M10: Flaschards

Question 1

Recommended average high-cost multiple

Answer 1

1.5 (1.5 years with no new revenue)

Question 2

Firms with favorable employment records pay reduced tax rates

Answer 2

Experience Rating

Question 3

Indicates how long a state can pay benefits if it paid benefits equivalent to the average amount paid out during the three highest cost 12 month periods during the previous 20 years, without collecting any additional revenue.

Answer 3

Average high-cost multiple

Question 4

Benefits paid should provide a certain standard of living to all contributors. This means they are heavily weighted in favor of certain groups, such as low income persons, large families, and the presently retired aged.

Answer 4

Social adequacy

Question 5

Maximum duration of regular benefits is 26 weeks, this can be applied for an additional 13 weeks.

Answer 5

Extended benefits

Question 6

Unmarried, disabled children entitled to SS and DI

Answer 6

Disabled before age 22

Question 7

Quarters of coverage (credits) for Social Security earned each year (max)

Answer 7

Maximum of 4 credits per year

Question 8

PIA is increased 8% per year for each year of delay for people born XXXX year or after

Answer 8

1943

Question 9

Three-legged stool approach

Answer 9

Social Security, personal savings, & employer pensions

Question 10

How Social Security benefits are financed

Answer 10

Payroll tax paid by employees, employers, & self employed

Question 11

The amount needed for one credit (in 2022)

Answer 11

$1,510

Question 12

The number of SS credits a fully insured person has

Answer 12

40 credits (about 10 years)

Question 13

The sum of your adjusted gross income, plus tax free interest, plus 1/2 of your Social Security benefits

Answer 13

Combined Income

Question 14

Contributors receive benefits directly related to their contributions; the actuarial value of the benefits is closely related to the actuarial value of the contributions

Answer 14

Individual equity

Question 15

Full social security retirement age for persons born in 1960 or later

Answer 15

Age 67

Question 16

The worker must have a physical or mental condition that prevents him or her from doing any substantial gainful activity and is expected to last (or has lasted) at least 12 months or is expected to result in death

Answer 16

Definition of disability

Question 17

The PIA is based on this amount, which updates the worker’s past earned amounts based on increases in average wages

Answer 17

Average indexed monthly earnings (AIME)

Question 18

The monthly retirement benefit is based on this amount

Answer 18

Primary insurance amount (PIA)

Question 19

What a person must do to receive credits for Social Security

Answer 19

Must have worked in covered employment

Question 20

Age at which disability benefits are converted to retirement benefits

Answer 20

Disability conversion age

Question 21

A basic characteristic of social insurance programs where income is high enough to provide a comfortable standard of living

Answer 21

Floor of income

Question 22

The insured unemployed in regular state programs as a percentage of the total unemployed

Answer 22

Recipiency rate

Question 23

The number of SS credits a currently insured person has

Answer 23

At least 6 credits in the last 13 calendar quarters

Question 24

This requires applicants to show their income/assets are below a certain level for public assistance. This isn’t required for social insurance programs.

Answer 24

Means test

Question 25

Three programs that provide economic security for millions

Answer 25

OASDI, Workers Comp, & Unemployment insurance

Question 26

OASDI

Answer 26

Old-Age, Survivor’s, & Disability Insurance (also known as Social Security)

Question 27

Federal state programs that pay weekly cash benefits to workers who are involuntarily unemployed

Answer 27

Unemployment insurance