442:
Beginning in 1978, employers were required to report annual wages, rather than quarterly wages. As a result, the rules was changed, so that a person received one quarter of coverage for each $ 250 of wages or self-employment income earned by a person, up to a maximum of four quarters of coverage per year. For each year after 1978, the quarter of coverage amount is equal to the ratio of the national average wage index for the current to that of 1976, multiplied by the 1978 amount of $ 250. Amounts are rounded down to the nearest multiple of $ 10. The quarter of coverage amount for a particular year cannot be less than that of the previous year.
226:
Security Act, during a year in which there was at least one month in which the beneficiary was not entitled to Title II benefits, or a year in which the beneficiaries entitlement to Title II benefits was terminated for reasons other than death. The grace year must also include at least one non-service month, which is any month in which the beneficiary neither earns wages over the monthly exempt amount nor performs substantial services in self-employment. Services are considered substantial in self-employment if they consist of over 45 hours in a single month or 15 hours if it is a "highly skilled occupation."
102:; because of this a person obtains their age on the day before their birthday. A person born on the first of the month is considered to obtain their age in the month prior and a person born on January 1 is considered to obtain their age in the prior year. In order for a person to be eligible for RIB in the month of their birth, they must have either been born on the first (where they obtained their age in the prior month) or the second of the month (where they obtained their age on the first of the month).
213:
beneficiary earns over the annual exempt amount. The second tier, for those who are reaching their full retirement age, reduces the benefits for the year by $ 1 for every full $ 3 the beneficiary earns over the second tier annual exempt amount. The first tier annual exempt amount is $ 18,960 and the second tier annual exempt amount is $ 50,520 for the year 2021. When possible, all benefits deducted are deducted at the beginning of the year before any benefits are paid.
217:
receives $ 920 a month, but then returns to work for a year and has 12 months of benefits withheld, SSA would recompute the benefit at the person's full retirement age and pay $ 985 a month (in today's dollars) going forward. Thus, the earnings test shifts Social
Security benefits from a time when a person is working to a time when they are more likely to be retired.
344:
Beneficiaries who are already receiving benefits on the 3rd of the month continue receiving them on that date, unless they volunteer for cycling. New beneficiaries who were born between the 1st and 10th of the month are in
Payment Cycle 2; those born between the 11th and 20th are in Payment Cycle 3;
186:
DRCs are accrued in any month between the month in which a person attains Full
Retirement Age and the month they attain the age of 70 and they postpone claiming RIB. A person who is already claiming RIB may also voluntarily decide to stop receiving their payments temporarily to accrue DRCs beginning
451:
A person with at least 40 quarters of coverage is automatically considered fully insured. Alternatively, a person is considered fully insured if they have at least six quarters of coverage, and the person has at least one quarter of coverage for each calendar year after the later of 1950 or the year
336:
Cycling the benefits onto four different payment days began in 1997 as the result of unequal workloads in the beginning of the month which made it difficult for all beneficiaries to have easy access to the
Administration. At this time, over 50 million checks were issued by the Administration within
332:
For Cycle 1 beneficiaries, payment is moved to the preceding Friday if the 3rd day of the month falls on
Saturday or Sunday. Similarly, if a payment date falls on a federal holiday—which can only happen for Cycle 2 beneficiaries on Veterans Day and Cycle 4 beneficiaries on Christmas—payment is moved
190:
The value of DRCs is 2/3% a month or 8 percent per year for postponement of claiming RIB. For example, if the person's full retirement age is 66 and 10 months and the PIA is $ 1,000, the benefit if claimed at 66 and 10 months would be $ 1,000 but would be $ 1,253 (plus any cost of living adjustment)
157:
RIB benefits can be claimed in any month after the age of 62, subject to certain restrictions. However, benefits may be reduced if they are claimed before that person's Full
Retirement Age. For each month that the benefit is claimed before the month in which the person attains Full Retirement Age,
212:
The AET is used as the primary earnings test for RIB. The test applies only to earned income and has a two tier system in calculating deductions. The first tier, for those who are not reaching Full
Retirement Age in the current year, reduces the benefits for the year by $ 1 for every full $ 2 the
110:
Benefit payments vary, in part, based on when a person claims RIB, so not every person will desire to begin collecting their benefits at the same time. As a result, an application must be filed with the Social
Security Administration before one can collect RIB. There are several ways to apply for
225:
The MET can be used only in certain years, under certain conditions. In order for the MET to be applied to any given year, that year must first be considered a grace year, which requires that it either be the first year in which the beneficiary is entitled to benefits under Title II of the Social
246:
The Social
Security Amendments of 1983 (Public Law 98-21) created the WEP. Beneficiaries who have been employed in work that does not pay into the Social Security Trust Fund and who receive a pension from that employment based upon earnings which were not covered by Social Security may see their
441:
For years before 1978, a person received one quarter of coverage for each three-month period during which the person received at least $ 50 of wages. A self-employed person received four quarters of coverage for each year during which the person received at least $ 400 of self-employment income.
