Social Security Power Point

11

Social Security Benefits America Social Security Benefits America

22

Some Housekeeping Notes

33

• You may wish to do additional research at our website about how Social Security benefits are affected by non-covered pensions:

www.ssocialsecurity.gov/gpo-wep/.

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55

66

• Frequently Asked Questions about how Social Security benefits are affected by

non-covered pensions are available by clicking on “More” in the left hand column

under Windfall Elimination Provision at www.socialsecurity.gov/gpo-wep/.• 2 calculators to compute how your non-covered

pension will affect your benefit are available at:

www.socialsecurity.gov/retire2/anyPIAWepjs04.htm

77

www.socialsecurity.gov/OACT/anypia.html

Information about 218 agreements and

Coverage can be answered by the State

Social Administrator: Richard Beckstead

88

1935Retirement Insurance

1935Retirement Insurance

History - Social Security’s ProgramsHistory - Social Security’s Programs

1956Disability Insurance

1956Disability Insurance

1939Survivors Insurance

1939Survivors Insurance

99

Other ProgramsOther Programs

1965 Medicare

1965 Medicare

2003 Medicare

Part D

2003 Medicare

Part D

1010

50 million people50 million people

Who Gets Benefits from Social Security?Who Gets Benefits from Social Security?

31.5 million Retired Workers2.9 million Dependents

7.1 million Disabled Workers, 1.8 million Dependents

4.6 millionWidows/ Widowers

1.9 millionChildren of

Deceased Workers

2/20082/2008

1111

Payments to

Beneficiaries

Workers&

Employers

Who Pays for Social Security?Who Pays for Social Security?

1212

Where Does the Money Come From?Where Does the Money Come From?

Payroll Tax 84%

Trust Fund Interest 14%

Taxation of Benefits 2%

Payroll Tax 84%

Trust Fund Interest 14%

Taxation of Benefits 2%

Social Security Trust Fund 2008Social Security Trust Fund 2008

1313

In 2016, Social Security Will Begin PayingMore in Benefits than is Collected in TaxesIn 2016, Social Security Will Begin PayingMore in Benefits than is Collected in Taxes

1313

1414

In 2016, Social Security Will Begin PayingMore in Benefits than is Collected in TaxesIn 2016, Social Security Will Begin PayingMore in Benefits than is Collected in Taxes

1414

At exhaustion in 2036,only about 78% of

benefits could be paid.

At exhaustion in 2036,only about 78% of

benefits could be paid.

1515

Social Security Cost-of-Living AdjustmentsSocial Security Cost-of-Living Adjustments

Effective Date Amount

June 1975 8%June 1976 6.4%June 1977 5.9%June 1978 6.5%June 1979 9.9%June 1980 14.3%June 1981 11.2%June 1982 7.4%Dec 1983 3.5%Dec 1984 3.5%Dec 1985 3.1%Dec 1986 1.3%Dec 1987 4.2%Dec 1988 4%Dec 1989 4.7%Dec 1990 5.4%Dec 1991 3.7%


June 1975 8%June 1976 6.4%June 1977 5.9%June 1978 6.5%June 1979 9.9%June 1980 14.3%June 1981 11.2%June 1982 7.4%Dec 1983 3.5%Dec 1984 3.5%Dec 1985 3.1%Dec 1986 1.3%Dec 1987 4.2%Dec 1988 4%Dec 1989 4.7%Dec 1990 5.4%Dec 1991 3.7%


Dec 1992 3%Dec 1993 2.6%Dec 1994 2.8%Dec 1995 2.6%Dec 1996 2.9%Dec 1997 2.1%Dec 1998 1.3%Dec 1999 2.5%Dec 2000 3.5%Dec 2001 2.6%Dec 2002 1.4%Dec 2003 2.1%Dec 2004 2.7%Dec 2005 4.1%Dec 2006 3.3%Dec 2007 2.3%

Dec 2008 5.8%


Dec 1992 3%Dec 1993 2.6%Dec 1994 2.8%Dec 1995 2.6%Dec 1996 2.9%Dec 1997 2.1%Dec 1998 1.3%Dec 1999 2.5%Dec 2000 3.5%Dec 2001 2.6%Dec 2002 1.4%Dec 2003 2.1%Dec 2004 2.7%Dec 2005 4.1%Dec 2006 3.3%Dec 2007 2.3%

