Social Security File #3

CHART A: NORMAL RETIREMENT AGE (NRA) FOR THOSE BORN AFTER
JANUARY 1, 1938

Your NRA depends on your date of birth. It is the age at which unreduced benefits
are payable to a retiree, a spouse, or a widow(er). This chart shows the NRA that
applies to all dates of birth.

YOUR YOUR NRA
DATE OF BIRTH YEARS MONTHS

THROUGH 01/01/38 65 0
01/02/38-01/01/39 65 2
01/02/39-01/01/40 65 4
01/02/40-01/01/41 65 6
01/02/41-01/01/42 65 8
01/02/42-01/01/43 65 10
01/02/43-01/01/55 66 0
01/02/55-01/01/56 66 2
01/02/56-01/01/57 66 4
01/02/57-01/01/58 66 6
01/02/58-01/01/59 66 8
01/02/59-01/01/60 66 10
01/02/60 & LATER 67 0

CHART B: BENEFIT REDUCTION PERCENTAGES

Benefits to retirees, spouses and widow(er)s are reduced for each month a benefit is
payable before normal retirement age (NRA). Approximate percentages payable at
certain ages are shown for NRA's of 65, 66 and 67. Figures given are rounded to
the nearest whole number except for the widow's and widower's age-60 percentage.

RETIREMENT BENEFITS (percentages)
AGE NRA=65 NRA=66 NRA=67
62 80 75 70
63 87 82 77
64 93 88 83
65 100 95 90
66 --- 100 95
67 --- --- 100

SPOUSE'S BENEFITS
AGE NRA=65 NRA=66 NRA=67

62 75 70 65
63 83 78 73
64 92 87 82
65 100 95 90
66 --- 100 95
67 --- --- 100

WIDOW'S & WIDOWER'S BENEFITS

AGE NRA=65 NRA=66 NRA=67
60 71.5 71.5 71.5
61 77 76 76
62 83 81 80
63 89 86 84
64 94 90 88
65 100 95 92
66 --- 100 96
67 --- --- 100

CHART C: DELAYED RETIREMENT CREDITS (DRCs)

DRCs are added to your retirement benefit if you do not draw some benefit checks
after your normal retirement age. The percentage added depends on your date of
birth. The following chart lists the amounts available per month and year. The last
month a DRC is available for those born after 01/01/1917 is the month before
becoming age 70.

% ADDED % ADDED
DATE OF BIRTH PER MONTH PER YEAR

Prior to 01/02/17 1/12 of 1% 1.0
01/02/17-01/01/25 1/4 of 1% 3.0
01/02/25-01/01/27 7/24 of 1% 3.5
01/02/27-01/01/29 1/3 of 1% 4.0
01/02/29-01/01/31 3/8 of 1% 4.5
01/02/31-01/01/33 5/12 of 1% 5.0
01/02/33-01/01/35 11/24 of 1% 5.5
01/02/35-01/01/37 1/2 of 1% 6.0
01/02/37-01/01/39 13/24 of 1% 6.5
01/02/39-01/01/41 7/12 of 1% 7.0
01/02/41-01/01/43 5/8 of 1% 7.5
01/02/43 & Later 2/3 of 1% 8.0

CHART D
EARNINGS NEEDED FOR WORK CREDITS (WCs), 1951-1991

Workers earn up to 4 work credits per year. Through 1977, workers earned 1 WC
for each calendar quarter in which they had wages of at least $50.00. Self-
employed workers received 4 WCs in any year in which they had a net profit of at
least $400.00. Starting with 1978, WCs are earned according to total annual
earnings as follows:

AMOUNT NEEDED TO EARN
YEAR 1 WC 4 WC's

1978 250 1000
1979 260 1040
1980 290 1160
1981 310 1240
1982 340 1360
1983 370 1480
1984 390 1560
1985 410 1640
1986 440 1760
1987 460 1840
1988 470 1880
1989 500 2000
1990 520 2240
1991 540 2480

APPENDIX 1
THE ANNUAL EARNINGS TEST

This test applies to every person entitled to non-disability SS benefits up to age 70.
Each year SSA sets a limit on the amount beneficiaries may earn and still draw all
benefits for the year. The limit increases each year. If earnings exceed the
applicable limits, SSA withholds some or all benefits due for the year.

There are two earnings limits that apply each year: one for those who are under
Normal Retirement Age during the entire year and a higher limit for those who will
reach NRA during the year. For the year 1991, SSA set limits of $7080.00 for those
under their NRA and $9720.00 for those age 65 through 69. Currently, there is no
earnings limit for those of us who have attained age 70.

