INSURANCE PROGRAMS RETIREMENT SURVIVOR DISABILITY MEDICARE THESE PROGRAMS ARE BASED ON F.I.C.A. CONTRIBUTIONS
VESTING AND CALCULATION FOR RETIREMENT 40 QUARTERS TO BE VESTED WHICH IS 10 YEARS OF CUMULATIVE WORK 35 HIGHEST YEARS OF SOCIAL SECURITY WAGES ARE AVERAGED
The Social Security Statement “The Future’s In Your Hands” October 1, 1999 PHINE O. PUBLIC MAIN STREET TOWN, USA 11111-1111 Your Social Security Statement Prepared especially for Josephine Q. Public What Social Security Means to You REVIEW VERIFY PLAN
SOCIAL SECURITY RETIREMENT AGE IS INCREASING The full Social Security retirement age is increasing. This is the age that one’s benefit is not reduced for taking it early. A worker will still be able to retire as early as age 62, but the reduction amount will be higher. In the past, a worker retiring at age 62 would have their benefits reduced by 20%. Year Of BirthFull Retirement Age% Reduction at age 62 * 1937 or earlier6520% 193865 and 2 months20.8% 193965 and 4 months21.7% 194065 and 6 months22.5 % 194165 and 8 months23.3% 194265 and 10 months24.2 1943-19546625% 195566 and 2 months25.8% 195666 and 4 months26.7% 195766 and 6 months27.5% 195866 and 8 months28.3% 195966 and 10 months29.2% 1960 and later6730 % *These percentages are approximate: they have not been rounded for ease of illustration purposes.
1 CREDIT FOR EACH $1,090 EARNED IN COVERED EMPLOYMENT 4 MAXIMUM OF 4 CREDITS/YR ($4,360) HOW CREDITS ARE EARNED IN 2009
WHO CAN GET RETIREMENT BENEFITS Worker Reduced benefits at 62 (must be insured-40 credits-10 years) Full Benefits at 65 (67 by 2027) Increased benefits for retirement after 65 (67 by 2027) Wife or Husband At 62 At any age if caring for a child of worker under 16 or disabled Divorced spouses also qualify in some cases Child Unmarried child under 18, or under 19 if still in high school Unmarried child disabled before age 22 who continues to be disabled
EARLY RETIREMENT BENEFITS (EARLIEST–AGE 62) Worker 5/9 of 1% (20% reduction for 1 st 36 months) 5/12 of 1% (10% reduction for next 24 months) Spouse (50% at full retirement age) 25/36 of 1% (25% reduction for 1 st 36 months) 5/12 of 1% (10% reduction for next 24 months) Reduction is permanent
WHO CAN GET SURVIVORS BENEFITS Widow/Widowers Reduced benefits at age 60 As early as age 50 if disabled At any age if caring for a child of worker under 16 or disabled Child Unmarried child under 18, or under 19 if still in high school Unmarried child disabled before age 22 who continues to be disabled Parents Age 62 and was receiving at least one-half support by deceased worker Lump Sum Death Payment – ($255) Living with or entitled spouse Entitled children
WHO CAN GET DISABILITY BENEFITS WORKER Must be Insured with current “FICA” work Any Age Age 62 Any age if caring for a child or worker under age 16 or disabled Divorced spouse SPOUSE CHILD Unmarried child under 18, or under 19 if still in high school Unmarried child disabled before age 22 who continues to be disabled
HOW WORK AFFECTS YOUR CHECKS IN 2009 UNDER “FULL RETIREMENT AGE” … $14,160/YR THE YEAR OF ““FULL RETIREMENT AGE”… $37,680/YR NO LIMIT FROM FULL RETIREMENT AGE!!!!
EARNINGS OVER THE LIMIT 0-FULL RETIREMENT AGE A deduction of $1 for every $2 earned is withheld from SS checks from the month of potential eligibility. YEAR OF ATTAINMENT OF “FULL RETIREMENT” A deduction of $1 for every $3 earned is withheld until the month of 65 or “full retirement age.”
FIRST YEAR RULE Regardless of your earnings from January to the month of retirement, you are eligible to receive SS checks for any months you are either not working or working and earning under the monthly limit (1/12 of the annual limit). FROM ATTAINMENT OF YOUR FULL RETIREMENT MONTH, THE SKY’S THE LIMIT!!!
MEDICARE COVERAGE 65 and older Receiving Social Security Disability benefits at least 24 months Permanent kidney failure Part A (Hospital Insurance) Covers most inpatient hospital expenses Part B(Supplementary Medical Insurance) Covers 80% doctor bills and other outpatient medical expenses after an annual deductible. Part D (Prescription Drug Coverage)
RETIREMENT BEFORE AGE 65 You must enroll in BOTH Medicare A&B within 3 months of age 65 to ensure coverage at 65! Medicare becomes the primary payer at age 65 Failure to do this results in a $$ penalty and a restricted enrollment period Exception: You are retired but covered under an “actively” employed spouse
MEDICARE While still “actively” working at age 65… FILE FOR MEDICARE PART A REFUSE PART B (not necessary if covered under employer plan) Upon retirement… FILE FOR MEDICARE PART B UNDER “SPECIAL ENROLLMENT” with no penalty and no lapse in coverage
APPLYING FOR SOCIAL SECURITY (1-800-772-1213) Inquire Before You Retire (Before January) Get facts 3 months before retirement All information can be obtained by phone Documents Needed Social Security number 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: Marriage Military or railroad service Other benefits Proof of legal status
ONLINE SERVICES NOW AVAILABLE!!! http://www.socialsecurity.gov/ 1-800-772-1213
WHAT YOU CAN DO ONLINE Apply for retirement/spouse’s benefits Apply for disability benefits Check the status of your online application www.socialsecurity.gov/applyforbenefits
WHAT YOU CAN DO BEFORE YOU APPLY Find out what benefits you can apply for (www.socialsecurity.gov/best)www.socialsecurity.gov/best Find out about extra help with Medicare prescription drug costs (www.social security.gov/i1020)
More choices… Use the benefit planner to calculate your retirement, survivor and disability benefits (www.socialsecurity.gov/planners)www.socialsecurity.gov/planners Request a “Social Security Statement” (www.socialsecurity.gov/statement)www.socialsecurity.gov/statement
IF YOU RECEIVE BENEFITS… Change your address or telephone number (www.socialsecurity.gov/coa)www.socialsecurity.gov/coa Get a replacement Medicare card (www.socialsecurity.gov/medicarecard)www.socialsecurity.gov/medicarecard Request a proof of income letter (www.socialsecurity.gov/beve)www.socialsecurity.gov/beve Get a Form 1099 (www.socialsecurity.gov/1099)www.socialsecurity.gov/1099
IF YOU HAVE A PASSWORD… Check your information and benefits (www.socialsecurity.gov/pcyb)www.socialsecurity.gov/pcyb Change your address or phone number (www.socialsecurity.gov/coa)www.socialsecurity.gov/coa Start or change direct deposit (www.socialsecurity.gov/pdd)www.socialsecurity.gov/pdd TO GET A PASSWORD… (www.socialsecurity.gov/password)