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About Howard Kossover

I am the Social Security Public Affairs Specialist for North Dakota and western Minnesota. Based in Grand Forks ND, I work with organizations, government agencies and businesses concerning all aspects of the Social Security programs.

No one knows about a 2016 COLA yet

Articles guessing about a Social Security cost-of-living adjustment (COLA) for next year are starting to appear.

No matter what you read or hear, no one knows 2016 COLA information yet and no one will know until approximately mid-October. Last year, Social Security announced 2015 COLA details on October 22, 2014.

COLAs for Social Security benefits are based on the percentage increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) from the third quarter of the last year a COLA was determined to the third quarter of the current year.

The CPI-W is determined by the Bureau of Labor Statistics in the Department of Labor. By law, it is the official measure used by the Social Security Administration to calculate COLAs.

The third quarter of the year ends September 30. Until CPI-W information is available, any cost-of-living adjustment (COLA) amount mentioned for next year is a guess.

 

 

 

Receiving Social Security? Is your earnings estimate accurate?

Q: I am 64, work part-time and receive Social Security retirement. In 2015, I will earn more than expected. Should I update my earnings estimate with Social Security?

A: You probably should but it depends on what your original estimate was and what your current estimate is.

Gross wages or net self-employment earnings in a year can reduce benefits for the year until full retirement age (FRA). If expecting earnings over the 2015 limits for your age, update your earnings estimate now.

At age 64, which is younger than your FRA, the 2015 earnings limit is $15,720. Earnings over this will reduce benefits. Lower earnings will not.

If your current 2015 earnings estimate is over $15,720, you should definitely contact Social Security and update your estimate. On the other hand, if you originally expected to earn $10,000, but will actually earn $14,000, an updated estimate is not needed because both amounts are less than the $15,720 limit for 2015 and neither would reduce benefits payable this year.

Earnings test amounts vary based on your age compared to your full retirement age. Details about 2015 earnings limits for different ages are in the SSA retirement planner section, www.socialsecurity.gov/planners/retire/, and in publication 05-10069, How Work Affects Your Benefits, also in that section. Pensions and other non-employment income do not count for the earnings test.

If younger than full retirement age for all or part of the year, keeping your estimated calendar year earnings current with Social Security is important if you expect to earn over the earnings limit. This is especially so if your original estimate was below the limit and you will actually earn over it. You can update your estimate anytime during the year.

If you will earn more than originally estimated, and the amount is above your earnings test limit, updating your estimate now can prevent or reduce the chance of your being incorrectly paid and needing to refund money to Social Security.

If you originally expected to earn above your 2015 earnings test amount limit, but will really earn less, updating your estimate now can release any withheld benefits to you faster.

If your final earnings this year are over the annual limit for your age, report actual 2015 amounts directly to Social Security when you get your W-2 form, or if self-employed when you complete your taxes. This is different from tax filings.

The earnings test can apply to anyone younger than full retirement age if receiving Social Security benefits that are not based on their own disability. Separate rules apply to people receiving benefits because of their own disability. If working, they should contact Social Security for information.

Earnings test information for 2016 should be available during October.

See “What You Need To Know When You Get Retirement or Survivors Benefits” for other things to report. Call Social Security nationally at 1-800-772-1213 (TTY-1-800-325-0778) or contact your local office to report changes including your earnings estimate.

Bad things only happen to other people

Of course you have heard the saying “Bad things only happen to other people.” However, we are all “other people” to everyone else.

This brings me to the reminder that Social Security is much more than retirement. Nationally, about 10 percent of SSA monthly benefits go to survivors of all ages due to a death in the family and about 19 percent go to disabled workers and their families.

You can obtain both survivor and disability estimates on your record by creating a personal, pin and password protected, my Social Security account at www.socialsecurity.gov/myaccount/ and viewing your Social Security Statement.

Hoping that you never need this information is different from planning in case you, or your family, do.

Learn more about Social Security disability and survivors benefits now. Make that information part of your family financial planning.

