[Federal Register Volume 88, Number 203 (Monday, October 23, 2023)]
[Notices]
[Pages 72803-72808]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-23317]
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SOCIAL SECURITY ADMINISTRATION
[Docket No. SSA-2023-0034]
Cost-of-Living Increase and Other Determinations for 2024
AGENCY: Social Security Administration.
ACTION: Notice.
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SUMMARY: Under title II of the Social Security Act (Act), there will be
a 3.2 percent cost-of-living increase in Social Security benefits
effective December 2023. In addition, the national average wage index
for 2022 is $63,795.13. The cost-of-living increase and national
average wage index affect other program parameters as described below.
FOR FURTHER INFORMATION CONTACT: Kathleen K. Sutton, Office of the
Chief Actuary, Social Security Administration, 6401 Security Boulevard,
Baltimore, MD 21235, (410) 965-3000. Information relating to this
announcement is available at www.ssa.gov/oact/cola/index.html. For
information on eligibility or claiming benefits, call 1-800-772-1213
(TTY 1-800-325-0778) or visit www.ssa.gov.
SUPPLEMENTARY INFORMATION: Because of the 3.2 percent cost-of-living
increase, the following items will increase for 2024:
(1) The maximum Federal Supplemental Security Income (SSI) monthly
payment amounts for 2024 under title XVI of the Act will be $943 for an
eligible individual; $1,415 for an eligible individual with an eligible
spouse; and $472 for an essential person.
(2) The special benefit amount under title VIII of the Act for
certain World War II (WWII) veterans will be $707.25 for 2024.
(3) The student earned income exclusion under title XVI of the Act
will be $2,290 per month in 2024, but not more than $9,230 for all of
2024.
(4) The dollar fee limit for services performed as a representative
payee will be $54 per month ($100 per month in the case of a
beneficiary who is determined to be disabled, has an alcoholism or drug
addiction condition, and is incapable of managing benefits) in 2024.
(5) The assessment (or ``user fee'') dollar limit on the
administrative cost charged when the agency pays authorized
representative fees directly out of a claimant's past due benefits will
be $117, beginning in December 2023.
The national average wage index for 2022 is $63,795.13. This index
affects the following amounts:
(1) The Old-Age, Survivors, and Disability Insurance (OASDI)
contribution and benefit base will be $168,600 for remuneration paid in
2024 and self-employment income earned in tax years beginning in 2024.
(2) The monthly exempt amounts under the OASDI retirement earnings
test for tax years ending in calendar year 2024 will be $1,860 for
beneficiaries who will attain their Normal Retirement Age (NRA)
(defined in the Retirement Earnings Test Exempt Amounts section below)
after 2024 and $4,960 for those who attain NRA in 2024.
(3) The dollar amounts (bend points) used in the primary insurance
amount (PIA) formula for workers who become eligible for benefits or
who die before becoming eligible, in 2024, will be $1,174 and $7,078.
(4) The bend points used in the formula for computing maximum
family benefits for workers who become eligible for retirement
benefits, or who die before becoming eligible, in 2024, will be $1,500,
$2,166, and $2,825.
(5) The taxable earnings a person must have in 2024 to be credited
with a quarter of coverage will be $1,730.
(6) The ``old-law'' contribution and benefit base under title II of
the Act will be $125,100 for 2024.
(7) The monthly amount of earnings deemed to constitute substantial
gainful activity (SGA) for statutorily blind people in 2024 will be
$2,590. The corresponding amount of earnings for non-blind people with
a determined disability will be $1,550.
(8) The earnings threshold establishing a month as a part of a
trial work period will be $1,110 for 2024.
(9) Coverage thresholds for 2024 will be $2,700 for domestic
workers and $2,300 for election officials and election workers.
According to section 215(i)(2)(D) of the Act, we must publish the
benefit increase percentage and the revised table of ``special
minimum'' benefits within 45 days after the close of the third calendar
quarter of 2023.
We must also publish the following by November 1: the national
average wage index for 2022 (215(a)(1)(D)), the OASDI fund ratio for
2023 (section 215(i)(2)(C)(ii)), the OASDI contribution and benefit
base for 2024 (section 230(a)), the earnings required to be credited
with a quarter of coverage in 2024 (section 213(d)(2)), the monthly
exempt amounts under the Social Security retirement earnings test for
2024 (section 203(f)(8)(A)), the formula for computing a PIA for
workers who first become eligible for benefits or die in 2024 (section
215(a)(1)(D)), and the formula for computing the maximum benefits
payable to the family of a worker who first becomes eligible for old-
age benefits or dies in 2024 (section 203(a)(2)(C)).
