Social Security Power Point
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Transcript of Social Security Power Point
11
Social Security Benefits America Social Security Benefits America
22
Some Housekeeping Notes
33
• You may wish to do additional research at our website about how Social Security benefits are affected by non-covered pensions:
www.ssocialsecurity.gov/gpo-wep/.
44
55
66
• Frequently Asked Questions about how Social Security benefits are affected by
non-covered pensions are available by clicking on “More” in the left hand column
under Windfall Elimination Provision at www.socialsecurity.gov/gpo-wep/.• 2 calculators to compute how your non-covered
pension will affect your benefit are available at:
www.socialsecurity.gov/retire2/anyPIAWepjs04.htm
77
www.socialsecurity.gov/OACT/anypia.html
Information about 218 agreements and
Coverage can be answered by the State
Social Administrator: Richard Beckstead
88
1935Retirement Insurance
1935Retirement Insurance
History - Social Security’s ProgramsHistory - Social Security’s Programs
1956Disability Insurance
1956Disability Insurance
1939Survivors Insurance
1939Survivors Insurance
99
Other ProgramsOther Programs
1965 Medicare
1965 Medicare
2003 Medicare
Part D
2003 Medicare
Part D
1010
50 million people50 million people
Who Gets Benefits from Social Security?Who Gets Benefits from Social Security?
31.5 million Retired Workers2.9 million Dependents
7.1 million Disabled Workers, 1.8 million Dependents
4.6 millionWidows/ Widowers
1.9 millionChildren of
Deceased Workers
2/20082/2008
1111
Payments to
Beneficiaries
Workers&
Employers
Who Pays for Social Security?Who Pays for Social Security?
1212
Where Does the Money Come From?Where Does the Money Come From?
Payroll Tax 84%
Trust Fund Interest 14%
Taxation of Benefits 2%
Payroll Tax 84%
Trust Fund Interest 14%
Taxation of Benefits 2%
Social Security Trust Fund 2008Social Security Trust Fund 2008
1313
In 2016, Social Security Will Begin PayingMore in Benefits than is Collected in TaxesIn 2016, Social Security Will Begin PayingMore in Benefits than is Collected in Taxes
1313
1414
In 2016, Social Security Will Begin PayingMore in Benefits than is Collected in TaxesIn 2016, Social Security Will Begin PayingMore in Benefits than is Collected in Taxes
1414
At exhaustion in 2036,only about 78% of
benefits could be paid.
At exhaustion in 2036,only about 78% of
benefits could be paid.
1515
Social Security Cost-of-Living AdjustmentsSocial Security Cost-of-Living Adjustments
Effective Date Amount
June 1975 8%June 1976 6.4%June 1977 5.9%June 1978 6.5%June 1979 9.9%June 1980 14.3%June 1981 11.2%June 1982 7.4%Dec 1983 3.5%Dec 1984 3.5%Dec 1985 3.1%Dec 1986 1.3%Dec 1987 4.2%Dec 1988 4%Dec 1989 4.7%Dec 1990 5.4%Dec 1991 3.7%
Effective Date Amount
June 1975 8%June 1976 6.4%June 1977 5.9%June 1978 6.5%June 1979 9.9%June 1980 14.3%June 1981 11.2%June 1982 7.4%Dec 1983 3.5%Dec 1984 3.5%Dec 1985 3.1%Dec 1986 1.3%Dec 1987 4.2%Dec 1988 4%Dec 1989 4.7%Dec 1990 5.4%Dec 1991 3.7%
Effective Date Amount
Dec 1992 3%Dec 1993 2.6%Dec 1994 2.8%Dec 1995 2.6%Dec 1996 2.9%Dec 1997 2.1%Dec 1998 1.3%Dec 1999 2.5%Dec 2000 3.5%Dec 2001 2.6%Dec 2002 1.4%Dec 2003 2.1%Dec 2004 2.7%Dec 2005 4.1%Dec 2006 3.3%Dec 2007 2.3%
Dec 2008 5.8%
Effective Date Amount
Dec 1992 3%Dec 1993 2.6%Dec 1994 2.8%Dec 1995 2.6%Dec 1996 2.9%Dec 1997 2.1%Dec 1998 1.3%Dec 1999 2.5%Dec 2000 3.5%Dec 2001 2.6%Dec 2002 1.4%Dec 2003 2.1%Dec 2004 2.7%Dec 2005 4.1%Dec 2006 3.3%Dec 2007 2.3%
Dec 2008 5.8%
1616
Example: Worker with averagepre-retirement income of $30,000
(Retiring at age 66 in 2009)
1st Year of Retirement
Pension $13,000/ 50%
Social Security $13,000/50%
Inflation 3% per year
Example: Worker with averagepre-retirement income of $30,000
(Retiring at age 66 in 2009)
1st Year of Retirement
Pension $13,000/ 50%
Social Security $13,000/50%
Inflation 3% per year
Value of Inflation ProtectionValue of Inflation Protection
1717
Value of Inflation ProtectionValue of Inflation Protection
example continued:
Worker with averagepre-retirement income of $30,000
example continued:
Worker with averagepre-retirement income of $30,000
5th Year of RetirementPension $13,000/47%
Social Security $14,632/53%
10th Year of RetirementPension $13,000/43%
