Glossary of Terms

BENEFICIARY

When the term "beneficiary" is used, many think that this only refers to those receiving retirement benefits. However, the Social Security Administration also offers disability and survivor benefits. Anyone currently receiving old age, disability, or survivor benefits is a beneficiary of the Social Security program.

CONTRIBUTIONS

Funds deducted from a wage earner's taxable wages, whether from an employer or an employee, that is contributed to the Social Security program.

CUMULATIVE COVERED EARNINGS

A wage earner's total taxable wages or income; remuneration from which contributions are made to the Social Security program.

CURRENTLY INSURED

To qualify as "currently insured", a person must have contributed into the Social Security program at least 8 quarters of taxable wages in the previous 13 quarters before becoming entitled to receive benefits. This means that within the three years and three months prior to applying or becoming entitled to receive benefits, a person worked at least two years.

FULLY INSURED

For Retirement Insurance Benefits: To be "fully insured", a person must have contributed at least 38 quarters of taxable wages to the Social Security program. Since there are 4 quarters in a year, this means that a person must have worked at least 9 years and 6 months to qualify as "fully insured".

As shown in the table below, exceptions are made to those born after June 1946.

DATE OF BIRTH	NUMBER OF QUARTERS NEEDED TO BE FULLY INSURED
July 1939 - June 1940	31
July 1940 - June 1941	32
July 1941 - June 1942	33
July 1942 - June 1943	34
July 1943 - June 1944	35
July 1944 - June 1945	36
July 1945 - June 1946	37
After June 1946	38

For Disability Insurance Benefits: To be "fully insured", a person must have contributed to the Social Security program at least one quarter for each year since he/she turned 21 years of age. For example, if a wage earner becomes disabled at 45 years of age, he must have contributed to the Social Security program for at least 24 quarters (45 - 21 = 24) to qualify as "fully insured".

DATE OF BIRTH	DISABILITY BEGAN DATE and AGE		CALCULATION	NUMBER OF QUARTERS NEEDED TO BE FULLY INSURED
July 1952	July 2008	56	56 - 21 =	35
July 1953	August 2008	55	55 - 21 =	34
July 1954	September 2008	54	54 - 21 =	33
July 1955	October 2008	53	53 - 21 =	32
July 1956	November 2008	52	52 - 21 =	31
July 1957	December 2008	51	51 - 21 =	30
July 1958	January 2009	50	50 - 21 =	29
July 1959	February 2009	49	49 - 21 =	28

For Spouse or Child Insurance Benefits: For a deceased wage earner to qualify as "fully insured", he/she must have contributed to the Social Security program at least one quarter for each year between the the time he/she turned 21 years of age and date of death. For example, if a wage earner dies at 45 years of age, he must have contributed to the Social Security program for at least 24 quarters (45 - 21 = 24) to qualify as "fully insured".

DATE OF BIRTH	DEATH OF WAGE EARNER DATE and AGE		CALCULATION	NUMBER OF QUARTERS NEEDED TO BE FULLY INSURED
July 1960	July 2008	48	48 - 21 =	27
July 1961	August 2008	47	47 - 21 =	26
July 1962	September 2008	46	46 - 21 =	25
July 1963	October 2008	45	45 - 21 =	24
July 1964	November 2008	44	44 - 21 =	23
July 1965	December 2008	43	43 - 21 =	22
July 1966	January 2009	42	42 - 21 =	21
July 1967	February 2009	41	41 - 21 =	20

PERMANENTLY INSURED

To qualify as "permanently insured", a person must have contributed at least 120 quarters of taxable wages into the Social Security program. This means that a person must have worked at least 30 years to be "permanently insured".

QUARTER

QUARTER OF COVERAGE

A quarter in which an employer or employee contributed to the Social Security program. The minimum taxable income that must be declared to be considered a quarter of coverage is $300.

REMUNERATION

A wage earner's taxable wages, or income, from which contributions are made to the Social Security program. Within a quarter, the minimum amount of taxable wages from which contributions are made is $300, while the maximum amount is $5,000.

For more details on taxable wages, please see Employer Information.

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