Guide to
Social Security Benefits
Part
3
What You Need To Know When You Become
Eligible For
Social Security
How
And When To Sign Up For Social Security
You can apply for
benefits at any Social Security office. The
easiest way to file a claim is to call our toll-free number ahead
of time for an appointment. That number is: 1-800-772-1213.
For disability,
survivors, and SSI benefits, you should apply
as soon as you're eligible. (The rest of this chapter will
help you decide if and when you are.) When signing up for retirement,
we ask that you talk to a Social Security representative
in the year before the year you plan to retire. That's
because the rules are complicated, and it may be to your advantage
to start your retirement benefits before you actually stop
working.
What
Records Will You Need?
To show that you are
eligible for Social Security and to help
us decide how much your benefits should be, there are certain
documents we may ask you to provide. The ones you'll need
depend on the circumstances of your claim. Here is a list of
some of the documents you may need when you sign up for Social
Security:
-
Your Social
Security card (or a record of your number);
-
Your birth
certificate;
-
Children's birth
certificates (if they are applying);
-
Marriage
certificate (if signing up on a spouse's record);
-
Your most recent
W-2 form, or your tax return if you're self-employed.
This is just a
partial list to help you get prepared. When you
actually sign up for Social Security, we'll let you know if other
documents are needed.
Here's An Important
Point: If you don't have all the documents
you need, don't delay signing up for Social Security. We'll
help you get the information you need.
Direct
Deposit
You have a choice of
how you receive your Social Security or
SSI payments. Your benefit can either be deposited directly into
your bank account or come to you in the mail. Most people have
their benefits deposited in their bank account because it is
safer and more convenient than receiving checks. It is also more
efficient and saves money for the government.
If you choose direct
deposit, have your checkbook or any papers
that show your bank account number with you when you sign
up for Social Security.
Retirement
Benefits
This section of the report
provides a brief overview of Social
Security retirement benefits. If you want to learn more about
the program, call or visit Social Security to ask for a free
copy of the report, Retirement (Publication No. 05-10035).
Full Retirement
If you were born
before 1938, you will be eligible for your
full Social Security benefit at the age of 65.
However, beginning
in the year 2000, the age at which full benefits
are payable will increase in gradual steps from 65 to 67.
This affects people born in 1938 and later. For example, if you
were born in 1940, your full retirement age is 65 and 6 months.
If you were born in 1950, your full retirement age is 66.
Anybody born in 1960 or later will be eligible for full retirement
benefits at 67.
Reduced Benefits As
Early As 62
No matter what
your "full" retirement age is, you may start
receiving benefits as early as 62. However, if you start your
benefits early, they are reduced five-ninths of one percent
for each month before your "full" retirement age. For example,
if your full retirement age is 65 and you sign up for Social Security
when you're 64, you will receive 93 1/3 percent of
your full benefit. At 62, you would get 80 percent. (Note: The
reduction will be greater in future years as the full retirement
age increases.)
Here's An
Important Point:
There are disadvantages and advantages
to taking your benefit before your full retirement age.
The disadvantage is that your benefit is permanently reduced.
The advantage is that you collect benefits for a longer
period of time. Each person's situation is different, so make
sure you check with Social Security before you decide to retire.
What About Late
Retirement?
Some people
continue to work full time beyond their full retirement
age--and they do not sign up for Social Security until
later. This delay in retirement can increase your Social
Security benefit in two ways:
-
Your extra
income usually will increase your "average" earnings,
and the higher your average earnings, the higher your
Social Security benefit will be.
-
In addition, a
special credit is given to people who delay retirement.
This credit, which is a percentage added to your
Social Security benefit, varies depending on your date
of birth. For people turning 65 in 1994, the rate is 4.5
percent per year. That rate gradually increases in future
years, until it reaches 8 percent per year for people
turning 65 in 2008 or later.
How Much Will You
Get?
See: "How
Much Will You Get From Social Security?", where we
explained how you can get a personalized estimate
of the benefits you are due.
