83_FR_53908 83 FR 53702 - Cost-of-Living Increase and Other Determinations for 2019

83 FR 53702 - Cost-of-Living Increase and Other Determinations for 2019

SOCIAL SECURITY ADMINISTRATION

Federal Register Volume 83, Issue 206 (October 24, 2018)

Page Range53702-53707
FR Document2018-23193

Under title II of the Social Security Act (Act), there will be a 2.8 percent cost-of-living increase in Social Security benefits effective December 2018. In addition, the national average wage index for 2017 is $50,321.89. The cost-of-living increase and national average wage index affect other program parameters as described below.

Federal Register, Volume 83 Issue 206 (Wednesday, October 24, 2018) 
[Federal Register Volume 83, Number 206 (Wednesday, October 24, 2018)]
[Notices]
[Pages 53702-53707]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-23193]


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SOCIAL SECURITY ADMINISTRATION

[Docket No. SSA-2018-0049]


Cost-of-Living Increase and Other Determinations for 2019

AGENCY: Social Security Administration.

ACTION: Notice.

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SUMMARY: Under title II of the Social Security Act (Act), there will be 
a 2.8 percent cost-of-living increase in Social Security benefits 
effective December 2018. In addition, the national average wage index 
for 2017 is $50,321.89. 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 https://www.socialsecurity.gov 
online.

SUPPLEMENTARY INFORMATION: Because of the 2.8 percent cost-of-living 
increase, the following items will increase for 2019:
    (1) The maximum Federal Supplemental Security Income (SSI) monthly 
payment amounts for 2019 under title XVI of the Act will be $771 for an 
eligible individual, $1,157 for an eligible individual with an eligible 
spouse, and $386 for an essential person;
    (2) The special benefit amount under title VIII of the Act for 
certain World War II veterans will be $578.25 for 2019;
    (3) The student earned income exclusion under title XVI of the Act 
will be $1,870 per month in 2019, but not more than $7,550 for all of 
2019;
    (4) The dollar fee limit for services performed as a representative 
payee will be $43 per month ($82 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 2019; 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 $95 beginning in December 
2018.
    The national average wage index for 2017 is $50,321.89. This index 
affects the following amounts:
    (1) The Old-Age, Survivors, and Disability Insurance (OASDI) 
contribution and benefit base will be $132,900 for remuneration paid in 
2019 and self-employment income earned in taxable years beginning in 
2019;
    (2) The monthly exempt amounts under the OASDI retirement earnings 
test for taxable years ending in calendar year 2019 will be $1,470 for 
beneficiaries who will attain their Normal Retirement Age (NRA) 
(defined in the Retirement Earnings Test Exempt Amounts section below) 
after 2019 and $3,910 for those who attain NRA in 2019;
    (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 2019 will be $926 and 
$5,583;
    (4) The bend points used in the formula for computing maximum 
family benefits for workers who become eligible for retirement 
benefits, or who die before becoming eligible, in 2019 will be $1,184, 
$1,708, and $2,228;
    (5) The taxable earnings a person must have to be credited with a 
quarter of coverage in 2019 will be $1,360;
    (6) The ``old-law'' contribution and benefit base under title II of 
the Act will be $98,700 for 2019;
    (7) The monthly amount deemed to constitute substantial gainful 
activity (SGA) for statutorily blind persons in 2019 will be $2,040. 
The corresponding amount for non-blind disabled persons will be $1,220;
    (8) The earnings threshold establishing a month as a part of a 
trial work period will be $880 for 2019; and
    (9) Coverage thresholds for 2019 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 2018. We must also publish the following by November 1: The 
national average wage index for 2017 (215(a)(1)(D)), the OASDI fund 
ratio for 2018 (section 215(i)(2)(C)(ii)), the OASDI contribution and 
benefit base for 2019 (section 230(a)), the earnings required to be 
credited with a quarter of coverage in 2019 (section 213(d)(2)), the 
monthly exempt amounts under the Social Security retirement earnings 
test for 2019 (section 203(f)(8)(A)), the formula for computing a PIA 
for workers who first become eligible for benefits or die in 2019 
(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 2019 (section 203(a)(2)(C)).

Cost-of-Living Increases

General

    The cost-of-living increase is 2.8 percent for monthly benefits 
under title II and for monthly payments under title XVI of the Act. 
Under title II, OASDI monthly benefits will increase by 2.8 percent for 
individuals eligible for December 2018 benefits, payable in January 
2019. We base this increase on the authority contained in section 
215(i) of the Act.
    Pursuant to section 1617 of the Act, Federal SSI benefit rates will 
also increase by 2.8 percent effective for payments made for January 
2019 but paid on December 31, 2018.

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

[[Page 53703]]

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 2017, was based on the CPI increase from the 
third quarter of 2016 to the third quarter of 2017. Therefore, the last 
computation quarter is the third quarter of 2017. 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 2017 to the third 
quarter of 2018.
    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, 2017, the last 
computation quarter, 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 each 
month in the quarter ending September 30, 2018, is: For July 2018, 
246.155; for August 2018, 246.336; and for September 2018, 246.565. The 
arithmetic mean for the calendar quarter ending September 30, 2018 is 
246.352. The CPI for the calendar quarter ending September 30, 2018, 
exceeds that for the calendar quarter ending September 30, 2017 by 2.8 
percent (rounded to the nearest 0.1). Therefore, beginning December 
2018 a cost-of-living benefit increase of 2.8 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 2018, the OASDI fund ratio is assets of 
$2,891,789 million divided by estimated expenditures of $1,000,708 
million, or 289.0 percent. Because the 289.0 percent OASDI fund ratio 
exceeds 20.0 percent, the benefit increase for December 2018 is not 
limited to the increase in the AWI.

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 2019, benefits will increase by 2.8 percent beginning with 
benefits for December 2018, which are payable in January 2019. For 
those first eligible after 2018, the 2.8 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 https://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 2.8 
percent benefit increase.

