Cost-of-Living Increase and Other Determinations for 2014
Under title II of the Social Security Act (Act), there will be a 1.5 percent cost-of-living increase in Social Security benefits effective December 2013. As a result of this increase, the following items will increase for 2014: (1) The maximum Federal Supplemental Security Income (SSI) monthly benefit amounts for 2014 under title XVI of the Act will be $721 for an eligible individual, $1,082 for an eligible individual with an eligible spouse, and $361 for an essential person; (2) The special benefit amount under title VIII of the Act for certain World War II veterans will be $540.75 for 2014; (3) The student earned income exclusion under title XVI of the Act will be $1,750 per month in 2014, but not more than $7,060 for all of 2014; (4) The dollar fee limit for services performed as a representative payee will be $40 per month ($77 per month in the case of a beneficiary who is disabled and has an alcoholism or drug addiction condition that leaves him or her incapable of managing benefits) in 2014; and (5) The dollar limit on the administrative-cost fee assessment charged to an appointed representative such as an attorney, agent, or other person who represents claimants will be $89 beginning in December 2013. The national average wage index for 2012 is $44,321.67. This index affects the following amounts: (1) The Old-Age, Survivors, and Disability Insurance (OASDI) contribution and benefit base will be $117,000 for remuneration paid in 2014 and self-employment income earned in taxable years beginning in 2014; (2) The monthly exempt amounts under the OASDI retirement earnings test for taxable years ending in calendar year 2014 will be $1,290 for beneficiaries who will attain their Normal Retirement Age (NRA) (defined below) after 2014 and $3,450 for those who attain NRA in 2014; (3) The dollar amounts (``bend points'') used in the primary insurance amount (PIA) benefit formula for workers who become eligible for benefits, or who die before becoming eligible, in 2014 will be $816 and $4,917; (4) The bend points used in the formula for computing maximum family benefits for workers who become eligible for benefits, or who die before becoming eligible, in 2014 will be $1,042, $1,505, and $1,962; (5) The amount of taxable earnings a person must have to be credited with a quarter of coverage in 2014 will be $1,200; (6) The ``old-law'' contribution and benefit base under title II of the Act will be $87,000 for 2014; (7) The monthly amount deemed to constitute substantial gainful activity (SGA) for statutorily blind individuals in 2014 will be $1,800, and the corresponding amount for non-blind disabled persons will be $1,070; (8) The earnings threshold establishing a month as a part of a trial work period will be $770 for 2014; and (9) Coverage thresholds for 2014 will be $1,900 for domestic workers and $1,600 for election officials and election workers.