Ah, but why should you or your consumers care?
It’s because Social Security’s substantial gainful activity (SGA) level and many of its work incentives are based on the annual COLA rate. In 2017, for instance, that means a consumer eligible for Social Security Disability Insurance (SSDI) earning less than $1,170 per month may still be eligible for benefits after his or her Trial Work Period. The new 2017 SGA level for workers who are disabled is $1,170; it’s $1,950 for workers who are blind.
The recent COLA increase led to a modest increase in the SGA, which means your consumer can now earn $40 more per month ($480 per year) and still qualify for benefits. The bottom line: When the SGA increases, many consumers can earn more and continue to be eligible for benefits.
COLA also affects recipients of Supplemental Security Income (SSI). In 2016 the maximum SSI payment did not increase, but for 2017 it rose a modest .3%, to $735, due to the new cost-of-living rate.
Students with disabilities who are working make up another group affected by COLA if they’re using the Student Earned Income Exclusion. In 2017, Social Security ensures that working students can keep more of their SSI check by not counting up to $1,790 per month ($7,200 annually) of earned income when calculating a student’s monthly SSI payment.
Why, you ask, is the rate increase so small if the economy has improved? Okay, let’s get a little benefits nerdy here. COLA is based on “quarters of coverage” and is averaged over two years. In October 2016, when they set the new rate, it was based on the third quarter of 2014 through the third quarter of 2016. Improvements to the economy (and therefore increasing prices for goods and services) that have occurred more recently won’t be reflected in the COLA rates until 2018 or 2019.
We get it: It’s complicated. That’s why Indiana has resources for workers with disabilities and the people who support them. That means you!
Benefits Information Resources
• 2017 Changes to Social Security (including COLA)
• 2017 Work Incentive Fact Sheets
• Need a refresher on all-thing-benefits? Check out the Center on Community Living and Career’s Benefits Information Network trainings page. There you’ll find a save-the-date flyer for all of our 2017 certified BIN trainings and a link to registration for our February 22-23 workshop, “Social Security and Other Federal and State Benefits: Learning the Basics.”
Have more questions? Contact a Benefits Information Network (BIN) liaison. There are now certified BIN liaisons in place at 62 of Indiana’s 96 community rehabilitation providers. For a referral to a BIN liaison, contact the Center on Community Living and Career’s Kelley Land (our benefits guru) at kelland@indiana.edu.