  Special Minimum PIAs and Maximum Family Benefits Payable for December
                                  2018
------------------------------------------------------------------------
                                                                Maximum
            Number of years of coverage                PIA       family
                                                                benefit
------------------------------------------------------------------------
11................................................     $41.90     $63.80
12................................................      85.60     129.60
13................................................     129.40     195.40
14................................................     173.00     260.70
15................................................     216.30     325.90
16................................................     260.30     391.80
17................................................     304.00     457.80
18................................................     347.70     523.00
19................................................     391.40     588.70
20................................................     435.30     653.80
21................................................     479.00     720.00
22................................................     522.40     785.30
23................................................     566.90     852.00
24................................................     610.50     916.90
25................................................     653.80     982.00
26................................................     698.30   1,048.60
27................................................     741.40   1,114.00
28................................................     785.10   1,179.30
29................................................     828.90   1,245.40
30................................................     872.50   1,310.20
------------------------------------------------------------------------

Title XVI Payment Amounts

    In accordance with section 1617 of the Act, the Federal benefit 
rates used in computing Federal SSI payments for the aged, blind, and 
disabled will increase by 2.8 percent effective January 2019. For 2018, 
we derived the monthly payment amounts for an eligible individual, an 
eligible individual with an eligible spouse, and for an essential 
person--$750, $1,125, and $376, respectively--from yearly, unrounded 
Federal SSI payment amounts of $9,007.46, $13,509.70, and $4,514.06. 
For 2019, these yearly unrounded amounts respectively increase by 2.8 
percent to $9,259.67, $13,887.97, and $4,640.45. 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 2019, are 
$9,252, $13,884, and $4,632. Dividing the yearly amounts by 12 gives 
the respective monthly amounts for 2019--$771, $1,157, and $386. 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

[[Page 53704]]

[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 2019 under 
this provision is 75 percent of $771, or $578.25.

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 payments. The maximum amount of such income that we may exclude in 
2018 is $1,820 per month, but not more than $7,350 in all of 2018. 
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 2019, 
we increase the unrounded amount for 2018 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 2018 is $1,822.44. We increase this amount by 2.8 percent to 
$1,873.47, which we then round to $1,870. Similarly, we increase the 
unrounded yearly amount for 2018, $7,346.23, by 2.8 percent to 
$7,551.92 and round this to $7,550. Therefore, the maximum amount of 
the income exclusion applicable to a student in 2019 is $1,870 per 
month but not more than $7,550 in all of 2019.

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 2018, the fee is limited to the lesser of: (1) 
10 percent of the monthly benefit involved; or (2) $42 each month ($80 
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 2.8 percent to $43 and $82 for 2019.

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 2018 by increasing 
the unrounded limit for December 2017, $93.30, by 2.8 percent, which is 
$95.91. We then round $95.91 to the next lower multiple of $1. The 
dollar limit effective for December 2018 is, therefore, $95.

National Average Wage Index for 2017

Computation

    We determined the national average wage index for calendar year 
2017 based on the 2016 national average wage index of $48,642.15, 
published in the Federal Register on December 15, 2017 (82 FR 59937), 
and the percentage increase in average wages from 2016 to 2017, 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 $46,640.94 for 2016 and $48,251.57 for 2017. To 
determine the national average wage index for 2017 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 2016 national average wage index of $48,642.15 by the percentage 
increase in average wages from 2016 to 2017 (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 2016 ($48,642.15) 
by the ratio of the average wage for 2017 ($48,251.57) to that for 2016 
($46,640.94) produces the 2017 index, $50,321.89. The national average 
wage index for calendar year 2017 is about 3.45 percent higher than the 
2016 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 $132,900 for 
remuneration paid in 2019 and self-employment income earned in taxable 
years beginning in 2019. 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 2019 is the larger of: (1) The 1994 base of $60,600 multiplied by 
the ratio of the national average wage index for 2017 to that for 1992; 
or (2) the current base ($128,400). 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 2017 ($50,321.89 as 
determined above) to that for 1992 ($22,935.42) produces $132,960.57. 
We round this amount to $132,900. Because $132,900 exceeds the current 
base amount of $128,400, the OASDI contribution and benefit base is 
$132,900 for 2019.

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.

[[Page 53705]]

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 
2019, the lower monthly exempt amount for 2019 is the larger of: (1) 
The 1994 monthly exempt amount multiplied by the ratio of the national 
average wage index for 2017 to that for 1992; or (2) the 2018 monthly 
exempt amount ($1,420). 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 
2019, the higher monthly exempt amount for 2019 is the larger of: (1) 
The 2002 monthly exempt amount multiplied by the ratio of the national 
average wage index for 2017 to that for 2000; or (2) the 2018 monthly 
exempt amount ($3,780). 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 2017 
($50,321.89) to that for 1992 ($22,935.42) produces $1,470.03. We round 
this to $1,470. Because $1,470 exceeds the current exempt amount of 
$1,420, the lower retirement earnings test monthly exempt amount is 
$1,470 for 2019. The lower annual exempt amount is $17,640 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 2017 
($50,321.89) to that for 2000 ($32,154.82) produces $3,912.47. We round 
this to $3,910. Because $3,910 exceeds the current exempt amount of 
$3,780, the higher retirement earnings test monthly exempt amount is 
$3,910 for 2019. The higher annual exempt amount is $46,920 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 2019, we multiply each of the 1979 
bend-point amounts by the ratio of the national average wage index for 
2017 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 2017 ($50,321.89) to that 
for 1977 ($9,779.44) produces the amounts of $926.22 and $5,583.07. We 
round these to $926 and $5,583. Therefore, the portions of the AIME to 
be used in 2019 are the first $926, the amount between $926 and $5,583, 
and the amount over $5,583.
    Therefore, for individuals who first become eligible for old-age 
insurance benefits or disability insurance benefits in 2019, or who die 
in 2019 before becoming eligible for benefits, their PIA will be the 
sum of:
    (a) 90 percent of the first $926 of their AIME, plus
    (b) 32 percent of their AIME over $926 and through $5,583, plus
    (c) 15 percent of their AIME over $5,583.
    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 2019, we multiply each of the 1979 
bend-point amounts by the ratio of the national average wage index for 
2017 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 2017 ($50,321.89) to that for 1977 
($9,779.44)

[[Page 53706]]

produces the amounts of $1,183.51, $1,708.37, and $2,228.08. We round 
these amounts to $1,184, $1,708, and $2,228. Therefore, the portions of 
the PIAs to be used in 2019 are the first $1,184, the amount between 
$1,184 and $1,708, the amount between $1,708 and $2,228, and the amount 
over $2,228.
    Thus, for the family of a worker who becomes age 62 or dies in 2019 
before age 62, we will compute the total benefits payable to them so 
that it does not exceed:
    (a) 150 percent of the first $1,184 of the worker's PIA, plus
    (b) 272 percent of the worker's PIA over $1,184 through $1,708, 
plus
    (c) 134 percent of the worker's PIA over $1,708 through $2,228, 
plus
    (d) 175 percent of the worker's PIA over $2,228.
    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 2019 is $1,360. 
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 
2019 is the larger of: (1) The 1978 amount of $250 multiplied by the 
ratio of the national average wage index for 2017 to that for 1976; or 
(2) the current amount of $1,320. 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 2017 ($50,321.89) to that for 
1976 ($9,226.48) produces $1,363.52. We then round this amount to 
$1,360. Because $1,360 exceeds the current amount of $1,320, the 
quarter of coverage amount is $1,360 for 2019.

