2.1 If a person takes an early retirement (age 55) from a well paying job and takes a part-time job with much less pay will it affect Social Security benefit amounts?

Yes, retirement benefits are based on average lifetime earnings over the highest 35 years (after indexing earnings before age 60 to allow for fast wage inflation).

2.2 In the 1980's some companies "left" Social Security and then reentered; what impact will that have on the benefits of workers in those companies?

This is misinformation. Companies were not allowed to "leave " Social Security in the 1980's. There is not an option to leave for covered employees.

2.3 How do people who have never paid into the system collect benefits?

In order to collect benefits, one must have been covered under the program and paid into the system, or have been a dependent of such a person.

2.4 When does the divorced ex-spouse 50% benefit begin, when she retires or when he retires?

If married for at least 10 years and not remarried, retirement can begin at 65 based on the former spouse's earnings record (or at ages 62-64 in a reduced amount).

2.5 How are my benefits calculated?

Benefits are earnings averaged over most of a working career. Benefit amounts are also affected by the age at which retirement begins. Once benefits begin, they are adjusted annually by automatic cost-of-living increases.

2.6 To what extent are my benefits hurt by having no income in the five years just before I retire versus no income for some together earlier rive years?

The benefit amount is based on earnings saved over most of a worker's career. If higher lifetime earnings will result in higher benefits. Periods of low or no earnings will often have the effect of lowering benefits.

2.7 Why do benefits stop one month prior to the death of the beneficiary?

Because benefits begin the month the beneficiary applied, regardless of when the application or birth date occur.

2.8 Why should divorced spouses be eligible for retirement benefits?

Payments for a divorced wife and surviving divorced wife were first added to the Social Security law in 1965. At that time the law required that the marriage must have lasted for 20 years, the divorced wife must not have remarried, and the divorced wife must meet a support requirement at the time the ex-husband became entitled to benefits or died. Congress wanted to protect women who were divorced late in life and therefore did not have an opportunity to build a substantial earnings record of their own. (If woman did have a work record of her own, any divorced wife's or surviving divorced wife's benefit is reduced by the amount she could receive based on her own record.) Subsequent legislation and court actions reduced the length-of-marriage requirement to 10 years, eliminated the dependency test, and extended benefits to divorced husbands.

2.9 If you are eligible to collect a civil service pension, will Social Security be reduced by that benefit?

The "windfall elimination provision" under Social Security will partially offset some pension income from noncovered employment. Its applicability is determined by the years employed in noncovered employment, length of employment, and years covered under Social Security. Individuals should contact Social Security for a determination based on their individual work histories.

2.10 Are Social Security benefits a private property?

A worker's Social Security benefit is not private property; the worker cannot designate who is to receive benefits on his or her Social Security earnings record. Instead, entitlement to Social Security benefits is an earned right based on past covered work. The Social Security Act defines the eligibility requirements, and anyone who meets these requirements must be paid.

2.11 What plans are being considered to improve the gender equity of the Social Security system? And if none, why not? I am concerned that the current and traditional system has calculated contributions based on a traditional male wage earning pattern.

Various proposals have been considered to take into account the work patterns of women who often withdraw from the workforce or reduce their earnings as a result of being a care giver to children and parents. These issues can be part of the current reform debate. Your Congressional Representative and Senators should have your views as legislative changes would have to be made in the benefit provisions.

2.12 Does the reduction in benefits based on income earned include income from passive sources such as interest or income from private retirement systems?

The reduction in Social Security benefits for earned income exceeding the income limits does not apply to unearned or pension income.

2.13 Can you collect Social Security and a federal or state pension at the same time?

Yes, you can receive federal, state or local government pensions and Social Security benefits, but Social Security benefits may be reduced to preclude any windfall from occurring. 'The offset would vary depending on the time and length of noncovered employment.

2.14 If both husband and wife work full-time for their entire lives, upon retirement do each of them collect the full (100%) benefit based on the earnings on which they each contributed (separately) into Social Security during their lifetime?

