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Social Security deductions (FICA and Medicare) are made from your paycheck.
These taxes, plus an equal amount contributed by the College, are sent to the
Social Security Administration to help provide for your retirement. The Federal
Government administers the Social Security program to help employees prepare
for their retirement years. Any Social Security benefit you receive is in addition
to your benefits from PERF, AUL or TIAA/CREF.
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Eligibility
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Your eligibility for Social Security benefits
depends on how long you have been employed at jobs in which you paid FICA
taxes-in other words, how much time you have spent in positions "covered"
by Social Security deductions. In general, if you have 40 "quarters" of
coverage, you are considered to be fully insured and may be entitled to
receive a partial benefit as early as age 62. You can earn up to four quarters
of coverage every year, up to a maximum of 40 quarters. You earn a quarter
of coverage by earning a stated amount of wages covered by Social Security
deductions. This amount is adjusted by the Social Security Administration
to reflect increases in national wages. |
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Earnings Record
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There is a limit on the amount of your salary
that the Social Security Administration may tax each year. This means that
there is a maximum amount that you can contribute through FICA taxes. Your
benefit depends on how much money you earned which was taxed by Social Security.
This amount is known as your earnings record. Your earnings record determines
the amounts of the various benefits you can receive. |
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Retirement
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Because of longer life expectations, the Social Security law was changed
to increase the full retirement age in gradual steps until it reaches
age 67. This change affects people born in 1938 and later. It is possible,
however, for you to begin receiving a reduced benefit at age 62, depending
on your circumstances. Monthly benefits received at age 62 would be lower
than those given at the age of full retirement to allow for the extra
years of payment. You can also postpone the start of your benefits until
age 70. In this case, your monthly benefits would be greater, since payments
will be distributed over a shorter period of time than they would have
been if you had retired at the age of full retirement for you.
The chart below shows the age at which you may receive full Social Security
benefits, depending upon the year in which you were born.
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Year of Birth
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Full Retirement Age
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1937 or earlier
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65
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1938
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65 and 2 months
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1939
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65 and 4 months
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1940
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65 and 6 months
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1941
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65 and 8 months
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1942
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65 and 10 months
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1943-1954
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66
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1955
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66 and 2 months
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1956
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66 and 4 months
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1957
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66 and 6 months
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1958
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66 and 8 months
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1959
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66 and 10 months
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1960 and later
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67
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Other Social Security Benefits
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In addition to the benefits you receive from
Social Security, there are certain benefits available for eligible dependents.
If you are age 65 or over and are receiving benefits, your spouse may be
eligible for his or her own benefit, based on a percentage of your payment.
Your unmarried, dependent children and certain adult, disabled children
may also be entitled to certain benefits based on your Social Security earnings.
There are also benefits available in the event of your death or disability.
Eligibility for these additional benefits may depend on your age and quarters
of coverage. |
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Applying for Benefits
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The Social Security Administration recommends
that you apply for benefits three months prior to your retirement. This
gives the government time to process your application. A nice feature of
your Social Security benefit is that you may ask that your monthly check
be deposited directly into your bank account. This is a secure and simple
way to receive your money. |
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| This is just a brief outline of some aspects of your Social
Security benefit. Available benefits and required quarters can vary greatly,
depending on your age, the ages of your dependents, your periods of employment
and your earnings record. For more information, you may contact the Social
Security Administration at 800-772-1213 or online at www.ssa.gov. |
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1-888-IVY-LINE