Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices 50209 

Administration, 409 Third Street SW., 

Washington, DC 20416. 

Dated: October 23, 2017. 

A. Joseph Shepard, 

Associate Administrator for Investment and 

Innovation. 

[FR Doc. 2017–23499 Filed 10–27–17; 8:45 am] 

BILLING CODE P 

SOCIAL SECURITY ADMINISTRATION 

[Docket No. SSA–2017–0053] 

Cost-of-Living Increase and Other 

Determinations for 2018 

AGENCY: Social Security Administration. 

ACTION: Notice. 

SUMMARY: Under title II of the Social 

Security Act (Act), there will be a 2.0 

percent cost-of-living increase in Social 

Security benefits effective December 

2017. In addition, the national average 

wage index for 2016 is $48,664.73. The 

cost-of-living increase and national 

average wage index affect other program 

parameters as described below. 

FOR FURTHER INFORMATION CONTACT: 

Susan C. Kunkel, Office of the Chief 

Actuary, Social Security 

Administration, 6401 Security 

Boulevard, Baltimore, MD 21235, (410) 

965–3000. Information relating to this 

announcement is available on our 

Internet site at www.socialsecurity.gov/ 

oact/cola/index.html. For information 

on eligibility or claiming benefits, call 

1–800–772–1213 (TTY 1–800–325– 

0778), or visit our Internet site at 

www.socialsecurity.gov. 

SUPPLEMENTARY INFORMATION: Because of 

the 2.0 percent cost-of-living increase, 

the following items will increase for 

2018: 

(1) The maximum Federal 

Supplemental Security Income (SSI) 

monthly payment amounts for 2018 

under title XVI of the Act will be $750 

for an eligible individual, $1,125 for an 

eligible individual with an eligible 

spouse, and $376 for an essential 

person; 

(2) The special benefit amount under 

title VIII of the Act for certain World 

War II veterans will be $562.50 for 2018; 

(3) The student earned income 

exclusion under title XVI of the Act will 

be $1,820 per month in 2018, but not 

more than $7,350 for all of 2018; 

(4) The dollar fee limit for services 

performed as a representative payee will 

be $42 per month ($80 per month in the 

case of a beneficiary who is disabled 

and has an alcoholism or drug addiction 

condition that leaves him or her 

incapable of managing benefits) in 2018; 

and 

(5) The dollar limit on the 

administrative-cost fee assessment 

charged to an appointed representative 

such as an attorney, agent, or other 

person who represents claimants will be 

$93 beginning in December 2017. 

The national average wage index for 

2016 is $48,664.73. This index affects 

the following amounts: 

(1) The Old-Age, Survivors, and 

Disability Insurance (OASDI) 

contribution and benefit base will be 

$128,700 for remuneration paid in 2018 

and self-employment income earned in 

taxable years beginning in 2018; 

(2) The monthly exempt amounts 

under the OASDI retirement earnings 

test for taxable years ending in calendar 

year 2018 will be $1,420 for 

beneficiaries who will attain their 

Normal Retirement Age (NRA) (defined 

in the Retirement Earnings Test Exempt 

Amounts section below) after 2018 and 

$3,780 for those who attain NRA in 

2018; 

(3) The dollar amounts (‘‘bend 

points’’) used in the primary insurance 

amount (PIA) formula for workers who 

become eligible for benefits, or who die 

before becoming eligible, in 2018 will be 

$896 and $5,399; 

(4) The bend points used in the 

formula for computing maximum family 

benefits for workers who become 

eligible for benefits, or who die before 

becoming eligible, in 2018 will be 

$1,145, $1,652, and $2,155; 

(5) The taxable earnings a person 

must have to be credited with a quarter 

of coverage in 2018 will be $1,320; 

(6) The ‘‘old-law’’ contribution and 

benefit base under title II of the Act will 

be $95,400 for 2018; 

(7) The monthly amount deemed to 

constitute substantial gainful activity 

(SGA) for statutorily blind persons in 

2018 will be $1,970. The corresponding 

amount for non-blind disabled persons 

will be $1,180; 

(8) The earnings threshold 

establishing a month as a part of a trial 

work period will be $850 for 2018; and 

(9) Coverage thresholds for 2018 will 

be $2,100 for domestic workers and 

$1,800 for election officials and election 

workers. 

According to section 215(i)(2)(D) of 

the Act, we must publish the benefit 

increase percentage and the revised 

table of ‘‘special minimum’’ benefits 

within 45 days after the close of the 

third calendar quarter of 2017. We must 

also publish the following by November 

1: The national average wage index for 

2016 (215(a)(1)(D)), the OASDI fund 

ratio for 2017 (section 215(i)(2)(C)(ii)), 

the OASDI contribution and benefit base 

for 2018 (section 230(a)), the earnings 

required to be credited with a quarter of 

coverage in 2018 (section 213(d)(2)), the 

monthly exempt amounts under the 

Social Security retirement earnings test 

for 2018 (section 203(f)(8)(A)), the 

formula for computing a PIA for workers 

who first become eligible for benefits or 

die in 2018 (section 215(a)(1)(D)), and 

the formula for computing the 

maximum benefits payable to the family 

of a worker who first becomes eligible 

for old-age benefits or dies in 2018 

(section 203(a)(2)(C)). 

