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Fact Sheet
Social Security
2003 SOCIAL SECURITY
CHANGES
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
|
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