10 THINGS YOU MAY NOT KNOW ABOUT SOCIAL SECURITY

Social Security is a very misunderstood federal program.  The better you understand it, the better it can work for you. Some things you may not know:

1.  Social Security is a federal insurance program sponsored by the US Government. 2.  It has several parts, including old age pensions (retirement), disabled workers benefits, widows benefits and benefits for dependents, among some of them. 3.  Not everyone is covered by Social Security disability insurance (SSDI).  You are usually covered if:

• You have worked and earned sufficient "quarters of coverage" under the regulations.

• You have worked at least 5 out of the most recent 10-year period.

4.  You must pay for Social Security disability insurance (SSDI).  You pay by working and having SSDI and Medicare tax deducted from your paycheck.  This tax is called FICA withholding.  This is what funds Medicare and Social Security.  Over 12 percent of all taxes paid by Americans go into the Social Security disability trust funds.

5.  The Social Security Administration operates 2 different types of disability programs:

• SSDI = which is based on your work and earnings history and FICA taxes paid.

• SSI (Supplemental Security Income) which is a needs based poverty level program that requires no past work or contributions to FICA.  It has severe resource and income restrictions, however.

 6.  Most claimants get denied disability benefits, especially in the early stages of the application process.  Only about 23 percent of claims are paid in the application stage.  Many of those will be paid later in the appeals process, especially at the hearing level (before an administrative law judge).

7.  Social Security has the most strict definition of "disability" in the insurance industry.  For most claimants, you must be unable to perform any type of full-time work due to a severe physical and/or mental impairment, and you need medical records to prove it.

8.  If an adult is approved for Social Security disability payments, his or her dependents can usually also get benefits, up to 50 percent of the adult beneficiary's benefit amount.

9.  You can begin receiving Social Security retirement benefits as early as your 62nd birthday.  If you begin getting benefits at age 62, your monthly benefit amount is reduced by approximately 30 percent (compared to your full benefit at full retirement age).

10.  You can actually receive early retirement benefits at age 62 and apply for disability benefits at the same time.  If your disability application is approved, your payment will be increased to the higher amount (because disability pays more than early retirement).  If your disability claim is never approved, you may continue to receive early retirement benefits

If you apply for Social Security disability benefits, expect to be denied twice before you win--once at the application stage of the process, and again during the first appeal, which is called "Reconsideration."  Most claimants who get paid do so at the second stage of appeal, which is a hearing.  Don't give up.  Appeal and then appeal again.

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Forsythe Firm          Social Security Representatives           Huntsville, AL         (256) 799-0297