Social Security Changes for 2012

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.

FedSmith.com author John GrobeBy Categories Current Events, Retirement Leave a comment

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.

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About the Author

John Grobe is President of Federal Career Experts, a firm that provides pre-retirement training and seminars to a wide variety of federal agencies. FCE’s instructors are all retired federal retirement specialists who educate class participants on the ins and outs of federal retirement and benefits; there is never an attempt to influence participants to invest a certain way, or to purchase any financial products. John and FCE specialize in retirement for special category employees, such as law enforcement officers.