2013 SS COLA

Written by Erik Whitton, Spectrum Enterprises

On 10/16/2012 the Social Security Administration (SSA) announced the 2013 cost of living adjustment (COLA) of 1.7%.  Read about it by clicking this link.

This is an increase in the monthly benefit received by 62 million people in the US who receive benefits such as SS retirement or SSI disability.  Here is how the SSA describes this increase in benefit income:

Latest COLA

The latest COLA is 1.7 percent for Social Security benefits and SSI payments. Social Security benefits will increase by 1.7 percent beginning with the December 2012 benefits, which are payable in January 2013. Federal SSI payment levels will also increase by 1.7 percent effective for payments made for January 2013. Because the normal SSI payment date is the first of the month and January 1 is a holiday, the SSI payments for January are always made at the end of the previous December.

All TIC forms with an effective date after the COLA announcement must reflect this additional income.  For instance, if someone is moving in on 11/01/2012 you would count 2 months at the current rate and 10 months at the higher rate.  If a person was receiving $1,000 monthly SS income here’s how your math should look:

$1,000 x 2 = $2,000
$1,000 x 1.017 x 10 = $10,170
$2,000 + $10,170 = $12,170

You are required to add this income even though the award letters you have in your file do not show the increased amount.  Make sure all new move in files and recertifications reflect this increased income!

Tags:


Subscribe to Our Blog

 

 Subscribe in a reader