Guide for Displaced Workers

Social Security can be considered your "portable pension." Social Security will follow you from job to job thus offering you continued protection under its Retirement, Survivors, and Disability programs. Information contained in this factsheet is intended to guide you and to help you maximize your Social Security protection during this time of transition.

YOUR SOCIAL SECURITY STATEMENT

The Social Security Statement is sent to workers annually, 3 months before their birthday. The Statement contains valuable information about your earnings, Social Security programs, and estimates of your potential Social Security benefits. Review your most recent statement to insure that your earnings are correctly recorded. (Note: The most recent year's earnings will probably not be shown on the statement. This is normal because of the lag time it takes to receive and record them.) Compare the earnings shown with your records. If you find an error, contact your local Social Security office. We can correct it for you. Review your benefit estimates. They can help you plan for your future financial security. Be advised that the retirement estimate assumes you will continue to work and earn at the same amount of money as last year until the retirement age shown. If your future earnings are reduced or you do not continue to work, your actual benefit may be lower. The disability and survivors benefit estimates are shown as of the point the statement is issued. These are only estimates of your potential benefits based on your general earnings information. If you did not receive a statement or would like another one, contact Social Security 1-800-772-1213 or visit our website at www.socialsecurity.gov. Social Security Statements are free.

YOUR SOCIAL SECURITY NUMBER AND CARD

When you apply for a new job, financial assistance, or Social Security benefits you will be asked to provide your Social Security Number and to show your Social Security card. Make sure the number you provide is correct. Your earnings are recorded by using your Social Security Number. If you have lost or misplaced your card or if you are unsure of your number, you can get a replacement card from Social Security. Request Form SS-5 from Social Security by calling 1-800-772-1213 or by visiting our website at www.socialsecurity.gov.

You will be required to show recent proof of your identity when you submit Form SS-5. The proof of identity must show your name and one of these other identifying facts; a picture or physical description (if in person), your birth date, place of birth or parent names (if by mail or in person). Some recent proofs of identity we accept are: Driver’s License, Employer ID card, Passport, Health Insurance card, Military record, and a Life Insurance policy. If you must change or correct your name, additional documents may be required, such as your birth certificate or marriage record. Some recent proofs of identity we accept are: Driver’s License, Passport, or a Military record. Additional documents, such as an Employer ID card, Health Insurance card, or a Life Insurance policy can be accepted if they show the required information.

HOW BREAKS IN EARNINGS AFFECT SOCIAL SECURITY BENEFITS

RETIREMENT BENEFITS: A drop in your earnings or gaps in your earnings can result in a lower Social Security benefit amount. First, the amount of annual earnings a worker has directly affects the amount of Social Security benefits he or she will receive each month. High earnings result in higher benefits than lower earnings. Secondly, the Social Security Retirement benefit calculation uses an average of your 35 highest years of earnings. Having less than 35 years of earnings on your Social Security record will result in a lower Social Security monthly benefit. You can check the number of years of earning you have on your Social Security record by examining your Social Security Statement.

DISABILITY BENEFITS: To receive Social Security Disability benefits, a worker must meet certain medical and non-medical requirements.

The medical requirement is that the worker must have a medical condition, either mental or physical, which is so severe that it prevents him or her from working, at any employment, at a level that is considered substantial and gainful. Substantial gainful activity is measured in 2008 as being able to earn $940 per month ($1570 per month if you are blind). Also, the severe condition must be expected to last at least 12 months or end in the worker's death.

The non-medical requirement is that a worker must have enough recent work and earnings to qualify for disability benefits. . Social Security measures work and earnings by assigning credits to a worker's record. For example, in 2008 a worker earns one credit for each $1050 in Social Security covered earnings he or she has. A worker can earn up to a maximum of 4 credits per year. To receive disability benefits a worker, age 31 or older, must have at least 20 credits on his or her Social Security record in the 10-year period immediately before the time he or she becomes disabled. (For workers under age 31 the required number of credits is less.) This means that if a worker age 31 or older becomes disabled after being unemployed for more than five years, he or she would not have enough recent work (credits) on his or her Social Security record to meet the non-medical work requirement. If the non-medical work requirement is not met, Social Security is unable to pay disability benefits to the worker, no matter how severely disabled the worker might be.

SOCIAL SECURITY AND WORKER’S COMPENSATION AND OTHER PUBLIC DISABILITY BENEFITS

Disability payments from private sources, such as private pension or insurance benefits, do not affect your Social Security disability benefits.

However, workers’ compensation and other public disability benefits may reduce your Social Security benefits. Workers’ compensation benefits are paid to a worker because of a job-related injury or illness. They may be paid by federal or state workers’ compensation agencies, employers or by insurance companies on behalf of employers.

Other public disability payments that may affect your Social Security benefit are those paid by a federal, state or local government and are for disabling medical conditions that are not job-related. Examples are civil service disability benefits, military disability benefits, state temporary disability benefits and state or local government retirement benefits that are based on disability.

Some public benefits do not affect your Social Security disability benefits. If you receive Social Security disability benefits and one of the following types of public benefits, your Social Security benefit will not be reduced:

- Veterans Administration benefits

- State and local government benefits, if Social Security taxes were deducted from your earnings; or

- Supplemental Security Income (SSI).

SOCIAL SECURITY AND UNEMPLOYMENT BENEFITS

If you receive Unemployment Compensation and you become entitled to Social Security benefits on your own work record, or on the record of another, such as a widow or spouse, your Unemployment Compensation may be reduced. The laws of the state in which benefits are applied for will determine the reduction of unemployment benefits. Receipt of any type of Social Security benefit must be reported to your state's Department of Labor Unemployment Compensation Service. They will determine if any offsets apply. In Pennsylvania, the offset was removed for weeks ending after December 17, 2005.

ADDITIONAL SOCIAL SECURITY INFORMATION

You can obtain additional information about Social Security programs by calling our toll free telephone number, 1-800-772-1213 or by visiting our website at www.socialsecurity.gov.