Frequently Asked Questions About Social Security

 

 

 

What does Social Security consider to be "covered employment"?
 

To be eligible for Social Security benefits, a worker born after 1928 must have accumulated at least 40 quarters of work in "covered employment." Virtually all paid work qualifies as covered employment, even such episodic jobs as babysitting or housecleaning (provided minimum annual income thresholds are met). The principal groups excluded from the Social Security system are federal workers hired before 1984 and some state and local government employees. In addition, income from interest, dividends, the sale of a business or unreported income is not counted as covered employment. Self-employment earnings on which Social Security tax is paid are considered covered employment, although this has been the case only since 1951. The amount workers earned in self-employment before that year is not counted in determining their benefits.

 

What if I become disabled again after going off disability?

If this happens within five years, you can again receive disability benefits without going through the application waiting period. In addition, your Medicare coverage will automatically resume

 

How does the SSA calculate a retired worker’s monthly benefit?

The Social Security Administration (SSA) bases its benefit calculation on the retiree’s highest 35 years of earnings up to the amount subject to Social Security withholding each year. If necessary, it will use years in which the retiree has low earnings or no earnings to bring the total years of earnings up to 35. The SSA then calculates the retiree’s average monthly earnings over those 35 years adjusted for inflation. The retiree’s monthly Social Security check is arrived at by adding together 90 percent of the first $627 of the average monthly earnings, 32 percent of the next $3,152 and 15 percent of any average monthly earnings above $3,779. (These are the figures for 2005; they are adjusted each year to reflect inflation.) As you can see, the formula is weighted to favor those who earned less during their working lives, giving them a 90 percent retirement benefit on most of their earnings, while giving the highest earners only a 15 percent benefit on a large portion of their working income (and no benefit on earnings above what was subject to tax, which in 2005 is $90,000). You can calculate your future Social Security benefit based on your current and projected earnings by using the SSA's online Benefits Calculator.

 

Can I collect more than one Social Security benefit simultaneously?

No. If you are eligible for two benefit programs, you will receive the higher of the two benefit amounts, but not both. The exception is Supplemental Security Income, which you can receive while collecting benefits from another Social Security program.
 

What if I’m not sure whether I’m capable of returning to work?

Because the SSA wants to encourage disability beneficiaries to at least try returning to work, it offers some incentives. You can return to work and earn as much as you can while still collecting disability benefits for up to nine months during any five-year period. If things don’t work out after a few months, you can leave the job and continue receiving disability benefits uninterrupted. If you want to try working again, you can do so and still receive benefits for a total of nine months during any five-year period. Moreover, if you return to work but your earnings fall below the “substantial work” threshold during any month in the ensuing three years, you can report your earnings and you will receive your full disability benefit for that month or months. In addition, if you had qualified for Medicare coverage while disabled, that coverage will continue for 39 months after your return to work.
 

What’s involved in appealing Social Security decisions, and is it worth it?

If your application for benefits is denied or you are receiving less than you believe you deserve, you can appeal. There are four stages of the appeal process, and you must go through one before you can move to the next.

At the first stage, reconsideration, your claim is reviewed by someone other than the person who made the initial decision regarding your benefits. This person’s decision is based on the material in your file when the original decision was made, plus any new evidence you would like to submit. Unless you are appealing a Social Security decision to terminate your disability benefits, you do not have a right to meet face-to-face with the person making the decision, although you can request to do so. A decision can take up to two or three months. If the decision goes against you, you have 65 days from the date on the written notice to appeal to the next level. A copy of the Request for Reconsideration form in PDF format is available from the Social Security Administration’s Web site. To find it, click here. You can also request the form from your local Social Security office or by calling 800-772-1213.

If the reconsideration goes against you, the next step is a formal administrative hearing before an independent administrative law judge (ALJ). Again, you must fill out a special form to request such a hearing. For an online copy of this form, click here, or you can contact your local Social Security office or call 800-772-1213. This hearing may be your best shot at getting an unfavorable decision reversed, so you should consider obtaining the services of an attorney or other professional knowledgeable about Social Security matters to assist you at this stage. (When providing written notice denying a claim, the SSA will send a list of local community groups and legal services organizations that can either help you with an appeal or refer you to someone who can.) You are allowed to appear at this hearing, and it’s in your best interests to do so. This puts a human face on the hearing and permits the judge to ask you questions. A friend, relative, attorney or other advocate may represent you at the hearing, and you can present witnesses or other evidence to the judge.

If the ALJ rules against you, your next step is the Social Security Appeals Council, which conducts reviews of hearing decisions. Your chances of success here are fairly slim. First, the Appeals Council does not review all cases that are appealed, and if it does decide to review your case, it meets only in Washington, D.C., so you will have to travel there or send a representative. Still, you must file an appeal to the Appeals Council in order to move on to the next step of taking the appeal to federal court. If you haven’t retained the services of an attorney knowledgeable about Social Security matters up to this point, you should seriously consider doing so now. If the Appeals Council is to overturn an ALJ decision, the odds are that it will do so only on the basis of a legal error made by the ALJ. Again, you must fill out a special form to request an Appeals Council review. For an online copy of this form, click here, or you can contact your local Social Security office or call 800-772-1213.