Cost-of-Living Increases 

General 

The cost-of-living increase is 2.0 

percent for monthly benefits under title 

II and for monthly payments under title 

XVI of the Act. Under title II, OASDI 

benefits will increase by 2.0 percent for 

individuals eligible for December 2017 

benefits, payable in January 2018. We 

base this increase on the authority 

contained in section 215(i) of the Act. 

Pursuant to section 1617 of the Act, 

Federal SSI payment levels will also 

increase by 2.0 percent effective for 

payments made for January 2018 but 

paid on December 29, 2017. 

Computation 

Computation of the cost-of-living 

increase is based on an increase in a 

Consumer Price Index produced by the 

Bureau of Labor Statistics. At the time 

the Act was amended to provide cost-ofliving increases, only one Consumer 

Price Index existed, namely the 

Consumer Price Index for Urban Wage 

Earners and Clerical Workers. Although 

the Bureau of Labor Statistics has since 

developed other consumer price 

indices, we follow precedent by 

continuing to use the Consumer Price 

Index for Urban Wage Earners and 

Clerical Workers. We refer to this index 

in the following paragraphs as the CPI. 

Section 215(i)(1)(B) of the Act defines 

a ‘‘computation quarter’’ to be a third 

calendar quarter in which the average 

CPI exceeded the average CPI in the 

previous computation quarter. The last 

cost-of-living increase, effective for 

those eligible to receive title II benefits 

for December 2016, was based on the 

CPI increase from the third quarter of 

2014 to the third quarter of 2016. 

Therefore, the last computation quarter 

is the third quarter of 2016. The law 

states that a cost-of-living increase for 

benefits is determined based on the 

percentage increase, if any, in the CPI 

from the last computation quarter to the 

third quarter of the current year. 

Therefore, we compute the increase in 

the CPI from the third quarter of 2016 

to the third quarter of 2017. 


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Section 215(i)(1) of the Act states that 

the CPI for a cost-of-living computation 

quarter is the arithmetic mean of this 

index for the 3 months in that quarter. 

In accordance with 20 CFR 404.275, we 

round the arithmetic mean, if necessary, 

to the nearest 0.001. The CPI for each 

month in the quarter ending September 

30, 2016, the last computation quarter, 

is: For July 2016, 234.771; for August 

2016, 234.904; and for September 2016, 

235.495. The arithmetic mean for the 

calendar quarter ending September 30, 

2016 is 235.057. The CPI for each month 

in the quarter ending September 30, 

2017, is: For July 2017, 238.617; for 

August 2017, 239.448; and for 

September 2017, 240.939. The 

arithmetic mean for the calendar quarter 

ending September 30, 2017 is 239.668. 

The CPI for the calendar quarter ending 

September 30, 2017, exceeds that for the 

calendar quarter ending September 30, 

2016 by 2.0 percent (rounded to the 

nearest 0.1). Therefore, beginning 

December 2017 a cost-of-living benefit 

increase of 2.0 percent is effective for 

benefits under title II of the Act. 

Section 215(i) also specifies that a 

benefit increase under title II, effective 

for December of any year, will be 

limited to the increase in the national 

average wage index for the prior year if 

the OASDI fund ratio for that year is 

below 20.0 percent. The OASDI fund 

ratio for a year is the ratio of the 

combined assets of the OASDI Trust 

Funds at the beginning of that year to 

the combined expenditures of these 

funds during that year. For 2017, the 

OASDI fund ratio is assets of $2,847,687 

million divided by estimated 

expenditures of $954027 million, or 

298.5 percent. Because the 298.5 

percent OASDI fund ratio exceeds 20.0 

percent, the benefit increase for 

December 2017 is not limited. 

Program Amounts That Change Based 

on the Cost-of-Living Increase 

The following program amounts 

change based on the cost-of-living 

increase: (1) Title II benefits; (2) title 

XVI payments; (3) title VIII benefits; (4) 

the student earned income exclusion; 

(5) the fee for services performed by a 

representative payee; and (6) the 

appointed representative fee 

assessment. 

Title II Benefit Amounts 

In accordance with section 215(i) of 

the Act, for workers and family 

members for whom eligibility for 

benefits (that is, the worker’s attainment 

of age 62, or disability or death before 

age 62) occurred before 2018, benefits 

will increase by 2.0 percent beginning 

with benefits for December 2017, which 

are payable in January 2018. For those 

first eligible after 2017, the 2.0 percent 

increase will not apply. 

For eligibility after 1978, we 

determine benefits using a formula 

provided by the Social Security 

Amendments of 1977 (Pub. L. 95–216), 

as described later in this notice. 

