Social Security Retirement John S. Whitelaw Community Legal Services 1410 West Erie Avenue Philadelphia, PA July 2014 This presentation was sponsored by Philadelphia Corporation for Aging. Learn more at PCA at

SOURCES of LAW Statute – Title II of the Social Security Act (42 U.S.C § 401 et seq.) – Title XVI of the Social Security Act – (42 U.S.C. § 1381 et seq.) Regulations – 20 C.F.R. § 401 et seq. – 20 C.F.R. § 416 et seq. Program Operations Manual System (POMS) 2

Internet Resources or

National Statistics (April 2014 snapshot) Social Security Benefits – 58,472,000 Retired Workers – 38,349,000 Disabled Workers – 8,942,000 4

Benefit Amounts – April 2014 All Beneficiaries$1,186 Retired Workers$1,298 Disabled Workers$1,145 5

Taxes and Benefits Maximum Earnings Taxed – 2014$117,000 – (Up from$113,700 in 2013) Maximum Taxes Paid (excluding Medicare, not self-employment) – 2014$7,254 Maximum Retirement Benefit at Full Retirement Age (FRA) – 2014$2,642 6

National Statistics Supplemental Security Income (SSI) – 8,414,000 (5,596,000; 2,818,000) SSI Age – 2,224,000 SSI Disability/Blindness – 6,291,000 7

Pennsylvania Numbers (December 2012) Retired Workers2,267,863 Disabled Workers457, or older2,429,329 8

Pennsylvania Numbers SSI (December 2012) – 376,600 – 63,189 (over 65) – 313, 411 (under 65) (including 76,179 under 18) 9

Attorney’s Fees Average Disability claim$3,000 Total nationally$ MILL/Mth Retirement Work – Probably not unless significant part of caseload – Requirement to file electronically if request direct payment of fee 10

Applying for Benefits In person Online Via the Toll Free Telephone Number –

Applying for Benefits Online YESNO Social Security SSI DisabilityDependents RetirementSurvivors SpouseWidow(er)s Medicare OnlyRRB 12

SSA Online “Boldly Go” 13

What are Social Security Benefits? Title II of the Social Security Act Insurance Program for those workers who have paid enough in Social Security taxes to be covered – Retirement – Survivors/Dependents – Disability 14

Insured Status General rule is 40 covered quarters (and 10 out of last 20 for disability) Can be as little as 6 quarters! 2014$1,200 15

Disability Same definition for Title II and Title XVI (SSI) “Unable to engage in substantial gainful activity because of a medically determinable impairment which is expected to last twelve months or result in death” Physical Mental Combination 16

Retirement Early Retirement Benefits – Age 62 – No Medicare until 65 Full Retirement Age (FRA) – Traditionally 65 – Moving towards 67 17

Full Retirement Age 1943 – years 1960 and later67 years Note: Medicare eligibility still begins at 65 years of age 18

19 Early Retirement Can take as early as 62 Reduction in benefits Earnings Limitations What about Medicare?

20 How Much Will I Lose? Traditional – 20% of “full” benefit amount (PIA) More than 36 months early – 20% plus 5/12 of 1% per month in excess of 36 months Technical – 5/12 of 1% per month

21 Can I Retire and Still Work? Yes, with limitations What are the rules? – Up to $15,480 no effect – Over $15,480, benefits reduced $1 for every $2 earned – If you will reach full retirement age in 2014, the limit on your earnings for the months before full retirement age is $41,400 No limits after Full Retirement Age

Lump Sum Death Benefit $255 Is this really worth talking about? 22

What is Supplemental Security Income (SSI)? Federal needs-based program for those: who have insufficient work history to qualify for Social Security disability insurance payments or who only receive a small amount of Social Security benefits, and who are elderly or disabled 23

SSI Disability / Age – 65 Financial Need – Income – Assets/Resource Other – Citizenship Issues – Criminal Justice Issues 24

SSI Amounts 2014 Single $721 Couple$1,082 Plus State Supplement SSP $22.10/ $

SSI -- Income 20 C.F.R. § et seq. POMS SI et seq. EARNED UNEARNED 26

Assets or Resources 20 C.F.R. § et seq. POMS SI et seq. Stuff that you have 27

What is the value of a resource? Equity 28

Transfer of Asset Penalty Given away for less than fair market value 36 month look back period Divide amount of giveaway by full benefit rate 29

Benefits for Non United States Citizens Title II POMS GN et seq. Title XVI POMS SI et seq. 30

DEADLINES Appeals – 60 days (plus 5 for mailing) – 10 days (plus 5 for mailing) Proposed Actions (Title II) – 30 days 31

Good Cause for Missing Deadlines Why is this slide blank? 32

Procedural Steps Initial Decision Reconsideration Hearing Before Administrative Law Judge (ALJ) Appeals Council Federal Court 33

Reconsideration File Review Informal Conference Formal Conference 34

35 Overpayments What is an overpayment?

36 Overpayments & Waivers File at any time Form SSA-632 Separate from merits of overpayment Stops recoupment IF REQUESTED Full appeal rights

Waiver Requirements Without FaultAND Recovery would defeat the purpose of the Social Security Act (generally seen as a financial hardship test – Presumed if receive SSI or other cash Public Assistance) or Recovery would be against equity and good conscience 37

Waiver 20 C.F.R.§ et seq. § et seq. POMS SI et seq. GN et seq. CAN BE FILED AT ANY TIME 38

39 Waivers Administrative waiver for overpayments less than $1,000 must be requested (it’s a secret) Do not need to complete Waiver form POMS SI (B)(2)

40 Waivers Limits on withholding – SSI: 10% of full check ($71.00) Negotiate a lower amount if client can’t afford 10% – LIS-eligibles: $10 – POMS GN (B)(6)(exception) – Title II: no limit Negotiate a lower amount

Common Forms Appointment of Representative (SSA 1696) Request for Reconsideration(HA 561) Request for Hearing (HA 501) Request for Waiver of Overpayment (SSA 632) Tip: To find Forms, “Google” SSA and [form number] 41

SSA Understaffing December ,957 September ,543 June ,877 March ,777 December ,538 September ,113 September ,136 December ,270 December ,486 September ,632 42