Old-Law Contribution and Benefit Base

General

    The old-law contribution and benefit base for 2019 is $98,700. 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 2017 to that for 1992; or (2) the current old-
law base ($95,400). 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 2017 
($50,321.89) to that for 1992 ($22,935.42) produces $98,733.10. We 
round this amount to $98,700. Because $98,700 exceeds the current 
amount of $95,400, the old-law contribution and benefit base is $98,700 
for 2019.

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 2019 is the larger of: (1) The amount for 1994 multiplied 
by the ratio of the national average wage index for 2017 to that for 
1992; or (2) the amount for 2018. The monthly SGA amount for non-blind 
disabled individuals for 2019 is the larger of: (1) The amount for 2000 
multiplied by the ratio of the national average wage index for 2017 to 
that for 1998; or (2) the amount for 2018. 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 
2017 ($50,321.89) to that for 1992 ($22,935.42) produces $2,040.48. We 
then round this amount to $2,040. Because $2,040 exceeds the current 
amount of $1,970, the monthly SGA amount for statutorily blind 
individuals is $2,040 for 2019.

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 2017 
($50,321.89) to that for 1998 ($28,861.44) produces $1,220.50. We then 
round this amount to $1,220. Because $1,220 exceeds the current amount 
of $1,180, the monthly SGA amount for non-blind disabled individuals is 
$1,220 for 2019.

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

[[Page 53707]]

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 2019, any month in which earnings exceed $880 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 2019, 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 2017 to that for 1999; or (2) the 
amount for 2018. 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 2017 ($50,321.89) to that for 
1999 ($30,469.84) produces $875.31. We then round this amount to $880. 
Because $880 exceeds the current amount of $850, the monthly earnings 
threshold is $880 for 2019.

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 2019, 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 
2019 is equal to the 1995 amount of $1,000 multiplied by the ratio of 
the national average wage index for 2017 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 2017 ($50,321.89) 
to that for 1993 ($23,132.67) produces $2,175.36. We then round this 
amount to $2,100. Therefore, the domestic employee coverage threshold 
amount is $2,100 for 2019.

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 2019, 
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 2019 is equal to the 1999 amount of $1,000 
multiplied by the ratio of the national average wage index for 2017 to 
that for 1997. If the amount we determine is not a multiple of $100, 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 2017 ($50,321.89) to that 
for 1997 ($27,426.00) produces $1,834.82. We then round this amount to 
$1,800. Therefore, the election official and election worker coverage 
threshold amount is $1,800 for 2019.

(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. 2018-23193 Filed 10-23-18; 8:45 am]
 BILLING CODE 4191-02-P

53702 Federal Register / Vol. 83, No. 206 / Wednesday, October 24, 2018 / Notices Disbursement Center, 14925 Kingsport the following items will increase for (7) The monthly amount deemed to Road, Fort Worth, TX 76155. 2019: constitute substantial gainful activity FOR FURTHER INFORMATION CONTACT: A. (1) The maximum Federal (SGA) for statutorily blind persons in Escobar, Office of Disaster Assistance, Supplemental Security Income (SSI) 2019 will be $2,040. The corresponding U.S. Small Business Administration, monthly payment amounts for 2019 amount for non-blind disabled persons 409 3rd Street SW, Suite 6050, under title XVI of the Act will be $771 will be $1,220; Washington, DC 20416, (202) 205–6734. for an eligible individual, $1,157 for an (8) The earnings threshold SUPPLEMENTARY INFORMATION: The notice eligible individual with an eligible establishing a month as a part of a trial of the President’s major disaster spouse, and $386 for an essential work period will be $880 for 2019; and declaration for the State of GEORGIA, person; (9) Coverage thresholds for 2019 will dated 10/14/2018, is hereby amended to (2) The special benefit amount under be $2,100 for domestic workers and include the following areas as adversely title VIII of the Act for certain World $1,800 for election officials and election affected by the disaster: War II veterans will be $578.25 for 2019; workers. (3) The student earned income According to section 215(i)(2)(D) of Primary Counties (Physical Damage and the Act, we must publish the benefit exclusion under title XVI of the Act will Economic Injury Loans): Crisp, Grady, increase percentage and the revised be $1,870 per month in 2019, but not Lee, Mitchell, Terrell, Thomas, Worth. table of ‘‘special minimum’’ benefits more than $7,550 for all of 2019; Contiguous Counties (Economic Injury within 45 days after the close of the (4) The dollar fee limit for services Loans Only): third calendar quarter of 2018. We must performed as a representative payee will Georgia: Brooks, Colquitt, Dooly, also publish the following by November be $43 per month ($82 per month in the Randolph, Sumter, Tift, Turner, 1: The national average wage index for case of a beneficiary who is disabled Webster, Wilcox. 2017 (215(a)(1)(D)), the OASDI fund and has an alcoholism or drug addiction Florida: Jefferson, Leon. ratio for 2018 (section 215(i)(2)(C)(ii)), condition that leaves him or her All other information in the original incapable of managing benefits) in 2019; the OASDI contribution and benefit base declaration remains unchanged. and for 2019 (section 230(a)), the earnings (Catalog of Federal Domestic Assistance (5) The dollar limit on the required to be credited with a quarter of Number 59008) administrative-cost fee assessment coverage in 2019 (section 213(d)(2)), the charged to an appointed representative monthly exempt amounts under the James Rivera, such as an attorney, agent, or other Social Security retirement earnings test Associate Administrator for Disaster for 2019 (section 203(f)(8)(A)), the Assistance. person who represents claimants will be $95 beginning in December 2018. formula for computing a PIA for workers [FR Doc. 2018–23236 Filed 10–23–18; 8:45 am] who first become eligible for benefits or The national average wage index for BILLING CODE 8025–01–P 2017 is $50,321.89. This index affects die in 2019 (section 215(a)(1)(D)), and the following amounts: the formula for computing the (1) The Old-Age, Survivors, and maximum benefits payable to the family SOCIAL SECURITY ADMINISTRATION Disability Insurance (OASDI) of a worker who first becomes eligible contribution and benefit base will be for old-age benefits or dies in 2019 [Docket No. SSA–2018–0049] $132,900 for remuneration paid in 2019 (section 203(a)(2)(C)). Cost-of-Living Increase and Other and self-employment income earned in Cost-of-Living Increases Determinations for 2019 taxable years beginning in 2019; (2) The monthly exempt amounts General AGENCY: Social Security Administration. under the OASDI retirement earnings The cost-of-living increase is 2.8 ACTION: Notice. test for taxable years ending in calendar percent for monthly benefits under title year 2019 will be $1,470 for II and for monthly payments under title SUMMARY: Under title II of the Social beneficiaries who will attain their XVI of the Act. Under title II, OASDI Security Act (Act), there will be a 2.8 Normal Retirement Age (NRA) (defined monthly benefits will increase by 2.8 percent cost-of-living increase in Social in the Retirement Earnings Test Exempt percent for individuals eligible for Security benefits effective December Amounts section below) after 2019 and December 2018 benefits, payable in 2018. In addition, the national average $3,910 for those who attain NRA in January 2019. We base this increase on wage index for 2017 is $50,321.89. The 2019; the authority contained in section 215(i) cost-of-living increase and national (3) The dollar amounts (‘‘bend of the Act. average wage index affect other program points’’) used in the primary insurance Pursuant to section 1617 of the Act, parameters as described below. amount (PIA) formula for workers who Federal SSI benefit rates will also FOR FURTHER INFORMATION CONTACT: become eligible for benefits, or who die increase by 2.8 percent effective for Susan C. Kunkel, Office of the Chief before becoming eligible, in 2019 will be payments made for January 2019 but Actuary, Social Security $926 and $5,583; paid on December 31, 2018. Administration, 6401 Security (4) The bend points used in the Boulevard, Baltimore, MD 21235, (410) formula for computing maximum family Computation 965–3000. Information relating to this benefits for workers who become Computation of the cost-of-living announcement is available on our eligible for retirement benefits, or who increase is based on an increase in a internet site at www.socialsecurity.gov/ die before becoming eligible, in 2019 Consumer Price Index produced by the amozie on DSK3GDR082PROD with NOTICES1 oact/cola/index.html. For information will be $1,184, $1,708, and $2,228; Bureau of Labor Statistics. At the time on eligibility or claiming benefits, call (5) The taxable earnings a person the Act was amended to provide cost-of- 1–800–772–1213 (TTY 1–800–325– must have to be credited with a quarter living increases, only one Consumer 0778), or visit our internet site at of coverage in 2019 will be $1,360; Price Index existed, namely the https://www.socialsecurity.gov online. (6) The ‘‘old-law’’ contribution and Consumer Price Index for Urban Wage SUPPLEMENTARY INFORMATION: Because of benefit base under title II of the Act will Earners and Clerical Workers. Although the 2.8 percent cost-of-living increase, be $98,700 for 2019; the Bureau of Labor Statistics has since VerDate Sep<11>2014 17:43 Oct 23, 2018 Jkt 247001 PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 E:\FR\FM\24OCN1.SGM 24OCN1

