82_FR_60177 82 FR 59937 - Cost-of-Living Increase and Other Determinations for 2018

82 FR 59937 - Cost-of-Living Increase and Other Determinations for 2018

SOCIAL SECURITY ADMINISTRATION

Federal Register Volume 82, Issue 240 (December 15, 2017)

Page Range59937-59942
FR Document2017-27105

We are republishing the Cost-of-Living Increase and Other Determinations for 2018 with revisions to the average wage index and certain related dollar amounts. Under title II of the Social Security Act (Act), there will be a 2.0 percent cost-of-living increase in Social Security benefits effective December 2017. In addition, the national average wage index for 2016 is $48,642.15. The cost-of-living increase and national average wage index affect other program parameters as described below.

Federal Register, Volume 82 Issue 240 (Friday, December 15, 2017) 
[Federal Register Volume 82, Number 240 (Friday, December 15, 2017)]
[Notices]
[Pages 59937-59942]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-27105]


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SOCIAL SECURITY ADMINISTRATION

[Docket No. SSA-2017-0053]


Cost-of-Living Increase and Other Determinations for 2018

AGENCY: Social Security Administration.

ACTION: Notice.

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SUMMARY: We are republishing the Cost-of-Living Increase and Other 
Determinations for 2018 with revisions to the average wage index and 
certain related dollar amounts. Under title II of the Social Security 
Act (Act), there will be a 2.0 percent cost-of-living increase in 
Social Security benefits effective December 2017. In addition, the 
national average wage index for 2016 is $48,642.15. 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 2.0 percent cost-of-living 
increase, the following items will increase for 2018:
    (1) The maximum Federal Supplemental Security Income (SSI) monthly 
payment amounts for 2018 under title XVI of the Act will be $750 for an 
eligible individual, $1,125 for an eligible individual with an eligible 
spouse, and $376 for an essential person;
    (2) The special benefit amount under title VIII of the Act for 
certain World War II veterans will be $562.50 for 2018;
    (3) The student earned income exclusion under title XVI of the Act 
will be $1,820 per month in 2018, but not more than $7,350 for all of 
2018;
    (4) The dollar fee limit for services performed as a representative 
payee will be $42 per month ($80 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 2018; 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 will be $93 beginning in December 
2017.
    The national average wage index for 2016 is $48,642.15. This index 
affects the following amounts:
    (1) The Old-Age, Survivors, and Disability Insurance (OASDI) 
contribution and benefit base will be $128,400 for remuneration paid in 
2018 and self-employment income earned in taxable years beginning in 
2018;
    (2) The monthly exempt amounts under the OASDI retirement earnings 
test for taxable years ending in calendar year 2018 will be $1,420 for 
beneficiaries who will attain their Normal Retirement Age (NRA) 
(defined in the Retirement Earnings Test Exempt Amounts section below) 
after 2018 and $3,780 for those who attain NRA in 2018;
    (3) The dollar amounts (``bend points'') used in the primary 
insurance amount (PIA) formula for workers who become eligible for 
benefits, or who die before becoming eligible, in 2018 will be $895 and 
$5,397;
    (4) The bend points used in the formula for computing maximum 
family benefits for workers who become eligible for benefits, or who 
die before becoming eligible, in 2018 will be $1,144, $1,651, and 
$2,154;
    (5) The taxable earnings a person must have to be credited with a 
quarter of coverage in 2018 will be $1,320;
    (6) The ``old-law'' contribution and benefit base under title II of 
the Act will be $95,400 for 2018;
    (7) The monthly amount deemed to constitute substantial gainful 
activity (SGA) for statutorily blind persons in 2018 will be $1,970. 
The corresponding amount for non-blind disabled persons will be $1,180;
    (8) The earnings threshold establishing a month as a part of a 
trial work period will be $850 for 2018; and
    (9) Coverage thresholds for 2018 will be $2,100 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 2017. We must also publish the following by November 1: The 
national average wage index for 2016 (215(a)(1)(D)), the OASDI fund 
ratio for 2017 (section 215(i)(2)(C)(ii)), the OASDI contribution and 
benefit base for 2018 (section 230(a)), the earnings required to be 
credited with a quarter of coverage in 2018 (section 213(d)(2)), the 
monthly exempt amounts under the Social Security retirement earnings 
test for 2018 (section 203(f)(8)(A)), the

[[Page 59938]]

formula for computing a PIA for workers who first become eligible for 
benefits or die in 2018 (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 2018 (section 
203(a)(2)(C)).

Cost-of-Living Increases

General

    The cost-of-living increase is 2.0 percent for monthly benefits 
under title II and for monthly payments under title XVI of the Act. 
Under title II, OASDI benefits will increase by 2.0 percent for 
individuals eligible for December 2017 benefits, payable in January 
2018. 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 2.0 percent effective for payments made for 
January 2018 but paid on December 29, 2017.

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 2016, was based on the CPI increase from the 
third quarter of 2014 to the third quarter of 2016. Therefore, the last 
computation quarter is the third quarter of 2016. 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 2016 to the third 
quarter of 2017.
    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, 2016, the last 
computation quarter, 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 each 
month in the quarter ending September 30, 2017, is: For July 2017, 
238.617; for August 2017, 239.448; and for September 2017, 240.939. The 
arithmetic mean for the calendar quarter ending September 30, 2017 is 
239.668. The CPI for the calendar quarter ending September 30, 2017, 
exceeds that for the calendar quarter ending September 30, 2016 by 2.0 
percent (rounded to the nearest 0.1). Therefore, beginning December 
2017 a cost-of-living benefit increase of 2.0 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 2017, the OASDI fund ratio is assets of 
$2,847,687 million divided by estimated expenditures of $954,027 
million, or 298.5 percent. Because the 298.5 percent OASDI fund ratio 
exceeds 20.0 percent, the benefit increase for December 2017 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 payments; (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 2018, benefits will increase by 2.0 percent beginning with 
benefits for December 2017, which are payable in January 2018. For 
those first eligible after 2017, the 2.0 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 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 2.0 
percent benefit increase.

