CEBS - GBA3 (Module 10) Questions and Answers

Old-Age, Survivor's & Disability Insurance - Answer- OASDI A basic characteristic of social insurance programs where income is high enough to provide a comfortable standard of living - Answer- Floor of Income This requires applicants to show their income/assets are below a certain level for public assistance. This isn't required for social insurance programs. - Answer- Means Test OASDI, Workers Comp, & Unemployment Insurance - Answer- Three programs that provide economic security for millions Benefit that provide a certain stand of living - Answer- Social adequacy Receipt of benefits is directly related to contributions - Answer- Individual equity Maximum of 4 credits per year - Answer- Quarters for coverage (credits) for social security earned each year What a person must do to receive credits for Social Security? - Answer- Must have worked in a covered employment The amount needed for one credit in 2017 - Answer- $1,300 The number of Social Security credits a fully insured person have - Answer- 40 credits The number of Social Security credits a currently insured person has - Answer- At least 6 credits in the last 13 calendar quarters Definition of Social Security disability insured - Answer- Must meet 2 work tests to be considered disabled Full social security retirement age for persons born from 1960 - Answer- Age 67 The earliest age individuals can retire and draw Social security - Answer- Age 62 with actuarially reduced benefits The monthly retirement benefit is based on this amount - Answer- Primary insurance amount (PIA) The PIA is based on this amount, which updates the workers past earned amounts based on increases in average wages - Answer- Average Indexed monthly earnings (AIME) Unmarried children under 18 & unmarried disabled children - Answer- Categories of workers entitled to Social Security survivor benefits The amount of Social Security lump sum death benefit - Answer- $255 only if there is an eligible survivor The funding source for state unemployment insurance programs - Answer- Financed largely by payroll taxes paid by employers The following are some of the characteristics of social insurance programs that distinguish them from other government programs. All of these listed are correct, EXCEPT: - Answer- Emphasis on individual equity rather than social adequacy Full funding unnecessary Floor of income Compulsory programs (Emphasis on individual equity rather than social adequacy) For persons born after 1928, the highest ___________ years of indexed earnings are used to calculated the worker's AIME (Average Indexed Monthly Earnings) for retirement benefits. - Answer- 20 35 25 30 (35) Federal civilian employees hired after _____________ are also covered on a compulsory basis for social security. - Answer- 1960 1983 1937