Social Security $16,962/57%
20th Year of RetirementPension $13,000/36%
Social Security $22,796/64%
5th Year of RetirementPension $13,000/47%
Social Security $14,632/53%
10th Year of RetirementPension $13,000/43%
Social Security $16,962/57%
20th Year of RetirementPension $13,000/36%
Social Security $22,796/64%
1818
Life Expectancy for Those Age 65 TodayLife Expectancy for Those Age 65 Today
Men Women
U.S. Population 81 85
White 80 84
African Americans 79 83
Hispanic 85 88
Asian 84 88
American Indians 84 88
Men Women
U.S. Population 81 85
White 80 84
African Americans 79 83
Hispanic 85 88
Asian 84 88
American Indians 84 88
1919
You Need to Work to Earn Social Security CreditsYou Need to Work to Earn Social Security Credits
Each $1,090 in earnings gives you one credit
You can earn a maximum of 4 credits per year
Example: To earn 4 credits in 2009, you must earn at least $4,360. Earning 40 credits throughout your working life will qualify you for a retirement benefit.
Each $1,090 in earnings gives you one credit
You can earn a maximum of 4 credits per year
Example: To earn 4 credits in 2009, you must earn at least $4,360. Earning 40 credits throughout your working life will qualify you for a retirement benefit.
2020
Your Age When You Retire Affects Your BenefitsYour Age When You Retire Affects Your Benefits
If You’re a Worker and Retire
At age 62, you get a lower monthly payment permanently At your full retirement age, you get your full benefit You get an even higher monthly payment if you work past your full retirement age
2121
In Addition to the Retiree,Who Else Can Get Benefits?In Addition to the Retiree,
Who Else Can Get Benefits?
Your Spouse
At age 62 At any age if caring for child under 16 or disabled Divorced spouses may qualify
Your Child
Not married under 18 (under 19 if still in high school) Not married and disabled before age 22
2222
Full Retirement AgeFull Retirement Age
Year of Birth Full Retirement Age
1937 or earlier 65
1938 65 & 2 months
1939 65 & 4 months
1940 65 & 6 months
1941 65 & 8 months
1942 65 & 10 months
1943 – 1954 66
1955 66 & 2 months
1956 66 & 4 months
1957 66 & 6 months
1958 66 & 8 months
1959 66 & 10 months
1960 or later 67
Year of Birth Full Retirement Age
1937 or earlier 65
1938 65 & 2 months
1939 65 & 4 months
1940 65 & 6 months
1941 65 & 8 months
1942 65 & 10 months
1943 – 1954 66
1955 66 & 2 months
1956 66 & 4 months
1957 66 & 6 months
1958 66 & 8 months
1959 66 & 10 months
1960 or later 67
2323
How Social Security Determines Your BenefitHow Social Security Determines Your Benefit
Social Security benefits are based on earnings
Step 1 Your wages are adjusted for changes in wage levels
Step 2 Find the monthly average of your 35 highest earnings years
Step 3 Result is “average indexed monthly earnings”
2424
If your average monthly earnings are = $5,200Then your monthly benefit would be = $1974
Average Monthly Earnings $5,200
90% of First $744 = $670
32% of Earnings over $744 through $4,483 $3,739 = $1,196($4,483-$744=$3,739)
15% of Earnings over $4,483 $717 = $108($5,200-$4,483=$717)
$5,200$1974
If your average monthly earnings are = $5,200Then your monthly benefit would be = $1974
Average Monthly Earnings $5,200
90% of First $744 = $670
32% of Earnings over $744 through $4,483 $3,739 = $1,196($4,483-$744=$3,739)
15% of Earnings over $4,483 $717 = $108($5,200-$4,483=$717)
$5,200$1974
Retirement Benefit Computation ExampleRetirement Benefit Computation Example
2525
What You Can Expect at Full Retirement AgeWhat You Can Expect at Full Retirement Age
% o
f E
arni
ngs
LowEarner
AverageEarner
HighEarner
56%
41%
34%
2626
Two Provisions Affecting Benefits
• WEP – Reduces Your Own Benefit
• GPO – Reduces Any Benefit You Might Be Due on Your Spouse’s Social Security Record • Understanding Why These Laws Were
Enacted Helps Understand How They Work
2727
Points to Remember
• If you have 40 work credits, you will be eligible for a monthly Social Security retirement benefit
• If you have paid Social Security taxes on 30 or more “substantial” years of earnings, your benefit will not be reduced
2828
If any part of your government pensionis based on work not covered by
Social Security, you may be affected bythe Windfall Elimination Provision.
