Social Security Changes for 2012

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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



Amount needed to earn a quarter of coverage (credit)



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



Earnings test in year full retirement age is reached



Substantial gainful activity for disability recipient



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

Agencies can request to have John Grobe, or another of Federal Career Experts' qualified instructors, deliver a retirement or transition seminar to their employees. FCE instructors are not financial advisers and will not sell or recommend financial products to class participants. Agency Benefits Officers can contact John Grobe at [email protected] to discuss schedules and costs.

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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.