Then you can tell other people about them.

Social Security benefits by state and county

The annual publication “OASDI Beneficiaries by State and County” was recently released with information as of December 2014. OASDI is the Social Security retirement, survivors and disability benefits.

From the preface:

This annual publication focuses on the Social Security beneficiary population—people receiving Old-Age, Survivors, and Disability Insurance (OASDI) benefits—at the local level. It presents basic program data on the number and type of beneficiaries and the amount of benefits paid in each state and county. It also shows the numbers of men and women aged 65 or older receiving benefits. … “ 

As of December 2014, approximately 18.5 percent of the United States population received a monthly Social Security benefit with about 91 percent of people aged 65 or older receiving benefits.

How many people receive Social Security benefits in your state?

In your county?

How much money does that involve?

Find out here. For a specific state and county as of December 2014, click on the state information. Then scroll down to Table 4 to seen the number of beneficiaries in that state, with individual county data. Scroll down to Table 5 for the amount of benefits involved. Note that amounts are shown in thousands of dollars. 2014-SSA-state&county

Social Security 80th anniversary is here

Today is the 80th anniversary of the 1935 Social Security Act. President Franklin D. Roosevelt signed it into law at 3:30pm in the afternoon on August 14, 1935.

As referred to in President Roosevelt’s remarks at the time, the Social Security Act of 1935 contained much more than what is today considered as Social Security. A part of his remarks when signing the Act follow:

“Today a hope of many years’ standing is in large part fulfilled. The civilization of the past hundred years, with its startling industrial changes, has tended more and more to make life insecure. Young people have come to wonder what would be their lot when they came to old age. The man with a job has wondered how long the job would last.

This social security measure gives at least some protection to thirty millions of our citizens who will reap direct benefits through unemployment compensation, through old-age pensions and through increased services for the protection of children and the prevention of ill health.

We can never insure one hundred percent of the population against one hundred percent of the hazards and vicissitudes of life, but we have tried to frame a law which will give some measure of protection to the average citizen and to his family against the loss of a job and against poverty-ridden old age. …” 

Here is a composite photo of the signing. Of special note in the photo is Frances Perkins, Secretary of Labor, first woman to hold a cabinet position in the United States and a major force behind what became the Social Security Act of 1935. She served as head of President Roosevelt’s Committee on Economic Security, established by Executive Order in 1934. In this position, she was involved in all aspects of the reports and hearings that ultimately resulted in the Social Security Act of 1935.

FDRsignsSSA-1935

For more 80th anniversary information, see the SSA website www.socialsecurity.gov/80thanniversary/.

Social Security has changed over the years. Today Social Security retirement, survivors and disability benefits are very important. How important will be a topic next week.

 

You can send a message about the Social Security 80th anniversary

80th-Thunderclap-spreadtheword

Tomorrow, August 14, is the 80th anniversary of the Social Security Act of 1935.

You can help the Social Security Administration send a one-time, Happy Anniversary, message through Thunderclap via your Facebook, Twitter or Tumblr account. The message will be sent at 3:30pm EDT, the approximate time that President Roosevelt signed the legislation.

Sign-up to send this message through the Social Security 80th anniversary website or directly at the Thunderclap link.

80th-Thunderclap message

The Social Security Administration uses many ways to meet changing needs of the public, including online information and services on the SSA website, www.socialsecurity.gov, and many social media channels.

During the 1950s-1960s Social Security published a series of comic books on Social Security topics to reach the youth audience, which in those days used comic books as their hottest medium of communication. A sample from 1965 is here.

 

 

 

Social Security 80th anniversary almost here

80thAnniveraryLogo

August 14 is the 80th anniversary of the signing of the historic Social Security Act in 1935 by President Franklin D. Roosevelt. To help commemorate this date and engage the public in this milestone, the Social Security Administration has a commemorative 80th anniversary website at www.socialsecurity.gov/80thanniversary/.

