SOCIAL SECURITY AND MEDICARE CHANGES FOR 2015 – For active and retired members

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There are a number of changes that go into effect for 2015 regarding Social Security, Social Security Taxes and Medicare.

The maximum earnings on which you pay Social Security taxes in 2015 is $118,500 (up from $117,000 in 2014).  For those members who are in Tiers 2-5 (enrolled after July 1, 2007) this change increases your pensionable limit.  The Social Security tax rate is 6.2% (up to $118,500).  The Medicare tax rate is 1.45% and there is no income maximum, however if your income exceeds $200,000 ($250,000 for married filing jointly) you will pay an additional .9% on your income over that threshold.

For Retirees, The Social Security earnings limit for 2015 increases to $15,720 if you are collecting and are under your Full Retirement Age. The maximum Full Retirement Age  (FRA)benefit in 2015 is $2,663.  The cost-of-living adjustment (COLA) payable in January 2015 is 1.7%.  Remember the COLA for your pension is suspended.

The Medicare standard monthly premium for Part B remains at $104.90.  The higher income premiums also remain the same in 2015 as they were in 2014.  Income levels for Medicare are based on your 2013 income.

In 2015 – retirees who paid more than the standard amount for Medicare Part B – look for an Action Alert  that will remind you to send Medicare payment information in to the Division of pensions for your qualified reimbursement.