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SOCIAL SECURITY
Fact Sheet
2001 SOCIAL SECURITY CHANGES (revised 7/16/01)
| Cost-of-Living Adjustment (COLA): |
| Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 1999 through the third quarter of 2000, Social Security beneficiaries and Supplemental Security Income (SSI) recipients will receive a 3.5 percent COLA for 2001. Other important 2001 Social Security information is as follows: |
| Tax Rate |
2000 |
2001 |
| Employee |
7.65% |
7.65% |
| Self-Employed |
15.30% |
15.30% |
| Maximum Earnings Taxable: |
2000 |
2001 |
| Social Security (OASDI only) |
$76,200 |
$80,400 |
| Medicare (HI only) |
No Limit |
| Quarter of Coverage: |
2000 |
2001 |
| Earnings required |
$780 |
$830 |
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 |
2001 |
| Year individual reaches 65
|
$17,000/yr.
($1,417/mo.) |
$25,000/yr.
($2,084/mo.) |
| NOTE: Applies only to earnings 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.) |
$10,680/yr.
($890/mo.) |
| NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit. |
| SSI Federal Payment Standard: |
2000 |
2001 |
| |
$513/mo. |
$531/mo. |
| Couple |
$769/mo. |
$796/mo. |
| SSI Resources Limits: |
2000 |
2001 |
| Individual |
$2,000 |
$2,000 |
| Couple |
$3,000 |
$3,000 |
Estimated Average Monthly
Social Security Benefits: |
Before and After the December 2000 COLA: |
| |
Before
3.5% COLA |
After
3.5% COLA |
| All Retired Workers |
$ 816 |
$ 845 |
| Aged Couple, Both Receiving Benefits |
$1,363 |
$1,410 |
| Widowed Mother and Two Children |
$1,639 |
$1,696 |
| Aged Widow(er) Alone |
$ 783 |
$ 811 |
| Disabled Worker, Spouse and
One or More Children |
$1,266 |
$1,310 |
| All Disabled Workers |
$ 759 |
$ 786 |
SSA Press Office 449
Altmeyer Bldg. 6401 Security Blvd. Baltimore, MD 21235
410-965-8904 FAX 410-966-9973
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www.socialsecurity.gov
