Federal Benefit Rate
Definition - What does Federal Benefit Rate mean?
The Federal Benefit Rate (FBR), in the context of Social Security, refers to the maximum monthly dollar amount that can be paid by the U.S. Social Security Administration (SSA) to a claimant in disability benefits under the Supplemental Security Income (SSI) program. The Federal Benefit Rate is linked to the U.S. Consumer Price Index (CPI).
Justipedia explains Federal Benefit Rate
The amount that a claimant is entitled to receive under SSI is determined by deducting the claimant’s monthly countable income from the FBR. In the case where a claimant’s countable monthly income exceeds the FBR or if the total value of the assets owned by a claimant exceeds the dollar limit set by the SSA, the claimant becomes ineligible for receiving benefits under the SSI program. The FBR is linked to the U.S. Consumer Price Index (CPI) so that cost of living adjustments are made to the FBR each year when the CPI increases.