Tag Archives: SSA family benefits

Representative payee – use of Social Security funds

Posted on by

Representative payees are routinely appointed for children. With rare exception, a child under age 18 will have a representative payee appointed to handle his or her Social Security benefits. If the child remains eligible past age 18 and assuming no capability issue exists, benefits are sent to him or her directly, without a representative payee. Social Security benefits for children are essentially the same whether due to a parent’s retirement, death or disability. 

Based on a question received this week, today’s topic involves the use of Social Security funds received on behalf of a child by the representative payee. How SSA funds are to be used is the same for an adult.

The child involved receives Social Security survivor benefits through the work record of a deceased parent. The surviving parent, representative payee for the child’s SSA benefits, is employed and taking care of the usual family expenses. Since the parent is handling expenses, the question was if they could save the Social Security survivor benefits for future need. With some caveats, the general answer is yes.

Referring to A Guide For Representative Payees, SSA publication 05-10076, the primary use of Social Security funds is to make sure the beneficiary’s basic day-to-day needs for food and shelter are met. Here, the child is the beneficiary but this applies to adults as well. After basic needs are met, Social Security benefits can be used for the person’s medical and dental care, if not covered by health insurance, and for personal needs, such as clothing and recreation. Remaining funds are to be saved for future need, preferably in an interest-bearing account, separately identified as belonging to the beneficiary.

Here, the parent is independently taking care of the child’s expenses. Since basic food and shelter plus additional financial needs of the child are met, saving the monthly Social Security survivor benefits for future need appears to be appropriate. If unmet needs existed, saving the Social Security benefits would serve little purpose and would not be in the child’s, or other beneficiary, best interests.

If you are now a representative payee or anticipate applying to be one for someone soon, review the representative payee section on the Social Security website, www.socialsecurity.gov. For often asked questions, go to the representative payee FAQ section. 

One more thing: unlike Social Security benefits, eligibility for the income based Supplemental Security Income (SSI) program has income and resource limits. Combined with other resources, saved funds can end SSI eligibility. If you are representative payee for a person receiving SSI, or if you receive SSI yourself, read What You Need To Know When You Get Supplemental Security Income (SSI), publication 05-11011.

Publications are available online, by calling the national toll-free number 1-800-772-1213 (TTY 1-800-325-0778) or from any Social Security office.

 

 

 

 

My friend said … is that really true?

Posted on by

Today’s post stems from a handful of phone calls received last week, all starting with a variation of “My friend told me that …” and ending with “… is that really true?” All the “friendly” information was wrong.  

Where can you get accurate Social Security information? Start at the official Social Security website, www.socialsecurity.gov. The web address has .gov, standing for government. If not .gov, it is not Social Security. Be sure you are at the official site.  

The Social Security website provides several ways to find information.  Frequently Asked Questions (FAQs) areas are at the top and lower right of the homepage. Check FAQ’s by topic area or by typing in keywords or questions. Use the Search Social Security block at top right of the homepage. Finally, homepage links to the different programs (Retirement, Disability, Survivors, etc.) bring you to lots of information about each program. 

National SSA webinars can be viewed through the website. See the link at bottom right of the homepage. 

The website is a great source of basic information. However, except for parts of the retirement planner pages and your established my Social Security account, personal information is not there. For personal information, contact Social Security. 

By calling the Social Security national telephone number, 1-800-772-1213, you can use automated telephone services to get recorded information and conduct some business 24 hours a day. If you cannot handle your business through SSA automated services, speak to a Social Security representative between 7:00am and 7:00pm, Monday – Friday, local time.  If you are deaf or hard of hearing, call the SSA toll-free TTY number, 1-800-325-0778. When calling, expect questions to prove who you are.

National SSA phone representatives have the same computer information available to local offices. Appointments made at the national number print at the local office based on zip code. If phoning, you are encouraged to call use the national system first. However, if you want to call or visit your local office, do so. Public hours are more limited than those of the national phone system so check them first.

The above webinar link is for national Social Security webinars. Not at that link, you might find the November 2012, Social Security (Denver Region) webcast titled “Social Security Frequently Asked Questions” interesting.  Available at http://www.socialsecurity.gov/denver/index.htm, in approximately 20 minutes this free webinar discusses Social Security retirement, survivors and disability program topics, how benefit amounts are determined for individuals and spouses, how to replace a Social Security card, and more. It also highlights the Frequently Asked Questions (FAQs) area of the Social Security website, www.socialsecurity.gov.   

Perhaps your advice giving friends would enjoy watching it with you.

What counts for the annual earnings test?

Posted on by

Both previous posts this week were about the annual earnings test, also known as the retirement test. The annual earnings test concerns how your own employment earnings in a calendar year affect your Social Security in that year.  

