Social Securityfor

CUNY Human Resources

A Foundation for Planning Your FutureA Foundation for Planning Your Future

51 million people51 million people

Who Gets Benefits from Social Security?Who Gets Benefits from Social Security?

32.3 million Retired Workers3 million Dependents

7.4 million Disabled Workers, 1.8 million Dependents

4.6 millionWidows/ Widowers

1.9 millionChildren of

Deceased Workers

2/20092/2009

Social Security StatementSocial Security Statement

Use the New Retirement EstimatorUse the New Retirement Estimator

Ready to Apply for Social Security Retirement Benefits?

Ready to Apply for Social Security Retirement Benefits?

You Need to Work to Earn Social Security CreditsYou Need to Work to Earn Social Security Credits

In 2010, each $1,120 in earnings gives you one credit

You can earn a maximumof 4 credits per year

Example: To earn 4 credits in 2010, you must earn at least $4,480. Earning 40 credits throughout your working life will qualify you for a retirement benefit.

In 2010, each $1,120 in earnings gives you one credit

You can earn a maximumof 4 credits per year

Example: To earn 4 credits in 2010, you must earn at least $4,480. Earning 40 credits throughout your working life will qualify you for a retirement benefit.

How Social Security Determines Your BenefitHow Social Security Determines Your Benefit

Social Security benefits are based on earnings

Step 1 – Your wages are adjusted for inflation

Step 1 – Your wages are adjusted for inflation

Step 2 – Find the average of your 35 highest earnings years

Step 2 – Find the average of your 35 highest earnings years

Step 3 – Result is “average indexed monthly earnings”

Step 3 – Result is “average indexed monthly earnings”

Retirement Benefit ComputationRetirement Benefit Computation

Social Security benefit amounts are figured with a weighted benefit formula that gives proportionately higher benefits to workers with low lifetime earnings.

At FRA (Full retirement age):Low earner – 56%Average earner – 41%High earner – 34%

Social Security benefit amounts are figured with a weighted benefit formula that gives proportionately higher benefits to workers with low lifetime earnings.

At FRA (Full retirement age):Low earner – 56%Average earner – 41%High earner – 34%

If any part of your government pensionis based on work not covered by

Social Security, you may be affected bythe Windfall Elimination Provision.

Normal Computation WEP Computation90% of the First $744 40% of the First $74432% of the Next $3,739 32% of the Next $3,73915% of the Remainder 15% of the Remainder

If any part of your government pensionis based on work not covered by

Social Security, you may be affected bythe Windfall Elimination Provision.

Normal Computation WEP Computation90% of the First $744 40% of the First $74432% of the Next $3,739 32% of the Next $3,73915% of the Remainder 15% of the Remainder

Windfall Elimination ProvisionWindfall Elimination Provision

Government Pension Offset (GPO)Government Pension Offset (GPO)

If you receive a government pension based on work not covered by Social

Security, your Social Security spouse’s or widow(er)’s benefits may be reduced.

Spouse’s Benefits Only2/3 of amount of government pension will be used to reduce the Social Security spouse’s benefits

If you receive a government pension based on work not covered by Social

Security, your Social Security spouse’s or widow(er)’s benefits may be reduced.

Spouse’s Benefits Only2/3 of amount of government pension will be used to reduce the Social Security spouse’s benefits

Your Age When You Retire Affects Your BenefitsYour Age When You Retire Affects Your Benefits

If You’re A Worker and Retire:

At age 62, you get less money permanently At age 62, you get less money permanently

At your full retirement age (age

65-67), you get your full benefit

At your full retirement age (age

65-67), you get your full benefitYou get even more money if you work past your full retirement age (until age 70)

You get even more money if you work past your full retirement age (until age 70)

Full Retirement AgeFull Retirement AgeYear of Birth Full Retirement Age

1937 or earlier 651938 65 & 2 months1939 65 & 4 months1940 65 & 6 months1941 65 & 8 months1942 65 & 10 months1943 – 1954 661955 66 & 2 months1956 66 & 4 months1957 66 & 6 months1958 66 & 8 months1959 66 & 10 months1960 or later 67

