RETIREMENT

Question 1

SOCIAL SECURITY -

SPOUSAL ELIGIBILITY AND BENEFITS

Answer 1

The spouse of a retired or disabled worker qualifies if he/she is:

• Age 62 or over or
• has a child under age 16 or over 16 & disabled

The surviving spouse (including a surviving divorced spouse of a deceased insured worker qualifies for SS payments if the spouse is 60 or over.

Also if has a child uner age 16 or disabled before 22.

The divorced spouse must have been married to the worker for at least 10 years and must not be remarried.

Dependent eligibility & benefits

Surviving dependend, unmarried child of a deceased insured worker, qualifies if:

• uner 19 and full time elementary/secondary/college school student
• Age 18 or over but has a disability which began before 22.

Question 2

SOCIAL SECURITY ACRONYMS

PIA

FRA

Answer 2

PIA -Primary Insurance Amount - The base used to determine the amount of monthly benefit. 100% payable to the worker at FRA.

FRA - Full Retirement Age

Spousal PIA - Their PIA or 50% of their spouse’s PIA - whichever is greater if the spouse is still alive.

If deceased - the spouse gets their benefits or 100% of their deceased spouse’s - whichever is greater.

Question 3

REDUCTION IN SOCIAL SECURITY BENEFITS

Answer 3

FRA - 66 IF BORN 1/2/43 - 1/1/55

WORK & FRA - KEEP ALL BENEFITS NO MATTER HOW MUCH YOU EARN.

< FRA: LOSE $1 FOR EVERY $2 EARNED > $15,480

IF YOU REACH FULL RETIREMENT DURING 2014, THE GOV’T WILL DEDUCT $1 FOR EVERY $3 EARNED ABOVE $41,400 UNTIL THE MONTH YOU REACH FRA

MONTHS EARLY % REDUCED

• 12 MONTHS 6.67%
• 24 MONTHS 13.34%
• 36 MONTHS 20%
• 48 MONTHS 25%
• 60 MONTHS 30%