Social Security

This section contains contact information for the Social Security Administration and a brief description of some of the programs and benefits available through the Social Security Administration and general eligibility requirements. Some of the eligibility requirements are complicated and cannot be fully addressed in this Handbook. Therefore, you are encouraged to contact the Social Security Administration (SSA) or consult with a qualified attorney with respect to your eligibility for particular benefits.

CONTACTING SOCIAL SECURITY

BY TOLL FREE TELEPHONE

800-772-1213

TTY FOR THE HEARING IMPAIRED

800-325-0778

ON-LINE

Online services include:

• obtaining a copy of your earnings record and an estimate of the benefits you and your family will receive when eligible,
• filing an application for retirement and\or social security disability benefits,
• replacing a lost Social Security card or changing the name on your Social Security records,
• downloading copies of booklets and fact sheets about benefits,
• locating the nearest Social Security office.

IN PERSON:

• DELAWARE COUNTY OFFICES
• 807 Crosby Street
• Chester, PA 19013

• 1570 Garrett Road
• Upper Darby, PA 19082

Some of the pamphlets available from Social Security (in person or by contacting 800-772-1213 or www.socialsecurity.gov) include:

• “Basic Facts” - SSA-05-10080
• “Understanding the Benefits” - SSA-05-10024
• “Retirement Benefits” - SSA-05-10035
• “Disability Benefits” - SSA-05-10029
• “Supplementary Security Income” - SSA-05-11008
• “Survivor Benefits” - SSA-05-10084
• “What You Need To Know When You Get Retirement Or Survivors Benefits” - SSA-05-10077
• “What You Need To Know When You Get SSI” - SSA-05-11011
• “If You Are Blind How We Can Help” - SSA-05-10052
• “A Guide For Representative Payees” - SSA-05-10076
• “What You Should Know When A Representative Payee Manages Your Money” - SAA-05-10097
• “Receive Your Benefits By Direct Deposit” - SSA-05-10123

RETIREMENT BENEFITS

“Full Retirement Age”

Use the chart below to determine when you will be eligible to collect full Social Security retirement benefits:

If you choose to begin collecting retirement benefits before your Full Retirement Age, the amount of your monthly benefit will be permanently reduced, as follows:

The disadvantage to taking your retirement benefits before your full retirement age is that your monthly benefits are permanently reduced. The advantage is that you collect benefits for a longer period of time. Each person's situation is different, so you should contact Social Security or a qualified attorney or advisor before making any decisions.

Please note:

You can take retirement benefits before your full retirement age and “earn back” the permanent reduction if you apply for and win Social Security disability benefits.

Also note that retirement benefits are increased by a certain percentage if you delay collecting beyond your full retirement age, up to age 70.

Effect of Earnings on Retirement Benefits

Retirees who are collecting Social Security retirement benefits before their Full Retirement Age (see chart above), and have earnings (from work or self-employment), will have $1.00 in retirement benefits deducted for each $2.00 of earnings above the exempt amount ($12,480 for 2006).

In the year you reach full retirement age $1.00 in retirement benefits will be deducted for each $3.00 you earn above the exempt amount ($33,240 for 2006). However, after you reach your full retirement age, you can collect your Social Security benefits with no restriction on the amount you can earn.

Retirement Benefits for a Spouse

Social Security retirement benefits are received in one of two ways: based on your own record of contributions to the Social Security system or as a spouse or former spouse of such a contributor.

The spouse of a wage earner who collects Social Security benefits can, when he or she reaches retirement age, choose to collect benefits based upon his or her own earnings record or the earnings record of his or her spouse. The spouse would receive either 100% of benefits based on his or her own earnings record, or 50% of the amount of the wage-earning spouse’s benefits (with no reduction of the wage-earning spouse’s benefit). At the time of death of a wage-earning spouse, the widow(er) can make an election between his or her own benefits or 100% of the deceased wage-earning spouse’s benefits.

Retirement Benefits for a Divorced Spouse

Divorce does not prevent the divorced spouse from collecting benefits on the divorced spouse’s record (“derivative benefits”) IF the marriage was at least ten years in duration. A divorced spouse, at least 62 years old and unmarried, who was married to the wage-earner for a minimum of 10 years, can receive retirement benefits based on the wage-earner’s earnings record, as long as the wage-earner is eligible for retirement benefits, e.g., is at least 62 years of age and fully insured, even if he/she is not actually collecting benefits; however, if the wage-earner is not collecting benefits, the divorced spouse must wait two years from the date of the divorce to begin collecting benefits in that manner. The wage-earner’s benefits are not affected by the divorced spouse’s election to collect benefits in this manner rather than on his or her own wage-earning record.