Dec 2008 5.8%

1616

Example: Worker with averagepre-retirement income of $30,000

(Retiring at age 66 in 2009)

1st Year of Retirement

Pension $13,000/ 50%

Social Security $13,000/50%

Inflation 3% per year

Example: Worker with averagepre-retirement income of $30,000

(Retiring at age 66 in 2009)

1st Year of Retirement

Pension $13,000/ 50%


Inflation 3% per year

Value of Inflation ProtectionValue of Inflation Protection

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Value of Inflation ProtectionValue of Inflation Protection

example continued:

Worker with averagepre-retirement income of $30,000

example continued:

Worker with averagepre-retirement income of $30,000

5th Year of RetirementPension $13,000/47%












1818

Life Expectancy for Those Age 65 TodayLife Expectancy for Those Age 65 Today

Men Women

U.S. Population 81 85

White 80 84

African Americans 79 83

Hispanic 85 88

Asian 84 88

American Indians 84 88

Men Women

U.S. Population 81 85

White 80 84

African Americans 79 83

Hispanic 85 88

Asian 84 88

American Indians 84 88

1919

You Need to Work to Earn Social Security CreditsYou Need to Work to Earn Social Security Credits

Each $1,090 in earnings gives you one credit

You can earn a maximum of 4 credits per year

Example: To earn 4 credits in 2009, you must earn at least $4,360. Earning 40 credits throughout your working life will qualify you for a retirement benefit.

Each $1,090 in earnings gives you one credit

You can earn a maximum of 4 credits per year

Example: To earn 4 credits in 2009, you must earn at least $4,360. Earning 40 credits throughout your working life will qualify you for a retirement benefit.

2020

Your Age When You Retire Affects Your BenefitsYour Age When You Retire Affects Your Benefits

If You’re a Worker and Retire

At age 62, you get a lower monthly payment permanently At your full retirement age, you get your full benefit You get an even higher monthly payment if you work past your full retirement age

2121

In Addition to the Retiree,Who Else Can Get Benefits?In Addition to the Retiree,

Who Else Can Get Benefits?

Your Spouse

At age 62 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

2222

Full Retirement AgeFull Retirement Age

Year of Birth Full Retirement Age

1937 or earlier 65

1938 65 & 2 months

1939 65 & 4 months

1940 65 & 6 months

1941 65 & 8 months

1942 65 & 10 months

1943 – 1954 66

1955 66 & 2 months

1956 66 & 4 months

1957 66 & 6 months

1958 66 & 8 months

1959 66 & 10 months

1960 or later 67

Year of Birth Full Retirement Age

1937 or earlier 65

1938 65 & 2 months

1939 65 & 4 months

1940 65 & 6 months

1941 65 & 8 months

1942 65 & 10 months

1943 – 1954 66

1955 66 & 2 months

1956 66 & 4 months

1957 66 & 6 months

1958 66 & 8 months

1959 66 & 10 months

1960 or later 67

2323

How Social Security Determines Your BenefitHow Social Security Determines Your Benefit

Social Security benefits are based on earnings

Step 1 Your wages are adjusted for changes in wage levels

Step 2 Find the monthly average of your 35 highest earnings years

Step 3 Result is “average indexed monthly earnings”

2424

If your average monthly earnings are = $5,200Then your monthly benefit would be = $1974

Average Monthly Earnings $5,200

90% of First $744 = $670

32% of Earnings over $744 through $4,483 $3,739 = $1,196($4,483-$744=$3,739)

15% of Earnings over $4,483 $717 = $108($5,200-$4,483=$717)

$5,200$1974

If your average monthly earnings are = $5,200Then your monthly benefit would be = $1974


90% of First $744 = $670

32% of Earnings over $744 through $4,483 $3,739 = $1,196($4,483-$744=$3,739)

15% of Earnings over $4,483 $717 = $108($5,200-$4,483=$717)

$5,200$1974

Retirement Benefit Computation ExampleRetirement Benefit Computation Example

2525

What You Can Expect at Full Retirement AgeWhat You Can Expect at Full Retirement Age