  Special Minimum PIAs and Maximum Family Benefits Payable for December
                                  2017
------------------------------------------------------------------------
                                                               Maximum
          Number of years of coverage               PIA         family
                                                               benefit
------------------------------------------------------------------------
11............................................       $40.80       $62.10
12............................................        83.30       126.10
13............................................       125.90       190.10
14............................................       168.30       253.60
15............................................       210.50       317.10
16............................................       253.30       381.20
17............................................       295.80       445.40
18............................................       338.30       508.80
19............................................       380.80       572.70
20............................................       423.50       636.00
21............................................       466.00       700.40
22............................................       508.20       764.00
23............................................       551.50       828.80
24............................................       593.90       892.00
25............................................       636.00       955.30
26............................................       679.30     1,020.10
27............................................       721.30     1,083.70
28............................................       763.80     1,147.20
29............................................       806.40     1,211.50
30............................................       848.80     1,274.60
------------------------------------------------------------------------

Title XVI Payment Amounts

    In accordance with section 1617 of the Act, maximum Federal SSI

[[Page 59939]]

payments amounts for the aged, blind, and disabled will increase by 2.0 
percent effective January 2018. For 2017, we derived the monthly 
payment amounts for an eligible individual, an eligible individual with 
an eligible spouse, and for an essential person--$735, $1,103, and 
$368, respectively--from yearly, unrounded Federal SSI payment amounts 
of $8,830.84, $13,244.80, and $4,425.55. For 2018, these yearly 
unrounded amounts respectively increase by 2.0 percent to $9,007.46, 
$13,509.70, and $4,514.06. 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 2018, are $9,000, $13,500, 
and $4,512. Dividing the yearly amounts by 12 gives the respective 
monthly amounts for 2018--$750, $1,125, and $376. 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 2018 under this provision is 75 percent of $750, or 
$562.50.

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 payments. The maximum amount of such income that we may exclude in 
2017 is $1,790 per month, but not more than $7,200 in all of 2017. 
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 2018, 
we increase the unrounded amount for 2017 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 2017 is $1,786.71. We increase this amount by 2.0 percent to 
$1,822.44, which we then round to $1,820. Similarly, we increase the 
unrounded yearly amount for 2017, $7,202.19, by 2.0 percent to 
$7,346.23 and round this to $7,350. Therefore, the maximum amount of 
the income exclusion applicable to a student in 2018 is $1,820 per 
month but not more than $7,350 in all of 2018.

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 2017, 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. Therefore, we increase the 
current amounts by 2.0 percent to $42 and $80 for 2018.

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 2017 by increasing 
the unrounded limit for December 2016, $91.47, by 2.0 percent, which is 
$93.30. We then round $93.30 to the next lower multiple of $1. The 
dollar limit effective for December 2017 is, therefore, $93.

National Average Wage Index for 2016

Computation

    We determined the national average wage index for calendar year 
2016 based on the 2015 national average wage index of $48,098.63, 
published in the Federal Register on October 27, 2016 (81 FR 74859), 
and the percentage increase in average wages from 2015 to 2016, 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 $46,119.78 for 2015 and $46,640.94 for 2016. To 
determine the national average wage index for 2016 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 2015 national average wage index of $48,098.63 by the percentage 
increase in average wages from 2015 to 2016 (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 2015 ($48,098.63) 
by the ratio of the average wage for 2016 ($46,640.94) to that for 2015 
($46,119.78) produces the 2016 index, $48,642.15. The national average 
wage index for calendar year 2016 is about 1.13 percent higher than the 
2015 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 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 $128,400 for 
remuneration paid in 2018 and self-employment income earned in taxable 
years beginning in 2018. 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.

[[Page 59940]]

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 2018 is the larger of: (1) The 1994 base of $60,600 multiplied by 
the ratio of the national average wage index for 2016 to that for 1992; 
or (2) the current base ($127,200). 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 2016 ($48,642.15 as 
determined above) to that for 1992 ($22,935.42) produces $128,522.36. 
We round this amount to $128,400. Because $128,400 exceeds the current 
base amount of $127,200, the OASDI contribution and benefit base is 
$128,400 for 2018.

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 
2018, the lower monthly exempt amount for 2018 is the larger of: (1) 
The 1994 monthly exempt amount multiplied by the ratio of the national 
average wage index for 2016 to that for 1992; or (2) the 2017 monthly 
exempt amount ($1,410). 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 
2018, the higher monthly exempt amount for 2018 is the larger of: (1) 
The 2002 monthly exempt amount multiplied by the ratio of the national 
average wage index for 2016 to that for 2000; or (2) the 2017 monthly 
exempt amount ($3,740). 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 2016 
($48,642.15) to that for 1992 ($22,935.42) produces $1,420.96. We round 
this to $1,420. Because $1,420 exceeds the current exempt amount of 
$1,410, the lower retirement earnings test monthly exempt amount is 
$1,420 for 2018. The lower annual exempt amount is $17,040 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 2016 
($48,642.15) to that for 2000 ($32,154.82) produces $3,781.87. We round 
this to $3,780. Because $3,780 exceeds the current exempt amount of 
$3,740, the higher retirement earnings test monthly exempt amount is 
$3,780 for 2018. The higher annual exempt amount is $45,360 under the 
retirement earnings test.

Primary Insurance Amount 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 2018, we multiply each of the 1979 
bend-point amounts by the ratio of the national average wage index for 
2016 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 average wage index for 2016 ($48,642.15) to that 
for 1977 ($9,779.44) produces the amounts of $895.31 and $5,396.70. We 
round these to $895 and $5,397. Therefore, the portions of the AIME to 
be used in 2018 are the first $895, the amount between $895 and $5,397, 
and the amount over $5,397.
    Therefore, for individuals who first become eligible for old-age 
insurance benefits or disability insurance benefits in 2018, or who die 
in 2018 before becoming eligible for benefits, their PIA will be the 
sum of:

(a) 90 percent of the first $895 of their AIME, plus
(b) 32 percent of their AIME over $895 and through $5,397, plus
(c) 15 percent of their AIME over $5,397.

    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

[[Page 59941]]

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 2018, we multiply each of the 1979 
bend-point amounts by the ratio of the national average wage index for 
2016 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 2016 ($48,642.15) to that for 1977 
($9,779.44) produces the amounts of $1,144.00, $1,651.34, and 
$2,153.71. We round these amounts to $1,144, $1,651, and $2,154. 
Therefore, the portions of the PIAs to be used in 2018 are the first 
$1,144, the amount between $1,144 and $1,651, the amount between $1,651 
and $2,154, and the amount over $2,154.
    Thus, for the family of a worker who becomes age 62 or dies in 2018 
before age 62, we will compute the total benefits payable to them so 
that it does not exceed:

(a) 150 percent of the first $1,144 of the worker's PIA, plus
(b) 272 percent of the worker's PIA over $1,144 through $1,651, plus
(c) 134 percent of the worker's PIA over $1,651 through $2,154, plus
(d) 175 percent of the worker's PIA over $2,154.