The earnings test does not apply if you receive Social Security because you are disabled. Contact Social Security for specific instructions if you return to work while receiving disability benefits.

The earnings test includes only your personal gross wages or net income from self-employment for the entire calendar year. That is all. Your other income or income of a spouse is not applicable for your earnings test purposes. Pension payments, annuities, interest, dividends or a good day at bingo are not included earnings for the annual earnings test even though they might be for income tax.

Each person receiving Social Security benefits has an earnings test level if they are younger than full retirement age (FRA).  For example, say both you and your spouse receive Social Security retirement and you are both younger than full retirement age all year. Since you both are younger than FRA all year, in 2013 each of you can individually earn up to $15,120 before exceeding earnings test limits. What if just one of you is employed? The same amount applies because the retirement test amount is for the individual person, not the couple. 

How does Social Security know your estimated earnings for the year? You tell us. If you plan to earn over retirement test levels, contact Social Security and provide an estimated earnings amount. If necessary to prevent a future overpayment to you, Social Security will withhold benefits based on the earnings estimate provided. Revise your estimate as needed if plans change during the year. When the year or work ends, report your final earnings so Social Security can review your record and be sure you were paid all benefits due.

Note: Benefits paid to other family members through your work record can be withheld if your earnings exceed earnings test amounts. If your retirement benefits are withheld because of your estimated earnings, benefits of people receiving through your record, such as a spouse or child, can also be withheld.

 

Newest Annual Statistical Supplement now online

Posted on by

The Annual Statistical Supplement, 2012 just became available online at http://www.ssa.gov/policy/docs/statcomps/supplement/2012/index.html.  

There is a massive amount of interesting information here, not just concerning Social Security retirement (old-age), survivors and disability insurance (OASDI), but also about other programs including Supplemental Security Income (SSI), Medicare, Medicaid, Unemployment Insurance, Workers’ Compensation, Black Lung Benefits, and Veterans’ Disability Benefits. Each Table of Contents topic has a link to that section in html or pdf formats.

Specific information provided depends on the topic. At approximately 528 pages in length, you will find something in the Annual Statistical Supplement, 2012 to interest you. The Supplement includes more than 240 statistical tables of comprehensive data on Social Security and Supplemental Security Income. Using Social Security as an example, topics include:

From the Highlights and Trends section, here are two interesting tidbits for you:  

“About 55.4 million persons received Social Security benefits for December 2011, an increase of 1,372,512 (2.5 percent) since December 2010. Sixty-nine percent were retired workers and their spouses and children, 11 percent were survivors of deceased workers, and 19 percent were disabled workers and their spouses and children.”

“OASDI benefit awards in calendar year 2011 totaled 5,567,020, including 2,577,647 to retired workers, 498,248 to their spouses and children, and 885,713 to survivors of insured workers. Benefits were awarded to 998,979 disabled workers and to 606,433 of their spouses and children.”

Again, more than just Social Security information is in the Annual Statistical Supplement, 2012. Enjoy.

Average Social Security benefit amounts

Posted on by

Q: How much is the average Social Security benefit amount? 

A: The answer varies widely depending on the type of benefit. Benefits are payable through the three Social Security component programs of Old-Age (Retirement), Survivors and Disability. Within each, a variety of benefits is possible. Retirement and disability benefits could be payable to the worker based on his or her own Social Security number record as well as to eligible family members such as spouses or children. Survivor benefits are to eligible family members.  

In October 2012, the average monthly Social Security amount paid to all beneficiaries, for all types of Social Security benefits, was $1,131. 

For retirement benefits, the average worker, based on his or her individual work record, received $1,237 that month. More October 2012 data is here.  

Are you average? Estimate your own retirement amount with the SSA Retirement Planner tools, especially the Retirement Estimator. Get your online Social Security Statement for individual and family estimates for SSA retirement, survivors and disability benefits.

 

 
Type of beneficiary

Beneficiaries

Total monthly benefits (millions of dollars)

Average monthly benefit (dollars)

  

Number (thousands)

Percent

  
All beneficiaries

56,577

100.0

64,007

1,131.32

  
Old-Age Insurance    
Retired workers

36,593

64.7

45,275

1,237.28

  
Spouses

2,285

4.0

1,402

613.33

  
Children

605

1.1

366

605.30

  
Survivors Insurance    
Widow(er)s and parents a

4,212

7.4

4,900

1,163.36

  
Widowed mothers and fathers b

154

0.3

137

887.45

  
Children

1,886

3.3

1,479

784.40

  
Disability Insurance    
Disabled workers

8,802

15.6

9,780

1,111.09

  
Spouses

164

0.3

49

298.95

  
Children

1,876

3.3

619

329.96

  

 

Social Security webinar: Frequently Asked Questions

Posted on by

The Social Security Administration field office organization includes ten regions. The Denver Region, where I am, directly serves residents of Colorado, Montana, North Dakota, South Dakota, Wyoming, Utah, western Minnesota and three Canadian provinces.  