Cost-of-Living Increases
General
The cost-of-living increase is 3.2 percent for monthly benefits
under title II and for monthly payments under title XVI of the Act.
Under title II, OASDI monthly benefits will increase by 3.2 percent for
individuals eligible for December 2023 benefits, payable in January
2024 and thereafter. We base this increase on the authority contained
in section 215(i) of the Act.
Pursuant to section 1617 of the Act, Federal SSI benefit rates will
also increase by 3.2 percent effective for payments made for January
2024 but paid on December 29, 2023.
Computation
Computation of the cost-of-living increase is based on an increase
in a Consumer Price Index (CPI) produced by the Bureau of Labor
Statistics. At the time the Act was amended to provide automatic cost-
of-living increases starting in 1975, only one CPI existed, namely the
index now referred to as CPI for Urban Wage Earners and Clerical
Workers (CPI-W). Although the Bureau of Labor Statistics has since
developed other CPIs, we follow precedent by continuing to use the CPI-
W. We refer to this index in the following paragraphs as the CPI.
Section 215(i)(1)(B) of the Act defines a ``computation quarter''
to be a third calendar quarter in which the average CPI exceeded the
average CPI in the previous computation quarter. The last cost-of-
living increase, effective for those eligible to receive title II
benefits for December 2022, was based on the CPI increase from the
third quarter of 2021 to the third quarter of 2022. Therefore, the last
computation quarter is the third quarter of 2022. The law states that a
cost-of-living increase for benefits is determined based on the
percentage increase, if any, in the CPI from the last computation
quarter to the third quarter of the current year. Therefore, we compute
the increase in the CPI from the third quarter of 2022 to the third
quarter of 2023.
[[Page 72804]]
Section 215(i)(1) of the Act states that the CPI for a cost-of-
living computation quarter is the arithmetic mean of this index for the
3 months in that quarter. In accordance with 20 CFR 404.275, we round
the arithmetic mean, if necessary, to the nearest 0.001. The CPI for
each month in the quarter ending September 30, 2022, the last
computation quarter, is: for July 2022, 292.219; for August 2022,
291.629; and for September 2022, 291.854. The arithmetic mean for the
calendar quarter ending September 30, 2022, is 291.901. The CPI for
each month in the quarter ending September 30, 2023, is: for July 2023,
299.899; for August 2023, 301.551; and for September 2023, 302.257. The
arithmetic mean for the calendar quarter ending September 30, 2023, is
301.236. The CPI for the calendar quarter ending September 30, 2023,
exceeds that for the calendar quarter ending September 30, 2022, by 3.2
percent (rounded to the nearest 0.1). Therefore, beginning December
2023, a cost-of-living benefit increase of 3.2 percent is effective for
benefits under title II of the Act.
Section 215(i) also specifies that a benefit increase under title
II, effective for December of any year, will be limited to the increase
in the national average wage index for the prior year if the OASDI fund
ratio for that year is below 20.0 percent. The OASDI fund ratio for a
year is the ratio of the combined asset reserves of the OASI and DI
Trust Funds at the beginning of that year to the combined cost of the
programs during that year. For 2023, the OASDI fund ratio is reserves
of $2,829,887 million divided by estimated cost of $1,389,484 million,
or 203.7 percent. Because the 203.7 percent OASDI fund ratio exceeds
20.0 percent, the benefit increase for December 2023 is not limited to
the increase in the national average wage index.
Program Amounts That Change Based on the Cost-of-Living Increase
The following program amounts change based on the cost-of-living
increase: (1) title II benefits; (2) title XVI payments; (3) title VIII
benefits; (4) the student earned income exclusion; (5) the fee for
services performed by a representative payee; and (6) the appointed
representative fee assessment.
Title II Benefit Amounts
In accordance with section 215(i) of the Act, for workers and
family members for whom eligibility for benefits (that is, the worker's
attainment of age 62, or disability or death before age 62) occurred
before 2024, benefits will increase by 3.2 percent beginning with
benefits for December 2023, which are payable in January 2024. For
those first eligible after 2023, the 3.2 percent increase will not
apply.