For eligibility before 1979, we 

determine benefits by using a benefit 

table. The table is available on the 

Internet at www.socialsecurity.gov/oact/ 

ProgData/tableForm.html or by writing 

to: Social Security Administration, 

Office of Public Inquiries, Windsor Park 

Building, 6401 Security Boulevard, 

Baltimore, MD 21235. 

Section 215(i)(2)(D) of the Act 

requires that, when we determine an 

increase in Social Security benefits, we 

will publish in the Federal Register a 

revision of the range of the PIAs and 

maximum family benefits based on the 

dollar amount and other provisions 

described in section 215(a)(1)(C)(i). We 

refer to these benefits as ‘‘special 

minimum’’ benefits. These benefits are 

payable to certain individuals with long 

periods of low earnings. To qualify for 

these benefits, an individual must have 

at least 11 years of coverage. To earn a 

year of coverage for purposes of the 

special minimum benefit, a person must 

earn at least a certain proportion of the 

old-law contribution and benefit base 

(described later in this notice). For years 

before 1991, the proportion is 25 

percent; for years after 1990, it is 15 

percent. In accordance with section 

215(a)(1)(C)(i), the table below shows 

the revised range of PIAs and maximum 

family benefit amounts after the 2.0 

percent benefit increase. 

SPECIAL MINIMUM PIAS AND MAXIMUM FAMILY BENEFITS PAYABLE FOR DECEMBER 2017 

Number of years 

of coverage PIA 

Maximum 

family 

benefit 

11 ............................................................................................................................................................................. $40.80 $62.10 

12 ............................................................................................................................................................................. 83.30 126.10 

13 ............................................................................................................................................................................. 125.90 190.10 

14 ............................................................................................................................................................................. 168.30 253.60 

15 ............................................................................................................................................................................. 210.50 317.10 

16 ............................................................................................................................................................................. 253.30 381.20 

17 ............................................................................................................................................................................. 295.80 445.40 

18 ............................................................................................................................................................................. 338.30 508.80 

19 ............................................................................................................................................................................. 380.80 572.70 

20 ............................................................................................................................................................................. 423.50 636.00 

21 ............................................................................................................................................................................. 466.00 700.40 

22 ............................................................................................................................................................................. 508.20 764.00 

23 ............................................................................................................................................................................. 551.50 828.80 

24 ............................................................................................................................................................................. 593.90 892.00 

25 ............................................................................................................................................................................. 636.00 955.30 

26 ............................................................................................................................................................................. 679.30 1,020.10 

27 ............................................................................................................................................................................. 721.30 1,083.70 

28 ............................................................................................................................................................................. 763.80 1,147.20 

29 ............................................................................................................................................................................. 806.40 1,211.50 

30 ............................................................................................................................................................................. 848.80 1,274.60 

Title XVI Payment Amounts 

In accordance with section 1617 of 

the Act, maximum Federal SSI 

payments amounts for the aged, blind, 

and disabled will increase by 2.0 

percent effective January 2018. For 

2017, we derived the monthly payment 

amounts for an eligible individual, an 

eligible individual with an eligible 

spouse, and for an essential person— 

$735, $1,103, and $368, respectively— 

from yearly, unrounded Federal SSI 


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payment amounts of $8,830.84, 

$13,244.80, and $4,425.55. For 2018, 

these yearly unrounded amounts 

respectively increase by 2.0 percent to 

$9,007.46, $13,509.70, and $4,514.06. 

We must round each of these resulting 

amounts, when not a multiple of $12, to 

the next lower multiple of $12. 

Therefore, the annual amounts, effective 

for 2018, are $9,000, $13,500, and 

$4,512. Dividing the yearly amounts by 

12 gives the respective monthly 

amounts for 2018—$750, $1,125, and 

$376. For an eligible individual with an 

eligible spouse, we equally divide the 

amount payable between the two 

spouses. 

Title VIII Benefit Amount 

Title VIII of the Act provides for 

special benefits to certain World War II 

veterans who reside outside the United 

States. Section 805 of the Act provides 

that ‘‘[t]he benefit under this title 

payable to a qualified individual for any 

month shall be in an amount equal to 

75 percent of the Federal benefit rate 

[the maximum amount for an eligible 

individual] under title XVI for the 

month, reduced by the amount of the 

qualified individual’s benefit income for 

the month.’’ Therefore, the monthly 

benefit for 2018 under this provision is 

75 percent of $750, or $562.50. 

Student Earned Income Exclusion 

A blind or disabled child who is a 

student regularly attending school, 

college, university, or a course of 

vocational or technical training can 

have limited earnings that do not count 

against his or her SSI payments. The 

maximum amount of such income that 

we may exclude in 2017 is $1,790 per 

month, but not more than $7,200 in all 

of 2017. These amounts increase based 

on a formula set forth in regulation 20 

CFR 416.1112. 

To compute each of the monthly and 

yearly maximum amounts for 2018, we 

increase the unrounded amount for 

2017 by the latest cost-of-living 

increase. If the amount so calculated is 

not a multiple of $10, we round it to the 

nearest multiple of $10. The unrounded 

monthly amount for 2017 is $1,786.71. 