% o

f E

arni

ngs

LowEarner

AverageEarner

HighEarner

56%

41%

34%

2626

Two Provisions Affecting Benefits

• WEP – Reduces Your Own Benefit

• GPO – Reduces Any Benefit You Might Be Due on Your Spouse’s Social Security Record • Understanding Why These Laws Were

Enacted Helps Understand How They Work

2727

Points to Remember

• If you have 40 work credits, you will be eligible for a monthly Social Security retirement benefit

• If you have paid Social Security taxes on 30 or more “substantial” years of earnings, your benefit will not be reduced

2828

If any part of your government pensionis based on work not covered by

Social Security, you may be affected bythe Windfall Elimination Provision.

If any part of your government pensionis based on work not covered by

Social Security, you may be affected bythe Windfall Elimination Provision.

Windfall Elimination ProvisionWindfall Elimination Provision

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What’s Social About Social Security?

• One goal of Social Security is to raise the standard of income for lower income workers

3030

How Do We Do This?

• A weighted benefit formula

• A lower income worker receives a higher rate of return

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If your average monthly earnings are = $5,200Then your monthly benefit would be = $1,974


90% of First $744 = $670

32% of Earnings over $744 through $4,483 $3,739 = $1,196($4,483-$744=$3739)

15% of Earnings over $4,483 $717 = $108($5,200-$4,483=$717)

$5,200$1,974

If your average monthly earnings are = $5,200Then your monthly benefit would be = $1,974


90% of First $744 = $670

32% of Earnings over $744 through $4,483 $3,739 = $1,196($4,483-$744=$3739)

15% of Earnings over $4,483 $717 = $108($5,200-$4,483=$717)

$5,200$1,974

Computing Your Benefit

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Function of Weighted Formula

The formula gives proportionately higherbenefits to a worker with a low lifetime earnings.A worker with a substantial period of non-covered work during his lifetime appears to havelower lifetime earnings than he actually does.By adjusting the formula, WEP prevents workerswho receive a public pension based onnoncovered work from receiving an unintended advantage from the formula.

3333

Windfall Elimination Provision (WEP) - 2009Windfall Elimination Provision (WEP) - 2009

Normal Computation WEP Computation

90% of the First $744 40% of the First $744

32% of the Next $3739 32% of the Next $3739

15% of the Remainder 15% of the Remainder

Normal Computation WEP Computation

90% of the First $744 40% of the First $744

32% of the Next $3739 32% of the Next $3739

15% of the Remainder 15% of the Remainder

3434

Windfall Elimination Provision

The modified formula applies to youif you reach 62 after 1985 and first become eligible after 1985 for a monthly pension based in whole or in part on work where you did not paySocial Security taxes.

3535

Exception to the Windfall Elimination ProvisionException to the Windfall Elimination Provision

% of First FactorYears of Coverage in Benefit Formula

30 or more 9029 8528 8027 7526 7025 6524 6023 5522 5021 45

20 or less 40

% of First FactorYears of Coverage in Benefit Formula

30 or more 9029 8528 8027 7526 7025 6524 6023 5522 5021 45

20 or less 40

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Year Substantial Earnings

1937-50 $900

1951-54 $900

1955-58 $1,050

1959-65 $1,200

1966-67 $1,650

1968-71 $1,950

1972 $2,250

1973 $2,700

1974 $3,300

3737

1975 $3,525

1976 $3,825

1977 $4,125

1978 $4,425

1979 $4,725

1980 $5,100

1981 $5,550

1982 $6,075

1983 $6,675

1984 $7,050

3838

1985 $7,425

1986 $7,785

1987 $8,175

1988 $8,400

1989 $8,925

1990 $9,525

1991 $9,900

1992 $10,350

1993 $10,725

1994 $11,250

3939

1995 $11,325

1996 $11,625

1997 $12,150

1998 $12,675

1999 $13,425

2000 $14,175

2001 $14,925

2002 $15,750

2003 $16,125

2004 $16,275

4040

2005 $16,725

2006 $17,475

2007 $18,150

2008 $18,975

2009 $19,800

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Where to Find the Chart

• Our Electronic Fact Sheet – Windfall Elimination Provision

• www.socialsecurity.gov/pubs/10045.html

4242

Modified Formula

$744 $744

X 90% X 40%

$670 $298

$744 $744

X 90% X 40%

$670 $298

$372$372

4343

Largest Amount of Reduction in 2009

The greatest amount of reduction in the Social

Security check if you are 62 in 2009 will be

$372 per month

4444

WEP Guarantee

The WEP Guarantee limits reductions in the Social Security check to no more than ½ the amount of the non- covered government pension. The guarantee helps government workers who had low earnings on their government job.

