Wednesday, October 19, 2011 Press Office
Social Security Announces 3.6 Percent Benefit Increase for 2012
Cost-of-Living Adjustment is First Since 2009
Monthly Social Security and Supplemental Security Income (SSI) benefits for more than 60 million Americans will increase 3.6 percent in 2012, the Social Security Administration announced today.
The 3.6 percent cost-of-living adjustment (COLA) will begin with benefits that nearly 55 million Social Security beneficiaries receive in January 2012. Increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2011.
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 $110,100 from $106,800. Of the estimated 161 million workers who will pay Social Security taxes in 2012, about 10 million will pay higher taxes as a result of the increase in the taxable maximum.
Information about Medicare changes for 2012, when announced, will be available at 2012 Social Security Changes.
A fact sheet showing the effect of the 2012 COLA on various Social Security and SSI program amounts can be viewed at 2012 Social Security Changes.
SSA Press Office 440 Altmeyer Building 6401 Security Blvd. Baltimore, MD 21235
410-965-8904 FAX 410-966-9973