Social Security www.socialsecurity.gov

How Do You Qualify for Retirement Benefits? You need to work to earn Social Security “credits” Each $1,260 in earnings gives you one credit You can earn a maximum of 4 credits per year Example: To earn 4 credits in 2016, you must earn at least $5,040. Earning 40 credits (10 years of work) throughout your working life will qualify you for a retirement benefit.

Your Age at the Time You Elect Retirement Benefits Affects the Amount If You’re a Worker and Retire At age 62, you get a lower monthly payment 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

In Addition to the Retiree, Who Else Can Get Benefits? Your Child Not married under 18 (under 19 if still in high school) Not married and disabled before age 22 Your Spouse Age 62 or older At any age, if caring for a child under age 16 or disabled The worker and his or her spouse must be married for one year (continuously) immediately before the day on which the application is filed. (Note: The one-year requirement can be waived if the spouse is the natural mother or father of the worker’s biological child or if the spouse was entitled or potentially entitled to certain auxiliary or survivor’s benefits in the month before the month of marriage to the worker.) If a spouse is caring for a child under age 16 of the worker, the spouse could qualify regardless of age. When the youngest child turns 16, the spouse’s benefit will stop, even though the child’s benefit will continue. However, if the child is disabled, the spouse’s benefits will continue as long as the child is under his or her care.

How Social Security Determines Your Benefit Social Security benefits are based on earnings Step 1 -Your wages are adjusted for changes in wage levels over time Step 2 -Find the monthly average of your 35 highest earnings years Step 3 -Result is “average indexed monthly earnings” This slide provides an overview of the first step that we use in computing a benefit. We are looking for the highest 35 years during a worker's lifetime of earnings, regardless of when earned. This formula also makes clear how a worker who qualifies for a retirement benefit with just 10 years of work would have a low benefit payment. Since we are looking for his or her highest 35 years, in this example, we would be adding in 25 zero years. Needless to say, this worker would be receiving a lower benefit. There is, however, no such thing as a minimum benefit. 25

You Can Work & Still Receive Benefits If You Are You Can Make Up To If You Make More, Some Benefits Will Be Withheld Under Full Retirement Age $15,720/yr. ($1,310/mo.) $1 for every $2 The Year Full Retirement Age is Reached $41,880/yr. ($3,490/mo.) $1 for every $3 Month of Full Retirement Age and Above No Limit Note: If some of your retirement benefits are withheld because of your earnings, your benefits will be increased starting at your full retirement age to take into account those months in which benefits were withheld.

Who Can Get Survivors Benefits? 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: Full benefits at full retirement age Reduced benefits at age 60 If disabled as early as age 50 At any age if caring for child under 16 or disabled Remarriage after age 60 (50 if disabled) Divorced widows/widowers may qualify The length of marriage requirement for a widow or widower is 9 months, and for a surviving divorced wife it is 10 years immediately before the date of divorce. Please note, there are exceptions to the duration of marriage requirements. Generally, you cannot get widow’s or widower’s benefits if you remarry before age 60. But remarriage after age 60 (or age 50 if you are disabled) will not prevent you from getting benefit payments based on your former spouse’s work. And at age 62 or older, you may get benefits based on your new spouse’s work, if those benefits would be higher.

Widow or Widower Benefit Computation At full retirement age, 100% of deceased worker’s unreduced benefit At age 60, 71.5% of deceased worker’s unreduced benefit Reduced benefits on one record at age 60, reduced or unreduced benefit on other record at age 62 or older Full benefits to both widow or widower and divorced widow or widower Regardless of the change in full retirement age, a widow or widower can still receive 71-1/2% of the worker’s benefit at age 60. A widow or widower can receive a survivors benefit at age 60 and then switch to a benefit on his or her own work record at age 62. Or, a widow or widower could receive a reduced survivors benefit at age 60 and then file for an unreduced benefit on his or her own work record at full retirement age. Benefits paid to a surviving divorced spouse who is 60 or older (age 50 if disabled) will not affect the benefit rates for other survivors receiving benefits.

Other Survivors Benefits Parents Age 62 and was receiving at least one-half support from deceased worker Lump Sum Death Payment ($255) Most spouses and some children Although parents’ benefits are included, the number of parent beneficiaries is negligible. Misleading advertising is sometimes used by some insurance companies that imply that the only benefit payable is the LSDP, without regard to the monthly widow or widower’s benefits.