You might find a recent Denver Region webcast titled “Social Security Frequently Asked Questions” interesting. 

Those of us who teach about the Social Security programs are frequently asked certain topics and questions. This free webcast answers some of them. In approximately 20 minutes, the webinar discusses Social Security retirement, survivors and disability program topics, how benefit amounts are determined for individuals and spouses, how to replace a Social Security card, and more.  

So that you can easily find information for yourself, the webinar also highlights the Frequently Asked Questions (FAQs) area of the Social Security website, www.socialsecurity.gov. 

I hope you find “Social Security Frequently Asked Questions” interesting.  If so, please share it with others.

SSA Cost-of-Living-Adjustment for 2013 Announced Today

Posted on by

Monthly Social Security and Supplemental Security Income (SSI) benefits for nearly 62 million Americans will increase 1.7 percent in 2013, the Social Security Administration announced today. 

The 1.7 percent cost-of-living adjustment (COLA) will begin with benefits that more than 56 million Social Security beneficiaries receive in January 2013. Increased payments to more than 8 million SSI beneficiaries will begin on December 31, 2012. 

Some other changes that take effect in January of each year are based on the increase in average wages. Based on that increase, the maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $113,700 from $110,100. Of the estimated 163 million workers who will pay Social Security taxes in 2013, nearly 10 million will pay higher taxes as a result of the increase in the taxable maximum. 

Information about Medicare changes for 2013, when announced, will be available at www.Medicare.gov. For some beneficiaries, their Social Security increase may be partially or completely offset by increases in Medicare premiums.   

The Social Security Act provides for how the COLA is calculated. Read more at www.socialsecurity.gov/cola.  

A fact sheet showing the effect of the various automatic adjustments for Social Security and Supplemental Security Income is at http://www.socialsecurity.gov/pressoffice/factsheets/colafacts2013.htm 

More about SSA child benefits

Posted on by

Several questions related to Social Security benefits for children were received this week. Here they are:

Q: If I received Social Security, would benefits paid to my minor children reduce my own amount?

A: No. You receive the same amount whether or not anyone else, child or adult, receives benefits through your work record.

Q: How much would my minor child receive if I started Social Security benefits? 

A: Amounts paid to eligible children through your record are based on your earnings record. When you are alive, such as with Social Security retirement and disability, a child can receive up to 50 percent of your full retirement age (FRA) amount. This might not mean 50 percent of what you receive. For example, your own retirement amount could be less or more than your FRA amount depending on your age when starting benefits.

For survivor benefits, an eligible child can receive up to 75 percent of the deceased workers full retirement amount.

These percentages are only a guide. Based on each person’s individual work history, there is a maximum monthly amount payable to other family members receiving benefits through that work record. If this family maximum is reached, amounts payable to eligible family members are reduced. This maximum does not apply to benefits paid to the worker. As noted above, the worker receives the same amount whether or not anyone else receives benefits through their Social Security work record.

Relatively uncommon, it is also possible that no benefits are payable to family members if the workers earnings have been very low.

Use the calculators at the Social Security Retirement Planner to estimate your SSA retirement FRA amount. For disability and survivors family estimates, request your Social Security online statement.

Q: Are Social Security child benefits paid into college?

A: No. SSA child benefits stop when the child reaches age 18 unless the child is a full-time student at a secondary (or elementary) school or disabled, assuming all requirements are met. Student benefits usually continue until graduation, or until two months after reaching age 19, whichever comes first. They are not paid into college.

More information is in SSA publication 05-10085, Benefits for Children.

Q: Can children receive a survivors benefit if a parent died and had never paid into Social Security?

A: Survivors benefits are not be payable unless the deceased had worked long enough to earn Social Security coverage. Having enough work means that the person is insured. You earn insured status, measured by credits (also known as quarters of coverage), only by having enough employment. Insured status work requirements are different for retirement, disability and survivors benefits.

People die at all ages. The amount of work needed to provide Social Security benefits for your survivors depends on your age when you die. The younger a person, the fewer credits needed. See http://www.socialsecurity.gov/survivorplan/onyourown.htm.

 

Looking for Social Security information? The Social Security Administration website is at www.socialsecurity.gov. Link to FAQ’s from the homepage or go directly to http://ssa-custhelp.ssa.gov/. 

