81_FR_75062 81 FR 74854 - Cost-of-Living Increase and Other Determinations for 2017

81 FR 74854 - Cost-of-Living Increase and Other Determinations for 2017

SOCIAL SECURITY ADMINISTRATION

Federal Register Volume 81, Issue 208 (October 27, 2016)

Page Range74854-74859
FR Document2016-26026

Under title II of the Social Security Act (Act), there will be a 0.3 percent cost-of-living increase in Social Security benefits effective December 2016. In addition, the national average wage index for 2015 is $48,098.63. The cost-of-living increase and national average wage index affect other program parameters as described below.

Federal Register, Volume 81 Issue 208 (Thursday, October 27, 2016) 
[Federal Register Volume 81, Number 208 (Thursday, October 27, 2016)]
[Notices]
[Pages 74854-74859]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-26026]


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SOCIAL SECURITY ADMINISTRATION

[Docket No. SSA-2016-0050]


Cost-of-Living Increase and Other Determinations for 2017

AGENCY: Social Security Administration.

ACTION: Notice.

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SUMMARY: Under title II of the Social Security Act (Act), there will be 
a 0.3 percent cost-of-living increase in Social Security benefits 
effective December 2016. In addition, the national average wage index 
for 2015 is $48,098.63. The cost-of-living increase and national 
average wage index affect other program parameters as described below.

FOR FURTHER INFORMATION CONTACT: Susan C. Kunkel, Office of the Chief 
Actuary, Social Security Administration, 6401 Security Boulevard, 
Baltimore, MD 21235, (410) 965-3000. Information relating to this 
announcement is available on our Internet site at 
www.socialsecurity.gov/oact/cola/index.html. For information on 
eligibility or claiming benefits, call 1-800-772-1213 (TTY 1-800-325-
0778), or visit our Internet site at www.socialsecurity.gov.

SUPPLEMENTARY INFORMATION: Because of the 0.3 percent cost-of-living 
increase, the following items will increase for 2017:
    (1) The maximum Federal Supplemental Security Income (SSI) monthly 
benefit amounts for 2017 under title XVI of the Act will be $735 for an 
eligible individual, $1,103 for an eligible individual with an eligible 
spouse, and $368 for an essential person;
    (2) The special benefit amount under title VIII of the Act for 
certain World War II veterans will be $551.25 for 2017;
    (3) The student earned income exclusion under title XVI of the Act 
will be $1,790 per month in 2017, but not more than $7,200 for all of 
2017;
    (4) The dollar fee limit for services performed as a representative 
payee remains at $41 per month ($78 per month in the case of a 
beneficiary who is disabled and has an alcoholism or drug addiction 
condition that leaves him or her incapable of managing benefits) in 
2017; and
    (5) The dollar limit on the administrative-cost fee assessment 
charged to an appointed representative such as an attorney, agent, or 
other person who represents claimants remains at $91 beginning in 
December 2016.
    The national average wage index for 2015 is $48,098.63. This index 
affects the following amounts:
    (1) The Old-Age, Survivors, and Disability Insurance (OASDI) 
contribution and benefit base will be $127,200 for remuneration paid in 
2017 and self-employment income earned in taxable years beginning in 
2017;
    (2) The monthly exempt amounts under the OASDI retirement earnings 
test for taxable years ending in calendar year 2017 will be $1,410 for 
beneficiaries who will attain their Normal Retirement Age (NRA) 
(defined in the Retirement Earnings Test Exempt Amounts section below) 
after 2017 and $3,740 for those who attain NRA in 2017;
    (3) The dollar amounts (``bend points'') used in the primary 
insurance amount (PIA) benefit formula for workers who become eligible 
for benefits, or who die before becoming eligible, in 2017 will be $885 
and $5,336;
    (4) The bend points used in the formula for computing maximum 
family benefits for workers who become eligible for benefits, or who 
die before

[[Page 74855]]

becoming eligible, in 2017 will be $1,131, $1,633, and $2,130;
    (5) The taxable earnings a person must have to be credited with a 
quarter of coverage in 2017 will be $1,300;
    (6) The ``old-law'' contribution and benefit base under title II of 
the Act will be $94,500 for 2017;
    (7) The monthly amount deemed to constitute substantial gainful 
activity (SGA) for statutorily blind persons in 2017 will be $1,950. 
The corresponding amount for non-blind disabled persons will be $1,170;
    (8) The earnings threshold establishing a month as a part of a 
trial work period will be $840 for 2017; and
    (9) Coverage thresholds for 2017 will be $2,000 for domestic 
workers and $1,800 for election officials and election workers.

According to section 215(i)(2)(D) of the Act, we must publish the 
benefit increase percentage and the revised table of ``special 
minimum'' benefits within 45 days after the close of the third calendar 
quarter of 2016. We must also publish the following by November 1: The 
national average wage index for 2015 (215(a)(1)(D)), the OASDI fund 
ratio for 2016 (section 215(i)(2)(C)(ii)), the OASDI contribution and 
benefit base for 2017 (section 230(a)), the earnings required to be 
credited with a quarter of coverage in 2017 (section 213(d)(2)), the 
monthly exempt amounts under the Social Security retirement earnings 
test for 2017 (section 203(f)(8)(A)), the formula for computing a PIA 
for workers who first become eligible for benefits or die in 2017 
(section 215(a)(1)(D)), and the formula for computing the maximum 
benefits payable to the family of a worker who first becomes eligible 
for old-age benefits or dies in 2017 (section 203(a)(2)(C)).

Cost-of-Living Increases

General

    The cost-of-living increase is 0.3 percent for benefits under 
titles II and XVI of the Act. Under title II, OASDI benefits will 
increase by 0.3 percent for individuals eligible for December 2016 
benefits, payable in January 2017. We base this increase on the 
authority contained in section 215(i) of the Act.
    Pursuant to section 1617 of the Act, Federal SSI payment levels 
will also increase by 0.3 percent effective for payments made for 
January 2017 but paid on December 30, 2016.

Computation

    Computation of the cost-of-living increase is based on an increase 
in a Consumer Price Index produced by the Bureau of Labor Statistics. 
At the time the Act was amended to provide cost-of-living increases, 
only one Consumer Price Index existed, namely the Consumer Price Index 
for Urban Wage Earners and Clerical Workers. Although the Bureau of 
Labor Statistics has since developed other consumer price indices, we 
follow precedent by continuing to use the Consumer Price Index for 
Urban Wage Earners and Clerical Workers. We refer to this index in the 
following paragraphs as the CPI.
    Section 215(i)(1)(B) of the Act defines a ``computation quarter'' 
to be a third calendar quarter in which the average CPI exceeded the 
average CPI in the previous computation quarter. The last cost-of-
living increase, effective for those eligible to receive title II 
benefits for December 2014, was based on the CPI increase from the 
third quarter of 2013 to the third quarter of 2014. Therefore, the last 
computation quarter is the third quarter of 2014. The law states that a 
cost-of-living increase for benefits is determined based on the 
percentage increase, if any, in the CPI from the last computation 
quarter to the third quarter of the current year. Therefore, we compute 
the increase in the CPI from the third quarter of 2014 to the third 
quarter of 2016.
    Section 215(i)(1) of the Act states that the CPI for a cost-of-
living computation quarter is the arithmetic mean of this index for the 
3 months in that quarter. In accordance with 20 CFR 404.275, we round 
the arithmetic mean, if necessary, to the nearest 0.001. The CPI for 
each month in the quarter ending September 30, 2014, the last 
computation quarter, is: For July 2014, 234.525; for August 2014, 
234.030; and for September 2014, 234.170. The arithmetic mean for the 
calendar quarter ending September 30, 2014 is 234.242. The CPI for each 
month in the quarter ending September 30, 2016, is: For July 2016, 
234.771; for August 2016, 234.904; and for September 2016, 235.495. The 
arithmetic mean for the calendar quarter ending September 30, 2016 is 
235.057. The CPI for the calendar quarter ending September 30, 2016, 
exceeds that for the calendar quarter ending September 30, 2014 by 0.3 
percent (rounded to the nearest 0.1). Therefore, beginning December 
2016 a cost-of-living benefit increase of 0.3 percent is effective for 
benefits under title II of the Act.
    Section 215(i) also specifies that a benefit increase under title 
II, effective for December of any year, will be limited to the increase 
in the national average wage index for the prior year if the OASDI fund 
ratio for that year is below 20.0 percent. The OASDI fund ratio for a 
year is the ratio of the combined assets of the OASDI Trust Funds at 
the beginning of that year to the combined expenditures of these funds 
during that year. For 2016, the OASDI fund ratio is assets of 
$2,812,510 million divided by estimated expenditures of $924,944 
million, or 304.1 percent. Because the 304.1 percent OASDI fund ratio 
exceeds 20.0 percent, the benefit increase for December 2016 is not 
limited.

Program Amounts That Change Based on the Cost-of-Living Increase

    The following program amounts change based on the cost-of-living 
increase: (1) Title II benefits; (2) title XVI benefits; (3) title VIII 
benefits; (4) the student earned income exclusion; (5) the fee for 
services performed by a representative payee; and (6) the appointed 
representative fee assessment.

