Social Security changes in the U.S. are a regular occurrence, and 2024 is no different. As of September, several key updates are set to take effect, including modifications to the Supplemental Security Income (SSI) program. These adjustments aim to improve benefits and expand access for millions of Americans, particularly seniors, disabled individuals, and low-income families. Let’s break down the most important Social Security Rules changes, what they mean for recipients, and the pros and cons of these new rules.
New Social Security Rules in September 2024
The Social Security changes in September 2024 represent a concerted effort to make the system more equitable and accessible, particularly for low-income individuals and families. While these updates offer substantial benefits, particularly in terms of expanding SSI eligibility and reducing administrative burdens, they also introduce some complexities. For current and future beneficiaries, it’s important to stay informed about how these changes may impact eligibility and benefit calculations.
| Changes | Details | Impact |
|---|---|---|
| Public Assistance Household Definition | Expands to include households with any member receiving SNAP or other means-tested assistance. | Increased eligibility for 109,000 new recipients and higher payments for 277,000 current SSI beneficiaries. |
| In-Kind Support and Maintenance (ISM) Changes | Food no longer counted as income for SSI calculations. | Simplifies eligibility and increases benefit stability for many recipients. |
| Rental Subsidy Policy | Nationwide expansion of the rental subsidy exception (previously in only 7 states). | Higher payments for about 41,000 SSI recipients and expanded eligibility for 14,000 more. |
Overview of the New Social Security Rules Changes
1. Public Assistance Household Redefinition
One of the most significant changes is the redefinition of a “public assistance household.” Previously, all household members needed to receive public assistance for the household to qualify. Under the new rule, starting September 30, 2024, households with at least one SSI recipient and one other person receiving SNAP or other means-tested payments (such as TANF or AFDC) will qualify.
Pros:
- This update expands access to SSI for more low-income families. According to the Social Security Administration (SSA), this change will benefit approximately 109,000 new recipients, while 277,000 current beneficiaries will see increased payments.
Cons:
- Some households might still struggle with eligibility nuances, and confusion may arise regarding the reporting process, although SSA promises simplifications.
2. Exclusion of Food from ISM Calculations
SSI benefits are determined based on several factors, including what is known as “In-Kind Support and Maintenance” (ISM). Before September 2024, any food assistance received by an individual, such as groceries paid by a relative or meals provided by a community service, could reduce the SSI payment. From September onwards, food will no longer count as income when calculating SSI eligibility or benefit amounts.
Pros:
- This simplification means beneficiaries won’t be penalized for receiving food help, resulting in more stable benefits. It is expected to reduce the burden of reporting requirements and administrative errors.
Cons:
- The rule still considers shelter-related ISM (like rent or utilities), which may complicate benefit calculations for some recipients.
3. Rental Subsidy Policy Update
The new rental subsidy policy is another significant improvement. Until now, the exception allowing beneficiaries to rent at a discounted rate without affecting their SSI eligibility or payment amounts was only available in seven states. Starting September 2024, this exception will be available nationwide.
Pros:
- The policy change will increase payments by an average of $132 per month for around 41,000 people and open eligibility for 14,000 new beneficiaries annually. This is particularly beneficial for individuals living in subsidized housing or with family members who offer discounted rent.
Cons:
- The complexity of the rental subsidy calculation may still result in payment reductions for some, as the SSA uses various factors, including household size and income sources, to determine the benefit amounts.
4. Cost-of-Living Adjustment (COLA)
One widely discussed Social Security change in 2024 is the Cost-of-Living Adjustment (COLA), which will increase by 3.2%, reflecting inflation rates. This boost will raise the average monthly benefit for retired workers from $1,848 to $1,907. The maximum benefit for individuals retiring at full retirement age will rise to $3,822 per month.
Pros:
- A COLA increase provides crucial support for retirees in the face of rising living costs, especially in areas like healthcare and housing.
Cons:
- However, this COLA increase is significantly lower than the 8.7% bump in 2023, which might feel insufficient for some, given ongoing inflation in certain sectors, like housing and healthcare.
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Earnings Limit Increase
For recipients who work while collecting Social Security benefits, the earnings limit will increase to $22,320 for those under full retirement age in 2024. For every $2 earned over this threshold, $1 is deducted from their Social Security benefits until they reach full retirement age. After this age, there is no limit on earnings.
Higher Maximum Taxable Earnings
In 2024, employees will pay Social Security taxes on earnings up to $168,600, up from $160,200 in 2023. The 6.2% tax rate remains unchanged.
Frequently Asked Questions (FAQs)
What is the impact of removing food from ISM calculations?
Starting September 2024, food will no longer be considered unearned income when determining SSI eligibility. This change should increase benefit amounts for many recipients and reduce reporting burdens.
Will the rental subsidy changes apply to all SSI recipients?
Yes, the rental subsidy policy update will now apply nationwide, expanding a policy previously limited to just seven states. This should benefit recipients who rent at below-market rates.
How does the new public assistance household rule affect eligibility?
The new rule expands the definition of a public assistance household to include families receiving benefits like SNAP. This change will allow more people to qualify for SSI benefits and increase payments for some current recipients.
