- A -
AIME
This is
a dollar
amount
is used
to
calculate
your
Social
Security
benefit
if you
have
reached
the age
62 or
have
become
disabled
after
the year
1978.
AME
The
dollar
amount
used in
calculating
your
monthly
Social
Security
benefit
if you
attained
age 62
or
became
disabled
(or
died)
before
1978.
Actuaries
Professionals
who
analyze
the
financial
consequences
of risk.
Social
Security
actuaries
make
projections
about
population,
immigration,
life
expectancy,
economic
growth,
inflation
and
productivity
growth.
Administrative
Costs
The
Social
Security
Administration
is known
for
having
administrative
costs of
well
under
one
percent
of total
assets.
Administrative
costs
are the
costs
associated
with
running
the
program.
Annual
Cost of
Living
Increase
Benefits
increased
based on
the cost
of
living
and
inflation.
Appeal
You
always
have the
right to
appeal
(try to
change)
the
decision
of the
Social
Security
department
when a
decision
is made
that
affects
your
benefits.
- B -
Base
Years
A wage
earner’s
base
years
for
computing
Social
Security
benefits
are the
years
after
1950 up
to the
year of
entitlement.
For a
survivor's
claim,
the base
years
include
the year
of the
worker's
death.
Benefits
Retirement,
Disability,
Dependents,
Survivors
and
Medicare
are the
five (5)
categories
within
the
Social
Security
system
that you
may
receive
benefits
under.
Beneficiary
Anyone
who
receives
Social
Security
benefits.
- C -
Child
May
include
biological
children
or any
other
child
who can
inherit
your
personal
property
under
State
law or
who
meets
certain
specific
requirements
under
the
Social
Security
Act.
COLA
Cost of
Living
Adjustment.
Social
Security
benefits
and
Supplemental
Security
Income
payments
are
increased
each
year to
keep up
with
inflation.
Computation
Years
Computation
years
are the
years
with
highest
earnings
selected
from the
"base
years."
CPI
Consumer
Price
Index.
An index
prepared
by the
U. S.
Department
of Labor
that
charts
the rise
in costs
for
selected
goods
and
services.
This
index is
used to
compute
COLA
increases.
Carve
Out
Redirected
payroll
taxes
that
were
going
into the
Social
Security
system
and are
now
going
into
private
retirement
accounts.
The
money is
“carved
out” of
the
Social
Security
system
and not
available
to pay
benefits
for
current
retirees.
- D -
Delayed
Retirement
Credits
Social
Security
benefits
are
increased
(by a
certain
percentage
depending
on a
person's
date of
birth)
if
retirement
is
delayed
beyond
full
retirement
age.
Increases
based on
delaying
retirement
no
longer
apply
when
people
reach
age 70,
even if
they
continue
to delay
taking
benefits.
Direct
Deposit
The
standard
way to
receive
Social
Security
benefits.
Disability
Benefits
These
benefits
are
received
if you:
are
under
FRA
(full
retirement
age),
have
enough
Social
Security
credits,
and have
a severe
medical
impairment
that
prevents
you from
doing
substantial
work for
more
than a
year, or
are
expected
to die
from the
impairment.
Disability
Insurance
One of
three
components
in the
Social
Security
program.
You
become
eligible
for
disability
benefits
when you
cannot
do the
work you
did
before
becoming
disabled
and the
work you
did,
cannot
be
adjusted
to
accommodate
your
disability.
The
number
of work
credits
you need
to
qualify
for
benefits
depends
on your
age at
the time
you
become
disabled.
Documents
Forms
often
requested
and
submitted
by
individuals
who are
applying
for
benefits.
Documents
usually
include:
birth
certificates,
marriage
certificates,
W2
forms,
tax
returns,
and
deeds.
Normally
only
originals
or
certified
copies
are
accepted.
- E -
Early
Retirement
You can
start
getting
Social
Security
retirement
benefits
as early
as age
62, but
your
benefit
amount
will be
less
than you
would
have
gotten
at full
retirement
age. If
you take
retirement
benefits
early,
your
benefit
will be
permanently
reduced,
based on
the
number
of
months
you
received
checks
before
you
reached
full
retirement
age.
Early
Retirement
Age
Age 62.
Earnings
Record
A
chronological
history
of the
amount
you earn
each
year
during
your
working
lifetime.
The
credits
you
earned
remain
on your
Social
Security
record
even
when you
change
jobs or
have no
earnings.
- F -
Family
Benefits
The
following
people
may be
eligible
to
receive
benefits
on your
record:
Spouse
if aged
62 or
older
(unless
caring
for an
entitled
child
under
the age
of 16);
children,
if
unmarried
and
under
the age
of 18
(or
under 19
and
still in
school);
disabled
children
over the
age of
18; and
an
ex-spouse
in some
circumstances.
Family
Maximum
The
maximum
amount
of
benefits
payable
to an
entire
family
on any
one
worker's
record.
Federal
Insurance
Contributions
Act
(FICA)
The
formal
name of
the
funding
mechanism
for
Social
Security
benefits.
It is a
payroll
tax that
is
deducted
from the
worker’s
paycheck
and
matched
by the
employer.
Full
Retirement
Age
The age
at which
a person
may
first
become
entitled
to
unreduced
retirement
benefits.
Beginning
with
year
2000 for
workers
and
spouses
born
1938 or
later
and
widows/widowers
born
1940 or
later,
the
retirement
age
increases
gradually
from age
65 until
it
reaches
age 67
in the
year
2022.