Title II Benefit Amounts

    In accordance with section 215(i) of the Act, for workers and 
family members for whom eligibility for benefits (that is, the worker's 
attainment of age 62, or disability or death before age 62) occurred 
before 2017, benefits will increase by 0.3 percent beginning with 
benefits for December 2016, which are payable in January 2017. For 
those first eligible after 2016, the 0.3 percent increase will not 
apply.
    For eligibility after 1978, we determine benefits using a formula 
provided by the Social Security Amendments of 1977 (Pub. L. 95-216), as 
described later in this notice.
    For eligibility before 1979, we determine benefits by using a 
benefit table. The table is available on the Internet at 
www.socialsecurity.gov/oact/ProgData/tableForm.html or by writing to: 
Social Security Administration, Office of Public Inquiries, Windsor 
Park Building, 6401 Security Boulevard, Baltimore, MD 21235.
    Section 215(i)(2)(D) of the Act requires that, when we determine an 
increase in Social Security benefits, we will publish in the Federal 
Register a revision of the range of the PIAs and maximum family 
benefits based on the dollar amount and other provisions described in 
section 215(a)(1)(C)(i). We refer to these benefits as ``special 
minimum'' benefits. These benefits are payable to certain individuals 
with long periods of low earnings. To qualify for these benefits, an 
individual must have at least 11 years of coverage. To earn a year of 
coverage for purposes of the special minimum benefit, a person must 
earn at least a certain proportion of the old-law contribution and 
benefit base (described later in this notice). For years before 1991, 
the proportion is 25

[[Page 74856]]

percent; for years after 1990, it is 15 percent. In accordance with 
section 215(a)(1)(C)(i), the table below shows the revised range of 
PIAs and maximum family benefit amounts after the 0.3 percent benefit 
increase.

  Special Minimum PIAs and Maximum Family Benefits Payable for December
                                  2016
------------------------------------------------------------------------
                                                               Maximum
          Number of years of coverage               PIA         family
                                                               benefit
------------------------------------------------------------------------
11............................................       $40.00       $60.90
12............................................        81.70       123.70
13............................................       123.50       186.40
14............................................       165.00       248.70
15............................................       206.40       310.90
16............................................       248.40       373.80
17............................................       290.00       436.70
18............................................       331.70       498.90
19............................................       373.40       561.50
20............................................       415.20       623.60
21............................................       456.90       686.70
22............................................       498.30       749.10
23............................................       540.70       812.60
24............................................       582.30       874.60
25............................................       623.60       936.60
26............................................       666.00     1,000.10
27............................................       707.20     1,062.50
28............................................       748.90     1,124.80
29............................................       790.60     1,187.80
30............................................       832.20     1,249.70
------------------------------------------------------------------------

Title XVI Benefit Amounts

    In accordance with section 1617 of the Act, maximum Federal SSI 
benefit amounts for the aged, blind, and disabled will increase by 0.3 
percent effective January 2017. For 2016, we derived the monthly 
benefit amounts for an eligible individual, an eligible individual with 
an eligible spouse, and for an essential person--$733, $1,100, and 
$367, respectively--from yearly, unrounded Federal SSI benefit amounts 
of $8,804.43, $13,205.18, and $4,412.31. For 2017, these yearly 
unrounded amounts respectively increase by 0.3 percent to $8,830.84, 
$13,244.80, and $4,425.55. We must round each of these resulting 
amounts, when not a multiple of $12, to the next lower multiple of $12. 
Therefore, the annual amounts, effective for 2017, are $8,820, $13,236, 
and $4,416. Dividing the yearly amounts by 12 gives the respective 
monthly amounts for 2017--$735, $1,103, and $368. For an eligible 
individual with an eligible spouse, we equally divide the amount 
payable between the two spouses.

Title VIII Benefit Amount

    Title VIII of the Act provides for special benefits to certain 
World War II veterans who reside outside the United States. Section 805 
of the Act provides that ``[t]he benefit under this title payable to a 
qualified individual for any month shall be in an amount equal to 75 
percent of the Federal benefit rate [the maximum amount for an eligible 
individual] under title XVI for the month, reduced by the amount of the 
qualified individual's benefit income for the month.'' Therefore, the 
monthly benefit for 2017 under this provision is 75 percent of $735, or 
$551.25.

Student Earned Income Exclusion

    A blind or disabled child who is a student regularly attending 
school, college, university, or a course of vocational or technical 
training can have limited earnings that do not count against his or her 
SSI benefits. The maximum amount of such income that we may exclude in 
2016 is $1,780 per month, but not more than $7,180 in all of 2016. 
These amounts increase based on a formula set forth in regulation 20 
CFR 416.1112.
    To compute each of the monthly and yearly maximum amounts for 2017, 
we increase the unrounded amount for 2016 by the latest cost-of-living 
increase. If the amount so calculated is not a multiple of $10, we 
round it to the nearest multiple of $10. The unrounded monthly amount 
for 2016 is $1,781.37. We increase this amount by 0.3 percent to 
$1,786.71, which we then round to $1,790. Similarly, we increase the 
unrounded yearly amount for 2016, $7,180.65, by 0.3 percent to 
$7,202.19 and round this to $7,200. Therefore, the maximum amount of 
the income exclusion applicable to a student in 2017 is $1,790 per 
month but not more than $7,200 in all of 2017.

Fee for Services Performed as a Representative Payee

    Sections 205(j)(4)(A)(i) and 1631(a)(2)(D)(i) of the Act permit a 
qualified organization to collect a monthly fee from a beneficiary for 
expenses incurred in providing services as the beneficiary's 
representative payee. In 2016, the fee is limited to the lesser of: (1) 
10 percent of the monthly benefit involved; or (2) $41 each month ($78 
each month when the beneficiary is entitled to disability benefits and 
has an alcoholism or drug addiction condition that makes the individual 
incapable of managing such benefits). The dollar fee limits are subject 
to increase by the cost-of-living increase, with the resulting amounts 
rounded to the nearest whole dollar amount. Due to the rounding 
provision, the 0.3 percent COLA effective for December 2016 has no 
effect on the fee limits, so both the current $41 amount and the 
current $78 amount remain the same for 2017.

Appointed Representative Fee Assessment

    Under sections 206(d) and 1631(d) of the Act, whenever we pay a fee 
to a representative such as an attorney, agent, or other person who 
represents claimants, we must impose on the representative an 
assessment to cover administrative costs. The assessment is no more 
than 6.3 percent of the representative's authorized fee or, if lower, a 
dollar amount that is subject to increase by the cost-of-living 
increase. We derive the dollar limit for December 2016 by increasing 
the unrounded limit for December 2015, $91.20, by 0.3 percent, which is 
$91.47. We then round $91.47 to the next lower multiple of $1. The 
dollar limit effective for December 2016 is, therefore, $91, the same 
as the current amount.

National Average Wage Index for 2015

Computation

    We determined the national average wage index for calendar year 
2015 based on the 2014 national average wage index of $46,481.52, 
published in the Federal Register on October 30, 2015 (80 FR 66963), 
and the percentage increase in average wages from 2014 to 2015, as 
measured by annual wage data. We tabulate the annual wage data, 
including contributions to deferred compensation plans, as required by 
section 209(k) of the Act. The average amounts of wages calculated from 
these data were $44,569.20 for 2014 and $46,119.78 for 2015. To 
determine the national average wage index for 2015 at a level 
consistent with the national average wage indexing series for 1951 
through 1977 (published December 29, 1978, at 43 FR 61016), we multiply 
the 2014 national average wage index of $46,481.52 by the percentage 
increase in average wages from 2014 to 2015 (based on SSA-tabulated 
wage data) as follows. We round the result to the nearest cent.

National Average Wage Index Amount

    Multiplying the national average wage index for 2014 ($46,481.52) 
by the ratio of the average wage for 2015 ($46,119.78) to that for 2014 
($44,569.20) produces the 2015 index, $48,098.63. The national average 
wage index for calendar year 2015 is about 3.48 percent higher than the 
2014 index.

Program Amounts That Change Based on the National Average Wage Index

    Under the Act, the following amounts change with annual changes in 
the national average wage index: (1) The OASDI contribution and benefit 
base; (2) the exempt amounts under the retirement earnings test; (3) 
the dollar

[[Page 74857]]

amounts, or bend points, in the PIA formula; (4) the bend points in the 
maximum family benefit formula; (5) the earnings required to credit a 
worker with a quarter of coverage; (6) the old-law contribution and 
benefit base (as determined under section 230 of the Act as in effect 
before the 1977 amendments); (7) the substantial gainful activity (SGA) 
amount applicable to statutorily blind individuals; and (8) the 
coverage threshold for election officials and election workers. 
Additionally, under section 3121(x) of the Internal Revenue Code, the 
domestic employee coverage threshold is based on changes in the 
national average wage index.
    Two amounts also increase under regulatory requirements--the SGA 
amount applicable to non-blind disabled persons, and the monthly 
earnings threshold that establishes a month as part of a trial work 
period for disabled beneficiaries.

