Frankly Speaking Blog - North Carolina's First Elder Law Firm tag:typepad.com,2003:weblog-1424181 2011-12-08T10:05:42-05:00 Frankly Speaking Blog by A. Frank Johns and Hannah B. Vaughan of Booth Harrington & Johns of NC PLLC is designed to provide real talk and practical insight into the complex issues of elder law and special needs. TypePad New COLA Takes Effect December 2011 tag:typepad.com,2003:post-6a00e54edf9b6f88330162fd8887cd970d 2011-12-08T10:05:42-05:00 2011-12-08T10:05:42-05:00 By A. Frank Johns JD, LLM, CELA Social Security Income and Social Security Disability Insurance beneficiaries will realize a 3.6% increase in benefit payments starting with the December 2011 payments, which are payable in January 2012. This is a result... Frank Johns

By A. Frank Johns JD, LLM, CELA

Social Security Income and Social Security Disability Insurance beneficiaries will realize a 3.6% increase in benefit payments starting with the December 2011 payments, which are payable in January 2012.  This is a result of a newly implemented cost-of-living adjustment, also known as COLA.  Legislation originally enacted in 1973 provides for cost of living adjustments which enable Social Security (an entitlement program that allows those who pay Social Security taxes during the years in which they work to draw benefits when they reach a certain age) and Supplemental Security Income (also known as SSI; a program designed to provide food, clothing and shelter to those who are aged, blind, or disabled and have little or no income) benefits to keep pace with inflation, (Social Security Online).

This marks the first time a COLA has been implemented since 2008.  Currently, the average monthly Social Security payment for a worker with disabilities is $1,072.  In January 2012, the payment will rise to $1,111.  The federal SSI payment standard will increase to $698 a month for an individual and $1,048 a month for a couple, (Social Security Online).  The SSI resource allowance will remain the same at $2,000 for an individual and $3,000 for a couple, but the amount of money that a person can earn without engaging in Substantial Gainful Activity, which can result in the loss of SSDI or SSI benefits, will increase to $1,010 a month for a person who is a not blind and $1,690 for a person who is blind, (Social Security Online).  A person who is earning more than a certain monthly amount (net of impairment-related work expenses) is ordinarily considered to be engaging in Substantial Gainful Activity (Social Security Online Substantial Gainful Activity).

For more information on how to calculate your COLA, visit http://www.ssa.gov/oact/cola/latest COLA.html.  If you would like to speak with an attorney about how the new COLA will affect you, please call us at (336) 275-9567.  We look forward to serving you!