For eligibility after 1978, we determine benefits using a formula
provided by the Social Security Amendments of 1977 (Pub. L. 95-216), as
described later in this notice.
For eligibility before 1979, we determine benefits by using a
benefit table. The table is available at www.ssa.gov/oact/ProgData/tableForm.html or by writing to: Social Security Administration, Office
of Public Inquiries and Communications Support, 1100 West High Rise,
6401 Security Boulevard, Baltimore, MD 21235.
Section 215(i)(2)(D) of the Act requires that, when we determine an
increase in Social Security benefits, we will publish in the Federal
Register a revision of the range of the PIAs and maximum family
benefits based on the dollar amount and other provisions described in
section 215(a)(1)(C)(i). We refer to these benefits as ``special
minimum'' benefits. These benefits are payable to certain individuals
with long periods of low earnings. To qualify for these benefits, an
individual must have at least 11 years of coverage. To earn a year of
coverage for purposes of the special minimum benefit, a person must
earn at least a certain proportion of the old-law contribution and
benefit base (described later in this notice). For years before 1991,
the proportion is 25 percent; for years after 1990, it is 15 percent.
In accordance with section 215(a)(1)(C)(i), the table below shows the
revised range of PIAs and maximum family benefit amounts after the 3.2
percent benefit increase.
Special Minimum PIAs and Maximum Family Benefits Payable for December
2023
------------------------------------------------------------------------
Maximum
Number of years of coverage PIA family
benefit
------------------------------------------------------------------------
11................................................ $50.90 $77.80
12................................................ 104.30 158.20
13................................................ 157.90 238.70
14................................................ 211.10 318.50
15................................................ 264.10 398.20
16................................................ 318.00 478.70
17................................................ 371.50 559.40
18................................................ 424.80 639.20
19................................................ 478.20 719.60
20................................................ 531.90 799.00
21................................................ 585.40 880.10
22................................................ 638.40 959.80
23................................................ 692.80 1,041.40
24................................................ 746.10 1,120.80
25................................................ 799.00 1,200.50
26................................................ 853.40 1,281.80
27................................................ 906.10 1,361.90
28................................................ 959.60 1,441.70
29................................................ 1,013.20 1,522.50
30................................................ 1,066.50 1,601.70
------------------------------------------------------------------------
Title XVI Payment Amounts
In accordance with section 1617 of the Act, the Federal benefit
rates used in computing Federal SSI payments for the aged, blind, and
disabled will increase by 3.2 percent effective January 2024. For 2023,
we determined the monthly payment amounts to be--$914 for an eligible
individual, $1,371 for an eligible individual with an eligible spouse,
and $458 for an essential person. These amounts were derived from
yearly, unrounded Federal SSI payment amounts of $10,970.44,
$16,453.84, and $5,497.80, respectively. For 2024, these yearly
unrounded amounts increase by 3.2 percent to $11,321.49, $16,980.36,
and $5,673.73, respectively. We must round each of these resulting
amounts, when not a multiple of $12, to the next lower multiple of $12.
Therefore, the annual amounts, effective for 2024, are $11,316,
$16,980, and $5,664. Dividing the yearly amounts by 12 gives the
respective monthly amounts for 2024--$943, $1,415, and $472. For an
eligible individual with an eligible spouse, we equally divide the
amount payable between the two spouses.
Title VIII Benefit Amount
Title VIII of the Act provides for special benefits to certain WWII
veterans who reside outside the United States. Section 805 of the Act
provides that ``[t]he benefit under this title payable to a qualified
individual for any month shall be in an amount equal to 75 percent of
the Federal benefit rate [the maximum amount for an eligible
individual] under title XVI for the month, reduced by the amount of the
qualified individual's benefit income for the month.'' Therefore, the
maximum monthly benefit for 2024 under this provision is 75 percent of
$943, or $707.25.
Student Earned Income Exclusion
Children who are blind or have a determined disability can have
limited earnings that do not count against their SSI payments if they
are students regularly attending school, college, university, or a
course of vocational or technical training. The maximum
[[Page 72805]]
amount of such income that we may exclude in 2023 is $2,220 per month,
but not more than $8,950 in all of 2023. These amounts increase based
on a formula set forth in regulation 20 CFR 416.1112.