OASDI Contribution and Benefit Base

General

    The OASDI contribution and benefit base is $127,200 for 
remuneration paid in 2017 and self-employment income earned in taxable 
years beginning in 2017. The OASDI contribution and benefit base serves 
as the maximum annual earnings on which OASDI taxes are paid. It is 
also the maximum annual earnings used in determining a person's OASDI 
benefits.

Computation

    Section 230(b) of the Act provides the formula used to determine 
the OASDI contribution and benefit base. Under the formula, the base 
for 2017 is the larger of: (1) The 1994 base of $60,600 multiplied by 
the ratio of the national average wage index for 2015 to that for 1992; 
or (2) the current base ($118,500). If the resulting amount is not a 
multiple of $300, we round it to the nearest multiple of $300.

OASDI Contribution and Benefit Base Amount

    Multiplying the 1994 OASDI contribution and benefit base ($60,600) 
by the ratio of the national average wage index for 2015 ($48,098.63 as 
determined above) to that for 1992 ($22,935.42) produces $127,086.27. 
We round this amount to $127,200. Because $127,200 exceeds the current 
base amount of $118,500, the OASDI contribution and benefit base is 
$127,200 for 2017.

Retirement Earnings Test Exempt Amounts

General

    We withhold Social Security benefits when a beneficiary under the 
NRA has earnings over the applicable retirement earnings test exempt 
amount. The NRA is the age when retirement benefits (before rounding) 
are equal to the PIA. The NRA is age 66 for those born in 1943-54, and 
it gradually increases to age 67 for those born in 1960 or later. A 
higher exempt amount applies in the year in which a person attains NRA, 
but only for earnings in months before such attainment. A lower exempt 
amount applies at all other ages below NRA. Section 203(f)(8)(B) of the 
Act provides formulas for determining the monthly exempt amounts. The 
annual exempt amounts are exactly 12 times the monthly amounts.
    For beneficiaries who attain NRA in the year, we withhold $1 in 
benefits for every $3 of earnings over the annual exempt amount for 
months before NRA. For all other beneficiaries under NRA, we withhold 
$1 in benefits for every $2 of earnings over the annual exempt amount.

Computation

    Under the formula that applies to beneficiaries attaining NRA after 
2017, the lower monthly exempt amount for 2017 is the larger of: (1) 
The 1994 monthly exempt amount multiplied by the ratio of the national 
average wage index for 2015 to that for 1992; or (2) the 2016 monthly 
exempt amount ($1,310). If the resulting amount is not a multiple of 
$10, we round it to the nearest multiple of $10.
    Under the formula that applies to beneficiaries attaining NRA in 
2017, the higher monthly exempt amount for 2017 is the larger of: (1) 
The 2002 monthly exempt amount multiplied by the ratio of the national 
average wage index for 2015 to that for 2000; or (2) the 2016 monthly 
exempt amount ($3,490). If the resulting amount is not a multiple of 
$10, we round it to the nearest multiple of $10.

Lower Exempt Amount

    Multiplying the 1994 retirement earnings test monthly exempt amount 
of $670 by the ratio of the national average wage index for 2015 
($48,098.63) to that for 1992 ($22,935.42) produces $1,405.08. We round 
this to $1,410. Because $1,410 exceeds the current exempt amount of 
$1,310, the lower retirement earnings test monthly exempt amount is 
$1,410 for 2017. The lower annual exempt amount is $16,920 under the 
retirement earnings test.

Higher Exempt Amount

    Multiplying the 2002 retirement earnings test monthly exempt amount 
of $2,500 by the ratio of the national average wage index for 2015 
($48,098.63) to that for 2000 ($32,154.82) produces $3,739.61. We round 
this to $3,740. Because $3,740 exceeds the current exempt amount of 
$3,490, the higher retirement earnings test monthly exempt amount is 
$3,740 for 2017. The higher annual exempt amount is $44,880 under the 
retirement earnings test.

Primary Insurance Amount Benefit Formula

General

    The Social Security Amendments of 1977 provided a method for 
computing benefits that generally applies when a worker first becomes 
eligible for benefits after 1978. This method uses the worker's average 
indexed monthly earnings (AIME) to compute the PIA. We adjust the 
formula each year to reflect changes in general wage levels, as 
measured by the national average wage index.
    We also adjust, or index, a worker's earnings to reflect the change 
in the general wage levels that occurred during the worker's years of 
employment. Such indexing ensures that a worker's future benefit level 
will reflect the general rise in the standard of living that will occur 
during his or her working lifetime. To compute the AIME, we first 
determine the required number of years of earnings. We then select the 
number of years with the highest indexed earnings, add the indexed 
earnings for those years, and divide the total amount by the total 
number of months in those years. We then round the resulting average 
amount down to the next lower dollar amount. The result is the AIME.

Computing the PIA

    The PIA is the sum of three separate percentages of portions of the 
AIME. In 1979 (the first year the formula was in effect), these 
portions were the first $180, the amount between $180 and $1,085, and 
the amount over $1,085. We call the dollar amounts in the formula 
governing the portions of the AIME the ``bend points'' of the formula. 
Therefore, the bend points for 1979 were $180 and $1,085.
    To obtain the bend points for 2017, we multiply each of the 1979 
bend-point amounts by the ratio of the national average wage index for 
2015 to that average for 1977. We then round these results to the 
nearest dollar. Multiplying the 1979 amounts of $180 and $1,085 by the 
ratio of the national

[[Page 74858]]

average wage index for 2015 ($48,098.63) to that for 1977 ($9,779.44) 
produces the amounts of $885.30 and $5,336.40. We round these to $885 
and $5,336. Therefore, the portions of the AIME to be used in 2017 are 
the first $885, the amount between $885 and $5,336, and the amount over 
$5,336.
    Therefore, for individuals who first become eligible for old-age 
insurance benefits or disability insurance benefits in 2017, or who die 
in 2017 before becoming eligible for benefits, their PIA will be the 
sum of:
    (a) 90 percent of the first $885 of their AIME, plus
    (b) 32 percent of their AIME over $885 and through $5,336, plus
    (c) 15 percent of their AIME over $5,336.
    We round this amount to the next lower multiple of $0.10 if it is 
not already a multiple of $0.10. This formula and the rounding 
adjustment are stated in section 215(a) of the Act.

Maximum Benefits Payable to a Family

General

    The 1977 amendments continued the policy of limiting the total 
monthly benefits that a worker's family may receive based on the 
worker's PIA. Those amendments also continued the relationship between 
maximum family benefits and PIAs but changed the method of computing 
the maximum benefits that may be paid to a worker's family. The Social 
Security Disability Amendments of 1980 (Pub. L. 96-265) established a 
formula for computing the maximum benefits payable to the family of a 
disabled worker. This formula applies to the family benefits of workers 
who first become entitled to disability insurance benefits after June 
30, 1980, and who first become eligible for these benefits after 1978. 
For disabled workers initially entitled to disability benefits before 
July 1980 or whose disability began before 1979, we compute the family 
maximum payable the same as the old-age and survivor family maximum.

Computing the Old-Age and Survivor Family Maximum

    The formula used to compute the family maximum is similar to that 
used to compute the PIA. It involves computing the sum of four separate 
percentages of portions of the worker's PIA. In 1979, these portions 
were the first $230, the amount between $230 and $332, the amount 
between $332 and $433, and the amount over $433. We refer to such 
dollar amounts in the formula as the ``bend points'' of the family-
maximum formula.
    To obtain the bend points for 2017, we multiply each of the 1979 
bend-point amounts by the ratio of the national average wage index for 
2015 to that average for 1977. Then we round this amount to the nearest 
dollar. Multiplying the amounts of $230, $332, and $433 by the ratio of 
the national average wage index for 2015 ($48,098.63) to that for 1977 
($9,779.44) produces the amounts of $1,131.22, $1,632.89, and 
$2,129.64. We round these amounts to $1,131, $1,633, and $2,130. 
Therefore, the portions of the PIAs to be used in 2017 are the first 
$1,131, the amount between $1,131 and $1,633, the amount between $1,633 
and $2,130, and the amount over $2,130.
    Thus, for the family of a worker who becomes age 62 or dies in 2017 
before age 62, we will compute the total benefits payable to them so 
that it does not exceed:
    (a) 150 percent of the first $1,131 of the worker's PIA, plus (b) 
272 percent of the worker's PIA over $1,131 through $1,633, plus (c) 
134 percent of the worker's PIA over $1,633 through $2,130, plus (d) 
175 percent of the worker's PIA over $2,130.
    We then round this amount to the next lower multiple of $0.10 if it 
is not already a multiple of $0.10. This formula and the rounding 
adjustment are stated in section 203(a) of the Act.

Quarter of Coverage Amount

General

    The earnings required for a quarter of coverage in 2017 is $1,300. 
A quarter of coverage is the basic unit for determining if a worker is 
insured under the Social Security program. For years before 1978, we 
generally credited an individual with a quarter of coverage for each 
quarter in which wages of $50 or more were paid, or with 4 quarters of 
coverage for every taxable year in which $400 or more of self-
employment income was earned. Beginning in 1978, employers generally 
report wages yearly instead of quarterly. With the change to yearly 
reporting, section 352(b) of the Social Security Amendments of 1977 
amended section 213(d) of the Act to provide that a quarter of coverage 
would be credited for each $250 of an individual's total wages and 
self-employment income for calendar year 1978, up to a maximum of 4 
quarters of coverage for the year. The amendment also provided a 
formula for years after 1978.

