This document provides an overview of key concepts in Social Security benefits. It discusses: - Important dates and terms like Primary Insurance Amount and Average Indexed Monthly Earnings - Qualifying for benefits by earning credits each year and the number needed - How benefits are calculated based on earnings history and cost-of-living adjustments - Types of benefits including retirement, spousal, survivor, disability, and for dependents - How benefits are reduced if claimed before full retirement age - Special considerations for spousal and survivor benefits

1. Module I Bootcamp
Social Security Essentials

2. Module Introduction
Important Date
• The Social Security Act was signed into law on August 14, 1935
Important Terms
• Primary Insurance Amount (PIA)
• Average Indexed Monthly Earnings (AIME)
• FICA (Federal Insurance Contributions Act)
Qualifying for Benefits
• Quarter of Coverage (QC) or “credit”
• 40 QCs to qualify. Can't earn more than 4 QC/YR
• $1,640 in 2023 would earn 1 credit
• $6,560 in 2023 would earn all 4 credits
Automatic Determinations
• National Average Wage Index
• Cost-Of-Living Adjustment
Birth Year* Full Retirement Age
1943-54 66
1955 66, 2 months
1956 66, 4 months
1957 66, 6 months
1958 66, 8 months
1959 66, 10 months
1960 & higher 67

3. Retirement Benefits
• 40 QC to qualify
• 100% of benefit (PIA) if taken at FRA
• Reduced for taking before FRA
• 8% increase after FRA
Spousal Benefits
• Based on work record of a spouse
• Spouse must be collecting their benefits
• Maximum benefit equal to 50% of spouse’s PIA
• Reduced if collected prior to FRA
Survivor Benefits
• Paid to the surviving spouse
• Survivor generally “inherits” deceased benefit
• Collecting age starts at 60 at a reduced amount
• Survivor benefits don’t increase after FRA
Types of Benefits
Benefits for Dependents
• In-care benefits:
Spouse’s caring for a child under age 16 or disabled
• Minor Children:
Younger than 18, or up to age 19 if still in high school
• Disabled Children:
If disabled prior to age 22
*Children must be unmarried
Disability Benefits
• Social Security Disability Insurance (SSDI)
• Disability benefits are usually equal to worker’s PIA
• Supplemental Security Income (SSI)
(OASI) - Old-Age and Survivors Insurance Trust Fund,
also known as the
Social Security Trust Fund.
DI - Disability Insurance Trust Fund

4. Calculating Benefits
 Earnings before age
59 are indexed for
inflation
 Earnings from age 60
and after, are used
at face value
 All indexed plus face
value earnings that
are in the top 35
years are put into a
sum
$3,783,844

5. Aime & PIA
AIME: Average Indexed Monthly Earnings
35 Year Sum is divided by the number of months in 35 years (420)
Full Retirement Age (FRA):
67
(06/2029)
Sum of highest 35 years of indexed earnings: $3,783,844
Average Indexed Monthly Earnings (AIME): $9,009
Bend Point Portion Multiplier Amount
$0 - $1,115 $1,115 X 90% = $1,003
$1,115 - $6,721 $5,606 X 32% = $1,794
>$6,721 $2,288 X 15% = $343
Primary Insurance Amount (PIA): $3,140

6. Social Security Reductions & Credits
Monthly Benefits
Percentage of Primary Insurance Amount
2020 2021 2022 2023 2024 2025 2025 2026 2027 2028
62 63 64 65 66 FRA 67 68 69 70
$2,198 $2,355 $2,512 $2,732 $2,920 $3,140 $3,140 $3,391 $3,642 $3,894
2020 2021 2022 2023 2024 2025 2025 2026 2027 2028
62 63 64 65 66 FRA 67 68 69 70
70% 75% 80% 87% 93% 100% 100% 108% 116% 124%

7. Spousal & Divorced Benefits
2020 2021 2022 2023 2024 2025 2025 2026 2027 2028
62 63 64 65 66 FRA 67 68 69 70
32.5% 35% 37.5% 41.66% 45.83% 50% 50% 50% 50% 50%
Key Takeaways
Eligible at 62 (52 if disabled)
Benefits determined by age of claim
Spousal Eligibility
Married at least 12 months
Spouse has also started collecting
Ex-Spousal Eligibility
Married at least 10 years
Currently single
Ex-spouse has filed or divorced over 2 years ago
(independently entitled)