To compute each of the monthly and yearly maximum amounts for 2024,
we increase the unrounded amount for 2023 by the latest cost-of-living
increase. If the calculated amount is not a multiple of $10, we round
it to the nearest multiple of $10. The unrounded monthly amount for
2023 is $2,219.60. We increase this amount by 3.2 percent to $2,290.63,
which we then round to $2,290. Similarly, we increase the unrounded
yearly amount for 2023, $8,947.18, by 3.2 percent to $9,233.49 and
round this to $9,230. Therefore, the maximum amount of the income
exclusion applicable to a student in 2024 is $2,290 per month, but not
more than $9,230 in all of 2024.
Fee for Services Performed as a Representative Payee
Sections 205(j)(4)(A)(i) and 1631(a)(2)(D)(i) of the Act permit a
qualified organization to collect a monthly fee from a beneficiary for
expenses incurred in providing services as the beneficiary's
representative payee. In 2023, the fee is limited to the lesser of: (1)
10 percent of the monthly benefit involved; or (2) $52 each month ($97
each month when the beneficiary is entitled to disability benefits, has
an alcoholism or drug addiction condition, and is incapable of managing
such benefits). The dollar fee limits are subject to increase by the
cost-of-living increase, with the resulting amounts rounded to the
nearest whole dollar amount. Therefore, we increase the current amounts
by 3.2 percent to $54 and $100 for 2024.
Appointed Representative Fee Assessment
Under sections 206(d) and 1631(d) of the Act, whenever the agency
pays authorized representative fees directly out of a claimant's past
due benefits, we must impose an assessment (or ``user fee'') to cover
administrative costs. The user fee applied is the lower amount of 6.3
percent of the representative's authorized fee or a dollar amount that
is subject to the cost-of-living increase. We derive the dollar limit
for December 2023, by increasing the unrounded limit for December 2022,
$113.62, by 3.2 percent, which is $117.26. We then round $117.26 to the
next lower multiple of $1. The dollar limit effective for December 2023
is, therefore, $117.
National Average Wage Index for 2022
Computation
We determined the national average wage index for calendar year
2022. It is based on the 2021 national average wage index of
$60,575.07, which was published in the Federal Register on October 24,
2022 (87 FR 64296), and on the percentage increase in average wages
from 2021 to 2022, as measured by annual wage data. We tabulate the
annual wage data, including contributions to deferred compensation
plans, as required by section 209(k) of the Act. The average amounts of
wages calculated from these data were $58,129.99 for 2021 and
$61,220.07 for 2022. To determine the national average wage index for
2022 at a level consistent with the national average wage indexing
series for 1951 through 1977 (published December 29, 1978, at 43 FR
61016), we multiply the 2021 national average wage index of $60,575.07
by the percentage increase in average wages from 2021 to 2022 (based on
SSA-tabulated wage data) as follows. We round the result to the nearest
cent.
National Average Wage Index Amount
Multiplying the national average wage index for 2021 ($60,575.07)
by the ratio of the average wage for 2022 ($61,220.07) to that for 2021
($58,129.99) produces the 2022 index, $63,795.13. The national average
wage index for calendar year 2022 is about 5.32 percent higher than the
2021 index.
Program Amounts That Change Based on the National Average Wage Index
Under the Act, the following amounts change with annual changes in
the national average wage index: (1) the OASDI contribution and benefit
base; (2) the exempt amounts under the retirement earnings test; (3)
the dollar amounts, or bend points, in the PIA formula; (4) the bend
points in the maximum family benefit formula; (5) the earnings required
to credit a worker with a quarter of coverage; (6) the old-law
contribution and benefit base (as determined under section 230 of the
Act as in effect before the 1977 amendments); (7) the substantial
gainful activity (SGA) amount applicable to statutorily blind
individuals; and (8) the coverage threshold for election officials and
election workers. Additionally, under section 3121(x) of the Internal
Revenue Code, the domestic employee coverage threshold is based on
changes in the national average wage index.
Two amounts also increase under regulatory requirements--the SGA
amount applicable to non-blind individuals with a determined
disability, and the monthly earnings threshold that establishes a month
as part of a trial work period for beneficiaries with a determined
disability.