Windfall Elimination Provision If any part of your pension is based on work not covered by Social Security, you may be affected by the Windfall Elimination Provision. 39

Windfall Elimination Provision (WEP) - 2015 Normal Computation WEP Computation 90% of the First $826 40% of the First $826 32% of the Next $4,980 32% of the Next $4,980 15% of the Remainder 15% of the Remainder Prior to the 1983 Amendments when workers spent most of their careers in government jobs where they did not pay Social Security taxes (non-covered employment), they received the equal benefits of the weighted benefit formula. These workers, based on their Social Security earnings record, appeared to be low wage earners; primarily because the majority of their wages were not covered for Social Security purposes. These federal, state, or local employees effectively were receiving a windfall from Social Security. The 1983 Amendments rectified this windfall. Since they had their 40 credits, they will continue to be eligible for a Retirement benefit, but their benefit will be computed differently. The benefit formula is identical to the normal computation with the exception of the first level of the formula. Instead of receiving 90% of the first level, they will receive 40%. If any part of your government pension is based on wages not covered by Social Security, then WEP will apply. WEP only applies to Retirement and Disability Benefits. Survivor’s Benefits are not affected by WEP. If you are a government employee the benefit estimate you see on your Social Security Statement might be in error because the formula used in the estimate does not take into consideration WEP. WEP applies to the workers’ benefits. Any auxiliary benefits payable on the worker's record also would be affected.

Exception to the Windfall Elimination Provision Years of Social Security Coverage % of First Factor in Benefit Formula 30 or more 90 29 85 28 80 27 75 26 70 25 65 24 60 23 55 22 50 21 45 20 or fewer 40 This chart is a simple reflection of the major exception to WEP and its variables. A government worker with 21 to 30 years of significant (substantial) years of Social Security wages will have a different percentage factor used in the first level of their benefit computation. To see how your benefit may be reduced by WEP use our WEP calculator at www.socialsecurity.gov/retire2/wep.htm. Our Online WEP calculator allows you to estimate your Social Security benefit.

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.

Government Pension Offset (GPO) Applies to Spouse’s Benefits Only 2/3 of amount of government pension will be used to reduce the Social Security spouse’s benefits Example: $1,200 of government pension 2/3 = $800 Social Security spouse’s benefits = $750 No benefit payable by Social Security Our Online GPO calculator allows you to estimate your Social Security benefit. www.socialsecurity.gov/calc-gpo The Government Pension Offset (GPO) affects people who earned a pension while working in non-covered government employment. Unless a federal worker switched to the Federal Employees Retirement System (FERS) and worked under FERS for at least 5 years, GPO will affect the amount of the wife’s/husband’s or widow’s(er’s) benefits payable to them. Generally, the concept of spouse’s benefits have the inherent concept of dependency. The notion that a spouse is working in non-covered employment and thereby earning a pension from that employment argues against the notion of dependency. As a result, GPO was passed as part of the 1983 Amendments. The fact sheet, "Government Pension Offset," provides a detailed overview of GPO and all of the exceptions. Understanding WEP and GPO by themselves is not a problem. Many people become confused when they mix the principles of each together. It is possible for a worker to be affected by WEP on their own work record due to their government pension and to have any potential spousal benefit payable to them affected by GPO. To estimate your future benefits under GPO, use our Online GPO calculator at www.socialsecurity.gov/calc-gpo.

Social Security’s Disability Definition: A medical condition or combination of impairments preventing substantial work for at least 12 months, or expected to result in death. The determination also considers age, education & work experience. The actual disability definition makes the clear distinction between Social Security’s disability requirements compared to other disability programs, such as Veterans and Workman’s Compensation. Social Security’s disability definition is based on your medical condition and the fact that you are not expected to be able to do any work for at least 12 months or your condition is terminal. This work determination is based on your age, education and work experience. After becoming eligible for a disability benefit, the law requires us to review the continuing disability (CDRs) generally every 3 to 7 years, depending on the severity of the disability.

Who Can Get Disability Benefits? Worker Must have paid into Social Security five out of last 10 years For younger workers, under age 31 less work is required Under age 31 - Must have paid Social Security taxes for half the time elapsed since turning age 21 Age Social Security Taxes EXAMPLE: 24 1-1/2 years 29 4 years

How Social Security Protects You with Disability & Survivors Insurance Under age 31—Must have paid Social Security taxes for half the time since age 21 Age Social Security Taxes EXAMPLE: 24 1-1/2 years 29 4 years (Note to speaker: This slide is offered to explain how easy it is to become insured. Examples are provided to reflect insured status at two different ages.)

