In its recent press release, the agency announced that it will increase the monthly social security and Supplemental Security Income (SSI) benefits by 1.7 percent in 2013.
Accordingly, the said increase in Cost-of-living Adjustment (COLA) will start with benefits that more than 56 million social security beneficiaries will receive in January next year, while the increased payments to more than 8 million SSI beneficiaries will start on December 31 of this year.
Moreover, the agency explained in its press release that some other changes that take will effect every January of each year are based on the increase in average wages.
Consequently, the increase would definitely mean that the maximum amount of earnings subject to the Social Security tax or the so called taxable maximum will increase as well.
Out of nearly 163 million wage earners who will pay social security taxes next year, about 10 million will pay higher taxes due to the increase in the taxable maximum, according to the agency.
Incidentally, the announcement came to light after news surfaced about the agency’s alleged plan to reduce its office hours to cut cost. However, the said plan was opposed by several organizations for some reasons.
Although it would be a good news to recipients, taxpayers, on the other hand, will definitely not be pleased with the announcement, according to several Los Angeles social security claim lawyers.
Nevertheless, they are still pretty impressed that despite the financial downfall experienced by the federal agency, it still finds ways to provide the needs of seniors and individuals with disabling condition who cannot cope with the increasingly high cost of living.
