We try to elucidate your advantages utilizing easy-to-understand, plain language. The Plain Writing Act of 2010 requires federal companies to speak info clearly in a approach “the general public can perceive and use.” This may be notably difficult when speaking about difficult applications like Social Safety, Supplemental Safety Revenue, and Medicare.
Take a second to be taught a number of widespread Social Safety phrases and acronyms!
COLA: This stands for “Value-of-Dwelling Adjustment.” With COLAs, Social Safety and Supplemental Safety Revenue advantages hold tempo with inflation. Most years, your month-to-month profit quantity will get a COLA, which often means more money.
Credit: As you’re employed and pay Social Safety taxes, you earn credit – beforehand known as “Quarters of Protection” – that depend towards your eligibility for future Social Safety advantages. You possibly can earn a most of 4 credit annually. Most individuals want 40 credit to qualify for advantages. Youthful individuals want fewer credit to qualify for incapacity or survivors advantages. For extra info, see Social Safety Credit at www.ssa.gov/pubs/EN-05-10072.pdf.
Earnings Document: That is the chronological historical past of the amount of cash you earned annually throughout your working lifetime. Your credit stay in your Social Safety earnings document even if you change jobs or haven’t any earnings for a time period. Overview your earnings document with a private my Social Safety account at www.ssa.gov/myaccount.
FICA: This stands for “Federal Insurance coverage Contributions Act.” It’s the tax withheld out of your wages that funds the Social Safety and Medicare applications.
Now, if any of those phrases or acronyms comes up in dialog, you’ll be able to assist clarify what they imply. Go to our on-line glossary at www.ssa.gov/company/glossary to be taught extra of our terminology and deepen your understanding of how Social Safety works for you.