4545

Pension Based on Covered and Non-Covered Earnings

• If the non-covered pension is based on both covered and non-covered service, the amount to be used is calculated by prorating the pension to the number of non-covered service months.

• The WEP guarantee amount is compared to the modified formula amount.

• The smaller reduction applies.

4646

Prorating the Pension

Pension amount Multilpied by months of

non-covered work Divided by total months

of work used to compute the pension

https://secure.ssa.gov/apps10/poms.ns

f/subchapterlisthapterlist!openview&res

tirctedcategory=3006

4747

401(k) and WEP

• WEP is applied to the payments received from defined contribution plans (e.g. 401 (k),

403(b), or 457 plans) based on non-covered employment if the plan is the PRIMARY retirement plan.

• If the plan is a secondary plan, WEP applies only if funds contain employer contributions.

• Payments from optional or voluntary savings plan not subject to WEP.

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Example

• Jake Oldham, born on 2/10/1947 has been receiving a non-covered pension since 1/04. In 3/09 he filed for Social Security retirement benefits. His gross non-covered pension amount is $2000 based on his work for the government from 1/76 through 12/03 (336 months). After averaging together his highest 35 years of earnings, his Average Indexed Monthly Earnings provides a monthly amount of $1000.

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Example Continued

• He has 17 years of “substantial” Social Security earnings.

• After the Average Indexed Monthly Earnings figure is put into the replacement formula, his full benefit amount would be $751.00.

• After using the chart of “substantial” earnings, Jake has 20 or fewer years of substantial earnings, so he will only receive 40% of the first $744 in the formula, not the standard 90%.

5050

Let’s Do The Math

Step 1 744 x .40 = 297.60Step 2 1000 – 744 = 256.00Step 3 256.00 x .32 = 81.92Step 4 297.60 + 81.92 = 379.50Step 5 Round Down to $379.00

751 - 372 379

Greatest Amount of WEP Reduction in 2009 Greatest Amount of WEP Reduction in 2009

5151

Between 20 and 29 Years of Substantial Earnings

Let’s say Jake Oldham has 23 years of “substantial” earnings instead of 17.

Step 1 744 x .55= 409.20 Step 2 1000 – 744 = 256.00 Step 3 256 x .32 = 81.92 Step 4 409.20 + 81.92 = 491.12 Step 5 Round Down to $491.00Because he had 6 more years of “substantial” earnings in this example, he receives $112 per month more eachmonth.

5252

WEP Guarantee

• Figured by comparing the regular Social Security amount and reducing it by half of the non-covered pension

• If this amount is higher than the amount obtained by using the “modified” amount computed in the previous example, the higher amount is paid.

5353

Guarantee Example

• June Fisher’s regular Social Security retirement amount is $540.00

• Her non-covered pension is $900• Under the guarantee, her Social Security

cannot be reduced more than $450.00 (1/2 of her non-covered pension)

• Social Security compares whether the “modified” formula or the “guarantee” provides the higher benefit

5454

Type of Benefits Affected by WEP

• Social Security Retirement

• Social Security Disability

5555

Will WEP Affect Me?

• 1. Is the type of benefit you will be filing for either Social Security retirement or disability benefits?

If Yes, Go to Step 2

If No, WEP does not apply (WEP does

not apply to survivors benefits)

5656

Continued

• 2. Will you first be eligible after 1985 for the Social Security retirement or disability benefit?

If Yes, go to step 3

If No, WEP does not apply (Those eligible for Social Security retirement or disability before 1985 will not be subject to WEP)

5757

Continued

• 3. Will you be entitled to a pension that is based in whole or in part on non-covered employment after 1956?