And

In the same scenario, would they benefit (monetarily) by being divorced and filing separately for Social Security?

A husband and wife with their own individual earnings records can each receive a Social Security benefit based on their own earnings, or they can choose to receive, at the normal Retirement Age (currently, 65), one-half their spouse's benefit, whichever is higher. There is no monetary "penalty" for being married, nor would they receive more if divorced.

2.15 Is it true you cannot accrue Social Security benefits before age 22? If so, why?

No: a person begins to accrue Social Security credits at whatever age he or she begins to work in employment covered by Social Security. These credits are the basis for entitlement to Social Security benefits -- again, at any age. However, to ensure the relationship between benefits and a loss of earnings, a person cannot qualify for benefits unless the worker is insured -- that is, credited with a specific amount of work over a certain period of time.

A person younger than age 22 could be eligible for either (1) Social Security child's benefits on a parent's record or (2) Social Security disability benefits on his or her own record. Child's benefits generally may be paid to a dependent unmarried child under age 18, to a child age I 8 or older who became disabled before age 22, and to a full-time elementary or secondary school student under age 19. If the parent is alive, he or she must be entitled to retirement or disability benefits. If the parent is no longer living, he or she must have worked long enough under Social Security for benefits to be paid. Disability benefits are payable to a person under age 22 who:

• Has filed an application for benefits;

• Has disability insured status (i.e., has at least six Social Security credits (about 1 1/2 years of work) in the 3 years before he or she becomes disabled);

• Meets the definition of disability (i.e., is unable to do any substantial gainful work because of a medical condition that can be expected either to last for at least 12 months or to end in death. To meet this definition, the impairment or impairments must be of such severity that he or she is unable to do his or her previous work and cannot do any other work considering his or her age, education, and work experience); and

• Has completed a 5-month waiting period,

2.16 Does it matter how long you pay in?

Yes, because the benefit amount is case on earnings averaged over most of a worker's career. Higher lifetime earnings will result in higher benefits. Periods of low or no earnings will have the effect of lowering benefits,

2.17 If the wife earns a larger income than the husband, would the husband receive less Social Security then the wife?

Yes, a husband and wife with their own individual earnings records can receive a Social Security benefit based on their own earnings, or for retirement at the full-benefits retirement age (currently, 65) they can choose to receive one-half of their spouse's benefit, whichever is higher.

2.18 The perception is often that people can receive benefits without Paying into Social Security-is that true?

No, Social Security benefits are paid only to covered workers and their dependents, based on the worker's earnings history.

2.19 As we move into the 21st Century, will we offer special benefits to life partners as well? If not, why?

No proposal of this kind has been introduced as legislation at this time.

2.20 Who or what group is responsible for taking away Social Security benefits from senior citizens who have to work to survive after 65 years of age?

Under current law, Social Security beneficiaries who are 65-69 may earn up to $14,500 per year, after which benefits are reduced $1 for every $3 earned; this is done under the theory that retirement benefits should be paid only to persons who are retired. The earnings limit is eliminated at age 70 and over. This provision is in the Social Security Act and, in one form or other, has always been present.

2.21 Did this party who is taking away benefits realize that these older Americans are also paying into Social Security from the wages/income they make, which at the same time penalizing them?

Some of the reform proposals would eliminate the earnings test entirely. However, it is most important to note that, when benefits are withheld, they are later equitably increased to allow for both the withholding and the additional earnings on which taxes are paid.

2.22 Does a retired single woman receive the same amount of benefits as a retired single man?

The amount that any worker receives as a benefit is based on his/her own individual earnings history. Women are particularly benefited by the redistributional aspects of the beneflt formula, which provides a higher percentage of prior wages for low wage earners than for middle and higher wage earners.

