5.1 What does SSI cover?

The Supplemental Security Income (SSI) program provides benefits to low-income aged, blind and disabled persons. It is an income and asset-tested program. It is paid for by general federal revenues. It is not part of Social Security, and the trust funds are not used to finance SSI.

5.2 What does Social Security cover?

Social Security traditionally refers to the Old-Age, Survivors, and Disability Insurance programs. These programs provide monthly benefits to retired and disabled workers and their dependents and to survivors of insured workers. Benefits are paid as a matter of earned right to workers (and their eligible spouses and children and survivors) who gain insured status by means of employment in work covered by Social Security. Coverage in general is compulsory. Taxes on wage and salary workers' earnings, up to a statutory maximum each year, are withheld and matched by employers. Self-employed persons pay taxes on their annual earnings up to the same maximum as employees but at the combined employee-employer rate, subject to some special tax deductions.

5.3 I now pay Social Security taxes on my own earnings, and I am entitled to a survivor benefit from my husband's government pension (in the event of his death). Will my benefits be offset by such pension?

There may be an offset of Social Security benefits from a government survivor pension, but this would apply only to a Social Security survivor benefit, and not to a Social Security benefit based on your own earnings. The time, length, and type of government service would determine the potential offset. SSA can do this individual assessment for you.

5.4 Are people in prison receiving Social Security benefits?

Social Security benefits are not payable to prisoners convicted of felonies--a criminal offense punishable by more than a one year imprisonment--except if in an approved rehabilitation program. Benefits may still be paid to the dependents of prisoners.

5.5 What benefits are available to those wages earners who were not contributors, e.g. teachers and others who have not contributed 40 quarters?

Some people don't need 40 quarters, although most do to get retirement benefits. People without enough quarters may be able to get benefits as spouses or widows, but such benefits are reduced if the otherwise eligible person is getting a pension based on non-covered employment (such as state or local employees in some jurisdictions). Also, public pensions for employees not covered by Social Security are generally more generous to take account of the fact that the pension is a substitute for both Social Security and a supplemental pension.

5.6 Does everyone in the country contribute to Social Security?

Almost every one -- about 95 percent. Most of those not covered are state and local government employees with their own retirement systems. About 25% of state and local government workers are not presently covered. If all new state and local workers were covered under Social- Security, IO% of the long term deficit would be eliminated.

5.7 Do contract workers contribute to Social Security?

Yes, as do self-employed (in general)

5.8 What are the plans for people in their late 50's who are downsized by industry and cannot work, yet they are not yet eligible for Social Security?

They are eligible for early retirement benefits at age 62. The unemployment insurance program provides some income protection for people who lose their jobs before retirement age. Some employer pension plans pay early-retirement pensions before age 62, but not everyone is covered by those plans.

5.9 What expansion in coverage is currently under consideration by the Administration?

Covering newly hired state and local government employees has been proposed by a recent Advisory Council on Social Security and is under consideration by the Administration and members of Congress.

5.10 I understand that military personnel do not pay into Social Security. Why not?

This is not correct. Military personnel have been covered as employees since 1957

5.11 Will there be a FICA tax for people who choose to stay at home occupied with child rearing so that these people can collect Social Security when older?

This is not currently the case.