[Federal Register Volume 79, Number 209 (Wednesday, October 29, 2014)]
[Notices]
[Pages 64455-64461]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-25802]
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SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA-2014-0064]
Cost-of-Living Increase and Other Determinations for 2015
AGENCY: Social Security Administration.
ACTION: Notice.
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SUMMARY: Under title II of the Social Security Act (Act), there will be
a 1.7 percent cost-of-living increase in Social Security benefits
effective December 2014. In addition, the national average wage index
for 2013 is $44,888.16. The cost-of-living increase and national
average wage index affect other program parameters as described below.
FOR FURTHER INFORMATION CONTACT: Susan C. Kunkel, Office of the Chief
Actuary, Social Security Administration, 6401 Security
[[Page 64456]]
Boulevard, Baltimore, MD 21235, (410) 965-3000. Information relating to
this announcement is available on our Internet site at
www.socialsecurity.gov/oact/cola/index.html. For information on
eligibility or claiming benefits, call 1-800-772-1213 (TTY 1-800-325-
0778), or visit our Internet site at www.socialsecurity.gov.
SUPPLEMENTARY INFORMATION: Because of the 1.7 percent cost-of-living
increase, the following items will increase for 2015:
(1) The maximum Federal Supplemental Security Income (SSI) monthly
benefit amounts for 2015 under title XVI of the Act will be $733 for an
eligible individual, $1,100 for an eligible individual with an eligible
spouse, and $367 for an essential person;
(2) The special benefit amount under title VIII of the Act for
certain World War II veterans will be $549.75 for 2015;
(3) The student earned income exclusion under title XVI of the Act
will be $1,780 per month in 2015, but not more than $7,180 for all of
2015;
(4) The dollar fee limit for services performed as a representative
payee will be $41 per month ($78 per month in the case of a beneficiary
who is disabled and has an alcoholism or drug addiction condition that
leaves him or her incapable of managing benefits) in 2015; and
(5) The dollar limit on the administrative-cost fee assessment
charged to an appointed representative such as an attorney, agent, or
other person who represents claimants will be $91 beginning in December
2014.
The national average wage index for 2013 is $44,888.16. This index
affects the following amounts:
(1) The Old-Age, Survivors, and Disability Insurance (OASDI)
contribution and benefit base will be $118,500 for remuneration paid in
2015 and self-employment income earned in taxable years beginning in
2015;
(2) The monthly exempt amounts under the OASDI retirement earnings
test for taxable years ending in calendar year 2015 will be $1,310 for
beneficiaries who will attain their Normal Retirement Age (NRA)
(defined below in the Retirement Earnings Test Exempt Amounts section
below) after 2015 and $3,490 for those who attain NRA in 2015;
(3) The dollar amounts (``bend points'') used in the primary
insurance amount (PIA) benefit formula for workers who become eligible
for benefits, or who die before becoming eligible, in 2015 will be $826
and $4,980;
(4) The bend points used in the formula for computing maximum
family benefits for workers who become eligible for benefits, or who
die before becoming eligible, in 2015 will be $1,056, $1,524, and
$1,987;
(5) The taxable earnings a person must have to be credited with a
quarter of coverage in 2015 will be $1,220;
(6) The ``old-law'' contribution and benefit base under title II of
the Act will be $88,200 for 2015;
(7) The monthly amount deemed to constitute substantial gainful
activity for statutorily blind persons in 2015 will be $1,820. The
corresponding amount for non-blind disabled persons will be $1,090;
(8) The earnings threshold establishing a month as a part of a
trial work period will be $780 for 2015; and
(9) Coverage thresholds for 2015 will be $1,900 for domestic
workers and $1,600 for election officials and election workers.
According to section 215(i)(2)(D) of the Act, we must publish the
benefit increase percentage and the revised table of ``special
minimum'' benefits within 45 days after the close of the third calendar
quarter of 2014. We must also publish by November 1: The national
average wage index for 2013 (215(a)(1)(D)), the OASDI fund ratio for
2014 (section 215(i)(2)(C)(ii)), the OASDI contribution and benefit
base for 2015 (section 230(a)), the earnings required to be credited
with a quarter of coverage in 2015 (section 213(d)(2)), the monthly
exempt amounts under the Social Security retirement earnings test for
2015 (section 203(f)(8)(A)), the formula for computing a PIA for
workers who first become eligible for benefits or die in 2015 (section
215(a)(1)(D)), and the formula for computing the maximum benefits
payable to the family of a worker who first becomes eligible for old-
age benefits or dies in 2015 (section 203(a)(2)(C)).
