“Formally called “Old Age, Survivors, Disability Insurance (OASDI) Program”, Social Security is designed to provide protection for eligible works and their dependents against financial loss due to old age, disability or death of a spouse”.
- Social Security uses the Quarter of Coverage (QC) system to determine whether or not an individual is qualified for Social Security benefits. Anyone working in jobs covered by Social Security or operating his/her own business may earn up to a maximum of 4 credits for each year of work.
- ”Fully insured” refers to someone who has earned 40 quarters of coverage and is therefore entitled to receive Social Security retirement, Medicare, and survivor benefits.
- An individual can be considered partially insured if he or she has earned 6 credits of coverage during the 13-quarter period ending with the quarter in which the insured dies, becomes entitled to disability insurance benefits, or becomes entitled to old-age insurance benefits.
Inability to engage in any substantially gainful activity by reason of a medically-determinable physical or mental impairment which has lasted or is expected to last at least 12 months or result in an early death.
- The elimination period (i.e. “waiting period”,) for Social Security disability benefits is five months.
- At the beginning of the sixth month, benefits are paid (but there is no retroactive to the beginning of the disability period.
- Based upon the worker’s Primary Insurance Amount (PIA), which is calculated from their Average Indexed Monthly Earnings over their highest 35 years.
- SS benefits will continue for 3 months when a person returns to work making more than $500 per month.
Workers’ Compensation
Worker must work in an occupation covered by Workers’ Compensation and have had an accident or sickness that is work-related. Payable when the worker is injured by a work-related injury, regardless of fault or negligence (regulated by the states).
Workers’ Compensation laws provide four types of benefits:
- Medical
- Income
- Death
- Rehabilitation
