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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
Individual (rates adjusted to reflect Consumer Price Index Fix)
$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

 

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410-965-8904 FAX 410-966-9973

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