Cost-of-Living Increases
General
The cost-of-living increase is 1.7 percent for benefits under
titles II and XVI of the Act. Under title II, OASDI benefits will
increase by 1.7 percent for individuals eligible for December 2014
benefits, payable in January 2015. We base this increase on the
authority contained in section 215(i) of the Act.
Pursuant to section 1617 of the Act, Federal SSI payment levels
will also increase by 1.7 percent effective for payments made for
January 2015 but paid on December 31, 2014.
Computation
Computation of the cost-of-living increase is based on an increase
in a Consumer Price Index produced by the Bureau of Labor Statistics.
At the time the Act was amended to provide cost-of-living increases,
only one Consumer Price Index existed, namely the Consumer Price Index
for Urban Wage Earners and Clerical Workers. Although the Bureau of
Labor Statistics has since developed other consumer price indices,
legal precedent requires us to use the Consumer Price Index for Urban
Wage Earners and Clerical Workers. We refer to this index in the
following paragraphs as the CPI.
Section 215(i)(1)(B) of the Act defines a ``computation quarter''
to be a third calendar quarter in which the average CPI exceeded the
average CPI in the previous computation quarter. The last cost-of-
living increase, effective for those eligible to receive title II
benefits for December 2013, was based on the CPI increase from the
third quarter of 2012 to the third quarter of 2013. Therefore, the last
computation quarter is the third quarter of 2013. The law states that a
cost-of-living increase for benefits is determined based on the
percentage increase, if any, in the CPI from the last computation
quarter to the third quarter of the current year. Therefore, we compute
the increase in the CPI from the third quarter of 2013 to the third
quarter of 2014.
Section 215(i)(1) of the Act states that the CPI for a cost-of-
living computation quarter is the arithmetic mean of this index for the
3 months in that quarter. In accordance with 20 CFR 404.275, we round
the arithmetic mean, if necessary, to the nearest 0.001. The CPI for
each month in the quarter ending September 30, 2013, is: For July 2013,
230.084; for August 2013, 230.359; and for September 2013, 230.537. The
arithmetic mean for the calendar quarter ending September 30, 2013 is
230.327. The CPI for each month in the quarter ending September 30,
2014, is: For July 2014, 234.525; for August 2014, 234.030; and for
September 2014, 234.170. The arithmetic mean for the calendar quarter
ending September 30, 2014 is 234.242. The CPI for the calendar quarter
ending September 30, 2014, exceeds that for the calendar quarter ending
September 30, 2013 by 1.7 percent (rounded to the nearest 0.1).
Therefore, beginning December 2014 a cost-of-living benefit increase of
1.7 percent is effective for benefits under title II of the Act.
Section 215(i) also specifies that a benefit increase under title
II, effective for December of any year, will be
[[Page 64457]]
limited to the increase in the national average wage index for the
prior year if the OASDI fund ratio for that year is below 20.0 percent.
The OASDI fund ratio for a year is the ratio of the combined assets of
the OASDI Trust Funds at the beginning of that year to the combined
expenditures of these funds during that year. For 2014, the OASDI fund
ratio is assets of $2,764,431 million divided by estimated expenditures
of $862,043 million, or 320.7 percent. Because the 320.7 percent OASDI
fund ratio exceeds 20.0 percent, the benefit increase for December 2014
is not limited.
Program Amounts That Change Based on the Cost-of-Living Increase
The following program amounts change based on the cost-of-living
increase: (1) Title II benefits; (2) title XVI benefits; (3) title VIII
benefits; (4) the student earned income exclusion; (5) the fee for
services performed by a representative payee; and (6) the appointed
representative fee assessment.
Title II Benefit Amounts
In accordance with section 215(i) of the Act, for workers and
family members for whom eligibility for benefits (i.e., the worker's
attainment of age 62, or disability or death before age 62) occurred
before 2015, benefits will increase by 1.7 percent beginning with
benefits for December 2014, which are payable in January 2015. For
first eligibility after 2014, the 1.7 percent increase will not apply.