Federal Register / Vol. 83, No. 206 / Wednesday, October 24, 2018 / Notices 53703 developed other consumer price 289.0 percent. Because the 289.0 family benefit amounts after the 2.8 indices, we follow precedent by percent OASDI fund ratio exceeds 20.0 percent benefit increase. continuing to use the Consumer Price percent, the benefit increase for Index for Urban Wage Earners and December 2018 is not limited to the SPECIAL MINIMUM PIAS AND MAXIMUM Clerical Workers. We refer to this index increase in the AWI. FAMILY BENEFITS PAYABLE FOR DE- in the following paragraphs as the CPI. CEMBER 2018 Section 215(i)(1)(B) of the Act defines Program Amounts That Change Based a ‘‘computation quarter’’ to be a third on the Cost-of-Living Increase Maximum The following program amounts Number of years of calendar quarter in which the average coverage PIA family CPI exceeded the average CPI in the change based on the cost-of-living benefit previous computation quarter. The last increase: (1) Title II benefits; (2) title XVI payments; (3) title VIII benefits; (4) 11 .............................. $41.90 $63.80 cost-of-living increase, effective for 12 .............................. 85.60 129.60 those eligible to receive title II benefits the student earned income exclusion; 13 .............................. 129.40 195.40 for December 2017, was based on the (5) the fee for services performed by a 14 .............................. 173.00 260.70 CPI increase from the third quarter of representative payee; and (6) the 15 .............................. 216.30 325.90 2016 to the third quarter of 2017. appointed representative fee 16 .............................. 260.30 391.80 Therefore, the last computation quarter assessment. 17 .............................. 304.00 457.80 is the third quarter of 2017. The law 18 .............................. 347.70 523.00 Title II Benefit Amounts 19 .............................. 391.40 588.70 states that a cost-of-living increase for In accordance with section 215(i) of 20 .............................. 435.30 653.80 benefits is determined based on the 21 .............................. 479.00 720.00 percentage increase, if any, in the CPI the Act, for workers and family 22 .............................. 522.40 785.30 from the last computation quarter to the members for whom eligibility for 23 .............................. 566.90 852.00 third quarter of the current year. benefits (that is, the worker’s attainment 24 .............................. 610.50 916.90 Therefore, we compute the increase in of age 62, or disability or death before 25 .............................. 653.80 982.00 the CPI from the third quarter of 2017 age 62) occurred before 2019, benefits 26 .............................. 698.30 1,048.60 to the third quarter of 2018. will increase by 2.8 percent beginning 27 .............................. 741.40 1,114.00 Section 215(i)(1) of the Act states that with benefits for December 2018, which 28 .............................. 785.10 1,179.30 the CPI for a cost-of-living computation are payable in January 2019. For those 29 .............................. 828.90 1,245.40 first eligible after 2018, the 2.8 percent 30 .............................. 872.50 1,310.20 quarter is the arithmetic mean of this index for the 3 months in that quarter. increase will not apply. In accordance with 20 CFR 404.275, we For eligibility after 1978, we Title XVI Payment Amounts round the arithmetic mean, if necessary, determine benefits using a formula In accordance with section 1617 of to the nearest 0.001. The CPI for each provided by the Social Security the Act, the Federal benefit rates used month in the quarter ending September Amendments of 1977 (Pub. L. 95–216), in computing Federal SSI payments for 30, 2017, the last computation quarter, as described later in this notice. the aged, blind, and disabled will is: For July 2017, 238.617; for August For eligibility before 1979, we increase by 2.8 percent effective January 2017, 239.448; and for September 2017, determine benefits by using a benefit 2019. For 2018, we derived the monthly 240.939. The arithmetic mean for the table. The table is available on the payment amounts for an eligible calendar quarter ending September 30, internet at https:// individual, an eligible individual with 2017 is 239.668. The CPI for each month www.socialsecurity.gov/oact/ProgData/ an eligible spouse, and for an essential in the quarter ending September 30, tableForm.html or by writing to: Social person—$750, $1,125, and $376, 2018, is: For July 2018, 246.155; for Security Administration, Office of respectively—from yearly, unrounded August 2018, 246.336; and for Public Inquiries, Windsor Park Federal SSI payment amounts of September 2018, 246.565. The Building, 6401 Security Boulevard, $9,007.46, $13,509.70, and $4,514.06. arithmetic mean for the calendar quarter Baltimore, MD 21235. For 2019, these yearly unrounded ending September 30, 2018 is 246.352. Section 215(i)(2)(D) of the Act amounts respectively increase by 2.8 The CPI for the calendar quarter ending requires that, when we determine an percent to $9,259.67, $13,887.97, and September 30, 2018, exceeds that for the increase in Social Security benefits, we $4,640.45. We must round each of these calendar quarter ending September 30, will publish in the Federal Register a resulting amounts, when not a multiple 2017 by 2.8 percent (rounded to the revision of the range of the PIAs and of $12, to the next lower multiple of nearest 0.1). Therefore, beginning maximum family benefits based on the $12. Therefore, the annual amounts, December 2018 a cost-of-living benefit dollar amount and other provisions effective for 2019, are $9,252, $13,884, increase of 2.8 percent is effective for described in section 215(a)(1)(C)(i). We and $4,632. Dividing the yearly amounts benefits under title II of the Act. refer to these benefits as ‘‘special by 12 gives the respective monthly Section 215(i) also specifies that a minimum’’ benefits. These benefits are amounts for 2019—$771, $1,157, and benefit increase under title II, effective payable to certain individuals with long $386. For an eligible individual with an for December of any year, will be periods of low earnings. To qualify for eligible spouse, we equally divide the limited to the increase in the national these benefits, an individual must have amount payable between the two average wage index for the prior year if at least 11 years of coverage. To earn a spouses. the OASDI fund ratio for that year is year of coverage for purposes of the below 20.0 percent. The OASDI fund special minimum benefit, a person must Title VIII Benefit Amount ratio for a year is the ratio of the earn at least a certain proportion of the Title VIII of the Act provides for amozie on DSK3GDR082PROD with NOTICES1 combined assets of the OASDI Trust old-law contribution and benefit base special benefits to certain World War II Funds at the beginning of that year to (described later in this notice). For years veterans who reside outside the United the combined expenditures of these before 1991, the proportion is 25 States. Section 805 of the Act provides funds during that year. For 2018, the percent; for years after 1990, it is 15 that ‘‘[t]he benefit under this title OASDI fund ratio is assets of $2,891,789 percent. In accordance with section payable to a qualified individual for any million divided by estimated 215(a)(1)(C)(i), the table below shows month shall be in an amount equal to expenditures of $1,000,708 million, or the revised range of PIAs and maximum 75 percent of the Federal benefit rate VerDate Sep<11>2014 17:43 Oct 23, 2018 Jkt 247001 PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 E:\FR\FM\24OCN1.SGM 24OCN1