Year of Birth Full Retirement Age

1937 or earlier 651938 65 & 2 months1939 65 & 4 months1940 65 & 6 months1941 65 & 8 months1942 65 & 10 months1943 – 1954 661955 66 & 2 months1956 66 & 4 months1957 66 & 6 months1958 66 & 8 months1959 66 & 10 months1960 or later 67

You Can Work And Still Receive BenefitsYou Can Work And Still Receive Benefits

If You Are You Can If You Make More,Make Up To Some Benefits Will

Be Withheld__________________________________________________________Under Full Retirement Age

2010 $14,160 ($1180/mo.) $1 for every $2

In FRA Year$1 for every $3

2010 $37,680 ($3140/mo.) until month of FRA

Full RetirementAge and Above No Limit No Limit

If You Are You Can If You Make More,Make Up To Some Benefits Will

Be Withheld__________________________________________________________Under Full Retirement Age

2010 $14,160 ($1180/mo.) $1 for every $2

In FRA Year$1 for every $3

2010 $37,680 ($3140/mo.) until month of FRA

Full RetirementAge and Above No Limit No Limit

In Addition to the Retiree,Who Else Can Get Benefits?In Addition to the Retiree,

Who Else Can Get Benefits?

Your Spouse

Your Child

At age 62

At any age if caring for child under 16

or disabled

Divorced spouses may qualify

At age 62

At any age if caring for child under 16

or disabled Divorced spouses may qualify

Not married under 18

(under 19 if still in high school)

Not married and disabled before age 22

Not married under 18 (under 19 if still in high school) Not married and disabled before age 22

Spouses’ Benefits – Currently Married

Currently Married12 month marriageAge 62Worker entitledIf under 62--disabled child or

child under age 16 in care

Spouses’ Benefits – Currently Divorced

Divorced10 year marriageAge 62Worker age 62Ex-spouse not married; worker

can be married

Who Can Get Survivors Benefits?Who Can Get Survivors Benefits?

Reduced benefits at age 60 Reduced benefits at age 60

At any age if caring for child under 16 or disabled

If disabled as early as age 50

At any age if caring for child under 16 or disabled If disabled as early as age 50

Widow or Widower

Divorced widows/widowers may qualify

Not married under age 18 (under 19 if still in high

school)

Not married and disabled before age 22

Divorced widows/widowers may qualify

Not married under age 18 (under 19 if still in high

school) Not married and disabled before age 22

If Your Child Is:

OPTIONS

Take reduced retirement payments at age 62 on your own record, and then receive the unreduced widow's benefit at full retirement age.

Take reduced widow's benefits until you reach full retirement age and then file a claim for retirement benefits on your own record.

Decision depends on the amount of the benefit

OPTIONS

Take reduced retirement payments at age 62 on your own record, and then receive the unreduced widow's benefit at full retirement age.

Take reduced widow's benefits until you reach full retirement age and then file a claim for retirement benefits on your own record.

Decision depends on the amount of the benefit

Widow/Widowers Benefits (1)Widow/Widowers Benefits (1)

Effect of Marriage

If you remarry before reaching age 60, you cannot receive widow's benefits as long as that marriage remains in effect.

If you remarry after age 60, there is no loss of entitlement. Note: if your current spouse receives Social Security, you should check to see if you would qualify for higher benefits on that account. You cannot get both.

Effect of Marriage

If you remarry before reaching age 60, you cannot receive widow's benefits as long as that marriage remains in effect.

If you remarry after age 60, there is no loss of entitlement.Note: if your current spouse receives Social Security, you should check to see if you would qualify for higher benefits on that account. You cannot get both.

Widow/Widowers Benefits (2)Widow/Widowers Benefits (2)

What You May Need When Applyingfor Your Social Security Benefits?

What You May Need When Applyingfor Your Social Security Benefits?

If you file online, Social Security will contact you if additional documentation is needed for your claim. Social Security might need:

Social Security Number for each applicant

Proof of Age/ Proof of Citizenship/immigration status

Latest W-2 or Self-Employment Tax return

Earnings Estimate

Bank information for Direct Deposit

Information about Marriages/Divorces

Information about Military or Railroad Service

If you file online, Social Security will contact you if additional documentation is needed for your claim. Social Security might need:

Social Security Number for each applicant

Proof of Age/ Proof of Citizenship/immigration status

Latest W-2 or Self-Employment Tax return

Earnings Estimate

Bank information for Direct Deposit

Information about Marriages/Divorces

Information about Military or Railroad Service

Social Security’s Disability Definition:Social Security’s Disability Definition:

The law defines disability as the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment(s) which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.

