Old Age, Disability, and Survivors
First law: 1967.
Current law: 1990.
Type of program: Social insurance system.
Note: This information is more than 4 years old.
Gainfully employed persons, including the self-employed.
Exclusions: Casual labor under certain circumstances.
Source of Funds
Insured person: 5% of earnings; the self-employed, 10% of 3/4 of gross revenue.
Employer: 5% of payroll; small businesses, 10% of twice the salary of the highest-paid employee.
Government: None, except for the contribution as an employer.
Maximum earnings for contribution and benefit purposes are U.S.$5,000 a quarter.
Old-age pension: Age 55 with 80 quarters of coverage or age 60 with 1 quarter of coverage for each year after June 1968 up to age 60.
Disability pension: Incapacity for substantial gainful activity due to an impairment likely to last 1 year or result in death. One quarter of coverage for each year after June 1968 (or since age 21, if later) with at least 12 quarters of coverage, or 6 quarters of coverage during the last 40 quarters.
Survivor pension: Insured had 1 quarter of coverage for each year after June 1968 (or since age 21, if later) or at least 6 quarters of coverage in the 40 quarters preceding death.
Income test: The pension is reduced by U.S.$1 for each U.S.$3 of earnings above U.S.$1,500 a quarter for pensioners who are less than 62 years old.
Pensions are payable abroad to citizens if reciprocity exists.
Old-age pension: 2% of indexed covered earnings, plus 14.5 of the first U.S.$11,000 of cumulative covered earnings, plus 0.7% of cumulative covered earnings in excess of U.S.$11,000 but not in excess of U.S.$44,000.
The minimum old-age pension is U.S.$128.99 a month.
Permanent Disability Benefits
Disability pension: 2% of indexed covered earnings, plus 14.5% of the first U.S.$11,000 of cumulative covered earnings, plus 0.7% of cumulative covered earnings in excess of U.S.$11,000 but not in excess of U.S.$44,000.
The minimum disability pension is U.S.$128.99 a month.
Survivor pension: 100% of the insured's pension, payable to a widow(er) at any age.
Orphan's pension: 25% of the insured's pension for each orphan under age 18 (age 22 if a student; no age limit if disabled before age 22).
The minimum survivor pension is U.S.$128.99 a month.
The maximum survivor pension is 100% of the insured's pension.
Lump-sum benefits: If the insured did not meet the qualifying conditions in terms of covered quarters, a lump-sum benefit equal to 4% of cumulative covered earnings is payable to the survivor.
Social Security Administration administers the program.