Fee for Administration of
State Supplementary Payments

States are required to pay a fee for Federal administration of State Supplementary Payments (supplemental to Federal SSI payments). The law provides a method to increase the fee for fiscal years after 2002. The method sets the fee for the next fiscal year to be the fee for the current fiscal year increased by the percentage, if any, by which the Consumer Price Index (CPI) for the month of June in the current year exceeds the CPI for the month of June in the preceding year. The resulting amount is to be rounded to the nearest whole cent. The law also allows the Commissioner of Social Security to set a different fee "appropriate for the State."

Fee for fiscal year 2010
The Social Security Administration has interpreted CPI to mean the "consumer price index for all urban consumers" (CPI-U). Based on the decrease in the CPI-U from June 2008 to June 2009, we have determined the fee for fiscal year 2010 to be $10.45 (no change from the 2009 fee). This amount applies to both optional and mandatory State Supplementary Payments. Details concerning this determination are shown below.

Note on calculation of the fee for fiscal year 2011
Because current law requires that the fee for fiscal 2011 be based on the increase in the CPI-U from June 2009 to June 2010, the decline in the CPI-U from June 2008 to June 2009 is not taken into account.