Computation

    Under the prescribed formula, the quarter of coverage amount for 
2017 is the larger of: (1) The 1978 amount of $250 multiplied by the 
ratio of the national average wage index for 2015 to that for 1976; or 
(2) the current amount of $1,260. Section 213(d) provides that if the 
resulting amount is not a multiple of $10, we round it to the nearest 
multiple of $10.

Quarter of Coverage Amount

    Multiplying the 1978 quarter of coverage amount ($250) by the ratio 
of the national average wage index for 2015 ($48,098.63) to that for 
1976 ($9,226.48) produces $1,303.28. We then round this amount to 
$1,300. Because $1,300 exceeds the current amount of $1,260, the 
quarter of coverage amount is $1,300 for 2017.

Old-Law Contribution and Benefit Base

General

    The old-law contribution and benefit base for 2017 is $94,500. This 
base would have been effective under the Act without the enactment of 
the 1977 amendments.
    The old-law contribution and benefit base is used by:
    (a) The Railroad Retirement program to determine certain tax 
liabilities and tier II benefits payable under that program to 
supplement the tier I payments that correspond to basic Social Security 
benefits,
    (b) the Pension Benefit Guaranty Corporation to determine the 
maximum amount of pension guaranteed under the Employee Retirement 
Income Security Act (section 230(d) of the Act),
    (c) Social Security to determine a year of coverage in computing 
the special minimum benefit, as described earlier, and
    (d) Social Security to determine a year of coverage (acquired 
whenever earnings equal or exceed 25 percent of the old-law base for 
this purpose only) in computing benefits for persons who are also 
eligible to receive pensions based on employment not covered under 
section 210 of the Act.

Computation

    The old-law contribution and benefit base is the larger of: (1) The 
1994 old-law base ($45,000) multiplied by the ratio of the national 
average wage index for 2015 to that for 1992; or (2) the current old-
law base ($88,200). If the resulting amount is not a multiple of $300, 
we round it to the nearest multiple of $300.

Old-Law Contribution and Benefit Base Amount

    Multiplying the 1994 old-law contribution and benefit base 
($45,000) by the ratio of the national average wage

[[Page 74859]]

index for 2015 ($48,098.63) to that for 1992 ($22,935.42) produces 
$94,370.99. We round this amount to $94,500. Because $94,500 exceeds 
the current amount of $88,200, the old-law contribution and benefit 
base is $94,500 for 2017.

Substantial Gainful Activity Amounts

General

    A finding of disability under titles II and XVI of the Act requires 
that a person, except for a title XVI disabled child, be unable to 
engage in SGA. A person who is earning more than a certain monthly 
amount is ordinarily considered to be engaging in SGA. The monthly 
earnings considered as SGA depends on the nature of a person's 
disability. Section 223(d)(4)(A) of the Act specifies the SGA amount 
for statutorily blind individuals under title II while our regulations 
(20 CFR 404.1574 and 416.974) specify the SGA amount for non-blind 
individuals.

Computation

    The monthly SGA amount for statutorily blind individuals under 
title II for 2017 is the larger of: (1) The amount for 1994 multiplied 
by the ratio of the national average wage index for 2015 to that for 
1992; or (2) the amount for 2016. The monthly SGA amount for non-blind 
disabled individuals for 2017 is the larger of: (1) The amount for 2000 
multiplied by the ratio of the national average wage index for 2015 to 
that for 1998; or (2) the amount for 2016. In either case, if the 
resulting amount is not a multiple of $10, we round it to the nearest 
multiple of $10.

SGA Amount for Statutorily Blind Individuals

    Multiplying the 1994 monthly SGA amount for statutorily blind 
individuals ($930) by the ratio of the national average wage index for 
2015 ($48,098.63) to that for 1992 ($22,935.42) produces $1,950.33. We 
then round this amount to $1,950. Because $1,950 exceeds the current 
amount of $1,820, the monthly SGA amount for statutorily blind 
individuals is $1,950 for 2017.

SGA Amount for Non-Blind Disabled Individuals

    Multiplying the 2000 monthly SGA amount for non-blind individuals 
($700) by the ratio of the national average wage index for 2015 
($48,098.63) to that for 1998 ($28,861.44) produces $1,166.58. We then 
round this amount to $1,170. Because $1,170 exceeds the current amount 
of $1,130, the monthly SGA amount for non-blind disabled individuals is 
$1,170 for 2017.

Trial Work Period Earnings Threshold

General

    During a trial work period of 9 months in a rolling 60-month 
period, a beneficiary receiving Social Security disability benefits may 
test his or her ability to work and still receive monthly benefit 
payments. To be considered a trial work period month, earnings must be 
over a certain level. In 2017, any month in which earnings exceed $840 
is considered a month of services for an individual's trial work 
period.

Computation

    The method used to determine the new amount is set forth in our 
regulations at 20 CFR 404.1592(b). Monthly earnings in 2017, used to 
determine whether a month is part of a trial work period, is the larger 
of: (1) The amount for 2001 ($530) multiplied by the ratio of the 
national average wage index for 2015 to that for 1999; or (2) the 
amount for 2016. If the amount so calculated is not a multiple of $10, 
we round it to the nearest multiple of $10.

Trial Work Period Earnings Threshold Amount

    Multiplying the 2001 monthly earnings threshold ($530) by the ratio 
of the national average wage index for 2015 ($48,098.63) to that for 
1999 ($30,469.84) produces $836.64. We then round this amount to $840. 
Because $840 exceeds the current amount of $810, the monthly earnings 
threshold is $840 for 2017.

Domestic Employee Coverage Threshold

General

    The minimum amount a domestic worker must earn so that such 
earnings are covered under Social Security or Medicare is the domestic 
employee coverage threshold. For 2017, this threshold is $2,000. 
Section 3121(x) of the Internal Revenue Code provides the formula for 
increasing the threshold.

Computation

    Under the formula, the domestic employee coverage threshold for 
2017 is equal to the 1995 amount of $1,000 multiplied by the ratio of 
the national average wage index for 2015 to that for 1993. If the 
resulting amount is not a multiple of $100, we round it to the next 
lower multiple of $100.

Domestic Employee Coverage Threshold Amount

    Multiplying the 1995 domestic employee coverage threshold ($1,000) 
by the ratio of the national average wage index for 2015 ($48,098.63) 
to that for 1993 ($23,132.67) produces $2,079.25. We then round this 
amount to $2,000. Therefore, the domestic employee coverage threshold 
amount is $2,000 for 2017.

Election Official and Election Worker Coverage Threshold

General

    The minimum amount an election official and election worker must 
earn so the earnings are covered under Social Security or Medicare is 
the election official and election worker coverage threshold. For 2017, 
this threshold is $1,800. Section 218(c)(8)(B) of the Act provides the 
formula for increasing the threshold.

Computation

    Under the formula, the election official and election worker 
coverage threshold for 2017 is equal to the 1999 amount of $1,000 
multiplied by the ratio of the national average wage index for 2015 to 
that for 1997. If the amount we determine is not a multiple of $100, it 
we round it to the nearest multiple of $100.

Election Official and Election Worker Coverage Threshold Amount

    Multiplying the 1999 coverage threshold amount ($1,000) by the 
ratio of the national average wage index for 2015 ($48,098.63) to that 
for 1997 ($27,426.00) produces $1,753.76. We then round this amount to 
$1,800. Therefore, the election official and election worker coverage 
threshold amount is $1,800 for 2017.

(Catalog of Federal Domestic Assistance: Program Nos. 96.001 Social 
Security-Disability Insurance; 96.002 Social Security-Retirement 
Insurance; 96.004 Social Security-Survivors Insurance; 96.006 
Supplemental Security Income)

Carolyn W. Colvin,
Acting Commissioner of Social Security.
[FR Doc. 2016-26026 Filed 10-26-16; 8:45 am]
 BILLING CODE 4191-02-P

