Module 3 Vocab

Question 1

Average Indexed Monthly Earnings (AIME)

Answer 1

Average indexed monthly earning is that calculation used by the social security administration to determine the amount someone has earned over the last 35 years to calculate their Primary Insurnace Amount (PIA)

Question 2

Child’s benefit

Answer 2

A child under the age of 18 or a full-time student in high school is entitled to SS benefits if they or their parts are entitled to SS retirement/disability benefits.

Question 3

Currently Insured Status

Answer 3

Currently insured status determines if someone is eligible to collect SS benefits if it is needed. They must have at least 6 quarters of coverage during the full 13 quarters period. This makes you eligible for at least partial benefits from SS

Question 4

Divorced spouse’s benefit

Answer 4

A divorced spouse of an insured worker can qualify for retirement benefits based on the insured workers
(1) Spouse’s benefits
(2) Mothers/father benefits
(3) Widow(er)s benefits

Question 5

Spouse’s benefit

Answer 5

A spouses benefit is payable if they are:
(1) At least 62 years old
(2) The worker is entitled to SS benefits
(3) The divorced spouse has not remarried
(4) The spouse was married to the worker for at least 10 years

Question 6

Widow(er)s benefit

Answer 6

A widow(er)s benefit is payable if they:
(1) Were married for at least 10 years
(2) Are 60 years or older
(3) Are 50 to 60 years old and disable, the worker was full insured, or not remarried

Question 7

Full Retirement Age (FRA)

Answer 7

Full retirement age is the age that SS benefits become available. They are linked to their birthdate, but currently the highest is 67 years old.

Question 8

Fully Insured Status

Answer 8

A fully insured person is eligible for survivor benefits for a spouse or child, a death benefit payment, and retirement benefits for themselves/ spouse / child.
Must have 1 credit per year since age 21 and a minimum of 6 and maximum of 40.

Question 9

Maximum family benefit

Answer 9

A maximum amount of SS retirement and disability benefits that can be paid based on one SS account.

Question 10

Medicare

Answer 10

A SS benefit available to people over age 65 or eligible for SS benefits. It provided medical expense coverage (prescriptions, hospital, and supplementary insurance).

Question 11

Medicare Part A

Answer 11

Hospital insurance: is available for people over 65 and normally provided for no premium

Question 12

Medicare Part B

Answer 12

Supplementary medical coverage: requires an additional premium and covers medical necessity and preventative care.

Question 13

Medicare part D

Answer 13

Prescription drug coverage. It requires a premium and can reduce the cost of prescriptions

Question 14

Old Age, Survivors, and Disability Insurance (OASDI)

Answer 14

This is the portion of SS that pays for disability and retirement benefits. Based on the 12.4% SS taxed on income up to a certain income limit.

Question 15

Primary Insurance Amount (PIA)

Answer 15

The amount of monthly SS income at Full Retirement Age (FRA)

Question 16

Quarters of coverage

Answer 16

These are the credits used to determine a worker’s insured status for the type and amount of benefits available to them.

Question 17

Spouse’s disability benefit

Answer 17

The spouse of a worker can be entitled to a spouse’s disability benefit if they are 62 and older, caring for a child under 16 (or disabled), and married for at least 10 years.