Social Security Administration

525 Munson Ave.
Traverse City MI 49686

Monthly Information Package

May 2008


Columns


(1)  SOCIAL SECURITY COMMISSIONER: REMEMBERING THOSE WHO SERVE 

(2)  HELP YOUR MOM SAVE $3,600!

(3)  GO GREEN BY GOING ONLINE

(4)  SPRING CLEANING? DUST OFF YOUR FINANCIAL PLAN 

(5)  CELEBRATE DIRECT DEPOSIT

(6)  FARMERS: PLANT SEEDS FOR YOUR WORKERS’ RETIREMENT


Features

QUESTIONS AND ANSWERS



Social Security Column 1

SOCIAL SECURITY COMMISSIONER: REMEMBERING THOSE WHO SERVE
By Guest Columnist Michael J. Astrue
Commissioner of Social Security

With Memorial Day approaching, I think it’s important to remember those who have made the ultimate sacrifice for our nation. We at Social Security honor the heroism and courage of our military service members and mourn for those who have given their lives in defense of freedom.

It is also important to recognize those service members who are still with us, especially those who have recently been wounded.

That’s why I’d like to take this opportunity to remind readers that military service members receive expedited processing of their disability applications from Social Security. In fact, under an agreement initiated by Social Security, the Department of Defense now transmits information to us that allows us to quickly identify military personnel injured in Operations Enduring Freedom and Iraqi Freedom.

The expedited process is available for any military service members who become disabled during active duty on or after October 1, 2001, regardless of where the disability occurs.

Depending on the situation, some family members of military personnel also may be able to receive benefits, including dependent children and spouses.

If you, or someone you know, were wounded while on active duty in the military, find out more about what Social Security can do for you by visiting our website designed specifically for you: www.socialsecurity.gov/woundedwarriors. There, you will find answers to a number of commonly asked questions, as well as other useful information about disability benefits and Supplemental Security Income (SSI). Please pay special attention to the fact sheets available on that website titled Disability Benefits for Wounded Warriors and Expediting Disability Applications for Wounded Warriors.

You’ll also find links to useful VA websites, such as the “Seamless Transition Home” link, and the “Veterans ONline APPlication” website.

This Memorial Day, join me as I honor those who gave their lives for our nation, and salute those who served as well as those who continue to serve.

To learn more about what Social Security is doing to serve wounded warriors, visit www.socialsecurity.gov/woundedwarriors. For the families of service members who have made the ultimate sacrifice, Social Security survivors benefits may be payable. To learn more about eligibility for survivors benefits, visit www.socialsecurity.gov/survivorplan.


Social Security Column 2

HELP YOUR MOM SAVE $3,600!
By Bob Simpson
Social Security District Manager in Traverse City

People all over the country are helping their moms save as much as $3,600 per year on the cost of prescription drugs. You can too!

We all know the high cost of medicine can be a burden on mothers who have limited income and resources. But there is extra help — available through Social Security — that could pay part of her monthly premiums, annual deductibles and prescription co-payments. The extra help could be worth up of $3,600 per year. 

To figure out whether your mother is eligible, Social Security needs to know her income and the value of her savings, investments and real estate (other than the home she lives in). To qualify for the extra help, she must be receiving Medicare and also have:

* Income limited to $15,600 for an individual or $21,000 for a married couple living together. Even if her annual income is higher, she still may be able to get some help with monthly premiums, annual deductibles and prescription co-payments. Some examples where income may be higher include if she or her spouse:
—Support other family members who live with them;
—Have earnings from work; or
—Live in Alaska or Hawaii; and
* Resources limited to $11,990 for an individual or $23,970 for a married couple living together. Resources include such things as bank accounts, stocks and bonds. We do not count her house and car as resources.

Social Security has an easy-to-use online application that you can help complete for your mom. You can find it at www.socialsecurity.gov. To apply by phone or have an application mailed to you, call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) and ask for the Application for Help with Medicare Prescription Drug Plan Costs (SSA-1020). Or go to the nearest Social Security office.

To learn more about the Medicare prescription drug plans and special enrollment periods, visit www.medicare.gov or call 1-800-MEDICARE (1-800-633-4227; TTY 1-877-486-2048). 

So this Mother’s Day, help your mom save up to $3,600 a year on her prescription drugs. Long after the candy and flowers are gone, the extra help through Social Security will keep on giving.



Social Security Column 3

GO GREEN BY GOING ONLINE
By Bob Simpson
Social Security District Manager in Traverse City


With Earth Day recently behind us, many people have stepped up their efforts to go green. And there are a number of things you can do, including planting a tree and recycling your plastic, glass and paper.