For eligibility after 1978, we determine benefits using a formula
provided by the Social Security Amendments of 1977 (Pub. L. 95-216), as
described later in this notice.
For eligibility before 1979, we determine benefits by using a
benefit table. The table is available on the Internet at
www.socialsecurity.gov/oact/ProgData/tableForm.html or by writing to:
Social Security Administration, Office of Public Inquiries, Windsor
Park Building, 6401 Security Boulevard, Baltimore, MD 21235.
Section 215(i)(2)(D) of the Act requires that, when we determine an
increase in Social Security benefits, we will publish in the Federal
Register a revision of the range of the PIAs and maximum family
benefits based on the dollar amount and other provisions described in
section 215(a)(1)(C)(i). We refer to these benefits as ``special
minimum'' benefits. These benefits are payable to certain individuals
with long periods of low earnings. To qualify for these benefits, an
individual must have at least 11 years of coverage. To earn a year of
coverage for purposes of the special minimum benefit, a person must
earn at least a certain proportion of the old-law contribution and
benefit base (described later in this notice). For years before 1991,
the proportion is 25 percent; for years after 1990, it is 15 percent.
In accordance with section 215(a)(1)(C)(i), the table below shows the
revised range of PIAs and maximum family benefit amounts after the 1.7
percent benefit increase.
Special Minimum PIAs and Maximum Family Benefits Payable for December
2014
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Maximum
Number of years of coverage PIA family
benefit
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11................................................ $39.90 $60.80
12................................................ 81.50 123.40
13................................................ 123.20 185.90
14................................................ 164.60 248.00
15................................................ 205.80 310.00
16................................................ 247.70 372.70
17................................................ 289.20 435.40
18................................................ 330.80 497.50
19................................................ 372.30 559.90
20................................................ 414.00 621.80
21................................................ 455.60 684.70
22................................................ 496.90 746.90
23................................................ 539.10 810.20
24................................................ 580.60 872.00
25................................................ 621.80 933.80
26................................................ 664.10 997.20
27................................................ 705.10 1,059.40
28................................................ 746.70 1,121.50
29................................................ 788.30 1,184.30
30................................................ 829.80 1,246.00
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Title XVI Benefit Amounts
In accordance with section 1617 of the Act, maximum Federal SSI
benefit amounts for the aged, blind, and disabled will increase by 1.7
percent effective January 2015. For 2014, we derived the monthly
benefit amounts for an eligible individual, an eligible individual with
an eligible spouse, and for an essential person--$721, $1,082, and
$361, respectively--from yearly, unrounded Federal SSI benefit amounts
of $8,657.26, $12,984.44, and $4,338.55. For 2015, these yearly
unrounded amounts respectively increase by 1.7 percent to $8,804.43,
$13,205.18, and $4,412.31. We must round each of these resulting
amounts, when not a multiple of $12, to the next lower multiple of $12.
Therefore, the annual amounts, effective for 2015, are $8,796, $13,200,
and $4,404. Dividing the yearly amounts by 12 gives the respective
monthly amounts for 2015--$733, $1,100, and $367. For an eligible
individual with an eligible spouse, we equally divide the amount
payable between the two spouses.
Title VIII Benefit Amount
Title VIII of the Act provides for special benefits to certain
World War II veterans who reside outside the United States. Section 805
provides that ``[t]he benefit under this title payable to a qualified
individual for any month shall be in an amount equal to 75 percent of
the Federal benefit rate [the maximum amount for an eligible
individual] under title XVI for the month, reduced by the amount of the
qualified individual's benefit income for the month.'' Therefore, the
monthly benefit for 2015 under this provision is 75 percent of $733, or
$549.75.
Student Earned Income Exclusion
A blind or disabled child who is a student regularly attending
school, college, university, or a course of vocational or technical
training can have limited earnings that do not count against his or her
SSI benefits. The maximum amount of such income that we may exclude in
2014 is $1,750 per month, but not more than $7,060 in all of 2014.
These amounts increase based on a formula set forth in regulation 20
CFR 416.1112.
