U.S. Social Security Administration
2001 Social Security Changes
January 2001
This article is part of TheBody.com's archive. Because it contains information that may no longer be accurate, this article should only be considered a historical document.
| Cost-of-Living Adjustment (COLA): |
| Based on the increase in the Consumer
Price Index (CPI-W) from the third quarter of 1999
through the third quarter of 2000, Social Security
beneficiaries and Supplemental Security Income (SSI)
recipients will receive a 3.5 percent COLA for 2001.
Other important 2001 Social Security information is as
follows: |
| |
| Tax Rate: |
2000 |
2001 |
| Employee |
7.65% |
7.65% |
| Self-Employed |
15.30% |
15.30% |
| NOTE: The 7.65% tax rate is the combined
rate for Social Security and Medicare. The Social
Security portion (OASDI) is 6.20% on earnings up to the
applicable maximum taxable amount (see below). The
Medicare portion (HI) is 1.45% on all earnings. |
| |
| Maximum Earnings Taxable: |
2000 |
2001 |
| Social Security (OASDI only) |
$76,200 |
$80,400 |
| Medicare (HI only) |
N o L i m i t |
| |
|
|
| |
2000 |
2001 |
| Quarter of Coverage: |
$780 |
$830 |
| |
| Retirement Earnings Test Exempt
Amounts: |
| As of January 2000, the Retirement
Earnings Test has been eliminated for individuals age
65-69. It remains in effect for those ages 62 through 64.
A modified test applies for the year an individual
reaches age 65. (The Senior Citizens’ Freedom To
Work Act of 2000, signed into law by President Clinton on
April 7, 2000.) |
| |
2000 |
2001 |
Year individual reaches 65
|
$17,000/yr.
($1,417/mo.) |
$25,000/yr.
($2,084/mo.) |
| NOTE: Applies only to earnings for months
prior to attaining age 65. One dollar in benefits will be
withheld for every $3 in earnings above the limit. There
is no limit on earnings beginning the month an individual
attains age 65. |
Under age 65
|
$10,080/yr.
($840/mo.) |
$10,680/yr.
($890/mo.) |
| NOTE: One dollar in benefits will be
withheld for every $2 in earnings above the limit. |
| |
| Maximum Social Security Benefit: |
Worker Retiring at Age 65 in January of 2000 and 2001 |
| |
$1,433/mo. |
$1,536/mo. |
| |
| SSI Federal Payment Standard: |
2000 |
2001 |
| Individual |
$512/mo. |
$530/mo. |
| Couple |
$769/mo. |
$796/mo. |
| |
| SSI Resources Limits: |
2000 |
2001 |
| Individual |
$2,000 |
$2,000 |
| Couple |
$3,000 |
$3,000 |
| |
Estimated Average Monthly
Social Security Benefits: |
Before and After the December 2000
COLA: |
| |
Before
3.5% COLA |
After
3.5% COLA |
| All Retired Workers |
$ 816 |
$ 845 |
| Aged Couple, Both Receiving Benefits |
$1,363 |
$1,410 |
| Widowed Mother and Two Children |
$1,639 |
$1,696 |
| Aged Widow(er) Alone |
$ 783 |
$ 811 |
Disabled Worker, Spouse and
One or More Children |
$1,266 |
$1,310 |
| All Disabled Workers |
$ 759 |
$ 786 |
This article is part of TheBody.com's archive. Because it contains information that may no longer be accurate, this article should only be considered a historical document.
This article was provided by
U.S. Social Security Administration.
E-Mail
Printable Single-Page
Glossary
Share
