplied by the ratio of the national
average wage index for 2020 to that for 1992; or (2) the 2021 monthly
exempt amount ($1,580). If the resulting amount is not a multiple of
$10, we round it to the nearest multiple of $10.
Under the formula that applies to beneficiaries attaining NRA in
2022, the higher monthly exempt amount for 2022 is the larger of: (1)
The 2002 monthly exempt amount multiplied by the ratio of the national
average wage index for 2020 to that for 2000; or (2) the 2021 monthly
exempt amount ($4,210). If the resulting amount is not a multiple of
$10, we round it 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 2020
($55,628.60) to that for 1992 ($22,935.42) produces $1,625.05. We round
this to $1,630. Because $1,630 exceeds the current exempt amount of
$1,580, the lower retirement earnings test monthly exempt amount is
$1,630 for 2022. The lower annual exempt amount is $19,560 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 2020
($55,628.60) to that for 2000 ($32,154.82) produces $4,325.06. We round
this to $4,330. Because $4,330 exceeds the current exempt amount of
$4,210, the higher retirement earnings test monthly exempt amount is
$4,330 for 2022. The higher annual exempt amount is $51,960 under the
retirement earnings test.
Primary Insurance Amount Formula
General
The Social Security Amendments of 1977 provided a method for
computing benefits that generally applies when a
[[Page 58719]]
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 formula each year to reflect changes in general wage
levels, as measured by the national average wage index.
We also adjust, or index, a worker's earnings to reflect the change
in the general wage levels that occurred during the worker's years of
employment. Such indexing ensures that a worker's future benefit level
will reflect the general rise in the standard of living that will occur
during his or her working lifetime. To compute the AIME, we first
determine the required number of years of earnings. We then select the
number of years with the highest indexed earnings, add the indexed
earnings for those years, and divide the total amount by the total
number of months in those years. We then round the resulting average
amount down to the next lower dollar amount. The result is the AIME.
Computing the PIA
The PIA is the sum of three separate percentages of portions of the
AIME. In 1979 (the first year the formula was in effect), these
portions were the first $180, the amount between $180 and $1,085, and
the amount over $1,085. We call the dollar amounts in the formula
governing the portions of the AIME the bend points of the formula.
Therefore, the bend points for 1979 were $180 and $1,085.
To obtain the bend points for 2022, we multiply each of the 1979
bend-point amounts by the ratio of the national average wage index for
2020 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 2020 ($55,628.60) to that
for 1977 ($9,779.44) produces the amounts of $1,023.90 and $6,171.83.
We round these to $1,024 and $6,172. Therefore, the portions of the
AIME to be used in 2022 are the first $1,024, the amount between $1,024
and $6,172, and the amount over $6,172.
Therefore, for individuals who first become eligible for old-age
insurance benefits or disability insurance benefits in 2022, or who die
in 2022 before becoming eligible for benefits, their PIA will be the
sum of:
(a) 90 percent of the first $1,024 of their AIME, plus
(b) 32 percent of their AIME over $1,024 and through $6,172, plus
(c) 15 percent of their AIME over $6,172.
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 are stated in section 215(a) of the Act.
Maximum Benefits Payable to a Family
General
The 1977 amendments continued the policy of limiting the total
monthly benefits that a worker's family may receive based on the
worker's PIA. Those amendments also continued the relationship between
maximum family benefits and PIAs but changed the method of computing
the maximum 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 2022, we multiply each of the 1979
bend-point amounts by the ratio of the national average wage index for
2020 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 2020 ($55,628.60) to that for 1977
($9,779.44) produces the amounts of $1,308.31, $1,888.52, and
$2,463.04. We round these amounts to $1,308, $1,889, and $2,463.
Therefore, the portions of the PIAs to be used in 2022 are the first
$1,308, the amount between $1,308 and $1,889, the amount between $1,889
and $2,463, and the amount over $2,463.
Thus, for the family of a worker who becomes age 62 or dies in 2022
before age 62, we will compute the total benefits payable to them so
that it does not exceed:
(a) 150 percent of the first $1,308 of the worker's PIA, plus
(b) 272 percent of the worker's PIA over $1,308 through $1,889,
plus
(c) 134 percent of the worker's PIA over $1,889 through $2,463,
plus
(d) 175 percent of the worker's PIA over $2,463.
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 are stated in section 203(a) of the Act.
Quarter of Coverage Amount
General
The earnings required for a quarter of coverage in 2022 is $1,510.
A quarter of coverage is the basic unit for determining if 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 yearly instead of quarterly. With the change to yearly
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. The amendment also provided a
formula for years after 1978.
Computation
Under the prescribed formula, the quarter of coverage amount for
2022 is the larger of: (1) The 1978 amount of $250 multiplied by the
ratio of the national average wage index for 2020 to that for 1976; or
(2) the current amount of $1,470. Section 213(d) provides that if the
resulting amount is not a multiple of $10, we round it 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 2020 ($55,628.60) to that for
1976 ($9,226.48) produces $1,507.31. We then round this amount to
$1,510. Because $1,510 exceeds the current amount of $1,470, the
quarter of coverage amount is $1,510 for 2022.
[[Page 58720]]
Old-Law Contribution and Benefit Base
General
The old-law contribution and benefit base for 2022 is $109,200.
This base would have been effective under the Act without the enactment
of the 1977 amendments.
