Presented by Jim Czechowicz, Office of Public Affairs, U. S. Social Security Administration 332 Minnesota Street, N650 St Paul MN x34009 Presented by Jim Czechowicz, Office of Public Affairs, U. S. Social Security Administration 332 Minnesota Street, N650 St Paul MN x34009 The Ten Most-asked Questions about Social Security The Ten Most-asked Questions about Social Security

1. Social Security: Foundation for Income in Retirement

~60 Million People 2. Social Security: More than Retirement 32.8 million Retired Workers & Dependents 7.7 million Disabled Workers & Dependents 4.8 million Widows/ Widowers 1.9 million Children

Importance of Social Security to Young People Importance of Social Security to Young People  1 in 4 …20 year-olds will have a disability before age 67  1 in 7 …dies prior to age 67  1 in 4 …20 year-olds will have a disability before age 67  1 in 7 …dies prior to age 67

Social Security’s Programs

Social Security Cost-of-Living Adjustments July % July % July % July % July % July % July % July % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January % January %

3. You Need to Work to Earn Social Security Credits 3. You Need to Work to Earn Social Security Credits  Each $ 1,260 in earnings in 2016 gives you one credit  You can earn a maximum of 4 credits per year Example: To earn 4 credits in 2016, you must earn at least $5,040. Earning 40 credits throughout your working life will qualify you for a retirement benefit.  Each $ 1,260 in earnings in 2016 gives you one credit  You can earn a maximum of 4 credits per year Example: To earn 4 credits in 2016, you must earn at least $5,040. Earning 40 credits throughout your working life will qualify you for a retirement benefit.

4. Your Social Security Benefit is based on a “lifetime” of earnings. 4. Your Social Security Benefit is based on a “lifetime” of earnings. Step 1Your wages are adjusted for inflation Step 2Find the average of your 35 highest years Step 3Result is “average indexed monthly earnings”

Full Retirement Age Year of BirthFull Retirement Age & 2 months & 4 months & 6 months & 8 months & 10 months 1943 – & 2 months & 4 months & 6 months & 8 months & 10 months 1960 & later67 Year of BirthFull Retirement Age & 2 months & 4 months & 6 months & 8 months & 10 months 1943 – & 2 months & 4 months & 6 months & 8 months & 10 months 1960 & later67

5. Your Age When You Retire Affects Your Benefits At age 62, you get less money- permanently  At your full retirement age, you get your full benefit  You get even more money if you work past your full retirement age At age 62, you get less money- permanently  At your full retirement age, you get your full benefit  You get even more money if you work past your full retirement age

6. You Can Work & Still Receive Benefits

7. Who Else Can Get Benefits? The Worker’s Spouse  At age 62  At any age if caring for child under 16 or disabled  Divorced spouses married min. 10 yrs. The Worker’s Child Not married under 18 (under 19 if still in high school)  Not married and disabled before age 22

Survivors Benefits Widow or Widower:  Reduced benefits at age 60  If disabled as early as age 50  At any age if caring for child under 16 or disabled  Divorced widows/widowers may qualify Child Is:  Not married under age 18 (under 19 if still in high school)  Not married and disabled before age 22 Widow or Widower:  Reduced benefits at age 60  If disabled as early as age 50  At any age if caring for child under 16 or disabled  Divorced widows/widowers may qualify Child Is:  Not married under age 18 (under 19 if still in high school)  Not married and disabled before age 22

Disability Benefits Worker  Must have paid into Social Security five out of last 10 years Spouse  At age 62  At any age if caring for child under 16 or disabled  Divorced spouses may qualify Worker  Must have paid into Social Security five out of last 10 years Spouse  At age 62  At any age if caring for child under 16 or disabled  Divorced spouses may qualify

Supplemental Security Income

If any part of your government pension is based on work not covered by Social Security, you may be affected by the Windfall Elimination Provision. If any part of your government pension is based on work not covered by Social Security, you may be affected by the Windfall Elimination Provision. Windfall Elimination Provision

Example: $ 900 of Government pension 2/3 = $ 600 Social Security Spouse Benefits = $ 500 No cash benefit payable by Social Security Example: $ 900 of Government pension 2/3 = $ 600 Social Security Spouse Benefits = $ 500 No cash benefit payable by Social Security Government Pension Offset (GPO) Spouse’s Benefits Only 2/3 of amount of Government pension will be used to reduce the Social Security spouse’s benefit Spouse’s Benefits Only 2/3 of amount of Government pension will be used to reduce the Social Security spouse’s benefit

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8. What You May Need When Applying for Your Social Security Benefits: 8. What You May Need When Applying for Your Social Security Benefits: Social Security Number (not the card) for each applicant Proof of Age (birth certificate) Latest W-2 or Self-Employment Tax return Earnings Estimate Bank information for Direct Deposit Information about Marriages/Divorces Information about Military or Railroad Service Social Security Number (not the card) for each applicant Proof of Age (birth certificate) Latest W-2 or Self-Employment Tax return Earnings Estimate Bank information for Direct Deposit Information about Marriages/Divorces Information about Military or Railroad Service

65 & older -or- Receiving Social Security disability benefits at least 24 months -or- Permanent kidney failure -or- Amyotrophic Lateral Sclerosis (ALS) 65 & older -or- Receiving Social Security disability benefits at least 24 months -or- Permanent kidney failure -or- Amyotrophic Lateral Sclerosis (ALS) 9. Medicare: What and When?

Medicare Coverage Part A Hospital Insurance  Covers most inpatient hospital expenses.  2016 Deductible $1, Part B Supplementary Medical Insurance  Covers 80% doctor bills & other outpatient medical expenses after 1 st $ 166 in approved charges  2016 Monthly Premium $ * (*for those not held harmless, unless higher income) Part A Hospital Insurance  Covers most inpatient hospital expenses.  2016 Deductible $1, Part B Supplementary Medical Insurance  Covers 80% doctor bills & other outpatient medical expenses after 1 st $ 166 in approved charges  2016 Monthly Premium $ * (*for those not held harmless, unless higher income)

Medicare Coverage Part C Medicare Advantage Plan Receive all your Medicare health care services through a provider organization Part D Medicare Prescription Drug Plan Covers prescription drug costs for Medicare beneficiaries. Monthly Premiums Vary by plans- sold by private companies Part C Medicare Advantage Plan Receive all your Medicare health care services through a provider organization Part D Medicare Prescription Drug Plan Covers prescription drug costs for Medicare beneficiaries. Monthly Premiums Vary by plans- sold by private companies

Medicare Enrollment Initial - at age 65  Special - if still working  General - January-March

Medicare Part D Basics Effective January 1, 2006 Private Drug Plans –Medicare-approved companies Optional or Voluntary* Everyone with Medicare A and/or B is eligible. People with low income may get “extra help” paying for premiums, co-pays, deductibles

10. - For More Information MEDICARE Senior Linkage Line MEDICARE Senior Linkage Line

28 What is myRA?  A new retirement savings account developed by the U.S. Department of the Treasury  Designed for people who don’t have access to a retirement savings plan at work, or who lack options to save  It is a Roth IRA that invests in new U.S. Treasury retirement savings bonds  Open an account, build up savings to $15,000, then transfer or roll over savings to a private-sector Roth IRA

29 my Social Security Services If you don’t get benefits, you can— Request a replacement Social Security card (available in some states and the District of Columbia); Review estimates of your future retirement and disability benefits; Review estimates of the benefits your family may get when you receive Social Security or die; Verify your lifetime earnings according to Social Security’s records; Review the estimated Social Security and Medicare taxes you’ve paid; Learn about qualifying and signing up for Medicare; and View, save, and print your Social Security Statement.

30 If you do get benefits you can— Request a replacement Social Security card (in some states and the District of Columbia); Check your benefit and payment information and verify your earnings record; Change your address and phone number; Start or change your direct deposit; Request a replacement Medicare card; and Get a replacement SSA-1099 or SSA-1042S. my Social Security Services

31 Anti-Fraud If you suspect fraud, waste, or abuse, report it to SSA’s Office of the Inspector General (OIG) by:  Submitting a report online at oig.ssa.gov. and using the e-8551 (Fraud Reporting Form);  Calling the OIG Hotline at from 10:00 a.m. to 4:00 p.m. (EST) (TTY for the deaf or hard of hearing);  Faxing your statement to ; or  Mailing your statement to Social Security Fraud Hotline, P.O. Box 17785, Baltimore, MD