257:
The WEP may reduce the benefit in various ways, taking various rules and computation methods into account (see main article). The WEP was developed as the result of the progressive method in which the PIA is computed. Since those with less earnings on the record receive a comparatively larger
216:
The earnings test does not reduce lifetime Social
Security benefits, on average. This is because any benefits lost to the earnings test lead to increased monthly benefit amounts when an individual reaches the full retirement age. For example, if an individual claims benefits at 62 in 2021 and
148:
The primary factor in deciding the amount of a RIB payment is the PIA which may be computed in different ways; the highest PIA is used on a person's record. Where a new start method and an old start method come up with the same PIA, it is considered that the new start method is used.
199:
An earnings test has been part of the calculation of retirement benefits since the Social Security Act was signed in 1935. There are two earnings tests applied to beneficiaries who are under Full Retirement Age, the Annual Earnings Test (AET) and Monthly Earnings Test (MET). The
82:
People attain fully insured status based upon their payments into the Social Security system through payroll taxes and the amount of time they have been working in jobs covered through the Social Security system. This is measured through quarters of coverage.
86:
A person earns one quarter of coverage for each $ 1,410 of earned income in 2020. A person can earn up to four quarters of coverage per year. The amount to earn one quarter of coverage may change from year to year based on the national average wage index.
158:
the benefit is reduced by a certain amount of the PIA. For the first 36 months, the benefit is reduced by 5/9 of 1% of the PIA; for additional months it is reduced by 5/12 of 1%. The aggregate reduction for the first three years is 20%.
258:
percentage of their average income, under normal computations a beneficiary who paid in little to the Social Security system and who is drawing a separate pension may have what is perceived as an unfair advantage in their benefits.
34:
paid based upon the attainment of old age (62 or older). Benefit payments are made on the 3rd of the month, or the 2nd, 3rd, or 4th Wednesday of the month, based upon the date of birth and entitlement to other benefits.
247:
benefits partially offset by the WEP. The WEP applies once the beneficiary is both entitled to RIB and is entitled to the pension or meets all the requirements except for stopping work or filing an application.
384:
Title II payments a beneficiary is entitled to for any given month will be paid in the following month. (ex. if a beneficiary is entitled to a payment in August, they will receive that payment in September)
55:
Certain requirements must be met before a person becomes entitled to RIB. These requirements are based on both age and payments made into the Social Security System through payroll taxes. These are:
266:
Originally, all RIB beneficiaries reached their Full Retirement Age at the age of 65. Changes in the Full Retirement Age have been enacted, based upon the birthdate of the beneficiary as follows:
229:
The monthly exempt amount is 1/12 of the yearly exempt amount for that year. For first tier beneficiaries, the monthly exempt amount is $ 1,130 and $ 3,010 for second tier beneficiaries for 2008.
254:
that the WEP may be either reduced or waived. Anyone with 30 or more YOCs is exempt from the WEP. Beneficiaries with between 21 and 29 YOCs will have the effect of the WEP reduced.
315:
RIB payments, like all benefits paid under Title II of the Social Security Act, are generally paid on one of the following days depending on the beneficiary's payment cycle:
1093:
90:
In order to be considered fully insured, a person must generally have at least 40 quarters of coverage. Fully insured status is used for other benefits besides RIB.
888:
1088:
970:
370:
Beneficiaries who become entitled on a new record and who were receiving benefits on the 3rd of the month on another record, without a break in entitlement
178:
For example, for an individual whose Full Retirement Age is 66 and 10 months and who has a PIA of $ 1,000, the benefit, if claimed at 62, would be $ 708.