74854 Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Notices Administration, Processing and President’s major disaster declaration on on eligibility or claiming benefits, call Disbursement Center, 14925 Kingsport 10/20/2016, Private Non-Profit 1–800–772–1213 (TTY 1–800–325– Road, Fort Worth, TX 76155. organizations that provide essential 0778), or visit our Internet site at FOR FURTHER INFORMATION CONTACT: A. services of governmental nature may file www.socialsecurity.gov. Escobar, Office of Disaster Assistance, disaster loan applications at the address SUPPLEMENTARY INFORMATION: Because of U.S. Small Business Administration, listed above or other locally announced the 0.3 percent cost-of-living increase, 409 3rd Street SW., Suite 6050, locations. the following items will increase for Washington, DC 20416. The following areas have been 2017: SUPPLEMENTARY INFORMATION: The notice determined to be adversely affected by (1) The maximum Federal of the Presidential disaster declaration the disaster: Supplemental Security Income (SSI) for the State of Florida, dated 10/17/ Primary Counties: Cheyenne, Cowley, monthly benefit amounts for 2017 under 2016 is hereby amended to include the Ellis, Graham, Greenwood, Kingman, title XVI of the Act will be $735 for an following areas as adversely affected by Norton, Rooks, Russell, Sedgwick, eligible individual, $1,103 for an the disaster: Sumner. eligible individual with an eligible Primary Counties (Physical Damage and The Interest Rates are: spouse, and $368 for an essential Economic Injury Loans): Brevard, person; Percent (2) The special benefit amount under Indian River. Contiguous Counties (Economic Injury title VIII of the Act for certain World For Physical Damage: Loans Only): Non-Profit Organizations With War II veterans will be $551.25 for 2017; Florida: Okeechobee, Osceola, Saint Credit Available Elsewhere ... 2.625 (3) The student earned income Lucie. Non-Profit Organizations With- exclusion under title XVI of the Act will out Credit Available Else- be $1,790 per month in 2017, but not All other information in the original where ..................................... 2.625 more than $7,200 for all of 2017; declaration remains unchanged. For Economic Injury: (4) The dollar fee limit for services (Catalog of Federal Domestic Assistance Non-Profit Organizations With- performed as a representative payee Number 59008) out Credit Available Else- remains at $41 per month ($78 per where ..................................... 2.625 Lisa Lopez-Suarez, month in the case of a beneficiary who Acting Associate Administrator for Disaster is disabled and has an alcoholism or The number assigned to this disaster Assistance. drug addiction condition that leaves for physical damage is 14929B and for him or her incapable of managing [FR Doc. 2016–25995 Filed 10–26–16; 8:45 am] economic injury is 14930B benefits) in 2017; and BILLING CODE 8025–01–P (Catalog of Federal Domestic Assistance (5) The dollar limit on the Number 59008) administrative-cost fee assessment SMALL BUSINESS ADMINISTRATION charged to an appointed representative Lisa Lopez-Suarez, such as an attorney, agent, or other [Disaster Declaration #14929 and #14930] Acting Associate Administrator for Disaster person who represents claimants Assistance. remains at $91 beginning in December Kansas Disaster #KS–00098 [FR Doc. 2016–26006 Filed 10–26–16; 8:45 am] 2016. AGENCY: U.S. Small Business BILLING CODE 8025–01–P The national average wage index for Administration. 2015 is $48,098.63. This index affects ACTION: Notice. the following amounts: SOCIAL SECURITY ADMINISTRATION (1) The Old-Age, Survivors, and SUMMARY: This is a Notice of the [Docket No. SSA–2016–0050] Disability Insurance (OASDI) Presidential declaration of a major contribution and benefit base will be disaster for Public Assistance Only for Cost-of-Living Increase and Other $127,200 for remuneration paid in 2017 the State of Kansas (FEMA–4287–DR), Determinations for 2017 and self-employment income earned in dated 10/20/2016. taxable years beginning in 2017; Incident: Severe Storms and Flooding. AGENCY: Social Security Administration. (2) The monthly exempt amounts Incident Period: 09/02/2016 through ACTION: Notice. under the OASDI retirement earnings 09/12/2016. test for taxable years ending in calendar SUMMARY: Under title II of the Social year 2017 will be $1,410 for EFFECTIVE DATE: 10/20/2016. Security Act (Act), there will be a 0.3 Physical Loan Application Deadline beneficiaries who will attain their percent cost-of-living increase in Social Normal Retirement Age (NRA) (defined Date: 12/19/2016 Security benefits effective December Economic Injury (EIDL) Loan in the Retirement Earnings Test Exempt 2016. In addition, the national average Amounts section below) after 2017 and Application Deadline Date: 07/20/2017 wage index for 2015 is $48,098.63. The $3,740 for those who attain NRA in ADDRESSES: Submit completed loan cost-of-living increase and national 2017; applications to: U.S. Small Business average wage index affect other program (3) The dollar amounts (‘‘bend Administration, Processing and parameters as described below. points’’) used in the primary insurance Disbursement Center, 14925 Kingsport FOR FURTHER INFORMATION CONTACT: amount (PIA) benefit formula for Road, Fort Worth, TX 76155. Susan C. Kunkel, Office of the Chief workers who become eligible for sradovich on DSK3GMQ082PROD with NOTICES FOR FURTHER INFORMATION CONTACT: A. Actuary, Social Security benefits, or who die before becoming Escobar, Office of Disaster Assistance, Administration, 6401 Security eligible, in 2017 will be $885 and U.S. Small Business Administration, Boulevard, Baltimore, MD 21235, (410) $5,336; 409 3rd Street SW., Suite 6050, 965–3000. Information relating to this (4) The bend points used in the Washington, DC 20416. announcement is available on our formula for computing maximum family SUPPLEMENTARY INFORMATION: Notice is Internet site at www.socialsecurity.gov/ benefits for workers who become hereby given that as a result of the oact/cola/index.html. For information eligible for benefits, or who die before VerDate Sep<11>2014 17:43 Oct 26, 2016 Jkt 241001 PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 E:\FR\FM\27OCN1.SGM 27OCN1

Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Notices 74855 becoming eligible, in 2017 will be the Act was amended to provide cost-of- Funds at the beginning of that year to $1,131, $1,633, and $2,130; living increases, only one Consumer the combined expenditures of these (5) The taxable earnings a person Price Index existed, namely the funds during that year. For 2016, the must have to be credited with a quarter Consumer Price Index for Urban Wage OASDI fund ratio is assets of $2,812,510 of coverage in 2017 will be $1,300; Earners and Clerical Workers. Although million divided by estimated (6) The ‘‘old-law’’ contribution and the Bureau of Labor Statistics has since expenditures of $924,944 million, or benefit base under title II of the Act will developed other consumer price 304.1 percent. Because the 304.1 be $94,500 for 2017; indices, we follow precedent by percent OASDI fund ratio exceeds 20.0 (7) The monthly amount deemed to continuing to use the Consumer Price percent, the benefit increase for constitute substantial gainful activity Index for Urban Wage Earners and December 2016 is not limited. (SGA) for statutorily blind persons in Clerical Workers. We refer to this index Program Amounts That Change Based 2017 will be $1,950. The corresponding in the following paragraphs as the CPI. Section 215(i)(1)(B) of the Act defines on the Cost-of-Living Increase amount for non-blind disabled persons will be $1,170; a ‘‘computation quarter’’ to be a third The following program amounts (8) The earnings threshold calendar quarter in which the average change based on the cost-of-living establishing a month as a part of a trial CPI exceeded the average CPI in the increase: (1) Title II benefits; (2) title work period will be $840 for 2017; and previous computation quarter. The last XVI benefits; (3) title VIII benefits; (4) (9) Coverage thresholds for 2017 will cost-of-living increase, effective for the student earned income exclusion; be $2,000 for domestic workers and those eligible to receive title II benefits (5) the fee for services performed by a $1,800 for election officials and election for December 2014, was based on the representative payee; and (6) the workers. CPI increase from the third quarter of appointed representative fee According to section 215(i)(2)(D) of the 2013 to the third quarter of 2014. assessment. Act, we must publish the benefit Therefore, the last computation quarter Title II Benefit Amounts increase percentage and the revised is the third quarter of 2014. The law states that a cost-of-living increase for In accordance with section 215(i) of table of ‘‘special minimum’’ benefits the Act, for workers and family within 45 days after the close of the benefits is determined based on the percentage increase, if any, in the CPI members for whom eligibility for third calendar quarter of 2016. We must benefits (that is, the worker’s attainment also publish the following by November from the last computation quarter to the third quarter of the current year. of age 62, or disability or death before 1: The national average wage index for age 62) occurred before 2017, benefits 2015 (215(a)(1)(D)), the OASDI fund Therefore, we compute the increase in the CPI from the third quarter of 2014 will increase by 0.3 percent beginning ratio for 2016 (section 215(i)(2)(C)(ii)), with benefits for December 2016, which the OASDI contribution and benefit base to the third quarter of 2016. Section 215(i)(1) of the Act states that are payable in January 2017. For those for 2017 (section 230(a)), the earnings first eligible after 2016, the 0.3 percent the CPI for a cost-of-living computation required to be credited with a quarter of increase will not apply. quarter is the arithmetic mean of this coverage in 2017 (section 213(d)(2)), the For eligibility after 1978, we index for the 3 months in that quarter. monthly exempt amounts under the determine benefits using a formula In accordance with 20 CFR 404.275, we Social Security retirement earnings test provided by the Social Security round the arithmetic mean, if necessary, for 2017 (section 203(f)(8)(A)), the Amendments of 1977 (Pub. L. 95–216), to the nearest 0.001. The CPI for each formula for computing a PIA for workers as described later in this notice. month in the quarter ending September who first become eligible for benefits or For eligibility before 1979, we 30, 2014, the last computation quarter, die in 2017 (section 215(a)(1)(D)), and determine benefits by using a benefit is: For July 2014, 234.525; for August the formula for computing the 2014, 234.030; and for September 2014, table. The table is available on the maximum benefits payable to the family 234.170. The arithmetic mean for the Internet at www.socialsecurity.gov/oact/ of a worker who first becomes eligible calendar quarter ending September 30, ProgData/tableForm.html or by writing for old-age benefits or dies in 2017 2014 is 234.242. The CPI for each month to: Social Security Administration, (section 203(a)(2)(C)). in the quarter ending September 30, Office of Public Inquiries, Windsor Park Cost-of-Living Increases 2016, is: For July 2016, 234.771; for Building, 6401 Security Boulevard, August 2016, 234.904; and for Baltimore, MD 21235. General September 2016, 235.495. The Section 215(i)(2)(D) of the Act The cost-of-living increase is 0.3 arithmetic mean for the calendar quarter requires that, when we determine an percent for benefits under titles II and ending September 30, 2016 is 235.057. increase in Social Security benefits, we XVI of the Act. Under title II, OASDI The CPI for the calendar quarter ending will publish in the Federal Register a benefits will increase by 0.3 percent for September 30, 2016, exceeds that for the revision of the range of the PIAs and individuals eligible for December 2016 calendar quarter ending September 30, maximum family benefits based on the benefits, payable in January 2017. We 2014 by 0.3 percent (rounded to the dollar amount and other provisions base this increase on the authority nearest 0.1). Therefore, beginning described in section 215(a)(1)(C)(i). We contained in section 215(i) of the Act. December 2016 a cost-of-living benefit refer to these benefits as ‘‘special Pursuant to section 1617 of the Act, increase of 0.3 percent is effective for minimum’’ benefits. These benefits are Federal SSI payment levels will also benefits under title II of the Act. payable to certain individuals with long increase by 0.3 percent effective for Section 215(i) also specifies that a periods of low earnings. To qualify for benefit increase under title II, effective these benefits, an individual must have sradovich on DSK3GMQ082PROD with NOTICES payments made for January 2017 but paid on December 30, 2016. for December of any year, will be at least 11 years of coverage. To earn a limited to the increase in the national year of coverage for purposes of the Computation average wage index for the prior year if special minimum benefit, a person must Computation of the cost-of-living the OASDI fund ratio for that year is earn at least a certain proportion of the increase is based on an increase in a below 20.0 percent. The OASDI fund old-law contribution and benefit base Consumer Price Index produced by the ratio for a year is the ratio of the (described later in this notice). For years Bureau of Labor Statistics. At the time combined assets of the OASDI Trust before 1991, the proportion is 25 VerDate Sep<11>2014 17:43 Oct 26, 2016 Jkt 241001 PO 00000 Frm 00094 Fmt 4703 Sfmt 4703 E:\FR\FM\27OCN1.SGM 27OCN1