The old-law contribution and benefit base is used by:
(a) The Railroad Retirement program to determine certain tax
liabilities and tier II benefits payable under that program to
supplement the tier I payments that correspond to basic Social Security
benefits,
(b) the Pension Benefit Guaranty Corporation to determine the
maximum amount of pension guaranteed under the Employee Retirement
Income Security Act (section 230(d) of the Act),
(c) Social Security to determine a year of coverage in computing
the special minimum benefit, as described earlier, and
(d) Social Security to determine a year of coverage (acquired
whenever earnings equal or exceed 25 percent of the old-law base for
this purpose only) in computing benefits for persons who are also
eligible to receive pensions based on employment not covered under
section 210 of the Act.
Computation
The old-law contribution and benefit base is the larger of: (1) The
1994 old-law base ($45,000) multiplied by the ratio of the national
average wage index for 2020 to that for 1992; or (2) the current old-
law base ($106,200). If the resulting amount is not a multiple of $300,
we round it to the nearest multiple of $300.
Old-Law Contribution and Benefit Base Amount
Multiplying the 1994 old-law contribution and benefit base
($45,000) by the ratio of the national average wage index for 2020
($55,628.60) to that for 1992 ($22,935.42) produces $109,145.03. We
round this amount to $109,200. Because $109,200 exceeds the current
amount of $106,200, the old-law contribution and benefit base is
$109,200 for 2022.
Substantial Gainful Activity Amounts
General
A finding of disability under titles II and XVI of the Act requires
that a person, except for a title XVI disabled child, be unable to
engage in SGA. A person who is earning more than a certain monthly
amount is ordinarily considered to be engaging in SGA. The monthly
earnings considered as SGA depends on the nature of a person's
disability. Section 223(d)(4)(A) of the Act specifies the SGA amount
for statutorily blind individuals under title II while our regulations
(20 CFR 404.1574 and 416.974) specify the SGA amount for non-blind
individuals.
Computation
The monthly SGA amount for statutorily blind individuals under
title II for 2022 is the larger of: (1) The amount for 1994 multiplied
by the ratio of the national average wage index for 2020 to that for
1992; or (2) the amount for 2021. The monthly SGA amount for non-blind
disabled individuals for 2022 is the larger of: (1) The amount for 2000
multiplied by the ratio of the national average wage index for 2020 to
that for 1998; or (2) the amount for 2021. In either case, if the
resulting amount is not a multiple of $10, we round it 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
2020 ($55,628.60) to that for 1992 ($22,935.42) produces $2,255.66. We
then round this amount to $2,260. Because $2,260 exceeds the current
amount of $2,190, the monthly SGA amount for statutorily blind
individuals is $2,260 for 2022.
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 2020
($55,628.60) to that for 1998 ($28,861.44) produces $1,349.21. We then
round this amount to $1,350. Because $1,350 exceeds the current amount
of $1,310, the monthly SGA amount for non-blind disabled individuals is
$1,350 for 2022.
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 2022, any month in which earnings exceed $970
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 2022, used to
determine whether a month is part of a trial work period, is the larger
of: (1) The amount for 2001 ($530) multiplied by the ratio of the
national average wage index for 2020 to that for 1999; or (2) the
amount for 2021. If the resulting amount is not a multiple of $10, we
round it to the nearest multiple of $10.
Trial Work Period Earnings Threshold Amount
Multiplying the 2001 monthly earnings threshold ($530) by the ratio
of the national average wage index for 2020 ($55,628.60) to that for
1999 ($30,469.84) produces $967.62. We then round this amount to $970.
Because $970 exceeds the current amount of $940, the monthly earnings
threshold is $970 for 2022.
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 2022, this threshold is $2,400.
Section 3121(x) of the Internal Revenue Code provides the formula for
increasing the threshold.
Computation
Under the formula, the domestic employee coverage threshold for
2022 is equal to the 1995 amount of $1,000 multiplied by the ratio of
the national average wage index for 2020 to that for 1993. If the
resulting amount is not a multiple of $100, we round it to the next
lower multiple of $100.
Domestic Employee Coverage Threshold Amount
Multiplying the 1995 domestic employee coverage threshold ($1,000)
by the ratio of the national average wage index for 2020 ($55,628.60)
to that for 1993 ($23,132.67) produces $2,404.76. We then round this
amount to $2,400. Therefore, the domestic employee coverage threshold
amount is $2,400 for 2022.
Election Official and Election Worker Coverage Threshold
General
The minimum amount an election official and election worker must
earn so the earnings are covered under Social Security or Medicare is
the election official and election worker coverage threshold. For 2022,
this threshold is $2,000. Section 218(c)(8)(B) of the Act provides the
formula for increasing the threshold.
[[Page 58721]]
Computation
Under the formula, the election official and election worker
coverage threshold for 2022 is equal to the 1999 amount of $1,000
multiplied by the ratio of the national average wage index for 2020 to
that for 1997. If the amount we determine is not a multiple of $100, we
round it to the nearest multiple of $100.
Election Official and Election Worker Coverage Threshold Amount
Multiplying the 1999 coverage threshold amount ($1,000) by the
ratio of the national average wage index for 2020 ($55,628.60) to that
for 1997 ($27,426.00) produces $2,028.32. We then round this amount to
$2,000. Therefore, the election official and election worker coverage
threshold amount is $2,000 for 2022.
(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)
The Acting Commissioner of the Social Security Administration,
Kilolo Kijakazi, having reviewed and approved this document, is
delegating the authority to electronically sign this document to Faye
I. Lipsky, who is the primary Federal Register Liaison for SSA, for
purposes of publication in the Federal Register.
Faye I. Lipsky,
Federal Register Liaison, Office of Legislation and Congressional
Affairs, Social Security Administration.
[FR Doc. 2021-23031 Filed 10-21-21; 8:45 am]
BILLING CODE 4191-02-P
