Topic 1 - January 7, 2007 I. Background - Key terms,...

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January 7, 2007 I. Background - Key terms, acronyms, and abbreviations Aim of this presentation is to introduce the core vocabulary of social security 1. Insured Status a. Social security, initially OAI, then OASI, and eventually OASDI, has been constructed within a social insurance framework. i. To be eligible for social security benefits, either the benefit claimant or a relevant family member must be insured. ii. Insured status is acquired by covered employment over a period of years. iii. Different benefit categories require different types of insured status. iv. Each rest on quarters of coverage (QC) calendar quarters 1. QC are gained by minimum levels of employment over time. b. Types of work covered have been expanded to the point that most but not all work in the U.S. and work abroad by U.S. citizens abroad is covered so long as earnings exceed the threshold. c. Since the late 70s the number of QC credited for a year, not exceeding 4, have been determined by total annual earnings regardless of when earned. d. This central eligibility unit (QC) is quite low so that modest earnings result in coverage. e. QC are used to determine whether the beneficiary or critical family member has the requisite insured status. i. May require fully insured status, currently insured status, or insured status for disability benefits. f. Fully Insured Status i. Agency sometimes uses permanently insured to denote workers who have acquired enough QCs for fully insured status for present and future whether or not they continue to work. ii. Required for OAI and most survivor’s benefits. iii. Test for fully insured status was traditionally increased for successive cohorts but for workers reaching 62 in 1999 and after, it is held steady at 40 QC which can be achieved in 10 years of covered work. iv. Workers who die before 62 giving rise to survivor’s benefit claims can reach fully insured status with fewer QC, the exact number of which depends on their age at death. g.
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Topic 1 - January 7, 2007 I. Background - Key terms,...

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