#help.tut Extra help for tutorials #define.stb On line glossary- definitions of legal terms /* Part two of social security basics */ Overall Program And Benefit Information YOUR SOCIAL SECURITY INTRODUCTION Social Security is the Nation's basic method of providing a continuing income to you and your family when your earnings stop because of your retirement, disability, or death. Social Security payments are not intended to replace all lost earnings. People should try to supplement Social Security payments with savings, pensions or other insurance. Nine out of 10 workers in the United States are earning protection under Social Security. About one out of every six persons in the country receives monthly Social Security checks. Over 24 million people 65 and over, nearly all of the nation's older population have health insurance under Medicare. Another 3 million disabled people under 65 also have Medicare. Nearly every family then has a stake in Social Security. This booklet is about your Social Security. It tells how you earn protection under Social Security, the kinds of benefits you and your family can get, how Social Security is financed and other information that can help you in planning for the future. *************** WHO GETS CHECKS *************** Benefits For An Individual Monthly Social Security checks may go to workers and their dependents when the worker retires, becomes severely disabled or dies. Then, there's Medicare, which helps pay the cost of health care for eligible people who are 65 or over or disabled. Monthly Social Security benefits include: Retirement checks - When you retire, you can start getting retirement checks as early as 62. Disability checks - A worker who becomes severely disabled before 65 can get disability checks. Survivors checks - If the worker dies, survivors checks can go to certain members of the worker's family. A lump-sum payment can also be made when a worker dies. It is generally $255. This payment can only be made if there is an eligible surviving widow, widower or entitled child. Checks For A Worker's Family Monthly Social Security checks are also paid to certain dependents of a worker who has retired, become disabled or died. Retirement or Disability - If a worker is receiving retirement or disability benefits, monthly benefits also can be made to his or her: - Unmarried children under 18 (or under 19 if full-time high school students). - Unmarried children 18 or over who were severely disabled before 22 and who continue to be disabled. - Wife or husband 62 or over. - Wife or husband under 62 if she or he is caring for a child under 16 (or disabled) who's getting a benefit based on the retired or disabled worker's earnings. Survivors - Monthly payments can be made to a deceased worker's: - Unmarried children under 18 (or under 19 if full-time high school students). - Unmarried son or daughter 18 or over who was severely disabled before 22 and who continues to be disabled. - Widow or widower 60 or over. - Widow or widower, or surviving divorced mother or father if caring for worker's child under 16 (or disabled) who is getting a benefit based on the earnings of the deceased worker. - Widow or widower 50 or older who becomes disabled not later than seven years after the worker's death, or within seven years after mother's or father's benefits end. -Dependent parents at least 62 Checks also can go to a divorced spouse at 62 or over, or to a surviving divorced spouse at 60 or to a disabled surviving divorced spouse 50 or older if the marriage lasted 10 years or more. Under certain conditions, children may be eligible for Social Security benefits based on a grandparent's earnings. A divorced spouse, who has been divorced at least two years, can receive benefits at 62 whether or not her or his former spouse receives them. The former spouse must be eligible for Social Security benefits regardless of whether he or she has retired. Generally, a marriage must have lasted at least one year before dependents of a retired or disabled worker can get monthly benefits; survivors can get benefits in most cases if the marriage lasted at least nine months. SSA-6 *************** WHO GETS CHECKS *************** Overall Program And Benefit Information Monthly Social Security benefits include: Retirement checks - When you retire, you can start getting retirement checks as early as 62. Disability checks - A worker who becomes severely disabled before 65 can get disability checks. Survivors checks - If the worker dies, survivors checks can go to certain members of the worker's family. A lump-sum payment can also be made when a worker dies. It is generally $255. This payment can only be made if there is an eligible surviving widow, widower or entitled child. *********************** HOW TO BUILD PROTECTION *********************** Work Credits (quarters of coverage) Explained Before you or your family can get monthly cash benefits, you must have credit for a certain amount of work under Social Security. The exact amount of work credit depends on your age. Social Security credit is measured in "quarters of coverage." In 1985, employees and self-employed people receive one quarter of coverage for each $410 