SSDI Cost of Living Increase in 2012 is 3.6%

Earnings Limit for SSDI, $1,010 a Month

Earning While Disabled. In 2012 non-blind Social Security Disability Insurance (SSDI) beneficiaries now can work and earn up to $1,010 a month without forfeiting their monthly checks. Effective January 1, 2012, if earnings exceed this amount the Social Security Administration (SSA) considers the earnings to show "substantial gainful activity" or "SGA". (A higher amount - $1,690 a month - applies to blind individuals.) In 2011 the SGA amount is $1,000 a month  ($1,640 for blind individuals).

If a beneficiary earns more than the SGA amount for a sustained period, this could trigger a continuing disability review and could cause SSA to stop benefits. Or if one is applying for SSDI benefits and earning more than $1,010 a month ($1,690 for blindness) this could lead SSA to deny the benefit application. For more information see the SSA publication, How Work Affects Your Benefits, SSA Publication Number 05-10069, http://www.ssa.gov/pubs/10069.html.

Trial Work Month. A "trial work month" in 2012 is any month in which earnings exceed $720. The 2011 amount also was $720.

Why Annual Adjustments. Why is SSA evaluating the SGA and trial work month amounts annually to decide about adjustments? To encourage SSDI beneficiaries to try working, says the agency. They explained in the Federal Register dated December 29, 2000 (page 82905):

"We are revising these rules as part of our efforts to encourage individuals with disabilities to test their ability to work and keep working. We expect that these changes will provide greater incentives for many beneficiaries to attempt to work or, if already working, to continue to work or increase their work effort."

Before the new regulation, advocates might advise clients who received SSDI checks that their benefits were at risk if they earned any money. Also claimants who were working and earning any significant sum were considered to have poor prospects for winning. These risks have been reduced since the new SSA policy was announced at the end of 2000.

Nonetheless, if SSA believes that a person may be deferring or suppressing earnings to make it seem that he or she cannot work regularly, the agency reserves the right to investigate and estimate the individual’s actual earnings potential.

Cost of Living Increase. The cost of living increase for SSDI benefits in 2012 is 3.6%. There was no cost of living increase for benefits payable in 2011, because government calculations showed no increase in living costs.

Source: SSA Press Office release October 19, 2011

http://www.ssa.gov/pressoffice/factsheets/colafacts2012.htm

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