    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 2018 is $1,320. 
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 
2018 is the larger of: (1) The 1978 amount of $250 multiplied by the 
ratio of the national average wage index for 2016 to that for 1976; or 
(2) the current amount of $1,300. 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 2016 ($48,642.15) to that for 
1976 ($9,226.48) produces $1,318.00. We then round this amount to 
$1,320. Because $1,320 exceeds the current amount of $1,300, the 
quarter of coverage amount is $1,320 for 2018.

Old-Law Contribution and Benefit Base

General

    The old-law contribution and benefit base for 2018 is $95,400. 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 2016 to that for 1992; or (2) the current old-
law base ($94,500). 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 index for 2016 
($48,642.15) to that for 1992 ($22,935.42) produces $95,437.40. We 
round this amount to $95,400. Because $95,400 exceeds the current 
amount of $94,500, the old-law contribution and benefit base is $95,400 
for 2018.

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 2018 is the larger of: (1) The amount for 1994 multiplied 
by the ratio of the national average wage index for 2016 to that for 
1992; or (2) the amount for 2017. The monthly SGA amount for non-blind 
disabled individuals for 2018 is the larger of: (1) the amount for 2000 
multiplied by the ratio of the national average wage index for 2016 to 
that for 1998; or (2) the amount for 2017. In either case, if the 
resulting amount is not a multiple of $10, we round it to the nearest 
multiple of $10.

[[Page 59942]]

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 
2016 ($48,642.15) to that for 1992 ($22,935.42) produces $1,972.37. We 
then round this amount to $1,970. Because $1,970 exceeds the current 
amount of $1,950, the monthly SGA amount for statutorily blind 
individuals is $1,970 for 2018.

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 2016 
($48,642.15) to that for 1998 ($28,861.44) produces $1,179.76. We then 
round this amount to $1,180. Because $1,180 exceeds the current amount 
of $1,170, the monthly SGA amount for non-blind disabled individuals is 
$1,180 for 2018.

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 2018, any month in which earnings exceed $850 
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 2018, 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 2016 to that for 1999; or (2) the 
amount for 2017. 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 2016 ($48,642.15) to that for 
1999 ($30,469.84) produces $846.09. We then round this amount to $850. 
Because $850 exceeds the current amount of $840, the monthly earnings 
threshold is $850 for 2018.

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 2018, this threshold is $2,100. 
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 
2018 is equal to the 1995 amount of $1,000 multiplied by the ratio of 
the national average wage index for 2016 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 2016 ($48,642.15) 
to that for 1993 ($23,132.67) produces $2,102.75. We then round this 
amount to $2,100. Therefore, the domestic employee coverage threshold 
amount is $2,100 for 2018.

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 2018, 
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 2018 is equal to the 1999 amount of $1,000 
multiplied by the ratio of the national average wage index for 2016 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 2016 ($48,642.15) to that 
for 1997 ($27,426.00) produces $1,773.58. We then round this amount to 
$1,800. Therefore, the election official and election worker coverage 
threshold amount is $1,800 for 2018.

(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)


Nancy A. Berryhill,
Acting Commissioner of Social Security.
[FR Doc. 2017-27105 Filed 12-14-17; 8:45 am]
 BILLING CODE 4191-02-P

