Social Security

Question 1

Social Security retirement benefits are only available to covered workers and their spouses who are full insured upon retirement. These benefits are paid monthly. If a covered worker retires at the normal retirement age, she will receive 100% of the PIA. Although a person can choose to retire as early as age 62, if a covered worker retires early at the age of 62, the maximum Social Security benefit may be reduced by as much as 30%. This reduction remains all through retirement. Retirement benefits pay a monthly retirement income to a covered retired worker, her spouses, and other eligible dependents.

Answer 1

Retirement Benefits

Question 2

This is a basic unit for determining whether a worker is insured under the Social Security program.

Answer 2

Quarter of Coverage

Question 6

This status represents complete eligibility for the full range of Social Security benefits, including death benefits, retirement benefits, disability benefits, and Medicare benefits. To be fully insured, a person must have contributed to FICA taxes for 40 quarters of employment.

Answer 6

Fully Insured

Question 7

The taxes used to fund the Social Security program.

Answer 7

FICA Taxes (Federal Insurance Contributions Act)

Question 8

Used when Social Security uses both medical disability criteria and non- medical criteria to determine whether a person qualifies for Social Security Disability Insurance (SSDI), which is a program that’s based on work credits. However, a person must first be able to prove that she’s medically disabled.

Answer 8

Disability Benefit Qualifications

Question 9

These are the determining factor between being classified as fully insured or currently insured. Once a person becomes fully insured, death benefits are extended to his family. In other words, the family becomes eligible for survivorship benefits. Four credits are the maximum that any one person can earn in a given year. Therefore, for the 40-quarter rule to apply, an individual must have been employed and have paid FICA taxes for at least 10 years.

Answer 9

Credits

Question 9

As it relates to Social Security, this is a status of limited eligibility that provides only death benefits.

Answer 9

Currently Insured

Question 10

This is the period following the death of a family breadwinner during which no Social Security benefits are available to the surviving spouse.

Answer 10

Blackout Period