If any part of your government pensionis based on work not covered by
Social Security, you may be affected bythe Windfall Elimination Provision.
Windfall Elimination ProvisionWindfall Elimination Provision
2929
What’s Social About Social Security?
• One goal of Social Security is to raise the standard of income for lower income workers
3030
How Do We Do This?
• A weighted benefit formula
• A lower income worker receives a higher rate of return
3131
If your average monthly earnings are = $5,200Then your monthly benefit would be = $1,974
Average Monthly Earnings $5,200
90% of First $744 = $670
32% of Earnings over $744 through $4,483 $3,739 = $1,196($4,483-$744=$3739)
15% of Earnings over $4,483 $717 = $108($5,200-$4,483=$717)
$5,200$1,974
If your average monthly earnings are = $5,200Then your monthly benefit would be = $1,974
Average Monthly Earnings $5,200
90% of First $744 = $670
32% of Earnings over $744 through $4,483 $3,739 = $1,196($4,483-$744=$3739)
15% of Earnings over $4,483 $717 = $108($5,200-$4,483=$717)
$5,200$1,974
Computing Your Benefit
3232
Function of Weighted Formula
The formula gives proportionately higherbenefits to a worker with a low lifetime earnings.A worker with a substantial period of non-covered work during his lifetime appears to havelower lifetime earnings than he actually does.By adjusting the formula, WEP prevents workerswho receive a public pension based onnoncovered work from receiving an unintended advantage from the formula.
3333
Windfall Elimination Provision (WEP) - 2009Windfall Elimination Provision (WEP) - 2009
Normal Computation WEP Computation
90% of the First $744 40% of the First $744
32% of the Next $3739 32% of the Next $3739
15% of the Remainder 15% of the Remainder
Normal Computation WEP Computation
90% of the First $744 40% of the First $744
32% of the Next $3739 32% of the Next $3739
15% of the Remainder 15% of the Remainder
3434
Windfall Elimination Provision
The modified formula applies to youif you reach 62 after 1985 and first become eligible after 1985 for a monthly pension based in whole or in part on work where you did not paySocial Security taxes.
3535
Exception to the Windfall Elimination ProvisionException to the Windfall Elimination Provision
% of First FactorYears of Coverage in Benefit Formula
30 or more 9029 8528 8027 7526 7025 6524 6023 5522 5021 45
20 or less 40
% of First FactorYears of Coverage in Benefit Formula
30 or more 9029 8528 8027 7526 7025 6524 6023 5522 5021 45
20 or less 40
3636
Year Substantial Earnings
1937-50 $900
1951-54 $900
1955-58 $1,050
1959-65 $1,200
1966-67 $1,650
1968-71 $1,950
1972 $2,250
1973 $2,700
1974 $3,300
3737
1975 $3,525
1976 $3,825
1977 $4,125
1978 $4,425
1979 $4,725
1980 $5,100
1981 $5,550
1982 $6,075
1983 $6,675
1984 $7,050
3838
1985 $7,425
1986 $7,785
1987 $8,175
1988 $8,400
1989 $8,925
1990 $9,525
1991 $9,900
1992 $10,350
1993 $10,725
1994 $11,250
3939
1995 $11,325
1996 $11,625
1997 $12,150
1998 $12,675
1999 $13,425
2000 $14,175
2001 $14,925
2002 $15,750
2003 $16,125
2004 $16,275
4040
2005 $16,725
2006 $17,475
2007 $18,150
2008 $18,975
2009 $19,800
4141
Where to Find the Chart
• Our Electronic Fact Sheet – Windfall Elimination Provision
• www.socialsecurity.gov/pubs/10045.html
4242
Modified Formula
$744 $744
X 90% X 40%
$670 $298
$744 $744
X 90% X 40%
$670 $298
$372$372
4343
Largest Amount of Reduction in 2009
The greatest amount of reduction in the Social
Security check if you are 62 in 2009 will be
$372 per month
4444
WEP Guarantee
The WEP Guarantee limits reductions in the Social Security check to no more than ½ the amount of the non- covered government pension. The guarantee helps government workers who had low earnings on their government job.
