Lesson 8: Social Security

All of the following family members may be eligible to receive disability benefits as the result of the disabled person's work record EXCEPT: An unmarried child if disabled before age 19 A spouse caring for a child under the age of 16, or disabled A spouse age 62 or older Disabled widow or widower age 50 or older

An unmarried child if disabled before age 19 - The following family members may be eligible to receive disability benefits as the result of the disabled person's work record: 1. An unmarried child under the age 18, or age 19 if a full-time student; 2. An unmarried child if disabled before age 22; 3. A spouse caring for a child under the age of 16, or disabled; 4. A spouse age 62 or older; 5. A disabled widow or widower age 50 or older; 6. A disabled surviving divorced spouse age 50 or older if the marriage lasted at least 10 years.

Social Security benefits are a paid percentage of a workers': Potential Insurance Amount (PIA). Principal Insurance Amount (PIA). Previous Insurance Amount (PIA). Primary Insurance Amount (PIA).

Primary Insurance Amount (PIA) - Social Security benefits are expressed as a percentage of the worker's primary insurance amount (PIA). PIA is calculated by using the average monthly earnings for the years the worker has paid into the system.

A person is determined to be disabled under Social Security rules of all of the following requirements are met EXCEPT: They cannot do work that they previously did The SSA decides that they cannot adjust to other work because of their medical condition The disability has lasted or is expected to last for at least six months or may result in death The disability has lasted or is expected to last for at least one year or may result in death

The disability has lasted or is expected to last for at least six months or may result in death

The definition of disability under Social Security is different than other programs. Social Security pays only for: permanent total disability only. partial and total disability. partial and short term disability. short term total disability.

permanent total disability only - The definition of disability under Social Security is different than other programs. Social Security pays only for total disability. No benefits are payable for partial or short-term disability.

All of the following benefits are available under Social Security except: welfare benefits. death benefits. old-age or retirement benefits. disability benefits.

welfare benefits - Social Security provides death benefits, old-age (retirement) benefits, and disability benefits to eligible workers. Social Security is an entitlement program, not a welfare program.

In order to receive monthly disability benefits you must be totally disabled for how long? 5 months 6 months 12 months 24 months

12 months - Social Security defines total disability as the inability to engage in any substantially gainful occupation as the result of a medically determinable physical or mental condition which will last for at least 12 months or end in death.

Betty, who is age 67, recently started receiving her Social Security retirement benefits. What will the affect on her benefits be if she continues to work and earn $15,000 this year? For each $2 that Betty earns above the annual limit, $1 in her benefits will be reduced. Betty's Social Security benefits will be reduced because she is under age 70. Betty's Social Security benefits will be reduced because her earnings exceed the annual earnings limit. Betty's Social Security benefits will not be reduced.

Betty's Social Security benefits will not be reduced - Before the law changed, anyone under age 70 who received Social Security retirement benefits and continued to work could earn only a certain amount of income each year without having their benefits reduced. Under current law, a person can continue working and receive Social Security benefits with no limit on earnings starting with the month the person reaches full retirement age. Because Betty has reached full retirement age, she can work without having her Social Security benefits reduced.

Which of the following is NOT true of Social Security? It provides a retirement and survivor benefits to a worker and his family. It provides the major source of income in order to live care free during retirement. It adds to a personal insurance and savings plan. It provides the basic protection against the financial problems accompanying old age, death and disability.

It provides the major source of income in order to live care free during retirement - Social Security remains to help working Americans with the financial problems brought on by retirement, death and disability.

Sam has worked for the past 20 years as a construction worker. Seven months ago he injured his back and has not been able to work since. Which of the following statements is correct? Sam will be eligible for Social Security disability benefits after satisfying a waiting period of 10 consecutive months, during which he must be disabled. Sam will be eligible for Social Security disability benefits if he is unable to engage in any substantial gainful work and his disability is expected to last at least 12 months. Sam will be eligible to receive Social Security disability benefits paid retroactively for as long as six months (excluding the waiting period). Sam is not eligible for Social Security disability benefits.

Sam will be eligible for Social Security disability benefits if he is unable to engage in any substantial gainful work and his disability is expected to last at least 12 months - To be eligible for Social Security disability benefits, Sam must be unable to engage in any substantial gainful work. In addition, the disability must be expected to last at least 12 months or to result in his earlier death. Benefits begin only after he has satisfied a waiting period of five consecutive months, during which he must be disabled. Benefits may be paid retroactively for as long as 12 months (excluding the waiting period) preceding the date an application for benefits is filed.

Of the following, which statement is correct? Lester, age 25, who recently became totally and permanently disabled, may qualify for Social Security benefits, as long as he is classified as currently insured. Continuing to work after retirement will have no effect on a retiree's Social Security benefits. When an eligible worker dies, Social Security does not provide death benefits to surviving dependents. The Social Security program is funded by a payroll tax.

The Social Security program is funded by a payroll tax - Social Security is funded through a special payroll and self-employment tax paid by employees, employers, and the self-employed. This tax is commonly referred to as FICA (Federal Income Contributions Act). Wage-earners pay a tax on wages up to a specified maximum through payroll deduction.