The Social Security Administration has announced the Cost-of-Living Adjustment (COLA) for 2022. Social Security recipients will get a cost of living increase of 5.9%, the largest increase since 1982.
The PRESS RELEASE states:
The 5.9% COLA can be applied by multiplying the current award amount by 1.059.
For management staff, be sure to apply the COLA to benefits for the appropriate number of months based on the effective date of the certification.
Example:
Mrs. Smith would like to move in on November 1, 2021. Her 2021 gross Social Security monthly amount is $1,050. You will calculate her Social Security income as follows:
$1,050 x 2 = $2,100 (November and December 2020)
$1,050 x 1.059 = $1,111.95 (2021 monthly amount)
$1,111.95 x 10 = $11,119.50 (January to October 2021)
$2,100 + $11,119.50 = $13,219.50 (12 months)
If you have already processed files for move-in during January 2022, it is recommended that you review the household income and apply the COLA to benefits issued by the Social Security Administration since it is a known anticipated change in income.
