Cost of Living Adjustment increases 2.8% in 2019, Contribution Base increased to $132,900

Oct 11 13:10 2018 Print This Article

With the release of the CPI report this morning, we now know the Cost of Living Adjustment (COLA), and the contribution base for 2019.From Social Security: Social Security Announces 2.8 Percent Benefit Increase for 2019Social Security and Supplemental Security Income (SSI) benefits for more than 67 million Americans will increase 2.8 percent in 2019, the Social Security Administration announced today.The 2.8 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 62 million Social Security beneficiaries in January 2019. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2018. (Note: some people receive both Social Security and SSI benefits). The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.Some other adjustments that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $132,900 from $128,400.Currently CPI-W is the index that is used to calculate the Cost-Of-Living Adjustments (COLA). Here is a discussion from Social Security on the current calculation (2.8% increase) and a list of previous Cost-of-Living Adjustments. The contribution and benefit base will be $132,900 in 2019.The National Average Wage Index increased to $50,321.89 in 2017, up 3.5% from $48,642.15 in 2016 (used to calculate contribution base).

Read More

About Article Author

Calculated Risk

A full time blogger, Bill McBride retired as a senior executive from a small public company in the '90s. Mr. McBride holds an MBA from the University of California, Irvine, and has a background in management, finance and economics.

  Categories:

Related Items

Building a Sustainable Workforce with the integration of AI Solutions

Canada has emerged as a leader in the global race to develop artificial intelligence(AI) and we need to ensure the continued freedom to operate and our country’s business competitiveness. Through a series of roundtables this Spring, we are identifying positive outcomes for AI, exploring the range ...

Cool Video: Discussion of the Deflationary Risks in Japan and Brexit

I joined CNBC Asia's Amanda Drury and Sri Jegarajah via Skype earlier today as the new week was beginning in Asia.  In this three minute clip, we discuss the outlook for the BOJ and sterling.   Most of the rise in Japan's inflation is due to food and energy prices.  Despite an aggressive b ...

Morning News: April 22, 2019

U.S. Ending Iran Waivers Could Affect Oil Markets and Beyond Free Speech Puts U.S. on ‘a Collision Course’ With Global Limits on Big Tech Financial Market ‘Pause Party’ Makes Fed Rate Cut Less Likely Trump’s Washing Machine Tariffs Stung Consumers While Lifting Corporate Profits The Fed I ...

Surge in Oil Punctures Holiday Markets

Overview: With many centers closed for the extended holiday, the calm in the global capital markets has been punctuated by reports that the US is considering ending its exemption for eight countries to have bought Iranian oil over the past six months.  The waivers were to end on May 2, but previ ...

Startup jobs of the week: Synapse, Real Estate Webmasters, Urbanlinx Media Inc.

Every day, Canada’s tech startups post their latest and greatest job opportunities on Jobs.BetaKit, powered by Jobbio. From early-stage to Series B and beyond, Jobs.BetaKit helps startups from all over the country hire Canada’s top tech talent. Each week, BetaKit will highlight a selection of ...

US REITs Suffer Biggest Weekly Loss So Far In 2019

Real estate investment trusts (REITs) in the US tumbled last week, posting the biggest setback for the major asset classes during the shortened trading week that ended on April 18, based on a set of exchange traded funds. The loss, the deepest for this corner of the market since a plunge late last ...

EUR/USD – Euro yawing on Easter Monday, but U.S oil sanctions could rattle markets

German banks are closed for the Easter Monday holiday and EUR/USD is almost unchanged. Currently, the pair is trading at 1.1249, up 0.03% on the day. There are no German or eurozone events on the calendar. In the U.S., there is just one release. Existing home sales is expected to slow to 5.31 mill ...

Macro Briefing: 22 April 2019

Death toll in Easter bombing in Sri Lanka rises to 290: CNNTrump administration set to end waivers for nations importing Iranian oil: ReutersOil prices rise as market prepares for end of Iranian import waivers: CNBCComedian Zelensky wins presidency in Ukraine: BBCHouse Oversight Committee Chairman ...

Iran sanctions waivers hit sentiment in Asia

  Speculation that the US is about to announce the end to the Iran sanctions waivers later today boosted oil prices and took the shine off risk appetite that had remained buoyant into the close of trading last week.   Oil prices surge West Texas Intermediate (WTI) climbed 2.5% during  the Asian ...

Tech Talk for Monday April 22nd 2019

  The Bottom Line U.S. equity markets were mixed again last week despite better than consensus first quarter results released to date by S&P 500 and Dow Jones Industrial companies. Strength in the U.S. Dollar Index dampened enthusiasm for U.S. equities. Canadian equities performed slightly better ...