OASDI Contribution and Benefit Base
General
The OASDI contribution and benefit base is $168,600 for
remuneration paid in 2024 and self-employment income earned in tax
years beginning in 2024. The OASDI contribution and benefit base serves
as the maximum annual earnings on which OASDI taxes are paid. It is
also the maximum annual earnings used in determining a person's OASDI
benefits.
Computation
Section 230(b) of the Act provides the formula used to determine
the OASDI contribution and benefit base. Under the formula, the base
for 2024 is the larger of: (1) the 1994 base of $60,600 multiplied by
the ratio of the national average wage index for 2022 to that for 1992;
or (2) the current base ($160,200). If the resulting amount is not a
multiple of $300, we round it to the nearest multiple of $300.
OASDI Contribution and Benefit Base Amount
Multiplying the 1994 OASDI contribution and benefit base ($60,600)
by the ratio of the national average wage index for 2022 ($63,795.13 as
determined above) to that for 1992 ($22,935.42) produces $168,559.59.
We round this amount to $168,600. Because $168,600 exceeds the current
base amount of $160,200, the OASDI contribution and benefit base is
$168,600 for 2024.
Retirement Earnings Test Exempt Amounts
General
We withhold Social Security benefits when a beneficiary under the
NRA has earnings more than the applicable retirement earnings test
exempt amount. The NRA is the age when retirement benefits (before
rounding) are equal to the PIA. The NRA is age 66 for those born in
1943-54. It gradually increases to age 67 for those born in 1960 or
later. A higher exempt amount applies in the year in which a person
attains NRA, but only for earnings in months before such attainment. A
lower exempt amount applies at all other ages below NRA. Section
203(f)(8)(B) of the Act provides formulas for determining the monthly
exempt amounts. The annual exempt amounts are exactly 12 times the
monthly amounts.
[[Page 72806]]
For beneficiaries who attain NRA in the year, we withhold $1 in
benefits for every $3 of earnings over the annual exempt amount for
months before NRA. For all other beneficiaries under NRA, we withhold
$1 in benefits for every $2 of earnings over the annual exempt amount.
Computation
Under the formula that applies to beneficiaries attaining NRA after
2024, the lower monthly exempt amount for 2024 is the larger of: (1)
the 1994 monthly exempt amount multiplied by the ratio of the national
average wage index for 2022 to that for 1992; or (2) the 2023 monthly
exempt amount ($1,770). If the resulting amount is not a multiple of
$10, we round it to the nearest multiple of $10.
Under the formula that applies to beneficiaries attaining NRA in
2024, the higher monthly exempt amount for 2024 is the larger of: (1)
the 2002 monthly exempt amount multiplied by the ratio of the national
average wage index for 2022 to that for 2000; or (2) the 2023 monthly
exempt amount ($4,710). If the resulting amount is not a multiple of
$10, we round it to the nearest multiple of $10.
Lower Exempt Amount
Multiplying the 1994 retirement earnings test monthly exempt amount
of $670 by the ratio of the national average wage index for 2022
($63,795.13) to that for 1992 ($22,935.42) produces $1,863.61. We round
this to $1,860. Because $1,860 exceeds the current exempt amount of
$1,770, the lower retirement earnings test monthly exempt amount is
$1,860 for 2024. The lower annual exempt amount is $22,320 under the
retirement earnings test.
Higher Exempt Amount
Multiplying the 2002 retirement earnings test monthly exempt amount
of $2,500 by the ratio of the national average wage index for 2022
($63,795.13) to that for 2000 ($32,154.82) produces $4,960.00. We round
this to $4,960. Because $4,960 exceeds the current exempt amount of
$4,710, the higher retirement earnings test monthly exempt amount is
$4,960 for 2024. The higher annual exempt amount is $59,520 under the
retirement earnings test.
Primary Insurance Amount Formula
General
The Social Security Amendments of 1977 provided a method for
computing benefits that generally applies when a worker first becomes
eligible for benefits after 1978. This method uses the worker's average
indexed monthly earnings (AIME) to compute the PIA. We adjust the
formula each year to reflect changes in general wage levels, as
measured by the national average wage index.
We also adjust, or index, a worker's earnings to reflect the change
in the general wage levels that occurred during the worker's years of
employment. Such indexing ensures that a worker's future benefit level
will reflect the general rise in the standard of living that will occur
during their working lifetime. To compute the AIME, we first determine
the required number of years of earnings. We then select the number of
years with the highest indexed earnings, add the indexed earnings for
those years, and divide the total amount by the total number of months
in those years. We then round the resulting average amount down to the
next lower dollar amount. The result is the AIME.