Federal Register / Vol. 82, No. 240 / Friday, December 15, 2017 / Notices 59937 (Catalog of Federal Domestic Assistance SOCIAL SECURITY ADMINISTRATION person who represents claimants will be Number 59008) $93 beginning in December 2017. [Docket No. SSA–2017–0053] The national average wage index for James E. Rivera, 2016 is $48,642.15. This index affects Associate Administrator for Disaster Cost-of-Living Increase and Other the following amounts: Assistance. Determinations for 2018 (1) The Old-Age, Survivors, and [FR Doc. 2017–27035 Filed 12–14–17; 8:45 am] Disability Insurance (OASDI) BILLING CODE 8025–01–P AGENCY: Social Security Administration. contribution and benefit base will be ACTION: Notice. $128,400 for remuneration paid in 2018 and self-employment income earned in SMALL BUSINESS ADMINISTRATION SUMMARY: We are republishing the Cost- taxable years beginning in 2018; of-Living Increase and Other (2) The monthly exempt amounts Determinations for 2018 with revisions under the OASDI retirement earnings [Disaster Declaration #15320 and #15321; to the average wage index and certain U.S. VIRGIN ISLANDS Disaster Number VI– test for taxable years ending in calendar related dollar amounts. Under title II of year 2018 will be $1,420 for 00011] the Social Security Act (Act), there will beneficiaries who will attain their be a 2.0 percent cost-of-living increase Normal Retirement Age (NRA) (defined Presidential Declaration Amendment of in Social Security benefits effective in the Retirement Earnings Test Exempt a Major Disaster for the U.S. Virgin December 2017. In addition, the Amounts section below) after 2018 and Islands national average wage index for 2016 is $3,780 for those who attain NRA in $48,642.15. The cost-of-living increase 2018; AGENCY:U.S. Small Business and national average wage index affect (3) The dollar amounts (‘‘bend Administration. other program parameters as described points’’) used in the primary insurance ACTION: Amendment 4. below. amount (PIA) formula for workers who FOR FURTHER INFORMATION CONTACT: become eligible for benefits, or who die SUMMARY: This is an amendment of the Susan C. Kunkel, Office of the Chief before becoming eligible, in 2018 will be Presidential declaration of a major Actuary, Social Security $895 and $5,397; disaster for the U.S. VIRGIN ISLANDS Administration, 6401 Security (4) The bend points used in the (FEMA–4340–DR), dated 09/20/2017. Boulevard, Baltimore, MD 21235, (410) formula for computing maximum family Incident: Hurricane Maria. 965–3000. Information relating to this benefits for workers who become announcement is available on our eligible for benefits, or who die before Incident Period: 09/16/2017 through becoming eligible, in 2018 will be internet site at www.socialsecurity.gov/ 09/22/2017. $1,144, $1,651, and $2,154; oact/cola/index.html. For information DATES: Issued on 12/08/2017. on eligibility or claiming benefits, call (5) The taxable earnings a person 1–800–772–1213 (TTY 1–800–325– must have to be credited with a quarter Physical Loan Application Deadline of coverage in 2018 will be $1,320; Date: 01/08/2018. 0778), or visit our internet site at www.socialsecurity.gov. (6) The ‘‘old-law’’ contribution and Economic Injury (EIDL) Loan benefit base under title II of the Act will Application Deadline Date: 06/20/2018. SUPPLEMENTARY INFORMATION: Because of be $95,400 for 2018; the 2.0 percent cost-of-living increase, (7) The monthly amount deemed to ADDRESSES: Submit completed loan the following items will increase for constitute substantial gainful activity applications to: U.S. Small Business 2018: (SGA) for statutorily blind persons in Administration, Processing and (1) The maximum Federal 2018 will be $1,970. The corresponding Disbursement Center, 14925 Kingsport Supplemental Security Income (SSI) amount for non-blind disabled persons Road, Fort Worth, TX 76155. monthly payment amounts for 2018 will be $1,180; under title XVI of the Act will be $750 (8) The earnings threshold FOR FURTHER INFORMATION CONTACT: A. for an eligible individual, $1,125 for an establishing a month as a part of a trial Escobar, Office of Disaster Assistance, eligible individual with an eligible work period will be $850 for 2018; and U.S. Small Business Administration, spouse, and $376 for an essential (9) Coverage thresholds for 2018 will 409 3rd Street SW, Suite 6050, person; be $2,100 for domestic workers and Washington, DC 20416, (202) 205–6734. (2) The special benefit amount under $1,800 for election officials and election SUPPLEMENTARY INFORMATION: The notice title VIII of the Act for certain World workers. of the President’s major disaster War II veterans will be $562.50 for 2018; According to section 215(i)(2)(D) of declaration for the U.S. VIRGIN (3) The student earned income the Act, we must publish the benefit ISLANDS, dated 09/20/2017, is hereby exclusion under title XVI of the Act will increase percentage and the revised amended to extend the deadline for be $1,820 per month in 2018, but not table of ‘‘special minimum’’ benefits filing applications for physical damages more than $7,350 for all of 2018; within 45 days after the close of the as a result of this disaster to 01/08/2018. (4) The dollar fee limit for services third calendar quarter of 2017. We must performed as a representative payee will also publish the following by November All other information in the original be $42 per month ($80 per month in the 1: The national average wage index for declaration remains unchanged. case of a beneficiary who is disabled 2016 (215(a)(1)(D)), the OASDI fund and has an alcoholism or drug addiction ratio for 2017 (section 215(i)(2)(C)(ii)), sradovich on DSK3GMQ082PROD with NOTICES (Catalog of Federal Domestic Assistance Number 59008) condition that leaves him or her the OASDI contribution and benefit base incapable of managing benefits) in 2018; for 2018 (section 230(a)), the earnings James E. Rivera, and required to be credited with a quarter of Associate Administrator, for Disaster (5) The dollar limit on the coverage in 2018 (section 213(d)(2)), the Assistance. administrative-cost fee assessment monthly exempt amounts under the [FR Doc. 2017–27036 Filed 12–14–17; 8:45 am] charged to an appointed representative Social Security retirement earnings test BILLING CODE 8025–01–P such as an attorney, agent, or other for 2018 (section 203(f)(8)(A)), the VerDate Sep<11>2014 23:42 Dec 14, 2017 Jkt 244001 PO 00000 Frm 00363 Fmt 4703 Sfmt 4703 E:\FR\FM\15DEN1.SGM 15DEN1