4545
Pension Based on Covered and Non-Covered Earnings
• If the non-covered pension is based on both covered and non-covered service, the amount to be used is calculated by prorating the pension to the number of non-covered service months.
• The WEP guarantee amount is compared to the modified formula amount.
• The smaller reduction applies.
4646
Prorating the Pension
Pension amount Multilpied by months of
non-covered work Divided by total months
of work used to compute the pension
https://secure.ssa.gov/apps10/poms.ns
f/subchapterlisthapterlist!openview&res
tirctedcategory=3006
4747
401(k) and WEP
• WEP is applied to the payments received from defined contribution plans (e.g. 401 (k),
403(b), or 457 plans) based on non-covered employment if the plan is the PRIMARY retirement plan.
• If the plan is a secondary plan, WEP applies only if funds contain employer contributions.
• Payments from optional or voluntary savings plan not subject to WEP.
4848
Example
• Jake Oldham, born on 2/10/1947 has been receiving a non-covered pension since 1/04. In 3/09 he filed for Social Security retirement benefits. His gross non-covered pension amount is $2000 based on his work for the government from 1/76 through 12/03 (336 months). After averaging together his highest 35 years of earnings, his Average Indexed Monthly Earnings provides a monthly amount of $1000.
4949
Example Continued
• He has 17 years of “substantial” Social Security earnings.
• After the Average Indexed Monthly Earnings figure is put into the replacement formula, his full benefit amount would be $751.00.
• After using the chart of “substantial” earnings, Jake has 20 or fewer years of substantial earnings, so he will only receive 40% of the first $744 in the formula, not the standard 90%.
5050
Let’s Do The Math
Step 1 744 x .40 = 297.60Step 2 1000 – 744 = 256.00Step 3 256.00 x .32 = 81.92Step 4 297.60 + 81.92 = 379.50Step 5 Round Down to $379.00
751 - 372 379
Greatest Amount of WEP Reduction in 2009 Greatest Amount of WEP Reduction in 2009
5151
Between 20 and 29 Years of Substantial Earnings
Let’s say Jake Oldham has 23 years of “substantial” earnings instead of 17.
Step 1 744 x .55= 409.20 Step 2 1000 – 744 = 256.00 Step 3 256 x .32 = 81.92 Step 4 409.20 + 81.92 = 491.12 Step 5 Round Down to $491.00Because he had 6 more years of “substantial” earnings in this example, he receives $112 per month more eachmonth.
5252
WEP Guarantee
• Figured by comparing the regular Social Security amount and reducing it by half of the non-covered pension
• If this amount is higher than the amount obtained by using the “modified” amount computed in the previous example, the higher amount is paid.
5353
Guarantee Example
• June Fisher’s regular Social Security retirement amount is $540.00
• Her non-covered pension is $900• Under the guarantee, her Social Security
cannot be reduced more than $450.00 (1/2 of her non-covered pension)
• Social Security compares whether the “modified” formula or the “guarantee” provides the higher benefit
5454
Type of Benefits Affected by WEP
• Social Security Retirement
• Social Security Disability
5555
Will WEP Affect Me?
• 1. Is the type of benefit you will be filing for either Social Security retirement or disability benefits?
If Yes, Go to Step 2
If No, WEP does not apply (WEP does
not apply to survivors benefits)
5656
Continued
• 2. Will you first be eligible after 1985 for the Social Security retirement or disability benefit?
If Yes, go to step 3
If No, WEP does not apply (Those eligible for Social Security retirement or disability before 1985 will not be subject to WEP)
5757
Continued
• 3. Will you be entitled to a pension that is based in whole or in part on non-covered employment after 1956?
