Social Security Vocab & Notes Chap 8 Flashcards
A basic unit for determining whether a worker is insured under the Social Security program.
Quarter of Coverage
_____________________are used to fund the Social Security program if a person hasn’t contributed through their payroll program, they are not eligible for benefits.
FICA taxes (Federal Insurance Contributions Act)
Units of measurement used by the Social Security Administration to determine if a person can be classified as fully insured or currently insured. Four __________ are the maximum a person can earn in a year, and to qualify for the 40-quarter rule, an individual must have worked and paid FICA taxes for at least ten years. Once fully insured, a person’s family may be eligible for survivorship benefits if the individual passes away.
Credits
A status of complete eligibility for the full range of Social Security benefits: death benefits, retirement benefits, disability benefits, and Medicare benefits. A person must have contributed for 40 quarters of employment.
Fully Insured
_________________ is under Social Security, a status of limited eligibility that provides only death benefits.
Currently Insured
A programming also known as Social Security. To pay for these programs, the federal government imposes a tax on earned income that must be withheld by your employer. The _________ deduction on your paycheck shows how much was withheld.
OASDI
The benefit (before rounding down to next lower whole dollar) a person would receive if he/she elects to begin receiving retirement benefits at his/her normal retirement age. At this age, the benefit is neither reduced for early retirement nor increased for delayed retirement.
The Primary Insurance Amount (PIA)
A duration following the death of the breadwinner of a family during which no Social Security benefits are available to the surviving spouse.
Blackout period
When Social Security uses both medical disability criteria and non-medical criteria to determine whether you qualify for Social Security disability (SSDI, the program based on work credits) or Supplemental Security Income (SSI, the low-income program). First, you must be able to prove that you are medically disabled.
Disability Benefit Qualifications
The monthly income that a retired worker, their spouse, and eligible dependents receive from Social Security. In order to qualify for these benefits, the worker must have been fully insured upon retirement. If the worker retires at the normal retirement age, they will receive 100% of their Primary Insurance Amount (PIA). However, if they retire early at the age of 62, the maximum benefit is reduced to 80% of their PIA and this reduction remains for the rest of their retirement.
Retirement Benefits
____________________ states that Social Security benefits are subject to federal income tax if the beneficiary files an individual tax return and his or her annual income is greater than $25,000. Joint filers will pay federal income tax on their Social Security benefits if their income is greater than $32,000
Taxation of Social Security Benefits
The amount of this benefit is equal to three times the worker’s PIA, up to a maximum of $255. This benefit is designed to help defray funeral expenses. Only surviving spouses or eligible children may receive this benefit
Lump-Sum Death Benefit
The eligible surviving spouse of a fully insured deceased worker is entitled, at age 65, to a monthly life income equal to the worker’s PIA at death. Or, if the worker wishes to receive these benefits early, the surviving spouse can elect reduced benefits, starting as early as age 60.
Surviving Spouse’s Benefit
One becomes eligible for social security disability after having been disabled for ___________________.
5 Months
