How Social Security Works! Getting Texas Social Security Disability Help

Getting Social Security Disability help isn't the clearest process. To help understand the program, Victor Makris offers an overview of the program. Learn more at http://www.houstonsocialsecuritydisabilityattorney.com/social-security-disability-help/

Transcript

1. How Social Security Works! By Victor Makris Attorney at Law 713 526 9966
2. Your Speaker  Victor Makris, Attorney  Born in Houston  Congressional Intern in College  University of Houston Law Center 1977  Makris Law Firm PC 1978 – Present  Board Certified Personal Injury Trial Law  Practice Areas – Social Security, Personal Injury, Family Law, Bankruptcy, Probate, Criminal Defense and more
3. Gotta call the office!!!
4. SOCIAL SECURITY?  THE TERM “SOCIAL SECURITY” WAS  FIRST USED BY?
5. ANSWER  WINSTON CHURCHILL  DESCRIBING BRITISH SYSTEM
6. ORIGINS OF US SYSTEM  BISMARK GAVE US AGE 65  IN 1930 2% OF POPULATION LIVED TO AGE 65  SS LAW PASSED IN 1935  PAY AS YOU GO SOCIAL INSURANCE
7. How are benefits paid?  FICA [Federal Insurance Contributions Act] = payroll taxes  FICA goes into Social Security Trust Fund
8. What year first monthly SS retirement check paid?  1936?  1939?  1940?  1942?
9. Answer: 1940  On Jan. 31, 1940, Ida M. Fuller, age 65, received the first monthly Social Security retirement benefit. Between 1937 and 1939, she had contributed roughly $25 in taxes. Her first check was for $22.54. By the time she died 35 years later at age 100, she had collected about $23,000 in benefits.
10. IDA FULLER AND THE FIRST SS RETIREMENT CHECK
11. TOO MUCH INCOME TAX?  150,000,000 US WORKERS PAY  AVERAGE INCOME TAX  2003 - 7.3% (doubled)  1955 - 3.4%  AVERAGE PAYROLL TAX  2003 - 15% (Tripled)  1955 - 5.6%
12. THE GREAT EQUALIZER  FAMILY OF 4 WITH $55,000 INCOME TAX IS $8,000.00 INCLUDING EMPLOYER MATCH 10% OF TAXPAYERS MAKE OVER $100,000 Pay 31% of payroll tax Pay 64% of income tax 62% of TAXPAYERS EARN LESS $50,000 Pay 30% of payroll tax Only 7% of income tax
13. HOW LONG TO GET YOUR $  1980 TOOK SS RETIREE 3 YEARS  By 2003 IT TAKES ABOUT 15 YEARS  AFFECTS EARLY RETIREMENT 80% OF RETIREMENT BENEFIT
14. WHO DOES SS HELP How Does Social Security Help People with Disabilities & Their Families?
15. Current Design: The Positives  Set monthly payment  Adjusted yearly for inflation  Move among 3 programs: work history, age, eligibility category  Same benefit formula all programs
16. Social & Family Insurance  All workers share risk of common life events  Provides benefits for themselves & family, even younger workers  Guaranteed monthly payment
17. Essential Protection  Millions of families face disability  Adults with serious disabilities have very low employment rate  Families of workers who become disabled need guaranteed income
18. Value of Social Security For young workers with spouse and 2 children Life insurance policy = $403,000 Disability policy = $ 353,000  Affordable disability insurance
19. How to earn insurance  Workers & employers pay FICA [Federal Insurance Contributions Act] taxes  Workers earn “credits” for eligibility earned per quarters of work for 2015 $1,220 per quarter ▪ Spouse and family receive benefits off wage earner’s record when worker becomes disabled, retires or dies
20. Not just retired workers Over 1/3 monthly benefit payments go to 17 million non-retirees
21. TYPE OF BENEFITS  RETIREMENT BENEFITS  SURVIVOR BENEFITS  DISABILITY BENEFITS  MEDICARE  SSI - MEDICAID  APPEAL PROCESS IS THE SAME
22. Social Security Insurance  Retirement - insures retirees in their 60’s after they retire  Survivors - insures dependent children and widow(ers)  Disability - insures against loss of ability to work due to disability
23. Retirement Insurance  Retirees  Spouses – Widow(er)s  Minor Children of retirees – To age 18
24. Survivors Insurance  Monthly life insurance if worker dies Minor children until age 18  Spouses of deceased workers,retirees  Disabled widow(er)s at age 50-59  Widow(er)s at age 60  Adult children disabled before 22
25. Disability Insurance  Disabled workers Minor children and spouses  Disabled adult children before 22 whose parents are on SS
26. People with Disabilities  May receive all 3 types of Social Security benefits  Family members also eligible
27. Severe disability before age 22 Significant work limitations & single Qualify when parent is receiving SS disability, retirement or dies on SS Rarely leave program Often move among programs ADULT DISABLED CHILDREN
28. ADVANTAGES OF AGE IN GETTING DISABILITY  REGULATIONS ARE FRIENDLIER TO DISABILITY APPLICANTS AGE 50 AND OVER
29. Younger Workers: Disability  Need fewer “credits” than older workers to qualify  Must prove significant work limitations ▪ Benefit amount depends on worker’s previous earnings  Benefits for both spouse & children
30. SSD AND SSI How are Social Security & SSI Disability Programs Different?
