Mainstream media implies limits on SS Survivor benefit that do not exist

[papau]

I noticed the weekend that our mainstream media is running NO DATA ON DISABILITY BENEFITS UNDER SOC SEC, and incorrect data on the survivor benefits (suggesting there are limits as to amount or right to get such benefits that may be in a GOP memo , but which do not exist in the law). http://abcnews.go.com/Business/YourMoney/story?id=412634&page=1 Social Security, Fact vs. FictionDoes the President's Rhetoric on Social Security Match Reality? "Owning your own personal savings account & allows you to pass on your savings to whoever you choose. You can't do that in Social Security today. If you pass away earlier than expected, that money that you put in the system is gone." ..... The "20,000" refers to the maximum earned income rules - which do not apply to children survivors - only to spouse - and which increase every year - and which only apply until spouse age "65" -meaning your year of birth based retirement age.



The president is right that private accounts come with fewer limitations than a Social Security account. But Social Security benefits can be passed on in certain circumstances. Currently, if you die and your spouse makes less than $20,000 and is over 60 years old, she/he is entitled to survivor benefits. Children under 18 are also entitled to survivor benefits.

The survivor rules are below:

Please Note: To avoid a burden on the rich, Earned income is defined as ONLY income from wages or net earnings from self-employment. Pensions, 401K distributions, dividends, interest, and IRA distributions are NOT earned income.

Question
What are the requirements for a survivor to receive Social Security benefits?

Answer
When a worker dies, certain family members may be eligible for survivors benefits based on his/her record if the worker had enough Social Security earnings credits. For many survivor cases, the number of required earnings credits is based on on the worker's age at the time of death. In general, younger workers need fewer earnings credits than older workers. However, no worker needs more than 40 earnings credits (10 years of work) to be fully insured for any Social Security benefit.

Social Security survivors benefits can be paid to:

A widow/widower-full benefits at full retirement age, or reduced benefits as early as age 60. A disabled widow/widower may receive benefits as early as age 50.
A widow/widower at any age if he or she takes care of the deceased's child under age 16 or disabled, who receives Social Security benefits.
Unmarried children under 18, or up to age 19 if they are attending elementary or secondary school full time. A child can receive benefits at any age if he or she was disabled before age 22 and remains disabled. Under certain circumstances, benefits can also be paid to stepchildren, grandchildren, or adopted children.
Dependent parents at 62 or older.
You may be interested to know that a former spouse can receive benefits under the same circumstances as a widow/widower if the marriage lasted 10 years or more. Benefits paid to a surviving divorced spouse who is 60 or older will not affect the benefit rates for other survivors receiving benefits.

Please note that in general, a widow/widower cannot receive benefits if they remarry before the age of 60 (50 if disabled) unless the latter marriage ends, whether by death, divorce, or annulment. However, remarriage after age 60 (50 if disabled) will not prevent payments on a former spouse's record.

The amount of the survivors benefit is based on the earnings of the person who died. The more he or she paid into Social Security, the higher the benefits will be. The amount a survivor receives is a percentage of the deceased's basic Social Security benefit. The following provides the most typical situations:

Widow or widower full retirement age or older-100 percent.
Widow or widower age 60 to 64-about 71 - 94 percent.
Widow or widower at any age with a child under age 16 - 75 percent.
Children - 75 percent.
If a person is receiving widow/widower's benefits, they can switch to their own retirement benefits (assuming they are eligible and their retirement rate is higher than the widow/widower's rate) as early as age 62. In many cases, a widow/widower can begin receiving one benefit at a reduced rate and then switch to the other benefit at an unreduced rate at full retirement age. However, they will not be paid both benefits - they will be paid the higher of the two benefits.


Question
How much will a widow receive?

Answer
The amount you will get is a percentage of the deceased's basic Social Security benefit. The percentage depends on your age and the type of benefit you are eligible for. A widow or widower, full retirement age or older, will receive 100 percent deceased's basic Social Security benefit.

Full-retirement age has been 65 for many years. However, beginning with people born in 1938 or later, that age will gradually increase until it reaches 67 for people born after 1959. The following chart shows the steps in which the age will increase.

