Michigan Disability Law Glossary
Administrative Costs – The SSA is known for having administrative costs of well under 1% of total assets.
Delayed Retirement Credits – Social Security benefits are increased (by a certain percentage depending on someone’s date of birth) if retirement is delayed beyond full retirement age. Increases based on delaying retirement no longer apply when individuals reach age 70, even if they continue to put off taking benefits.
Pension – A regular payment that an employee receives after retirement. The conditions of the pension are set before the person retires, in accordance with their retirement plan.
Portable – Even if you change employers it is a benefit that goes with you. Most pension plans sponsored by employers are not portable. Social Security is the only guaranteed benefit that is portable.
Retirement Age – Full Benefits: – For many years, the age for full retirement was 65. Beginning in the year 2000 (for workers and spouses born 1938 or later, or widow and widowers born 1940 or later), the retirement age will gradually increase until it reaches age 67 in the year 2022.
Retirement Age – Minimum: – The minimum age for retirement-age 62 for employers, and age 60 for widowers or widows.
Social Security – When you are employed, taxes are paid by you into the Social Security system. If you become disabled or when you retire, you and your family will receive benefits each month that reflect your reported earnings.
Treasury Bonds – Money in the Social Security trust fund that are not used for paying current benefits and expenses are required by law to be invested in U.S. Treasury securities. These securities pay market-based interest to the trust funds.
Trust funds – Accounts run by the Treasury Department that take in payments to the Social Security system, administer the program and pay benefits.
Trustees – The board of 4 government officials and 2 citizen representatives that manage the Social Security Trust Funds.