Social Security Changes TODAY: 4 new changes announced, including COLA
The Social Security Administration (SSA) is set to implement significant changes to the Supplemental Security Income (SSI) program starting in October 2024. These updates will impact over 7 million low-income Americans who rely on SSI benefits for their living expenses.
Overview of the SSI Program
The SSI program is a critical financial lifeline for various groups, including individuals over age 65 and both adults and children with disabilities or blindness. To qualify for SSI benefits, an individual’s monthly income must not exceed $1,971, according to SSA guidelines.
Key Changes to SSI Benefits
The upcoming changes to the SSI program include:
- Adjustment in Benefit Amounts: Currently, individual recipients receive an average of $943 per month, while couples can receive up to $1,415.
- Updated Eligibility Criteria: The SSA is revising the monthly income threshold to ensure that more individuals can access these vital benefits.
- Resource Limit Modifications: Changes will allow beneficiaries to retain more assets without affecting their eligibility for SSI.
- COLA Increase in 2025: The maximum payment will include the 2025 Cost-of-Living Adjustment (COLA), which is projected to be around 2.5%.
These updates aim to provide better financial support and stability to those dependent on SSI benefits.
New Eligibility Criteria for SSI
One of the most significant changes involves redefining what constitutes a “public assistance household.” Previously, every household member had to receive public assistance to qualify for SSI payments. Under the new rule, only one household member must be an SSI recipient, along with at least one other member receiving some form of verified public assistance.
- Current Requirement: All household members must receive public assistance.
- New Requirement: Only one SSI recipient is needed, plus at least one other household member receiving verified public assistance.
Enhancements in Social Security Programs
Social Security Commissioner Martin O’Malley stated, “We are removing significant hurdles to SSI access by streamlining our laws and incorporating an extra program geared toward low-income families, such as SNAP benefits.” These changes aim to promote greater fairness within the Social Security system.
The modifications are expected to enhance payments for approximately 277,000 current SSI beneficiaries, while also making an additional 109,000 individuals eligible for benefits.
Changes in Food Assistance Calculations
The SSA is also making notable adjustments in how in-kind support and maintenance (ISM) related to food is evaluated for SSI eligibility.
- Starting September 30, 2024, food will no longer be included in ISM calculations when determining SSI eligibility and payment amounts.
- This change allows SSI recipients to accept food aid from friends and family without jeopardizing their benefits.
- Recipients will have reduced reporting burdens regarding food assistance, leading to improved payment accuracy and administrative savings for the SSA.
Upcoming COLA Increase and Payment Details
The SSA has announced that initial COLA payments will be distributed ahead of schedule, offering eligible recipients a timely financial boost. The maximum payment will now reflect both the usual amount of $943 and the anticipated 2025 COLA increase. While the exact figure remains to be confirmed, projections suggest a 2.5% increase. This adjustment will be beneficial for all SSI recipients and other Social Security beneficiaries.