Computing the PIA
The PIA is the sum of three separate percentages of portions of the
AIME. In 1979 (the first year the formula was in effect), these
portions were the first $180, the amount between $180 and $1,085, and
the amount above $1,085. We call the dollar amounts in the formula
governing the portions of the AIME the bend points of the formula.
Therefore, the bend points for 1979 were $180 and $1,085.
To obtain the bend points for 2024, we multiply each of the 1979
bend-point amounts by the ratio of the national average wage index for
2022 to that average for 1977. We then round these results to the
nearest dollar. Multiplying the 1979 amounts of $180 and $1,085 by the
ratio of the national average wage index for 2022 ($63,795.13) to that
for 1977 ($9,779.44) produces the amounts of $1,174.21 and $7,077.88.
We round these to $1,174 and $7,078. Therefore, the portions of the
AIME to be used in 2024 are the first $1,174, the amount between $1,174
and $7,078, and the amount above $7,078.
Therefore, for individuals who first become eligible for old-age
insurance benefits or disability insurance benefits in 2024, or who die
in 2024 before becoming eligible for benefits, their PIA will be the
sum of:
(a) 90 percent of the first $1,174 of their AIME, plus (b) 32
percent of their AIME between $1,174 and $7,078, plus (c) 15 percent of
their AIME above $7,078.
We round this amount to the next lower multiple of $0.10 if it is
not already a multiple of $0.10. This formula and the rounding
adjustment are stated in section 215(a) of the Act.
Maximum Benefits Payable to a Family
General
The 1977 amendments continued the policy of limiting the total
monthly benefits that a worker's family may receive based on the
worker's PIA. Those amendments also continued the relationship between
maximum family benefits and PIAs but changed the method of computing
the maximum benefits that may be paid to a worker's family. The Social
Security Disability Amendments of 1980 (Pub. L. 96-265) established a
formula for computing the maximum benefits payable to the family of a
worker with a determined disability. This formula applies to the family
benefits of workers who first become entitled to disability insurance
benefits after June 30, 1980, and who first become eligible for these
benefits after 1978. For workers with determined disabilities who are
initially entitled to disability benefits before July 1980 or whose
disability began before 1979, we compute the family maximum payable the
same as the old-age and survivor family maximum.
Computing the Old-Age and Survivor Family Maximum
The formula used to compute the family maximum is similar to that
used to compute the PIA. It involves computing the sum of four separate
percentages of portions of the worker's PIA. In 1979, these portions
were the first $230, the amount between $230 and $332, the amount
between $332 and $433, and the amount above $433. We refer to such
dollar amounts in the formula as the bend points of the family-maximum
formula.
To obtain the bend points for 2024, we multiply each of the 1979
bend-point amounts by the ratio of the national average wage index for
2022 to that average for 1977. Then we round this amount to the nearest
dollar. Multiplying the amounts of $230, $332, and $433 by the ratio of
the national average wage index for 2022 ($63,795.13) to that for 1977
($9,779.44) produces the amounts of $1,500.38, $2,165.77, and
$2,824.63. We round these amounts to $1,500, $2,166, and $2,825.
Therefore, the portions of the PIAs to be used in 2024 are the first
$1,500, the amount between $1,500 and $2,166, the amount between $2,166
and $2,825, and the amount above $2,825.
So, for the family of a worker who becomes age 62 or dies in 2024
before age 62, we compute the total benefits payable to them so that it
does not exceed:
(a) 150 percent of the first $1,500 of the worker's PIA, plus
[[Page 72807]]
(b) 272 percent of the worker's PIA between $1,500 and $2,166, plus
(c) 134 percent of the worker's PIA between $2,166 and $2,825, plus
(d) 175 percent of the worker's PIA above $2,825.
We then round this amount to the next lower multiple of $0.10 if it
is not already a multiple of $0.10. This formula and the rounding
adjustment are stated in section 203(a) of the Act.
Quarter of Coverage Amount
General
The earnings required for a quarter of coverage in 2024 is $1,730.
