WASHINGTON, DC . . .  The Social Security Administration has announced a 1.7 percent Cost-of-Living Adjustment (COLA) increase in 2015 for recipients of monthly Social Security and Supplemental Security Income (SSI) benefits.  The increase will take effect for Social Security beneficiaries in December 2014, which will be paid in January 2015, and for SSI recipients beginning December 31, 2014.

            The Social Security Act governs the process by which the Social Security Administration determines whether a COLA can be applied to Social Security and Supplemental Security Income benefits. Under the formula provided in the Social Security Act, the COLA is linked to the change in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of one year to the third quarter the following year. The CPI-W increased 1.7 percent from the third quarter of 2013 to third quarter of 2014.

            As a result of this increase, according to the Social Security Administration, the estimated average monthly benefit for Social Security beneficiaries will rise from $1,306 to $1,328.  The maximum Federal Supplemental Security Income (SSI) monthly payment to an individual will rise from $721 to $733. For a couple, the maximum Federal SSI payment will increase from $1,082 to $1,100.  Additionally, based on this increase, the maximum amount of earnings subject to the Social Security tax will increase from $117,000 to $118,500.

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