We increase this amount by 2.0 percent 

to $1,822.44, which we then round to 

$1,820. Similarly, we increase the 

unrounded yearly amount for 2017, 

$7,202.19, by 2.0 percent to $7,346.23 

and round this to $7,350. Therefore, the 

maximum amount of the income 

exclusion applicable to a student in 

2018 is $1,820 per month but not more 

than $7,350 in all of 2018. 

Fee for Services Performed as a 

Representative Payee 

Sections 205(j)(4)(A)(i) and 

1631(a)(2)(D)(i) of the Act permit a 

qualified organization to collect a 

monthly fee from a beneficiary for 

expenses incurred in providing services 

as the beneficiary’s representative 

payee. In 2017, the fee is limited to the 

lesser of: (1) 10 percent of the monthly 

benefit involved; or (2) $41 each month 

($78 each month when the beneficiary 

is entitled to disability benefits and has 

an alcoholism or drug addiction 

condition that makes the individual 

incapable of managing such benefits). 

The dollar fee limits are subject to 

increase by the cost-of-living increase, 

with the resulting amounts rounded to 

the nearest whole dollar amount. 

Therefore, we increase the current 

amounts by 2.0 percent to $42 and $80 

for 2018. 

Appointed Representative Fee 

Assessment 

Under sections 206(d) and 1631(d) of 

the Act, whenever we pay a fee to a 

representative such as an attorney, 

agent, or other person who represents 

claimants, we must impose on the 

representative an assessment to cover 

administrative costs. The assessment is 

no more than 6.3 percent of the 

representative’s authorized fee or, if 

lower, a dollar amount that is subject to 

increase by the cost-of-living increase. 

We derive the dollar limit for December 

2017 by increasing the unrounded limit 

for December 2016, $91.47, by 2.0 

percent, which is $93.30. We then 

round $93.30 to the next lower multiple 

of $1. The dollar limit effective for 

December 2017 is, therefore, $93. 

National Average Wage Index for 2016 

Computation 

We determined the national average 

wage index for calendar year 2016 based 

on the 2015 national average wage index 

of $48,098.63, published in the Federal 

Register on October 27, 2016 (81 FR 

74859), and the percentage increase in 

average wages from 2015 to 2016, as 

measured by annual wage data. We 

tabulate the annual wage data, including 

contributions to deferred compensation 

plans, as required by section 209(k) of 

the Act. The average amounts of wages 

calculated from these data were 

$46,119.78 for 2015 and $46,662.59 for 

2016. To determine the national average 

wage index for 2016 at a level consistent 

with the national average wage indexing 

series for 1951 through 1977 (published 

December 29, 1978, at 43 FR 61016), we 

multiply the 2015 national average wage 

index of $48,098.63 by the percentage 

increase in average wages from 2015 to 

2016 (based on SSA-tabulated wage 

data) as follows. We round the result to 

the nearest cent. 

National Average Wage Index Amount 

Multiplying the national average wage 

index for 2015 ($48,098.63) by the ratio 

of the average wage for 2016 

($46,662.59) to that for 2015 

($46,119.78) produces the 2016 index, 

$48,664.73. The national average wage 

index for calendar year 2016 is about 

1.18 percent higher than the 2015 index. 

Program Amounts That Change Based 

on the National Average Wage Index 

Under the Act, the following amounts 

change with annual changes in the 

national average wage index: (1) The 

OASDI contribution and benefit base; 

(2) the exempt amounts under the 

retirement earnings test; (3) the dollar 

amounts, or bend points, in the PIA 

formula; (4) the bend points in the 

maximum family benefit formula; (5) 

the earnings required to credit a worker 

with a quarter of coverage; (6) the oldlaw contribution and benefit base (as 

determined under section 230 of the Act 

as in effect before the 1977 

amendments); (7) the substantial gainful 

activity (SGA) amount applicable to 

statutorily blind individuals; and (8) the 

coverage threshold for election officials 

and election workers. Additionally, 

under section 3121(x) of the Internal 

Revenue Code, the domestic employee 

coverage threshold is based on changes 

in the national average wage index. 

Two amounts also increase under 

regulatory requirements—the SGA 

amount applicable to non-blind 

disabled persons, and the monthly 

earnings threshold that establishes a 

month as part of a trial work period for 

disabled beneficiaries. 

OASDI Contribution and Benefit Base 

General 

The OASDI contribution and benefit 

base is $128,700 for remuneration paid 

in 2018 and self-employment income 

earned in taxable years beginning in 

2018. The OASDI contribution and 

benefit base serves as the maximum 

annual earnings on which OASDI taxes 

are paid. It is also the maximum annual 

earnings used in determining a person’s 

OASDI benefits. 

Computation 

Section 230(b) of the Act provides the 

formula used to determine the OASDI 

contribution and benefit base. Under the 

formula, the base for 2018 is the larger 

of: (1) The 1994 base of $60,600 

multiplied by the ratio of the national 

average wage index for 2016 to that for 


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1992; or (2) the current base ($127,200). 