A quarter of coverage is the basic unit for determining if a worker is
insured under the Social Security program. For years before 1978, we
generally credited an individual with (1) a quarter of coverage for
each quarter in which they were paid wages of $50 or more or (2) four
quarters of coverage for every tax year in which they earned $400 or
more of self-employment income. Beginning in 1978, employers generally
report wages annually instead of quarterly. With the change to yearly
reporting, section 352(b) of the Social Security Amendments of 1977
amended section 213(d) of the Act to provide that a quarter of coverage
would be credited for each $250 of an individual's total wages and
self-employment income for calendar year 1978 up to a maximum of four
quarters of coverage for the year. The amendment also provided a
formula for years after 1978.
Computation
Under the prescribed formula, the quarter of coverage amount for
2024 is the larger of: (1) the 1978 amount of $250 multiplied by the
ratio of the national average wage index for 2022 to that for 1976; or
(2) the current amount ($1,640). Section 213(d) provides that if the
resulting amount is not a multiple of $10, we round it to the nearest
multiple of $10.
Quarter of Coverage Amount
Multiplying the 1978 quarter of coverage amount ($250) by the ratio
of the national average wage index for 2022 ($63,795.13) to that for
1976 ($9,226.48) produces $1,728.59. We then round this amount to
$1,730. Because $1,730 exceeds the current amount of $1,640, the
quarter of coverage amount is $1,730 for 2024.
Old-Law Contribution and Benefit Base
General
The old-law contribution and benefit base for 2024 is $125,100.
This base would have been effective under the Act without the enactment
of the 1977 amendments.
The old-law contribution and benefit base is used by:
(a) the Railroad Retirement program to determine certain tax
liabilities and tier II benefits payable under that program to
supplement the tier I payments that correspond to basic Social Security
benefits,
(b) the Pension Benefit Guaranty Corporation to determine the
maximum amount of pension guaranteed under the Employee Retirement
Income Security Act (section 230(d) of the Act),
(c) Social Security to determine a year of coverage in computing
the special minimum benefit, as described earlier, and
(d) Social Security to compute benefits for people who are also
eligible and receiving pensions based on employment not covered under
section 210 of the Act. We credit a year of coverage, for this purpose
only, for each year in which earnings equal or exceed 25 percent of the
old-law base.
Computation
The old-law contribution and benefit base is the larger of: (1) the
1994 old-law base ($45,000) multiplied by the ratio of the national
average wage index for 2022 to that for 1992; or (2) the current old-
law base ($118,800). If the resulting amount is not a multiple of $300,
we round it to the nearest multiple of $300.
Old-Law Contribution and Benefit Base Amount
Multiplying the 1994 old-law contribution and benefit base
($45,000) by the ratio of the national average wage index for 2022
($63,795.13) to that for 1992 ($22,935.42) produces $125,168.01. We
round this amount to $125,100. Because $125,100 exceeds the current
amount of $118,800, the old-law contribution and benefit base is
$125,100 for 2024.
Substantial Gainful Activity Amounts
General
A finding of disability under titles II and XVI of the Act requires
that a person, except for a child with a disability determined under
title XVI, be unable to engage in SGA. A person who is earning more
than a certain monthly amount is ordinarily considered to be engaging
in SGA. The monthly earnings considered as SGA depends on the nature of
a person's disability. Section 223(d)(4)(A) of the Act specifies the
formula for determining the SGA amount for statutorily blind
individuals under title II while our regulations (20 CFR 404.1574 and
416.974) specify the formula for determining the SGA amount for non-
blind individuals with a determined disability.
Computation
The monthly SGA amount for statutorily blind individuals under
title II for 2024 is the larger of: (1) the amount for 1994 multiplied
by the ratio of the national average wage index for 2022 to that for
1992; or (2) the amount for 2023. The monthly SGA amount for non-blind
individuals with a determined disability for 2024 is the larger of: (1)
the amount for 2000 multiplied by the ratio of the national average
wage index for 2022 to that for 1998; or (2) the amount for 2023. In
either case, if the resulting amount is not a multiple of $10, we round
it to the nearest multiple of $10.
SGA Amount for Statutorily Blind Individuals
Multiplying the 1994 monthly SGA amount for statutorily blind
individuals ($930) by the ratio of the national average wage index for
2022 ($63,795.13) to that for 1992 ($22,935.42) produces $2,586.81. We
then round this amount to $2,590. Because $2,590 exceeds the current
amount of $2,460, the monthly SGA amount for statutorily blind
individuals is $2,590 for 2024.