If Yes, go to Step 4
If No, WEP does not apply (WEP would not apply to pensions based on earnings before 1956)
5858
Continued
4. Using the “substantial” earnings table and your Social Security Statement, count up how many years of “substantial” earnings you have. Do you have 30 or more years?
If Yes, WEP does not apply If No, WEP will apply. Use the chart that
shows what the percentage that will be used will be (e.g. 29 years – 85%, 24 years – 60%, 20 years or less 40%) in your computation of Social Security retirement or disability benefits.
5959
Spouse’s Benefits
6060
Government Pension Offset (GPO)Government Pension Offset (GPO)
If you receive a government pension based on work not covered by Social
Security, your Social Security spouse’s or widow(er)’s benefits may be reduced.
If you receive a government pension based on work not covered by Social
Security, your Social Security spouse’s or widow(er)’s benefits may be reduced.
6161
GPO & Spouse’s Benefits
• Spouses benefits were intended to provide income for spouses who had little or no income.
• If a spouse has worked and is insured for their own Social Security retirement benefit, they receive the difference between their own retirement amount and one-half of the spouse’s amount.
6262
Spouse’s Benefits
• Before 1977, a spouse could have worked in non-covered work for a state, Federal or local government and yet receive a full Social Security spouse’s benefit.
• Effective 12/1/77, an offset was introduced so that government workers entitled to Social Security spouse’s benefits but had their own government pensions had those benefits considered when Social Security computed their spouse’s benefits.
6363
Purpose of GPO
• To limit the level of payment of spouse’s benefits to those who are not completely dependent upon the worker.
• Congress believed that a person who worked long enough to become entitled to a government pension would not be completely dependent on the worker.
6464
Example:$900 of government pension 2/3 = $600Social Security spouse’s benefits = $500No cash benefit payable by Social Security
Example:$900 of government pension 2/3 = $600Social Security spouse’s benefits = $500No cash benefit payable by Social Security
Government Pension Offset (GPO)Government Pension Offset (GPO)
Spouse’s Benefits
2/3 of amount of government pension will be used to reduce the Social Security spouse’s benefits
Spouse’s Benefits
2/3 of amount of government pension will be used to reduce the Social Security spouse’s benefits
6565
Comparison
Diane (No Govt Work) Mary (GPO)Own SSA Benefit $300 Govt Pension $300Spouse Benefit $600 SSA Spouse Ben $600$600 - $300 = $300 $300 pension =$300 Spouse + $300 Own= $300 X .6667= $600 Total $200 Offset $600 - $200 = $400 $300 Govt Pension + $400 SSA Spouse= $700 Total
6666
Exceptions to GPO
• Filed for Social Security benefits prior to April 1, 2004, or retired prior to July 1, 2004, and whose government pension is based on a job where he was paying Social Security taxes on the last day of employment.
• After April 1, 2004 receives a government pension and had been covered under both Social Security and the government system throughout the last 60 months of service.
• Spouse receiving a government pension not based on own work
6767
What Type of Social Security Benefits Are Affected by GPO?
• Spouses
• Widows
• Widowers
GPO Calculator: http://www.socialsecurity.gov/retire2/gpo-calc.htm GPO Calculator: http://www.socialsecurity.gov/retire2/gpo-calc.htm
6868
FAQS About WEP & GPO
• Q: Are dependents affected by WEP?• A: Since dependents benefits are derived from
the worker’s benefit, WEP affects dependents benefits.
Example: If John had 10 years of substantial coverage, his retirement amount would be $751. Since he has less than 20 years, his amount will be $379. His spouse would receive half of $379 not $751.
6969
FAQS Continued
• Q: What is the difference between WEP & GPO?• A: Both affect people with pensions from noncovered
employment. WEP affects the retirement or disability benefits of a person who receives a pension from noncovered work. A modified formula is used. If WEP applies, benefits are lower, but never totally eliminated.
• GPO affects the Social Security spouse’s benefits of a person who receives a pension from noncovered work. The Social Security payment is reduced by 2/3 of the government check. Under GPO, it is possible for the benefit to be totally eliminated.
7070
FAQS Continued
• Q: I have heard that if I am exempt from GPO, I will also be exempt from WEP. Is this correct?
• A: No. GPO applies to Social Security spouses and survivors benefits and WEP applies to the worker’s Social Security retirement benefit.
7171
FAQS Continued
• Q: Are the benefit estimates on my Social Security Statement accurate for government workers?