74856 Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Notices payable to a qualified individual for any percent; for years after 1990, it is 15 Appointed Representative Fee percent. In accordance with section month shall be in an amount equal to Assessment 215(a)(1)(C)(i), the table below shows 75 percent of the Federal benefit rate Under sections 206(d) and 1631(d) of the revised range of PIAs and maximum [the maximum amount for an eligible the Act, whenever we pay a fee to a family benefit amounts after the 0.3 individual] under title XVI for the representative such as an attorney, percent benefit increase. month, reduced by the amount of the agent, or other person who represents qualified individual’s benefit income for claimants, we must impose on the SPECIAL MINIMUM PIAS AND MAXIMUM the month.’’ Therefore, the monthly representative an assessment to cover FAMILY BENEFITS PAYABLE FOR DE- benefit for 2017 under this provision is administrative costs. The assessment is CEMBER 2016 75 percent of $735, or $551.25. no more than 6.3 percent of the Student Earned Income Exclusion representative’s authorized fee or, if Maximum lower, a dollar amount that is subject to Number of years PIA family A blind or disabled child who is a of coverage increase by the cost-of-living increase. benefit student regularly attending school, We derive the dollar limit for December 11 ...................... $40.00 $60.90 college, university, or a course of 2016 by increasing the unrounded limit 12 ...................... 81.70 123.70 vocational or technical training can for December 2015, $91.20, by 0.3 13 ...................... 123.50 186.40 have limited earnings that do not count percent, which is $91.47. We then 14 ...................... 165.00 248.70 against his or her SSI benefits. The round $91.47 to the next lower multiple 15 ...................... 206.40 310.90 maximum amount of such income that 16 ...................... 248.40 373.80 of $1. The dollar limit effective for we may exclude in 2016 is $1,780 per December 2016 is, therefore, $91, the 17 ...................... 290.00 436.70 18 ...................... 331.70 498.90 month, but not more than $7,180 in all same as the current amount. 19 ...................... 373.40 561.50 of 2016. These amounts increase based 20 ...................... 415.20 623.60 on a formula set forth in regulation 20 National Average Wage Index for 2015 21 ...................... 456.90 686.70 CFR 416.1112. Computation 22 ...................... 498.30 749.10 To compute each of the monthly and 23 ...................... 540.70 812.60 We determined the national average yearly maximum amounts for 2017, we wage index for calendar year 2015 based 24 ...................... 582.30 874.60 increase the unrounded amount for on the 2014 national average wage index 25 ...................... 623.60 936.60 26 ...................... 666.00 1,000.10 2016 by the latest cost-of-living of $46,481.52, published in the Federal 27 ...................... 707.20 1,062.50 increase. If the amount so calculated is Register on October 30, 2015 (80 FR 28 ...................... 748.90 1,124.80 not a multiple of $10, we round it to the 66963), and the percentage increase in 29 ...................... 790.60 1,187.80 nearest multiple of $10. The unrounded average wages from 2014 to 2015, as 30 ...................... 832.20 1,249.70 monthly amount for 2016 is $1,781.37. measured by annual wage data. We We increase this amount by 0.3 percent tabulate the annual wage data, including Title XVI Benefit Amounts to $1,786.71, which we then round to contributions to deferred compensation In accordance with section 1617 of $1,790. Similarly, we increase the plans, as required by section 209(k) of the Act, maximum Federal SSI benefit unrounded yearly amount for 2016, the Act. The average amounts of wages amounts for the aged, blind, and $7,180.65, by 0.3 percent to $7,202.19 calculated from these data were disabled will increase by 0.3 percent and round this to $7,200. Therefore, the $44,569.20 for 2014 and $46,119.78 for effective January 2017. For 2016, we maximum amount of the income 2015. To determine the national average derived the monthly benefit amounts for exclusion applicable to a student in wage index for 2015 at a level consistent an eligible individual, an eligible 2017 is $1,790 per month but not more with the national average wage indexing individual with an eligible spouse, and than $7,200 in all of 2017. series for 1951 through 1977 (published for an essential person—$733, $1,100, Fee for Services Performed as a December 29, 1978, at 43 FR 61016), we and $367, respectively—from yearly, Representative Payee multiply the 2014 national average wage unrounded Federal SSI benefit amounts index of $46,481.52 by the percentage of $8,804.43, $13,205.18, and $4,412.31. Sections 205(j)(4)(A)(i) and increase in average wages from 2014 to For 2017, these yearly unrounded 1631(a)(2)(D)(i) of the Act permit a 2015 (based on SSA-tabulated wage amounts respectively increase by 0.3 qualified organization to collect a data) as follows. We round the result to percent to $8,830.84, $13,244.80, and monthly fee from a beneficiary for the nearest cent. $4,425.55. We must round each of these expenses incurred in providing services resulting amounts, when not a multiple as the beneficiary’s representative National Average Wage Index Amount of $12, to the next lower multiple of payee. In 2016, the fee is limited to the Multiplying the national average wage $12. Therefore, the annual amounts, lesser of: (1) 10 percent of the monthly index for 2014 ($46,481.52) by the ratio effective for 2017, are $8,820, $13,236, benefit involved; or (2) $41 each month of the average wage for 2015 and $4,416. Dividing the yearly amounts ($78 each month when the beneficiary ($46,119.78) to that for 2014 by 12 gives the respective monthly is entitled to disability benefits and has ($44,569.20) produces the 2015 index, amounts for 2017—$735, $1,103, and an alcoholism or drug addiction $48,098.63. The national average wage $368. For an eligible individual with an condition that makes the individual index for calendar year 2015 is about eligible spouse, we equally divide the incapable of managing such benefits). 3.48 percent higher than the 2014 index. amount payable between the two The dollar fee limits are subject to increase by the cost-of-living increase, Program Amounts That Change Based sradovich on DSK3GMQ082PROD with NOTICES spouses. with the resulting amounts rounded to on the National Average Wage Index Title VIII Benefit Amount the nearest whole dollar amount. Due to Under the Act, the following amounts Title VIII of the Act provides for the rounding provision, the 0.3 percent change with annual changes in the special benefits to certain World War II COLA effective for December 2016 has national average wage index: (1) The veterans who reside outside the United no effect on the fee limits, so both the OASDI contribution and benefit base; States. Section 805 of the Act provides current $41 amount and the current $78 (2) the exempt amounts under the that ‘‘[t]he benefit under this title amount remain the same for 2017. retirement earnings test; (3) the dollar VerDate Sep<11>2014 17:43 Oct 26, 2016 Jkt 241001 PO 00000 Frm 00095 Fmt 4703 Sfmt 4703 E:\FR\FM\27OCN1.SGM 27OCN1

Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Notices 74857 amounts, or bend points, in the PIA Retirement Earnings Test Exempt Higher Exempt Amount formula; (4) the bend points in the Amounts Multiplying the 2002 retirement maximum family benefit formula; (5) General earnings test monthly exempt amount of the earnings required to credit a worker $2,500 by the ratio of the national with a quarter of coverage; (6) the old- We withhold Social Security benefits average wage index for 2015 law contribution and benefit base (as when a beneficiary under the NRA has ($48,098.63) to that for 2000 determined under section 230 of the Act earnings over the applicable retirement ($32,154.82) produces $3,739.61. We earnings test exempt amount. The NRA as in effect before the 1977 round this to $3,740. Because $3,740 is the age when retirement benefits amendments); (7) the substantial gainful exceeds the current exempt amount of (before rounding) are equal to the PIA. activity (SGA) amount applicable to $3,490, the higher retirement earnings The NRA is age 66 for those born in statutorily blind individuals; and (8) the test monthly exempt amount is $3,740 1943–54, and it gradually increases to coverage threshold for election officials for 2017. The higher annual exempt age 67 for those born in 1960 or later. and election workers. Additionally, amount is $44,880 under the retirement A higher exempt amount applies in the under section 3121(x) of the Internal earnings test. year in which a person attains NRA, but Revenue Code, the domestic employee only for earnings in months before such Primary Insurance Amount Benefit coverage threshold is based on changes attainment. A lower exempt amount Formula in the national average wage index. applies at all other ages below NRA. General Two amounts also increase under Section 203(f)(8)(B) of the Act provides regulatory requirements—the SGA formulas for determining the monthly The Social Security Amendments of exempt amounts. The annual exempt 1977 provided a method for computing amount applicable to non-blind amounts are exactly 12 times the benefits that generally applies when a disabled persons, and the monthly monthly amounts. worker first becomes eligible for benefits earnings threshold that establishes a after 1978. This method uses the For beneficiaries who attain NRA in month as part of a trial work period for worker’s average indexed monthly the year, we withhold $1 in benefits for disabled beneficiaries. earnings (AIME) to compute the PIA. every $3 of earnings over the annual OASDI Contribution and Benefit Base exempt amount for months before NRA. We adjust the formula each year to For all other beneficiaries under NRA, reflect changes in general wage levels, General we withhold $1 in benefits for every $2 as measured by the national average of earnings over the annual exempt wage index. The OASDI contribution and benefit We also adjust, or index, a worker’s base is $127,200 for remuneration paid amount. earnings to reflect the change in the in 2017 and self-employment income Computation general wage levels that occurred during earned in taxable years beginning in Under the formula that applies to the worker’s years of employment. Such 2017. The OASDI contribution and beneficiaries attaining NRA after 2017, indexing ensures that a worker’s future benefit base serves as the maximum the lower monthly exempt amount for benefit level will reflect the general rise annual earnings on which OASDI taxes 2017 is the larger of: (1) The 1994 in the standard of living that will occur are paid. It is also the maximum annual monthly exempt amount multiplied by during his or her working lifetime. To earnings used in determining a person’s the ratio of the national average wage compute the AIME, we first determine OASDI benefits. index for 2015 to that for 1992; or (2) the the required number of years of 2016 monthly exempt amount ($1,310). earnings. We then select the number of Computation If the resulting amount is not a multiple years with the highest indexed earnings, Section 230(b) of the Act provides the of $10, we round it to the nearest add the indexed earnings for those formula used to determine the OASDI multiple of $10. years, and divide the total amount by contribution and benefit base. Under the Under the formula that applies to the total number of months in those beneficiaries attaining NRA in 2017, the years. We then round the resulting formula, the base for 2017 is the larger higher monthly exempt amount for 2017 average amount down to the next lower of: (1) The 1994 base of $60,600 is the larger of: (1) The 2002 monthly dollar amount. The result is the AIME. multiplied by the ratio of the national exempt amount multiplied by the ratio average wage index for 2015 to that for of the national average wage index for Computing the PIA 1992; or (2) the current base ($118,500). 2015 to that for 2000; or (2) the 2016 The PIA is the sum of three separate If the resulting amount is not a multiple monthly exempt amount ($3,490). If the percentages of portions of the AIME. In of $300, we round it to the nearest resulting amount is not a multiple of 1979 (the first year the formula was in multiple of $300. $10, we round it to the nearest multiple effect), these portions were the first OASDI Contribution and Benefit Base of $10. $180, the amount between $180 and $1,085, and the amount over $1,085. We Amount Lower Exempt Amount call the dollar amounts in the formula Multiplying the 1994 OASDI Multiplying the 1994 retirement governing the portions of the AIME the contribution and benefit base ($60,600) earnings test monthly exempt amount of ‘‘bend points’’ of the formula. Therefore, by the ratio of the national average wage $670 by the ratio of the national average the bend points for 1979 were $180 and index for 2015 ($48,098.63 as wage index for 2015 ($48,098.63) to that $1,085. for 1992 ($22,935.42) produces To obtain the bend points for 2017, sradovich on DSK3GMQ082PROD with NOTICES determined above) to that for 1992 $1,405.08. We round this to $1,410. we multiply each of the 1979 bend- ($22,935.42) produces $127,086.27. We Because $1,410 exceeds the current point amounts by the ratio of the round this amount to $127,200. Because exempt amount of $1,310, the lower national average wage index for 2015 to $127,200 exceeds the current base retirement earnings test monthly exempt that average for 1977. We then round amount of $118,500, the OASDI amount is $1,410 for 2017. The lower these results to the nearest dollar. contribution and benefit base is annual exempt amount is $16,920 under Multiplying the 1979 amounts of $180 $127,200 for 2017. the retirement earnings test. and $1,085 by the ratio of the national VerDate Sep<11>2014 17:43 Oct 26, 2016 Jkt 241001 PO 00000 Frm 00096 Fmt 4703 Sfmt 4703 E:\FR\FM\27OCN1.SGM 27OCN1

74858 Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Notices average wage index for 2015 To obtain the bend points for 2017, the larger of: (1) The 1978 amount of ($48,098.63) to that for 1977 ($9,779.44) we multiply each of the 1979 bend- $250 multiplied by the ratio of the produces the amounts of $885.30 and point amounts by the ratio of the national average wage index for 2015 to $5,336.40. We round these to $885 and national average wage index for 2015 to that for 1976; or (2) the current amount $5,336. Therefore, the portions of the that average for 1977. Then we round of $1,260. Section 213(d) provides that AIME to be used in 2017 are the first this amount to the nearest dollar. if the resulting amount is not a multiple $885, the amount between $885 and Multiplying the amounts of $230, $332, of $10, we round it to the nearest $5,336, and the amount over $5,336. and $433 by the ratio of the national multiple of $10. Therefore, for individuals who first average wage index for 2015 Quarter of Coverage Amount become eligible for old-age insurance ($48,098.63) to that for 1977 ($9,779.44) benefits or disability insurance benefits produces the amounts of $1,131.22, Multiplying the 1978 quarter of in 2017, or who die in 2017 before $1,632.89, and $2,129.64. We round coverage amount ($250) by the ratio of becoming eligible for benefits, their PIA these amounts to $1,131, $1,633, and the national average wage index for will be the sum of: $2,130. Therefore, the portions of the 2015 ($48,098.63) to that for 1976 (a) 90 percent of the first $885 of their PIAs to be used in 2017 are the first ($9,226.48) produces $1,303.28. We AIME, plus $1,131, the amount between $1,131 and then round this amount to $1,300. (b) 32 percent of their AIME over $885 $1,633, the amount between $1,633 and Because $1,300 exceeds the current and through $5,336, plus $2,130, and the amount over $2,130. amount of $1,260, the quarter of (c) 15 percent of their AIME over Thus, for the family of a worker who coverage amount is $1,300 for 2017. $5,336. becomes age 62 or dies in 2017 before Old-Law Contribution and Benefit Base We round this amount to the next age 62, we will compute the total lower multiple of $0.10 if it is not benefits payable to them so that it does General already a multiple of $0.10. This not exceed: The old-law contribution and benefit formula and the rounding adjustment (a) 150 percent of the first $1,131 of base for 2017 is $94,500. This base are stated in section 215(a) of the Act. the worker’s PIA, plus would have been effective under the Act (b) 272 percent of the worker’s PIA over without the enactment of the 1977 Maximum Benefits Payable to a Family $1,131 through $1,633, plus amendments. General (c) 134 percent of the worker’s PIA over The old-law contribution and benefit The 1977 amendments continued the $1,633 through $2,130, plus base is used by: (d) 175 percent of the worker’s PIA over (a) The Railroad Retirement program policy of limiting the total monthly $2,130. to determine certain tax liabilities and benefits that a worker’s family may We then round this amount to the tier II benefits payable under that receive based on the worker’s PIA. next lower multiple of $0.10 if it is not program to supplement the tier I Those amendments also continued the already a multiple of $0.10. This payments that correspond to basic relationship between maximum family formula and the rounding adjustment Social Security benefits, benefits and PIAs but changed the (b) the Pension Benefit Guaranty method of computing the maximum are stated in section 203(a) of the Act. Corporation to determine the maximum benefits that may be paid to a worker’s Quarter of Coverage Amount amount of pension guaranteed under the family. The Social Security Disability Employee Retirement Income Security Amendments of 1980 (Pub. L. 96–265) General Act (section 230(d) of the Act), established a formula for computing the The earnings required for a quarter of (c) Social Security to determine a year maximum benefits payable to the family coverage in 2017 is $1,300. A quarter of of coverage in computing the special of a disabled worker. This formula coverage is the basic unit for minimum benefit, as described earlier, applies to the family benefits of workers determining if a worker is insured under and who first become entitled to disability the Social Security program. For years (d) Social Security to determine a year insurance benefits after June 30, 1980, before 1978, we generally credited an of coverage (acquired whenever and who first become eligible for these individual with a quarter of coverage for earnings equal or exceed 25 percent of benefits after 1978. For disabled workers each quarter in which wages of $50 or the old-law base for this purpose only) initially entitled to disability benefits more were paid, or with 4 quarters of in computing benefits for persons who before July 1980 or whose disability coverage for every taxable year in which are also eligible to receive pensions began before 1979, we compute the $400 or more of self-employment based on employment not covered family maximum payable the same as income was earned. Beginning in 1978, under section 210 of the Act. the old-age and survivor family employers generally report wages yearly maximum. instead of quarterly. With the change to Computation yearly reporting, section 352(b) of the The old-law contribution and benefit Computing the Old-Age and Survivor Social Security Amendments of 1977 base is the larger of: (1) The 1994 old- Family Maximum amended section 213(d) of the Act to law base ($45,000) multiplied by the The formula used to compute the provide that a quarter of coverage would ratio of the national average wage index family maximum is similar to that used be credited for each $250 of an for 2015 to that for 1992; or (2) the to compute the PIA. It involves individual’s total wages and self- current old-law base ($88,200). If the computing the sum of four separate employment income for calendar year resulting amount is not a multiple of percentages of portions of the worker’s sradovich on DSK3GMQ082PROD with NOTICES 1978, up to a maximum of 4 quarters of $300, we round it to the nearest PIA. In 1979, these portions were the coverage for the year. The amendment multiple of $300. first $230, the amount between $230 also provided a formula for years after and $332, the amount between $332 and 1978. Old-Law Contribution and Benefit Base $433, and the amount over $433. We Amount refer to such dollar amounts in the Computation Multiplying the 1994 old-law formula as the ‘‘bend points’’ of the Under the prescribed formula, the contribution and benefit base ($45,000) family-maximum formula. quarter of coverage amount for 2017 is by the ratio of the national average wage VerDate Sep<11>2014 17:43 Oct 26, 2016 Jkt 241001 PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 E:\FR\FM\27OCN1.SGM 27OCN1

