Transcript Native Rural Electric Cooperative 2004

The Social Security Statement
The Statement provides you
with estimates of monthly
Social Security retirement,
disability and survivors
benefits
The Statement provides
earnings for you to check
for accuracy
The Social Security Statement
How Do You Qualify for Retirement Benefits?
Each $1,050 in earnings gives
you one credit
You can earn a
maximum of 4 credits
per year
Example: To earn 4 credits in 2008, you must earn at
least $4,200. Earning 40 credits (10 years of work)
throughout your working life will qualify you for a
retirement benefit.
How Social Security Determines Your Benefit
Social Security benefits are based on earnings
Step 1 –
Your wages are adjusted for inflation
Step 2 –
Find the average of your 35 highest earnings years
Step 3 –
Result is “average indexed monthly earnings”
Full Retirement Age
Year of Birth
Full Retirement Age
1937
1938
1939
1940
1941
1942
1943 – 1954
1955
1956
1957
1958
1959
1960 & later
65
65 & 2 months
65 & 4 months
65 & 6 months
65 & 8 months
65 & 10 months
66
66 & 2 months
66 & 4 months
66 & 6 months
66 & 8 months
66 & 10 months
67
Deciding When To Retire
If You’re A Worker and Retire:
As early as age 62, (benefit will be
permanently reduced)
At Full Retirement Age (FRA)
(no benefit reduction—100%)
Delayed retirement (benefit
increased by 8% per year between
FRA and age 70)
Your Family Can Receive Benefits
Your Spouse
At age 62 or older
At any age if caring for child under 16
or disabled
Divorced spouses may qualify
Your Child
Not married under 18
(under 19 if still in high school)
Not married and disabled before age 22
Ready to Retire? Option 1
Ready to Retire? Option 2
Call Social Security
toll-free at
1-800-772-1213
to ask for an appointment with
a Social Security representative
If you are deaf or hard of
hearing, you may call
our TTY number
TTY 1-800-325-7778
What Will You Need When Applying
for Your Social Security Benefits?
You Can Work & Still Receive Benefits
If You Are
Under full
retirement age
You Can Make
Up to
$13,560/yr.
($1,130/mo.)
Reaching full retirement age this year
$36,120/yr.
($3,010/mo.)
Full retirement
age & above
No Limit
If You Make More,
Some Benefits Will
Be Withheld
$1 for every $2
$1 for every $3
What Income Counts Towards
the Earnings Test Limits
Income that Counts as Earnings
Gross wages from employment
and/or net earnings from self employment
Income that Does NOT Count as Earnings
Inheritance payments
Interest and dividends
Pensions
Capital gains
Income from investments
Other sources
Your Benefits May Be Taxable
• Determine Modified Adjusted Gross Income
-- All taxable income plus 1/2 of Social Security
benefit received
• Individual Tax Return
-- $24,999 or less - no Federal tax on Social
Security benefit
-- $25,000 - $34,000 - pay Federal tax on 50%
of Social Security benefit
-- More than $34,000 - pay Federal tax up to 85%
of Social Security benefit
For more information,
call IRS toll free:
1-800-829-3676
Your Benefits May Be Taxable
• Couple, Married Filing Joint Tax Return
-- $31,999 or less - no Federal tax
-- $32,000 - $44,000 - pay Federal
tax on 50% of Social Security benefit
-- $More than 44,000 - pay Federal tax up to
85% of Social Security benefit
For more information,
call IRS toll free:
1-800-829-3676
It also provides valuable disability and
survivors benefits.
Who Can Get Survivors Benefits?
Widow or Widower:
Reduced benefits at age 60
If disabled as early as age 50
At any age if caring for child
under 16 or disabled
Divorced widows/widowers may qualify
If Your Child Is:
Not married under age 18 (under 19 if still in high school)
Not married and disabled before age 22
Other Survivors Benefits
Parents
Age 62 and was receiving
at least one-half support
from deceased worker
Lump Sum Death
Payment ($255)
Most spouses or children
Social Security’s Disability Definition:
A medical condition preventing substantial
work for at least 12 months, or expected to
result in death. The determination also
considers age, education & work experience.
Who Can Get Disability Benefits?
Worker
Must have paid into
Social Security
five out of last 10 years
Spouse
At Age 62 or older
At any age if caring for
child under 16 or disabled
Divorced spouses may qualify
Who Can Get Disability Benefits?
Child
Not married under 18
(under 19 if still in high school)
Not married and disabled
before age 22
Who Can Get Medicare?
Age 65 & older
OR
Receiving Social Security disability
benefits for 24 consecutive months
OR
Permanent Kidney Failure
OR
Lou Gehrig’s disease (ALS)
When Should You Sign Up for Medicare?
Medicare Enrollment Periods:
 Initial - at age 65
 Special - if still working
 General - January-March
Medicare Coverage
Part A Hospital Insurance

Covers most inpatient hospital expenses
2008 Deductible $1,024
Part B Supplementary Medical Insurance

Covers 80% doctor bills & other
outpatient medical expenses after
1st $135 in approved charges
2008 Monthly Premium $96.40*
Part D Medicare Prescription Drug Plan

Covers a major portion of prescription
drug costs for Medicare beneficiaries
2008 average Monthly Premium $25
Adjusted Medicare Part B Premiums in 2008
Medicare beneficiaries with income
greater than $82,000 ($164,000/couple)
Part B Premiums in 2008 will be calculated on a
sliding scale based on the modified adjusted gross income
reported on IRS tax returns
Under $82,000 ($164,000/couple):
$82,000-$102,000 ($164,000-$204,000/couple):
$102,000-$153,000 ($204,000-$306,000/couple):
$153,000-$205,000 ($306,000-$410,000/couple):
Over $205,000 ($410,000/couple):
Part B premium $96.40
Part B premium $122.20
Part B premium $160.90
Part B premium $199.70
Part B premium $238.40
Adjusted Medicare Part B Premiums in 2008
Automated data from IRS used to
calculate premium
Income from 2 years prior used to
compute premium (e.g., adjusted
gross income for 2006 used to
calculate 2008 premium)
Appeals available if income has
changed due to divorce, death
of a spouse, retirement, natural
disaster, etc.
Part D Medicare Prescription Drug Plan
Must have Medicare Part A or Part B
Enrollment is voluntary
 Premiums vary State-by-State
 In 2008, you pay the first $275 in
drug costs (called a deductible)
 Extra help is available through Social
Security for low-income beneficiaries
to meet premium, deductible &
co-payment costs of program
For More Information
1-800-MEDICARE
www.medicare.gov
Social Security’s Online Services
Retirement, Disability & Spouse’s
Applications
Retirement/Disability/Survivors
Planners
Benefit Calculators
Request a Replacement Medicare Card
Request a Social Security Statement
Request a Benefit Verification Letter
Change of Address
www.socialsecurity.gov
Retirement Planner
Benefit Calculators
www.socialsecurity.gov/applyforbenefits
Visit Our Website or Call!
www.socialsecurity.gov
-or-
1-800-772-1213
TTY 1-800-325-0778