SGA Amount for Non-Blind Individuals Who Have a Determined Disability
Multiplying the 2000 monthly SGA amount for non-blind individuals
with a determined disability ($700) by the ratio of the national
average wage index for 2022 ($63,795.13) to that for 1998 ($28,861.44)
produces $1,547.28. We then round this amount to $1,550. Because $1,550
exceeds the current amount of $1,470, the monthly SGA amount for non-
blind individuals with a determined disability is $1,550 for 2024.
Trial Work Period Earnings Threshold
General
During a trial work period of 9 months in a rolling 60-month
period, a beneficiary receiving Social Security disability benefits may
test their ability to work and still receive monthly benefit payments.
To be considered a trial work period month, earnings must be over a
certain level. In 2024, any month in which earnings exceed $1,110 is
considered a month of services for an individual's trial work period.
Computation
The method used to determine the new amount is set forth in our
regulations at 20 CFR 404.1592(b).
[[Page 72808]]
Monthly earnings in 2024, used to determine whether a month is part of
a trial work period, is the larger of: (1) the amount for 2001 ($530)
multiplied by the ratio of the national average wage index for 2022 to
that for 1999; or (2) the amount for 2023. If the resulting amount is
not a multiple of $10, we round it to the nearest multiple of $10.
Trial Work Period Earnings Threshold Amount
Multiplying the 2001 monthly earnings threshold ($530) by the ratio
of the national average wage index for 2022 ($63,795.13) to that for
1999 ($30,469.84) produces $1,109.67. We then round this amount to
$1,110. Because $1,110 exceeds the current amount of $1,050, the
monthly earnings threshold is $1,110 for 2024.
Domestic Employee Coverage Threshold
General
The minimum amount a domestic worker must earn so that such
earnings are covered under Social Security or Medicare is the domestic
employee coverage threshold. For 2024, this threshold is $2,700.
Section 3121(x) of the Internal Revenue Code provides the formula for
increasing the threshold.
Computation
Under the formula, the domestic employee coverage threshold for
2024 is equal to the 1995 amount of $1,000 multiplied by the ratio of
the national average wage index for 2022 to that for 1993. If the
resulting amount is not a multiple of $100, we round it to the next
lower multiple of $100.
Domestic Employee Coverage Threshold Amount
Multiplying the 1995 domestic employee coverage threshold ($1,000)
by the ratio of the national average wage index for 2022 ($63,795.13)
to that for 1993 ($23,132.67) produces $2,757.79. We then round this
amount to $2,700. Therefore, the domestic employee coverage threshold
amount is $2,700 for 2024.
Election Official and Election Worker Coverage Threshold
General
The minimum amount an election official and election worker must
earn so the earnings are covered under Social Security or Medicare is
the election official and election worker coverage threshold. For 2024,
this threshold is $2,300. Section 218(c)(8)(B) of the Act provides the
formula for increasing the threshold.
Computation
Under the formula, the election official and election worker
coverage threshold for 2024 is equal to the 1999 amount of $1,000
multiplied by the ratio of the national average wage index for 2022 to
that for 1997. If the amount we determine is not a multiple of $100, we
round it to the nearest multiple of $100.
Election Official and Election Worker Coverage Threshold Amount
Multiplying the 1999 coverage threshold amount ($1,000) by the
ratio of the national average wage index for 2022 ($63,795.13) to that
for 1997 ($27,426.00) produces $2,326.08. We then round this amount to
$2,300. Therefore, the election official and election worker coverage
threshold amount is $2,300 for 2024.
(Catalog of Federal Domestic Assistance: Program Nos. 96.001 Social
Security-Disability Insurance; 96.002 Social Security-Retirement
Insurance; 96.004 Social Security-Survivors Insurance; 96.006
Supplemental Security Income)
The Acting Commissioner of the Social Security Administration,
Kilolo Kijakazi, Ph.D., M.S.W., having reviewed and approved this
document, is delegating the authority to electronically sign this
document to Faye I. Lipsky, who is a Federal Register Liaison for SSA,
for purposes of publication in the Federal Register.
Faye I. Lipsky,
Federal Register Liaison, Office of Legislation and Congressional
Affairs, Social Security Administration.
[FR Doc. 2023-23317 Filed 10-20-23; 8:45 am]
BILLING CODE 4191-02-P