Social Security Retirement

John S. WhitelawCommunity Legal Services1410 West Erie AvenuePhiladelphia, PA 19140

July 2014

This presentation was sponsored by Philadelphia Corporation for Aging. Learn more at PCA at www.pcacares.org

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)

https://secure.ssa.gov/apps10/poms.nsf/home!readform

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Internet Resources• www.ssa.gov or www.socialsecurity.gov

• www.medicare.gov

• www.nsclc.org

• http://socsecnews.blogspot.com/

• www.ssa.connect.com

• www.severe.net

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National Statistics(April 2014 snapshot)

• Social Security Benefits– 58,472,000

• Retired Workers– 38,349,000

• Disabled Workers – 8,942,000

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Benefit Amounts – April 2014• All Beneficiaries $1,186

• Retired Workers $1,298

• Disabled Workers $1,145

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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

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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

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Pennsylvania Numbers(December 2012)

• Retired Workers 2,267,863

• Disabled Workers 457,258

• 65 or older 2,429,329

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Pennsylvania Numbers

• SSI (December 2012)

– 376,600

– 63,189 (over 65)

– 313, 411 (under 65) (including 76,179 under 18)

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Attorney’s Fees

• Average Disability claim $3,000• Total nationally $92-104 MILL/Mth

• Retirement Work– Probably not unless significant part of caseload– Requirement to file electronically if request direct

payment of fee

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Applying for Benefits

• In person

• Online

• Via the Toll Free Telephone Number– 1-800-772-1213

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Applying for Benefits Online

YES NOSocial Security SSIDisability DependentsRetirement SurvivorsSpouse Widow(er)sMedicare Only RRB

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SSA Online “Boldly Go”

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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

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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

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DisabilitySame 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”

PhysicalMental

Combination

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Retirement

• Early Retirement Benefits– Age 62– No Medicare until 65

• Full Retirement Age (FRA)– Traditionally 65– Moving towards 67

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Full Retirement Age

• 1943 – 1954 66 years

• 1960 and later 67 years

Note: Medicare eligibility still beginsat 65 years of age

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Early Retirement• Can take as early as 62

• Reduction in benefits

• Earnings Limitations

• What about Medicare?

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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

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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?

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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 orwho only receive a small amount of Social Security benefits,and who are elderly or disabled

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SSI• Disability / Age

– 65

• Financial Need– Income– Assets/Resource

• Other– Citizenship Issues– Criminal Justice Issues

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SSI Amounts 2014

• Single $721

• Couple $1,082

Plus State SupplementSSP $22.10/ $33.30

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SSI -- Income

20 C.F.R. § 416.1100 et seq.POMS SI 00810.000 et seq.

• EARNED

• UNEARNED

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Assets or Resources

20 C.F.R. § 416.1200 et seq.POMS SI 01100.000 et seq.

Stuff that you have

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What is the value of a resource?

• Equity

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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

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Benefits for Non United States Citizens

• Title IIPOMS GN 303.000 et seq.

• Title XVIPOMS SI 0502.000 et seq.

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DEADLINES• Appeals

– 60 days (plus 5 for mailing)

– 10 days (plus 5 for mailing)

• Proposed Actions (Title II)

– 30 days

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Good Cause for Missing Deadlines

Why is this slide blank?

Procedural Steps

• Initial Decision• Reconsideration• Hearing Before Administrative Law Judge (ALJ)• Appeals Council• Federal Court

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Reconsideration

• File Review

• Informal Conference

• Formal Conference

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Overpayments

What is an overpayment?

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Overpayments & Waivers

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

Waiver Requirements

• Without Fault AND

• 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

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Waiver

20 C.F.R. § 404.506 et seq.§ 416.550 et seq.

POMS SI 02260.000 et seq.GN 02210.000 et seq.

CAN BE FILED AT ANY TIME

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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 2260.030(B)(2)

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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 2210.030(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]

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SSA Understaffing

• December 2013 61,957 • September 2013 62,543• June 2013 62,877 • March 2013 63,777• December 2012 64,538 • September 2012 65,113• September 2011 67,136• December 2010 70,270• December 2009 67,486• September 2009 67,632

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