53704 Federal Register / Vol. 83, No. 206 / Wednesday, October 24, 2018 / Notices [the maximum amount for an eligible agent, or other person who represents determined under section 230 of the Act individual] under title XVI for the claimants, we must impose on the as in effect before the 1977 month, reduced by the amount of the representative an assessment to cover amendments); (7) the substantial gainful qualified individual’s benefit income for administrative costs. The assessment is activity (SGA) amount applicable to the month.’’ Therefore, the monthly no more than 6.3 percent of the statutorily blind individuals; and (8) the benefit for 2019 under this provision is representative’s authorized fee or, if coverage threshold for election officials 75 percent of $771, or $578.25. 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 Revenue Code, the domestic employee A blind or disabled child who is a 2018 by increasing the unrounded limit coverage threshold is based on changes student regularly attending school, for December 2017, $93.30, by 2.8 in the national average wage index. college, university, or a course of percent, which is $95.91. We then Two amounts also increase under vocational or technical training can round $95.91 to the next lower multiple regulatory requirements—the SGA have limited earnings that do not count of $1. The dollar limit effective for amount applicable to non-blind against his or her SSI payments. The December 2018 is, therefore, $95. disabled persons, and the monthly maximum amount of such income that earnings threshold that establishes a we may exclude in 2018 is $1,820 per National Average Wage Index for 2017 month as part of a trial work period for month, but not more than $7,350 in all Computation disabled beneficiaries. of 2018. These amounts increase based on a formula set forth in regulation 20 We determined the national average OASDI Contribution and Benefit Base CFR 416.1112. wage index for calendar year 2017 based General To compute each of the monthly and on the 2016 national average wage index yearly maximum amounts for 2019, we of $48,642.15, published in the Federal The OASDI contribution and benefit increase the unrounded amount for Register on December 15, 2017 (82 FR base is $132,900 for remuneration paid 2018 by the latest cost-of-living 59937), and the percentage increase in in 2019 and self-employment income increase. If the amount so calculated is average wages from 2016 to 2017, as earned in taxable years beginning in not a multiple of $10, we round it to the measured by annual wage data. We 2019. The OASDI contribution and nearest multiple of $10. The unrounded tabulate the annual wage data, including benefit base serves as the maximum monthly amount for 2018 is $1,822.44. contributions to deferred compensation annual earnings on which OASDI taxes We increase this amount by 2.8 percent plans, as required by section 209(k) of are paid. It is also the maximum annual to $1,873.47, which we then round to the Act. The average amounts of wages earnings used in determining a person’s $1,870. Similarly, we increase the calculated from these data were OASDI benefits. unrounded yearly amount for 2018, $46,640.94 for 2016 and $48,251.57 for Computation $7,346.23, by 2.8 percent to $7,551.92 2017. To determine the national average wage index for 2017 at a level consistent Section 230(b) of the Act provides the and round this to $7,550. Therefore, the with the national average wage indexing formula used to determine the OASDI maximum amount of the income series for 1951 through 1977 (published contribution and benefit base. Under the exclusion applicable to a student in December 29, 1978, at 43 FR 61016), we formula, the base for 2019 is the larger 2019 is $1,870 per month but not more multiply the 2016 national average wage of: (1) The 1994 base of $60,600 than $7,550 in all of 2019. index of $48,642.15 by the percentage multiplied by the ratio of the national Fee for Services Performed as a increase in average wages from 2016 to average wage index for 2017 to that for Representative Payee 2017 (based on SSA-tabulated wage 1992; or (2) the current base ($128,400). Sections 205(j)(4)(A)(i) and data) as follows. We round the result to If the resulting amount is not a multiple 1631(a)(2)(D)(i) of the Act permit a the nearest cent. of $300, we round it to the nearest qualified organization to collect a multiple of $300. National Average Wage Index Amount monthly fee from a beneficiary for OASDI Contribution and Benefit Base expenses incurred in providing services Multiplying the national average wage Amount as the beneficiary’s representative index for 2016 ($48,642.15) by the ratio of the average wage for 2017 Multiplying the 1994 OASDI payee. In 2018, the fee is limited to the ($48,251.57) to that for 2016 contribution and benefit base ($60,600) lesser of: (1) 10 percent of the monthly ($46,640.94) produces the 2017 index, by the ratio of the national average wage benefit involved; or (2) $42 each month $50,321.89. The national average wage index for 2017 ($50,321.89 as ($80 each month when the beneficiary index for calendar year 2017 is about determined above) to that for 1992 is entitled to disability benefits and has 3.45 percent higher than the 2016 index. ($22,935.42) produces $132,960.57. We an alcoholism or drug addiction round this amount to $132,900. Because condition that makes the individual Program Amounts That Change Based $132,900 exceeds the current base incapable of managing such benefits). on the National Average Wage Index amount of $128,400, the OASDI The dollar fee limits are subject to Under the Act, the following amounts contribution and benefit base is increase by the cost-of-living increase, change with annual changes in the $132,900 for 2019. with the resulting amounts rounded to the nearest whole dollar amount. national average wage index: (1) The Retirement Earnings Test Exempt Therefore, we increase the current OASDI contribution and benefit base; Amounts amounts by 2.8 percent to $43 and $82 (2) the exempt amounts under the amozie on DSK3GDR082PROD with NOTICES1 retirement earnings test; (3) the dollar General for 2019. amounts, or bend points, in the PIA We withhold Social Security benefits Appointed Representative Fee formula; (4) the bend points in the when a beneficiary under the NRA has Assessment maximum family benefit formula; (5) earnings over the applicable retirement Under sections 206(d) and 1631(d) of the earnings required to credit a worker earnings test exempt amount. The NRA the Act, whenever we pay a fee to a with a quarter of coverage; (6) the old- is the age when retirement benefits representative such as an attorney, law contribution and benefit base (as (before rounding) are equal to the PIA. VerDate Sep<11>2014 17:43 Oct 23, 2018 Jkt 247001 PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 E:\FR\FM\24OCN1.SGM 24OCN1

