2021-10-14

Social Security Announces 5.9 Percent Benefit Increase for 2022

Social Security and Supplemental Security Income (SSI) benefits for approximately 70 million Americans will increase 5.9 percent in 2022, the Social Security Administration announced today.

The 5.9 percent cost-of-living adjustment (COLA) will begin with benefits payable to more than 64 million Social Security beneficiaries in January 2022.  Increased payments to approximately 8 million SSI beneficiaries will begin on December 30, 2021.  (Note: some people receive both Social Security and SSI benefits).  The Social Security Act ties the annual COLA to the increase in the Consumer Price Index as determined by the Department of Labor’s Bureau of Labor Statistics.

Some other adjustments that take effect in January of each year are based on the increase in average wages.  Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $147,000 from $142,800. 

Social Security and SSI beneficiaries are normally notified by mail starting in early December about their new benefit amount.  Most people who receive Social Security payments will be able to view their COLA notice online through their personal my Social Security account.  People may create or access their my Social Security account online at www.socialsecurity.gov/myaccount.    

Information about Medicare changes for 2022, when announced, will be available at www.medicare.gov.  For Social Security beneficiaries receiving Medicare, Social Security will not be able to compute their new benefit amount until after the Medicare premium amounts for 2022 are announced.  Final 2022 benefit amounts will be communicated to beneficiaries in December through the mailed COLA notice and my Social Security’s Message Center.

The Social Security Act provides for how the COLA is calculated.  To read more, please visit www.socialsecurity.gov/cola.

STATEMENT OF U.S. SEN. MARK R. WARNER ON PROPOSED DOL RULE

~ On U.S. Department of Labor’s proposed rule to remove barriers to considering environmental, social, governance factors in plan management ~

WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), a member of the Senate Banking Committee, released the following statement on the Department of Labor’s proposed rule enabling retirement plans governed by the Employee Retirement Income Security Act (ERISA) to consider environmental, social, and governance (ESG) factors in their decision-making:

“I am glad that the Employee Benefits Security Administration has moved to reverse one of the Trump Administration’s efforts to ignore the calamitous effects of climate change, including its associated financial risks, by proposing a rule enabling retirement plans to consider Environmental, Social, and Governance (ESG) considerations in investment decisions. Companies do not operate in a vacuum and investment fiduciaries should have the ability to consider sustainability of the broader community without running afoul of their fiduciary responsibilities to shareholders. With the publication of this proposed rule, the Biden Administration has taken a step towards protecting the long-term financial security of pensioners and workers across the country.

“This proposed rule also highlights the continued importance of the Securities and Exchange Commission (SEC) effort to establish clear ESG disclosure requirements for publicly traded companies. Investors increasingly clamor for consistent ESG reporting because they understand companies that invest in their workers, minimize harmful environmental impacts, and enact strong worker safety measures, also tend to perform better in the long-run.” 

Under the proposed rule, retirement plan administrators will continue to act in the sole interest of the plan’s participants but will now be able to more freely include ESG factors, including in their initial analysis of investment options. Sen. Warner has previously called on Congress to amend the Employee Retirement Income Security Act (ERISA) to require consideration of ESG factors as part of fiduciary duty. While this rule does not require consideration of ESG factors by plan managers, it grants critical flexibility to do so.

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