If the resulting amount is not a multiple 

of $300, we round it to the nearest 

multiple of $300. 

OASDI Contribution and Benefit Base 

Amount 

Multiplying the 1994 OASDI 

contribution and benefit base ($60,600) 

by the ratio of the national average wage 

index for 2016 ($48,664.73 as 

determined above) to that for 1992 

($22,935.42) produces $128,582.02. We 

round this amount to $128,700. Because 

$128,700 exceeds the current base 

amount of $127,200, the OASDI 

contribution and benefit base is 

$128,700 for 2018. 

Retirement Earnings Test Exempt 

Amounts 

General 

We withhold Social Security benefits 

when a beneficiary under the NRA has 

earnings over the applicable retirement 

earnings test exempt amount. The NRA 

is the age when retirement benefits 

(before rounding) are equal to the PIA. 

The NRA is age 66 for those born in 

1943–54, and it gradually increases to 

age 67 for those born in 1960 or later. 

A higher exempt amount applies in the 

year in which a person attains NRA, but 

only for earnings in months before such 

attainment. A lower exempt amount 

applies at all other ages below NRA. 

Section 203(f)(8)(B) of the Act provides 

formulas for determining the monthly 

exempt amounts. The annual exempt 

amounts are exactly 12 times the 

monthly amounts. 

For beneficiaries who attain NRA in 

the year, we withhold $1 in benefits for 

every $3 of earnings over the annual 

exempt amount for months before NRA. 

For all other beneficiaries under NRA, 

we withhold $1 in benefits for every $2 

of earnings over the annual exempt 

amount. 

Computation 

Under the formula that applies to 

beneficiaries attaining NRA after 2018, 

the lower monthly exempt amount for 

2018 is the larger of: (1) The 1994 

monthly exempt amount multiplied by 

the ratio of the national average wage 

index for 2016 to that for 1992; or (2) the 

2017 monthly exempt amount ($1,410). 

If the resulting amount is not a multiple 

of $10, we round it to the nearest 

multiple of $10. 

Under the formula that applies to 

beneficiaries attaining NRA in 2018, the 

higher monthly exempt amount for 2018 

is the larger of: (1) The 2002 monthly 

exempt amount multiplied by the ratio 

of the national average wage index for 

2016 to that for 2000; or (2) the 2017 

monthly exempt amount ($3,740). If the 

resulting amount is not a multiple of 

$10, we round it to the nearest multiple 

of $10. 

Lower Exempt Amount 

Multiplying the 1994 retirement 

earnings test monthly exempt amount of 

$670 by the ratio of the national average 

wage index for 2016 ($48,664.73) to that 

for 1992 ($22,935.42) produces 

$1,421.62. We round this to $1,420. 

Because $1,420 exceeds the current 

exempt amount of $1,410, the lower 

retirement earnings test monthly exempt 

amount is $1,420 for 2018. The lower 

annual exempt amount is $17,040 under 

the retirement earnings test. 

Higher Exempt Amount 

Multiplying the 2002 retirement 

earnings test monthly exempt amount of 

$2,500 by the ratio of the national 

average wage index for 2016 

($48,664.73) to that for 2000 

($32,154.82) produces $3,783.63. We 

round this to $3,780. Because $3,780 

exceeds the current exempt amount of 

$3,740, the higher retirement earnings 

test monthly exempt amount is $3,780 

for 2018. The higher annual exempt 

amount is $45,360 under the retirement 

earnings test. 

Primary Insurance Amount Formula 

General 

The Social Security Amendments of 

1977 provided a method for computing 

benefits that generally applies when a 

worker first becomes eligible for benefits 

after 1978. This method uses the 

worker’s average indexed monthly 

earnings (AIME) to compute the PIA. 

We adjust the formula each year to 

reflect changes in general wage levels, 

as measured by the national average 

wage index. 

We also adjust, or index, a worker’s 

earnings to reflect the change in the 

general wage levels that occurred during 

the worker’s years of employment. Such 

indexing ensures that a worker’s future 

benefit level will reflect the general rise 

in the standard of living that will occur 

during his or her working lifetime. To 

compute the AIME, we first determine 

the required number of years of 

earnings. We then select the number of 

years with the highest indexed earnings, 

add the indexed earnings for those 

years, and divide the total amount by 

the total number of months in those 

years. We then round the resulting 

average amount down to the next lower 

dollar amount. The result is the AIME. 

Computing the PIA 

The PIA is the sum of three separate 

percentages of portions of the AIME. In 

1979 (the first year the formula was in 

effect), these portions were the first 

$180, the amount between $180 and 

$1,085, and the amount over $1,085. We 

call the dollar amounts in the formula 

governing the portions of the AIME the 

‘‘bend points’’ of the formula. Therefore, 

the bend points for 1979 were $180 and 

$1,085. 

To obtain the bend points for 2018, 

we multiply each of the 1979 bendpoint amounts by the ratio of the 

national average wage index for 2016 to 

that average for 1977. We then round 

these results to the nearest dollar. 

