Social Security for UNY Human Resources
A Foundation for Planning Your Future A Foundation for Planning Your Future
Who Gets Benefits from Social Security? Who Gets Benefits from Social Security? 51 million people 7.4 million Disabled Workers, 1.8 million Dependents 4.6 million Widows/ Widowers 32.3 million Retired Workers 3 million Dependents 1.9 million Children of Deceased Workers 2/2009
Social Security Statement Social Security Statement
Use the New Retirement Estimator Use the New Retirement Estimator
Ready to Apply for Social Security Retirement Benefits?
You Need to Work to Earn Social Security Credits In 2010, each $ 1,120 in earnings gives you one credit You can earn a maximum of 4 credits per year Example: To earn 4 credits in 2010, you must earn at least $ 4,480. Earning 40 credits throughout your working life will qualify you for a retirement benefit.
How Social Security Determines Your Benefit Social Security benefits are based on earnings Step 1 Your wages are adjusted for inflation Step 2 Find the average of your 35 highest earnings years Step 3 Result is average indexed monthly earnings
Retirement Benefit Computation Social Security benefit amounts are figured with a weighted benefit formula that gives proportionately higher benefits to workers with low lifetime earnings. At FRA (Full retirement age): Low earner 56% Average earner 41% High earner 34%
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. Normal Computation WEP Computation 90% of the First $744 40% of the First $744 32% of the Next $3,739 32% of the Next $3,739 15% of the Remainder 15% of the Remainder
Government Pension Offset (GPO) If you receive a government pension based on work not covered by Social Security, your Social Security spouse s or widow(er) s benefits may be reduced. Spouse s Benefits Only 2/3 of amount of government pension will be used to reduce the Social Security spouse s benefits
Your Age When You Retire Affects Your Benefits If You re A Worker and Retire: At age 62, you get less money permanently At your full retirement age (age 65-67), you get your full benefit You get even more money if you work past your full retirement age (until age 70)
Full Retirement Age Year of Birth Full Retirement Age 1937 or earlier 65 1938 65 & 2 months 1939 65 & 4 months 1940 65 & 6 months 1941 65 & 8 months 1942 65 & 10 months 1943 1954 66 1955 66 & 2 months 1956 66 & 4 months 1957 66 & 6 months 1958 66 & 8 months 1959 66 & 10 months 1960 or later 67
You Can Work And Still Receive Benefits If You Are You Can If You Make More, Make Up To Some Benefits Will Be Withheld Under Full Retirement Age 2010 $14,160 ($1180/mo.) $1 for every $2 In FRA Year $1 for every $3 2010 $37,680 ($3140/mo.) until month of FRA Full Retirement Age and Above No Limit No Limit
In Addition to the Retiree, Who Else Can Get Benefits? Your Spouse At age 62 At any age if caring for child under 16 or disabled Divorced spouses may qualify Your Child Not married under 18 (under 19 if still in high school) Not married and disabled before age 22
Spouses Benefits Currently Married Currently Married 12 month marriage Age 62 Worker entitled If under 62--disabled child or child under age 16 in care
Spouses Benefits Currently Divorced Divorced 10 year marriage Age 62 Worker age 62 Ex-spouse not married; worker can be married
Who Can Get Survivors Benefits? Widow or Widower Reduced benefits at age 60 At any age if caring for child under 16 or disabled If disabled as early as age 50 Divorced widows/widowers may qualify If Your Child Is: Not married under age 18 (under 19 if still in high school) Not married and disabled before age 22
Widow/Widowers Benefits (1) OPTIONS Take reduced retirement payments at age 62 on your own record, and then receive the unreduced widow's benefit at full retirement age. Take reduced widow's benefits until you reach full retirement age and then file a claim for retirement benefits on your own record. Decision depends on the amount of the benefit
Effect of Marriage Widow/Widowers Benefits (2) If you remarry before reaching age 60, you cannot receive widow's benefits as long as that marriage remains in effect. If you remarry after age 60, there is no loss of entitlement. Note: if your current spouse receives Social Security, you should check to see if you would qualify for higher benefits on that account. You cannot get both.
What You May Need When Applying for Your Social Security Benefits? If you file online, Social Security will contact you if additional documentation is needed for your claim. Social Security might need: Social Security Number for each applicant Proof of Age/ Proof of Citizenship/immigration status 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 s Disability Definition: Social Security s Disability Definition: The law defines disability as the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment(s) which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. The determination also considers age, education & work experience. In 2010, substantial gainful activity (SGA) is $1000.
Who Can Get Disability Benefits? Who Can Get Disability Benefits? Worker Recent Work 5 years of work in the 10 years ending with the year disability begins Younger workers may qualify with fewer credits. Duration of Work total amount of work needed (depends on age) Spouse At age 62 At any age if caring for child under 16 or disabled Divorced spouses may qualify Child Not married under 18 (under 19 if still in high school) Not married and disabled before age 22
65 & older Who Can Get Medicare? Who Can Get Medicare? Receiving Social Security disability benefits at least 24 months Lou Gehrig s Disease (Amyotrophic Lateral Sclerosis-ALS). There is no waiting period for ALS) Permanent Kidney Failure*** *** A worker s spouse or child may be eligible if he/she receives dialysis for kidney failure or had a transplant, even if no one else gets Medicare.
When Can I Sign Up for Medicare? When Can I Sign Up for Medicare? Medicare Enrollment Periods: Initial - at age 65 3 months before age 65, and up to 3 months after age 65 Special - if still working Special - if still working General - January-March, every year General - January-March, every year
Signing Up for Medicare www.socialsecurity.gov Questions about Medicare? 1-800-MEDICARE www.medicare.gov
Social Security s Online Services If You Get Benefits Change your address or telephone number. Get a replacement Medicare Card. Request a Proof of Income letter. Get a Form 1099 Replace the lost, damaged, or missing tax summary of your Social Security benefits Get a password when You want password access to information about your benefits. You lost, forgot, or do not have your password or password request code (PRC). Your password request code has expired Block electronic and automated telephone access to your personal information.
Social Security: Financial Planning Toolkit When to Start Receiving Retirement Benefits www.socialsecurity.gov/pubs/10147.pdf Publication Number 05-10147 ICN 480136 Windfall Elimination Provision www.socialsecurity.gov/pubs/10045.pdf Public Number 05-10045 ICN 460275
Social Security: Financial Planning Toolkit A Snapshot www.socialsecurity.gov/pubs/10006.html Publication Number 05-10006 ICN 451421 Update 2010 www.socialsecurity.gov/pubs/10003.html Publication Number 05-10003 ICN 451385
Social Security: Financial Planning Toolkit Online Retirement Estimator www.socialsecurity.gov/pubs/10510.html Publication Number 05-10510 ICN 470114 How to Use the Online Retirement Estimator www.socialsecurity.gov/pubs/10511.html Publication Number 05-10511 ICN 470115
Social Security: Financial Planning Toolkit Retire Online It s So Easy! www.socialsecurity.gov/pubs/10522.html Publication Number 05-10522 ICN 470135 How to Apply Online for Retirement Benefits www.socialsecurity.gov/pubs/10523.html Publication Number 05-10523 ICN 470140