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Tag: social security administration

  • Retirement Planning “Toolkit” Outlines Optimal Strategies

    Baby Boomers are beginning to retire, and that means huge shifts coming to the American economy. The exodus of older workers from the labor market could ease employment troubles for younger workers looking to break into their field, but the millions of workers set to retire over the next decades could also mean big costs for companies and the U.S. as pension systems pay out and the government picks up the slack for those who haven’t retired responsibly.

    Seeing the coming wave of retirees, the U.S. government has released a retirement “toolkit” meant to help prospective retirees cover their expenses after they cease working. The U.S. Department of Labor, U.S. Social Security Administration, and the Centers for Medicare & Medicaid Services threw together the document to help aging workers wade through the convoluted rules and regulations surrounding their retirement funds.

    The main portion of the document is aimed at those over 50. The toolkit provides a timeline showing when certain retirement events can take place without incurring penalties.

    The timeline shows that at age 50 workers can begin making “catch-up” contributions to their pension plans. Six months before age 60 employees can begin to withdraw funds from their individual plans without penalties. Age 62 is the earliest age at which workers can draw on their Social Security benefits, though drawing that early will cause monthly benefits to be significantly reduced. Medicare and Medicare Part D are available for workers and retirees starting at age 65. Age 70 is, more or less, the deadline for being retired. At that age most retirement savings plans require at least minimum withdrawals or else charge penalty fees.

    For workers who can’t even think of retiring yet, the toolkit still has a few suggestions. The document warns workers not to touch their personal retirement savings plans until at least six months before they turn 60, lest they pay tax penalties and lose interest. It also advises that waiting until after full retirement age (66 for those born between 1943 and 1954, 67 for those born between 1955 and 1959) to pull Social Security benefits can increase monthly benefits by around eight percent for every year waited.

    Image via the U.S. Department of Labor

  • Social Security Administration Overpayments Reach $1.3 Billion

    A new study recently released by the US Government Accountability Office (GAO) claims that the Social Security Administration has paid an estimated $1.3 billion in disability insurance benefits to thousands of people who might not have been eligible to receive them.

    The GAO estimates that 36,000 workers received improper disability payments between December 2010 and January 2013.

    According to the study findings, the overpayments may have happened for one of two reasons.

    First, to become eligible for disability insurance payments, potential recipients must go through a five month waiting period designed to insure that their disability is truly long-term. During this time, their earnings must not exceed $1,000 during any given month. The GAO study indicates that many who were receiving disability benefits had income that exceeded this limit.

    Second, once a disabled worker qualifies for benefits, they can take advantage of a trial work period that allows them to return to work for up to nine months while still receiving disability benefits. The GAO study found that many were receiving benefits long after the nine month trial period had ended.

    The Social Security Administration insists that its accuracy rate for making disability payments is 99%. But a spokesperson acknowledged that “even small errors cost taxpayers” and promised that not only would the agency investigate the matter, but it would take efforts to recoup erroneously-made payments from beneficiaries.

    The GAO report sparked controversy at a time when the long-term viability of the Social Security Administration, and specifically its disability program, has been questioned. Earlier this year, a government study estimated that the government disability trust fund will run dry by the year 2016. The government could divert funds from the retirement system, but since the social security fund is estimated to face insolvency by 2033 – three years earlier than prior estimates – that fix isn’t overly attractive to analysts or taxpayers.

    Often referred to as the “congressional watchdog,” the GAO is an independent and nonpartisan arm of Congress charged with monitoring and investigating how the federal government spends tax dollars. It is headed by the President-appointed Comptroller General of the United States.

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  • Fastest-Growing Baby Name is ‘Game of Thrones’-Inspired

    The U.S. Social Security administration (SSA) this month released its yearly lists of the most popular baby names in America. Though some mainstays dominated the lists, a few surprises are making their way from popular culture to hospital nurseries.

    Perhaps the biggest surprise is the fastest-growing name for females. Fantasy fans who thought themselves original may be displeased to learn that Arya has jumped from the 711th most popular female name in 2011 to the 413th in 2012. The name is a reference to Arya Stark, a favorite character of many readers of George R.R. Martin’s A Song of Ice and Fire series, on which the hit HBO TV show Game of Thrones is based.

    The fastest-rising male name for 2012 was Major, which the SSA attributes to its military association.

    “I have no doubt Major’s rising popularity as a boy’s name is in tribute to the brave members of the U.S. military, and maybe we’ll see more boys named General in the future,” said Carolyn Colvin, acting commissioner of the SSA.

    As for the names that are most popular, Jacob has retained its first place status on the male list, where it has been for 14 years in a row (since 1999). Sophia has topped the girls list for the second year in a row. The names Elizabeth and Liam have popped into the top 10, pushing out Chloe and Daniel.

    The top 10 male names, in order, are: Jacob, Mason, Ethan, Noah, William, Liam, Jayden, Michael, Alexander, and Aiden. The top female names are: Sophia, Emma, Isabella, Olivia, Ava, Emily, Abigail, Mia, Madison, and Elizabeth.

  • No Internet Snooping for Claims, Says Social Security Office

    A decree by the Social Security Administration has put the internet off-limits for disability-claims judges when ruling on cases. And by internet, Social Security means The Internet – all of it, most notably websites where people tend to share personal information, like Facebook or Google+.

    According to the Washington Times, the decision rankled with some politicians, namely Sen. Tom Coburn (R-OK), who responded by penning a letter that implores the agency to permit claims reviewers access to public information that people share on the internet. From the letter,

    If an individual claims to be disabled, and then publicly posts a picture participating in a sport or physical activity on a social media website, such information should be used by [adjudicators] to determine if the claimant was truly disabled.

    The decision to ban the internet as a source of investigating a fraud appears to stem from the agency’s desire to ensure that different government bodies don’t overstep their bounds or encroach into the jurisdiction of other investigators. Social Security has said that it’s not against using information picked up from the internet to demonstrate cases of fraud, but that such an activity should be left to the fraud investigators and not the judges.

    “Adjudicators should do what they are trained to do — review voluminous files to determine eligibility for disability benefits,” said a spokesperson with Social Security. “Office of Inspector General fraud investigators should do what they are trained to do — vigorously follow up on any evidence of fraud.”

    A similar claims case happened recently up in British Columbia, Canada, where a woman’s Facebook photos have been ordered to be disclosed as evidence in her lawsuit for her damages claim.

    The Social Security office’s decision to prohibit judges from basing their rulings on evidence collected from the internet will most likely ruffle the feathers of some judges.

    Do you agree with the Social Security Administration’s decision to prohibit judges, and thereby leaving investigations to the Inspector General, from considering stuff like Facebook pages and tweets when making a ruling on disability claims? Let us know down below.