Every year, usually in October, the federal government announces the latest Cost of Living Adjustment, fondly referred to as COLA. The new rates are based on the Consumer Price Index, which is really a measure of the average change in prices for the nation’s goods and services.
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 2018, for instance, that means a consumer eligible for Social Security Disability Insurance (SSDI) earning less than $1,180 per month may still be eligible for benefits after his or her Trial Work Period is complete. The new 2018 SGA level for workers who are disabled is $1,180; it’s $1,970 for workers who are blind.
The recent COLA increase led to a slight increase in the SGA, which means your consumer can now earn $10 more per month ($120 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 2017 the maximum SSI payment was $735, but in 2018, we are seeing the largest increase we've had in years. The new Federal Benefit Rate is $750 this year, an increase of $15 per month.
Students with disabilities who are working make up another group affected by COLA if they’re using the Student Earned Income Exclusion. In 2018, Social Security ensures that working students can keep more of their SSI check by not counting up to $1,820 per month ($7,350 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 this year (which we're beginning to see) or possibly next year.
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
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 2018 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.”
And just a heads up: We've switched up the format for our BIN Basic trainings. This year Basic BIN training includes three days of in-person instruction plus a fourth day of online "helpdesk" follow-up and support for attendees. Attendance at and participation in the in-person instruction and online support is required for certification. Cost for this training is $250. BIN Basic trainings will take place in March, June, August, and October. Registration information coming soon!
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.
