Chapter 7: Government-mandated Social Security Programs

Gainful work activity

1) Work performed for pay or profit, or 2) Work of a nature generally performed for pay or profit, or 3) Work intended for profit, whether or not a profit is realized

Supplemental Security Income (SSI)

A federal income supplement program funded by general tax revenues, which serves two purposes. First, the SSI program assists the aged, blind, and disabled people, who have little or no income. Second, this program provides cash to help these individuals meet basic needs for food, clothing, and shelter

Medicare tax

A hospital insurance tax that supports the Medicare Part A program

Medicare

A program that serves nearly all US citizens of at least age 65, and disabled Social Security beneficiaries, by providing insurance coverage for hospitalization, convalescent care, and major doctor bills

Social Security credits

A system of credits to determine whether eligible individuals qualify for OASDI and Medicare benefits

Automatic cost of living adjustments (COLAs)

Adjustments to annual benefits, applied each December, to account for changes in the cost of living based on the Consumer Price Index (CPI)

Social Security Administration (SSA)

Administers the federal retirement, survivors, and disability insurance programs, as well as the program of supplemental security income (SSI) for the aged, blind, and disabled, and performs certain functions with respect to the black lung benefits program. SSA also directs the aid to the aged, blind, and disabled in Guam, Puerto Rico, and the Virgin Islands

Disability (per SSA)

An inability to engage in any substantial gainful activity (SGA) because of a medically determinable physical or mental impairment(s): 1) That is expected to result in death, or 2) That has lasted or is expected to last for a continuous period of at least 12 months

Federal Unemployment Tax Act (FUTA)

Authorizes the collection of both federal and state payroll taxes from employers and specifies how these funds are to be used

Titles III and IX of the SSA

Authorizes the federal government to grant money to states to administer unemployment compensation, and it also establishes a federal unemployment insurance trust fund.

Suitable work

Contains two elements: 1) a job that requires skills, knowledge, and ability similar to a person's customary work 2) offers employment terms and conditions that do not violate relevant laws (e.g., violation of the minimum wage requirement of the FLSA of 1938)

Emergency unemployment Insurance (EUC) program

Due to the economic depression, as part of the Supplemental Appropriations Act of 2008, Congress provided 13 additional weeks of federally funded unemployment insurance benefits to unemployed workers who had exhausted all state unemployment insurance benefits for which they were eligible; expired in 2013.

Federal Insurance Contributions Act (FICA)

Federal law that requires workers and their employers to contribute to OASDI and Medicare (7.65%) Employers pay based on its payroll; Employees pay based on earnings

Medicare Prescription Drug Improvement and Modernization Act of 2003

Instituted a prescription drug benefit for Medicare program recipients (commonly known as Part D) aka Medicare Modernization Act

Taxable wage base

Limits the amount of annual wages or payroll cost per employee subject to taxation

Social good

Refers to a booming economy, low levels of unemployment, progressive wages and benefits, and safe and healthy working conditions

Old Age, Survivors, and Disability Insurance (OASDI)

Refers to programs that provide retirement income, income to the survivors of deceased workers, and income to disabled workers and their family members.

Average Indexed Monthly Earnings (AIME)

Represent a person's earnings prior to age 62, disability, or death, adjusted for changes in the person's earnings over the course of his or her employment, and for changes in average wages in the economy over the same period

Self-Employment Contribution Act (SECA)

Requires that self-employed individuals contribute to OASDI and Medicare at a higher rate (15.3%)

Primary Insurance Amount (PIA)

The monthly amount paid to a retired worker at the full retirement age or to a disabled worker

Consumer Price Index (CPI)

The most commonly used method for tracking changes in the costs of goods and services throughout the U.S.

Social Security number system

The nine digit number assigned to each US citizen, foreign student, and resident aliens

Unemployment Compensation Act of 2008

This law expanded the EUC benefits to 20 weeks nationwide (from 13 weeks), and it provided for 13 more weeks of EUC.