CW Update 23-11: Social Security Administration Cost of Living Adjustment-January 1, 2024
CalWORKs Handbook
| Date | References | Clerical | Handbook(s) Revised |
|
12/27/23 |
ACIN I-64-23 | No | N/A |
Background
The Social Security Administration (SSA) has informed the State of California that there will be a Cost of Living Adjustment (COLA) effective December 29, 2023 and payable January 1, 2024.
Changes
Social Security and Social Security Income (SSI) recipients will receive a 3.2 percent COLA effective January 1, 2024. The increase will affect CalWORKs benefits amounts for those applicants and recipients who receive Social Security benefits. A timely and adequate Notice of Action (NOA) is required when CalWORKs benefits are adjusted due to a COLA increase.
New Applicants
The increased Social Security benefit amount must be used for eligibility and budgeting purposes beginning with the month of January 2024 and thereafter. The Social Security amount budgeted for January will be considered reasonably anticipated income for applications received in November and December 2023.
Semi-Annual Reporting
For CalWORKs assistance units (AU) in the final month of the Semi-Annual Reporting (SAR) payment period, the increase in the Social Security income is treated as reasonably anticipated income. The amount of the SSA COLA is "known to the county" and must be acted upon mid-period.
County-Initiated Mid-Period Changes
A county-initiated mid-period action to adjust benefits effective January 1, 2024 must be taken for all cases which Social Security benefits are being used to determine a CalWORKs grant. Since the SSA COLA is effective December 29, 2023 and payable in January 2024, a mid-period county-initiated action must be taken by the end of December 2023 to adjust benefits effective January 1, 2024, for all AUs in which Social Security benefits are used to determine the CalWORKs grant. A timely and adequate notice is required when decreasing grant amounts based on the SSA COLA increase.
Annual Reporting/Child Only Cases
For CalWORKs Annual Reporting/Child Only AUs, the amount of the SSA COLA is considered "known to the county" and must be acted upon mid-period. Since the SSA COLA is effective December 29, 2023 and payable January 2024, mid-period county-initiated action must be taken to adjust benefits effective January 1, 2024 for all cases in which Social Security benefits are used to determine CalWORKs grant amounts. The only families where this action will not be considered "mid-period" are those AR/CO recipients with a December 2023 redetermination (RD). For AR/CO recipents that have SSA income and a December 2023 RD, the COLA amount will be included in budgeting for the upcoming AR/CO period. A timely and adequate notice is required if grant amounts are decreased as a result of the SSA COLA.
For All AUs
If the SSA COLA is not updated timely on a case, the January 2023 SSA payment will need to be updated. Action must be taken to decrease the grant amount the first of the following month after a timely and adequate notice can be provided. January grants will need to be recalculated using the new SSA payment amount, and if the calcuation results in a decrease, an overpayment must be established. SSI payments are exempt in CalWORKs, however, income must still be updated for excluded AU members.
Implementation
The SSA COLA increase is effective January 1, 2024.
Data Systems
On 12/11/2023, the SSA COLA Batch was run to update the SSA COLA amounts in CalSAWS.
Other Programs
The changes in this Update also affect the CalFresh benefit determination.
Supervisors
Supervisors must review this Update with their staff.
Angela Shing, Director
Department of Employment and Benefit Services
Contact Person: Romelia Cuellar, SSA BPIS, 408-755-7540