Volume #53

Commonly Asked Questions About Social Security

General Information

Q: How long does a person need to work to become eligible for retirement benefits?

A: Social Security benefits are based on credits. Anyone born in 1929 or later needs 40 Social Security credits to be eligible for retirement benefits.You can earn up to four credits per year, so you will need to work at least 10 years to become eligible for retirement benefits. Each year the amount of earnings needed for a credit rises as average earnings go up. In 2008, you receive one credit for each $1,050 of earnings, up to the maximum of four credits per year. During your working years, earnings covered by Social Security are posted to your record. You earn credits based on those earnings. When you have your credits and you reach retirement age, you can file for retirement benefits online at www.socialsecurity.gov.

Q: How does Social Security know how much a person has earned?

A: Each year, your employer reports your previous year’s earnings to Social Security on Form W-2. Self-employed people report their earnings to the Internal Revenue Service (IRS) on their tax return. IRS transmits that information to Social Security. Social Security then posts the earnings information to your record. To learn more about Social Security, visit www.socialsecurity.gov.

Q:Are Social Security recipients eligible for the stimulus payments sent out this year by the Internal Revenue Service (IRS)?

A: Yes, most Social Security beneficiaries are eligible, but you have to file a tax return. It is not too late. For general information about the stimulus payments, visit the IRS website at www.irs.gov. To find information specific to Social Security beneficiaries, either search “Social Security Beneficiaries” or go directly to www.irs.gov/newsroom/article/0,,id=179201,00.html.

Retirement Information:

Q: When should I start planning my retirement?

A: It's never too early to start planning your retirement. Social Security has a new Retirement Estimator online at www.socialsecurity.gov/estimator. This important tool will help you estimate your future Social Security retirement benefits. In addition, the Social Security Statement is an important document that can help you plan for your retirement. The Statement includes a record of your earnings each year, and provides estimates of the retirement, disability and survivors benefits you and your family may be eligible for. If you pay Social Security taxes, are at least 25 and are not receiving benefits, you automatically receive a Statement in the mail each year, about three months before your birthday. You can learn more about financial planning at www.mymoney.gov. When you are ready to receive retirement benefits, you can apply online at www.socialsecurity.gov/applyforbenefits.

Generally, people should apply for retirement benefits no more than 4 months before they want their benefits to begin. Even if you have no plans to receive benefits, you should still sign up for Medicare three months before you turn 65.

Q: When is the best time to retire?

A: A new fact sheet provided by Social Security called When To Start Receiving Retirement Benefits and the online Retirement Estimator may assist in making your decision. Both of these tools can be found at www.socialsecurity.gov. When you have made the decision to retire, you may file for your benefits online.

Q: I recently filed for retirement benefits online. I have a few questions about my application. Who should I call?

A: Contact Social Security at 1-800-772-1213 (TTY number, 1-800-325-0778), between 7 a.m. and 7 p.m. Monday through Friday (excluding holidays) and a representative can help you. If your questions are specific to your application, you will need to provide Social Security with your name and Social Security number. You can also find a wealth of information about Social Security on the Social Security website.

Medicare Information

Q: When can I sign up for my Medicare drug coverage?

A: If you are newly entitled to Medicare, you may sign up for prescription drug coverage during your seven-month initial enrollment period for Medicare. If you do not join during this period, your next chance to join will be during the open enrollment period between November 15 and December 31 each year. There also will be special enrollments periods if:

You lose your employer-based coverage
You move from your prescription drug provider's service area
When a provider goes out of business or is decertified by Medicare.

For assistance in selecting a plan and enrolling, visit the Medicare website at www.medicare.gov.

Q: When can I sign up for my Medicare drug coverage?

You lose your employer-based coverage
You move from your prescription drug provider's service area
When a provider goes out of business or is decertified by Medicare.

For assistance in selecting a plan and enrolling, visit the Medicare website at www.medicare.gov.

Q: I lost my Medicare card. Do I need to come into the Social Security office for a new one?

A: No, it’s easy to get your Medicare card replaced by visiting Social Security’s website. Go to www.socialsecurity.gov and select the “Medicare” bar in the upper right side of the page. Then select the first item on the page: “Replace your lost, stolen or damaged Medicare card.” Your replacement Medicare card will arrive in the mail within 30 days. If you need proof of Medicare coverage sooner, a letter can also be sent to you within 10 days that will confirm your coverage.

Q: Where can I find information on the Medicare prescription drug plans?