To compute each of the monthly and yearly maximum amounts for 2015,
we increase the unrounded amount for 2014 by the latest cost-of-living
increase. If the amount so calculated is not a multiple of $10, we
round it to the nearest multiple of $10. The unrounded monthly amount
for 2014 is $1,751.59. We increase this amount by 1.7 percent to
$1,781.37, which we then round to $1,780. Similarly, we increase the
unrounded yearly amount for 2014, $7,060.62, by 1.7 percent to
$7,180.65 and round this to $7,180. Therefore, the maximum amount of
the income exclusion applicable to a student in 2015 is $1,780 per
month but not more than $7,180 in all of 2015.
Fee for Services Performed as a Representative Payee
Sections 205(j)(4)(A)(i) and 1631(a)(2)(D)(i) of the Act permit a
qualified organization to collect a monthly fee from a beneficiary for
expenses incurred in providing services as the beneficiary's
representative payee. In 2014, the fee is limited to the lesser of: (1)
10 percent of the monthly benefit involved; or (2) $40 each month ($77
each month when the beneficiary is entitled to disability benefits and
has an alcoholism or drug addiction condition that makes the individual
incapable of managing such benefits). The dollar fee limits are subject
to increase by the cost-of-living increase, with the resulting amounts
rounded to
[[Page 64458]]
the nearest whole dollar amount. Therefore, we increase the current
amounts by 1.7 percent to $41 and $78 for 2015.
Appointed Representative Fee Assessment
Under sections 206(d) and 1631(d) of the Act, whenever we pay a fee
to a representative such as an attorney, agent, or other person who
represents claimants, we must impose on the representative an
assessment to cover administrative costs. The assessment is no more
than 6.3 percent of the representative's authorized fee or, if lower, a
dollar amount that is subject to increase by the cost-of-living
increase. We derive the dollar limit for December 2014 by increasing
the unrounded limit for December 2013, $89.68, by 1.7 percent, which is
$91.20. We then round $91.20 to the next lower multiple of $1. The
dollar limit effective for December 2014 is, therefore, $91.
National Average Wage Index for 2013
Computation
We determined the national average wage index for calendar year
2013 based on the 2012 national average wage index of $44,321.67,
announced in the Federal Register on November 5, 2013 (78 FR 66413),
and the percentage increase in average wages from 2012 to 2013, as
measured by annual wage data. We tabulate the annual wage data,
including contributions to deferred compensation plans, as required by
section 209(k) of the Act. The average amounts of wages calculated from
these data were $42,498.21 for 2012 and $43,041.39 for 2013. To
determine the national average wage index for 2013 at a level
consistent with the national average wage indexing series for 1951
through 1977 (published December 29, 1978, at 43 FR 61016), we multiply
the 2012 national average wage index of $44,321.67 by the percentage
increase in average wages from 2012 to 2013 (based on SSA-tabulated
wage data) as follows. We round the result to the nearest cent.
Amount
Multiplying the national average wage index for 2012 ($44,321.67)
by the ratio of the average wage for 2013 ($43,041.39) to that for 2012
($42,498.21) produces the 2013 index, $44,888.16. The national average
wage index for calendar year 2013 is about 1.28 percent higher than the
2012 index.
Program Amounts That Change Based on the National Average Wage Index
The following amounts change with annual changes in the national
average wage index: (1) The OASDI contribution and benefit base; (2)
the exempt amounts under the retirement earnings test; (3) the dollar
amounts, or bend points, in the PIA formula; (4) the bend points in the
maximum family benefit formula; (5) the earnings required to credit a
worker with a quarter of coverage; (6) the old-law contribution and
benefit base (as determined under section 230 of the Act as in effect
before the 1977 amendments); (7) the substantial gainful activity (SGA)
amount applicable to statutorily blind individuals; and (8) the
coverage threshold for election officials and election workers. Section
3121(x) of the Internal Revenue Code requires that the domestic
employee coverage threshold be based on changes in the national average
wage index.
In addition to the amounts required by statute, two amounts
increase under regulatory requirements--the SGA amount applicable to
non-blind disabled persons, and the monthly earnings threshold that
establishes a month as part of a trial work period for disabled
beneficiaries.
