The Social Security Statement The Statement provides you

The Social Security Statement The Statement provides you with estimates of monthly Social Security retirement, disability and survivors benefits The Statement provides earnings for you to check for accuracy

The Social Security Statement

How Do You Qualify for Retirement Benefits? Each $1, 050 in earnings gives you one credit You can earn a maximum of 4 credits per year Example: To earn 4 credits in 2008, you must earn at least $4, 200. Earning 40 credits (10 years of work) throughout your working life will qualify you for a retirement benefit.

How Social Security Determines Your Benefit Social Security benefits are based on earnings Step 1 – Your wages are adjusted for inflation Step 2 – Find the average of your 35 highest earnings years Step 3 – Result is “average indexed monthly earnings”

Full Retirement Age Year of Birth Full Retirement Age 1937 1938 1939 1940 1941 1942 1943 – 1954 1955 1956 1957 1958 1959 1960 & later 65 65 & 2 months 65 & 4 months 65 & 6 months 65 & 8 months 65 & 10 months 66 66 & 2 months 66 & 4 months 66 & 6 months 66 & 8 months 66 & 10 months 67

Deciding When To Retire If You’re A Worker and Retire: As early as age 62, (benefit will be permanently reduced) At Full Retirement Age (FRA) (no benefit reduction— 100%) Delayed retirement (benefit increased by 8% per year between FRA and age 70)

Your Family Can Receive Benefits Your Spouse At age 62 or older At any age if caring for child under 16 or disabled Divorced spouses may qualify Your Child Not married under 18 (under 19 if still in high school) Not married and disabled before age 22

Ready to Retire? Option 1

Ready to Retire? Option 2 Call Social Security toll-free at 1 -800 -772 -1213 to ask for an appointment with a Social Security representative If you are deaf or hard of hearing, you may call our TTY number TTY 1 -800 -325 -7778

What Will You Need When Applying for Your Social Security Benefits?

You Can Work & Still Receive Benefits If You Are Under full retirement age You Can Make Up to $13, 560/yr. ($1, 130/mo. ) Reaching full retirement age this year $36, 120/yr. ($3, 010/mo. ) Full retirement age & above No Limit If You Make More, Some Benefits Will Be Withheld $1 for every $2 $1 for every $3

What Income Counts Towards the Earnings Test Limits Income that Counts as Earnings Gross wages from employment and/or net earnings from self employment Income that Does NOT Count as Earnings Inheritance payments Interest and dividends Pensions Capital gains Income from investments Other sources

Your Benefits May Be Taxable • Determine Modified Adjusted Gross Income -- All taxable income plus 1/2 of Social Security benefit received • Individual Tax Return -- $24, 999 or less - no Federal tax on Social Security benefit -- $25, 000 - $34, 000 - pay Federal tax on 50% of Social Security benefit -- More than $34, 000 - pay Federal tax up to 85% of Social Security benefit For more information, call IRS toll free: 1 -800 -829 -3676

Your Benefits May Be Taxable • Couple, Married Filing Joint Tax Return -- $31, 999 or less - no Federal tax -- $32, 000 - $44, 000 - pay Federal tax on 50% of Social Security benefit -- $More than 44, 000 - pay Federal tax up to 85% of Social Security benefit For more information, call IRS toll free: 1 -800 -829 -3676

It also provides valuable disability and survivors benefits.

Who Can Get Survivors Benefits? Widow or Widower: Reduced benefits at age 60 If disabled as early as age 50 At any age if caring for child under 16 or disabled Divorced widows/widowers may qualify If Your Child Is: Not married under age 18 (under 19 if still in high school) Not married and disabled before age 22

Other Survivors Benefits Parents Age 62 and was receiving at least one-half support from deceased worker Lump Sum Death Payment ($255) Most spouses or children

Social Security’s Disability Definition: A medical condition preventing substantial work for at least 12 months, or expected to result in death. The determination also considers age, education & work experience.

Who Can Get Disability Benefits? Worker Must have paid into Social Security five out of last 10 years Spouse At Age 62 or older At any age if caring for child under 16 or disabled Divorced spouses may qualify

Who Can Get Disability Benefits? Child Not married under 18 (under 19 if still in high school) Not married and disabled before age 22

Who Can Get Medicare? Age 65 & older OR Receiving Social Security disability benefits for 24 consecutive months OR Permanent Kidney Failure OR Lou Gehrig’s disease (ALS)

When Should You Sign Up for Medicare? Medicare Enrollment Periods: § Initial - at age 65 § Special - if still working § General - January-March

Medicare Coverage Part A Hospital Insurance § Covers most inpatient hospital expenses 2008 Deductible $1, 024 Part B Supplementary Medical Insurance § Covers 80% doctor bills & other outpatient medical expenses after 1 st $135 in approved charges 2008 Monthly Premium $96. 40* Part D Medicare Prescription Drug Plan § Covers a major portion of prescription drug costs for Medicare beneficiaries 2008 average Monthly Premium $25

Adjusted Medicare Part B Premiums in 2008 Medicare beneficiaries with income greater than $82, 000 ($164, 000/couple) Part B Premiums in 2008 will be calculated on a sliding scale based on the modified adjusted gross income reported on IRS tax returns Under $82, 000 ($164, 000/couple): $82, 000 -$102, 000 ($164, 000 -$204, 000/couple): $102, 000 -$153, 000 ($204, 000 -$306, 000/couple): $153, 000 -$205, 000 ($306, 000 -$410, 000/couple): Over $205, 000 ($410, 000/couple): Part B premium $96. 40 Part B premium $122. 20 Part B premium $160. 90 Part B premium $199. 70 Part B premium $238. 40

Adjusted Medicare Part B Premiums in 2008 §Automated data from IRS used to calculate premium §Income from 2 years prior used to compute premium (e. g. , adjusted gross income for 2006 used to calculate 2008 premium) §Appeals available if income has changed due to divorce, death of a spouse, retirement, natural disaster, etc.

Part D Medicare Prescription Drug Plan §Must have Medicare Part A or Part B §Enrollment is voluntary § Premiums vary State-by-State § In 2008, you pay the first $275 in drug costs (called a deductible) § Extra help is available through Social Security for low-income beneficiaries to meet premium, deductible & co-payment costs of program

For More Information 1 -800 -MEDICARE www. medicare. gov

Social Security’s Online Services Retirement, Disability & Spouse’s Applications Retirement/Disability/Survivors Planners Benefit Calculators Request a Replacement Medicare Card Request a Social Security Statement Request a Benefit Verification Letter Change of Address

www. socialsecurity. gov

Retirement Planner

Benefit Calculators

www. socialsecurity. gov/applyforbenefits

Visit Our Website or Call! www. socialsecurity. gov -or- 1 -800 -772 -1213 TTY 1 -800 -325 -0778