SS Beneficiaries to Receive 3.6 Percent Increase in 2012 Cost-of-Living Adjustment

Social Security Law – Federal Law October 19, 2011

Baltimore, Maryland - More than 60 million Americans will get an increase of 3.6 percent in their monthly Social Security and Supplemental Security Income (SSI) benefits in 2012, a statement released from the agency website said.

According to the announcement, the 3.6 percent cost-of-living adjustment (COLA) Social Security beneficiaries will receive these benefits in January 2012, while increased payments to more than 8 million SSI beneficiaries will begin on December 30, 2011.

The agency also said that 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 2012will be available at www.Medicare.gov. For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums.