To protect workers from Injury Job loss Health Dependents Idea is the level the playing field
Social Security Act 1935 Three programs with in this act ▪ Medicare ▪ Unemployment insurance Supplemental unemployment benefits ▪ Old Age Survivor and Disability Insurance ▪ Old age benefits ▪ Quarters of coverage ▪ Fully insured ▪ Survivor benefits
Thru no fault of ee State by state Base period applies First four quarters of last calendar quarters Must be actively seeking work Not refuse offer of reasonable work Labor disputes do no9t qualify individual.
Cyclical layoffs most common ▪ After 9/11…ees given additional 13 weeks ▪ FUTA ▪ Levies taxes on ers *(all but Alaska) ▪ This money is invested by Fed 5.4% ▪ The more you fired the higher you tax ▪ experience rating system
Retirement income Based on how much you have earned Based on quarters of coverage Fully insured after 40 quarters of coverage Survivors insurance ▪ Wives, children under 18, parent who has been dependent on ee Disability insurance ▪ Conditions must be expected to last 1 year ▪ Must have worked a certain amount of time
65 or older Part A Part B Medigap Part C Part D
Tax based on payroll Increases with CPI 7.5% er and ee (2007) 15.3 % individual contribution ▪ Pay as you go..younger workers are supporting older workers benefits (takes 5) ▪ After 2020 rapid decline in amounts paid ▪ Thanks alot