Group 12 Social Security In The US

Question 1

Old-age, survivors and disability insurance program (US social security)

Answer 1

1. Covered population
   
   1. 1 Workers pay social security taxes, receive coverage credits
   2. 2 workers with enough credits establish insured status
2. Insured status: disability insured status, fully insured, currently-insured
3. Financed by payroll taxes and interest in the trust funds
4. Disability eligibility and benefit amounts
5. Survivor eligibility and benefit amounts

Question 2

Disability benefits

-Eligibility conditions

Answer 2

1. Individual must have disability insured status
2. Unable to engage in any substantial gainful activity
3. Takes into account worker’s age, education, work experience
4. Large percentage of initial claims denied
5. Disabled reviewed to see whether remain disabled
6. Benefits payable after 5 full calendar months of disability

Question 3

Disabled-worker benefit amounts

Answer 3

1. Disabled amounts computed similar to retired-worker benefit
2. Cost-of-living increases every December
3. Amount payable to family is 50% worker’s primary insurance amount PIA
4. Total benefits payable maximum 150% of the worker’s own benefit
5. Disability benefits integrated with worker’s comp
6. Total benefits cannot exceed 80% of average current earnings

Question 4

Survivor benefits: eligibility and amounts

Answer 4

1. Survivor beneficiary categories
   
   1. 1 spouses and ex-spouses must establish marriage relationship
   2. 2 children must establish dependency
2. Amounts
   
   2. 1 100% of PIA to widow, 75% to children, 82.5% to parents (75% each of both parents)
   3. 2 claiming before NRA (normal retirement age) reduces spouse benefit
   4. 3 A maximum family benefit applies

Question 5

Social security act: types of benefits

Answer 5

1. Retired-worker benefits
2. Cash benefits are disabled worker and survivor
3. Medical benefits are Medicare and Medicaid