Oct 12, 2010|
Barry and Kurt talk to listeners about Social Security
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
58 million Americans collect Social Security retirement benefits -- Social Security benefits. And they're not getting a raise on January 1 of 2011. We're joined by -- -- now Steve who's the deputy commissioner for Social Security. Good afternoon -- welcome to the show. Berry could be back with you and congratulations on the new show. Well I appreciate -- our listeners all wanna know the answer to this question. Why are they not getting a raise in their Social Security benefits this year. Well first of all Barry we need to say this is all still technically. Premature could be official announcement. Won't be -- until this Friday that certainly all signs point to the -- that there won't be. It increased in people's Social Security payments again this year and that's basically -- is. The 1973. Legislation that. Provided for annual increases to Social Security payments. Stipulated that these increases would be based on. The increase in the Consumer. Price Index. For urban wage earners repudiation of the CP RW which is. Manager. Tracked by the federal Bureau of Labor Statistics and whatever the increase is the -- -- DIW from. The third quarter one year through the third quarter of the following year that's what gets passed on. And if there is no increase in the the POW during that twelve month period and there's no provision for an increase in Social Security payments so has he really has no. No lead weight no wiggle room on all of this we looked at the Bureau of Labor Statistics measure that comes up that there's been no -- that's what there's no -- Now has this ever happened before -- Well the first time there was no increase was last year Saddam -- to -- yep indeed now. Automatic cola came into being. 1975. Legislation has passed earlier but the first year automatic colas was 1975. And we continued on. Nicely. And well one bit of historical news is that in that initial legislation there was 83%. Threshold. That had to be crossed before there would be any type of a whole lot. And that was not really an issue until the late 1980s. After Paul Volcker had been kidnapped but that it wrong a lot of inflation not in the economy and it appears that in nineteen. 87. That 3% threshold of an increase in the POW would not be crossed and it was. We were faced with a possibility that there would be no increase -- congress acted to. Bombed them the law to basically said that -- no -- had to have a 3% threshold increase the -- we crossed any increase in CP IW. Would generate a coal per beneficiary to. We can't that -- and that the good news is if you're well aware of what. Lately inflation's pretty well but under control and those colas have. Not an extraordinarily high that they weren't belief. Seventies early eighties but it's still important part of what our program provides to people given the fact that people -- living so much longer in retirement. Well they are and there's there's this whole issue with Medicare part B. Because right now there's basically two different levels. A premiums being paid. By the majority of retirees. It's what one is if you were collecting your Medicare last year you're paying 96 dollars a month. If you collected Medicare went on Medicare this year -- is your paying about a 110 dollars per month and then next year it's gonna go even higher is that correct. I'm very likely a little Centers for Medicare & Medicaid Services. -- and announce what the bass part B premiums will be for 2011. You know but the good news is that. There is in the legislation they hold harmless provision which basically protects. Social Security beneficiaries. From seeing their monthly payment. Go to known and because increase for the part B premium. Expedia at whatever cost of living increase there had been in their benefit to. That's why we have this dichotomy this year and next here we may well have they apparently don't know -- to word tripe about having. Yeah yeah I don't think we all likelihood we will. That people who are. Collecting for the first time this year paying that 11050. Getting a benefit for months. They -- now be protected by that hold harmless provision and they won't -- their monthly payment go -- all but. New filers in 2011 people from under the Medicare program news event. We'll see and we'll pay whatever the higher part B premium groups to be -- again the exact Iran hasn't been announced yet by. The amounts. All right well folks we're joined today by -- are now ski he's a deputy commissioner at the department of Social Security. You can call into the program if you have a question -- commented our phone number is 617. 2666868. You're listening to WR KL my name's Barry Armstrong were having an interview about Social Security we'd like to get your input on this topic. 