991:
934:
1057:
337:
the first three days of the month with an expectation that the workload would be over 70 million within the first three days by 2020 with the
924:
232:
The MET is helpful for beneficiaries who retire in the middle of the year and who would be penalized for earlier earnings under the AET.
251:
820:
1006:
201:
914:
345:
and those born later in the month are in Payment Cycle 4. However, certain individuals will still be placed into Payment Cycle 1:
204:, signed into law April 7, 2000, eliminated the use of these tests for beneficiaries who have attained their Full Retirement Age.
874:
865:
412:
1021:
893:
519:
407:
241:
31:
402:
70:
929:
422:
417:
357:
350:
1047:
1011:
1016:
131:
130:
The amount of a RIB payment is based upon several factors, including: social security payroll taxes paid into the
1062:
374:
452:
they attain the age of 21, and the earlier of the year in which they attain the age of 62 or the year of death.
1052:
965:
364:
143:
134:, the age at which benefits are claimed, the current earned income of an individual, and military service.
898:
944:
792:
770:
748:
737:
726:
665:
637:
626:
549:
499:
821:
https://web.archive.org/web/20070610231614/https://s044a90.ssa.gov/apps10/poms.nsf/partlist!OpenView
562:"Social Security Office Locator, SSA Office Locator Social Security Office Locator, Social Security"
1001:
996:
858:
44:
393:
The last month of entitlement to RIB is the month before the month in which the beneficiary dies.
99:
1067:
380:
Beneficiaries whose checks are garnished by court-ordered child support, alimony, or tax levy
986:
649:
27:
781:
759:
715:
704:
599:
588:
514:
939:
851:
162:
For the formulae, RF means Reduction Factor, the number of months RIB is claimed early
1082:
485:
338:
843:
1037:
838:
693:
615:
677:
1042:
960:
650:"The President Signs the "Senior Citizens' Freedom to Work Act of 2000""
533:
561:
575:
481:
479:
471:
847:
367:
premiums through the Qualified Medicare Beneficiaries program
115:
Calling SSA's national toll-free number (1-800-772-1213) or
303:
January 2, 1959 – January 1, 1960: 66 years and 10 months
285:
January 2, 1942 – January 1, 1943: 65 years and 10 months
300:
January 2, 1958 – January 1, 1959: 66 years and 8 months
297:
January 2, 1957 – January 1, 1958: 66 years and 6 months
294:
January 2, 1956 – January 1, 1957: 66 years and 4 months
291:
January 2, 1955 – January 1, 1956: 66 years and 2 months
282:
January 2, 1941 – January 1, 1942: 65 years and 8 months
279:
January 2, 1940 – January 1, 1941: 65 years and 6 months
276:
January 2, 1939 – January 1, 1940: 65 years and 4 months
273:
January 2, 1938 – January 1, 1939: 65 years and 2 months
62:
Have obtained the age of 62 by the first of the month.
833:
810:
661:
659:
1030:
979:
953:
907:
881:
509:
507:
495:
493:
59:Be fully insured under the Social Security system
817:Social Security Program Operations Manual System
373:Beneficiaries who receive any payments from the
576:"Apply for Social Security Benefits | SSA"
26:) or old-age insurance benefits are a form of
859:
689:
687:
8:
363:Beneficiaries for whom the State pays their
202:Senior Citizen's Freedom to Work Act of 2000
118:Contacting a local Social Security office or
288:January 2, 1943 – January 1, 1955: 66 years
866:
852:
844:
611:
609:
607:
694:https://www.ssa.gov/pubs/EN-05-10069.pdf
678:"Exempt Amounts Under the Earnings Test"
616:https://www.ssa.gov/pubs/EN-05-10147.pdf
250:There is a possibility that with enough
43:RIB is authorized under Title II of the
1094:Federal assistance in the United States
935:Temporary Assistance for Needy Families
464:
434:
69:have been automatically converted from
1058:Social Security debate (United States)
834:Social Security Administration website
65:Have either applied for the benefits
7:
1089:Social security in the United States
925:Social Security Disability Insurance
809:. Social Security Administration.
236:Windfall elimination provision (WEP)
819:. Social Security Administration.
