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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.
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.
© 2021 John Grobe. All rights reserved. This article
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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.
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