Social security benefits in the united states are an example of quizlet that will help you to learn about the different social insurance programs in the United States. These programs include social security, Medicare, Medicaid, UI, and other social insurance programs that provide income support for workers, families, and individuals.
Social Security Benefits in the United States: A Quizlet
In 1935, President Franklin Delano Roosevelt enacted Social Security, which is now a major part of retirement income for most Americans. It also provides disability, surviving spouse, and survivor benefits to people who become disabled or die.
The federal government collects Social Security taxes from both workers and their employers, with the funds deposited into a trust fund. When workers reach a certain age, they are eligible for annuity payments that last until their death.
Generally, Social Security benefits are based on the worker's average indexed monthly earnings (AIME) for a given period of time. This amount varies from person to person.
Earnings Credits and Insured Status
As workers pay Social Security taxes during their careers, they accumulate "credits" that translate into higher benefits. The level of those credits increases as the worker's average indexed monthly earnings increase.
Insured Benefits and Survivor Benefits
There are three levels of Social Security benefits that are available to retirees, based on their earnings records. Those with high lifetime earnings, called "fully insured," receive full retirement and survivor benefits. These are the most valuable benefits. Those with low lifetime earnings, called currently insured, are entitled to only partial benefits.