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<h3 align="center">2012 Social Security Changes</h3>
</div>
<div>
<p align="center"><span class="ninetypercent">(<a href="colafacts2012.pdf"><i>Printer friendly version</i></a>)</span></p>
<p><b><u>Cost-of-Living Adjustment (COLA):</u></b></p>
<p>Based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2008 through the third quarter of 2011, Social Security and Supplemental Security Income (SSI) beneficiaries will receive a 3.6 percent COLA for 2012. Other important 2012 Social Security information is as follows:</p>
<table width="98%" border="1" cellspacing="3" cellpadding="2">
<tr class="ui-state-focus">
<th width="60%" id="m1"><div align="left"><strong>Tax Rate:</strong></div></th>
<th width="20%" id="m3" align="center"><strong>2011</strong></th>
<th width="20%" align="center"><strong>2012</strong></th>
</tr>
<tr>
<td id="m4"><strong>Employee</strong></td>
<td width="20%" align="right">7.65%*</td>
<td width="20%" align="right">7.65%</td>
</tr>
<tr>
<td><strong>Self-Employed</strong></td>
<td width="20%" align="right">15.30%*</td>
<td width="20%" align="right">15.30%</td>
</tr>
<tr>
<td colspan="2" id="m" headers="m1"><p><strong>NOTE: </strong>The 7.65% tax rate is the combined rate for Social Security and Medicare. The Social Security portion (OASDI) is 6.20% on earnings up to the applicable taxable maximum amount (see below). The Medicare portion (HI) is 1.45% on all earnings.</p>
<p>* Section 601 of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 reduced, for wages and salaries paid in calendar year 2011 and self-employment income in calendar year 2011, the OASDI payroll tax by 2 percentage points, applied to the portion of the tax paid by the worker and the self-employed individual. </p> </td>
<td width="20%"> </td>
</tr>
<tr>
<td colspan="3" id="m2" headers="m1"> </td>
</tr>
<tr class="ui-state-focus">
<th id="m1"><div align="left"><strong><u>Maximum Taxable Earnings:</u></strong></div></th>
<th width="20%" align="center">2011</th>
<th width="20%" align="center">2012</th>
</tr>
<tr>
<td><strong>Social Security (OASDI only)</strong></td>
<td width="20%" align="right">$106,800</td>
<td width="20%" align="right">$110,100</td>
</tr>
<tr>
<td ><strong>Medicare (HI only)</strong></td>
<td colspan="2" align="center">N o L i m i t</td>
</tr>
<tr>
<td colspan="3" > </td>
</tr>
<tr class="ui-state-focus">
<th id="m1"><div align="left"><strong><u>Quarter of Coverage:</u></strong></div></th>
<th width="20%" align="center">2011</th>
<th width="20%" align="center">2012</th>
</tr>
<tr>
<td><p><strong>Earnings needed to earn one Social Security Credit</strong></p></td>
<td width="20%" align="right">$1,120</td>
<td width="20%" align="right">$1,130</td>
</tr>
<tr>
<td colspan="3"> </td>
</tr>
<tr class="ui-state-focus">
<th id="m1"><div align="left"><strong><u>Retirement Earnings Test Exempt Amounts:</u></strong></div></th>
<th width="20%" align="center">2011</th>
<th width="20%" align="center">2012</th>
</tr>
<tr>
<td><p><strong>Under full retirement age</strong></p>
<p><strong>NOTE:</strong> One dollar in benefits will be withheld for every $2 in earnings above the limit.</p></td>
<td align="right">$14,160/yr.<br>
($1,180/mo.)</td>
<td align="right">$14,640/yr.<br>
($1,220/mo.)</td>
</tr>
<tr>
<td ><p><strong>The year an individual reaches full retirement age</strong></p>
<p><strong>NOTE: </strong>Applies only to earnings for months prior to attaining full retirement age. One dollar in benefits will be withheld for every $3 in earnings above the limit.</p>
<p>There is no limit on earnings beginning the month an individual attains full retirement age.</p></td>
<td width="20%" align="right">$37,680/yr.<br>
($3,140/mo.)</td>
<td width="20%" align="right">$38,880/yr.<br>
($3,240/mo.)</td>
</tr>
<tr>
<td colspan="3" > </td>
</tr>
<tr class="ui-state-focus">