A: The best place to go for information about Medicare prescription drug plans is Medicare’s web site. You can find it at www.medicare.gov. Or call 1-800-MEDICARE (1-800-633-4227;
TTY 1-877-486-2048). For information on extra help in paying for prescription drug costs for people have limited income and resources, see Help With Prescription Drug Costs at www.socialsecurity.gov/prescriptionhelp.

Q: I’ll be visiting my grandmother for Grandparents Day this year. Can I help my grandmother apply for the extra help with prescription drug costs?

A: You can help your grandmother by completing the application on her behalf. Relatives, friends, attorneys, advocates, social workers and employees of government agencies are authorized to act on someone's behalf if they are chosen by that person to do so. You have several options when it comes to applying for the extra help:

Apply online at www.socialsecurity.gov/prescriptionhelp;
Complete the application we mailed to your grandmother and return it in the postage-paid envelope
Call 1-800-772-1213 (TTY 1-800-325-0778) if she did not receive an application. We will mail her a form or help her on the phone to complete the application
Visit her local Social Security office

For more information about Social Security and the extra help, visit www.socialsecurity.gov/prescriptionhelp.

Disability Information

Q: How many years do I need to work before I can qualify for Social Security disability benefits?

A: The number of work credits you need to qualify for disability benefits depends on your age when you become disabled. Generally, you need 20 credits earned in the last 10 years, ending with the year you become disabled. Younger workers, generally those under 31, who have not had the opportunity to work that long, may qualify with fewer credits, so if you become disabled and cannot work, you should still apply for benefits. For more information read Disability Benefits. A copy is available online at www.socialsecurity.gov/pubs/10029.html, or contact Social Security to have a copy of the publication mailed free of charge.

Q: My husband gets Social Security Disability benefits for his diabetes. Last month, his leg was amputated due to his diabetes. Can we apply for an increase in his benefits since his condition has gotten worse?

A: The benefit amount awarded is not based on the severity of the disabling condition, but on whether or not a person is disabled. Once that determination is made, other factors go into figuring the benefit amount, such as the person’s age and the amount of Social Security taxes paid.

Supplemental Security Income Information

Q: What is the difference between Social Security disability and Supplemental Security Income (SSI) disability?

A: The Social Security Administration is responsible for two major programs that provide benefits based on disabilities. They are Social Security Disability Insurance (SSDI), which is based on prior work under Social Security, and Supplemental Security Income (SSI), which is based on need. SSDI is financed with Social Security taxes paid by workers, employers and self-employed persons. SSI payments are paid from general revenues.

Q: Can I apply for Supplemental Security Income (SSI) online?

A: Not at this time. But if you’re filing for SSI benefits due to a disability, you can get started by filling out Adult Disability Report at www.socialsecurity.gov/adultdisabilityreport. Completing this report beforehand will save you time when you do apply for SSI. You may call Social Security to make an appointment to finish the application by phone or in person.

Q: : I just got a notice from Social Security that said my Supplemental Security Income (SSI) case is being reviewed. What does this mean?

A: Social Security routinely reviews Supplemental Security Income cases to make sure the individual is receiving the correct amount and that they still remain eligible for benefits.

If you have any other questions you may contact a Social Security Customer Service Representative at 800-772-1213, or visit the Social Security website at www.socialsecurity.gov.

An Additional Note About The Future of Social Security

Since we spend our working lives paying into Social Security, we should all take interest in the current status of Social Security as well as the future of the program. The impact is not just on those receiving benefits right now, but on future generations. In fact, some people do not realize that Social Security is largely a "pay as you go program," meaning that the money that is being taken out of checks today is used to pay for current benefits. Without change to the program, cuts in benefits are projected to occur in 2041. It is estimated that the program will only b e able to pay out 78 percent of payable benefits. At that point the benefits will continue to decline unless there is change. To find out more about the issues facing the Social Security Program in the future please visit the Frequently Asked Questions About Social Security's Future at www.socialsecurity.gov/qa.htm.

Let us preserve and protect the rights of our grandchildren, great-grandchildren and the generations beyond. We all have a voice and when we join forces and bring solutions to the table, when we speak out in numbers, change becomes possible.

Until Next Time...

Shannon Wood
Editor
Senior Living Strategies

Your comments are important to us

If you have any questions, concerns or comments regarding these topics, or you would like to suggest another topic of interest, please e-mail Shannon at shannonw@lawtonprinting.com.