SOCIAL SECURITY (4 QUESTIONS)

Question 1

When can a spouse received social security benefits from their spouse?

Answer 1

They have to be married for 1 year in order receive spouse’s social security benefit

Question 2

What is the exception to the 1 year rule requiring a spouse to be marriage for 1 year in order to receive their spouse’s social security benefit?

Answer 2

If they have a child together the 1 year rule doesn’t apply

Question 3

How long must a divorce spouse have been married in order to receive social security benefits upon divorce?

Answer 3

10 years

Question 4

If I am receiving retirement or disability benefits, when is my spouse eligible to receive benefits?

Answer 4

(1) at least 62 OR
(2) any age if they are caring for a child who is under age 16 or who has a disability that began before age 22.

Question 5

Can you collect your own retirement benefits and your spouse’s benefits?

Answer 5

Yes - you can collect both. The social security administration will always pay you your own benefits first and if your benefit amount as a spouse is higher than your own, you will get a combination of the 2 benefits that equal the higher amount

Question 6

What happens if you to your social security benefits if you also get a retirement or disability pension based upon your own federal, state or local government work not covered by SS?

Answer 6

The social security administration will reduce spouse’s or surviving spouse’s benefits by 2/3 the amount of the government pension.

Question 7

In order for a divorced spouse who was married for 10 years to receive their former spouse’s benefits, what must take place

Answer 7

Working spouse must be at least 62

Question 8

Can a former spouse of 10 years receive working spouse’s benefits if they are age 62 but not yet retired?

Answer 8

Only if the divorce has been final for 2 years unless the working spouse has started receiving benefits

Question 9

Are children entitled to social security retirement or disability benefits?

Answer 9

When a parent receives Social Security retirement or disability benefits, or dies, their child may also receive benefits. Under certain circumstances, a stepchild, adopted child, or dependent grandchild or step-grandchild also may qualify.

Question 10

What is required in order for a child to receive social security retirement or disability benefits?

Answer 10

To receive benefits, the child must be unmarried and:
(1) Younger than age 18, or
(2) Between ages 18 and 19 and a full-time student at an elementary or secondary school (grade 12 or below); or
(3) Age 18 or older with a disability that began before age 22.

Question 11

Is there a limit to the monthly benefit that the social security administration will pay to your family?

Answer 11

YES -there is a limit to the monthly benefit amount SSA will pay your family.

The total depends on your benefit amount and the number of family members who also qualify on your record.

The total varies, but generally, the total amount you and your family can get is about 150 to 180 percent of your full retirement benefit. ***The benefit payment made to a divorced spouse does NOT affect the benefits payable to you or your family.

Question 12

Who can be eligible for survivor benefits based on a deceased worker’s earnings?

Answer 12

A surviving spouse, surviving divorced spouse, unmarried child, or dependent parent may be eligible for monthly survivor benefits based on the deceased worker’s earnings

Question 13

Can can happen in addition to a survivor being entitled to a deceased worker’s earnings?

Answer 13

In addition, a one-time lump sum death payment of $255 can be made to a qualifying spouse or child if they meet certain requirements.

Question 14

In order to receive the additional one time lump sum death payment of $255, what must be done?

Answer 14

Survivors must apply for this payment within two years of the date of the number holder’s death.

Question 15

When can a parent receive benefits from their son or daughter?

Answer 15

An older person who receives at least half of his/her support from a son or daughter who has died may receive parent’s benefits derived from that son/daughter’s Social Security account.

Question 16

When do disability benefits stop?

Answer 16

Disability benefits stop when recipient attains “full retirement age.

Question 17

How young can a recipient of disability benefits be?

Answer 17

Benefits are payable to disabled workers as young as 21 years old

Question 18

What is necessary to qualify for disability benefits?

Answer 18

To qualify, one must be unable to perform “any substantial gainful activity by reason of any medically determinable physical or mental impairment.

Question 19

What is the presumption of a disability?

Answer 19

There is a presumption that earning an average of less than an annually adjusted amount indicates an inability to perform any substantial gainful activity.

Question 20

How often is a person’s status as disabled reviewed?

Answer 20

The person status as disabled is reviewed periodically until reaching full retirement age.

Question 21

Are disability benefits reduced based on age?

Answer 21

NO. A Person can receive benefits equal to his/her PIA, so a person who I 62 and disabled should apply since disability benefits generally are not reduced on account of age, unlike retirement benefits. If person received disability benefits for 24 consecutive months then person is automatically enrolled in Medicate regardless of person’s age. Derivative benefits are payble to the spouse, divorced spouse, children and grandchildren of the disabled person.

Question 22

Can your supplemental security income payments change upon remarriage?

Answer 22

YES - your SSI payment amount may change as a result of your new spouse’s income and resources. If you and your spouse both get SSI, your payment amount will change from an individual rate to a couple’s rate.

Question 23

What happens to benefits for a widow/widower or divorced widow/widower remarries before age 50?

Answer 23

1. If you remarry before age 50 — you won’t be entitled to survivor’s or disability benefits unless you divorce.
2. If you remarry between the ages of 50 and 59 — you can’t get benefits. Note: If you remarry before you turn 60 and that marriage ends, you may become entitled or re-entitled to benefits on your prior deceased spouse’s earnings record. Your benefits begin the first month in which the subsequent marriage ended if all entitlement requirements are met.
3. If you remarry after age 60 — you may still become entitled to benefits on your prior deceased spouse’s Social Security earnings record.

Question 24

What happens in general to a divorced spouse’s benefits upon remarriage?

Answer 24

Generally, if you remarry, benefits paid to you from your prior spouse’s account stop.

Question 25

What happens to children’s benefits upon marriage?

Answer 25

Children’s benefits end once the child marries.

Question 26

What happens to payments due to a deceased beneficiary’s payments that may have been due at time of death?

Answer 26

Pay amounts due a deceased beneficiary to a family member or legal representative of the estate.

Question 27

What is Primary Insurance Amount?

Answer 27

Primary Insurance Amount (PIA) – if person receives SS benefit at Full Retirement Age, there is a calculation that will include a COLA from age 62 to when benefit is paid. So the methodology is applied when the worker becomes 62 and then is adjusted for inflation from age 62 until age when benefit is elected.

Question 28

What is Deferred or Delayed Retirement

Answer 28

Deferred or Delayed Retirement – for individuals who delay SS benefit beyond full Retirement age, they are entitled to a bonus. No extra bonus for delaying after age 70 so take SS benefit once 70.

Question 29

What is the full retirement age?

Answer 29

Full Retirement Age – For individuals born after 1959, the full retirement age is 67.

Question 30

What is early retirement?

Answer 30

Early Retirement – Worker can receive benefits as early as 62 but receive a reduced amount if electing before Full Retirement Age. Retirement earnings test looks only at income from performing personal services and not interest income, pension plan distributions, capital gains, etc.

Question 31

What does AIME stand for

Answer 31

AIME (Average Indexed Monthly Earnings)

Question 32

What is AIME (Average Indexed Monthly Earnings)

Answer 32

AIME (Average Indexed Monthly Earnings) – computes a workers average monthly wage over working life. Only the wages subject to SS tax are considered. In the calculation, the person’s earnings are divided by 35 years whether they worked that long or not.

Question 33

Is there federal income tax on retirement benefits?

Answer 33

For most recipient’s social security retirement benefits, there is no federal income tax but some may be subject to a two-tiered tax on SS benefits that is based on a recipient’s overall income

Question 34

When/how is tax triggered?

Answer 34

The tax is triggered by income of any source, including capital gains and even interest in income, which is unlike the retirement earnings test which is concerned exclusively on earned income.

The threshold amounts at the first and second tiers are not indexed for inflation (i.e. 25,000 for single persons and $32,000 for married persons in first tier; $34,000 for single and $44,000 for married in second tier). In the calculation determining the first tier and second tier of tax, it will never be more than 85% of their SS benefits that are taxable.

Question 35

Is there an appeals process?

Answer 35

YES - there is an appeal process. A claimant may appoint someone to represent his/her interest and doesn’t have to be an attorney. Could be employers, union officials.

1. First Step – reconsideration by SSA. This is done by employee of SSA not previously involved
2. Second Step – hearing before an administrative law judge within SSA
3. Third Step – review of administrative law judge’s decision by the Appeals Council of the SSA. They can chose to review or not review, or remand back to administrative law judge to review. They can also hear case and render its own decision.
4. Claiming can also seek judicial review in a Federal district court.