The determination also considers age, education & work experience.

In 2010, substantial gainful activity (SGA) is $1000.

The law defines disability as the inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment(s) which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months.

The determination also considers age, education & work experience.

In 2010, substantial gainful activity (SGA) is $1000.

Who Can Get Disability Benefits?Who Can Get Disability Benefits?

Recent Work – 5 years of work in the 10 years ending with the

year disability begins

Younger workers may qualify with fewer credits.

Duration of Work – total amount of work needed (depends on

age)

Recent Work – 5 years of work in the 10 years ending with the

year disability begins Younger workers may qualify with fewer credits.

Duration of Work – total amount of work needed (depends on

age)

Worker

Spouse•At age 62•At any age if caring for child • under 16 or disabled•Divorced spouses may qualify

•Not married under 18• (under 19 if still in high school)•Not married and disabled before• age 22

Child

65 & older

Receiving Social Security disability benefits at least 24 months

Lou Gehrig’s Disease (Amyotrophic Lateral Sclerosis-ALS). There is no waiting period for ALS)

Permanent Kidney Failure***

65 & older

Receiving Social Security disability benefits at least 24 months

Lou Gehrig’s Disease (Amyotrophic Lateral Sclerosis-ALS). There is no waiting period for ALS)

Permanent Kidney Failure***

Who Can Get Medicare?Who Can Get Medicare?

*** A worker’s spouse or child may be eligible if he/she receives dialysis for kidney failure or had a transplant, even if no one else gets Medicare.

*** A worker’s spouse or child may be eligible if he/she receives dialysis for kidney failure or had a transplant, even if no one else gets Medicare.

When Can I Sign Up for Medicare?When Can I Sign Up for Medicare?

Medicare Enrollment Periods:

Initial - at age 65 – 3 months before age 65, and up to

3 months after age 65

Initial - at age 65 – 3 months before age 65, and up to

3 months after age 65

Special - if still working Special - if still working

General - January-March, every year General - January-March, every year

Signing Up for MedicareSigning Up for Medicare

1-800-MEDICAREwww.medicare.gov1-800-MEDICAREwww.medicare.gov

www.socialsecurity.govwww.socialsecurity.govQuestions about Medicare?Questions about Medicare?

Social Security’s Online ServicesIf You Get Benefits

Social Security’s Online ServicesIf You Get Benefits

•Change your address or telephone number. •Get a replacement Medicare Card. •Request a Proof of Income letter. •Get a Form 1099 Replace the lost, damaged, or missing tax summary of your Social Security benefits •Get a password when

You want password access to information about your benefits.

You lost, forgot, or do not have your password or password request code (PRC).

Your password request code has expired

•Block electronic and automated telephone access to your personal information.

When to Start Receiving Retirement Benefits

www.socialsecurity.gov/pubs/10147.pdf

Publication Number 05-10147ICN 480136

Social Security: Financial Planning Toolkit

Windfall Elimination Provision

www.socialsecurity.gov/pubs/10045.pdf

Public Number 05-10045ICN 460275

A “Snapshot”

www.socialsecurity.gov/pubs/10006.html

Publication Number 05-10006ICN 451421

Update 2010

www.socialsecurity.gov/pubs/10003.html

Publication Number 05-10003ICN 451385

Social Security: Financial Planning Toolkit

Online Retirement Estimator

www.socialsecurity.gov/pubs/10510.html

Publication Number 05-10510ICN 470114

How to Use the Online Retirement Estimator

www.socialsecurity.gov/pubs/10511.html

Publication Number 05-10511ICN 470115

Social Security: Financial Planning Toolkit

Retire Online It’s So Easy!

www.socialsecurity.gov/pubs/10522.html

Publication Number 05-10522ICN 470135

How to Apply Online for Retirement Benefits

www.socialsecurity.gov/pubs/10523.html

Publication Number 05-10523ICN 470140

Social Security: Financial Planning Toolkit