Who Can Get Disability Benefits? Child Not married under age 18 (under 19 if still in high school) Not married and disabled before age 22 Spouse At age 62 At any age if caring for child under 16 or disabled Divorced spouses may qualify (Note to speaker: The children’s category is offered here as in the Retirement and Survivors Benefits Sections.)

Applying Online for Disability Benefits Social Security offers an online application for adults to apply for disability benefits. It’s the most convenient way to apply. www.socialsecurity.gov/applyforbenefits

Who Can Get Medicare ? 65 & older -or- 24 months after entitlement to Social Security disability benefits Amyotrophic Lateral Sclerosis Permanent kidney failure and receive maintenance dialysis or a kidney transplant Exposure to Environmental Health Hazards Remember that although the full retirement age has increased above age 65, Medicare eligibility is still age 65. You should apply for Medicare 3 months before your 65th birthday, even when you plan to apply for your retirement or spouse’s benefits later. You also are eligible for Medicare benefits, 24 months from the month you were entitled to receive Social Security disability benefits, not from the first month you receive a payment. If you have Amyotrophic Lateral Sclerosis (Lou Gehrig’s disease), or permanent kidney failure and you receive maintenance dialysis or a kidney transplant, you become entitled for Medicare beginning with the month you first become entitled to disability benefits.

When Can I Sign Up for Medicare Part B? Medicare Enrollment Periods: Initial – at age 65 Special – if still working General – January-March 62

Medicare Has Four Parts Part A - Hospital Insurance Covers most inpatient hospital expenses 2016 deductible $1,288 Part B - Medical Insurance Covers 80% doctor bills & other outpatient medical expenses after 1st $166 in approved charges 2015 standard monthly premium $104.90 2016 standard monthly premium $121.80 for new applicants There is no monthly premium for Part A if you are insured for retirement benefits. After you retire, your health insurance may require for Medicare to pay first. Many supplemental plans require you to sign up for Medicare Part B. The Medicare premium most beneficiaries pay represents 1/4 of the actual cost. The Federal government covers the balance of the cost.

Medicare Has Four Parts Part C – Medicare Advantage Plans Health plan options offered by Medicare-approved private insurance companies When you join a Medicare advantage plan, you can get the benefits and services covered under Part A, Part B, and in most plans, Part D Part D – Medicare Prescription Drug Coverage Covers a major portion of your prescription drug costs Your out-of-pocket costs—monthly premiums, annual deductible and prescription co-payments—will vary by plan You enroll with a Medicare-approved prescription drug provider not Social Security Each Medicare Advantage plan can charge different out-of-pocket costs, but they must follow rules established by Medicare. Medicare-approved prescription drug plans cover a major portion of your prescription drug costs. NOTE FOR HIGHER-INCOME BENEFICIARIES ONLY: If you have higher income, the law requires an adjustment to your monthly Medicare Part B (medical insurance) and Medicare prescription drug coverage premiums. Higher-income beneficiaries pay higher premiums for Part B and prescription drug coverage. This affects less than 5 percent of people with Medicare, so most people do not pay a higher premium.

2016 Standard Medicare Prescription Drug Coverage Your prescription drug costs Standard coverage First $320 You pay the first $320 called an annual deductible. $321—$2,960 You pay a co-payment or coinsurance equal to about 25% of the costs, and your prescription drug plan pays about 75% of the costs. $2,961—$4,700 This is known as the coverage gap. You pay about 45% for covered brand-name drugs and about 79% for generic drugs. Your plan pays the rest. During the coverage gap, we may not count your entire prescription drug costs—what you pay and what your plan pays—as your prescription drug costs. $4,701 and above You pay a co-payment or coinsurance equal to about 5% of the costs for covered drugs for the rest of the year. Together, your plan and Medicare pay about 95% of the costs. This is known as catastrophic coverage. After you pay the first $325 in prescription drug costs, you only will need to pay a co-payment or coinsurance for your covered prescription drug costs. The amount of your co-payment or coinsurance will vary depending on your plan. When you and your plan have spent a combined $2,970 (including your deductible), you enter the coverage gap. Once you enter the coverage gap, the entire cost—what you pay and what your plan pays—for your brand-name drugs will count as your prescription costs. For generic drugs, however, only the amount you pay will count toward getting you out of the coverage gap. Over time, your prescription drug plan will increase its benefit during the coverage gap. By 2020, you will pay about 25% for covered brand-name and generic drugs until you reach the catastrophic coverage limit. People with Medicare who get Extra Help paying for prescription drug coverage costs won’t enter the coverage gap.  If you get Extra Help, you won’t have some of these costs.