2.23 How do they determine how much benefits each person gets?

Benefits are based on earnings averaged over most of a working career (and indexed to take into account wage inflation in the past, before age 60). Benefit amounts are also affected by the age at which retirement begins. Once benefits begin, they are adjusted annually by automatic cost-of-living increases.

2.24 Currently, what percentage of the retirement benefit represents the amount brought by the recipient's past contributions?

This would depend upon the year in which a beneficiary was born and the year of retirement and upon their individual earnings history.

2.25 Shouldn't a person who works 40 plus years be entitled to 15 years of retirement?

A male worker retiring at age 65 in the year 2000 has a life expectancy of 15.8 years, while a female at age 65 will have a life expectancy of 19.3 years. When all the baby boomers will have retired, life expectancy at age 65 for men is projected to be 17.1 years and for women is projected to be 20.4 -years.

2.26 Do those that are well off still collect Social Security?

Yes, there is no means test. Social Security benefits are an earned benefit.

2.27 What happens to money of deceased individuals that was put in but never recovered?

Social Security provides retirement, survivor, and disability insurance. As with other insurance, there are times when -the insurance is not needed but its value existed when workers needed the protection. For example, most people who purchase fire insurance end up not making a claim, but they nonetheless had valuable insurance protection.

2.28 How would raising the minimum wage affect the projections of Social Security income/benefits? What is the projected number of workers in 2029 and what is their projected average or total wage?

Raising the minimum age would have a very small effect on the Social Security projections. According to the 1998 Trustees' report, the number of workers covered by Social Security is projected to rise from about 147 million in 1997 to about 167 million by 2030. By 2030, their average wage is projected to increase by about 30 percent in excess of inflation.

2.29 How do you justify allowing persons earning over $100,000 per year to get Social Security benefits?

This is not a means test. Those people paid into the system and Social Security benefits are an earned right. People who are still working and earning at that level can not receive retirement benefits until age 70. The benefit system is progressive in that high income people receive benefits that replace a lower fraction of their earnings than is the case for lower earners. If such high earners were excluded (on both the tax and the benefit side), the Social Security system imbalance would be larger.

2.30 Is there any consideration being given to treating GenX-ers different from the Baby Boomers? What about allowing younger people to invest privately while continuing Social Security benefits for the Baby Boomers?

A number of Social Security proposals are being considered right now. They include some proposals that would include private investments.

2.31 Is there any consideration being given for longtime same-sex couples to receive survivor benefits?

Not at this time.

2.32 How much do people pay into the Social Security vs. how much they collect in benefits?

Today workers pay 6.2 percent of the earrings up to $68,400 and employers match it. Today, the average benefit for a retired worker is about $760. For each individual, what they pay in and receive depends on their work history, age, how long they worked, whether they have dependents and how long they live in retirement.

2.33 What about using the highest years of earnings rather than the last 35 years for determine benefit amount?

The rationale for using the worker's highest 35 years is to have most of his or her work life count toward Social Security. To base benefits on only a few years might be less fair if those who only worked a few years under Social Security received the same benefit as a person who worked an entire lifetime under the system.

A person can retire at age 62 and receive 80% of benefits. When they reach the age of 65, does the benefit continue at 80% or does it increase to 100%?

Actuarial reductions are permanent. The benefit remains 80% of the full amount. The actuarial reductions are generally intended to be income neutral. By starting benefits at a younger age, benefits are received longer so that total lifetime benefits are generally the same.

2.34 Is the Social Security-Administration considering a "reverse tapering" of benefits so that, to ensure that a person does not fall into poverty, one's benefits will increase with the increased financial burdens as one ages?

Such proposals have been considered but have not been enacted into law. Social Security beneficiaries do receive annual cost-of-living adjustments. This is not a common feature of private pensions.

2.35 Is there a way to allow people to pay extra if they choose to by way of higher contributions to ensure that they can then receive a higher benefit?

There is no voluntary buy-in for Social Security. Workers do, of course, have the option to set aside additional funds in individual retirement accounts (IRAs) if they want to save for retirement.