OASDI Contribution and Benefit Base
General
The OASDI contribution and benefit base is $118,500 for
remuneration paid in 2015 and self-employment income earned in taxable
years beginning in 2015. The OASDI contribution and benefit base serves
as the maximum annual earnings on which OASDI taxes are paid. It is
also the maximum annual earnings used in determining a person's OASDI
benefits.
Computation
Section 230(b) of the Act provides the formula used to determine
the OASDI contribution and benefit base. Under the formula, the base
for 2015 is the larger of: (1) The 1994 base of $60,600 multiplied by
the ratio of the national average wage index for 2013 to that for 1992;
or (2) the current base ($117,000). If the resulting amount is not a
multiple of $300, we round it to the nearest multiple of $300.
Amount
Multiplying the 1994 OASDI contribution and benefit base ($60,600)
by the ratio of the national average wage index for 2013 ($44,888.16 as
determined above) to that for 1992 ($22,935.42) produces $118,603.56.
We round this amount to $118,500. Because $118,500 exceeds the current
base amount of $117,000, the OASDI contribution and benefit base is
$118,500 for 2015.
Retirement Earnings Test Exempt Amounts
General
We withhold Social Security benefits when a beneficiary under the
NRA has earnings over the applicable retirement earnings test exempt
amount. NRA is the age of initial benefit entitlement for which the
benefit, before rounding, is equal to the worker's PIA. The NRA is age
66 for those born in 1943-54, and it gradually increases reaching age
67 for those born in 1960 or later. A higher exempt amount applies in
the year in which a person attains his or her NRA, but only for
earnings in months before such attainment. A lower exempt amount
applies at all other ages below NRA. Section 203(f)(8)(B) of the Act,
as amended by section 102 of Pub. L. 104-121, provides formulas for
determining the monthly exempt amounts. The annual exempt amounts are
exactly 12 times the monthly amounts.
For beneficiaries who attain NRA in the year, we withhold $1 in
benefits for every $3 of earnings over the annual exempt amount for
months before NRA. For all other beneficiaries under NRA, we withhold
$1 in benefits for every $2 of earnings over the annual exempt amount.
Computation
Under the formula applicable to beneficiaries attaining NRA after
2015, the lower monthly exempt amount for 2015 is the larger of: (1)
The 1994 monthly exempt amount multiplied by the ratio of the national
average wage index for 2013 to that for 1992; or (2) the 2014 monthly
exempt amount ($1,290). If the resulting amount is not a multiple of
$10, we round it to the nearest multiple of $10.
Under the formula that applies to beneficiaries attaining NRA in
2015, the higher monthly exempt amount for 2015 is the larger of: (1)
The 2002 monthly exempt amount multiplied by the ratio of the national
average wage index for 2013 to that for 2000; or (2) the 2014 monthly
exempt amount ($3,450). If the resulting amount is not a multiple of
$10, we round it to the nearest multiple of $10.
Lower Exempt Amount
Multiplying the 1994 retirement earnings test monthly exempt amount
of $670 by the ratio of the national average wage index for 2013
($44,888.16) to that for 1992 ($22,935.42) produces $1,311.29. We round
this to $1,310. Because $1,310 exceeds the current exempt amount of
$1,290, the lower retirement earnings test monthly exempt amount is
$1,310 for 2015. The lower
[[Page 64459]]
annual exempt amount is $15,720 under the retirement earnings test.
Higher Exempt Amount
Multiplying the 2002 retirement earnings test monthly exempt amount
of $2,500 by the ratio of the national average wage index for 2013
($44,888.16) to that for 2000 ($32,154.82) produces $3,490.00. We round
this to $3,490. Because $3,490 exceeds the current exempt amount of
$3,450, the higher retirement earnings test monthly exempt amount is
$3,490 for 2015. The higher annual exempt amount is $41,880 under the
retirement earnings test.
Primary Insurance Amount Benefit Formula
General
The Social Security Amendments of 1977 provided a method for
computing benefits that generally applies when a worker first becomes
eligible for benefits after 1978. This method uses the worker's average
indexed monthly earnings (AIME) to compute the PIA. We adjust the
formula each year to reflect changes in general wage levels, as
measured by the national average wage index.