Federal Register / Vol. 83, No. 206 / Wednesday, October 24, 2018 / Notices 53705 The NRA is age 66 for those born in $3,780, the higher retirement earnings benefits or disability insurance benefits 1943–54, and it gradually increases to test monthly exempt amount is $3,910 in 2019, or who die in 2019 before age 67 for those born in 1960 or later. for 2019. The higher annual exempt becoming eligible for benefits, their PIA A higher exempt amount applies in the amount is $46,920 under the retirement will be the sum of: year in which a person attains NRA, but earnings test. (a) 90 percent of the first $926 of their only for earnings in months before such AIME, plus Primary Insurance Amount Formula attainment. A lower exempt amount (b) 32 percent of their AIME over $926 applies at all other ages below NRA. General and through $5,583, plus Section 203(f)(8)(B) of the Act provides The Social Security Amendments of (c) 15 percent of their AIME over formulas for determining the monthly 1977 provided a method for computing $5,583. exempt amounts. The annual exempt We round this amount to the next benefits that generally applies when a amounts are exactly 12 times the lower multiple of $0.10 if it is not worker first becomes eligible for benefits monthly amounts. already a multiple of $0.10. This after 1978. This method uses the For beneficiaries who attain NRA in formula and the rounding adjustment worker’s average indexed monthly the year, we withhold $1 in benefits for are stated in section 215(a) of the Act. earnings (AIME) to compute the PIA. every $3 of earnings over the annual We adjust the formula each year to Maximum Benefits Payable to a Family exempt amount for months before NRA. reflect changes in general wage levels, For all other beneficiaries under NRA, General as measured by the national average we withhold $1 in benefits for every $2 The 1977 amendments continued the wage index. of earnings over the annual exempt policy of limiting the total monthly We also adjust, or index, a worker’s amount. benefits that a worker’s family may earnings to reflect the change in the 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 2019, indexing ensures that a worker’s future relationship between maximum family the lower monthly exempt amount for benefit level will reflect the general rise benefits and PIAs but changed the 2019 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 2017 to that for 1992; or (2) the the required number of years of Amendments of 1980 (Pub. L. 96–265) 2018 monthly exempt amount ($1,420). earnings. We then select the number of established a formula for computing the If the resulting amount is not a multiple years with the highest indexed earnings, maximum benefits payable to the family of $10, we round it to the nearest add the indexed earnings for those of a disabled worker. This formula multiple of $10. years, and divide the total amount by applies to the family benefits of workers Under the formula that applies to the total number of months in those who first become entitled to disability beneficiaries attaining NRA in 2019, the years. We then round the resulting insurance benefits after June 30, 1980, higher monthly exempt amount for 2019 average amount down to the next lower and who first become eligible for these is the larger of: (1) The 2002 monthly dollar amount. The result is the AIME. benefits after 1978. For disabled workers exempt amount multiplied by the ratio initially entitled to disability benefits Computing the PIA of the national average wage index for before July 1980 or whose disability 2017 to that for 2000; or (2) the 2018 The PIA is the sum of three separate began before 1979, we compute the monthly exempt amount ($3,780). If the percentages of portions of the AIME. In family maximum payable the same as resulting amount is not a multiple of 1979 (the first year the formula was in the old-age and survivor family $10, we round it to the nearest multiple effect), these portions were the first maximum. of $10. $180, the amount between $180 and $1,085, and the amount over $1,085. We Computing the Old-Age and Survivor Lower Exempt Amount call the dollar amounts in the formula Family Maximum Multiplying the 1994 retirement governing the portions of the AIME the The formula used to compute the earnings test monthly exempt amount of ‘‘bend points’’ of the formula. Therefore, family maximum is similar to that used $670 by the ratio of the national average the bend points for 1979 were $180 and to compute the PIA. It involves wage index for 2017 ($50,321.89) to that $1,085. computing the sum of four separate for 1992 ($22,935.42) produces To obtain the bend points for 2019, percentages of portions of the worker’s $1,470.03. We round this to $1,470. we multiply each of the 1979 bend- PIA. In 1979, these portions were the Because $1,470 exceeds the current point amounts by the ratio of the first $230, the amount between $230 exempt amount of $1,420, the lower national average wage index for 2017 to and $332, the amount between $332 and retirement earnings test monthly exempt that average for 1977. We then round $433, and the amount over $433. We amount is $1,470 for 2019. The lower these results to the nearest dollar. refer to such dollar amounts in the annual exempt amount is $17,640 under Multiplying the 1979 amounts of $180 formula as the ‘‘bend points’’ of the the retirement earnings test. and $1,085 by the ratio of the national family-maximum formula. average wage index for 2017 To obtain the bend points for 2019, Higher Exempt Amount ($50,321.89) to that for 1977 ($9,779.44) we multiply each of the 1979 bend- Multiplying the 2002 retirement produces the amounts of $926.22 and point amounts by the ratio of the amozie on DSK3GDR082PROD with NOTICES1 earnings test monthly exempt amount of $5,583.07. We round these to $926 and national average wage index for 2017 to $2,500 by the ratio of the national $5,583. Therefore, the portions of the that average for 1977. Then we round average wage index for 2017 AIME to be used in 2019 are the first this amount to the nearest dollar. ($50,321.89) to that for 2000 $926, the amount between $926 and Multiplying the amounts of $230, $332, ($32,154.82) produces $3,912.47. We $5,583, and the amount over $5,583. and $433 by the ratio of the national round this to $3,910. Because $3,910 Therefore, for individuals who first average wage index for 2017 exceeds the current exempt amount of become eligible for old-age insurance ($50,321.89) to that for 1977 ($9,779.44) VerDate Sep<11>2014 17:43 Oct 23, 2018 Jkt 247001 PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 E:\FR\FM\24OCN1.SGM 24OCN1