Multiplying the 1979 amounts of $180 

and $1,085 by the ratio of the national 

average wage index for 2016 

($48,664.73) to that for 1977 ($9,779.44) 

produces the amounts of $895.72 and 

$5,399.21. We round these to $896 and 

$5,399. Therefore, the portions of the 

AIME to be used in 2018 are the first 

$896, the amount between $896 and 

$5,399, and the amount over $5,399. 

Therefore, for individuals who first 

become eligible for old-age insurance 

benefits or disability insurance benefits 

in 2018, or who die in 2018 before 

becoming eligible for benefits, their PIA 

will be the sum of: 

(a) 90 percent of the first $896 of their 

AIME, plus 

(b) 32 percent of their AIME over $896 

and through $5,399, plus 

(c) 15 percent of their AIME over 

$5,399. 

We round this amount to the next 

lower multiple of $0.10 if it is not 

already a multiple of $0.10. This 

formula and the rounding adjustment 

are stated in section 215(a) of the Act. 

Maximum Benefits Payable to a Family 

General 

The 1977 amendments continued the 

policy of limiting the total monthly 

benefits that a worker’s family may 

receive based on the worker’s PIA. 

Those amendments also continued the 

relationship between maximum family 

benefits and PIAs but changed the 

method of computing the maximum 

benefits that may be paid to a worker’s 

family. The Social Security Disability 

Amendments of 1980 (Pub. L. 96–265) 

established a formula for computing the 

maximum benefits payable to the family 

of a disabled worker. This formula 

applies to the family benefits of workers 

who first become entitled to disability 

insurance benefits after June 30, 1980, 

and who first become eligible for these 

benefits after 1978. For disabled workers 

initially entitled to disability benefits 


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before July 1980 or whose disability 

began before 1979, we compute the 

family maximum payable the same as 

the old-age and survivor family 

maximum. 

Computing the Old-Age and Survivor 

Family Maximum 

The formula used to compute the 

family maximum is similar to that used 

to compute the PIA. It involves 

computing the sum of four separate 

percentages of portions of the worker’s 

PIA. In 1979, these portions were the 

first $230, the amount between $230 

and $332, the amount between $332 and 

$433, and the amount over $433. We 

refer to such dollar amounts in the 

formula as the ‘‘bend points’’ of the 

family-maximum formula. 

To obtain the bend points for 2018, 

we multiply each of the 1979 bendpoint amounts by the ratio of the 

national average wage index for 2016 to 

that average for 1977. Then we round 

this amount to the nearest dollar. 

Multiplying the amounts of $230, $332, 

and $433 by the ratio of the national 

average wage index for 2016 

($48,664.73) to that for 1977 ($9,779.44) 

produces the amounts of $1,144.53, 

$1,652.11, and $2,154.71. We round 

these amounts to $1,145, $1,652, and 

$2,155. Therefore, the portions of the 

PIAs to be used in 2018 are the first 

$1,145, the amount between $1,145 and 

$1,652, the amount between $1,652 and 

$2,155, and the amount over $2,155. 

Thus, for the family of a worker who 

becomes age 62 or dies in 2018 before 

age 62, we will compute the total 

benefits payable to them so that it does 

not exceed: 

(a) 150 percent of the first $1,145 of 

the worker’s PIA, plus 

(b) 272 percent of the worker’s PIA 

over $1,145 through $1,652, plus 

(c) 134 percent of the worker’s PIA 

over $1,652 through $2,155, plus 

(d) 175 percent of the worker’s PIA 

over $2,155. 

We then round this amount to the 

next lower multiple of $0.10 if it is not 

already a multiple of $0.10. This 

formula and the rounding adjustment 

are stated in section 203(a) of the Act. 

Quarter of Coverage Amount 

General 

The earnings required for a quarter of 

coverage in 2018 is $1,320. A quarter of 

coverage is the basic unit for 

determining if a worker is insured under 

the Social Security program. For years 

before 1978, we generally credited an 

individual with a quarter of coverage for 

each quarter in which wages of $50 or 

more were paid, or with 4 quarters of 

coverage for every taxable year in which 

$400 or more of self-employment 

income was earned. Beginning in 1978, 

employers generally report wages yearly 

instead of quarterly. With the change to 

yearly reporting, section 352(b) of the 

Social Security Amendments of 1977 

amended section 213(d) of the Act to 

provide that a quarter of coverage would 

be credited for each $250 of an 

individual’s total wages and selfemployment income for calendar year 

1978, up to a maximum of 4 quarters of 

coverage for the year. The amendment 

also provided a formula for years after 

1978. 

Computation 

Under the prescribed formula, the 

quarter of coverage amount for 2018 is 

the larger of: (1) The 1978 amount of 

$250 multiplied by the ratio of the 

national average wage index for 2016 to 

that for 1976; or (2) the current amount 

of $1,300. Section 213(d) provides that 

if the resulting amount is not a multiple 

of $10, we round it to the nearest 

multiple of $10. 