328:Cycle 4: 4th Wednesday of the month
325:Cycle 3: 3rd Wednesday of the month
322:Cycle 2: 2nd Wednesday of the month
1007:Social Security Amendments of 1965
486:Social Security Act Title II § 202
423:The Peoples Plan - Social Security
270:Prior to January 2, 1938: 65 years
175:: Benefit = PIA × (228 – RF) /240
169:: Benefit = PIA × (180 – RF) /180
14:
915:Disability Determination Services
472:http://www.ssa.gov/glossary.htm#R
182:Delayed retirement credits (DRCs)
121:Submitting an online application
875:Social Security (United States)
413:Social Security (United States)
306:After January 1, 1960: 67 years
1022:Windfall Elimination Provision
894:Social Security Administration
538:Social Security Administration
520:Social Security Administration
408:Social Security Administration
360:, in part, to an SSI recipient
356:Beneficiaries whose income is
242:Windfall Elimination Provision
187:at their Full Retirement Age.
138:Primary insurance amount (PIA)
32:Social Security Administration
1:
920:Retirement Insurance Benefits
403:Disability Insurance Benefits
319:Cycle 1: 3rd day of the month
173:Formula for Additional Months
71:Disability Insurance Benefits
20:Retirement Insurance Benefits
930:Supplemental Security Income
540:. Retrieved August 12, 2020.
418:Supplemental Security Income
351:Supplemental Security Income
1048:Office of the Chief Actuary
1012:Social Security Death Index
167:Formula for First 36 Months
1110:
1017:Social Security Trust Fund
889:History of Social Security
349:Beneficiaries who receive
239:
141:
132:Social Security Trust Fund
30:payments made by the U.S.
1063:Social Security Wage Base
375:Railroad Retirement Board
1053:Primary Insurance Amount
153:Benefits reduced for age
144:Primary Insurance Amount
389:Termination of benefits
252:years of coverage (YOC)
98:The United States uses
73:at Full Retirement Age.
899:Social Security number
807:Social Security Online
333:to the preceding day.
191:if claimed at age 70.
16:U.S. old age insurance
945:Unemployment benefits
221:Monthly earnings test
839:Apply for RIB Online
534:Quarters of Coverage
208:Annual earnings test
78:Fully insured status
1002:Social Security Act
997:Revenue Act of 1942
908:Assistance programs
262:Full retirement age
51:Entitlement factors
45:Social Security Act
100:English common law
1076:
1075:
1068:Years of coverage
793:POMS RS 00201.002
782:POMS GN 02407.005
771:POMS GN 02401.001
760:POMS RS 00615.003
749:POMS RS 00605.362
738:POMS RS 00605.360
727:POMS RS 02501.025
716:POMS RS 02505.065
705:POMS RS 02501.030
666:POMS RS 02501.021
638:POMS RS 02501.001
627:POMS RS 00615.690
600:POMS RS 00615.101
589:POMS RS 00605.001
550:POMS RS 00615.015
515:POMS RS 00301.105
500:POMS RS 00201.001
1101:
987:Disability fraud
868:
861:
854:
845:
795:
790:
784:
779:
773:
768:
762:
757:
751:
746:
740:
735:
729:
724:
718:
713:
707:
702:
696:
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541:
530:
524:
511:
502:
497:
488:
483:
474:
469:
453:
449:
443:
439:
28:social insurance
1109:
1108:
1104:
1103:
1102:
1100:
1099:
1098:
1079:
1078:
1077:
1072:
1026:
975:
949:
903:
877:
872:
830:
803:
798:
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776:
769:
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311:Time of payment
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210:
197:
184:
155:
146:
140:
128:
108:
96:
80:
53:
41:
39:Legal authority
17:
12:
11:
5:
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1097:
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940:Ticket to Work
937:
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828:External links
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195:Earnings tests
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142:Main article:
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126:Benefit amount
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111:the benefits:
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68:
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38:
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25:
22:(abbreviated
21:
919:
882:Key articles
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806:
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339:baby boomers
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66:
54:
42:
23:
19:
18:
1038:Legacy debt
954:Health care
811:www.ssa.gov
106:Application
1083:Categories
460:References
341:retired.
1043:Numident
966:Medicare
961:Medicaid
397:See also
365:Medicare
801:Sources
358:deemed
94:Age 62
1031:Other
971:SCHIP
429:Notes
377:, and
353:(SSI)
992:FICA
980:Law
536:".
517:".
24:RIB
1085::
686:^
658:^
606:^
506:^
492:^
478:^
67:or
47:.
867:e
860:t
853:v
823:.
813:.
680:.
652:.
578:.
564:.
532:"
523:.
513:"
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