Disability
Benefits
This section of the report
provides a brief overview of Social
Security's disability program. It concentrates primarily on
benefits for people who have worked and earned enough Social Security
"credit" to qualify for disability on their own work record.
However, it is
important to note that other kinds of disability
benefits are available from Social Security, depending
on your circumstances. These include:
-
Widows and
widowers with disabilities who are eligible for benefits
on the record of a spouse;
-
People with
disabilities who have low income and few assets
who might be eligible for SSI benefits;
-
Children over
age 18 with disabilities who might be eligible
for Social Security benefits on the record of a parent,
or children of any age with disabilities who might be
eligible for SSI benefits on their own.
For More
Information: Because disability is one of the most
complicated of all Social Security programs, we recommend that
you call or visit Social Security to ask for a free copy of
the report, Disability (Publication No. 05-10029), for more in-depth
information.
For information
about benefits available to children with disabilities,
see "SSI For People With
Disabilities" below, or call or visit Social
Security and ask for a free copy of the publication, Social
Security and SSI Benefits For Children With Disabilities (Publication
No. 05-10026).
What
Do We Mean By "Disability"?
What is a
"disability"? The dictionary defines it as "a physical
or mental condition that prevents a person from leading
a normal life." But Social Security's definition of disability
is more specific and is generally related to your ability
to work.
To qualify for
disability from Social Security, you must have
a physical or mental impairment that is expected to keep you
from doing any "substantial" work for at least a year. Generally,
monthly earnings of $500 or more are considered substantial.
Or you must have a condition that is expected to result
in your death.
This is a strict
definition of disability. Unlike many private
pension plans or even other government disability programs,
Social Security is not intended for a temporary condition.
In other words, there is no such thing as a "partial"
disability payment from Social Security.
What You Should Do
If You Become Disabled
If you become
disabled, you should file for disability benefits
as soon as possible. You can do this by calling or visiting
any Social Security office.
You can shorten
the time it takes to process your claim if you
have the following medical and vocational information when you
apply:
-
The names,
addresses, and phone numbers of your doctors, and
of hospitals, clinics, etc., where you have been treated;
and
-
A summary of
where you worked in the last 15 years and the kind
of work you did.
Here's An
Important Point:
Social Security's disability rules
are different from those of other private plans or government
agencies. So the fact that you qualify for disability
from somebody else does not mean you will be eligible
for Social Security. Further, the fact that you have a statement
from your doctor indicating you are disabled does not mean
you will be automatically eligible for Social Security disability
payments.
When Do Your
Disability Benefits Start?
If we decide you
are disabled, in most cases your monthly benefits
will begin with the sixth full month of your disability.
Here's a simple example of how this works:
John has a
severe heart attack on March 15. He files for disability
on March 29, and his claim is approved on May 30.
September is the sixth full month that he is disabled, so
his benefits begin that month. Social Security checks are
usually paid on the third of the following month, so John's
first check (the September check) will arrive October
3.
Here's An
Important Point:
Do not delay signing up for Social
Security because of this "waiting period." By filing early,
all the paperwork will be processed before your first check
is due. There is no waiting period for disabled children's
benefits or for SSI disability payments.
How Much Will You
Get?
See: "How
Much Will You Get From Social Security?", where we
explained how you can get a personalized estimate
of the benefits you are due.
Workers'
Compensation
If you get
workers' compensation or certain other government
disability benefits, your Social Security disability benefit
may be reduced. Or, your Social Security benefits may reduce
your other disability payments. The sum of all disability
payments to you and your family cannot exceed 80 percent
of your earnings averaged over a period of time shortly before
you became disabled.
How Long Will Your
Disability Benefits Continue?
You will continue
to get disability benefits unless your condition
improves or you return to "substantial"
work . We check your claim periodically to determine if this is
the case. To help us decide, you may be asked to undergo a special
test or examination that we will pay for.
Incentives To Return
To Work
There are special
rules that help people who would like to return
to work but are concerned about the effect this might have
on their disability benefits. These rules offer special incentives
that permit people to try working without the risk of
a sudden loss of their monthly benefits and their Medicare coverage.