Extra Help Could Further Reduce Medicare Prescription Drug Costs Extra Help is available for beneficiaries with limited resources and income to help pay for the costs—monthly premiums, annual deductibles, and prescription co-payments—related to a Medicare prescription drug plan. The Extra Help is estimated to be worth about $4,000 per year.

How Do I Apply for Extra Help? Complete the Application for Extra Help with Medicare Prescription Drug Plan Costs (Form SSA-1020). Here’s how: Apply online at www.socialsecurity.gov/i1020/start Call Social Security to apply over the phone or request an application at 1-800-772-1213 (TTY 1-800-325-0778) Apply at your local Social Security office Social Security will review your application and send you a letter to let you know if you qualify

For More Medicare Information (1-800-633-4227) TTY 1-877-486-2048 www.medicare.gov

Supplemental Security Income (SSI) Who Can Get SSI? Age 65 or older Blind—any age Disabled—any age Limited income Limited resources Noncitizens must meet special requirements to qualify

The Affordable Care Act President Obama signed Affordable Care Act into law March 23, 2010. Key parts of Affordable Care Act take effect January 1, 2014. Starting October 1, you can get information about all the plans available in your area. If your employer doesn’t offer health insurance, you can buy insurance directly in a new competitive “Marketplace.”

The Affordable Care Act Every plan will offer comprehensive coverage—from doctors to medications to hospital visits. The Marketplace lets you compare health plans in plain language. Visit the Health Insurance Marketplace at www.HealthCare.gov now to get information about how the Affordable Care Act can help you. Beginning in June, you also will be able to call a toll-free number to get information.

www.healthcare.gov

my Social Security Your Online Account ... Your Control ... www.socialsecurity.gov/myaccount my my Social Security is a convenient way to access valuable personalized Social Security information, whether you’ve been working and paying Social Security taxes or now are receiving Social Security benefits. And you can check your online account just about whenever you want at www.socialsecurity.gov/myaccount. my Social Security is an easy-to-access, easy-to-use portal to view and update some of your own Social Security information.  

Who Can Create a my Social Security Account? You must be at least 18 years old and have: A valid E-mail address; A Social Security number; and A U.S. mailing address. Almost anyone can get an online account. You must be at least 18 years of age, have a valid e-mail address, a Social Security number, and a U.S. mailing address (includes military addresses, APO/FPO/DPO AE, AP or AA). Users can only create an account for themselves. They cannot set up an account for another person, even if they have his or her written consent. This also applies to an appointed representative or someone who has business with that person. Users may be unable to create an online account if they: •     Blocked electronic access to their personal information with us; •     Recently moved or changed your name; or •     Placed a freeze on their credit report.

How to create a my Social Security account Getting Started How to create a my Social Security account my Step 1 Visit www.socialsecurity.gov/myaccount and select: my Social Security Step 2 Select “Create An Account.” When you go to www.socialsecurity.gov/myaccount select my Social Security and then “click on” Create An Account.

How to create a my Social Security account Getting Started How to create a my Social Security account Step 3 Provide some personal information to verify your identity. Next, you must provide some personal information about yourself and give us answers to some questions that only you are likely to know. Next, you create a username and password that you will use to access your online account. This process protects you and keeps your personal Social Security information private. Step 4 Choose a username and password to create your account.

Applying for Retirement Benefits You can apply online for Retirement Benefits by visiting www.socialsecurity.gov and clicking “Apply online for retirement benefits”

Applying for Retirement Benefits

What Will You Need When Applying for Your Social Security Benefits? Social Security number for each applicant Proof of age (only if date of birth allegation doesn't match Social Security records) 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 We need to see the appropriate proofs when you file your claim.

Social Security Embraces Social Media Discover us on Facebook, Twitter, YouTube, and Pinterest View popular agency webinar videos at www.socialsecurity.gov/webinars Sign-up to get E-mails and SMS/Texting when we update popular www.socialsecurity.gov web pages At Social Security, we are all about social media, and we offer quick and easy access to all our social media channels right from socialsecurity.gov, with our social media hub. You can find us on Facebook, Twitter, YouTube, and Pinterest. The Hub also provides you quick access to our online webinars and the ability to sign up for email or text messages to learn when we update popular web pages on our site.

Go Mobile with Social Security On May 3, we launched a mobile version of our website for smartphone users. Learn about our most popular programs, services, publications, frequently asked questions, social media, and more. All you need to know is www.socialsecurity.gov. on your smartphone. In addition to what is bulleted, other useful information: Smartphone users who visit any page on www.socialsecurity.gov will automatically be redirected to the mobile homepage. Every mobile page’s footer provides a link to the full site.