17 - Social Security

Jessica, a widow, stopped receiving survivor Social Security benefits when her son turned 16. At what age will she be eligible to start receiving benefits again? A) 60. B) 65. C) 59 1/2. D) 62.

A) 60. The "blackout period" begins when the youngest child turns 16 and continues until the spouse reaches age 60, at the earliest. If there are no eligible children with the surviving spouse when the breadwinner dies, the blackout period starts immediately.

What is the interval spanning between the day when the youngest child of a family turns 16 and before the surviving spouse turns age 60 called? A) Blackout period. B) Blackout interval. C) Accumulation period. D) Nonpayment period.

A) Blackout period. The blackout period begins when the youngest child turns 16 and continues until the spouse reaches age 60, at the earliest. If there are no eligible children with the surviving spouse when the breadwinner dies, the blackout period starts immediately.

Rudy is eligible for full death, retirement, and disability benefits under Social Security. His worker status is? A) fully insured. B) partially insured. C) currently insured. D) completely insured.

A) fully insured. The correct answer is "fully insured". Fully insured workers are eligible for full retirement income benefits at their full retirement age (FRA).

Under Social Security, in order to be considered fully insured, the worker must have worked how many years and received how many quarters? A) 20 years or less and 40 full quarters. B) 10 years and 40 full quarters. C) 40 years or less than 10 quarters. D) 40 years and 10 full quarters.

B) 10 years and 40 full quarters. Workers are fully insured if they have accumulated the required number of credits based on their age. For most people, the required number of credits is 40 (representing approximately 10 years of work).

Jan, a single, working mother, dies at age 40. Dave, her only son, would receive a one-time lump-sum benefit of? A) $500. B) $2,555. C) $1,000. D) $255.

D) $255. The maximum lump-sum death benefit to a deceased worker's surviving spouse or children is $255.

Social Security benefits include all of the following, EXCEPT? A) Retirement benefits. B) Medicare benefits. C) Disability benefits. D) Unemployment benefits.

D) Unemployment benefits. Social Security has disability, retirement, and Medicare benefits. Unemployment benefits are not included with this.

How is Social Security (OASDI) funded? A) Sales taxes. B) Treasury Bonds. C) Federal grants. D) Payroll taxes.

D) Payroll taxes. OASDI is supported by a payroll tax, paid by employees, employers, and self-employed individuals.

Which of the following does the FICA tax fund? A) Social Security(OASDI) and Medicare benefits. B) Social Security(OASDI) and Unemployment benefits. C) Unemployment and Medicaid benefits. D) Medicare and Railroad Retirement System benefits.

A) Social Security(OASDI) and Medicare benefits. A majority of FICA tax is used to fund Social Security benefits. The remaining portion funds Medicare benefits.

Larry died in an automobile accident. His survivors are eligible for limited Social Security benefits. Larry's insured status was? A) Conditionally insured. B) Half insured. C) Insured. D) Partially insured.

D) Partially insured. To be considered partially insured, a worker must have earned 6 credits during the 13-quarter period ending with the quarter in which the worker died.

FICA tax is applied to an employee's income up to a certain income amount. This amount is called? A) average indexed monthly earnings. B) average monthly wage. C) primary insurance amount. D) taxable wage base.

D) taxable wage base. The payroll, or FICA tax, is applied to employees' incomes up to a certain limit, called the taxable wage base.

In determining Social Security retirement benefits, which of the following statements is CORRECT? A) The PIA is a determination of the amount equal to the worker's full retirement benefit at the worker's full retirement age. B) The Primary Insurance Amount (PIA) determines the worker's average indexed monthly earnings (AIME). C) Workers retiring past age 59th can receive 100% of their PIA. D) Average monthly wages (AMW) are adjusted for inflation.

A) The PIA is a determination of the amount equal to the worker's full retirement benefit at the worker's full retirement age. The Primary Insurance Amount (PIA) is the amount equal to the worker's full retirement benefit at age 65.

Individuals covered by Social Security include all of the following EXCEPT? A) Federal employees (after 1984). B) Railroad workers. C) Small business owners. D) State workers who are not covered by state pension plans.

B) Railroad workers. Railroad workers are covered under a separate federal program, the Railroad Retirement System.

If Martha would like to receive Social Security retirement benefits prior to age 65, what age can she do this? A) 60. B) She cannot receive benefits prior to age 65. C) Whenever she has accumulated the required work credits. D) 62.

D) 62. A qualified worker may start receiving permanent reduced Social Security retirement benefits starting at age 62.

Delores just received her first Social Security Disability payment. What can we correctly assume about her? A) She is at least 65 years old. B) She has applied for Medicare. C) She became disabled 12 months ago. D) Her disability is expected to last at least 12 months.

D) Her disability is expected to last at least 12 months. The qualification for Social Security Disability benefits is subject to rigid requirements. One of these requirements states the disability must be the result of a physical or mental impairment expected to last at least 12 months.

Which of the following examples pertaining to Social Security benefits is CORRECT? A) Lola, age 30, has a daughter, age 10. Her husband, who is covered under Social Security, died unexpectedly last month following surgery. Both Lola and her daughter are entitled to receive monthly survivor benefits until her daughter reaches age 18. B) Arlene, the 20-year-old daughter of a fully insured retired worker, becomes totally and permanently disabled from injuries received in a car accident. Because her disability occurred after age 16, Arlene is not eligible for her father's Social Security benefits. C) Simon was a fully employed worker at the time of his death. His surviving spouse will receive a lump-sum death benefit of $2,250. D) Mason, who is married with one son, age 16, is a fully insured retired worker receiving Social Security benefits. In addition, his spouse is eligible for benefits at age 62 and his son is eligible for benefits until he is 18 years old.

D) Mason, who is married with one son, age 16, is a fully insured retired worker receiving Social Security benefits. In addition, his spouse is eligible for benefits at age 62 and his son is eligible for benefits until he is 18 years old. The spouse of any worker eligible for retirement benefits is entitled to an old age income at a reduced amount starting at age 62. An unmarried child of a worker on retirement income is generally eligible to receive a monthly benefit until the child turns 18.

What is the formal name for Social Security? A) Advanced Age Survivors Disability Insurance. B) Qualifed Age Survivors Disability Insurance. C) Retirement Age Survivors Disability Insurance. D) Old Age Survivors Disability Insurance.

D) Old Age Survivors Disability Insurance. The Social Security program, enacted in 1935 and administered at the federal level by the Social Security Administration, is more formally called OASDI. This acronym aptly identifies the types of protection provided under the program: "Old Age" (retirement), "Survivors" (death benefits), and "Disability Insurance".

The period in which there are no Social Security benefits for the surviving spouse is called the? A) ineligible period. B) elimination period. C) dependency period. D) blackout period.

D) blackout period. The blackout period begins when the youngest child turns 16 and continues until the spouse reaches age 60, at the earliest. If there are no eligible children with the surviving spouse when the breadwinner dies, the blackout period starts immediately.