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Posts Tagged ‘Social Security Income’

Social Security Disability Insurance and Social Security Solvency

Wednesday, March 16th, 2011

According to US News Money Blog, both political parties plan to include Social Security in their deficit reduction proposals. It is inevitable that the program will face budget cuts and reform. Social Security is funded by payroll taxes, paid equally by employees and employers. The payroll 6.2 percent tax supports Old-Age, Survivors, and Social Security Disability Insurance.

The legislature raised payroll taxes in 1980s, as part of program reform, which allowed for big surpluses to accrue. By law, the SSA must place its surpluses in a U.S. Treasury fund, and the interest on those securities is added to Social Security revenue. The program also receives some credits from the tax revenues that the IRS receives from income taxes on Social Security benefit payments.

According to a detailed annual report on the program’s 2010 finances, Social Security will have enough surplus to pay all claims in full until 2037. After that, it will have enough to cover only 79 percent of its obligations for retirement and disability benefits.

The Social Security program is not broke, according to 2010 and 2011 program expenses it will exceed the amount of payroll taxes taken in. The accumulated surplus is projected to rise from $2.64 billion to $3.77 billion by 2019 and will continue to rise until 2025. The impact of retiring baby boomers is expected to exhaust all surpluses by the year 2037.

Many policy makers have developed proposals to address Social Security’s solvency problem. Whatever our legislators’ final decision on Social Security may be, it is important to find a way to continue paying disabled individuals Social Security Disability Insurance and Supplemental Security Income benefits.

Alzheimer’s and Social Security Disability Insurance

Tuesday, March 15th, 2011

According to the Asbury Park Press, early Alzheimer’s falls under the prospect of Social Security Administration’s Compassionate Allowances. Compassionate Allowances is the federal government’s way to quickly provide Social Security Disability Insurance and Supplemental Security Income for medical conditions that are extremely serious and their conditions meet an obvious disability. The specialized purview is an obligation to qualify individuals under the Listing of Impairments based on minimal objective medical information that can be obtained quickly.

If your spouse is diagnosed with early-onset Alzheimer’s disease, you should file for Social Security disability insurance benefits, including filling out the Adult Disability Report. The disability application starts your spouse’s claim for benefits, while the disability report provides the Social Security Administration with your spouse’s current condition. Claims that fall under Compassionate Allowances conditions are expedited and processed sometimes in a matter of days rather than months and years other disability claims can take.

Some of the other medical conditions included in the Compassionate Allowances list include Acute Leukemia, Bone Cancer with distant metastases or if inoperable, Esophageal Cancer, Gallbladder Cancer and Pancreatic Cancer.

Social Security Disability Insurance benefits are paid to qualified individuals who have worked for enough years and have a debilitating condition such as Alzheimer’s that will keep them out of the workforce forever. The SSA pays out SSDI benefits monthly and serves as entry to Medicare benefits for those under the age of 65.

Supplemental Security Income benefits are paid monthly to qualified individuals who are aged, blind, disabled or have limited income and resources. SSI benefits are not based on prior work experiences and individuals with Alzheimer’s can receive both SSI and SSDI benefits.

Help With Social Security Claim Process

Monday, March 14th, 2011

According to the Social Security Administration, 9 out of 10 claimants have legal representation by the time they reach their first Social Security disability hearing. SSDI is a long and difficult process, taking sometimes more than a year before a claimant reaches their first hearing. The SSA allows anyone to represent a claimant, including those without a legal background. However, problems may arise when the claimant has legal questions that cannot be answered by a representative without a legal background.

When is it time for you to hire a Social Security disability attorney? Ideally, an attorney would like to represent you in your Social Security Disability Insurance claim from the initial application. The big benefit in having an attorney help you file is that he or she will make sure that all paperwork is filled out correctly. The Social Security Administration reports that many applicants experience unnecessary delays due to errors in paperwork or denial based on errors on initial claims. An attorney fills out the paperwork and submits supporting evidence to show that you are indeed disabled and qualify for Social Security Disability Insurance benefits.

Some claimants run into problems when the Social Security Administration denies their initial application for Social Security disability benefits. The news is tough to handle, but a representative can answer questions and take the next appropriate step. For example, you would not re-apply after your application has been denied. Instead, you would take the appropriate step to file for reconsideration, also called an appeal. A request for a hearing is submitted if your claim for reconsideration is denied.

Social Security Program Misconceptions

Friday, March 11th, 2011

According to Business Insider, the Social Security program is not the only cause of America’s budget problems, but it is a big reason of why it is so hard to fix them. The program accounts for about 20 percent of all federal spending and within a few decades will count almost a third of our population as its beneficiaries. Several misconceptions came up recently with the recent talk of government budget cuts.

The Social Security program did not create the deficit, from 1983 until last year, its revenues lowered the Treasury’s need to borrow in the public markets with the help of the excess payroll taxes collected for the retirement system. However, the surplus years are over. In 2010, payroll taxes fell short, largely due to the recession and high unemployment rates. As baby boomers begin to retire, there will be less surplus and more of a need to pay out.

The Social Security Administration’s website calls the benefits “earned credits” and sometimes refers to payroll taxes as contributions. However, the Social Security trust fund is not a private pension found, no one ever vests in Social Security and they never own their benefits until they cash the check out.

The Social Security fund which collects all the surplus payroll taxes collected from working Americans, is large enough that the program does not need to ask for money until 2037. If there is no program changes, the trust fund will run dry.