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SOCIAL SECURITY

Fact Sheet

Social Security

2000 SOCIAL SECURITY CHANGES

  • Cost-of-Living Adjustment (COLA):

Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 1998 through the third quarter of 1999, Social Security beneficiaries and Supplemental Security Income (SSI) recipients received a 2.4 percent COLA for 2000. Other important 2000 Social Security information is as follows:

  • Tax Rate:

1999

2000

Employee

7.65%

7.65%

Self-Employed

15.30%

15.30%

NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable maximum taxable amount (see below). The Medicare portion (HI) is 1.45% on all earnings.

  • Maximum Earnings Taxable:

Social Security (OASDI only)

$72,600

$76,200

Medicare (HI only)

N o L i m i t

N o L i m i t

  • Quarter of Coverage:

$ 740

$ 780

  • Retirement Earnings Test Exempt Amounts:

As of January 2000, the Retirement Earnings Test has been eliminated for individuals age 65-69. It remains in effect for those ages 62 through 64. A modified test applies for the year an individual reaches age 65. (The Senior Citizens' Freedom To Work Act of 2000, signed into law by President Clinton on April 7, 2000.)

2000

Year individual reaches 65

$17,000/yr.($1,417/mo.)

Applies only for months prior to attaining age 65. One dollar in benefits will be withheld for every $3 in earnings above the limit.

There is no limit on earnings beginning the month an individual attains age 65.

 

Under age 65

$10,080/yr.($ 840/mo.)

One dollar in benefits will be withheld for every $2 in earnings above the limit.

       

1999

Age 65 thru 69 $15,500/yr.($1,417/mo.) One dollar in benefits will be withheld for every $3 in earnings above the limit.
  Under age 65 $ 9,600/yr.($ 800/mo.) One dollar in benefits will be withheld for every $2 in earnings above the limit.
  • Maximum Social Security Benefit: Worker Retiring at Age 65 in January of 1999 and 2000:

$1,373/mo.

$1,433/mo.

  • SSI Federal Payment Standard:
   

Individual

$500/mo.

$512/mo.

Couple

$751/mo.

$769/mo.

  • SSI Resources Limits:
   

Individual

$2,000

$2,000

Couple

$3,000

$3,000

  • Estimated Average Monthly Social Security Benefits: Before and After the December 1999 COLA:
 

Before 2.4% COLA

After 2.4% COLA

All Retired Workers

$ 785

$ 804

Aged Couple, Both Receiving Benefits

$1,316

$1,348

Widowed Mother and Two Children

$1,573

$1,611

Aged Widow(er) Alone

$ 757

$ 775

Disabled Worker, Spouse and One or More Children

$1,225

$1,255

All Disabled Workers

$ 736

$ 754

     Revised 4/26/2000

 

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