We also adjust, or index, a worker's earnings to reflect the change
in the general wage levels that occurred during the worker's years of
employment. Such indexing ensures that a worker's future benefit level
will reflect the general rise in the standard of living that will occur
during his or her working lifetime. To compute the AIME, we first
determine the required number of years of earnings. We then select the
number of years with the highest indexed earnings, add the indexed
earnings for those years, and divide the total amount by the total
number of months in those years. We then round the resulting average
amount down to the next lower dollar amount. The result is the AIME.
Computing the PIA
The PIA is the sum of three separate percentages of portions of the
AIME. In 1979 (the first year the formula was in effect), these
portions were the first $180, the amount between $180 and $1,085, and
the amount over $1,085. We call the dollar amounts in the formula
governing the portions of the AIME the ``bend points'' of the formula.
Therefore, the bend points for 1979 were $180 and $1,085.
To obtain the bend points for 2015, we multiply each of the 1979
bend-point amounts by the ratio of the national average wage index for
2013 to that average for 1977. We then round these results to the
nearest dollar. Multiplying the 1979 amounts of $180 and $1,085 by the
ratio of the national average wage index for 2013 ($44,888.16) to that
for 1977 ($9,779.44) produces the amounts of $826.21 and $4,980.21. We
round these to $826 and $4,980. Therefore, the portions of the AIME to
be used in 2015 are the first $826, the amount between $826 and $4,980,
and the amount over $4,980.
Therefore, for individuals who first become eligible for old-age
insurance benefits or disability insurance benefits in 2015, or who die
in 2015 before becoming eligible for benefits, their PIA will be the
sum of:
(a) 90 percent of the first $826 of their AIME, plus
(b) 32 percent of their AIME over $826 and through $4,980, plus
(c) 15 percent of their AIME over $4,980.
We round this amount to the next lower multiple of $0.10 if it is
not already a multiple of $0.10. This formula and the rounding
adjustment are stated in section 215(a) of the Act.
Maximum Benefits Payable to a Family
General
The 1977 amendments continued the policy of limiting the total
monthly benefits that a worker's family may receive based on his or her
PIA. Those amendments also continued the relationship between maximum
family benefits and PIAs but changed the method of computing the
maximum benefits that may be paid to a worker's family. The Social
Security Disability Amendments of 1980 (Pub. L. 96-265) established a
formula for computing the maximum benefits payable to the family of a
disabled worker. This formula applies to the family benefits of workers
who first become entitled to disability insurance benefits after June
30, 1980, and who first become eligible for these benefits after 1978.
For disabled workers initially entitled to disability benefits before
July 1980 or whose disability began before 1979, we compute the family
maximum payable the same as the old-age and survivor family maximum.
Computing the Old-Age and Survivor Family Maximum
The formula used to compute the family maximum is similar to that
used to compute the PIA. It involves computing the sum of four separate
percentages of portions of the worker's PIA. In 1979, these portions
were the first $230, the amount between $230 and $332, the amount
between $332 and $433, and the amount over $433. We refer to such
dollar amounts in the formula as the ``bend points'' of the family-
maximum formula.
To obtain the bend points for 2015, we multiply each of the 1979
bend-point amounts by the ratio of the national average wage index for
2013 to that average for 1977. Then we round this amount to the nearest
dollar. Multiplying the amounts of $230, $332, and $433 by the ratio of
the national average wage index for 2013 ($44,888.16) to that for 1977
($9,779.44) produces the amounts of $1,055.71, $1,523.90, and
$1,987.49. We round these amounts to $1,056, $1,524, and $1,987.
Therefore, the portions of the PIAs to be used in 2015 are the first
$1,056, the amount between $1,056 and $1,524, the amount between $1,524
and $1,987, and the amount over $1,987.
Thus, for the family of a worker who becomes age 62 or dies in 2015
before age 62, we will compute the total benefits payable to them so
that it does not exceed:
(a) 150 percent of the first $1,056 of the worker's PIA, plus
(b) 272 percent of the worker's PIA over $1,056 through $1,524,
plus
(c) 134 percent of the worker's PIA over $1,524 through $1,987,
plus
(d) 175 percent of the worker's PIA over $1,987.
We then round this amount to the next lower multiple of $0.10 if it
is not already a multiple of $0.10. This formula and the rounding
adjustment are contained in section 203(a) of the Act.
