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Social Security. Social Security. Retirement benefit Spouse's benefit Your pension and Social Security Work in retirement Cost-of-living adjustments Taxation of benefits Disability benefit Survivor benefit Medicare Applying for benefits. Social Security tax (FICA). - PowerPoint PPT Presentation
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Social Security Retirement benefit Spouse's benefit Your pension and Social Security Work in retirement Cost-of-living adjustments Taxation of benefits Disability benefit Survivor benefit Medicare Applying for benefits
Social Security tax (FICA)
2006 employee contributions if in “Covered Employment”
OASD1 rate: 6.20% on maximum of $94,200
Medicare rate: 1.45% on all wages
Retirement benefit Eligibility based on number of credits
(quarters of coverage)
Benefit based on primary insurance amount (PIA)
When benefits can start
Early benefits at age 62 with permanent reduction
Full benefits at normal retirement age (age 65 if born before 1938)
Benefits increased if delayed beyond normal retirement age
Spouse's benefit At spouse’s normal
retirement age, spouse's benefit is 50% of worker’s PIA
If spouse is age 62, spouse's benefit is reduced
Your pension and Social Security If you qualify for your own Social Security benefit,
its amount will be reduced because of your Fire and Police Pension
Your Social Security benefit as a spouse will also be reduced because of your Fire and Police Pension
Work in retirement Annual earnings limit if you work and receive
Social Security benefits $1 reduction for every $2 earned over $12,480 if
under SSNRA in 2006 $1 reduction for every $2 earned over $33,240 if
attain SSNRA in 2006
Social Security benefits Inflation
Indexed to CPI
Income taxes Up to 85% of benefits may be subject to federal income
taxes
Social Security disability benefit
You must be fully insured and currently insured
You must be unable to perform any gainful work Your disability must be expected to last at least
twelve months
The benefit is payable at any age without
reduction
Social Security survivor benefit
Surviving spouse can receive benefit if:
Age 60, or
Disabled and over 50, or
Any age if caring for eligible dependent child
Social Security survivor benefit
Amount of surviving spouse benefit: 100% of PIA if surviving spouse is at normal
retirement age
Reduced at earlier ages
75% if caring for eligible dependent child
Medicare Coverage begins at age 65 Part A – hospital insurance Part B – medical insurance, including doctor's
services Part C – Medicare Advantage Part D – prescription drugs Long-term care insurance
Applying for benefits
Three months before you want checks to begin
Three months before age 65 for Medicare
Social Security number
Proof of age
Last two to three years' w-2 Your personal earnings and benefit estimate
statement