Quarter of Coverage Amount 

Multiplying the 1978 quarter of 

coverage amount ($250) by the ratio of 

the national average wage index for 

2016 ($48,664.73) to that for 1976 

($9,226.48) produces $1,318.62. We 

then round this amount to $1,320. 

Because $1,320 exceeds the current 

amount of $1,300, the quarter of 

coverage amount is $1,320 for 2018. 

Old-Law Contribution and Benefit Base 

General 

The old-law contribution and benefit 

base for 2018 is $95,400. This base 

would have been effective under the Act 

without the enactment of the 1977 

amendments. 

The old-law contribution and benefit 

base is used by: 

(a) The Railroad Retirement program 

to determine certain tax liabilities and 

tier II benefits payable under that 

program to supplement the tier I 

payments that correspond to basic 

Social Security benefits, 

(b) the Pension Benefit Guaranty 

Corporation to determine the maximum 

amount of pension guaranteed under the 

Employee Retirement Income Security 

Act (section 230(d) of the Act), 

(c) Social Security to determine a year 

of coverage in computing the special 

minimum benefit, as described earlier, 

and 

(d) Social Security to determine a year 

of coverage (acquired whenever 

earnings equal or exceed 25 percent of 

the old-law base for this purpose only) 

in computing benefits for persons who 

are also eligible to receive pensions 

based on employment not covered 

under section 210 of the Act. 

Computation 

The old-law contribution and benefit 

base is the larger of: (1) The 1994 oldlaw base ($45,000) multiplied by the 

ratio of the national average wage index 

for 2016 to that for 1992; or (2) the 

current old-law base ($94,500). If the 

resulting amount is not a multiple of 

$300, we round it to the nearest 

multiple of $300. 

Old-Law Contribution and Benefit Base 

Amount 

Multiplying the 1994 old-law 

contribution and benefit base ($45,000) 

by the ratio of the national average wage 

index for 2016 ($48,664.73) to that for 

1992 ($22,935.42) produces $95,481.70. 

We round this amount to $95,400. 

Because $95,400 exceeds the current 

amount of $94,500, the old-law 

contribution and benefit base is $95,400 

for 2018. 

Substantial Gainful Activity Amounts 

General 

A finding of disability under titles II 

and XVI of the Act requires that a 

person, except for a title XVI disabled 

child, be unable to engage in SGA. A 

person who is earning more than a 

certain monthly amount is ordinarily 

considered to be engaging in SGA. The 

monthly earnings considered as SGA 

depends on the nature of a person’s 

disability. Section 223(d)(4)(A) of the 

Act specifies the SGA amount for 

statutorily blind individuals under title 

II while our regulations (20 CFR 

404.1574 and 416.974) specify the SGA 

amount for non-blind individuals. 

Computation 

The monthly SGA amount for 

statutorily blind individuals under title 

II for 2018 is the larger of: (1) The 

amount for 1994 multiplied by the ratio 

of the national average wage index for 

2016 to that for 1992; or (2) the amount 

for 2017. The monthly SGA amount for 

non-blind disabled individuals for 2018 

is the larger of: (1) The amount for 2000 

multiplied by the ratio of the national 

average wage index for 2016 to that for 

1998; or (2) the amount for 2017. In 

either case, if the resulting amount is 

not a multiple of $10, we round it to the 

nearest multiple of $10. 

SGA Amount for Statutorily Blind 

Individuals 

Multiplying the 1994 monthly SGA 

amount for statutorily blind individuals 

($930) by the ratio of the national 


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50214 Federal Register / Vol. 82, No. 208 / Monday, October 30, 2017 / Notices 

average wage index for 2016 

($48,664.73) to that for 1992 

($22,935.42) produces $1,973.29. We 

then round this amount to $1,970. 

Because $1,970 exceeds the current 

amount of $1,950, the monthly SGA 

amount for statutorily blind individuals 

is $1,970 for 2018. 

SGA Amount for Non-Blind Disabled 

Individuals 

Multiplying the 2000 monthly SGA 

amount for non-blind individuals ($700) 

by the ratio of the national average wage 

index for 2016 ($48,664.73) to that for 

1998 ($28,861.44) produces $1,180.31. 

We then round this amount to $1,180. 

Because $1,180 exceeds the current 

amount of $1,170, the monthly SGA 

amount for non-blind disabled 

individuals is $1,180 for 2018. 

Trial Work Period Earnings Threshold 

General 

During a trial work period of 9 

months in a rolling 60-month period, a 

beneficiary receiving Social Security 

disability benefits may test his or her 

ability to work and still receive monthly 

benefit payments. To be considered a 

trial work period month, earnings must 

be over a certain level. In 2018, any 

month in which earnings exceed $850 is 

considered a month of services for an 

individual’s trial work period. 

Computation 

The method used to determine the 

new amount is set forth in our 

regulations at 20 CFR 404.1592(b). 

