Social Security Announces 1.3 Percent Benefit Increase for 2021
The Social Security Administration recently announced the Cost-of-Living Adjustment (COLA) for 2021. Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 1.3 percent in January 2021. Increased payments to more than 8 million SSI beneficiaries will begin on Dec. 31, 2020. 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.
When certifying income, be sure to apply the COLA to benefits for the appropriate number of months based on the effective date of the certification. If you have already processed files for move-in during January 2021, review the household income and apply the COLA to benefits issued by the Social Security Administration since it is a known anticipated change in income.