But what’s even better than recycling your paper is not having any paper to begin with.

Going green is yet another of the many reasons to complete your business transactions with Social Security online. You can complete all of your paperwork with a lot less paper.

Whether you want to apply for retirement benefits, request a replacement Medicare card, report a change of address or direct deposit if you are currently receiving benefits, or take charge of your retirement planning, you can do it on our website.

There’s no need to drive to your local Social Security office. Don’t wait in traffic when your Social Security business can be done from the comfort of your home or office Save a trip and go to www.socialsecurity.gov/onlineservices to get started.

Many of these services can be completed online without taking another step. Some services require you to mail in documents and information. Regardless, you’ll be ahead of the pack by using our online services.

You can rest assured that doing business with Social Security online is fast, easy and secure. And it is environmentally the cleanest, greenest way to do your Social Security business.

Many of our online services are available as automated phone services as well. Just call 1-800-772-1213 to take advantage of them. 

Earth Day is a great time to step up your efforts to go green, but you can go green any time during the year. Save a tree, save some gas and cut back on pollution by visiting us online instead of at an office. For more information, visit www.socialsecurity.gov or call us at 1-800-772-1213 (TTY 1-800-325-0778).


Social Security Column 4

SPRING CLEANING? DUST OFF YOUR FINANCIAL PLAN
By Bob Simpson
Social Security District Manager in Traverse City


Spring is in the air. And in many households, spring cleaning is a regular part of the season of renewal.

As you’re dusting your house and cleaning out the clutter, don’t forget another important matter deserving of your attention. Spring is a good time to dust off your financial plan, too.

The best way to renew your financial plan and to make sure you’re on your way to a comfortable retirement is to go to www.socialsecurity.gov and visit the retirement planners.

Experts agree, people who use financial planning tools, such as retirement calculators, usually end up better off financially than those who do not take advantage of such tools. 

Of course, the best place to begin any retirement calculation is by knowing what you may receive from Social Security ... and how much more you will need to enjoy a comfortable retirement.

Each year, every worker age 25 and older is mailed a Social Security Statement. Read it carefully because it is a roadmap to your personal financial future. It shows how much you and your family can expect to receive from Social Security when you retire, or if you become disabled or die. If you can’t find your last Statement you don’t have to wait for your next one. Just visit www.socialsecurity.gov/mystatement to ask for a new Statement to be mailed to you.

In addition, you should also visit Social Security’s financial planning website at www.socialsecurity.gov/planners. You can use the calculators there to test different retirement ages or different scenarios for future earnings amounts. And you can link to a non-Social Security worksheet that will help you decide how much you need to save and invest for retirement.

Most financial advisors say you will need about 70 to 80 percent of your pre-retirement earnings to comfortably maintain your pre-retirement standard of living. Under current law, if you have average earnings, your Social Security retirement benefits will replace only about 40 percent, so you will need to supplement your benefits with a pension, savings or investments. That’s why it’s a good idea to evaluate your financial plan for retirement now.

Once you’ve cleaned the house, get to work dusting off your financial plan. Spring is a time of renewal, so why not renew your retirement plans to make sure you’re on the right path? Make use of the financial planning tools available to you at www.socialsecurity.gov. 



Social Security Column 5

CELEBRATE DIRECT DEPOSIT 
By Bob Simpson
Social Security District Manager in Traverse City


May is National Direct Deposit Month, and Social Security would like to celebrate by encouraging all beneficiaries to get their payments the quick, convenient and safe way – by direct deposit.

To some people, direct deposit seems like a new way of doing things. But did you know direct deposit has been in use for more than 25 years, and it has a proven track record of success? That’s because it is so fast and convenient. Direct deposit eliminates the need to take a paper check to the bank. It also gets the funds into your bank account faster.

Millions of taxpayers use direct deposit so they can get their income tax returns faster. Even more get their benefit checks and paychecks by direct deposit. Earlier this year, the first baby boomer to receive Social Security benefits, Kathy Casey-Kirschling, chose to receive her payment by direct deposit too.

Are you on the fence about direct deposit? Consider this.

According to the National Automated Clearing House Association, once a direct deposit account is established, a payment can never be lost. Direct deposit gives you peace of mind. No matter where you are, your payment is in the bank. There’s no worry about stolen, lost or misdirected payments. 

Direct deposit is, hands down, the safest, quickest and most convenient way for people to receive their payments.

If you don’t already have direct deposit for your Social Security or Supplemental Security Income (SSI) benefits, it’s easy to sign up. For more information about direct deposit of Social Security benefits, go to www.socialsecurity.gov/deposit or visit www.Godirect.org. You can also call 1-800-772-1213 (TTY 1-800-325-0778).