• A: Since Social Security cannot know if you are eligible for a pension from non-covered earnings, the estimates are not adjusted to consider WEP. Use the WEP calculator to obtain an accurate estimate.
7272
FAQS Continued
• Q: Is my Social Security retirement or disability benefit reduced if my spouse
receives a pension based on work not covered under Social Security?
• A: No, your own retirement or disability check won’t be reduced because of her noncovered pension, but if you receive spouse’s benefits from her benefit record, your spouse’s benefit could be affected.
7373
FAQS Continued
• Q: If I withdraw my contributions from the noncovered pension system, would I still be subject to WEP?
• A: Yes. The withdrawal of contributions would be considered as a lump-sum payment and be pro-rated on a monthly basis. Only if you withdrawn all of your contributions and relinquished all rights to the pension would WEP be eliminated.
7474
FAQS Continued
• Q: If I withdraw my contributions from the noncovered pension system and give up all rights to the pension , can I avoid GPO?
• A: Yes. If you withdraw your contributions and give up all rights to the noncovered pension before you begin receiving payments, you can avoid GPO.
7575
FAQS Continued
• Q: Is my Social Security survivor’s benefit affected if I also receive a pension based on my
deceased spouse’s noncovered work?• A: A pension you receive based on your deceased
spouse’s noncovered work will not affect your Social Security survivor’s benefit. However, if you are entitled to a widow’s or widower’s benefit under Social Security and you are also entitled to a government pension based on your own uncovered earnings, the government pension offset will reduce your Social Security survivors benefit by up to 2/3 of your government pension.
7676
You Can Work & Still Receive BenefitsYou Can Work & Still Receive Benefits
You Can If You Make More,If You Are Make Up To Some Benefits Will
Be Withheld
Under FullRetirement Age $14,160/yr. ($1,180/mo.) $1 for every $2
The Year Full RetirementAge is Reached $37,680/yr. ($3,140/mo.) $1 for every $3
Month of Full Retirement Age and Above No Limit No Limit
You Can If You Make More,If You Are Make Up To Some Benefits Will
Be Withheld
Under FullRetirement Age $14,160/yr. ($1,180/mo.) $1 for every $2
The Year Full RetirementAge is Reached $37,680/yr. ($3,140/mo.) $1 for every $3
Month of Full Retirement Age and Above No Limit No Limit
7777
What Will You Need When Applyingfor Your Social Security Benefits?
What Will You Need When Applyingfor Your Social Security Benefits?
Social Security number for each applicant
Proof of age (birth certificate)
Latest W-2 or self-employment tax return
Earnings estimate
Bank information for direct deposit
Information about marriages/divorces
Information about military or railroad service
Social Security number for each applicant
Proof of age (birth certificate)
Latest W-2 or self-employment tax return
Earnings estimate
Bank information for direct deposit
Information about marriages/divorces
Information about military or railroad service
7878
Who Can Get Survivors Benefits?Who Can Get Survivors Benefits?
Widow or Widower:
Reduced benefits at age 60
If disabled as early as age 50
At any age if caring for child under 16 or disabled
Divorced widows/widowers may qualify
Your Child if:
Not married under age 18 (under 19 if still in high school)
Not married and disabled before age 22
Widow or Widower:
Reduced benefits at age 60
If disabled as early as age 50
At any age if caring for child under 16 or disabled
Divorced widows/widowers may qualify
Your Child if:
Not married under age 18 (under 19 if still in high school)
Not married and disabled before age 22
7979
Parents
Age 62 and was receiving atleast one-half support from deceased worker
Lump Sum Death Payment ($255)
Most spouses or children
Parents
Age 62 and was receiving atleast one-half support from deceased worker
Lump Sum Death Payment ($255)
Most spouses or children
Other Survivors BenefitsOther Survivors Benefits
8080
Social Security’s Disability Definition:Social Security’s Disability Definition:
A medical condition preventing substantial work for at least 12 months, or expected to
result in death. The determination also considers age, education & work experience.
A medical condition preventing substantial work for at least 12 months, or expected to
result in death. The determination also considers age, education & work experience.
8181
Who Can Get Disability Benefits?Who Can Get Disability Benefits?
Worker
Must have paid into Social Security five out of last 10 years
Spouse
At age 62 At any age if caring for child
under 16 or disabled Divorced spouses may qualify
Worker
Must have paid into Social Security five out of last 10 years
Spouse
At age 62 At any age if caring for child
under 16 or disabled Divorced spouses may qualify
8282
Who Can Get Disability Benefits?Who Can Get Disability Benefits?
