Monthly Social Security and Supplemental Security Income benefits for more
than 51 million Americans will increase 2.1 percent in 2004, the Social Security
Administration announced today.
Social Security and Supplemental Security Income benefits increase automatically
each year, based on the rise in the Bureau of Labor Statistics Consumer
Price Index for Urban Wage Earners and Clerical Workers (CPI-W), from the third
quarter of the prior year to the corresponding period of the current year. This
year's increase in the CPI-W was 2.1 percent.
The 2.1 percent cost-of-living adjustment (COLA) will begin with benefits that
47 million Social Security beneficiaries receive in January 2004. Increased
payments to 7 million Supplemental Security Income beneficiaries will begin
on December 31.
Some other changes 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 $87,900
from $87,000 in 2003. Of the estimated 156 million workers who will pay Social
Security taxes in 2004, about 9.2 million will pay higher taxes as a result
of the increase in the taxable maximum in 2004.
Information about Medicare changes for 2004 can be found at www.hhs.gov
the site for the Department of Health and Human Services.