For More
Information: If you would like to learn more about
these special work incentives, call or visit Social Security
to ask for a free copy of the report, Working While Disabled...
How Social Security Can Help (Publication No. 05-10095).
Benefits
For Your Family
This section of the report
provides a brief overview of benefits
payable to members of your family when you are eligible
for retirement or disability benefits.
Who Can Get
Benefits?
When you start
collecting Social Security retirement or disability
benefits, other members of your family might also be eligible
for payments. For example, benefits can be paid to:
-
Your husband or
wife if he or she is 62 or older (unless he
or she collects a higher Social Security benefit on his or
her own record);
-
Your husband or
wife at any age if he or she is caring for your
child (the child must be under 16 or disabled and receiving
Social Security benefits);
-
Your children,
if they are unmarried and:
--Under 18; or
--Under 19 but in elementary or secondary school as a full-time
student; or
--18 or older and severely disabled (the disability must have
started before age 22).
How Much Can Family
Members Get?
Usually, each
family member will be eligible for a monthly benefit
that is up to 50 percent of your retirement or disability
rate. However, there is a limit to the amount of money
that can be paid to a family on your Social Security record.
The limit varies, but is generally equal to about 150 to
180 percent of your retirement benefit. (It may be less for disability
benefits.) If the sum of the benefits payable on your
account is greater than this family limit, then the benefits
to the family members will be reduced proportionally. Your
benefit will not be affected.
Benefits For
Divorced People
If you are
divorced (even if you have remarried), your ex-spouse
can be eligible for benefits on your record. In some situations,
he or she could get benefits even if you're not receiving
them. In order to qualify, your ex-spouse must:
-
Have been
married to you for at least 10 years;
-
Be at least 62
years old;
-
Be unmarried;
-
Not be
eligible for an equal or higher benefit on his or her
own Social Security record, or on someone else's Social
Security record.
Here's An
Important Point:
If your ex-spouse receives benefits
on your account, it does not affect the amount of any benefits
payable to you or your other family members.
Survivors
Benefits
This section of the report
provides a brief overview of the
benefits payable when a family breadwinner dies. For more information,
call or visit Social Security to ask for a free copy
of the report, Survivors (Publication No. 05-10084).
Who Can Receive
Survivors Benefits?
When you die,
certain members of your family may be eligible
for benefits on your Social Security record if you had earned
enough credits while you were working.
The family members
who can collect benefits include:
-
A widow or
widower who is 60 or older;
-
A widow or
widower who is 50 or older and disabled;
-
A widow or
widower at any age if she or he is caring for a child
under 16 or a disabled child who is receiving Social Security
benefits;
-
Children if
they are unmarried and:
--Under 18; or
--Under 19 but in an elementary or secondary school as a full-time
student; or
--18 or older and severely disabled (the disability must have
started before age 22);
-
Your parents,
if they were dependent on you for at least half
of their support.
Special One-Time
Death Benefit
If you had enough
credits, a special one-time payment of $255
also will be made after your death. This benefit is paid only
to your widow(er) or minor children.
Benefits To Divorced
Widows And Widowers
If you are
divorced (even if you have remarried), your ex-spouse
will be eligible for benefits on your record when you die.
In order to qualify, your ex-spouse must:
-
Be at least 60
years old (or 50 if disabled) and have been married
to you for at least 10 years;
-
Be any age if
caring for a child who is eligible for benefits
on your record;
-
Not be
eligible for an equal or higher benefit on his or her
own record;
-
Not be
currently married, unless the remarriage occurred after
60--or 50 for disabled widows. (In cases of remarriage
after the age of 60, your ex-spouse will be eligible
for a widow's benefit on your record or a dependent's
benefit on the record of his or her new spouse,
whichever is higher.)
Here's An
Important Point:
If your ex-spouse receives benefits
on your account, it does not affect the amount of any benefits
payable to other survivors on your record.
How Much Will Your
Survivors Get?