<th id="m1"><div align="left"><strong><u>Social Security Disability Thresholds:</u></strong></div></th>
<th width="20%" align="center"><strong>2011</strong></th>
<th width="20%" align="center"><strong>2012</strong></th>
</tr>
<tr>
<td >
<p><strong>Substantial Gainful Activity (SGA)</strong><br>
Non-Blind<br>
Blind
</td>
<td width="20%" align="right"><br>
$1,000/mo.<br>
$1,640/mo.</td>
<td width="20%" align="right"><br>
$1,010/mo.<br>
$1,690/mo.</td>
</tr>
<tr>
<td ><strong>Trial Work Period (TWP)</strong></td>
<td width="20%" align="right">$720/mo.</td>
<td width="20%" align="right">$720/mo.</td>
</tr>
<tr>
<td colspan="3" > </td>
</tr>
<tr class="ui-state-focus">
<th id="m1"><div align="left"><strong><u>Maximum Social Security Benefit: </u></strong><u>Worker Retiring at Full Retirement Age:</u></div></th>
<th align="center">2011</th>
<th align="center">2012</th>
</tr>
<tr>
<td > </td>
<td width="20%" align="right">$2,366/mo.</td>
<td width="20%" align="right">$2,513/mo.</td>
</tr>
<tr>
<td colspan="3" > </td>
</tr>
<tr class="ui-state-focus">
<th id="m1"><div align="left"><strong><u>SSI Federal Payment Standard:</u></strong></div></th>
<th align="center"><strong>2011</strong></th>
<th align="center"><strong>2012</strong></th>
</tr>
<tr>
<td ><strong>Individual</strong></td>
<td width="20%" align="right">$674/mo.</td>
<td width="20%" align="right">$698/mo.</td>
</tr>
<tr>
<td ><strong>Couple</strong></td>
<td width="20%" align="right">$1,011/mo.</td>
<td width="20%" align="right">$1,048/mo.</td>
</tr>
<tr>
<td colspan="3" > </td>
</tr>
<tr class="ui-state-focus">
<th id="m1"><div align="left"><strong><u>SSI Resources Limits:</u></strong></div></th>
<th align="center"><strong>2011</strong></th>
<th align="center"><strong>2012</strong></th>
</tr>
<tr>
<td ><strong>Individual</strong></td>
<td width="20%" align="right">$2,000</td>
<td width="20%" align="right">$2,000</td>
</tr>
<tr>
<td ><strong>Couple</strong></td>
<td width="20%" align="right">$3,000</td>
<td width="20%" align="right"><p>$3,000</p></td>
</tr>
<tr>
<td colspan="3" > </td>
</tr>
<tr class="ui-state-focus">
<th id="m1"><div align="left"><strong><u>SSI Student Exclusion:</u></strong></div></th>
<th align="center"><strong>2011</strong></th>
<th align="center"><strong>2012</strong></th>
</tr>
<tr>
<td ><strong>Monthly limit</strong></td>
<td width="20%" align="right">$1,640</td>
<td width="20%" align="right">$1,700</td>
</tr>
<tr>
<td ><strong>Annual limit</strong></td>
<td width="20%" align="right">$6,600</td>
<td width="20%" align="right">$6,840</td>
</tr>
<tr>
<td colspan="3"> </td>
</tr>
<tr class="ui-state-focus">
<th id="m1"><div align="left"><strong>Estimated Average Monthly Social Security Benefits Payable in January 2012:</strong></div></th>
<th width="20%" align="center"><strong><u>Before<br>
3.6% COLA</u></strong></th>
<th width="20%" align="center"><strong><u>After<br>
3.6% COLA</u></strong></th>
</tr>
<tr>
<td ><strong>All Retired Workers</strong></td>
<td width="20%" align="right">$1,186</td>
<td width="20%" align="right">$1,229</td>
</tr>
<tr>
<td ><strong>Aged Couple, Both Receiving Benefits</strong></td>
<td width="20%" align="right">$1,925</td>
<td width="20%" align="right">$1,994</td>
</tr>
<tr>
<td ><strong>Widowed Mother and Two Children</strong></td>
<td width="20%" align="right">$2,455</td>
<td width="20%" align="right">$2,543</td>
</tr>
<tr>
<td ><strong>Aged Widow(er) Alone</strong></td>
<td width="20%" align="right">$1,143</td>
<td width="20%" align="right">$1,184</td>
</tr>
<tr>
<td ><strong>Disabled Worker, Spouse and One or More Children</strong></td>
<td width="20%" align="right">$1,826</td>
<td width="20%" align="right">$1,892</td>
</tr>
<tr>
<td ><strong>All Disabled Workers</strong></td>
<td width="20%" align="right">$1,072</td>
<td width="20%" align="right">$1,111</td>
</tr>
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