Monthly Social Security and Supplemental Security Income (SSI) benefits to more than 2,634,000 residents of Texas will increase 2.6 percent next year, according to Amarillo SS office manager Ruth Wilson.
“Today’s news tells us that inflation continues to be low, which is certainly good news for the elderly and disabled,” said Ms. Wilson. “Inflation is one of the biggest challenges for people living on a fixed income.”
The 2.6 percent increase will begin with benefits that Social Security beneficiaries will receive in January 2002, a press release said. Increased payments for SSI recipients will begin on December 31, 2001.
Wilson said the increase will be important for the area economy.
Average monthly benefits for retirees will rise from $852 to $874, and the maximum federal SSI monthly payment to an individual will rise from $531 to $545. For a couple, the maximum SSI payment will rise from $796 to $817.
“The annual cost of living adjustment is one of the most critically important features of the Social Security program. For the elderly, it guarantees that their foundation of retirement income will remain strong for as long as they live.”
A total of 969 people received Social Security benefits in Donley County in December 2000. Eighty-two others received SSI funds. Benefits to local people totaled $711,000 that month.
Currently, monthly benefits paid to Texas residents amount to over $2 billion annually.
The change also affects the payroll tax rates. Effective next January, the maximum amount of earnings subject to the Social Security tax will increase from $80,400 to $84,900. The maximum yearly Social Security tax paid by employees and employers will increase by $279 each. For the self-employed, it will rise by $558.
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