6172666868. Is a number you should dial right now. And let's see if we can't go to the phones because -- I hope you don't mind taken calls from a couple of our listeners that. Bob is on the phone I think he'd like to ask your question or two -- Bob are you good afternoon welcome to show. If not I yes I. Our -- couldn't quite hear you. Question was the CPI through September do you have that the appear. And I -- -- fingertips. I do not but I believe it. Will likely prove to be. Well if you be just in the month of September and now I don't have that but the minute you are open the number. You know. Yeah well I don't have a better security by the federal Bureau of Labor Statistics -- get that by going to. Yeah -- web site www. ELF dot gov. You -- to get that official number on Friday Bob and of course will record reported here during the show. But the B I I think it's almost need a mathematical impossibility -- that there could be an increase. Based on the number there were expected for this Friday. That that's what are we at the well. Again you know I think. People can argue whether it CP IW is the proper measure. For -- to use or whether this seat yet W tracks the right things. Just for listeners how unfortunately from the Social Security Administration perspective. Right answer but we don't really have an option. If congress would elemental law or if the BO let's wear to work in changed the items that they track and that he -- that. We would certainly. Apply whatever new measurement. -- hit it it was but basically and we look to what the CP IW visit tracked by the federal Bureau of Labor Statistics -- that's what gets passed on or. Indicate that last year and perhaps very likely this year. Nothing or no increase will be passed on to our beneficiary. It's interesting I haven't heard anything. From congress about perhaps making some kind of an amendment an emergency amendment to give people small rays I don't know perhaps we'll hear something. During the last couple months of the years when when congress comes back. -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- Anything while I'm I'm honored folks if you'd like to talk to Kurtz are now ski he's -- deputy commissioner for Social Security our phone number 617. 2666868. And you can text us at 68680. That's 68680. Is our text number. On Barry Armstrong cart's announcement from Social Security whether -- on lunch money here on AM 680 WRK. 781 wants to know if Social Security has had no increase for the past two years wire federal employees receiving increases for both years good question I don't know the answer that one. Let's go to Eileen your next on WRKO. Eileen. -- -- -- that I Medicare for three years. My heartbeat. Went up to 110 dollars. This past year. Because there was no cola for the so security. Increase. Right do you know you're at 9640 you were supposed to stay at battle now. Because I don't gonna -- security check I payment of it directly. Nice kid yeah yeah no I'm wondering if there's -- -- Picture has eleven do I get another entry. You will Europe and the estimates that I've seen Eileen in these are very unofficial we won't have the real numbers until later in October possibly even November. Incurred at have you heard any assets I heard one of 127. Yeah I have not heard anything I -- is absolutely correct does that hold harmless clause that I mentioned. Protects someone. Not from paying a higher part B premium but it's protecting them from -- their Social Security payment. Go down and so those folks like I lead -- who are in the role in Medicare but. Not receive a Social Security payment are protected. By this -- harmless bird. In fact you pay. That higher part B premium. All right well thanks very much for your call and let's go to Arthur your next on WRKO Arthur. Yes I question was partially answered without dialing up yeah I I understand. The social security and you'll change it by themselves. But if you -- and older or anybody. It doesn't shop who otherwise. But it's certainly. You know now there are no place right there I. The other question. What -- the demographic. Will be a breakdown of Medicare that you know. Because generally. You'll all people think oh well Medicare Foley's elderly -- sitting -- what -- the elderly percentage. Oh. Medicare Social Security. Far less. All we they're split Kurt that what -- seventeen million people on of the 58000017. Million. Our disabled is that correct. It's about nine million. Who collect because so disability it's eight million who are disabled workers other family members you about. Six. Point three million who are survivors of deceased workers so. You know we always say fully a third of the people that we pay each month are not retirees so -- that broad based social insurance program but don't forget. Bet -- care. It -- people who are 65 or older. Or who have been on Social Security disability for two years. A lot of those people who are collecting. Survivor benefits that they've lost the -- want to they're not under the not yet 865 which a lot of those surviving children aren't. -- -- -- -- -- There's Medicare. Coincide with a receipt of the Social Security payment necessarily it's over 65 -- collecting disability for at least two years. Now Curtis you're retired and you say boy I didn't know I was in and get raises in my Social Security you wanna go back to work. Can you suspend your Social Security retirement benefit. Absolutely well. Wants if you are apt or -- there're. What is referred to ensure full retirement age for Social Security purposes you can get -- and request. That benefit payment be suspended by doing so -- do that prior to beat David creates seventy you'll learn delayed retirement. Credits. From Social Security for those months were you don't collect the payment is basically take the labor -- credits of the rate of 8% per year or two thirds percent per month. If you're under full retirement age. And you do go back to work basically we need to let us know that anyway it will determine whether we can pay you when he figured out you're allowed to make up to 141000. 