encarta.msn.com/encyclopedia_761561113_2/Social_Security.html
Social Security Retirement Planner This Social Security web site explains how to decide when to retire. A secure, comfortable retirement is every worker's dream.
Social Security (United States) - Wikipedia, the free encyclopedia Social Security, in the United States, currently refers to the federal Old-Age, Survivors, and Disability Insurance (OASDI) program.
Print this section Several federal agencies today support and administer the various Social Security programs. The Administration for Children and Families within Health and Human Services (HHS) supports TANF by giving block grants to states, which administer the program. The SSA jointly administers Medicare with the Health Care Financing Administration of HHS. The US Employment and Training Administration of the Department of Labor administers Unemployment Compensation. The SSA itself includes 10 regional offices, 6 program centers, and more than 1,300 district and branch offices. The programs associated with Social Security include Old-Age, Survivors', and Disability Insurance (OASDI); For people who have worked for a living, OASDI and Medicare provide support during their older years and when they have stopped working. Unemployment Compensation provides temporary financial help during periods between jobs. SSI provides income to people who cannot work for various reasons. A Retirement, Disability, Death, and Medicare Benefits OASDI, Medicare hospital insurance, and Medicare supplementary medical insurance are separately financed segments of Social Security, each with separate trust funds. Financing for the cash benefits for OASDI comes from earmarked payroll taxes levied on employees, their employers, and the self-employed. The rate of these contributions is based on the taxable earnings of employees, up to a maximum taxable amount, with the employer contributing an equal amount. Self-employed people contribute twice the amount levied on employees. Social Security benefits replace a portion of a person's former earned income. In the interests of fairness and saving money in Social Security trust funds, the government has structured Social Security benefits to provide proportionately more support to poorer citizens and less to wealthier citizens, in relation to income earned during working years. In other words, those who earned low wages or salaries receive a larger percentage of their former income in benefits than do recipients who had higher incomes. In couples with just one worker contributing to Social Security, the noncontributing spouse who first claims benefits at age 65 or older receives 50 percent of the amount paid to his or her spouse. Similar percentages are payable to disabled individuals and their spouses. Surviving spouses and children receive a percentage of the retirement benefit computed from the earnings of the deceased earner.
In 2001 an estimated 153 million people contributed to Social Security funds. During an average month in 2001, almost 46 million people drew Social Security cash benefits. The amount of cash benefits people receive varies depending on the combined wages, salaries, and self-employment income of the primary earner or earners in a family. The law specifies certain minimum and maximum monthly benefits. To keep the cash benefits in line with inflation, the SSA indexes them to increases in the cost of living. These adjustments--known as cost-of-living adjustments (COLAs)--are determined according to changes in the consumer price index, a figure compiled by the government to represent the current cost of a selection of goods and services. Most eligible individuals can start receiving partial old-age benefits at age 62. Those born in 1937 or earlier can receive full benefits starting at age 65, while those born after 1959 must wait until age 67 to receive full benefits. For eligible workers between 62 and 65, the amount of benefits depends on age and earnings. Medicare health insurance for the elderly is split into two parts, hospital insurance, also known as part A, and supplementary medical insurance (SMI), also known as part B Medicare hospital insurance pays for inpatient hospital services, nursing home and hospice care, and home health services. Financing for this part of Medicare comes for the most part from payroll taxes. Medicare supplementary medical insurance, which pays for many services provided by physicians, is funded in part by uniform monthly contributions from aged and disabled people enrolled in the program, and in part by federal general revenues. Legislation passed in 1982 and 1984 froze the share of SMI costs covered by federal revenues at 75 percent. In 2001 the Medicare SMI monthly premium for each participant was $54. In addition, patients are responsible for a deductible portion of their hospital costs and for copayment of 20 percent of physician charges.
Americans pay significantly more for OASDI and Medicare hospital insurance today than they did when the program was first started. The rate of employee contribution, which was one percent of wages when the program began in 1937, had increased to 765 percent by 2002. Of that amount, 62 percent was slated for OASDI and 145 percent for hospital insurance. The maximum amount of annual income subject to taxation for OASDI and Medicare hospital insurance was $88,900 in 2002. B Unemployment Compensation The Unemployment Compensation program provides monetary support for people who have lost jobs. The Employment Service program (established prior to the Social Security Act) provides training and job-finding services for people seeking work. The two programs are controlled cooperatively by the federal and state governments. Titles III and IX of the Social Security Act authorized the federal government to grant money to states to administer unemployment compensation, and established a federal unemployment insurance trust fund. The Federal Unemployment Tax Act of 1939 authorized the collection of both federal and state payroll taxes from employers and specified how these funds were to be used. Most of the federal tax can be offset by employer contributions to state funds under an approved state unemployment compensation law. The federal government uses its small portion of the tax to pay for the administrative costs of the Unemployment Compensation and Employment Service programs, and for loans to states whose funds run low. In general, unemployment compensation benefits under state laws are intended to replace about 50 percent of the wages previously earned by a worker. Maximum weekly benefits provisions, however, result in benefits equal to less than 50 percent of wages for most higher-earning workers. All states pay benefits for up to 26 weeks to qualified recipients. In some states, the duration of benefits depends on the amount earned and the number of weeks worked in a previous year. In others, all recipients are entitled to benefits for the same length of time. During periods of heavy unemployment, federal law authorizes extended benefits, in some cases up to 39 weeks. For example, in 1975, during a period of high unemployment, extended benefits were payable for up to 65 weeks. Federal payroll taxes help to finance such extended benefits.
C Supplemental Security Income Under the Supplemental Security Income program (SSI), the federal government provides payments to elderly, blind, or disabled individuals with low income. SSI replaced federally subsidized programs of state assistance that existed from 1936 through 1973 for these three groups.
Richard Nixon implemented SSI in 1972, and the program began in 1974. Funding for SSI comes from general federal revenues, and many states add to SSI benefits from their own revenues. SSI programs take into consideration the income and resources of individuals and families to determine the amount of aid provided to recipients. Under the Social Security Act, the federal government also provides financial grants to the states to operate programs offering maternal and child health care, services to disabled children, child welfare services, and social services such as daycare for children of working mothers.
The government has relied ...
|
http://csua.com/feed/