Social Security Announces 2.7 Percent Benefit
Increase for 2005
Monthly Social Security and Supplemental Security Income benefits
for more than 52 million Americans will increase 2.7 percent in
2005, the Social Security Administration announced today.
Social Security and Supplemental Security Income benefits increase
automatically each year based on the rise in the Bureau of Labor
Statistics' Consumer Price Index for Urban Wage Earners and Clerical
Workers (CPI-W), from the third quarter of the prior year to the
corresponding period of the current year. This year's increase in
the CPI-W was 2.7 percent.
The 2.7 percent Cost-of-Living Adjustment (COLA) will begin with
benefits that more than 47 million Social Security beneficiaries
receive in January 2005. Increased payments to 7 million Supplemental
Security Income beneficiaries will begin on December 30.
Some other changes that take effect in January of each year are
based on the increase in average wages. Based on that increase,
the maximum amount of earnings subject to the Social Security tax
(taxable maximum) will increase to $90,000 from $87,900. Of the
estimated 159 million workers who will pay Social Security taxes
in 2005, about 9.9 million will pay higher taxes as a result of
the increase in the taxable maximum in 2005.
It is important to note that no one's Social Security benefit will
decrease as a result of the 2005 Medicare Part B premium increase,
announced last month. By law, the Part B premium increase cannot
be larger than a beneficiary's COLA increase. Information about
Medicare changes for 2005 can be found at www.hhs.gov
– The Internet site for the Department of Health and Human
# # #
NOTE TO CORRESPONDENTS: A fact
sheet showing the effect of the various automatic adjustments
Copies of most SSA press releases, as well as other Social Security
information and statistics,
are available at SSA's Internet site, Social Security
Online, at http://www.socialsecurity.gov.
Also look there for information on subscribing to SSA's
free electronic newsletter, Social Security eNews.
SSA Press Office 440
Altmeyer Bldg. 6401 Security Blvd. Baltimore, MD 21235
410-965-8904 FAX 410-966-9973