If the dependent spouse remarries, he/she will not be eligible for derivative benefits from a contributing spouse. However, if such remarriage terminates, the dependent spouse becomes eligible for derivative benefits once again from the former contributing spouse. If a dependent spouse has been married more than once and each time for at least ten years, derivative benefits can come from the former spouse's contributions providing the higher benefits.

Retirement Benefits for Divorced Widow(er)s

To receive retirement benefits based on the earnings record of a deceased ex-spouse, the deceased wage-earner must have been fully insured at the time of death, and the dependent surviving ex-spouse must:

• be at least 60 years of age, or 50 years of age if disabled, and have been married to the deceased wage-earner for at least ten years;
• be any age if caring for a child who is eligible for benefits on the wage-earner’s earnings record;
• not be eligible for an equal or higher benefit on his/her own earnings record; and
• not be currently married, unless the remarriage occurred after age 60, or 50 for disabled widow(er)s.

The surviving divorced widow receives 100% of the benefits instead of the 50% received if the former spouse is alive.

DISABILITY BENEFITS – SSD AND SSI

Social Security administers two programs for getting disability payments: Social Security Disability (SSD) and Supplemental Security Income (SSI).

Each program requires the same medical proof of disability, e.g., a medically determinable physical or mental impairment which has lasted or could be expected to last for a continuous period of not less than 12 months and which makes it impossible for the claimant to work in competitive employment, or, to use Social Security’s term of art, to engage in “substantial gainful activity.” SSD is not payable for a temporary condition or for a partial disability. You can earn up to $860.00 per month (in 2006) and still be considered unable to engage in “substantial gainful activity.”

By contrast, SSI applicants must meet strict income and asset guidelines (distinguished from the $860.00 per month mentioned above with regard to SSD) and be either medically disabled, blind, or age 65 or older. SSI may be used to supplement other income, e.g., from SSD, retirement benefits or a pension if the income and asset guidelines are met. There are certain disregards of income and assets, so a disabled person with limited income and assets should check with SSA to determine eligibility for SSI.

SSD has no income or assets test per se, but requires that the applicant have established a certain number of “covered quarters,” or quarters of employment for which FICA taxes were paid. An application for SSD can be filed on-line, whereas an application for SSI cannot.

SSD pays benefits to the wage-earner and qualifying family members, whereas SSI benefits only cover the individual claimant. SSD provides a special program to help adults who are unmarried, have never engaged in substantial gainful activity and who become disabled before they attain age 22. If such a disabled adult’s parents are deceased (having been fully insured for retirement benefits at the time of death), or are eligible to collect retirement benefits, the disabled adult child can receive 50% of his or her parents’ benefits.

The process of applying for and winning Disability Benefits is complicated. The assistance of a qualified attorney with experience in this area of law is highly recommended.

Sources for Finding Attorneys:

• NOSSCR (National Organization of Social Security Claimants’ Representatives): 800-431-2804
• Legal Aid of Southeastern Pennsylvania (LASP), Delaware County Division: 610-874-8421
• Delaware County Bar Association Lawyer Referral Service: 610-566-6625.

APPLYING FOR BENEFITS; DENIALS; SSA RECORDS

Do not delay in applying for benefits for which you may be eligible. Any delay on your part could result in your receiving fewer benefits than you are entitled to. When in doubt, contact Social Security to begin the application process as soon as you may be eligible. Remember that you can apply for some

Social Security benefits online.

Keep in mind that Social Security will give you a deadline to finish certain tasks (e.g., file a written application after you call them; file a written appeal if you are dissatisfied with their decision, etc.). You must comply with their timelines or you will lose your right to potential benefits. Typically, their deadlines are within 60 days; however, some deadlines might be shorter so you must check this carefully.

If Social Security denies your claim for benefits, you are entitled to a written explanation of the reasons for the denial and in most cases you will have the right to appeal the decision.

If you are receiving benefits or applying for benefits from Social Security, it is important that you inform the Social Security Administration of any changes or corrections to your records. For example, if you move, change bank accounts, or disagree with the earnings records that they have posted to your Social Security account, you should take immediate steps to inform Social Security of any changes or additions. Likewise, if you marry or divorce or if someone receiving benefits dies, you should notify the Social Security Administration immediately. It is important to check your records every couple of years, at least until you are receiving benefits, to verify your earnings records on file with Social Security.