Social Security can be complicated. The Social Security Administration (SSA) is committed to doing its part to explain its services and benefits in easy-to-understand, plain language. This aligns with the purpose of the Plain Writing Act of 2010, which requires federal agencies to communicate information clearly in a way “the public can understand and use.”
In that effort, an SSA blog post identifies four terms everyone needs to know:
COLA — This stands for “Cost-of-Living Adjustment.” COLAs allow Social Security benefits to keep pace with inflation. Most years, your monthly benefit amount will get a COLA, which usually means extra money.
Credits — While working, you earn credits – previously called “Quarters of Coverage” – that count toward your eligibility for future Social Security benefits. You can earn a maximum of four credits each year. Most people need 40 credits to qualify for benefits.
Earnings Record — This is the chronological history of the amount of money you earned each year during your working lifetime. Your credits remain on your Social Security earnings record even when you change jobs or have no earnings for a period of time.
FICA — You’ve probably seen these letters on your paycheck. FICA stands for “Federal Insurance Contributions Act.” It’s the tax withheld from your wages that funds Social Security.
Council of Seniors is Here to Help Older Americans
All of us here at the Council of Seniors want to improve retirees’ financial futures and ensure they receive their full Social Security benefits. We are working with members of Congress to introduce the “Social Security Restitution Act.” It would provide an estimated $970 payment to every retired worker receiving Social Security benefits to help offset years of inadequate cost-of-living adjustments
Please take a moment and sign our petition today to show your support.