Child
Not married under age 18 (under 19 if still in high school)
Not married and disabled before age 22
Child
Not married under age 18 (under 19 if still in high school)
Not married and disabled before age 22
8383
65 & older
-or-
Receiving Social Security disability benefits at least 24 months
-or-
Permanent kidney failure
-or-
Amyotrophic Lateral Sclerosis (ALS)
65 & older
-or-
Receiving Social Security disability benefits at least 24 months
-or-
Permanent kidney failure
-or-
Amyotrophic Lateral Sclerosis (ALS)
Who Can Get Medicare?Who Can Get Medicare?
8484
When Can I Sign Up for Medicare?When Can I Sign Up for Medicare?
Medicare Enrollment Periods: Initial - at age 65
Special - if still working
General - January-March
8585
Medicare CoverageMedicare Coverage
Part A Hospital Insurance Covers most inpatient hospital expenses.
2009 Deductible $1,068
Part B Supplementary Medical Insurance Covers 80% doctor bills & other outpatient medical
expenses after 1st $135 in approved charges.
2009 Monthly Premium $96.40
Part D Medicare Prescription Drug Plan Covers a major portion of prescription drug costs
for Medicare beneficiaries.
2009 average Monthly Premium $37.00
Part A Hospital Insurance Covers most inpatient hospital expenses.
2009 Deductible $1,068
Part B Supplementary Medical Insurance Covers 80% doctor bills & other outpatient medical
expenses after 1st $135 in approved charges.
2009 Monthly Premium $96.40
Part D Medicare Prescription Drug Plan Covers a major portion of prescription drug costs
for Medicare beneficiaries.
2009 average Monthly Premium $37.00
8686
How Will the Prescription Drug Plan Affect You?
How Will the Prescription Drug Plan Affect You?
You will pay the first $295 (called an “annual deductible”).
Medicare will pay 75% of costs above $295 up to $2,700 in drug spending. You will pay only 25% of these costs.
You will pay 100% of the drug costs above $2,700 until you reach $4,350 in out-of-pocket spending. Your out-of- pocket spending includes the annual deductible and prescription co-payments. It does not include the monthly premiums you pay for your drug plan.
Medicare will pay about 95% of the costs after you have spent $4,350.
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Extra Help Could Further ReduceMedicare Prescription Drug CostsExtra Help Could Further ReduceMedicare Prescription Drug Costs
Extra help is available for low income beneficiaries to pay for part of the Medicare
Part D monthly premiums, annual deductibles and prescription co-payments. The extra help
could be worth more than $3,600 per year.
Go online to www.socialsecurity.gov to apply for extra help.
Extra help is available for low income beneficiaries to pay for part of the Medicare
Part D monthly premiums, annual deductibles and prescription co-payments. The extra help
could be worth more than $3,600 per year.
Go online to www.socialsecurity.gov to apply for extra help.
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For More Medicare InformationFor More Medicare Information
1-800-MEDICARE(1-800-633-4227)
TTY 1-877-486-2048
www.medicare.gov
1-800-MEDICARE(1-800-633-4227)
TTY 1-877-486-2048
www.medicare.gov
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What Should You Do toPrepare for Your Retirement?
What Should You Do toPrepare for Your Retirement?
Get estimates of benefits using different retirement ages and wage estimates
www.socialsecurity.gov
Get estimates of benefits using different retirement ages and wage estimates
www.socialsecurity.gov
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Social Security’s Online ServicesSocial Security’s Online Services
Retirement & Disability Applications
Apply for Extra Help
Retirement/Survivors/Disability Planner
Request a Statement
Change of Address
Medicare Card Replacements
Request a Benefit Verification Letter
Start or Change Direct Deposit
Retirement & Disability Applications
Apply for Extra Help
Retirement/Survivors/Disability Planner
Request a Statement
Change of Address
Medicare Card Replacements
Request a Benefit Verification Letter
Start or Change Direct Deposit
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The Social Security StatementThe Social Security Statement
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The Social Security StatementThe Social Security Statement
The Statement provides you with estimates of monthly Social Security retirement, disability and survivors benefits
The Statement allows you to check your earnings history for accuracy
The Statement provides you with estimates of monthly Social Security retirement, disability and survivors benefits
The Statement allows you to check your earnings history for accuracy
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The Social Security StatementThe Social Security Statement