Chapter 12 Flashcards
What is the Blackout Period?
The period following the death of a family breadwinner during which no Social Security benefits are available to the surviving spouse.
What are Credits in relation to Social Security?
Credits are the determining factor between being classified as fully insured or currently insured. Once fully insured, death benefits are extended to the family.
An individual must have been employed and paid FICA taxes for at least 10 years to meet the 40-quarter rule.
What does Currently Insured mean?
A status of limited eligibility that provides only death benefits.
What are Disability Benefit Qualifications?
Criteria used by Social Security to determine if a person qualifies for Social Security Disability Insurance (SSDI), based on work credits and medical disability proof.
What are FICA Taxes?
FICA taxes are used to fund the Social Security program.
What does Fully Insured mean?
Complete eligibility for the full range of Social Security benefits, including death, retirement, disability, and Medicare benefits. Requires 40 quarters of FICA contributions.
What does Fully and Permanently Insured mean?
An individual has paid FICA contributions for at least 40 quarters, which are not required to be consecutive.
What is Old Age, Survivor, and Disability Insurance (OASDI)?
More commonly referred to as Social Security, funded by a tax on earned income withheld by employers.
What is the Primary Insurance Amount (PIA)?
The benefit a person would receive if they begin receiving retirement benefits at their normal retirement age, before rounding down.
What is a Quarter of Coverage?
A basic unit for determining whether a worker is insured under the Social Security program.
What are Retirement Benefits?
Available to covered workers and their spouses who are fully insured upon retirement, paid monthly. If retired at normal age, receive 100% of PIA; retiring early may reduce benefits by up to 30%.
What is the Social Security Act of 1935?
An act created to provide for the general welfare of U.S. citizens aged 65 and older, enabling states to provide financial assistance and establishing a Social Security Board.
It was amended in 1939 to add survivors’ benefits and in 1956 to include disability benefits.
