If you are receiving Disability Insurance Benefits (DIB) or Supplemental Security Income (SSI) benefits you will likely receive an annual increase based on inflation rates. This increase is called a cost-of-living adjustment (COLA). The Social Security Administration (SSA) uses the Consumer Price Index to calculate the value of the COLA. The SSA determines if there has been a percentage change in the Consumer Price Index and will increase benefits by that value. If there is no change in the Consumer Price Index there will be no COLA.
For 2013, the percentage change in the Consumer Price Index was determined to be 1.7%. The SSA increased both DIB and SSI beneficiaries payments by this amount. For example, if you received $1000 per month in 2012 you would be eligible for $1017 per month in 2013. In 2012, the SSI maximum monthly benefit amount was $698. In 2013, this has been increased to $710 per month. More information on the 2013 adjustments can be found in the SSA’s press release “2013 Social Security Changes.”
If you are receiving DIB payments and Medicare your monthly take home total may decrease if healthcare costs rise faster than the COLA increases. If your Medicare premium increases it could total more than the COLA adjustment.
If you are receiving DIB payments and working part time your benefit amount may increase. If you are paying into the SSA system, your earnings could increase your benefit amount. The SSA would calculate your new monthly payment.
For more information on how your DIB and SSI payments may change over time, please view the SSA’s webpage “Changes to my benefit amount.”