Year of Birth .. Full Retirement Age…Age 60Reduction Months …monthly % Reduction*
.
1939 or earlier………………… 65 …… 60……. .475
1940 ……………. 65 and 2 months….... 62………… .460
1941……………. 65 and 4 months….... 64 ……… .445
1942 …………….. 65 and 6 months ….. 66 ……….. .432
1943 ……………. 65 and 8 months ….. 68 ………… .419
1944 ……………… 65 and 10 months… 70 ……….. .407
1945--1956 ………. 66 ………………... 72………… .396
1957……………….. 66 and 2 months…. 74 ……….. .385
1958 ……………… 66 and 4 months ….. 76 ……… .375
1959 ………………. 66 and 6 months …. 78 ………. .365
1960 ………………..66 and 8 months …. 80 ………. .356
1961…………………66 and 10 months .. 82 ……… .348
1962 and later ……… 67………………… 84 ………. .339

* Monthly reduction percentages are approximate due to rounding. The total % reduction for anyone who receives benefits at age 60 is always 28.50. Note: Persons born on January 1 of any year should refer to the full retirement age for the previous year.

Question
How much is a working widow allowed to earn without losing any Social Security widow's benefits?

Answer
The law that determines what happens when you work and get benefits at the same time was changed, effective January 2000. This change in law applies to widow(er)s as well as retired workers. While you're working, your benefit amount will be reduced only until you reach your full retirement age. Full retirement age for earnings test purposes is currently age 65 and 4 months for persons born 1/2/39 through 1/1/40. We will use this formula to determine how much your benefit must be reduced:

If you are under full retirement age when you start getting your Social Security payments, $1 in benefits will be deducted for each $2 you earn above the annual limit. For 2005 that limit is $12,000; for 2004, it is $11,640. In the year you reach your full retirement age $1 in benefits will be deducted for each $3 you earn above a different limit. In that year, we only count earnings before the month you reach your full benefit retirement age. For 2005, this other limit is $31,800 for 2004, it is $31,080. Starting with the month you reach full retirement age you will get your benefits with NO limit on your earnings. For information on the earnings limits for prior years, see http://www.socialsecurity.gov/OACT/COLA/RTEA.html


Question
If I receive widow's benefits and remarry, how does this affect my benefits?

Answer
In general, you cannot receive survivors benefits if you remarry before the age of 60 unless the latter marriage ends, whether by death, divorce, or annulment. If you remarry after age 60 (50 if disabled), you can still collect benefits on your former spouse's record. When you reach age 62 or older, you may get retirement benefits on the record of your new spouse if they are higher.

Your remarriage would have no effect on the benefits being paid to your children.


Question
My brother had an accident at work last year and is now receiving Social Security disability benefits for himself, his wife, and daughter. Before his accident, he helped support another daughter by a woman to whom he has never been married. Is the second child entitled to some benefits as well?

Answer
Even though your brother wasn't married to the second child's mother, the child can qualify for Social Security benefits if he or she meets the requirements of the Social Security law. An application should be filed on the child's behalf so that we can determine if the child can qualify for benefits. Each child is entitled to equal benefits.

How do I receive the Lump Sum Death Payment after a relative dies?

Answer
A lump-sum death benefit of $255 may be paid upon the death of a person who has worked long enough to be insured under the Social Security program. The lump-sum death benefit can be paid upon the death of the insured person even if they were not receiving retirement or disability benefits at the time of death. This payment is limited to a spouse who was living with the worker at the time of death, to a spouse who, in the month of death, is eligible for certain Social Security benefits based on the workers record, or a child who, in the month of death, is eligible for a Social Security benefit based on the worker's record. If no spouse or child meeting these requirements exists, then the lump sum death payment will not be paid.The lump sum death payment can no longer be paid to funeral homes for funeral expenses. To file for the benefit, call 1-800-772-1213 and request an appointment for your local office. To report a death of a beneficiary to Social Security, see the instructions at http://www.socialsecurity.gov/pubs/deathbenefits.htm



Question
I would like to know if a parent will be eligible to receive as a survivor on the record of a deceased working child?

Answer
A parent of a deceased insured person is entitled to parent's insurance benefits if:
A. The insured person was fully insured at the time of death; and
B. The parent files an application for parent's benefits; and
C. The parent has reached age 62; and
D. The parent is not entitled to a retirement insurance benefit that is equal to or larger than the amount of the unadjusted parent's insurance benefit after any increase to the minimum benefit; and
E. The parent was receiving at least one-half support from the insured person; and
F. Evidence that the support requirement was met has been filed with the Social Security Administration within the appropriate time limit; and
G. The parent has not remarried since the insured person's death; and
H. One of the following conditions is met:
1. The parent is a natural parent and would be eligible under the law of the State of the worker's domicile to share in the intestate personal property of the worker as the worker's father or mother, as the case may be; or
2. The parent had legally adopted the insured person before he or she attained age 16; or
3. The person claiming benefits became the deceased's stepparent by a marriage entered into before the deceased had attained age 16.