If you are one of the millions of older Americans receiving Social Security benefits, there are a few terms you need to know to fully understand the program. The Social Security Administration devoted a Social Security Matters blog post to defining the following terms:
COLA is an acronym for Cost-of-Living Adjustment. COLAs help Social Security and Supplemental Security Income benefits keep pace with inflation. This year, recipients received a 2.8% COLA.
As you work and pay Social Security taxes, you earn credits that count toward your eligibility for future Social Security benefits. According to the post, you can earn a maximum of four credits each year. Most people need 40 credits to qualify for benefits.
Earnings record is the chronological history of the amount of money you earned each year during your working lifetime. The post explains that your credits remain on your Social Security earnings record even when you change jobs or have no earnings for a period of time.
Clearly defining commonly used terms is fundamental to Social Security’s efforts to explain benefits in easy-to-understand, plain language. The Plain Writing Act of 2010 requires federal agencies to communicate information clearly in a way “the public can understand and use.”
Council of Seniors Wants to Give Retirees More Money
COLA is a term those of at the Council of Seniors are very familiar with. We are diligently working to get Congress to passThe SAVE Benefits Act. This crucial bill will put $581 back in seniors’ pockets to make up for Social Security COLAs that were far too low for years.
Please take a moment and sign our petition today to show your support.