Fact Sheet
Social Security

Cost-of-Living Adjustment (COLA):

Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2001 through the third quarter of 2002, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 1.4 percent COLA for 2003. Other important 2003 Social Security information is as follows:

Tax Rate

2002

2003

Employee

7.65%

7.65%

Self-Employed

15.30%

15.30%

NOTE: The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings.

Maximum Earnings Taxable:

2002

2003

Social Security (OASDI only)

$84,900

$87.000

Medicare (HI only)

No Limit

Quarter of Coverage:

2002

2003

Earnings required

$870

$890

Retirement Earnings Test Exempt Amounts:

2002

2003

Under full retirement age
NOTE: One dollar in benefits will be withheld for every $2 in earnings above the limit.

$11,280/yr.
($940/mo.)

$11,520/yr.
($960/mo.)

Year individual reaches full retirement age
NOTE: Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.

$30,000/yr.
($2,500/mo.)

$30,720/yr.
($2,560/mo.)

There is no limit on earnings beginning the month an individual attains full retirement age (65 for retirees born in 1937; 65 and 2 months for those born in 1938).

Social Security Disability Thresholds

2002

2003

Substantial Gainful Activity (SGA)

Non-Blind

$780/mo.

$800/mo.

Blind

$1,300/mo.

$1,330/mo.

Trial Work Period (TWP)

$560/mo.

$570/mo.

Maximum Social Security Benefit:
Worker Retiring at Full Retirement Age in

January 2002
(Age 65)

March 2003
(Age 65 and 2 months)

NOTE: For retirees born in 1937, full retirement age is 65; for those born in 1938, it is 65 and 2 months. Full retirement age will gradually increase to age 67 for those born in 1960 or later.

$1,660/mo.

$1,741/mo.

SSI Federal Payment Standard:

2002

2003

Individual

$545/mo.

$552/mo.

Couple

$817/mo

$829/mo.

SSI Resources Limits:

2002

2003

Individual

$2,000

$2,000

Couple

$3,000

$3,000

SSI Student Exclusion Limits:

2002

2003

Monthly Limit

$1,320

$1,340

Annual Limit

$5,340

$5,410

Estimated Average Monthly Social Security Benefits
Payable in January 2003:

Before
1.4% COLA

After
1.4% COLA

All Retired Workers

$ 882

$895

Aged Couple, Both Receiving Benefits

$1,463

$1,483

Widowed Mother and Two Children

$1,812

$1,838

Aged Widow(er) Alone

$ 850

$ 862

Disabled Worker, Spouse and
One or More Children

$1,376

$1,395

All Disabled Workers

$ 822

$ 833