The 2019 COLA increased SSDI payments by 2.8 percent

In October 2018, the Social Security Administration announced that the 2019 cost of living adjustment (COLA) would be 2.8 percent. This meant that starting with the December 2018 payment (received in January 2019), every person receiving Social Security Disability Insurance (SSDI) saw their monthly benefit amount increase by 2.8 percent. If you were receiving $1,000 per month, your new amount became $1,028.

The 2.8 percent figure was based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) measured from the third quarter of 2017 to the third quarter of 2018. This is the same measure used every year to calculate whether benefits rise, stay flat, or in rare cases, decline. The 2019 COLA was one of the larger adjustments in recent years — 2018 had been 2.0 percent, and 2017 was 2.0 percent as well.

Key Takeaways

  • The 2019 COLA of 2.8 percent took effect with the December 2018 payment, which arrived in January 2019.
  • The increase applied automatically to all SSDI beneficiaries; you did not need to contact Social Security or take any action.
  • Your new benefit amount was based on your prior monthly payment multiplied by 1.028, rounded down to the nearest dollar.
  • The 2019 COLA also affected Supplemental Security Income (SSI) payments and the earnings limit for work incentives.

How the 2.8 percent increase was calculated

Social Security calculates COLA using a specific formula tied to inflation. The agency measures the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for July, August, and September of the prior year, then compares it to the same three months from the year before. If the index rose, beneficiaries receive a COLA. If it stayed flat or fell, there is no increase that year (though benefits never decrease due to COLA).

For 2019, the CPI-W rose enough to produce a 2.8 percent adjustment. Social Security then applied this percentage to each person's Primary Insurance Amount (PIA) — the base benefit amount used to calculate your monthly payment. The result was rounded down to the nearest dollar. So a person with a PIA of $1,200 would receive a new amount of $1,233.60, rounded to $1,233.

This calculation happened automatically in Social Security's systems. You received a notice in the mail showing your old benefit amount, the new amount, and the effective date. If you did not receive a notice, you could contact Social Security to request one.

Who received the 2019 COLA increase

Every person receiving SSDI in December 2018 automatically received the 2.8 percent increase with their January 2019 payment. This included disabled workers, widow(er)s receiving benefits on a deceased worker's record, and adult children receiving benefits based on a parent's disability or retirement. The increase applied regardless of your age, how long you had been receiving benefits, or your work history.

Family members receiving benefits on your record also received the increase. If your spouse or child was receiving a benefit based on your SSDI, their payment rose by 2.8 percent as well. However, family benefits are subject to a family maximum — the total amount all family members can receive combined. If the increase pushed the family total above the maximum, individual payments were reduced proportionally to stay within the cap.

Supplemental Security Income (SSI) recipients also received a 2.8 percent increase to their federal benefit amount in January 2019. SSI uses the same COLA as SSDI, though SSI is a needs-based program and the increase could affect your countable income for purposes of determining continued payment.

What changed with the 2019 earnings limit

The 2019 COLA also affected the Substantial Gainful Activity (SGA) limit — the amount of monthly earnings that can cause Social Security to determine you are no longer disabled. For 2019, the SGA limit was $1,220 per month for non-blind disabled workers. This was an increase from $1,180 in 2018. If you were working and earning more than $1,220 per month, Social Security could find that you were performing substantial gainful activity and review your case.

The Trial Work Period (TWP) and Extended may be able to access Period (EEP) also adjusted with the 2019 COLA. These work incentives allow you to test your ability to work without when ready losing benefits. The specific dollar amounts tied to these programs changed, though the structure remained the same. If you were using work incentives, Social Security would have sent you updated information about the new thresholds.

When the increase appeared in your bank account

The 2019 COLA took effect in December 2018, but you saw the money in January 2019. Social Security pays benefits monthly on a schedule based on your birth date. If you were born between the 1st and 10th of the month, you received payment on the second Wednesday of each month. If born between the 11th and 20th, you received it on the third Wednesday. If born between the 21st and 31st, you received it on the fourth Wednesday.

Your January 2019 payment included the 2.8 percent increase. If you received your benefit by direct deposit, the new amount appeared in your bank account on your regular payment date. If you received a check, it arrived by mail on your regular schedule. There was no delay or special process — the increase was automatic and when ready.

How to verify your 2019 benefit amount

You could check your 2019 benefit amount by creating a my Social Security account at ssa.gov. Once logged in, you could view your payment history, which showed each month's benefit amount going back several years. This let you confirm that the 2.8 percent increase was applied correctly to your specific benefit.

If you did not have an online account, you could call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) to speak with a representative. They could tell you your current benefit amount and explain how the 2019 COLA affected your payment. You could also visit your local Social Security office in person, though calling ahead was usually faster.

If you believed the increase was calculated incorrectly, you could request a detailed breakdown of how your new benefit was determined. Social Security would provide a written explanation showing your prior Primary Insurance Amount, the 2.8 percent calculation, and your new amount.

Frequently Asked Questions

Did I have to do anything to receive the 2019 COLA increase?

No. The increase was automatic. Social Security applied the 2.8 percent adjustment to all SSDI beneficiaries in December 2018, and you received the higher amount starting with your January 2019 payment. You did not need to contact Social Security, submit any forms, or take any action.

What if I was working in 2019 — did the COLA increase affect my benefits?

The COLA increase itself did not affect your benefits based on work. However, the 2019 SGA limit of $1,220 per month meant that if you earned more than that, Social Security could review your case. The COLA increase also affected work incentive thresholds, so if you were using Trial Work Period or Extended may be able to access, your new limits changed in 2019.

Why was the 2019 COLA 2.8 percent and not a different amount?

The percentage is determined by changes in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of 2017 to the third quarter of 2018. Social Security does not choose the amount — it is set by inflation data published by the Bureau of Labor Statistics. The 2.8 percent reflected the actual rise in prices for goods and services during that period.

If I was receiving SSI instead of SSDI, did I get the same 2019 increase?

Yes. SSI uses the same COLA as SSDI, so the federal benefit amount increased by 2.8 percent in January 2019. However, SSI is means-tested, so the increase could affect your countable income and your continued payment amount if you had other income or resources.