Scenarios about Social Security Disability Insurance
Scenario
In addition to providing benefits to disabled workers, the Social Security program also provides benefits to minor children and spouses of disabled workers. For example, your father is 45 years old and has multiple sclerosis. For the past 5 years, he has been unable to work because his condition has worsened. He has been receiving Social Security disability payments for 2 years. Your two younger siblings (ages 12 and 15) both receive Social Security benefits as his children, and your mother receives benefits as a spouse who is taking care of children younger than age 16. You (at age 20) do not qualify for benefits.
Scenario
The Social Security program provides benefits to minor children and spouses of disabled workers, as well as to disabled workers themselves. For example, you are the 17-year-old child of a 38-year-old woman who receives disability benefits from Social Security. As children of a disabled worker, both you and your younger brother also receive Social Security benefits. You will begin your senior year in high school in the fall and will turn 18 in January of your senior year. You will, however, continue to receive Social Security benefits until you graduate in May.
Scenario
In addition to providing retirement benefits, Social Security provides benefits to millions of disabled workers each year. For example, you are a 27-year-old woman who was diagnosed with lupus 9 years ago. However, the lupus did not prevent you from going about your regular daily activities until 3 years ago. Since then, you have been in and out of hospitals and have been unable to maintain employment. Your mother has been supporting you, but money is growing tight. Thus, you have begun the process of applying for Social Security disability benefits.
Scenario
Workers receiving Social Security disability benefits are switched to the Social Security retirement program once they reach full retirement age. For example, your 64-year-old grandfather has been receiving Social Security disability benefits for 14 years. When he reaches full retirement age—66 for persons born in 1943-1954—he will no longer receive disability benefits from Social Security and will instead begin receiving retirement benefits. The benefit amount will be the same, however.
Scenario
Minor children (and adult children who were disabled before age 22) of workers can receive Social Security benefits once a worker retires and begins drawing benefits. For example, your 30-year-old brother was born with severe cerebral palsy and has required constant care for his entire life. He is unable to work, but does not qualify for Supplemental Security Income (SSI) because your parents’ incomes are too high. However, once your father retires next year, at his full retirement age of 66, your brother may be eligible for a “child’s†benefit, based on your father’s Social Security retirement benefits (which are calculated using your father’s Social Security earnings record and record of FICA payments.)
Scenario
Current workers pay taxes into the Social Security system, which are then distributed as benefits to current retirees and other beneficiaries. Workers are taxed at a rate of 6.2% of wages, up to $97,500 (in 2007). You can see this from the stub for your first paycheck at your first job. The amount of the paycheck is much smaller than you anticipated. You knew that federal and state taxes would be taken out, but were not expecting nearly 8 percent of your money to be taken out for “FICA†(most for Social Security, plus some for Medicare).
Scenario
Your friend’s uncle, who received Social Security disability benefits, was recently sent to prison for committing a felony. He will not continue to receive disability benefits while he is in prison, but his children will continue to receive their benefits (as the children of a disabled worker). Incarcerated persons may not receive benefits from the Social Security system, but their dependents who previously received benefits will continue to receive benefits during the period of incarceration, provided these dependents remain eligible.