Quarter of Coverage Amount
General
The earnings required for a quarter of coverage in 2015 is $1,220.
A quarter of coverage is the basic unit for determining if a worker is
insured under the Social Security program. For years before 1978, we
generally credited an individual with a quarter of coverage for each
quarter in which wages of $50 or more were paid, or with 4 quarters of
coverage for every taxable year in which $400 or more of self-
employment income was earned. Beginning in 1978, employers generally
report wages yearly instead of quarterly. With the change to yearly
reporting, section 352(b) of the Social Security Amendments of 1977
amended section 213(d) of the Act to provide that a quarter of coverage
would be credited for each $250 of an individual's total wages and
self-employment income for calendar year 1978, up to a maximum of 4
quarters of coverage for the year.
[[Page 64460]]
Computation
Under the prescribed formula, the quarter of coverage amount for
2015 is the larger of: (1) The 1978 amount of $250 multiplied by the
ratio of the national average wage index for 2013 to that for 1976; or
(2) the current amount of $1,200. Section 213(d) provides that if the
resulting amount is not a multiple of $10, we round it to the nearest
multiple of $10.
Quarter of Coverage Amount
Multiplying the 1978 quarter of coverage amount ($250) by the ratio
of the national average wage index for 2013 ($44,888.16) to that for
1976 ($9,226.48) produces $1,216.29. We then round this amount to
$1,220. Because $1,220 exceeds the current amount of $1,200, the
quarter of coverage amount is $1,220 for 2015.
Old-Law Contribution and Benefit Base
General
The old-law contribution and benefit base for 2015 is $88,200. This
base would have been effective under the Act without the enactment of
the 1977 amendments.
The old-law contribution and benefit base is used by:
(a) The Railroad Retirement program to determine certain tax
liabilities and tier II benefits payable under that program to
supplement the tier I payments that correspond to basic Social Security
benefits,
(b) the Pension Benefit Guaranty Corporation to determine the
maximum amount of pension guaranteed under the Employee Retirement
Income Security Act (section 230(d) of the Act),
(c) Social Security to determine a year of coverage in computing
the special minimum benefit, as described earlier, and
(d) Social Security to determine a year of coverage (acquired
whenever earnings equal or exceed 25 percent of the old-law base for
this purpose only) in computing benefits for persons who are also
eligible to receive pensions based on employment not covered under
section 210 of the Act.
Computation
The old-law contribution and benefit base is the larger of: (1) The
1994 old-law base ($45,000) multiplied by the ratio of the national
average wage index for 2013 to that for 1992; or (2) the current old-
law base ($87,000). If the resulting amount is not a multiple of $300,
we round it to the nearest multiple of $300.
Amount
Multiplying the 1994 old-law contribution and benefit base
($45,000) by the ratio of the national average wage index for 2013
($44,888.16) to that for 1992 ($22,935.42) produces $88,071.95. We
round this amount to $88,200. Because $88,200 exceeds the current
amount of $87,000, the old-law contribution and benefit base is $88,200
for 2015.
Substantial Gainful Activity Amounts
General
A finding of disability under titles II and XVI of the Act requires
that a person, except for a title XVI disabled child, be unable to
engage in SGA. A person who is earning more than a certain monthly
amount is ordinarily considered to be engaging in SGA. The monthly
earnings considered as SGA depends on the nature of a person's
disability. Section 223(d)(4)(A) of the Act specifies a higher SGA
amount for statutorily blind individuals under title II while Federal
regulations (20 CFR 404.1574 and 416.974) specify a lower SGA amount
for non-blind individuals.
Computation
The monthly SGA amount for statutorily blind individuals under
title II for 2015 is the larger of: (1) Such amount for 1994 multiplied
by the ratio of the national average wage index for 2013 to that for
1992; or (2) such amount for 2014. The monthly SGA amount for non-blind
disabled individuals for 2015 is the larger of: (1) Such amount for
2000 multiplied by the ratio of the national average wage index for
2013 to that for 1998; or (2) such amount for 2014. In either case, if
the resulting amount is not a multiple of $10, we round it to the
nearest multiple of $10.