Governor Jack Dalrymple of North Dakota and Governor Dennis Daugaard of South Dakota have proclaimed August 14 to be Social Security Act day in their states and I thank them for doing so. Images of their proclamations follow.

80th-ND_Proclamation80th-SD_proclamation

 

When eligible as widow and retiree

Q: Does starting Social Security as a widow prevent me from receiving my own retirement?

A: No. If eligible for SSA survivors benefits as widow or widower and also eligible for your own retirement, you can start the smaller one first and switch to the higher later on. Based on age, survivors benefits can start as early as age 60 and retirement at age 62.

You can estimate Social Security retirement amounts online but estimated survivors benefits are not available online.

Get survivors estimates from your local SSA office and of your own retirement online at the SSA retirement planner, www.socialsecurity.gov/planners/retire/. To consider your options, my suggestion is to get estimates for each type of benefit at different ages.

Some options to consider are in the Social Security survivors planner section. The following is from the “if you are the worker’s widow or widower / how much would your benefit be?” pages.  

“If you receive benefits as a widow or widower or as a surviving divorced spouse, you can switch to your own retirement benefit as early as age 62. This assumes you are eligible for retirement benefits and your retirement rate is higher than your rate as a widow, widower or surviving divorced spouse.  

In many cases, a widow or widower can begin receiving one benefit at a reduced rate and then, at full retirement age, switch to the other benefit at an unreduced rate.” 

Having the option to start with the lower benefit and then switching to a higher one later is useful but what you decide is based on your personal situation. Many people choose the largest amount immediately available, even if a reduced amount, and do not switch benefit types.

More about Social Security survivors benefits is at http://www.socialsecurity.gov/survivors/.

survivorsplanner

 

The start of Social Security disability benefits

The original Social Security disability benefits did not provide monthly payments.

As signed into law by President Dwight D. Eisenhower in the Social Security Amendments of 1954, originally disability benefits provided for a “freeze” to a person’s record during the years when they were unable to work. This was to help prevent periods of disability from reducing or wiping out retirement and survivor benefits due to reduced earnings.

On August 1, 1956, the Social Security Act was amended to provide monthly cash benefits to permanently and totally disabled workers aged 50-64 and to pay child’s benefits to disabled children aged 18 or over of retired or deceased workers, if their disability began before age 18.

More changes came later.

Learn about today’s Social Security disability program here.

 

 

How many people pay into Social Security?

Last week I wrote about how to correct a work record that was missing some employment earnings.

It is important for your personal record to be correctly posted. In addition to helping fund current Social Security benefits, your earnings are used to compute your future retirement amount.

Through W-2 reporting and self-employment tax information, the Social Security Administration works with the earnings information of almost everyone employed in the country.

How many people is this?

The Research, Evaluation and Statistics component of the Social Security Administration released the publication “Earnings and Employment Data for Workers Covered Under Social Security or Medicare, 2012” in June.

From the Preface:

This report presents 2012 earnings and employment data by state and county for persons covered under the Social Security and Medicare programs.

The data show, by sex and age, the number of wage and salary workers and self-employed persons, the amount of their taxable earnings, and the amount they paid in Social Security and Medicare contributions.

From the Highlights section:

Social Security

  • In 2012, 161.7 million workers had earnings taxable under the Social Security program. About 143.0 million had only wages, 11.2 million had only self-employment income, and 7.5 million had both.
  • Social Security taxable earnings totaled $5.712 trillion, which includes earnings up to the taxable maximum of $110,100.
  • Social Security taxes totaled about $708 billion. 

Medicare

  • In 2012, 165.6 million workers had earnings taxable under the Medicare program. About 146.1 million had only wages, 10.9 million had only self-employment income, and 8.6 million had both.
  • Medicare taxable earnings totaled $7.133 trillion.
  • Medicare taxes totaled about $207 billion.

The “Earnings and Employment Data for Workers Covered Under Social Security or Medicare, 2012” publication is available in pdf and html versions.

Earnings&Employment2012