To
replace part of the earnings lost due to retirement.
TYPES
OF ASSISTANCE:
Direct Payments with Unrestricted Use. Place Cursor Here for Definition
USES
AND USE RESTRICTIONS:
Monthly
cash benefits are paid to eligible retired workers and their eligible
auxiliaries. There are no restrictions on use of benefits by a beneficiary,
although the right to future benefits is not transferable or assignable.
ELIGIBILITY
REQUIREMENTS:
Applicant
Eligibility: Retired workers age 62 and over
who have worked the required number of years under Social Security
are eligible for monthly benefits. Coverage credits under the social
security systems of certain foreign countries with which the U.S.
has reciprocal agreements may be taken into account to meet the
requirements. If an eligible worker age 62 or over receives benefits
before full-benefit retirement age (FRA) (currently age 65 and 4
months for workers age 62 in 2001), the individual's retirement
benefit will be permanently reduced. Also, certain family members
can receive benefits including: (1) A wife or husband age 62 or
over; (2) a spouse at any age, if a child who is under age 16 or
is disabled is in his or her care and is entitled to benefits based
on the worker's record; (3) unmarried children under age 18 (or
under age 19 for students in elementary or secondary school); (4)
unmarried adult offspring at any age if disabled before age 22;
and (5) divorced wives or husbands age 62 or over who were married
to the worker for at least 10 years. Beginning January 1985, spouses
ages 62 or over who have been divorced for at least 2 years (and
married to the worker for at least 10 years) may become entitled
to benefits regardless of whether the former spouse who is at least
age 62 and fully insured has applied for benefits. Effective January
1991, the 2-year waiting period for payment of divorced spouse's
benefits without regard to the former spouse's earnings was waived
if the former spouse was entitled to benefits prior to the divorce.
All benefits, other than benefits to disabled beneficiaries, and
beneficiaries FRA and older, are subject to an earnings test. Beginning
with the year 2000, the retirement earnings test was eliminated
beginning with the month in which the beneficiary reaches FRA. A
person at and above FRA will not have Social Security benefits reduced
because of earnings. In the calendar year in which a beneficiary
reaches FRA, benefits are reduced $1 for every $3 of earnings above
the limit allowed by law, $30,000 in 2002, but this reduction is
applied only to months prior to attainment of FRA. For years before
the year the beneficiary attains FRA, the reduction in benefits
is $1 for every $2 of earnings over the annual exempt amount, $11,280
in 2002. For workers who are first eligible after 1985 for both
(a) a pension based on non-covered employment; and (b) Social Security
retirement (or disability) benefits, a different benefit formula
applies which provides somewhat lower benefits. The Social Security
benefit for a spouse of a retired worker is subject to a pension
offset if the spouse receives a governmental pension based on his
or her own work in non-covered employment. However, the offset does
not apply if: (i) the person has received or became eligible to
receive the pension before December 1, 1982, and met eligibility
requirements for Social Security auxiliaries' benefits as they existed
in January 1977; or (ii) if the person receives, or is eligible
to receive, the pension before July 1, 1983, and the person was
dependent on his or her spouse for at least one-half support at
the time the spouse died, became disabled or became entitled to
Social Security benefits. The amount of the public pension used
for purposes of the offset against Social Security spouse's benefits
is equal to two-thirds of the public pension. The benefit for the
spouse of a retired worker is also offset dollar for dollar by the
amount of any Social Security benefit the spouse receives based
on his or her own work. A worker and spouse can get benefits only
for the months throughout which all conditions of eligibility were
met, effective for people who have reached age 62 since August 1981.
In addition, no benefit can be paid to an alien in the United States
unless he or she is lawfully present in the United States.
Beneficiary
Eligibility: Benefits are paid to retired
workers age 62 and over who have worked the required number of
years under Social Security, and to certain family members.
Credentials/Documentation:
Proof of age is required. If applying for benefits for auxiliaries,
additional proofs of age, dependency, and relationship to the
retired worker may be required. To receive benefits, auxiliaries
must have a SSN.
Pre-application
Coordination: None. This program is excluded
from coverage under E.O. 12372.
Application
Procedure: Call toll free at 1-800-772-1213
or, telephone or visit the local Social Security Office. Retired
workers, spouses and divorced spouses may also apply via the Internet.
Award
Procedure: After review of the application
is completed, the applicant (or representative payee) will be
notified by mail.
Deadlines:
It is to the worker's advantage to apply for benefits in the three
months before he or she retires. Retroactivity is limited to 6
months if unreduced benefits are being awarded. No retroactivity
is provided where reduced benefits are being awarded.
Range
of Approval/Disapproval Time: Not applicable.
Appeals:
Call toll free at 1-800-772-1213 or telephone or visit the local
Social Security office. The appeal process can range from a case
review to a review by the Federal Courts. An appeal must be requested
in writing within 60 days of the date on which a written notice
of SSA's decision is received by the applicant. The 60 days start
the day after you receive the notice.
Renewals:
Not applicable.
ASSISTANCE
CONSIDERATIONS:
Formula
and Matching Requirements: This program has
no statutory formula or matching requirements.
Length
and Time Phasing of Assistance: Not applicable.
POST
ASSISTANCE REQUIREMENTS:
Reports:
Any change in address or eligibility requirements (such as work
status, marital or family status, or school attendance) must be
reported to the Social Security Office when it occurs.
Audits:
None.
Records:
None.
FINANCIAL
INFORMATION:
Account
Identification: 20-8006-0-7-651.
Obligations:
(Benefit Payments) These figures represent benefits actually paid,
or expected to be paid. FY 01 $304,361,000,000; FY 02 est $318,474,000,000;
and FY 03 est $331,063,000,000.
Range
and Average of Financial Assistance:
Monthly cash benefits for a worker retiring at age 65 in 2002
range up to $1,660, and to a maximum of $2,906.10 for a family
of such a worker receiving benefits. As of December 31, 2001,
the average benefit paid to a retired worker alone (no family
members receiving benefits) was $860 and the average amount
payable to a retired worker with an eligible spouse was $1,455.
In fiscal year 2001, an average of 31,848,000 retired workers and
their auxiliaries received monthly cash benefits; in fiscal year
2002, it is estimated that the number receiving benefits will grow
to 32,122,000. For fiscal year 2003, the number receiving benefits
is estimated to be 32,417,000.
REGULATIONS,
GUIDELINES, AND LITERATURE:
Code of Federal Regulations, Title 20, Parts 401, 404, and 422.
"Your Social Security", "Thinking About Retiring", and many other
publications are available from any Social Security office without
charge.
INFORMATION
CONTACTS:
Regional
or Local Office: Consult Appendix IV of the
Catalog.
Headquarters
Office: Office of Public Inquiries, Room 4100,
Annex, Social Security Administration, Baltimore, MD 21235. Telephone:
(410) 965-2736. Use the same number for FTS.
