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Social Security

Social Security. Social Security. Retirement benefit Spouse's benefit Your pension and Social Security Work in retirement Cost-of-living adjustments Taxation of benefits Disability benefit Survivor benefit Medicare Applying for benefits. Social Security tax (FICA).

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Social Security

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  1. Social Security

  2. Social Security • Retirement benefit • Spouse's benefit • Your pension and Social Security • Work in retirement • Cost-of-living adjustments • Taxation of benefits • Disability benefit • Survivor benefit • Medicare • Applying for benefits

  3. Social Security tax (FICA) 2006 employee contributions if in “Covered Employment” • OASD1 rate: 6.20% on maximum of $94,200 • Medicare rate: 1.45% on all wages

  4. Retirement benefit • Eligibility based on number of credits (quarters of coverage) • Benefit based on primary insurance amount (PIA)

  5. When benefits can start • Early benefits at age 62 with permanent reduction • Full benefits at normal retirement age (age 65 if born before 1938) • Benefits increased if delayed beyond normal retirement age

  6. Spouse's benefit • At spouse’s normal retirement age, spouse's benefit is 50% of worker’s PIA • If spouse is age 62, spouse's benefit is reduced

  7. Your pension and Social Security • If you qualify for your own Social Security benefit, its amount will be reduced because of your Fire and Police Pension • Your Social Security benefit as a spouse will also be reduced because of your Fire and Police Pension

  8. Work in retirement • Annual earnings limit if you work and receive Social Security benefits • $1 reduction for every $2 earned over $12,480 if under SSNRA in 2006 • $1 reduction for every $2 earned over $33,240 if attain SSNRA in 2006

  9. Social Security benefits • Inflation • Indexed to CPI • Income taxes • Up to 85% of benefits may be subject to federal income taxes

  10. Social Security disability benefit • You must be fully insured and currently insured • You must be unable to perform any gainful work • Your disability must be expected to last at least twelve months • The benefit is payable at any age without reduction

  11. Social Security survivor benefit Surviving spouse can receive benefit if: • Age 60, or • Disabled and over 50, or • Any age if caring for eligible dependent child

  12. Social Security survivor benefit Amount of surviving spouse benefit: • 100% of PIA if surviving spouse is at normal retirement age • Reduced at earlier ages • 75% if caring for eligible dependent child

  13. Medicare • Coverage begins at age 65 • Part A – hospital insurance • Part B – medical insurance, including doctor's services • Part C – Medicare Advantage • Part D – prescription drugs • Long-term care insurance

  14. Applying for benefits • Three months before you want checks to begin • Three months before age 65 for Medicare • Social Security number • Proof of age • Last two to three years' w-2 • Your personal earnings and benefit estimate statement

  15. Click Link below to continue... LAFP3 TAXES2006 2006 0818.ppt

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