Chapter 11

Under what conditions is a children's benefit payable under Social Security? How is "child" defined for benefit purposes?

1. A child may be an unmarried child under age 18 2. An unmarried child over 18 who is disabled providing the disability commenced before age 22. 3. An unmarried child under age 19 who is a full-time student in a secondary school

Identify and briefly describe the classes of benefits that are provided to injured workers under the workers compensation laws.

1. Medical expenses: Are covered without limit. 2. Total temporary disability: When a worker is unable to work but will clearly recover. 3. Partial temporary disability: When a worker cannot pursue his or her won occupation but can engage in some type of work. Compensation is based on the differences in percentage of wages. 4. Total permanent disability: When a worker is unable to obtain any gainful employment because of an injury with no expected change. Benefits are payable for life. 5. Partial permanent disability: Losing an arm/ Injuring spine. 6. Survivors' death benefits: Immediate payment to cover final expenses. Paying dependents is same as usual. 7. Rehabilitation benefits: Injured worker may be entitled to additional compensation during a period of training.

Identify and explain the five general principles on which workers compensation laws are based.

1. Negligence is no longer a factor in determining liability: If the worker is injured, the employer is obligated to pay benefits according to a schedule in the law regardless of whose negligence caused the injury. The employer is at fault due to social policy. 2. Indemnity is partial but final: The worker gives up the right to sue there employer in return for entitled benefits without having to sue. It is usually less than what they would receive if they went through court. 3. Periodic payments are made to workers: Period payments are made rather than lump sums in order to protect the recipient from being overwhelmed. 4. Cost of the program is made a cost of production: Employees are not required to contribute. Employers must pay the premium for coverage and the benefits that are required by law. 5.Insurance is required: Employers must purchase and maintain workers comp insurance.

Identify and briefly describe the four classes of benefits available to those covered under the Old-Age, Survivors, Disability, and Health Insurance (OASDHI).

1. Old-age benefits: Pension at retirement age. Amount of pension is based on the workers average earnings during a period of his/hers working years. 2. Survivors Benefits: This portion provides covered workers with a form of life insurance. The proceeds are payable to their dependent children and sometimes their surviving spouse 3. Disability Benefits Benefits are extended to workers who become disabled between the ages of 50-64. If someone is disabled to the point they permanently cannot work he/she and their dependents are treated as if they reached retirement age 4. Medicare Benefits People over 65 and certain disabled persons are protected against high cost of hospitalization, hospice, or any other health service.

What benefits does a fully insured worker have that a currently insured worker does not?

A fully insured worker is entitled to retirement benefits. 1. Social Security 2. Spouse of worker's benefit (minimum 10 years of marriage): Spouse is entitled to 50% of the workers PIA. 3. Widow: Entitled to 100% retirement benefit

Explain how benefit levels are automatically adjusted under OASHDI. How are the increases in benefits financed?

Benefit levels are automatically adjusted with increases in the Consumer Price Index. The automatic increases in benefit levels are financed through increases in the tax base

Under what circumstances can a person who is entitled to Social Security benefits become ineligible for benefits?

Divorce from person receiving benefits Attainment of age 18 by a child Marriage Adoption Disqualifying income

What benefits does a worker who is only currently insured have?

Survivor Benefits: 1. Lump Sum 2.Childrens 3.Mothers/Fathers Retirement benefits to a widow or widower, and the benefit to dependent parents are payable only if the worker was fully insured.

Outline the requirements for fully insured status under OASHDI.

To become fully insured, a worker must have worked 40 quarters in covered employment, or have one quarter in covered employment for every year for 40 years. Once a worker is fully insured (40 quarters) he or she remains fully insured and is entitled to retirement benefits at the retirement age.

Explain the nature of the common-law obligations and the common-law defenses of employers' liability. Are these obligations and defenses ever used today? Under what circumstances?

Under common law, employers were obligated To provide a safe place to work, safe tools, safe rules, and warnings. Common Law defense: If a worker was injured, the employer could use these defenses: Contributory negligence Fellow servant doctrine Assumption of risk