59938 Federal Register / Vol. 82, No. 240 / Friday, December 15, 2017 / Notices formula for computing a PIA for workers round the arithmetic mean, if necessary, provided by the Social Security who first become eligible for benefits or to the nearest 0.001. The CPI for each Amendments of 1977 (Pub. L. 95–216), die in 2018 (section 215(a)(1)(D)), and month in the quarter ending September as described later in this notice. the formula for computing the 30, 2016, the last computation quarter, For eligibility before 1979, we maximum benefits payable to the family is: For July 2016, 234.771; for August determine benefits by using a benefit of a worker who first becomes eligible 2016, 234.904; and for September 2016, table. The table is available on the for old-age benefits or dies in 2018 235.495. The arithmetic mean for the internet at www.socialsecurity.gov/oact/ (section 203(a)(2)(C)). calendar quarter ending September 30, ProgData/tableForm.html or by writing 2016 is 235.057. The CPI for each month to: Social Security Administration, Cost-of-Living Increases in the quarter ending September 30, Office of Public Inquiries, Windsor Park General 2017, is: For July 2017, 238.617; for Building, 6401 Security Boulevard, August 2017, 239.448; and for Baltimore, MD 21235. The cost-of-living increase is 2.0 Section 215(i)(2)(D) of the Act September 2017, 240.939. The percent for monthly benefits under title requires that, when we determine an arithmetic mean for the calendar quarter II and for monthly payments under title increase in Social Security benefits, we ending September 30, 2017 is 239.668. XVI of the Act. Under title II, OASDI will publish in the Federal Register a The CPI for the calendar quarter ending benefits will increase by 2.0 percent for revision of the range of the PIAs and September 30, 2017, exceeds that for the individuals eligible for December 2017 calendar quarter ending September 30, maximum family benefits based on the benefits, payable in January 2018. We 2016 by 2.0 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 2017 a cost-of-living benefit refer to these benefits as ‘‘special Pursuant to section 1617 of the Act, increase of 2.0 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 2.0 percent effective for Section 215(i) also specifies that a periods of low earnings. To qualify for payments made for January 2018 but benefit increase under title II, effective these benefits, an individual must have paid on December 29, 2017. for December of any year, will be at least 11 years of coverage. To earn a Computation limited to the increase in the national year of coverage for purposes of the 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 the Act was amended to provide cost-of- Funds at the beginning of that year to percent; for years after 1990, it is 15 living increases, only one Consumer the combined expenditures of these percent. In accordance with section Price Index existed, namely the funds during that year. For 2017, the 215(a)(1)(C)(i), the table below shows Consumer Price Index for Urban Wage OASDI fund ratio is assets of $2,847,687 the revised range of PIAs and maximum Earners and Clerical Workers. Although million divided by estimated family benefit amounts after the 2.0 the Bureau of Labor Statistics has since expenditures of $954,027 million, or percent benefit increase. developed other consumer price 298.5 percent. Because the 298.5 indices, we follow precedent by percent OASDI fund ratio exceeds 20.0 SPECIAL MINIMUM PIAS AND MAXIMUM continuing to use the Consumer Price percent, the benefit increase for Index for Urban Wage Earners and FAMILY BENEFITS PAYABLE FOR DE- December 2017 is not limited. CEMBER 2017 Clerical Workers. We refer to this index in the following paragraphs as the CPI. Program Amounts That Change Based on the Cost-of-Living Increase Number of Maximum Section 215(i)(1)(B) of the Act defines years of PIA family a ‘‘computation quarter’’ to be a third The following program amounts coverage benefit calendar quarter in which the average change based on the cost-of-living CPI exceeded the average CPI in the increase: (1) Title II benefits; (2) title 11 ...................... $40.80 $62.10 previous computation quarter. The last 12 ...................... 83.30 126.10 XVI payments; (3) title VIII benefits; (4) 13 ...................... 125.90 190.10 cost-of-living increase, effective for the student earned income exclusion; 14 ...................... 168.30 253.60 those eligible to receive title II benefits (5) the fee for services performed by a 15 ...................... 210.50 317.10 for December 2016, was based on the representative payee; and (6) the 16 ...................... 253.30 381.20 CPI increase from the third quarter of appointed representative fee 17 ...................... 295.80 445.40 2014 to the third quarter of 2016. assessment. 18 ...................... 338.30 508.80 Therefore, the last computation quarter 19 ...................... 380.80 572.70 is the third quarter of 2016. The law Title II Benefit Amounts 20 ...................... 423.50 636.00 states that a cost-of-living increase for In accordance with section 215(i) of 21 ...................... 466.00 700.40 22 ...................... 508.20 764.00 benefits is determined based on the the Act, for workers and family 23 ...................... 551.50 828.80 percentage increase, if any, in the CPI members for whom eligibility for 24 ...................... 593.90 892.00 from the last computation quarter to the benefits (that is, the worker’s attainment 25 ...................... 636.00 955.30 third quarter of the current year. of age 62, or disability or death before 26 ...................... 679.30 1,020.10 Therefore, we compute the increase in sradovich on DSK3GMQ082PROD with NOTICES age 62) occurred before 2018, benefits 27 ...................... 721.30 1,083.70 the CPI from the third quarter of 2016 will increase by 2.0 percent beginning 28 ...................... 763.80 1,147.20 to the third quarter of 2017. with benefits for December 2017, which 29 ...................... 806.40 1,211.50 Section 215(i)(1) of the Act states that 30 ...................... 848.80 1,274.60 are payable in January 2018. For those the CPI for a cost-of-living computation first eligible after 2017, the 2.0 percent quarter is the arithmetic mean of this increase will not apply. Title XVI Payment Amounts index for the 3 months in that quarter. For eligibility after 1978, we In accordance with section 1617 of In accordance with 20 CFR 404.275, we determine benefits using a formula the Act, maximum Federal SSI VerDate Sep<11>2014 23:42 Dec 14, 2017 Jkt 244001 PO 00000 Frm 00364 Fmt 4703 Sfmt 4703 E:\FR\FM\15DEN1.SGM 15DEN1

