The 2019 SSDI payment increase was 2.8 percent

In October 2018, the Social Security Administration announced that SSDI payments would increase by 2.8 percent starting in January 2019. This was the annual cost of living adjustment, or COLA, calculated by Social Security using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the previous year.

The 2.8 percent figure applied to all SSDI beneficiaries receiving payments in January 2019 and beyond. If you were receiving SSDI in December 2018, your January 2019 payment would have been 2.8 percent higher than your December payment, with no action required on your part.

This increase was smaller than the 2018 COLA (2 percent) but larger than the 2017 COLA (0.3 percent). The year-to-year change depends entirely on inflation data, which varies based on economic conditions.

Key Takeaways

  • The 2019 COLA raised SSDI payments by 2.8 percent for all beneficiaries starting in January 2019.
  • Social Security calculates the COLA using inflation data from the third quarter of the prior year, so the 2019 increase was based on 2018 inflation.
  • The increase applied automatically to your payment; you did not need to contact Social Security or take any action.
  • If you were working and earning above the substantial gainful activity limit, the increase did not change your work incentive rules or reporting requirements.

How the 2019 increase was calculated

Social Security uses a specific formula to determine each year's COLA. The agency measures inflation using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), published by the Bureau of Labor Statistics. The COLA is the percentage increase in the CPI-W from the third quarter of one year to the third quarter of the next year.

For the 2019 COLA, Social Security compared the CPI-W from July, August, and September 2017 to the CPI-W from July, August, and September 2018. The result was a 2.8 percent increase. This calculation happened in October 2018, and the new payment amount took effect on the first payment date in January 2019.

The CPI-W measures price changes for food, housing, transportation, medical care, and other goods and services. When prices rise faster, the COLA is larger. When inflation is slower, the COLA is smaller. In some years, when prices fall or inflation is negative, there is no COLA at all.

What your January 2019 payment looked like

Your January 2019 SSDI payment was your December 2018 payment multiplied by 1.028. For example, if you received $1,200 in December 2018, your January 2019 payment would have been approximately $1,234 (1,200 × 1.028 = 1,233.60).

Social Security sent a notice in December 2018 showing your new payment amount and the effective date. If you received your payment by direct deposit, the new amount appeared in your bank account on the payment date in January. If you received a check, the new amount was printed on the check.

The increase applied to your primary SSDI benefit only. If you received any other payments — such as a family member's benefit based on your record — those payments also increased by 2.8 percent.

The 2019 increase and work incentives

The 2.8 percent increase did not change the substantial gainful activity (SGA) limit for 2019. The SGA limit is the amount of monthly earnings that Social Security uses to determine whether you are working at a level that would affect your SSDI status. The 2019 SGA limit was $1,220 per month for non-blind beneficiaries and $2,040 per month for blind beneficiaries.

If you were working in 2019, the payment increase did not change your reporting requirements or the rules about how much you could earn. You still had to report your work activity to Social Security if you were using a work incentive such as the trial work period or extended may be able to access period.

The increase also did not affect the Student Earned Income Exclusion (SEIE), which allows students under 22 to exclude up to $2,130 per month in earnings from SSDI calculations in 2019. Work incentive rules and limits are set separately from the COLA and change on their own schedule.

Comparing 2019 to other years

The 2019 COLA of 2.8 percent was moderate compared to recent history. The 2018 COLA was 2 percent, the 2017 COLA was 0.3 percent, and the 2016 COLA was zero — meaning no increase that year. The 2020 COLA was 1.3 percent, and the 2021 COLA was 1.3 percent as well.

The variation reflects real changes in inflation. When inflation is high, the COLA is higher. When inflation is low or prices fall, the COLA is lower or zero. Social Security has no control over the COLA amount; it is determined by the CPI-W data published by the Bureau of Labor Statistics.

If you want to see what your payment would have been under different COLA rates, you can work backward from your actual 2019 payment. Divide your January 2019 payment by 1.028 to find your December 2018 payment, then multiply by different percentages to see what other years' increases would have meant in dollars.

How to find your 2019 payment records

Your Social Security statement shows your payment history, including the amount you received each month in 2019. You can view this online by creating a my Social Security account at ssa.gov. Log in, select "Benefit Verification Letter" or "Payment History," and you will see a record of all payments received.

If you no longer have access to your 2019 records, you can request a replacement by calling Social Security at 1-800-772-1213 (TTY 1-800-325-0778) or visiting your local Social Security office. Have your Social Security number ready. You can also request a transcript of your earnings record, which shows your work history and the basis for your benefit amount.

If you believe your 2019 payment was incorrect, contact Social Security when ready. Errors in COLA calculations are rare, but they do happen. Social Security can review your payment history and correct any mistakes, usually with back pay if the error was in your favor.

Frequently Asked Questions

Did the 2019 COLA increase affect Supplemental Security Income (SSI)?

No. SSI is a separate program with its own payment rules. SSI recipients received a different COLA amount in 2019, which was also 2.8 percent but applied to the federal SSI payment rate, not individual benefit amounts. Some states that supplement SSI payments may have used different COLA rates.

What if I was not receiving SSDI in January 2019 but started later that year?

Your first payment would have been based on the 2019 payment rate, which already included the 2.8 percent increase. You would not receive the increase again; it was a one-time adjustment that took effect in January 2019 for all beneficiaries.

Can I find out what my payment would have been without the COLA?

Yes. Divide your January 2019 payment by 1.028. The result is what you would have received in January 2019 if there had been no COLA. The difference between the two numbers is the dollar amount of the increase.

Does the 2019 COLA affect my Medicare premiums?

It may. Some SSDI beneficiaries are protected by a "hold harmless" rule that prevents their Medicare Part B premium from rising more than their COLA increase. If your premium would have increased more than 2.8 percent, the hold harmless rule limited your increase to 2.8 percent in 2019.