of covered annual earnings. No more than four quarters of coverage can be credited for a year. The amount of earnings needed to get a quarter of coverage will increase automatically in the future to keep pace with average wages. For more information about how self-employment earnings are covered under Social Security, ask for a free copy of the leaflet,"If You're Self-Employed... Reporting Your Income For Social Security." If you stop working under Social Security before you've earned enough credit, you can't get benefits. But the credit you've already earned will stay on your record. You can add to it if you return to work under Social Security. Having enough credit means only that you or your family can get checks. The amount of your check depends on your earnings over a period of years. Mandatorily covered employees of nonprofit organizations 55 or older on Jan. 1, 1984, may get retirement or survivors benefits with less credit for work. You can get more information about this or any other question at any Social Security office. Credits Earned While Working As An Employee In 1985, you can earn one quarter of coverage for each $410 of your covered earnings, up to a total of four quarters for the year. No more than four quarters of coverage can be earned for any one year. The amount of covered earnings needed for a quarter of coverage will increase automatically each year to keep up with increases in average wage levels. If you work as a domestic employee in a private household, your wages are covered if an employer pays you $50 or more in cash wages in a three month calendar quarter. You get one quarter of coverage for each $410 of your covered wages, up to a maximum of four quarters for the year. If someone hires you to do farm work, including domestic work in a farm home, your wages are covered by Social Security if: - You receive at least $150 in cash pay from that employer during a year; -OR- - You are employed on 20 or more days during a year for cash pay figured on a time basis (by the hour, day, week, etc.), regardless of the amount of pay. You will receive one quarter of coverage for each $410 of your covered earnings, up to a maximum of four quarters for the year. These employees earn quarters of coverage in the same way as other workers. Employees of certain churches and church controlled organizations, however, are treated as self-employed persons for Social Security purposes. Most Federal employees hired on or after January 1, 1984 also are covered by Social Security. They earn quarters of coverage in the same way as other workers. Work done by a child under 21 for a parent, by a husband for his wife, or by a wife for her husband is not covered by Social Security. But work done by a parent for a son or daughter, in connection with the son's or daughter's business, is covered. Household work for a son or daughter may be covered in certain situations. Contact any Social Security office for more information. Earning Credits While Self-Employed In 1985, you earn one quarter of coverage for each $410 of your covered self-employment income, up to a maximum of four quarters for the year. Your income is covered by Social Security if you have a net profit of $400 or more in a year. Your self-employment income also may count for Social Security even if your actual net earnings are less than $400. For more information contact any Social Security office. A church or qualified church-controlled organization can elect exemption from Social Security taxes if it is opposed to paying them for religious reasons. If you are an employee of a church or organization that chooses exemption, you are still covered by Social Security if you earn $100 or more in a year from the church or organization. But, you are considered self-employed and your earnings are self-employment income for Social Security purposes. You earn one quarter of coverage in 1985 for each $410 of your covered self-employment income, up to a maximum of 4 quarters in a year. Work Credit For Retirement Benefits The following table shows how much work credit is needed to be eligible for retirement benefits. The people at any Social Security office will be glad to give you more details. Work Credit For Retirement Benefits ********************************* If you reach Years you 62 in need 1981 7 1/2 1982 7 3/4 1984 8 1/4 1985 8 1/2 1987 9 1991 or later 10 ************************************ Work Credits For Survivors And Disability Benefits The following tables show how much work credit is needed for Survivors or Disability benefits. The amount of credit needed varies by age and when you become disabled. The people at any Social Security office can give you more information. If you are disabled by blindness, you do not have to meet the requirements of recent work. But you do need credit for one-quarter year of work for each year since 1950 (or the year you reached 21 if later),up to the year you became blind. A minimum of one and one-half years of credit is needed. Under a special rule, cash payments can be made to a worker's children and their mother or father provided he or she worked under Social Security one and one-half years in the three years before death.