31. Social Security Act  Title II Old Age, Survivors, & Disability Insurance: Social Security   Title XVI: Supplemental Security Income [SSI]
32. Different Programs: Title II & Title XVI  Title II: OASDI  SS FICA payroll deduction  Workers  Other beneficiaries: spouses & children  No asset/income limit  Medicare  Title XVI: SSI  General revenues from federal budget  Default program for aged, blind,disabled adults & children  Asset/income limits  Medicaid
33. Receiving Both Benefits  May get Social Security disability & SSI at same time – limited income & resources  May get 1 benefit now & another later  But rules about working while getting benefits differ for each program
34. Paying Current Benefits  “Pay as you go” system  Most money coming in pays current beneficiaries due to  Very low administrative costs
35. What are the Trust Funds?  Technically 2 trust funds:  Old Age and Survivors Insurance  Disability Insurance  People with disabilities get benefits from both  Policymakers treat as 1 fund
36. What’s the big concern?  Is there enough money to pay future Old Age, Survivors & Disability Insurance benefits?  Solvency = ability to pay legal obligations  NOT issue for Supplemental Security Income [SSI]
37. A DEVELOPING CONCERN  WHEN MONIES COME INTO THE TRUST FUNDS WHAT HAPPENS TO THAT MONEY?  TREASURY BILLS – TAKE THE MONEY OUT AND PUT AN IOU IN
38. IS SS BROKE?  Media and government officials alike have called the system “BROKE”  GEORGE W. BUSH  PRIVATE ACCOUNTS SAGA
39. NO but there is a shortfall  There is a predicted shortfall in the amount of money coming in vs the amount of benefits that will have to be paid.  The year this begins differs depending on who you talk to
41. Some Current Projections  Pay full benefits using payroll tax income: until 2020  Pay full benefits using payroll tax income & redeeming Trust Fund bonds: until 2035  Approximate 29% shortfall after
42. WHAT’S THE PLAN?
43. Tweaking the Engine to Prevent Shortfall in the Future
44. Proposals to “fix” Social Security  Increase payroll taxes all income  Raise retirement age to 67 to 70  Reduce monthly benefits  Asset and/or income cap  Inject more money from Treasury adding to national debt
45. Raise the Cap on Income Subject to FICA Taxes  Now $118,500  Raising it to first $190,000 of income closes 31% of shortfall  Complete removal closes 99% of shortfall
46. Raise the payroll tax rate on employers and employees  An increase from 7.65% to 8.2% on employer and employee  Eliminates half the shortfall
47. Apply payroll tax to benefits  Tax on health benefits  Flexible spending accounts  Closes 11% of shortfall
48. Raising age of retirement  67 to 70  Closes 65% of the shortfall
49. Index benefits for longevity  As life expectancy increases lower annual benefit  Closes 21% of shortfall
50. WHAT’S THE BEST PLAN TO FIX THE SHORTFALLS  A LITTLE BIT OF EACH OF ABOVE  PHASE THEM IN SLOWLY  OVER A FIVE YEAR PERIOD  TO AVOID SETBACK TO U.S. ECONOMIC RECOVERY
51. BIPARTISAN BUDGET ACT OF 2015  FILE AND SUSPEND  • You file for your own benefits at or after full retirement age;  • Suspend your benefits until age 70;  • Spouse or dependent collects in the meantime;  • You receive increased benefit at age 70.  You must be 66 and file before May 1, 2016   RESTRICTED APPLICATION  • You file for your spousal benefits at or after full retirement age;  • Restricted application for spousal benefits only;  • Your defer your own benefit and allow it to grow and claim later.  Must be 62 prior to end of 2015  You can file when you reach age of full retirement
52. BASIC TEST FOR GETTING SOCIAL SECURITY DISABILITY  MENTAL OR PHYSICAL IMPAIRMENT  LASTING MORE THAN ONE YEAR  PRECLUDING COMPETITIVE WORK IN PREVIOUS EMPLOYMENT AND  OTHER EMPLOYMENT IN LOCAL OR REGIONAL ECONOMY
53. HOW TO PROVE DISABILITY  THROUGH MEDICAL RECORDS!!!!  BY GETTING TREATMENT!!!!  HARRIS COUNTY HOSPITAL DISTRICT PROGRAM  MHMRA
54. PRESUMPTIVE DISABILITY LISTING IE - MULTIPLE SCLEROSIS  MOTOR DYSFUNCTION IN 2 EXTREMITIES OR MORE ▪ VISUAL OR MENTAL IMPAIRMENT ▪ MUSCLE WEAKNESS ON REPETITIVE ACTIVITY
55. Compassionate Allowances  Fast Track grant of benefits  Even with minimal medical records  200 different serious illnesses  Diagnosis is the key
56. THERE ARE 4 RULES  FOR GETTING DISABILITY
57. APPEAL  APPEAL  APPEAL  APPEAL  D O N’ T G I V E U P!!!
58. APPLICATION PROCESS  APPLY FOR BENEFITS  RECONSIDERATION  REQUEST A HEARING  APPEALS COUNCIL/FEDERAL COURT
59. PROCESS TIME  APPLICATION TO HEARING 8 - 14 MONTHS  APPEALS COUNCIL 8 MONTHS  FEDERAL COURT 12 – 14 MTHS  DIG IN – PROBLEMS OF WORKING, UNEMP BENEFITS, & WORKERS COMP
60. VICTOR MAKRIS MAKRIS LAW FIRM, PC  713 526 9966  1 866 526 9966  CALL IF YOU HAVE ANY QUESTIONS  CALL TO BOOK VICTOR FOR YOUR SEMINAR T H A N K Y O U!
61. LEARN MORE NOW  Visit http://www.houstonsocialsecuritydisabil ityattorney.com/social-security- disability-help/