Federal Register / Vol. 82, No. 240 / Friday, December 15, 2017 / Notices 59939 payments amounts for the aged, blind, $7,202.19, by 2.0 percent to $7,346.23 2016. To determine the national average and disabled will increase by 2.0 and round this to $7,350. Therefore, the wage index for 2016 at a level consistent percent effective January 2018. For maximum amount of the income with the national average wage indexing 2017, we derived the monthly payment exclusion applicable to a student in series for 1951 through 1977 (published amounts for an eligible individual, an 2018 is $1,820 per month but not more December 29, 1978, at 43 FR 61016), we eligible individual with an eligible than $7,350 in all of 2018. multiply the 2015 national average wage spouse, and for an essential person— index of $48,098.63 by the percentage $735, $1,103, and $368, respectively— Fee for Services Performed as a increase in average wages from 2015 to from yearly, unrounded Federal SSI Representative Payee 2016 (based on SSA-tabulated wage payment amounts of $8,830.84, Sections 205(j)(4)(A)(i) and data) as follows. We round the result to $13,244.80, and $4,425.55. For 2018, 1631(a)(2)(D)(i) of the Act permit a the nearest cent. these yearly unrounded amounts qualified organization to collect a respectively increase by 2.0 percent to monthly fee from a beneficiary for National Average Wage Index Amount $9,007.46, $13,509.70, and $4,514.06. expenses incurred in providing services Multiplying the national average wage We must round each of these resulting as the beneficiary’s representative index for 2015 ($48,098.63) by the ratio amounts, when not a multiple of $12, to payee. In 2017, the fee is limited to the of the average wage for 2016 the next lower multiple of $12. lesser of: (1) 10 percent of the monthly ($46,640.94) to that for 2015 Therefore, the annual amounts, effective benefit involved; or (2) $41 each month ($46,119.78) produces the 2016 index, for 2018, are $9,000, $13,500, and ($78 each month when the beneficiary $48,642.15. The national average wage $4,512. Dividing the yearly amounts by is entitled to disability benefits and has index for calendar year 2016 is about 12 gives the respective monthly an alcoholism or drug addiction 1.13 percent higher than the 2015 index. amounts for 2018—$750, $1,125, and condition that makes the individual $376. For an eligible individual with an incapable of managing such benefits). Program Amounts That Change Based eligible spouse, we equally divide the The dollar fee limits are subject to on the National Average Wage Index amount payable between the two increase by the cost-of-living increase, Under the Act, the following amounts spouses. with the resulting amounts rounded to change with annual changes in the Title VIII Benefit Amount the nearest whole dollar amount. national average wage index: (1) The Therefore, we increase the current OASDI contribution and benefit base; Title VIII of the Act provides for amounts by 2.0 percent to $42 and $80 special benefits to certain World War II (2) the exempt amounts under the for 2018. retirement earnings test; (3) the dollar veterans who reside outside the United States. Section 805 of the Act provides Appointed Representative Fee amounts, or bend points, in the PIA that ‘‘[t]he benefit under this title Assessment formula; (4) the bend points in the payable to a qualified individual for any maximum family benefit formula; (5) Under sections 206(d) and 1631(d) of month shall be in an amount equal to the earnings required to credit a worker the Act, whenever we pay a fee to a 75 percent of the Federal benefit rate with a quarter of coverage; (6) the old- representative such as an attorney, [the maximum amount for an eligible law contribution and benefit base (as agent, or other person who represents individual] under title XVI for the determined under section 230 of the Act claimants, we must impose on the month, reduced by the amount of the as in effect before the 1977 representative an assessment to cover qualified individual’s benefit income for amendments); (7) the substantial gainful administrative costs. The assessment is the month.’’ Therefore, the monthly activity (SGA) amount applicable to no more than 6.3 percent of the benefit for 2018 under this provision is statutorily blind individuals; and (8) the representative’s authorized fee or, if 75 percent of $750, or $562.50. coverage threshold for election officials lower, a dollar amount that is subject to and election workers. Additionally, Student Earned Income Exclusion increase by the cost-of-living increase. under section 3121(x) of the Internal We derive the dollar limit for December A blind or disabled child who is a Revenue Code, the domestic employee 2017 by increasing the unrounded limit student regularly attending school, coverage threshold is based on changes for December 2016, $91.47, by 2.0 college, university, or a course of in the national average wage index. percent, which is $93.30. We then vocational or technical training can Two amounts also increase under round $93.30 to the next lower multiple have limited earnings that do not count regulatory requirements—the SGA of $1. The dollar limit effective for against his or her SSI payments. The amount applicable to non-blind December 2017 is, therefore, $93. maximum amount of such income that disabled persons, and the monthly we may exclude in 2017 is $1,790 per National Average Wage Index for 2016 earnings threshold that establishes a month, but not more than $7,200 in all month as part of a trial work period for Computation of 2017. These amounts increase based disabled beneficiaries. on a formula set forth in regulation 20 We determined the national average CFR 416.1112. wage index for calendar year 2016 based OASDI Contribution and Benefit Base To compute each of the monthly and on the 2015 national average wage index General yearly maximum amounts for 2018, we of $48,098.63, published in the Federal increase the unrounded amount for Register on October 27, 2016 (81 FR The OASDI contribution and benefit 2017 by the latest cost-of-living 74859), and the percentage increase in base is $128,400 for remuneration paid increase. If the amount so calculated is average wages from 2015 to 2016, as in 2018 and self-employment income sradovich on DSK3GMQ082PROD with NOTICES not a multiple of $10, we round it to the measured by annual wage data. We earned in taxable years beginning in nearest multiple of $10. The unrounded tabulate the annual wage data, including 2018. The OASDI contribution and monthly amount for 2017 is $1,786.71. contributions to deferred compensation benefit base serves as the maximum We increase this amount by 2.0 percent plans, as required by section 209(k) of annual earnings on which OASDI taxes to $1,822.44, which we then round to the Act. The average amounts of wages are paid. It is also the maximum annual $1,820. Similarly, we increase the calculated from these data were earnings used in determining a person’s unrounded yearly amount for 2017, $46,119.78 for 2015 and $46,640.94 for OASDI benefits. VerDate Sep<11>2014 23:42 Dec 14, 2017 Jkt 244001 PO 00000 Frm 00365 Fmt 4703 Sfmt 4703 E:\FR\FM\15DEN1.SGM 15DEN1