53706 Federal Register / Vol. 83, No. 206 / Wednesday, October 24, 2018 / Notices produces the amounts of $1,183.51, Quarter of Coverage Amount Substantial Gainful Activity Amounts $1,708.37, and $2,228.08. We round Multiplying the 1978 quarter of General these amounts to $1,184, $1,708, and coverage amount ($250) by the ratio of A finding of disability under titles II $2,228. Therefore, the portions of the the national average wage index for and XVI of the Act requires that a PIAs to be used in 2019 are the first 2017 ($50,321.89) to that for 1976 person, except for a title XVI disabled $1,184, the amount between $1,184 and ($9,226.48) produces $1,363.52. We child, be unable to engage in SGA. A $1,708, the amount between $1,708 and then round this amount to $1,360. person who is earning more than a $2,228, and the amount over $2,228. Because $1,360 exceeds the current certain monthly amount is ordinarily Thus, for the family of a worker who amount of $1,320, the quarter of considered to be engaging in SGA. The becomes age 62 or dies in 2019 before coverage amount is $1,360 for 2019. monthly earnings considered as SGA age 62, we will compute the total Old-Law Contribution and Benefit Base depends on the nature of a person’s benefits payable to them so that it does disability. Section 223(d)(4)(A) of the not exceed: General Act specifies the SGA amount for (a) 150 percent of the first $1,184 of statutorily blind individuals under title The old-law contribution and benefit the worker’s PIA, plus II while our regulations (20 CFR base for 2019 is $98,700. This base (b) 272 percent of the worker’s PIA would have been effective under the Act 404.1574 and 416.974) specify the SGA over $1,184 through $1,708, plus without the enactment of the 1977 amount for non-blind individuals. (c) 134 percent of the worker’s PIA amendments. Computation over $1,708 through $2,228, plus The old-law contribution and benefit The monthly SGA amount for (d) 175 percent of the worker’s PIA base is used by: statutorily blind individuals under title over $2,228. (a) The Railroad Retirement program II for 2019 is the larger of: (1) The We then round this amount to the to determine certain tax liabilities and amount for 1994 multiplied by the ratio next lower multiple of $0.10 if it is not tier II benefits payable under that of the national average wage index for already a multiple of $0.10. This program to supplement the tier I 2017 to that for 1992; or (2) the amount formula and the rounding adjustment payments that correspond to basic for 2018. The monthly SGA amount for are stated in section 203(a) of the Act. Social Security benefits, non-blind disabled individuals for 2019 (b) the Pension Benefit Guaranty is the larger of: (1) The amount for 2000 Quarter of Coverage Amount Corporation to determine the maximum multiplied by the ratio of the national General amount of pension guaranteed under the average wage index for 2017 to that for Employee Retirement Income Security 1998; or (2) the amount for 2018. In The earnings required for a quarter of Act (section 230(d) of the Act), either case, if the resulting amount is coverage in 2019 is $1,360. A quarter of (c) Social Security to determine a year not a multiple of $10, we round it to the coverage is the basic unit for of coverage in computing the special nearest multiple of $10. determining if a worker is insured under minimum benefit, as described earlier, the Social Security program. For years and SGA Amount for Statutorily Blind before 1978, we generally credited an Individuals (d) Social Security to determine a year individual with a quarter of coverage for of coverage (acquired whenever Multiplying the 1994 monthly SGA each quarter in which wages of $50 or earnings equal or exceed 25 percent of amount for statutorily blind individuals more were paid, or with 4 quarters of the old-law base for this purpose only) ($930) by the ratio of the national coverage for every taxable year in which in computing benefits for persons who average wage index for 2017 $400 or more of self-employment are also eligible to receive pensions ($50,321.89) to that for 1992 income was earned. Beginning in 1978, based on employment not covered ($22,935.42) produces $2,040.48. We employers generally report wages yearly under section 210 of the Act. then round this amount to $2,040. instead of quarterly. With the change to Because $2,040 exceeds the current yearly reporting, section 352(b) of the Computation amount of $1,970, the monthly SGA Social Security Amendments of 1977 The old-law contribution and benefit amount for statutorily blind individuals amended section 213(d) of the Act to base is the larger of: (1) The 1994 old- is $2,040 for 2019. provide that a quarter of coverage would law base ($45,000) multiplied by the SGA Amount for Non-Blind Disabled be credited for each $250 of an ratio of the national average wage index Individuals individual’s total wages and self- for 2017 to that for 1992; or (2) the employment income for calendar year current old-law base ($95,400). If the Multiplying the 2000 monthly SGA 1978, up to a maximum of 4 quarters of resulting amount is not a multiple of amount for non-blind individuals ($700) coverage for the year. The amendment $300, we round it to the nearest by the ratio of the national average wage also provided a formula for years after multiple of $300. index for 2017 ($50,321.89) to that for 1978. 1998 ($28,861.44) produces $1,220.50. Old-Law Contribution and Benefit Base We then round this amount to $1,220. Computation Amount Because $1,220 exceeds the current Under the prescribed formula, the Multiplying the 1994 old-law amount of $1,180, the monthly SGA quarter of coverage amount for 2019 is contribution and benefit base ($45,000) amount for non-blind disabled the larger of: (1) The 1978 amount of by the ratio of the national average wage individuals is $1,220 for 2019. amozie on DSK3GDR082PROD with NOTICES1 $250 multiplied by the ratio of the index for 2017 ($50,321.89) to that for Trial Work Period Earnings Threshold national average wage index for 2017 to 1992 ($22,935.42) produces $98,733.10. that for 1976; or (2) the current amount We round this amount to $98,700. General of $1,320. Section 213(d) provides that Because $98,700 exceeds the current During a trial work period of 9 if the resulting amount is not a multiple amount of $95,400, the old-law months in a rolling 60-month period, a of $10, we round it to the nearest contribution and benefit base is $98,700 beneficiary receiving Social Security multiple of $10. for 2019. disability benefits may test his or her VerDate Sep<11>2014 17:43 Oct 23, 2018 Jkt 247001 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 E:\FR\FM\24OCN1.SGM 24OCN1