If Yes, go to Step 4

If No, WEP does not apply (WEP would not apply to pensions based on earnings before 1956)

5858

Continued

4. Using the “substantial” earnings table and your Social Security Statement, count up how many years of “substantial” earnings you have. Do you have 30 or more years?

If Yes, WEP does not apply If No, WEP will apply. Use the chart that

shows what the percentage that will be used will be (e.g. 29 years – 85%, 24 years – 60%, 20 years or less 40%) in your computation of Social Security retirement or disability benefits.

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Spouse’s Benefits

6060

Government Pension Offset (GPO)Government Pension Offset (GPO)

If you receive a government pension based on work not covered by Social

Security, your Social Security spouse’s or widow(er)’s benefits may be reduced.

If you receive a government pension based on work not covered by Social

Security, your Social Security spouse’s or widow(er)’s benefits may be reduced.

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GPO & Spouse’s Benefits

• Spouses benefits were intended to provide income for spouses who had little or no income.

• If a spouse has worked and is insured for their own Social Security retirement benefit, they receive the difference between their own retirement amount and one-half of the spouse’s amount.

6262

Spouse’s Benefits

• Before 1977, a spouse could have worked in non-covered work for a state, Federal or local government and yet receive a full Social Security spouse’s benefit.

• Effective 12/1/77, an offset was introduced so that government workers entitled to Social Security spouse’s benefits but had their own government pensions had those benefits considered when Social Security computed their spouse’s benefits.

6363

Purpose of GPO

• To limit the level of payment of spouse’s benefits to those who are not completely dependent upon the worker.

• Congress believed that a person who worked long enough to become entitled to a government pension would not be completely dependent on the worker.

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Example:$900 of government pension 2/3 = $600Social Security spouse’s benefits = $500No cash benefit payable by Social Security

Example:$900 of government pension 2/3 = $600Social Security spouse’s benefits = $500No cash benefit payable by Social Security

Government Pension Offset (GPO)Government Pension Offset (GPO)

Spouse’s Benefits

2/3 of amount of government pension will be used to reduce the Social Security spouse’s benefits

Spouse’s Benefits

2/3 of amount of government pension will be used to reduce the Social Security spouse’s benefits

6565

Comparison

Diane (No Govt Work) Mary (GPO)Own SSA Benefit $300 Govt Pension $300Spouse Benefit $600 SSA Spouse Ben $600$600 - $300 = $300 $300 pension =$300 Spouse + $300 Own= $300 X .6667= $600 Total $200 Offset $600 - $200 = $400 $300 Govt Pension + $400 SSA Spouse= $700 Total

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Exceptions to GPO

• Filed for Social Security benefits prior to April 1, 2004, or retired prior to July 1, 2004, and whose government pension is based on a job where he was paying Social Security taxes on the last day of employment.

• After April 1, 2004 receives a government pension and had been covered under both Social Security and the government system throughout the last 60 months of service.

• Spouse receiving a government pension not based on own work

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What Type of Social Security Benefits Are Affected by GPO?

• Spouses

• Widows

• Widowers

GPO Calculator: http://www.socialsecurity.gov/retire2/gpo-calc.htm GPO Calculator: http://www.socialsecurity.gov/retire2/gpo-calc.htm

6868

FAQS About WEP & GPO

• Q: Are dependents affected by WEP?• A: Since dependents benefits are derived from

the worker’s benefit, WEP affects dependents benefits.

Example: If John had 10 years of substantial coverage, his retirement amount would be $751. Since he has less than 20 years, his amount will be $379. His spouse would receive half of $379 not $751.

6969

FAQS Continued

• Q: What is the difference between WEP & GPO?• A: Both affect people with pensions from noncovered

employment. WEP affects the retirement or disability benefits of a person who receives a pension from noncovered work. A modified formula is used. If WEP applies, benefits are lower, but never totally eliminated.

• GPO affects the Social Security spouse’s benefits of a person who receives a pension from noncovered work. The Social Security payment is reduced by 2/3 of the government check. Under GPO, it is possible for the benefit to be totally eliminated.

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FAQS Continued

• Q: I have heard that if I am exempt from GPO, I will also be exempt from WEP. Is this correct?

• A: No. GPO applies to Social Security spouses and survivors benefits and WEP applies to the worker’s Social Security retirement benefit.

7171

FAQS Continued

• Q: Are the benefit estimates on my Social Security Statement accurate for government workers?

• A: Since Social Security cannot know if you are eligible for a pension from non-covered earnings, the estimates are not adjusted to consider WEP. Use the WEP calculator to obtain an accurate estimate.

7272

FAQS Continued

• Q: Is my Social Security retirement or disability benefit reduced if my spouse

receives a pension based on work not covered under Social Security?

• A: No, your own retirement or disability check won’t be reduced because of her noncovered pension, but if you receive spouse’s benefits from her benefit record, your spouse’s benefit could be affected.

7373

FAQS Continued

• Q: If I withdraw my contributions from the noncovered pension system, would I still be subject to WEP?

• A: Yes. The withdrawal of contributions would be considered as a lump-sum payment and be pro-rated on a monthly basis. Only if you withdrawn all of your contributions and relinquished all rights to the pension would WEP be eliminated.

7474

FAQS Continued

• Q: If I withdraw my contributions from the noncovered pension system and give up all rights to the pension , can I avoid GPO?

• A: Yes. If you withdraw your contributions and give up all rights to the noncovered pension before you begin receiving payments, you can avoid GPO.

7575

FAQS Continued

• Q: Is my Social Security survivor’s benefit affected if I also receive a pension based on my

deceased spouse’s noncovered work?• A: A pension you receive based on your deceased

spouse’s noncovered work will not affect your Social Security survivor’s benefit. However, if you are entitled to a widow’s or widower’s benefit under Social Security and you are also entitled to a government pension based on your own uncovered earnings, the government pension offset will reduce your Social Security survivors benefit by up to 2/3 of your government pension.

7676

You Can Work & Still Receive BenefitsYou Can Work & Still Receive Benefits

You Can If You Make More,If You Are Make Up To Some Benefits Will

Be Withheld

Under FullRetirement Age $14,160/yr. ($1,180/mo.) $1 for every $2

The Year Full RetirementAge is Reached $37,680/yr. ($3,140/mo.) $1 for every $3

Month of Full Retirement Age and Above No Limit No Limit

You Can If You Make More,If You Are Make Up To Some Benefits Will

Be Withheld

Under FullRetirement Age $14,160/yr. ($1,180/mo.) $1 for every $2

The Year Full RetirementAge is Reached $37,680/yr. ($3,140/mo.) $1 for every $3

Month of Full Retirement Age and Above No Limit No Limit

7777

What Will You Need When Applyingfor Your Social Security Benefits?

What Will You Need When Applyingfor Your Social Security Benefits?

Social Security number for each applicant

Proof of age (birth certificate)

Latest W-2 or self-employment tax return

Earnings estimate

Bank information for direct deposit

Information about marriages/divorces

Information about military or railroad service

Social Security number for each applicant

Proof of age (birth certificate)

Latest W-2 or self-employment tax return

Earnings estimate

Bank information for direct deposit

Information about marriages/divorces

Information about military or railroad service

7878

Who Can Get 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

Your Child if:

Not married under age 18 (under 19 if still in high school)

Not married and disabled before age 22

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

Your Child if:



7979

Parents

Age 62 and was receiving atleast one-half support from deceased worker

Lump Sum Death Payment ($255)

Most spouses or children

Parents

Age 62 and was receiving atleast one-half support from deceased worker

Lump Sum Death Payment ($255)

Most spouses or children

Other Survivors BenefitsOther Survivors Benefits

8080

Social Security’s Disability Definition: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.

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.

8181

Who Can Get Disability Benefits?Who Can Get Disability Benefits?

Worker

Must have paid into Social Security five out of last 10 years

Spouse

At age 62 At any age if caring for child

under 16 or disabled Divorced spouses may qualify

Worker

Must have paid into Social Security five out of last 10 years

Spouse

At age 62 At any age if caring for child

under 16 or disabled Divorced spouses may qualify

8282

Who Can Get Disability Benefits?Who Can Get Disability Benefits?

Child



Child



8383

65 & older

-or-

Receiving Social Security disability benefits at least 24 months

-or-

Permanent kidney failure

-or-

Amyotrophic Lateral Sclerosis (ALS)

65 & older

-or-

Receiving Social Security disability benefits at least 24 months

-or-

Permanent kidney failure

-or-

Amyotrophic Lateral Sclerosis (ALS)

Who Can Get Medicare?Who Can Get Medicare?

8484

When Can I Sign Up for Medicare?When Can I Sign Up for Medicare?

Medicare Enrollment Periods: Initial - at age 65

Special - if still working

General - January-March

8585

Medicare CoverageMedicare Coverage

Part A Hospital Insurance Covers most inpatient hospital expenses.

2009 Deductible $1,068

Part B Supplementary Medical Insurance Covers 80% doctor bills & other outpatient medical

expenses after 1st $135 in approved charges.

2009 Monthly Premium $96.40

Part D Medicare Prescription Drug Plan Covers a major portion of prescription drug costs

for Medicare beneficiaries.

2009 average Monthly Premium $37.00

Part A Hospital Insurance Covers most inpatient hospital expenses.

2009 Deductible $1,068

Part B Supplementary Medical Insurance Covers 80% doctor bills & other outpatient medical

expenses after 1st $135 in approved charges.

2009 Monthly Premium $96.40

Part D Medicare Prescription Drug Plan Covers a major portion of prescription drug costs

for Medicare beneficiaries.

2009 average Monthly Premium $37.00

8686

How Will the Prescription Drug Plan Affect You?

How Will the Prescription Drug Plan Affect You?

You will pay the first $295 (called an “annual deductible”).

Medicare will pay 75% of costs above $295 up to $2,700 in drug spending. You will pay only 25% of these costs.

You will pay 100% of the drug costs above $2,700 until you reach $4,350 in out-of-pocket spending. Your out-of- pocket spending includes the annual deductible and prescription co-payments. It does not include the monthly premiums you pay for your drug plan.

Medicare will pay about 95% of the costs after you have spent $4,350.

8787

Extra Help Could Further ReduceMedicare Prescription Drug CostsExtra Help Could Further ReduceMedicare Prescription Drug Costs

Extra help is available for low income beneficiaries to pay for part of the Medicare

Part D monthly premiums, annual deductibles and prescription co-payments. The extra help

could be worth more than $3,600 per year.

Go online to www.socialsecurity.gov to apply for extra help.

Extra help is available for low income beneficiaries to pay for part of the Medicare

Part D monthly premiums, annual deductibles and prescription co-payments. The extra help

could be worth more than $3,600 per year.

Go online to www.socialsecurity.gov to apply for extra help.

8888

For More Medicare InformationFor More Medicare Information

1-800-MEDICARE(1-800-633-4227)

TTY 1-877-486-2048

www.medicare.gov

1-800-MEDICARE(1-800-633-4227)

TTY 1-877-486-2048

www.medicare.gov

8989

What Should You Do toPrepare for Your Retirement?

What Should You Do toPrepare for Your Retirement?

Get estimates of benefits using different retirement ages and wage estimates

www.socialsecurity.gov

Get estimates of benefits using different retirement ages and wage estimates

www.socialsecurity.gov

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Social Security’s Online ServicesSocial Security’s Online Services

Retirement & Disability Applications

Apply for Extra Help

Retirement/Survivors/Disability Planner

Request a Statement

Change of Address

Medicare Card Replacements

Request a Benefit Verification Letter

Start or Change Direct Deposit

Retirement & Disability Applications

Apply for Extra Help

Retirement/Survivors/Disability Planner

Request a Statement

Change of Address

Medicare Card Replacements

Request a Benefit Verification Letter

Start or Change Direct Deposit

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The Social Security StatementThe Social Security Statement

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The Statement provides you with estimates of monthly Social Security retirement, disability and survivors benefits

The Statement allows you to check your earnings history for accuracy

The Statement provides you with estimates of monthly Social Security retirement, disability and survivors benefits

The Statement allows you to check your earnings history for accuracy

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Business

Social Security Power Point