Monthly earnings in 2018, used to 

determine whether a month is part of a 

trial work period, is the larger of: (1) 

The amount for 2001 ($530) multiplied 

by the ratio of the national average wage 

index for 2016 to that for 1999; or (2) the 

amount for 2017. If the amount so 

calculated is not a multiple of $10, we 

round it to the nearest multiple of $10. 

Trial Work Period Earnings Threshold 

Amount 

Multiplying the 2001 monthly 

earnings threshold ($530) by the ratio of 

the national average wage index for 

2016 ($48,664.73) to that for 1999 

($30,469.84) produces $846.49. We then 

round this amount to $850. Because 

$850 exceeds the current amount of 

$840, the monthly earnings threshold is 

$850 for 2018. 

Domestic Employee Coverage 

Threshold 

General 

The minimum amount a domestic 

worker must earn so that such earnings 

are covered under Social Security or 

Medicare is the domestic employee 

coverage threshold. For 2018, this 

threshold is $2,100. Section 3121(x) of 

the Internal Revenue Code provides the 

formula for increasing the threshold. 

Computation 

Under the formula, the domestic 

employee coverage threshold for 2018 is 

equal to the 1995 amount of $1,000 

multiplied by the ratio of the national 

average wage index for 2016 to that for 

1993. If the resulting amount is not a 

multiple of $100, we round it to the next 

lower multiple of $100. 

Domestic Employee Coverage Threshold 

Amount 

Multiplying the 1995 domestic 

employee coverage threshold ($1,000) 

by the ratio of the national average wage 

index for 2016 ($48,664.73) to that for 

1993 ($23,132.67) produces $2,103.72. 

We then round this amount to $2,100. 

Therefore, the domestic employee 

coverage threshold amount is $2,100 for 

2018. 

Election Official and Election Worker 

Coverage Threshold 

General 

The minimum amount an election 

official and election worker must earn 

so the earnings are covered under Social 

Security or Medicare is the election 

official and election worker coverage 

threshold. For 2018, this threshold is 

$1,800. Section 218(c)(8)(B) of the Act 

provides the formula for increasing the 

threshold. 

Computation 

Under the formula, the election 

official and election worker coverage 

threshold for 2018 is equal to the 1999 

amount of $1,000 multiplied by the ratio 

of the national average wage index for 

2016 to that for 1997. If the amount we 

determine is not a multiple of $100, it 

we round it to the nearest multiple of 

$100. 

Election Official and Election Worker 

Coverage Threshold Amount 

Multiplying the 1999 coverage 

threshold amount ($1,000) by the ratio 

of the national average wage index for 

2016 ($48,664.73) to that for 1997 

($27,426.00) produces $1,774.40. We 

then round this amount to $1,800. 

Therefore, the election official and 

election worker coverage threshold 

amount is $1,800 for 2018. 

(Catalog of Federal Domestic Assistance: 

Program Nos. 96.001 Social SecurityDisability Insurance; 96.002 Social SecurityRetirement Insurance; 96.004 Social SecuritySurvivors Insurance; 96.006 Supplemental 

Security Income) 

Nancy A. Berryhill, 

Acting Commissioner of Social Security. 

[FR Doc. 2017–23522 Filed 10–27–17; 8:45 am] 

BILLING CODE 4191–02–P 

SOCIAL SECURITY ADMINISTRATION 

[Docket No. SSA–2017–0032] 

Social Security Disability Program 

Demonstration Project: Promoting 

Opportunity Demonstration (POD) 

AGENCY: Social Security Administration. 

ACTION: Notice. 

SUMMARY: We are announcing a 

demonstration project for the Social 

Security disability program under title II 

of the Social Security Act (Act). Under 

this project, we will modify program 

rules applied to beneficiaries who work 

and receive title II disability benefits. 

We are required to conduct the 

Promoting Opportunity Demonstration 

(POD), in compliance with section 823 

of the Bipartisan Budget Act (BBA) of 

2015. 

In this project, we will test simplified 

work incentives and use a benefit offset 

based on earnings as an alternative to 

rules we currently apply to title II 

disability beneficiaries who work. 

Under the benefit offset, we will reduce 

title II disability benefits by $1 for every 

$2 that a beneficiary earns above a 

certain threshold. 

We will select beneficiaries and offer 

them the opportunity to volunteer for 

the project. When we make the 

selection, we will include beneficiaries 

who receive title II disability benefits 

only as well as beneficiaries who 

receive both title II disability benefits 

and Supplemental Security Income 

(SSI) based on disability or blindness 

under title XVI of the Act. We are 

modifying rules that apply to the title II 

program and the Ticket to Work 

program under title XI. We will 

continue to apply the usual SSI program 

rules for participants who receive SSI 

payments in addition to title II disability 

benefits. 

DATES: We plan to begin this project in 

November 2017 and end it in June 2021. 

FOR FURTHER INFORMATION CONTACT: 

Jeffrey Hemmeter, Office of Retirement 

and Disability Policy, Social Security 

Administration, 6401 Security 

Boulevard, Baltimore, MD 21235, (410) 

597–1815. 

SUPPLEMENTARY INFORMATION: 


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