kathleensindell.com

Test Your Knowledge of Social Security with this Quiz

Take the following quiz to check how much you remember of the most important Social Security News stories of 2014. See how high your score is by comparing your responses to the answers at the bottom of this post.

1. On October 23, 2013 the Wall Street Journal (www.wsj.com) stated that according to Alicia Munnell of Boston College’s Center for Retirement Research, Social Security for individuals who in delay applying for benefits receive “Delayed Retirement Credits” called DRCs.  In general, DRCs bump a “baby boomer’s” Full Retirement Age (FRA) benefit up by:
A. 8 percent from FRA to 70 (That is, a total of 8 percent for the four-year period.)
B. 8 percent per year
C. 8 percent per month
D. 8 percent from early retirement to FRA age

2. The Defense of Marriage Act (DOMA) was enacted on September 21, 1996 and is a U.S. Federal law that allows states to refuse to recognize same-sex marriages. In 2013 the Supreme Court repealed Section Three of DOMA which, among other things, allowed legally married same-sex couples to claim Social Security benefits. The San Francisco Chronicle (www.sfchronicle.com) on June 26, 2013 reported that the Williams Institute, a think tank at the University of California, Los Angeles, School of Law estimated at the time of repeal there were the following number of married same-sex couples in the United States:
A. 1,140,000 married same-sex couples
B. 114,000 married same-sex couples
C. 11,400 married same-sex couples
D. There were no legally married same-sex couples

3. Each year the Trustees of Social Security and Medicare issue a report on the current and future financial status of the two programs. On May 31, 2013 and after the 2013 Social Security Trustees Annual Report was released Romina Bocccia and Rachel Grezler reported the following on the Heritage Foundation Web site (www.heritagefoundation.org). Which of the following is true?
A. In the past Social Security surpluses were spent by the Federal government.
B. Social Security had a cash flow deficit of $55 billion in 2012.
C. If no action is taken before 2033 Social Security benefits will be reduced by 23 percent.
D. All of the above are correct

4. The Wall Street Journal (www.wsj.com) in November, 2013 reported that according to Michel Kitces, CFP delaying applying for Social Security benefits will have the following affect(s):
A. Protects against unanticipated longevity
B. Is a great “hedge” against inflation
C. Dampens the effects of mediocre market performance
D. All of the above

5. In October 2013 the Wall Street Journal (www.wsj.com) published a Social Security Administration announcement that Social Security recipients will receive a cost-of-living (COLA) increase beginning in January 2014. Which of the following is the correct amount of the COLA increase?
A. 1.0 percent
B. 1.25 percent
C. 1.50 percent
D. 1.75 percent

ANSWERS: 1(B), 2(B), 3(D), 4(D), 5(C)

Will You be One of the Many People Who Begin Social Security Benefits in 2014?

Individuals born between 1943 and 1954 reach Full-Retirement Age (FRA) at 66. In 2013 individuals born in 1951 became qualified for early retirement at age 62. The 2013 maximum payment for individuals who retire at FRA is $2,533 per month. The Social Security retirement benefit maximum payment amount will increase to $2,642 for 2014.

Today 57 million workers receive Social Security benefits. More individuals will begin benefits in 2014. The Social Security Administration located at www.ssa.gov provides the following answers to questions you may have about your new or re-newed Social Security benefits.

When can You Expect to Receive Monthly Benefits?
Generally, the day of the month you receive your benefit payment depends on the birth date of the person on whose earnings record you receive benefits. For example, if you get benefits as a retired worker, your benefit will be determined by your birth date. If you receive benefits based on your spouse’s work, your benefit payment date will be determined by your spouse’s birth date.

• If the birth date is the 1st – 10th, you will be paid on the second Wednesday of each month
• If the birth date is the 11th – 20th, you will be paid on the third Wednesday of each month
• If the birth date is on the 21st – 31st, you will be paid on the fourth Wednesday of each month

Changes in your Marital Status can Affect Your Benefits
If you get married or divorced, your Social Security benefits may be affected, depending on the kind of benefits you receive. For example, your benefits may have stopped because of marriage or remarriage, or they may start again if the marriage ends. The following shows a few examples.

• If you get your own benefits Your benefits will continue
• If you get your spouse’s benefits Your benefits will continue if you get divorced and you are age 62 or older unless you were married less than 10 years.
• If you get widow’s or widower’s benefits Your benefits will continue if you remarry when you are age 60 or older.
• If you get any other kind of benefits Generally, your benefits will stop when you get married. Your benefits may be started again if the marriage ends