59940 Federal Register / Vol. 82, No. 240 / Friday, December 15, 2017 / Notices Computation of $10, we round it to the nearest add the indexed earnings for those Section 230(b) of the Act provides the multiple of $10. years, and divide the total amount by formula used to determine the OASDI Under the formula that applies to the total number of months in those contribution and benefit base. Under the beneficiaries attaining NRA in 2018, the years. We then round the resulting formula, the base for 2018 is the larger higher monthly exempt amount for 2018 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 Computing the PIA average wage index for 2016 to that for of the national average wage index for 2016 to that for 2000; or (2) the 2017 The PIA is the sum of three separate 1992; or (2) the current base ($127,200). monthly exempt amount ($3,740). If the percentages of portions of the AIME. In If the resulting amount is not a multiple resulting amount is not a multiple of 1979 (the first year the formula was in of $300, we round it to the nearest $10, we round it to the nearest multiple effect), these portions were the first multiple of $300. of $10. $180, the amount between $180 and OASDI Contribution and Benefit Base $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 2016 ($48,642.15 as wage index for 2016 ($48,642.15) to that $1,085. determined above) to that for 1992 for 1992 ($22,935.42) produces To obtain the bend points for 2018, ($22,935.42) produces $128,522.36. We $1,420.96. We round this to $1,420. we multiply each of the 1979 bend- round this amount to $128,400. Because Because $1,420 exceeds the current point amounts by the ratio of the $128,400 exceeds the current base exempt amount of $1,410, the lower national average wage index for 2016 to amount of $127,200, the OASDI retirement earnings test monthly exempt that average for 1977. We then round contribution and benefit base is amount is $1,420 for 2018. The lower these results to the nearest dollar. $128,400 for 2018. annual exempt amount is $17,040 under Multiplying the 1979 amounts of $180 the retirement earnings test. and $1,085 by the ratio of the national Retirement Earnings Test Exempt average wage index for 2016 Amounts Higher Exempt Amount ($48,642.15) to that for 1977 ($9,779.44) General Multiplying the 2002 retirement produces the amounts of $895.31 and earnings test monthly exempt amount of $5,396.70. We round these to $895 and We withhold Social Security benefits $2,500 by the ratio of the national $5,397. Therefore, the portions of the when a beneficiary under the NRA has average wage index for 2016 AIME to be used in 2018 are the first earnings over the applicable retirement ($48,642.15) to that for 2000 $895, the amount between $895 and earnings test exempt amount. The NRA ($32,154.82) produces $3,781.87. We $5,397, and the amount over $5,397. is the age when retirement benefits round this to $3,780. Because $3,780 Therefore, for individuals who first (before rounding) are equal to the PIA. exceeds the current exempt amount of become eligible for old-age insurance The NRA is age 66 for those born in $3,740, the higher retirement earnings benefits or disability insurance benefits 1943–54, and it gradually increases to test monthly exempt amount is $3,780 in 2018, or who die in 2018 before age 67 for those born in 1960 or later. for 2018. The higher annual exempt becoming eligible for benefits, their PIA A higher exempt amount applies in the amount is $45,360 under the retirement will be the sum of: year in which a person attains NRA, but earnings test. (a) 90 percent of the first $895 of their only for earnings in months before such AIME, plus attainment. A lower exempt amount Primary Insurance Amount Formula (b) 32 percent of their AIME over $895 applies at all other ages below NRA. General and through $5,397, plus Section 203(f)(8)(B) of the Act provides (c) 15 percent of their AIME over formulas for determining the monthly The Social Security Amendments of $5,397. exempt amounts. The annual exempt 1977 provided a method for computing benefits that generally applies when a We round this amount to the next amounts are exactly 12 times the lower multiple of $0.10 if it is not monthly amounts. worker first becomes eligible for benefits after 1978. This method uses the already a multiple of $0.10. This For beneficiaries who attain NRA in worker’s average indexed monthly formula and the rounding adjustment the year, we withhold $1 in benefits for earnings (AIME) to compute the PIA. are stated in section 215(a) of the Act. every $3 of earnings over the annual exempt amount for months before NRA. We adjust the formula each year to Maximum Benefits Payable to a Family For all other beneficiaries under NRA, reflect changes in general wage levels, as measured by the national average General we withhold $1 in benefits for every $2 of earnings over the annual exempt wage index. The 1977 amendments continued the amount. We also adjust, or index, a worker’s policy of limiting the total monthly earnings to reflect the change in the benefits that a worker’s family may Computation general wage levels that occurred during receive based on the worker’s PIA. Under the formula that applies to the worker’s years of employment. Such Those amendments also continued the beneficiaries attaining NRA after 2018, indexing ensures that a worker’s future relationship between maximum family sradovich on DSK3GMQ082PROD with NOTICES the lower monthly exempt amount for benefit level will reflect the general rise benefits and PIAs but changed the 2018 is the larger of: (1) The 1994 in the standard of living that will occur method of computing the maximum monthly exempt amount multiplied by during his or her working lifetime. To benefits that may be paid to a worker’s the ratio of the national average wage compute the AIME, we first determine family. The Social Security Disability index for 2016 to that for 1992; or (2) the the required number of years of Amendments of 1980 (Pub. L. 96–265) 2017 monthly exempt amount ($1,410). earnings. 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Federal Register / Vol. 82, No. 240 / Friday, December 15, 2017 / Notices 59941 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 Computation maximum. instead of quarterly. With the change to 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 2016 to that for 1992; or (2) the to compute the PIA. It involves individual’s total wages and self- current old-law base ($94,500). 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 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 Old-Law Contribution and Benefit Base and $332, the amount between $332 and 1978. Amount $433, and the amount over $433. We Computation Multiplying the 1994 old-law refer to such dollar amounts in the Under the prescribed formula, the contribution and benefit base ($45,000) formula as the ‘‘bend points’’ of the quarter of coverage amount for 2018 is by the ratio of the national average wage family-maximum formula. the larger of: (1) The 1978 amount of index for 2016 ($48,642.15) to that for To obtain the bend points for 2018, $250 multiplied by the ratio of the 1992 ($22,935.42) produces $95,437.40. we multiply each of the 1979 bend- national average wage index for 2016 to We round this amount to $95,400. point amounts by the ratio of the that for 1976; or (2) the current amount Because $95,400 exceeds the current national average wage index for 2016 to of $1,300. Section 213(d) provides that amount of $94,500, the old-law that average for 1977. Then we round if the resulting amount is not a multiple contribution and benefit base is $95,400 this amount to the nearest dollar. of $10, we round it to the nearest for 2018. Multiplying the amounts of $230, $332, and $433 by the ratio of the national multiple of $10. Substantial Gainful Activity Amounts average wage index for 2016 Quarter of Coverage Amount General ($48,642.15) to that for 1977 ($9,779.44) Multiplying the 1978 quarter of A finding of disability under titles II produces the amounts of $1,144.00, coverage amount ($250) by the ratio of and XVI of the Act requires that a $1,651.34, and $2,153.71. We round the national average wage index for person, except for a title XVI disabled these amounts to $1,144, $1,651, and 2016 ($48,642.15) to that for 1976 child, be unable to engage in SGA. A $2,154. Therefore, the portions of the ($9,226.48) produces $1,318.00. We person who is earning more than a PIAs to be used in 2018 are the first then round this amount to $1,320. certain monthly amount is ordinarily $1,144, the amount between $1,144 and Because $1,320 exceeds the current considered to be engaging in SGA. The $1,651, the amount between $1,651 and amount of $1,300, the quarter of monthly earnings considered as SGA $2,154, and the amount over $2,154. coverage amount is $1,320 for 2018. depends on the nature of a person’s Thus, for the family of a worker who becomes age 62 or dies in 2018 before Old-Law Contribution and Benefit Base disability. Section 223(d)(4)(A) of the age 62, we will compute the total Act specifies the SGA amount for General statutorily blind individuals under title benefits payable to them so that it does not exceed: The old-law contribution and benefit II while our regulations (20 CFR base for 2018 is $95,400. This base 404.1574 and 416.974) specify the SGA (a) 150 percent of the first $1,144 of the would have been effective under the Act amount for non-blind individuals. worker’s PIA, plus (b) 272 percent of the worker’s PIA over without the enactment of the 1977 Computation $1,144 through $1,651, plus amendments. The old-law contribution and benefit The monthly SGA amount for (c) 134 percent of the worker’s PIA over statutorily blind individuals under title $1,651 through $2,154, plus base is used by: (a) the Railroad Retirement program to II for 2018 is the larger of: (1) The (d) 175 percent of the worker’s PIA over determine certain tax liabilities and tier amount for 1994 multiplied by the ratio $2,154. II benefits payable under that program of the national average wage index for We then round this amount to the 2016 to that for 1992; or (2) the amount to supplement the tier I payments that next lower multiple of $0.10 if it is not for 2017. The monthly SGA amount for correspond to basic Social Security already a multiple of $0.10. This non-blind disabled individuals for 2018 sradovich on DSK3GMQ082PROD with NOTICES benefits, formula and the rounding adjustment (b) the Pension Benefit Guaranty is the larger of: (1) the amount for 2000 are stated in section 203(a) of the Act. Corporation to determine the maximum multiplied by the ratio of the national Quarter of Coverage Amount amount of pension guaranteed under the average wage index for 2016 to that for Employee Retirement Income Security 1998; or (2) the amount for 2017. In General Act (section 230(d) of the Act), either case, if the resulting amount is The earnings required for a quarter of (c) Social Security to determine a year not a multiple of $10, we round it to the coverage in 2018 is $1,320. A quarter of of coverage in computing the special nearest multiple of $10. 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59942 Federal Register / Vol. 82, No. 240 / Friday, December 15, 2017 / Notices SGA Amount for Statutorily Blind Domestic Employee Coverage election worker coverage threshold Individuals Threshold amount is $1,800 for 2018. Multiplying the 1994 monthly SGA General (Catalog of Federal Domestic Assistance: amount for statutorily blind individuals Program Nos. 96.001 Social Security- The minimum amount a domestic Disability Insurance; 96.002 Social Security- ($930) by the ratio of the national worker must earn so that such earnings average wage index for 2016 Retirement Insurance; 96.004 Social Security- are covered under Social Security or Survivors Insurance; 96.006 Supplemental ($48,642.15) to that for 1992 Medicare is the domestic employee ($22,935.42) produces $1,972.37. We Security Income) coverage threshold. For 2018, this then round this amount to $1,970. threshold is $2,100. Section 3121(x) of Nancy A. Berryhill, Because $1,970 exceeds the current the Internal Revenue Code provides the amount of $1,950, the monthly SGA Acting Commissioner of Social Security. formula for increasing the threshold. amount for statutorily blind individuals [FR Doc. 2017–27105 Filed 12–14–17; 8:45 am] is $1,970 for 2018. Computation BILLING CODE 4191–02–P SGA Amount for Non-Blind Disabled Under the formula, the domestic Individuals employee coverage threshold for 2018 is equal to the 1995 amount of $1,000 Multiplying the 2000 monthly SGA multiplied by the ratio of the national DEPARTMENT OF STATE amount for non-blind individuals ($700) average wage index for 2016 to that for by the ratio of the national average wage 1993. If the resulting amount is not a [Public Notice: 10216] index for 2016 ($48,642.15) to that for multiple of $100, we round it to the next 1998 ($28,861.44) produces $1,179.76. lower multiple of $100. Advisory Committee on International We then round this amount to $1,180. Postal and Delivery Services Domestic Employee Coverage Threshold Because $1,180 exceeds the current Amount amount of $1,170, the monthly SGA AGENCY: Department of State. amount for non-blind disabled Multiplying the 1995 domestic ACTION: Notice of charter renewal of the individuals is $1,180 for 2018. employee coverage threshold ($1,000) Advisory Committee on International by the ratio of the national average wage Trial Work Period Earnings Threshold index for 2016 ($48,642.15) to that for Postal and Delivery Services (IPoDS). General 1993 ($23,132.67) produces $2,102.75. We then round this amount to $2,100. This notice announces the renewal of During a trial work period of 9 Therefore, the domestic employee the charter or the Advisory Committee months in a rolling 60-month period, a coverage threshold amount is $2,100 for on International Postal and Delivery beneficiary receiving Social Security 2018. Services (IPoDS). In accordance with the disability benefits may test his or her provisions of the 2006 Postal ability to work and still receive monthly Election Official and Election Worker Accountability and Enhancement Act benefit payments. To be considered a Coverage Threshold (Pub. L. 109–435) and the Federal trial work period month, earnings must General Advisory Committee Act (Pub. L. 92– be over a certain level. In 2018, any 463), the Committee’s charter has been month in which earnings exceed $850 is The minimum amount an election official and election worker must earn extended until November 14, 2019. considered a month of services for an so the earnings are covered under Social The Department of State uses the individual’s trial work period. Security or Medicare is the election IPoDS Committee to keep informed of Computation official and election worker coverage the interests and problems of users and threshold. For 2018, this threshold is providers of international postal and The method used to determine the $1,800. Section 218(c)(8)(B) of the Act delivery services. In addition to new amount is set forth in our provides the formula for increasing the representative members from affected regulations at 20 CFR 404.1592(b). threshold. stakeholder groups, the Committee also Monthly earnings in 2018, used to determine whether a month is part of a Computation includes Federal members from the trial work period, is the larger of: (1) Department of Commerce, the Under the formula, the election Department of Homeland Security, the The amount for 2001 ($530) multiplied official and election worker coverage by the ratio of the national average wage Office of the United States Trade threshold for 2018 is equal to the 1999 Representative, the Postal Regulatory index for 2016 to that for 1999; or (2) the amount of $1,000 multiplied by the ratio amount for 2017. If the amount so Commission, the Military Postal Service of the national average wage index for calculated is not a multiple of $10, we Agency, and the United States Postal 2016 to that for 1997. If the amount we round it to the nearest multiple of $10. Service. Members are appointed by the determine is not a multiple of $100, it we round it to the nearest multiple of Assistant Secretary of State for Trial Work Period Earnings Threshold International Organization Affairs. Amount $100. Election Official and Election Worker FOR FURTHER INFORMATION CONTACT: Ms. Multiplying the 2001 monthly Shereece Robinson of the Office of Coverage Threshold Amount earnings threshold ($530) by the ratio of sradovich on DSK3GMQ082PROD with NOTICES Specialized and Technical Agencies the national average wage index for Multiplying the 1999 coverage (IO/STA), Bureau of International 2016 ($48,642.15) to that for 1999 threshold amount ($1,000) by the ratio Organization Affairs, U.S. Department of ($30,469.84) produces $846.09. We then of the national average wage index for State, at tel. (202) 663–2649, by email at round this amount to $850. Because 2016 ($48,642.15) to that for 1997 RobinsonSA2@state.gov or by mail at $850 exceeds the current amount of ($27,426.00) produces $1,773.58. We IO/STA, L409 (SA1); Department of $840, the monthly earnings threshold is then round this amount to $1,800. $850 for 2018. Therefore, the election official and VerDate Sep<11>2014 23:42 Dec 14, 2017 Jkt 244001 PO 00000 Frm 00368 Fmt 4703 Sfmt 4703 E:\FR\FM\15DEN1.SGM 15DEN1


Document Created: 2017-12-15 03:37:44
Document Modified: 2017-12-15 03:37:44
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 Citation82 FR 59937 
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