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[ Disability Benefits ]
Social Security
On 1 January 1957 military personnel became contributing participants in the Social Security program, with entitlement to all of its benefits. Under this program your family may be eligible to receive survivor benefits upon your death. You and your spouse may receive retirement benefits, and payments may be made to you and your family if you become disabled. A brief summary of the program follows.
Disability Benefits
Benefits are payable for disability incurred as a result of a serious accident or illness before reaching age 65 through age 67 (depending upon year of birth) if you meet the basic eligibility requirements. Hence, if you become totally disabled, you can start drawing benefits at any age. In addition to drawing benefits on your own behalf, the following dependents would be entitled to payments while you are so disabled:
1. Your spouse if age 62, or at any age if he/she has a child under 16 in his/her care.
2. Your child or children under age 16, and those who are older than age 16 and who have become disabled prior to age 16.
Medical proof must be submitted to show that you are unable to do any sort of substantial work for pay because of a physical or mental disability which must last, or be expected to last for at least 12 months or result in death.
Retirement Benefits
In addition to your full military retired pay, you may be entitled to draw retirement benefits under Social Security after reaching age 62. However, benefits are reduced if you start drawing them before reaching your Full Retirement Age (FRA)(see chart below). If you are drawing retirement benefits, there are limitations on the amount of money which you may earn from employment up your FRA . After your FRA, all earnings limitations cease. Military retirement pay is a pension and not considered earned income (no FICA tax deduction withheld). Nor is military retired pay affected (decremented) when you begin drawing your social security retirement benefit!
Survivor Benefits
Survivors eligible for benefits after your death are:
- Your spouse when age 60 or later.
- Your spouse at any age if he/she is caring for your minor child/children who are entitled to Social Security Benefits.
- Your disabled spouse who no longer has a child of yours under age 16, provided the requirements established by the Secretary of Health, Education and Welfare are met.
- Dependent unmarried children under 18, and those who are 18 or over who have become disabled prior to age 18.
- Dependent parents or parent age 62 or over receiving more than one-half of his or her support from you at the time of your death.
- Your surviving divorced unremarried spouse provided he/she had been married to you for at least 10 years before your divorce. He/she must be at least age 62, or have a child of yours under 16 in his/her care.
If your surviving spouse remarries prior to age 60, the benefits paid as your survivor may cease. Your children's benefits are not affected by the surviving spouse's remarriage even if their stepparent adopts them. State laws on the subject are followed by the Social Security Administration.
Where there is both a current and former (unmarried) spouse both caring for the children or stepchildren who are entitled to benefits, the benefits will be divided equally.
Full Retirement Age (FRA)
Eligible ages for full Social Security benefits
| Year of birth |
Full retirement |
| 1937 or earlier |
65 |
| 1938 |
65 and 2 months |
| 1939 |
65 and 4 months |
| 1940 |
65 and 6 months |
| 1941 |
65 and 8 months |
| 1942 |
65 and 10 months |
| 1943-1954 |
66 |
| 1955 |
66 and 2 months |
| 1956 |
66 and 4 months |
| 1957 |
66 and 6 months |
| 1958 |
66 and 8 months |
| 1959 |
66 and 10 months |
| 1960 or later |
67 |
Medicare under Social Security
One of the components of the Social Security program is the provision for health care which covers persons age 65 or older and certain other individuals at younger ages. This protection is known as Medicare.
The coverage afforded under Medicare is divided in two parts. Part "A" covers the basic protection against the cost of hospitalization and related care. Part "B" coverage is voluntary and provides a measure of insurance to hedge against the cost of doctors' services as well as other items and services not covered under the basic protection afforded by Part "A."
Costs for Part "A" are financed as a part of the Social Security tax levied against those currently working and paying FICA (Federal Insurance Contribution Act) taxes. The cost of the Part "B" insurance is borne by the individual and is on a voluntary basis. The cost for Part "B" (as of 1 January 2005) is $78.20 per month for most persons, with a somewhat higher cost for those who delay entering the program after attaining age 65.
As a general recommendation, AFSC encourages enrollment in Part "B" at age 65. Since TRICARE (Prime, Standard, or Extra) protection terminates at age 65 for both the retirees and their eligible spouses, it is essential to enroll in Medicare Part "B" in order to participate in the new Tricare For Life (TFL), which acts as a Medicare Supplement insurance plan. See detailed information on TFL elsewhere on this web site.
If you are still working beyond age 65 and are covered by an employer health plan, or you are covered under your spouses employer health plan, you need not enroll in Medicare Part "B" at age 65. But, when you or your spouse terminate employment and lose the employer sponsored health coverage, you must enroll in Part "B" to avoid paying the late enrollment penalty.
Medicare Part "A" and "B" provides medical coverage for most, but not all, medical needs. Additional protection can be purchased in the form of Medicare Supplemental Insurance plans, also called "Medigap" insurance, to assist with expenses not covered by Medicare. With passage of recent legislation creating the new Tricare For Life program, the need for Medigap insurance is lessened. Certain circumstances, however, make having a supplemental plan desirable, such as frequent or extended overseas visits where Medicare is of little use.
If warranted, supplemental plans are available from a number of commercial insurers or from several military associations who provide health supplement coverage at reasonable premiums for their membership.
Application for Social Security benefits
There are three methods to apply for social security benefits. You may call the toll free number at 1-800-772-1213, visit your local Social security Office in person, or apply on-line through the web site at www.ssa.gov
For retirement benefits, one should make application about 2-3 months prior to the month in which you want the benefit payments to begin.
The Social Security Administration can provide current estimates for you and your family's benefit entitlements. All workers under age 62 now receive an annual benefit and wage estimate statement about 2 months before their birth date. To request a separate benefit statement, call the Social security Administration at 1-800-772-1213 or visit their web site to obtain the request form.
Remember, Social Security benefits are subject to taxation depending upon your Modified Adjusted Gross Income. Between 50-85% of your monthly benefits may be subject to income taxes.
The Social Security Administration can provide current estimates for you and your family's Social Security entitlements. To obtain a form to request, call the Social Security Administration at 1-800-772-1213, or visit their website and request your Social Security statement online.
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