Social Security Column 6

FARMERS: PLANT SEEDS FOR YOUR WORKERS’ RETIREMENT
By Bob Simpson
Social Security District Manager in Traverse City

Spring is here, and that means many farmers are sowing seeds and put their land to work. If you’re a farmer or grower who hires others to work on your land, there’s something you should know: you’re growing more than just your crops. By paying Social Security taxes on wages you pay your workers, you’re planting the seeds for their retirement funds.

Most farm workers are covered by Social Security. If you employ farm workers you must keep a record for each one, collect and pay Social Security taxes, and provide a pay statement and prepare a W-2 form. 

A common misconception many farmers and growers have is that farm workers are considered to be independent contractors and are therefore responsible for their own taxes. However, under the law, if they are working under a farm owner’s direction and control, they cannot be considered independent contractors. They are employees and their wages must be reported to Social Security. Some farmers hire “crew leaders” to manage their farm workers and to handle their entire wage–reporting responsibilities. In these cases, the crew leader is often considered the “employer” of the farm worker and has the responsibility for submitting wage reports. 

Whether a farmer or crew leader submits wage reports, we always stress the importance of recording the correct name, Social Security number and earnings for each employee. We tell all employers to make sure that they use the name and number exactly as it is shown on the worker’s Social Security card.

Of course, farm workers are often seasonal employees and may also be migrants. If a farm worker moves frequently and has trouble getting mail, you can give him or her a W-2 when the job ends, instead of waiting until January 31 of the next year. For more information, get IRS Publication 51, Circular A (Agricultural Employer’s Tax Guide). You can order IRS forms and publications by calling 1-800-Tax-Form (1-800-829-3676). 
If you need more information about agricultural work and Social Security, you can visit Social Security online at www.socialsecurity.gov and read the electronic pamphlet, A Guide for Farmers, Growers, and Crew Leaders. Or you can call Social Security’s toll-free number at 1-800-772-1213 (TTY 1-800-325-0778) and ask for a copy or copies of the pamphlet. This is a bilingual pamphlet that includes both English and Spanish.

So remember, when you sow the seeds of your crop, you’re growing more than what you’ll reap at harvest time. You’re planting the seeds for retirement funds that your employees will benefit from in the future. 
For more information about Social Security, visit our website at www.socialsecurity.gov. 

QUESTIONS AND ANSWERS

GENERAL

Question: 
Please help my wife and me settle a bet. She says Social Security numbers are based on where the card was issued. I say they’re issued consecutively. Who’s right? 
Answer: 

You both are, sort of. It’s a little more complicated than that. The nine-digit Social Security number is divided into three parts—
* Area: This is the first three digits in a Social Security number. If your Social Security number was assigned before 1972 when Social Security cards were issued by local offices, the area number reflects the state where you applied for your number. If your number was assigned in 1972 or later when we began issuing Social Security cards centrally, the first three digits reflect the state as determined by the ZIP code in the mailing address on your application for the number.
* Group: Within each area, the group number (middle two (2) digits) range from 01 to 99 but are not assigned in consecutive order. 
* Serial number: Within each group, the serial numbers (last four digits) run consecutively from 0001 through 9999. 

To learn more about Social Security or to find out how to apply for a Social Security card or number, visit our website at www.socialsecurity.gov or call us toll-free at 1-800-772-1213 (TTY 1-800-325-0778). 


Question:

My wallet was stolen with my Social Security card in it. How do I report my card stolen?

Answer:
We urge you never to carry your card with you. In most cases, the only time you will need to produce your card is when you apply for employment. Always keep your Social Security card in a safe place with your other important papers. You can apply for a replacement Social Security card if your card is stolen. You may also want to report it to the Federal Trade Commission at www.ftc.gov/bcp/edu/microsites/idtheft or 1-800-877-IDTHEFT (TTY 1-866-653-4261). And you may want to monitor your credit report at www.annualcreditreport.com. For more information about identity theft, visit our online fact sheet at www.socialsecurity.gov/pubs/10064.html or call us toll-free at 1-800-772-1213 (TTY 1-800-325-0778). 


