2005 Cost of Living Adjustments are Available

The hottest news on the street is that the 2005 Cost of Living adjustments are out. These new Federal Benefit Rates become effective with benefits payable 1/1/05. Here are a few highlights:

Title II changes:

In 2005, an individual will use a Trial Work Period (TWP) service month when gross earnings are above $590.00 in a month.

Non-blind Substantial Gainful Activity (SGA) = $830.00 (effective 1/1/05).

Blind Substantial Gainful Activity (SGA)= $1380.00 effective 1/1/05.

Remember when the SSA is assessing SGA, that it is based on earnings after applicable deductions for Impairment Related Work Expenses and Subsidy. If the person has not used the cessation and grace period, then SSA looks at the duration of work in case it was an Unsuccessful Work Attempt. Also, if the cessation hasn't yet occurred, SSA may average earnings over a similar period of work activity if it is to the person's advantage, and the work falls within the same SGA limit. Substantial Gainful Activity is a decision, not just an amount!