The amount payable
to your survivors is a percentage of your
basic Social Security benefit--usually in a range from 75 percent
to 100 percent each. However, there is a limit to the amount
of money that can be paid each month to a family. The limit
varies, but is generally equal to about 150 to 180 percent
of your benefit rate. If the sum of the benefits payable
to your surviving family members is greater than this limit,
then the benefits to your family will be reduced proportionately.
The Personal
Earnings and Benefit Estimate Statement, will provide you with a
more accurate measurement of
potential survivors benefits payable on your record.
Retirement Benefits
For Widow(er)s
If you are
receiving widows or widowers (including divorced
widows or widowers) benefits, you should remember that you
can switch to your own retirement benefits (assuming you're eligible
and your retirement rate is higher than your widow's rate)
as early as age 62. In many cases, a widow(er) can begin receiving
one benefit at a reduced rate and then switch to the other
benefit at an unreduced rate at age 65. The rules are complicated
and vary depending on your situation, so you should talk
to a Social Security representative about the options available
to you.
Supplemental
Security Income
This section of the report
provides a brief overview of the
Supplemental Security Income (SSI) program. For more information,
call or visit Social Security to ask for a free copy
of the report, SSI (Publication No. 05-11000).
What Is Supplemental
Security Income?
Supplemental
Security Income is usually called "SSI" for short.
Although this program is run by Social Security, the money
to pay for SSI benefits does not come from Social Security
taxes or Social Security trust funds. SSI payments are financed
by the general revenue funds of the U.S. Treasury. SSI
makes monthly payments to people who have low incomes and
few assets. In addition, to get SSI you must:
And you must be:
-
65 or older;
or
-
Blind; or
-
Disabled.
Here's An
Important Point:
Children as well as adults can get
SSI benefits because of blindness or disability. See "SSI For People With Disabilities--Including Children"
below for more information.
Income And Asset
Limits For SSI
To get SSI, your
income and the value of the things you own
must be below certain limit.
By the term
income, we mean the money you have coming in such
as earnings, Social Security, or other government checks, pensions,
etc. But we also mean "non-cash" items you receive such
as the value of free food and shelter.
How much income
you can have and still get SSI depends on whether
you work or not--and in which state you live. Although there
is a basic national SSI payment rate, some states add money
to the national payment, so they have higher SSI rates and
higher income limits than others. Check with your local Social
Security office to find what the SSI rates and income limits
are in your state.
Assets are the
things you own such as property, cash, and bank
accounts. But we don't count everything you own when we decide
if you can get SSI. For example, we don't count your home
and many of your personal belongings, and we usually don't count
your car.
You may be able to
get SSI if the things you own that we count
are worth no more than:
Unlike the income
category, these limits do not change from
state to state.
How Much Can You Get
From SSI?
How much you will
get from SSI depends on your other income
and where you live. The basic monthly SSI check is the same
in all states--$446 for one person and $669 for a couple. But
some states add money to the basic rate, so you may get more
if you live in one of these states. You will get less if you
have other income or if someone helps pay for your food and shelter.
For more
information about SSI rates in your state, contact
your local Social Security office.
SSI
For People With Disabilities--Including Children
People with
disabilities including children, can get SSI if
their income and assets are below the limits discussed in the
previous sections.
Most of the rules
used to decide if a person has a condition
severe enough to qualify for Social Security disability
benefits also apply to SSI.
And as with Social
Security, the SSI program has special plans
designed to help people who want to try going back to work
without the risk of suddenly losing their benefits or Medicaid
coverage. To learn more about these special plans, ask for
a copy of the report, Working While Disabled... How Social Security
Can Help (Publication No. 05-10095).
Social Security
has special guidelines for evaluating disability
in children filing for SSI benefits. If you have a child
with a disability, contact your local Social Security office
to apply for SSI disability benefits. For
special information about benefits for children with disabilities,
ask for a copy of the publication, Social Security
and SSI Benefits For Children With Disabilities (Publication
No. 05-10026).