SGA Amount for Statutorily Blind Individuals
Multiplying the 1994 monthly SGA amount for statutorily blind
individuals ($930) by the ratio of the national average wage index for
2013 ($44,888.16) to that for 1992 ($22,935.42) produces $1,820.15. We
then round this amount to $1,820. Because $1,820 exceeds the current
amount of $1,800, the monthly SGA amount for statutorily blind
individuals is $1,820 for 2015.
SGA Amount for Non-Blind Disabled Individuals
Multiplying the 2000 monthly SGA amount for non-blind individuals
($700) by the ratio of the national average wage index for 2013
($44,888.16) to that for 1998 ($28,861.44) produces $1,088.71. We then
round this amount to $1,090. Because $1,090 exceeds the current amount
of $1,070, the monthly SGA amount for non-blind disabled individuals is
$1,090 for 2015.
Trial Work Period Earnings Threshold
General
During a trial work period of 9 months in a rolling 60-month
period, a beneficiary receiving Social Security disability benefits may
test his or her ability to work and still receive monthly benefit
payments. To be considered a trial work period month, earnings must be
over a certain level. In 2015, any month in which earnings exceed $780
is considered a month of services for an individual's trial work
period.
Computation
The method used to determine the new amount is set forth in our
regulations at 20 CFR 404.1592(b). Monthly earnings in 2015, used to
determine whether a month is part of a trial work period, is the amount
for 2001 ($530) multiplied by the ratio of the national average wage
index for 2013 to that for 1999 or, if larger, the amount for 2014. If
the amount so calculated is not a multiple of $10, we round it to the
nearest multiple of $10.
Amount
Multiplying the 2001 monthly earnings threshold ($530) by the ratio
of the national average wage index for 2013 ($44,888.16) to that for
1999 ($30,469.84) produces $780.80. We then round this amount to $780.
Because $780 exceeds the current amount of $770, the monthly earnings
threshold is $780 for 2015.
Domestic Employee Coverage Threshold
General
The minimum amount a domestic worker must earn so that such
earnings are covered under Social Security or Medicare is the domestic
employee coverage threshold. For 2015, this threshold is $1,900.
Section 3121(x) of the Internal Revenue Code provides the formula for
increasing the threshold.
Computation
Under the formula, the domestic employee coverage threshold for
2015 is equal to the 1995 amount of $1,000 multiplied by the ratio of
the national average wage index for 2013 to that for 1993. If the
resulting amount is not a multiple of $100, we round it to the next
lower multiple of $100.
[[Page 64461]]
Domestic Employee Coverage Threshold Amount
Multiplying the 1995 domestic employee coverage threshold ($1,000)
by the ratio of the national average wage index for 2013 ($44,888.16)
to that for 1993 ($23,132.67) produces $1,940.47. We then round this
amount to $1,900. Therefore, the domestic employee coverage threshold
amount is $1,900 for 2015.
Election Official and Election Worker Coverage Threshold
General
The minimum amount an election official and election worker must
earn so the earnings are covered under Social Security or Medicare is
the election official and election worker coverage threshold. For 2015,
this threshold is $1,600. Section 218(c)(8)(B) of the Act provides the
formula for increasing the threshold.
Computation
Under the formula, the election official and election worker
coverage threshold for 2015 is equal to the 1999 amount of $1,000
multiplied by the ratio of the national average wage index for 2013 to
that for 1997. If the amount we determine is not a multiple of $100, it
we round it to the nearest multiple of $100.
Election Worker Coverage Threshold Amount
Multiplying the 1999 election worker coverage threshold amount
($1,000) by the ratio of the national average wage index for 2013
($44,888.16) to that for 1997 ($27,426.00) produces $1,636.70. We then
round this amount to $1,600. Therefore, the election worker coverage
threshold amount is $1,600 for 2015.
(Catalog of Federal Domestic Assistance: Program Nos. 96.001 Social
Security-Disability Insurance; 96.002 Social Security-Retirement
Insurance; 96.004 Social Security-Survivors Insurance; 96.006
Supplemental Security Income)
Carolyn W. Colvin,
Acting Commissioner of Social Security.
[FR Doc. 2014-25802 Filed 10-28-14; 8:45 am]
BILLING CODE 4191-02-P