RETIREMENT

Question: 

Someone told me that Social Security has tools to help with financial planning. Does it?
Answer: 
Yes. Social Security understands the need for all workers to do a better job of planning for their retirement. To help workers do this, Social Security created some very useful financial planning tools. 
About two to three months before your birthday, we will send you a Social Security Statement, as long as you are a worker age 25 or older and not already receiving benefits. The Statement lists your earnings and the amounts of Social Security taxes you have paid over the years. It also gives estimates of the Social Security benefits you (and dependent family members) may be eligible to receive now and in the future. The Statement is intended to help workers plan for their financial future. 
Another useful tool is Social Security's online retirement planner. It will let you compute estimates of your future Social Security retirement benefits. It also provides important information on factors affecting retirement benefits, such as military service, household earnings and federal employment. You can access our retirement planner at www.socialsecurity.gov/retire2. For more information, visit our website at www.socialsecurity.gov or call us toll-free at 1-800-772-1213 (TTY 1-800-325-0778). 

Question: 

How long does a person need to work to become eligible for retirement benefits?

Answer: 
 
Everyone born in 1929 or later needs 40 Social Security “credits” to be eligible for retirement benefits. You can earn up to four credits per year. So, you need at least 10 years to become eligible. During your working years, earnings covered by Social Security are posted to your record. You earn credits based on those earnings. Each year the amount of earnings needed for a credit rises as average earnings levels rise. In 2008, you receive one credit for each $1,050 of earnings, up to the maximum of four credits per year. You should keep in mind, though, that the amount of your Social Security benefit is determined by the level of your earnings over a 35-year period. For more information, visit our website at www.socialsecurity.gov or call us toll-free at 1-800-772-1213 (TTY 1-800-325-0778). 



DISABILITY

Question: 
 
I understand that to get Social Security disability benefits, my disability must be expected to last at least a year. Does this mean that I must wait a year after becoming disabled before I can receive benefits?

Answer: 

No. You do not have to wait a year after becoming disabled to receive disability benefits. You should apply for disability benefits as soon as you become disabled since it can take some time for a decision. The best way to apply is online at www.socialsecurity.gov/applyfordisability. If your application is approved, your first Social Security disability benefits will be paid for the sixth full month after the date your disability began. To be eligible, your disability has to be severe enough to prevent you from working, and be expected to last at least a year or end in death. For more information about Social Security, visit www.socialsecurity.gov or call us toll-free at 1-800-772-1213 (TTY 1-800-325-0778). 


Question: 
I am receiving disability benefits. I would really like to try working again. I understand Social Security’s Ticket to Work might let me go to work without endangering my benefits. What can you tell me about it?

Answer: 
Ticket to Work is a voluntary program that offers disabled Social Security and Supplemental Security Income (SSI) beneficiaries a variety of choices in obtaining the support and services they need to help them go to work and achieve their employment goals. If you receive Social Security Disability Insurance or SSI benefits based on disability or blindness and would like to work, this program can help you get vocational rehabilitation, training, job referrals, and other ongoing support and services to do so. For more information, visit our website at www.socialsecurity.gov/work or call us toll-free at 1-800-772-1213 (TTY 1-800-325-0778). 


SUPPLEMENTAL SECURITY INCOME

Question: 
 What is the difference between Social Security disability and SSI disability?

Answer:
The Social Security Administration is responsible for two major programs that provide benefits to people with disabilities. Social Security disability benefits are paid from the Social Security Trust Funds and are financed with Social Security taxes on earnings paid by workers, employers, and self-employed persons. To be eligible for Social Security, a person needs to work and earn credits by paying Social Security taxes on their earnings.  Supplemental Security Income (SSI) payments are made on the basis of financial need. SSI is a program financed through general revenues. To be eligible for SSI, applicants must have limited income and resources in addition to being aged, blind or disabled.  For more information, visit our website at www.socialsecurity.gov or call us toll-free at 1-800-772-1213 (TTY 1-800-325-0778). 

Question: 
Are Supplemental Security Income benefits taxable?

Answer:
No, Supplemental Security Income (SSI) payments are not subject to federal taxes, so you will not receive an annual form SSA-1099.  However, if you receive Social Security benefits they may be subject to income tax. For more information, visit our website at www.socialsecurity.gov or call us toll-free at 1-800-772-1213 (TTY 1-800-325-0778). 


MEDICARE

Question:
I heard that Social Security could help me save my mom up to $3,600 in prescription drug costs. How?

Answer:

Social Security offers extra help that could pay part of your mother’s monthly premiums, annual deductibles and prescription co-payments. The extra help is for people who are on the Medicare Prescription Drug Plan. To qualify for the extra help, she must be receiving Medicare and also have limited income ($15,600 for an individual or $21,000 for a married couple living together) and limited resources to $11,990 for an individual or $23,970 for a married couple living together). There are some exceptions to these limits. You can learn more at www.socialsecurity.gov. Or call Social Security at 1-800-772-1213 (TTY 1-800-325-0778) and ask for the Application for Help with Medicare Prescription Drug Plan Costs (SSA-1020). 




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