Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 5.9 percent in 2022, the Social Security Administration announced.
The 5.9 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2022. Increased payments to approximately 8 million SSI beneficiaries will begin on December 30, 2021. (Note: some people receive both Social Security and SSI benefits). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.
“The New Jersey Workers' Compensation Act permits an offset for social security disability benefits against workers' compensation benefits. For pre-1980 permanent disability, once the social security offset has been applied under the New Jersey Workers' Compensation Act's provision relating to special adjustment benefits, the federal offset requirement is deemed satisfied, and no further reduction on the separate section based upon the claimant's age is warranted. 42.U.S.C.A. § 424(a), as amended by Pub. L. No. 113-295, Div. B, Title II, § 201(a), 128 Stat. 4064 (Dec. 19, 2014).” Gelman, Jon L, Workers’ Compensation Law, 38 NJPRAC 18.1 (Thomson-Reuters 2021).
Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $147,000 from $142,800.
Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount. Most people who receive Social Security payments will be able to view their COLA notice online through their personal mySocialSecurity account. People may create or access their mySocialSecurity account online at www.socialsecurity.gov/myaccount.
Information about Medicare changes for 2022, when announced, will be available at www.medicare.gov. For Social Security beneficiaries receiving Medicare, Social Security will not be able to compute their new benefit amount until after the Medicare premium amounts for 2022 are announced. Final 2022 benefit amounts will be communicated to beneficiaries in December through the mailed COLA notice and mySocialSecurity's Message Center.
The Social Security Act provides for how the COLA is calculated. To read more, please visit www.socialsecurity.gov/cola.
Recommended Citation: Gelman, Jon L.
, Social Security Announces 5.9 Percent Benefit Increase for 2022, Workers’ Compensation Blog (Oct. 14, 2021), https://workers-compensation.blogspot.com/2021/10/social-security-announces-59-percent.html
Jon L. Gelman of Wayne NJ is the author of NJ Workers’ Compensation Law (West-Thomson-Reuters) and co-author of the national treatise, Modern Workers’ Compensation Law (West-Thomson-Reuters). For over 4 decades the Law Offices of Jon L Gelman 1.973.696.7900 firstname.lastname@example.org has been representing injured workers and their families who have suffered occupational accidents and illnesses.
Blog: Workers ' Compensation
LinkedIn Group: Injured Workers Law & Advocacy Group
Author: "Workers' Compensation Law" West-Thomson-Reuters