Changes Coming to Social Security Disability Insurance in 2017

 Posted on November 11, 2016 in Social Security Disability

The new year will bring more than a change of presidential administrations. On January 1, 2017, new program rates and limits for individuals receiving Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) benefits will take effect. Although these increases are relatively modest, they will still help millions of Americans who rely on government benefits as their primary income source.

A Small Increase in Disability Benefits

By law, Social Security officials must adjust benefit rates and limits annually based on the Consumer Price Indexes (CPI). The CPI is a program run by the U.S. Department of Labor that measures the month-to-month changes in the “prices paid by urban consumers for a representative basket of goods and services.” It is essentially a broad measure of inflation in the U.S. economy.

Unfortunately for SSDI and SSI recipients, inflation has been quite low in recent years. Based on CPI changes through the third quarter of 2016, Social Security announced there will only be a 0.3 percent increase in benefits next year. This means that for the average worker receiving $1,167 in monthly benefit in 2016, he or she will get $1,171 per month in 2017–a monthly raise of just $4.

For SSI recipients, this 0.3 percent increase also applies to the maximum benefits allowed. Currently an individual on SSI receives up to $733 per month, while couples get up to $1,100. In 2017 these amounts will increase to $735 and $1,103, respectively.

Changes to Income Limits

There will also be adjustments to certain thresholds used to determine eligibility for benefits. Social Security limits the amount of income a person may earn from “substantial gainful activity” (SGA) and still receive SSDI benefits. For individuals who are legally disabled (but not blind), the current SGA limit is $1,130 per month. For blind and disabled persons, there is a higher SGA limit of $1,820 per month. In 2017 the SGA limits increase to $1,170 (non-blind) and $1,950 (blind).

There is a separate threshold known as a “trial work period.” This is where a person is currently receiving SSDI benefits but wants to attempt to return to the workforce. Currently a person may earn up to $810 per month without losing their existing disability benefits. This amount will increase to $840 per month in 2017.

If you still have questions or concerns about how changes to Social Security's new rates and limits may affect your situation, you should speak with a Chicago disability benefits lawyer right away. Contact Pearson Disability Law, LLC, if you need help today.

Source:

https://www.ssa.gov/news/press/factsheets/colafacts2017.pdf