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