Social Security Administration Announces COLA Increase
On Oct. 16, the Social Security Administration (SSA) announced the 2013 cost of living adjustment (COLA) of 1.7 percent. The COLA increase will begin with benefits that more than 56 million Social Security beneficiaries receive in January 2013. Increased payments to more than 8 million Supplemental Security Income beneficiaries will begin on Dec. 31, 2012. This will increase the monthly benefits received by 62 million people in the U.S. who receive benefits such as SS retirement or SSI disability.
This information is useful for all income certifications. All tenant income certification forms with an effective date after the COLA announcement must reflect this additional income. For example, to calculate a Social Security beneficiary’s income for income certification purposes for an early November move-in, which is before the effective date of the COLA increase, you would add two months at the current rate to 10 months of income at the higher rate.
Information about Medicare changes for 2013 haven’t been announced yet. For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums.