SOCIAL
SECURITY
Summary:
- Eligibility for benefits is based on age, disability,
blindness, or being a wage earner's survivor (child, widow[er])
and
- the number of "quarters of covered employment" in
the wage earner's earnings record in employment covered by
Social Security.
- Amount of benefits is based on the earnings record and
complex calculations performed by Social Security.
General
Information -
42 USCA 401, et seq., and 20 CFR 404, et seq.
No
set minimum benefits for Social Security.
However, worker must:
1.
satisfy insurance requirements;
2.
reached retirement age;
3.
have applied for benefits
Eligibility
- 42 USC 402
1.
In general, only individuals who have contributed to Social
Security are eligible to receive benefits. The availability of benefits
depends on the amount of quarters of coverage the worker has accumulated .
42 USC 413.
2.
The Social Security Administration designates age 65 as full
retirement age. Full retirement age is the age at
which a beneficiary is entitled to receive the full annual benefits to
which he is entitled under Social Security.
42 USC 402(a)(2); 402(a)(q); 416(l)
If
one family member receives retirement benefits the following specified
family
members may also be eligible to receive benefits:
-
A spouse age 62 or older
-
A spouse under age 62, if she or he is caring for a child who is either
under 16 or disabled
-
A former spouse 62 or older, if the marriage lasted at least ten years and
the former spouse is single
and not already drawing benefits
-
Children up to age 18
-
Children between age 18 and 19, if full-time students
-
Children over age 18, if disabled
3. An application is required. 20 CFR 404.610; 611; 612
4.
The Claimant must also have the requisite number
of credits to qualify for benefits. Each three month period (or
quarter) of continuous employment equals one credit. Payments are based on
the worker’s average lifetime earnings, not total earnings.
There are three categories that an
applicant must fall into based on the number of earned credits:
- Category One: Fully Insured:
- The applicant has 40 credits
-
One quarter of coverage per each calendar year since 1950, or since
turning 21 if the applicant turned 21 after 1950; or
- Be a survivor of a worker who accrued six
credits, and died before 1951
- Category Two: Currently Insured (survivor’s benefits)
-
6 credits during the past thirteen quarters by the deceased party whose
dependent survivor seeks benefits
- Category Three: Insured for Disability Benefits
- But for a disability, one who would have
been fully insured at age 62; or
-
20 credits accrued within the past forty quarters prior to the onset of
disability
Procedural
Requirements to Apply for Benefits – 20
CFR 404.610
When
you apply for Social Security you will need
the following information: 20
CFR 404.612
-
Your Social Security number
-
Birth certificate
-
W-2 forms, or self-employment tax returns
-
Checking or savings account information, if direct deposit is requested
-
Military discharge papers, if applicable
-
Spouse’s birth certificate and Social Security number, if he or she is
also applying for benefits
-
Children’s birth certificates and Social Security numbers, if children's
benefits are sought
You
will also be required to provide proof of age.
Because of the difficulty in locating this information due to many
of the elderly being born outside of the United States, a Social Security
claims representative should be contacted and can provide assistance.
Overpayment
of Benefits -
20 CFR 404.501
Social
Security is authorized to recover any benefits paid in excess of the
individual’s entitlement. Unless
the overpaid beneficiary is deemed to be without fault, benefits will
cease until the overpaid amount is recovered by Social Security. A beneficiary is at fault if the overpayment is the result of
a deliberate falsehood or by the deliberate withholding of material
information by the beneficiary or if he consciously accepts what he knows
to be an overpayment.
Even
if the beneficiary is without fault in receiving the overpayment, if he
can repay the overpayment out of savings he must do so.
Waiver:
if the without fault beneficiary can demonstrate that he cannot
repay the overpaid amount, the obligation to repay may be waived.
Repayment obligations may also be waived in bankruptcy.
Once Social Security determines that there has been an overpayment,
they must inform the beneficiary in writing of both the determination and
the right to petition for waiver. Requests
for waiver are usually denied. A
claimant may seek a hearing before an Administrative Law Judge (ALJ) if a
request for waiver is denied.
If
the beneficiary is able to make repayment in a
lump sum, then a lump sum payment is required.
If the beneficiary can prove that a lump sum payment will cause
hardship, then repayment may be made over 36 monthly installments with no
interest assessment.
Substantial
Employment:
A wage earner who devotes more than 45 hours per month to a business is
engaging in substantial employment. The
Social Security Administration uses the substantial services test to
determine whether a beneficiary has engaged in substantial employment
while receiving Social Security. The
seven factors utilized are:
-
Amount of time devoted to a business
-
Nature of the business
-
A comparison of the extent and nature of activities an individual devotes
to a business before
and after claimed retirement
-
The presence of an adequately compensated manager or partner for concerns
still ongoing at
the time of claimed retirement
-
The amount of capital invested in a business
-
A physical description of the business involved
-
Whether the business is seasonal in nature
Underpayment:
20 CFR 404.501; 20 CFR 404.503
|