8. Dual Entitlement Example
Betty’s PIA is $900, and her husband’s PIA is $2,100
Claiming Age
Betty’s Spousal
Benefit, SB
Betty’s Retirement
Benefit, RB
Betty’s Total Benefit Amount
Calculated RB + SB Diff = Total
62 $683 $630 630 + 53 = $683
63 $735 $675 675 + 60 = $735
64 $788 $720 720 + 68 = $788
65 $876 $788 788 + 88 = $876
66 $962 $844 844 + 118 = $962
FRA 67 $1,050 PIA $900 900 + 150 = $1,050
68 $1,050 $972 972 + 78 = $1,050
69 $1,050 $1,044 1044 + 6 = $1,050
70 $1,050 $1,116 $1,116
If she files at FRA, her own benefit is $900, and her eligible spousal benefit is $1,050
She would receive the $900 on her record and the remaining $150 from her husband's record

9. Survivor Benefit
Claimant Age
Survivor Benefit
Reduction %
60 71.50
61 75.58
62 79.65
63 83.72
64 87.79
65 91.86
66 95.93
67 (FRA) 100
68 100
69 100
70 100
Survivor Benefits
Key Takeaways
Survivor benefit has a “base amount”
Benefits determined by age of claim
Survivor FRA is younger than normal FRA for
those born in 1955-1961
Eligibility factors
Married at least 9 months AND
• Eligible at 60 (50 if disabled) OR
• Any age if caring for a child under age 16 OR
• Any age if caring for a disabled adult child

10. Family Benefits
Dependent Benefit Key Takeaways:
50% of PIA while parent is alive
75% of PIA if parent is deceased
Limited by family maximum benefit
3. Child In-Care Spousal Benefit (If Caring for Child Under
age 16 or disabled child)
*Spouse must be collecting
benefits
Eligible to receive 50% of the
collecting spouse's PIA
2. Disabled Child (If Disabled Before Reaching Age 22)
*Parent must be collecting
benefits
Eligible to receive 50% of the
collecting parent's PIA
1. Minor Child Under Age 18 or 19 (If Still in High School)
*Parent must be collecting
benefits
Eligible to receive 50% of the
collecting parent's PIA
Family Maximum Benefit
Limits the total benefits that can be
paid out on one worker's earnings
record

11. Earnings Test
Limits how much can be earned while collecting Social Security benefits
Income That Does Not
Count
Income That Does
Count
 Pension Payments
 Annuity Payments
 IRA Distributions
 Dividends
 Interest Income
 Capital Gains
 Rental Income
 Employment
Income (W-2
Wages)
 Net Income from
Self-Employment
• In all years before reaching full retirement age
$1 for every $2 earned above $21,240*
• In the year full retirement age will be reached
$1 for every $3 earned above $56,520*
• No earnings limits at or after reaching full
retirement age
*2023 limits

12. Cost-of-Living Adjustment
Collecting Benefits:
For those who are already collecting a
benefit when the COLA increase begins
each January, that benefit will be
adjusted to reflect that COLA increase
Not collecting Benefits:
For those aged 62 and older will receive
the COLA increase even if they have not
begun collecting benefits. Clients who are
not collecting, the COLA increase adjusts
their PIA
2.8
1.6 1.3
5.9
8.7
0
1
2
3
4
5
6
7
8
9
10
2019 2020 2021 2022 2023
Cost Of Living Increase Last 5 Years
Cost Of Living Increase

13. Life Expectancy
72%
33%
3%
62%
21%
1%
89%
47%
4%
0%
20%
40%
60%
80%
100%
80 years 90 years 100 years
Percent
If you're 65 today, the probablilty of living to a specific age or beyond
Women
Men
Couples - at least one lives to specified age
From Chapter 4: shows life expectancy probabilities at age 65
for women, men, and couples.