Fee for Administration of State Supplementary Payments
States are required to pay a fee for Federal administration of State
Supplementary Payments (supplemental to Federal SSI payments). The fee applies to each such State Supplementary payment made by SSA on behalf of the state during a fiscal year. The
law
provides a method to increase the fee for fiscal years after 2002*. The method
sets the fee for the next fiscal year to be the fee for the current fiscal year
increased by the percentage, if any, by which the Consumer Price Index
(CPI) for the month of June in the current year exceeds the CPI for the month of
June in the preceding year. The resulting amount is to be rounded to the nearest
whole cent. The law also allows the Commissioner of Social Security to set a
different fee "appropriate for the State."
Fee for fiscal year 2024
For this determination, the Social Security Administration has interpreted CPI to mean the "Consumer Price
Index For All Urban Consumers" (CPI-U). Based on the increase in the CPI-U from
June 2022 to June 2023, we have determined the fee for fiscal year 2024 to be
$14.78. This amount applies to both optional and mandatory State
Supplementary Payments. Details concerning this determination are shown below.
Determination of Fiscal Year 2024 Administration Fee
CPI-U data
CPI-U data
June 2022 | June 2023 |
---|---|
296.311 | 305.109 |
Percentage increase in CPI-U, from June 2022 to June 2023,
is 2.96917765 percent.
Fee increase for fiscal year 2024
Fee determined for fiscal year 2023 is $14.35.
Fee increase is 2.96917765 percent of $14.35 or $0.42607699.
After rounding, the fee increase is $0.43.
Fee determined for fiscal year 2024 is $14.35 plus $0.43, or $14.78.
Fee increase is 2.96917765 percent of $14.35 or $0.42607699.
After rounding, the fee increase is $0.43.
Fee determined for fiscal year 2024 is $14.35 plus $0.43, or $14.78.
* For 1994 to 2002, the dollar amount was specified in the law.