WHO IS ELIGIBLE?
To be eligible for retirement or old age insurance benefits, a person must be fully insured and 60 years of age or older.
HOW LONG CAN I RECIEVE RETIREMENT BENEFITS?
Once eligible, a person can receive monthly retirement insurance benefit until the month before he/she dies.
However, this is subject to change if a beneficiary decides to return to work. The next question discusses how benefits will be affected if you return to work.
WILL MY BENEFITS BE AFFECTED IF I RETURN TO WORK?
If you return to work, your benefits will be recomputed at the end of the calendar year and the recomputed benefit will be paid on the first month of the next calendar year. However, if you earn more than a specific amount, your benefits could be reduced. See the Earnings Test for more information.
It is the beneficiary's responsibility to advise the Social Security Administration immediately when he/she returns to employment.
HOW CAN I APPLY?
To apply, please fill out an Application for Retirement Insurance Benefits and submit it along with the required documents as listed in the application.
IF I'M RECEIVING RETIREMENT BENEFITS, CAN I ALSO RECEIVE SPOUSE INSURANCE BENEFITS?
The most recent change to the Social Security Act does not allow a beneficiary to receive two types of benefits. So retirement insurance beneficiaries cannot receive spouse insurance benefits at the same time. However, if you are eligible to receive spouse benefits and the amount is higher than your retirement benefit, you can choose to receive the higher amount.
HOW ARE MONTHLY RETIREMENT INSURANCE BENEFITS CALCULATED?
The "Basic Benefit" is a monthly payment that is one-twelfth (1/12) of the total of:
- 21.5% of the first $11,000 of cumulative covered earnings; and
- 2.9% of cumulative covered earnings in excess of $11,000 but not in excess of the next $33,000; and
- 1.5% of cumulative covered earnings in excess of $44,000
Below is a sample of how to calcuate benefits for an eligible retiree with cumulative covered earnings of $80,000:
| FORMULA: | TOTAL: |
| $11,000 x 21.5% | $ 2,365.00 |
| $33,000 x 2.9% | $ 957.00 |
| $36,000 x 1.5% | $ 540.00 |
| TOTAL: | $ 3,862.00 |
BASIC MONTHLY BENEFIT:
$3,862.00 / 12 mos.
= $321.83
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