Other Help You Can
Get
Most people who
get SSI can also get food stamps and "Medicaid"
assistance. Medicaid, which is a different program than
Medicare, helps pay doctor and hospital bills. For more information
about food stamps, ask Social Security for a copy of
the fact sheet Food Stamp Facts Publication No. 05-10101).
For more
information about Medicaid, contact your local social services
office.
Medicare
Medicare is our
country's basic health insurance program for
people 65 or older and many people with disabilities. You
should not confuse Medicare and Medicaid. Medicaid is a
health insurance program for people with low income and limited
assets. It is usually run by state welfare or social service
agencies. Some people qualify for one or the other; some
qualify for both Medicare and Medicaid.
This report provides
only a brief overview of the Medicare
program. If you would like to learn more about Medicare,
call or visit Social Security to ask for a free copy of
the report, Medicare (Publication No. 05-10043).
Medicare Has Two
Parts:
-
Hospital
insurance (sometimes called "Part A") -- This helps
pay for inpatient hospital care and certain follow up services;
and
-
Medical
insurance (sometimes called "Part B") -- This helps
pay for doctors' services, outpatient hospital care, and
other medical services.
Who Is Eligible For
Hospital Insurance (Part A)?
Most people get
hospital insurance when they turn 65. You qualify
for it automatically if you are eligible for Social Security
or Railroad Retirement benefits. Or you may qualify on a
spouse's (including divorced spouse's) record. Others qualify because
they are government employees not covered by Social Security
who paid the Medicare part of the Social Security tax. In
addition, if you have been getting Social Security disability
benefits for 24 months, you will qualify for hospital
insurance.
Also, people who
have permanent kidney failure that requires
maintenance dialysis or a kidney replacement qualify for
hospital insurance if they are insured or if they are the spouse
or child of an insured worker.
Almost everybody
qualities for hospital insurance through one
of the above methods. But if you don't and if you're 65 or older,
you can buy hospital insurance just like you can buy other
health insurance policies.
Who Can Get Medical
Insurance (Part B)?
Almost anyone who
is eligible for hospital insurance can sign
up for medical insurance. Unlike Part A, which was paid for
by your taxes while you worked and is free when you're eligible
for it, Part B is an optional program that generally costs
$41.10 per month. Almost everybody signs up for this part of
Medicare.
How Do You Get
Medicare?
If you are already
getting Social Security benefits when you
turn 65, you will be automatically enrolled in Medicare (although
you have the opportunity to turn down "Part B"). If
you are disabled, you will be automatically enrolled in Medicare
after you have been getting disability benefits for 24 months.
(And you can turn down "Part B" if you want.)
If you turn 65 but
plan to keep working and do not plan to sign
up for Social Security at that time, you should call or visit
a Social Security office so we can help you decide if you should
sign up for Medicare only.
There are many
other rules associated with Medicare enrollment
including penalties for not enrolling in Part B when you're
first eligible. Please contact your Social Security office
for more details.
What Does Medicare
Pay For?
Medicare hospital
insurance helps pay for:
Medicare medical
insurance helps pay for:
-
Doctors'
services;
-
Outpatient
hospital services;
-
Home health
visits;
-
Diagnostic
X-ray, laboratory, and other tests;
-
Necessary
ambulance services; and
-
Other medical
services and supplies.
What Medicare Does
Not Pay For
Not all health
services are covered by Medicare. For example,
Medicare does not pay for:
-
Custodial
care;
-
Dentures and
routine dental care;
-
Eyeglasses,
hearing aids, and examinations to prescribe and
fit them;
-
Nursing home
care (except skilled nursing care);
-
Prescription
drugs; and
-
Routine
physical checkups and related tests.
Help For Low-Income
Medicare Beneficiaries
If you get
Medicare and have low income and few resources, your
state may pay your Medicare premiums and, in some cases, other
"out-of-pocket" Medicare expenses such as deductibles and
coinsurance. Only your state can
decide if you qualify. To find out
if you do, contact your state or local welfare office or Medicaid
agency. For more general information about the program,
contact Social Security and ask for a copy of the leaflet,
Medicare Savings For Qualified Beneficiaries (HCFA Publication
No. 02184).
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