Federal Register / Vol. 83, No. 206 / Wednesday, October 24, 2018 / Notices 53707 ability to work and still receive monthly Election Official and Election Worker (42 U.S.C. 10701, et seq.), SJI is benefit payments. To be considered a Coverage Threshold authorized to award grants, cooperative trial work period month, earnings must agreements, and contracts to state and General be over a certain level. In 2019, any local courts, nonprofit organizations, month in which earnings exceed $880 is The minimum amount an election and others for the purpose of improving considered a month of services for an official and election worker must earn the quality of justice in the state courts individual’s trial work period. so the earnings are covered under Social of the United States. Security or Medicare is the election The following Grant Guideline is Computation official and election worker coverage adopted by the State Justice Institute for The method used to determine the threshold. For 2019, this threshold is FY 2019. new amount is set forth in our $1,800. Section 218(c)(8)(B) of the Act Table of Contents regulations at 20 CFR 404.1592(b). provides the formula for increasing the Monthly earnings in 2019, used to threshold. I. The Mission of the State Justice Institute II. Eligibility for Award determine whether a month is part of a Computation III. Scope of the Program trial work period, is the larger of: (1) IV. Grant Applications The amount for 2001 ($530) multiplied Under the formula, the election V. Grant Application Review Procedures by the ratio of the national average wage official and election worker coverage VI. Compliance Requirements index for 2017 to that for 1999; or (2) the threshold for 2019 is equal to the 1999 VII. Financial Requirements amount for 2018. If the amount so amount of $1,000 multiplied by the ratio VIII. Grant Adjustments calculated is not a multiple of $10, we of the national average wage index for 2017 to that for 1997. If the amount we I. The Mission of the State Justice round it to the nearest multiple of $10. Institute determine is not a multiple of $100, we Trial Work Period Earnings Threshold round it to the nearest multiple of $100. SJI was established by State Justice Amount Institute Authorization Act of 1984 (42 Election Official and Election Worker U.S.C. 10701 et seq.) to improve the Multiplying the 2001 monthly Coverage Threshold Amount administration of justice in the state earnings threshold ($530) by the ratio of Multiplying the 1999 coverage courts of the United States. Incorporated the national average wage index for threshold amount ($1,000) by the ratio in the State of Virginia as a private, 2017 ($50,321.89) to that for 1999 of the national average wage index for nonprofit corporation, SJI is charged, by ($30,469.84) produces $875.31. We then 2017 ($50,321.89) to that for 1997 statute, with the responsibility to: round this amount to $880. Because ($27,426.00) produces $1,834.82. We • Direct a national program of $880 exceeds the current amount of then round this amount to $1,800. financial assistance designed to assure $850, the monthly earnings threshold is Therefore, the election official and that each citizen of the United States is $880 for 2019. election worker coverage threshold provided ready access to a fair and Domestic Employee Coverage amount is $1,800 for 2019. effective system of justice; Threshold (Catalog of Federal Domestic Assistance: • Foster coordination and Program Nos. 96.001 Social Security— cooperation with the federal judiciary; General Disability Insurance; 96.002 Social • Promote recognition of the The minimum amount a domestic Security—Retirement Insurance; 96.004 importance of the separation of powers worker must earn so that such earnings Social Security—Survivors Insurance; 96.006 doctrine to an independent judiciary; Supplemental Security Income) and are covered under Social Security or • Encourage education for judges and Medicare is the domestic employee Nancy A. Berryhill, support personnel of state court systems coverage threshold. For 2019, this Acting Commissioner of Social Security. through national and state threshold is $2,100. Section 3121(x) of [FR Doc. 2018–23193 Filed 10–23–18; 8:45 am] organizations. the Internal Revenue Code provides the BILLING CODE 4191–02–P To accomplish these broad objectives, formula for increasing the threshold. SJI is authorized to provide funding to Computation state courts, national organizations STATE JUSTICE INSTITUTE which support and are supported by Under the formula, the domestic state courts, national judicial education employee coverage threshold for 2019 is Grant Guideline organizations, and other organizations equal to the 1995 amount of $1,000 that can assist in improving the quality multiplied by the ratio of the national AGENCY: State Justice Institute. ACTION: Grant Guideline for FY 2019. of justice in the state courts. SJI is average wage index for 2017 to that for supervised by a Board of Directors 1993. If the resulting amount is not a SUMMARY: This Guideline sets forth the appointed by the President, with the multiple of $100, we round it to the next administrative, programmatic, and advice and consent of the Senate. The lower multiple of $100. financial requirements attendant to Board is statutorily composed of six Domestic Employee Coverage Threshold Fiscal Year 2019 State Justice Institute judges; a state court administrator; and Amount grants. four members of the public, no more DATES: October 24, 2018. than two of the same political party. Multiplying the 1995 domestic Through the award of grants, employee coverage threshold ($1,000) FOR FURTHER INFORMATION CONTACT: contracts, and cooperative agreements, amozie on DSK3GDR082PROD with NOTICES1 by the ratio of the national average wage Jonathan Mattiello, Executive Director, SJI is authorized to perform the index for 2017 ($50,321.89) to that for State Justice Institute, 11951 Freedom following activities: 1993 ($23,132.67) produces $2,175.36. Drive, Suite 1020, Reston, VA 20190, A. Support technical assistance, We then round this amount to $2,100. 571–313–8843, jonathan.mattiello@ demonstrations, special projects, Therefore, the domestic employee sji.gov. research and training to improve the coverage threshold amount is $2,100 for SUPPLEMENTARY INFORMATION: Pursuant administration of justice in the state 2019. to the State Justice Institute Act of 1984 courts; VerDate Sep<11>2014 17:43 Oct 23, 2018 Jkt 247001 PO 00000 Frm 00104 Fmt 4703 Sfmt 4703 E:\FR\FM\24OCN1.SGM 24OCN1


Document Created: 2018-10-24 00:25:37
Document Modified: 2018-10-24 00:25:37
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 https://www.socialsecurity.gov online.
FR Citation83 FR 53702 
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