Federal Register / Vol. 81, No. 208 / Thursday, October 27, 2016 / Notices 74859 index for 2015 ($48,098.63) to that for Trial Work Period Earnings Threshold 1993 ($23,132.67) produces $2,079.25. 1992 ($22,935.42) produces $94,370.99. We then round this amount to $2,000. General We round this amount to $94,500. Therefore, the domestic employee Because $94,500 exceeds the current During a trial work period of 9 coverage threshold amount is $2,000 for amount of $88,200, the old-law months in a rolling 60-month period, a 2017. contribution and benefit base is $94,500 beneficiary receiving Social Security for 2017. disability benefits may test his or her Election Official and Election Worker ability to work and still receive monthly Coverage Threshold Substantial Gainful Activity Amounts benefit payments. To be considered a General General trial work period month, earnings must be over a certain level. In 2017, any The minimum amount an election A finding of disability under titles II official and election worker must earn month in which earnings exceed $840 is and XVI of the Act requires that a so the earnings are covered under Social considered a month of services for an person, except for a title XVI disabled Security or Medicare is the election individual’s trial work period. child, be unable to engage in SGA. A official and election worker coverage person who is earning more than a Computation threshold. For 2017, this threshold is certain monthly amount is ordinarily The method used to determine the $1,800. Section 218(c)(8)(B) of the Act considered to be engaging in SGA. The new amount is set forth in our provides the formula for increasing the monthly earnings considered as SGA regulations at 20 CFR 404.1592(b). threshold. depends on the nature of a person’s Monthly earnings in 2017, used to disability. Section 223(d)(4)(A) of the Computation determine whether a month is part of a Act specifies the SGA amount for trial work period, is the larger of: (1) Under the formula, the election statutorily blind individuals under title The amount for 2001 ($530) multiplied official and election worker coverage II while our regulations (20 CFR by the ratio of the national average wage threshold for 2017 is equal to the 1999 404.1574 and 416.974) specify the SGA index for 2015 to that for 1999; or (2) the amount of $1,000 multiplied by the ratio amount for non-blind individuals. amount for 2016. If the amount so of the national average wage index for Computation calculated is not a multiple of $10, we 2015 to that for 1997. If the amount we round it to the nearest multiple of $10. determine is not a multiple of $100, it The monthly SGA amount for we round it to the nearest multiple of statutorily blind individuals under title Trial Work Period Earnings Threshold $100. II for 2017 is the larger of: (1) The Amount amount for 1994 multiplied by the ratio Election Official and Election Worker Multiplying the 2001 monthly of the national average wage index for Coverage Threshold Amount earnings threshold ($530) by the ratio of 2015 to that for 1992; or (2) the amount Multiplying the 1999 coverage the national average wage index for for 2016. The monthly SGA amount for threshold amount ($1,000) by the ratio 2015 ($48,098.63) to that for 1999 non-blind disabled individuals for 2017 of the national average wage index for ($30,469.84) produces $836.64. We then is the larger of: (1) The amount for 2000 2015 ($48,098.63) to that for 1997 round this amount to $840. Because multiplied by the ratio of the national ($27,426.00) produces $1,753.76. We $840 exceeds the current amount of average wage index for 2015 to that for then round this amount to $1,800. $810, the monthly earnings threshold is 1998; or (2) the amount for 2016. In Therefore, the election official and either case, if the resulting amount is $840 for 2017. election worker coverage threshold not a multiple of $10, we round it to the Domestic Employee Coverage amount is $1,800 for 2017. nearest multiple of $10. Threshold (Catalog of Federal Domestic Assistance: SGA Amount for Statutorily Blind General Program Nos. 96.001 Social Security- Individuals The minimum amount a domestic Disability Insurance; 96.002 Social Security- Multiplying the 1994 monthly SGA worker must earn so that such earnings Retirement Insurance; 96.004 Social Security- Survivors Insurance; 96.006 Supplemental amount for statutorily blind individuals are covered under Social Security or Security Income) ($930) by the ratio of the national Medicare is the domestic employee average wage index for 2015 coverage threshold. For 2017, this Carolyn W. Colvin, ($48,098.63) to that for 1992 threshold is $2,000. Section 3121(x) of Acting Commissioner of Social Security. ($22,935.42) produces $1,950.33. We the Internal Revenue Code provides the [FR Doc. 2016–26026 Filed 10–26–16; 8:45 am] then round this amount to $1,950. formula for increasing the threshold. BILLING CODE 4191–02–P Because $1,950 exceeds the current amount of $1,820, the monthly SGA Computation amount for statutorily blind individuals Under the formula, the domestic is $1,950 for 2017. employee coverage threshold for 2017 is OFFICE OF THE UNITED STATES equal to the 1995 amount of $1,000 TRADE REPRESENTATIVE SGA Amount for Non-Blind Disabled multiplied by the ratio of the national Individuals [Docket Number USTR–2016–0021; Dispute average wage index for 2015 to that for Multiplying the 2000 monthly SGA 1993. If the resulting amount is not a Number WT/DS508] amount for non-blind individuals ($700) multiple of $100, we round it to the next by the ratio of the national average wage WTO Dispute Settlement Proceeding sradovich on DSK3GMQ082PROD with NOTICES lower multiple of $100. index for 2015 ($48,098.63) to that for Regarding China—Export Duties on 1998 ($28,861.44) produces $1,166.58. Domestic Employee Coverage Threshold Certain Raw Materials We then round this amount to $1,170. Amount AGENCY: Office of the United States Because $1,170 exceeds the current Multiplying the 1995 domestic Trade Representative. amount of $1,130, the monthly SGA employee coverage threshold ($1,000) ACTION: Notice with request for amount for non-blind disabled by the ratio of the national average wage comments. individuals is $1,170 for 2017. index for 2015 ($48,098.63) to that for VerDate Sep<11>2014 17:43 Oct 26, 2016 Jkt 241001 PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 E:\FR\FM\27OCN1.SGM 27OCN1


Document Created: 2016-10-27 01:52:40
Document Modified: 2016-10-27 01:52:40
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionNotice.
ContactSusan C. Kunkel, Office of the Chief Actuary, Social Security Administration, 6401 Security Boulevard, Baltimore, MD 21235, (410) 965-3000. Information relating to this announcement is available on our Internet site at www.socialsecurity.gov/oact/cola/index.html. For information on eligibility or claiming benefits, call 1-800-772-1213 (TTY 1-800-325- 0778), or visit our Internet site at www.socialsecurity.gov.
FR Citation81 FR 74854 
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