This
increase
affects
the
amount
of the
reduction
for
persons
who
begin
receiving
reduced
benefits.
- I -
Inflation-Protected
Benefit
A
benefit
whose
real
value
does not
decline
as the
cost of
living
rises.
Social
Security
benefits
are
adjusted
automatically
every
year to
keep
pace
with the
cost of
living.
- L -
Lawful
Alien
Status
People
admitted
to the
U.S. who
are
granted
permanent
authorization
to work
by the
Immigration
and
Nationalization
Service
(INS) or
admitted
to the
U.S. on
a
temporary
basis
with INS
authorization
to work.
Life
Expectancy
1. Life
expectancy
at birth
is a
statistical
measurement
that
projects
how a
society
will
change
over
time. It
is the
statistically
determined
number
of
years,
at
birth,
that a
person
is
expected
to live.
Currently,
life
expectancy
for men
in the
US is
74.8
years
and for
women it
is 80.1
years.
2. Life
expectancy
at 65
measures
the
number
of years
a person
is
expected
to live
once
they
reach
the age
of 65.
It is
different
from
life
expectancy
at
birth,
because
by that
age many
life-threatening
challenges
have
passed.
At
present,
men who
reach
the age
of 65 in
this
country
can
expect
to live
until
the age
of 81.6
years of
age, and
women to
the age
of 84.5.
Lump Sum
Death
Payment
A
one-time
payment
of $255
paid in
addition
to any
monthly
survivors
insurance
benefits
that are
due.
This
benefit
is paid
to your
widow/widower
or minor
children.
- M -
Maximum
Earnings
The
maximum
earnings
counted
for any
calendar
year
when
computing
your
Social
Security
benefit.
- O -
OASDI
Old Age,
Survivors
and
Disability
Insurance.
It is
the
formal
name of
the
Social
Security
System.
- R -
Representative
Payee
If you
receive
Social
Security
benefits
or
Supplemental
Security
Income
and
become
unable
to
handle
your own
financial
affairs,
a
relative,
friend,
or an
interested
party is
appointed
to
handle
your
Social
Security
matters.
Retirement
Age -
Full
Benefits
Full
retirement
age was
65 for
many
years.
However,
beginning
with the
year
2000
(for
workers
and
spouses
born
1938 or
later,
or widow
and
widowers
born
1940 or
later),
the
retirement
age
increases
gradually
from age
65 until
it
reaches
age 67
in the
year
2022.
Retirement
Age -
Minimum
The
minimum
age for
retirement-age
62 for
workers,
and age
60 for
widows
or
widowers.
You can
choose a
reduced
benefit
anytime
before
you
reach
full
retirement
age.
Retroactive
Benefits
(Back
Pay)
Monthly
benefits
that you
may be
entitled
to
before
the
month
you
actually
file an
application,
if you
meet the
entitlement
requirements.
Replacement
Rate
The
amount
of
pre-retirement
earnings
that
Social
Security
benefits
replace.
A way to
gauge
the
adequacy
of
retirement
income.
- S -
Social
Security
While
you
work,
you pay
taxes
into the
Social
Security
system,
and when
you
retire
or
become
disabled
you,
your
spouse
and your
dependent
children
receive
monthly
benefits
that are
based on
your
reported
earnings.
The
system
also
allows
your
survivors
to
collect
benefits
if you
die.
Solvency
The
ability
to pay
off
one’s
legal
debt.
The
Social
Security
system
is
solvent
when it
can pay
100
percent
of
scheduled
benefits.
Social
Security
uses
payroll
tax
revenues
to cover
payments;
if these
fell
short,
it would
draw on
the
accumulated
surpluses
in the
Social
Security
Trust
Fund.
Spouse
The
person
whom you
were
legally
married
to at
the time
you
applied
for
benefits.
Supplemental
Security
Income (SSI)
A
Federal
supplemental
income
program
which
helps
the
aging,
blind,
and
disabled,
who have
little
or no
income.
Survivor
Benefits
If you
die,
benefits
will be
paid to:
your
spouse
age 60
or older
(50 or
older if
a
disability
rather
than
death
occurs)
or at
any age
if the
spouse
is
caring
for a
child
under
the age
of 16;
children
age 18
or
younger
(19 or
younger
if still
in
school);
and your
parents,
if you
provide
at least
half of
their
financial
support.
- T -
Treasury
Bonds
Funds in
the
Social
Security
trust
fund
that are
not used
for
paying
current
benefits
and
expenses
are
required
by law
to be
invested
in U.S.
Treasury
securities.
These
securities
pay
market-based
interest
to the
trust
funds.
Trust
Funds
Accounts
run by
the
Treasury
Department
that
take in
payments
to the
Social
Security
system,
pay
benefits
and
administer
the
program.
Trustees
The
board of
four
government
officials
and two
citizen
representatives
that
manages
the
Social
Security
Trust
Funds.
- W -
Wage Cap
The
maximum
amount
of a
worker’s
earnings
that are
subject
to the
Social
Security
payroll
tax. The
amount
taxed
increases
annually
with
wages.
Wage
Earner
A person
who
earns
Social
Security
credits
while
working
for
wages or
self-employment
income.
Wages
All
payment
for
services
performed
for an
employer.
The cash
value of
all
compensation
paid to
an
employee
in any
form
other
than
cash is
also
considered
wages
(unless
the form
of
payment
is
specifically
not
covered
under
the
Social
Security
Act).
Widow/Widower
If you
and the
person
who died
were
legally
married
at the
time of
death,
then you
are
considered
that
person’s
widow/widower.
