Social Security Changes for 2012

By on October 20, 2011 in Current Events, Retirement with 19 Comments

Lost in the interest over the 3.6% COLA announced by Social Security (and reported in FedSmith) on Wednesday, October 19th, are several other Social Security changes for 2012. OPM followed Social Security’s COLA announcement with their own, but has not yet announced any other changes in benefits or limits.

Here are the additional Social Security changes.

  2011 2012
Amount of income out of which SS payroll taxes are taken

$106,800

$110,100

Amount needed to earn a quarter of coverage (credit)

$1,120

$1,130

Earnings test from age 62 until the year full retirement
age is reached

$14,160

$14,640

Earnings test in year full retirement age is reached

$37,680

$38,880

Substantial gainful activity for disability recipient

$1,000

$1,010

Medicare has not yet released changes in their amounts, but is expected to do so soon.

John Grobe’s latest book, The Answer Book on Your Federal Employee Benefits, has just been released by LRP Publications. The book is written in an easy to understand question and answer format and covers all areas of federal benefits from the perspective of an employee at various stages of their career. Order your copy at shoplrp.com.

© 2016 John Grobe. All rights reserved. This article may not be reproduced without express written consent from John Grobe.

About the Author

John Grobe is President of Federal Career Experts, a consulting firm that specializes in federal retirement and career transition issues. He is also affiliated with TSP Safety Net. John retired from federal service after 25 years of progressively more responsible human resources positions. He is the author of Understanding the Federal Retirement Systems and Career Transition: A Guide for Federal Employees, both published by the Federal Management Institute. Federal Career Experts provides pre-retirement seminars for a wide variety of federal agencies.

Top