In the first year that you draw benefits, regardless of how much your total earnings
are for the calendar year, you can draw a check for any month in which you earn
less than 1/12 of the annual limit that applies to you. In every other year, this
monthly test does not apply.

If you are under NRA the entire year, SSA will withhold $1.00 of your benefits for
every $2.00 your earn over the limit. If you will reach NRA during the year, SSA will
withhold $1.00 of benefits for every $3.00 you earn over the limit.

Partial benefits are available if the total benefits to be withheld are less than the total
benefits due during the year.

EXAMPLE: It's 1991. You started drawing retirement benefits in 1990 at age 62. You
are now 63 and your SS benefit is $680.00 per month. You went back to work in
January and 1991 earnings will total $20,000. Here's what you are due for 1991:

TOTAL BENEFITS AVAILABLE BENEFITS TO BE WITHHELD
$680.00 X 12 = $8,160 $20,000 - $7020 = $12,980
$12,980 x 1/2 = $ 6,490
NET BENEFITS PAYABLE
$8,160 - $6,490 = $1,670

MEDICARE COVERED AND NON-COVERED SERVICES

Medicare will cover a portion of all medically necessary services received by
an insured. Here is just a sample of what each part of Medicare will cover,
followed by an example of how much Medicare should pay toward a fairly typical
large medical bill.

HOSPITAL INSURANCE (PART A)

Inpatient Hospital Care

Semiprivate room and meals
Nursing care
Operating and recovery rooms
Intensive care

Skilled Nursing Facility Care

Skilled nursing and rehabilitative services in a Medicare-approved facility

Home Health Care Visits

Skilled nursing care
Physical therapy
Speech therapy

Hospice care

Doctors' and nurses' services
Medical supplies
Therapies

MEDICAL INSURANCE (PART B)

Doctors' Services

Surgical procedures

Diagnostic tests

Nurses' services

Outpatient hospital care

Emergency room care

Outpatient clinic care

Home health visits

If you do not have Medicare hospital insurance

Other medical and health services

Ambulance

Home dialysis supplies

Xrays

Radiation treatments


COMPUTATION OF THE SPOUSE'S BENEFIT

The spouse's benefit is based on ½ the worker's own unreduced benefit. If you
are entitled to your own retirement benefit, you may get a spouse's benefit only if
your own unreduced benefit amount is less than ½ of your spouse's own
unreduced benefit.

Here's an example:

You are 62 and entitled to a retirement benefits of $240 per month based on an
unreduced benefit of $300. Your spouse's own unreduced benefit is $750.
Here's how your benefit as a spouse will be figured.

Your spouse's unreduced benefit $750
x .5
½ your spouse's unreduced benefit $375

Less your unreduced benefit $300
Remainder $ 75
x.75
At 62, you get 75% $ 56

Plus your own retirement benefit $240

YOUR TOTAL BENEFIT $296

YOU CAN RECEIVE THE FOLLOWING INFORMATION FROM SOCIAL
SECURITY FILE #1:

Terms You Need To Know
How Social Security Works
The Retirement Benefit
The Disability Benefit
Spouses' and Ex-Spouses' Benefits
Children's Benefits

YOU CAN RECEIVE THE FOLLOWING INFORMATION FROM SOCIAL
SECURITY FILE #2:

Surviving Spouses' and Ex-Spouses' Benefits
Medicare Benefits
Miscellaneous
What To Expect When You File
Final Tips

Or, by using your VISA, MASTERCARD, AMERICAN EXPRESS, OR DISCOVER
card, you can purchase the Social Security Video and Manual by visiting our
Resource Library.

You must remember: Because each situation is different, my programs are not
intended as the final word about Social Security programs or what you might be
entitled to receive. The information contained in these files is accurate, but it is not
official. This program is neither sponsored by nor endorsed by the Social Security
Administration or any other Federal agency.

All rights reserved. Produced in the United States of America. This file is sold as,
without warranty of any kind, either express or implied. No part of this publication
may be reproduced, in whole, in part, in any form, or by any means without express
written permission. Making copies of this publication for any purpose is prohibited.

A FINAL REMINDER.......

This material was designed to help you learn the basics of Social Security so you
will know the questions to ask and some of the answers you should expect. With
this information, you should be as informed as anyone about the basics of the
system. Since every situation is different, always ask your local Social Security
representative about up-to-date changes that might affect you.

This information is not endorsed by the Social Security Administration or any
other agency of the United States Government.

© 1991 by Jan L. Warner
Post Office Box 11704
Columbia, South Carolina 29211