NPN benefitsBlog

2009 COLA Jumps 5.8%

SSA announced Thursday, October 16 that the Cost-of-Living Adjustment (COLA) increases for next year will increase Social Security and SSI benefit programs by 5.8 percent. The COLA is the largest increase since 1982.

In 2009, the average SSDI monthly check for a worker who is disabled will be $1064, up from $1006 in 2008. The Federal Benefit Rate (FBR) for Supplemental Security Income (SSI) will rise next year to $674 a month for an individual, from $637,  and to $1011 for a couple from $956.

Several work-incentive related provisions which are also indexed to the CPI that is the basis for federal COLA adjustments will rise too. The SGA level that indicates so-called substantial work earnings has been raised to $980 per month. People who are disabled because of blindness have a higher threshold of $1,640 in 2009.

The amount of earned income that indicates a trail-work-period service month is up in the coming year to $700. The trial-work period is 9 service months spread over a 5-year period and permits an individual to test their ability to work without losing SSDI benefits.

Students with disabilities on SSI will now be able to deduct significant earnings under the Student Earned Income Exclusion excluding the first $1,640 of earned income in a month and up to $6,600 in 2009 when they work.

SSA Fact sheet on COLA

Federal Register announcement

SSI Rules on Income/ Resources Changed

The Social Security Administration has made some "minor" changes to the Supplemental Security Income program rules. The new rules change the way that SSA counts certain kinds of income and resources under the program. SSA has made three modifications:

1. Eliminated clothing from being considered income when given as a gift.
2. Changing the way resources are counted by eliminating the dollar value limit for the previous $2000 of household goods and personal effects.
3. Change the way that automobiles are counted as resources by not counting the value of 1 automobile regardless of the value.

SSA is correct to make these modifications to its rules. The current rules are quite intrusive especially the rules for cars. Some adapted vans can usually exceed the current value limits of $4,500 used since 1979. Too, there should not be the highly subjective evaluation that the vehicle be used for essential daily activities--what else could a car/ van be used for? The changes should simplify excessive SSA rules and improve SSA's work efficiency without significantly increasing the SSI program costs.

The final rules can be found in the Federal Register