160. Dollars this year without any lost the. Data that you 141000 if you retired early ranked. After -- now what is what is the statistic though it's a it's a shocking number as to how many what percentage of the population. Collects your Social Security early -- Yep and last number that -- show it's about 73%. Of our beneficiaries optical lacked. Prior to eat -- of their full retirement age. So one thing you could do is go back to work then is that that because. By going back to work you're paying more money into the system. And secondly you get what do you get for a raises about 8% a year for every year did you delay the collection of your Social Security -- it's. At least half a percent per month but that's slightly differently to roughly half a percent per month reductions. For each month prior to full retirement age. And if you defer past full retirement age it's actually an 8% per year increase. Beyond that no one important point Barry for folks out there who may be 6263. Have been laid off. Contemplating whether they should take this Social Security payments and not one of the things we like termite folks is that the that would have to be an irrevocable want into somebody. Can't find a job right now needs a source -- -- -- the Social Security begin those payments and if they are successful in returning to work. They just let us know and based on that work activity -- stop their benefit payments Indian the end of final reduction. In their monthly payment will only be for the number of benefits that they actually elected so he doesn't have to be an ever applicable one you go back to work what is now we can stop those in the. All right Linda you're next on WR KL. Yes that Aston. I am 66. And was laid up for work -- Collecting unemployment but have not collect my Social Security. I was wondering where I currently have -- it. Concerned with it -- we it would be going. Is isolated in. It goes up 8% a year lender that you could collect unemployment and Social Security at the same time. If you -- if your hard up for money she can do that reichert. Absolutely you know -- which you certainly can't. But would suggest that I I go on Social Security fourteen Larry. Well he the only advantage to going on you on Medicare yet Linda yeah. The only advantage to collecting your Social Security by November 1 is you'll be locked in at that reduced Medicare premium -- if you wait until January your Medicare premiums gonna go up to about 125130. A month. And I thought I. Social Security by delaying it with. It does but the you don't get to discount on your Medicare part B premium if you delay your collection. Well the and I don't know achieving get on it by November 1 -- if it is used to be on Medicare by November 1 in order to lock in that lower -- It did not -- contact -- contacts Social Security today absolutely. Are getting. Linda thanks very much for your phone call we're talking about Social Security our guest is an expert in the field his name is -- so are now -- he's actually deputy commissioner of Social Security here in Boston and he's been helping us out with some of the more complicated questions. -- your next on WRKO. Aren't they keep it they can I call on I'm currently on -- -- it's -- a 48 year old and have been able. -- liable on food security on Kitna can't IE com. And I won't work in public in I'd make it record of the year. He had Social Security disability there -- -- Yep and the work caps is different for folks who were collecting disability benefits than those who were collecting retirement or survivor benefits. Basically. -- you qualify under our program because you medical condition prevents you from working at what is. That was to be eight substantial earnings level and in 2010. It's a thousand dollars per month. Or less is considered Serbs take -- thousand dollars -- the board considered substantial earnings up if you were to go back to work. You should let Social Security -- that you done that you do have the opportunity to work for a little while. Before we review the situation and see whether you're now working at a high enough level you should no longer be considered disabled but that. -- for 20101000. Dollars a month. Is the -- you're making 100000 dollars a month -- disability payments will continue. Above a thousand dollars a month. Indication that -- able to work with a substantial earnings level and probably we should not be pay you disability payments despite the fact you may still have that medical condition. All right thanks for your call we appreciated our phone number here at WRKO 6172666860. Were talking about Social Security. We're trying to figure out ways things that you can do on your own assuming congress. Does not give you a raise on January 1 and that's where it's looking right now. What can you do to increase your Social Security retirement benefit -- gonna help us out with the answer to those questions and more. Our phone number 6172666868. You're listening to lunch money -- very Armstrong and AM 680 WRKO.