Look for the “.gov” at the end of the web address. If it isn’t .gov, it isn’t the real Social Security website.

 

Just want Medicare? Use the online Medicare application.

Posted on by

The Medicare Initial Enrollment Period was discussed last week. Today’s topic is the online Medicare application, applicable for people approaching age 65 and not yet wanting to receive Social Security benefits. 

People already getting Social Security benefits are enrolled in Medicare Part A (Hospital) and Part B (Medical) automatically. Since there is a monthly premium for Part B coverage, there is an option of turning it down. Learn about the different parts of Medicare at  http://www.socialsecurity.gov/pgm/medicare.htm.

Automatic enrollment does not apply if you are not receiving Social Security payments. In this case, complete the online Medicare application or contact Social Security about three months before your 65th birthday to sign up for Medicare. 

Sign up for at least Medicare Part A (Hospital). Not everyone needs to enroll in Medicare Part B (Medical) at age 65. Whether you do or not is something that you must research and decide.  No one at Social Security can decide this for you. 

A major reason for deferring Part B enrollment is when a person is covered under a group health plan, either from their own or a spouse’s current employment. For more about this, see Medicare, SSA publication 05-10043. Go to the “Signing up for Medicare” section and the “special enrollment period for people covered under an employer group health plan.” 

Do you have TRICARE coverage? See the Tricare website before making your Part B decision. 

Now you are ready to file for Medicare. How do you do this? 

You have two basic options. One is to contact Social Security (national toll-free number 800-772-1213 / TTY 800-325-0778 or your local office), make an appointment, and file for Medicare at a SSA office or over the telephone. The second option is to take about 10 minutes, at your convenience including weekends, and complete the Medicare application online at www.socialsecurity.gov. 

Social Security encourages you to file online.  It’s easy. 

At the Benefit Application screen, start your application by selecting “Apply For Benefits. Then you provide identifying information and receive an application number. This number lets you leave a started application and complete later. It also lets you track the status of a completed application. Moving along, you confirm that you are filing only for Medicare, not for monthly Social Security benefits, provide information about other health insurance coverage, and state if you want Medicare Part B. Drop down boxes provide information about specific questions. After a few minutes, you reach the summary screen. Review your application for accuracy, then sign it electronically. You get a receipt. 

What happens next? Your local Social Security office, based on zip code, receives your electronic application for review. If there are questions, you are contacted. If none, the office completes its part of the process. 

What about proving your age? The Social Security representative matches identifying information from the application against existing Social Security records. Often your application is completed without additional age evidence from you. Sometimes a birth certificate is requested. 

A word of caution: Filing only for Medicare, and not Social Security benefits, might be a good decision for you but consider your options. For example, will your expected earnings prevent Social Security benefits from being payable? Can family members receive on your record? Use the Social Security retirement planner tools when making your decision.

Average Social Security benefit amounts

Posted on by

A participant asked how much the average Social Security survivor benefit amount was while I was teaching a Social Security retirement session this month. At the time I did not know, but have since found the information in the newest edition of the annual Social Security publication, Fast Facts & Figures About Social Security, 2012. 

The average amount of any type of Social Security benefit is a moving target. The amount changes each month as new beneficiaries start receiving benefits and others leave the rolls. Wide variability also exists between different types of benefits. Just within the broad topic of Social Security survivors benefits, benefit types include those payable to children, young widows or widowers eligible because of children receiving benefits, widow or widowers at least age 60 as well as those eligible because of disability. This is not a complete list. 

For Social Security retirement, survivors and disability average amounts as of December 2011, see Fast Facts & Figures About Social Security, 2012. The link brings you to the Fast Facts booklet. From there, go the section titled OASDI Program (OASDI is old age (retirement), survivors and disability insurance = Social Security) and then to the Average Benefit Amounts section in the left-hand column. 

All Social Security amounts are largely based on lifetime earnings of the worker involved. For personal planning, Social Security offers free online tools to help you estimate benefits. For retirement related estimates, go to the Retirement Planner section. Different calculators are there including the Retirement Estimator, which connects to your actual work record. 

You can calculate survivor and disability estimates at http://www.socialsecurity.gov/planners/benefitcalculators.htm. Another method, one that provides estimates based on your actual work record, is to register and get your Social Security Statement online. In your Statement are estimates for retirement, disability and survivors benefits plus a list of your lifetime earnings amounts according to Social Security records. View a sample Statement at http://www.socialsecurity.gov/mystatement/SSA-7005-OL.pdf.   

To protect your personal information, before getting your Statement online you register by creating a My Social Security Account. Instructions and a short video explaining the registration process are at the Social Security Statement online page. 

Average amounts can be useful. For personal family financial planning, estimates based on your own work record are better.