SOCIAL
SECURITY ABROAD
Report
on Town Hall Meeting, 25 April, 2005
by
Christine Counelis and Karen Lee
PRESENTER
Ted
Girdner
Assistant
Associate Commissioner
Baltimore,
MD
OVERVIEW
Frankly, at least the KL member of this reporting team went to the Town Hall meeting expecting to confront the ‘Private Accounts Social Security Reform’ road show. We were pleasantly surprised!
This lively and highly informative 3-hour presentation left us with the impression that career employees of the Social Security Administration, and their counterparts at the embassy here, stand on the side of the insured wage earner. The wealth of printed materials made available support this view.
Mr Girdner explained the various categories of beneficiary, the rules involved (summarized below) and the procedures for gaining information, applying for benefits and receiving payments abroad. The points he emphasized included:
1. 1. The insured has the right to calculate the best possible payment scheme based on his/her work history.
2. 2. Staff at the US Embassy are trained to help citizens get the most out of the plan they’ve paid into (Soc Sec, military retirement, other special funds).
3. Due to increasing mail delays and a history in some countries of check theft, it is best to set up a direct deposit of benefits to an account either in a US or Greek bank.
(NB: For more information on recent
difficulties in opening/maintaining US bank accounts experienced by
customers with a foreign address, see the HELADA website.)
4.
The retirement age adjusts upwards to 67 for workers born in 1960 or
later, reflecting an increase in longevity and productive life. This is
likely to be further adjusted.
BASIC
PROGRAMS
Social Security benefits for American citizens abroad fall under a set of complex rules. The pay structure becomes more complex if the insured has worked both in the US and Greece.
Benefits in all cases are currently calculated as a percentage of average wages over the working period. These are ‘indexed’ to reflect the increase in maximum covered wages over the years of participation. Cost-of-living adjustments also may be added to the benefits.
US taxpayers receive an annual statement of their Social Security payments and estimate of expected benefits. Those not currently paying taxes in the US may request a statement be sent to them.
Social
Security benefit income IS taxable if individual income is over $25,000
per year, or jointly filed income is over $32,000. About 1/3 of current
beneficiaries pay income tax on SS benefits.
Who
May Receive Benefits?
1.
Wage earner on reaching Retirement Age
Early
retirement = 62 years, benefit reduced by a certain percentage
Full
retirement = 65 years for people born before 1938, up to 67 years
Delayed
retirement = if you opt to work past age 65, benefit increased up to
starting age 70; benefit remains level if benefits begin from age 70 and
up.
NB: Before full retirement age, if you continue working, benefits will be reduced based on how much you earn. After full retirement age, you receive full benefits, regardless of other income.
2. Wage earner’s spouse who has never worked, on reaching Retirement Age = spouse supplement (Spouse does NOT have to be a US citizen to qualify.)
3. Wage earner’s spouse who has worked and paid into SS = own pension or spouse supplement amount, whichever is higher.
4. Wage earner’s divorced spouse if married more than 10 years, divorced more than 2 years, at least 62 years old, currently unmarried and not eligible to an equal or higher benefit under his/her own or other’s work.
5. Unmarried children up to the age of 18 or 19 if fulltime student or any age if disabled before age 22.
6. Survivors, if wage earner is deceased. Either spouse at age 60 (50 if disabled) or any age if caring for minor child recipient, or unmarried children of wage earner as above. Elderly parents if deceased wage earner has been contributing over 50% of support.
7.
Disabled wage earners (plus dependents as above). Must have paid in 20
quarters in the 40 quarters preceding onset of disability. Proof of
work-preventing disability required.
Medicare
Medicare is the basic national health insurance for people over 65. Medicare provides:
§
Hospital
Insurance (Part A) for in-patient care and some follow-up services
§ Medical Insurance (Part B) that helps pay for doctors’ services, outpatient care and some other services
Most people covered by Social Security or Railroad Retirement are automatically covered by Part A, free of charge, at age 65. Spouses and others covered by other pensions may also qualify.
Part
B, however, is NOT free. It is an optional program and MUST BE APPLIED
FOR. Current premiums run $78.20 per month. (States may assist low income
people with the premiums and out-of-pocket expenses, deductibles and
co-insurance.) It may be more
expensive if enrollment is delayed, so it is advisable to sign up for Part
B at age 65.
FACTORS
AFFECTING BENEFITS
Windfall
Elimination Provision (WEP)
If the wage earner worked for a government agency or military and was covered by some other pension fund, e.g. Civil Service Retirement System, and also worked and paid into Social Security, Social Security benefits may be reduced. This provision was introduced to prevent ‘double dipping’, i.e. receiving a double pension from two government funds.
The
calculation of the benefit amount is a bit complex. Detailed information
is available through the embassy.
Totalization
Program (Agreement between USA and Greece)
Wage earners who have worked both in the US and in Greece may be eligible to receive benefits from either or both countries. The formula to figure the amounts is known as ‘Totalization’ and is set by a bi-lateral agreement. Similar agreements cover joint benefits in some other countries, but not all are the same and not all countries are so covered.
The rules and formulas are somewhat complicated. The main provisions of Totalization are:
1. If work is covered both by US and Greek social security law, this agreement eliminates double payment, i.e. you pay into one system or the other, not both. Proof required.
2. When you apply for benefits, you may not have enough social security credits in one country or the other to qualify, BUT credits from both countries may be combined to qualify for some benefits from the US or Greece, or partial benefits from both.
3. To be eligible to have Greek credits counted toward US SS, the wage earner must have earned at least 6 credits (approx 1.5 yrs work) in the US.
4. To have credits counted from both countries toward Greek benefits, the wage earner must have at least 300 days of coverage credited under the Greek system.
5. If Greek credits help the wage earner qualify for US benefits, those US benefits may be reduced by some amount based on the extent to which Greek ‘help’ was needed.
6.
If the wage earner qualifies for full pensions in both countries, the WEP
comes into play, and US benefits may be reduced.
To
apply or get more information about benefits under the Totalization
Agreement, go to the Social Security office at the US embassy. US Social
Security records can be pulled up on computer, and Greek records,
likewise, will be obtained directly from the Greek retirement authorities.
This is an information service only, to help with the US SS application.
To apply for the Greek pension benefits, go to the Greek social security
authority that covers your work.
US
CITIZENS – GREEK CITIZENS – 3rd COUNTRY CITIZENS
US
citizens may receive Social Security benefits while outside the United
States.
Normally, persons who are not US citizens may receive US Social Security benefits while outside the US only if they meet certain requirements. Most cases here will involve Greek nationals who qualify as a US SS covered wage earner, spouse or dependent.
However,
under the US-Greek bi-lateral agreement, any covered person may receive US
SS benefits while they reside in Greece regardless
of their nationality.
APPEALS
If
you disagree with the decisions made by either US or Greek authorities
regarding your benefits, you have the right to appeal. These decisions are
NOT made jointly by the two systems and may not agree. The appeal process
is also handled seperately by the two authorities. So information about
and applications for an appeal must be directed to the authority with
whose decision you disagree.
VOTING AND SOCIAL SECURITY
In response to our query at the meeting:
The Social Security Administration collects a good deal of personal and work-related information on covered wage earners. This information is subject to federal laws on sharing of information (Privacy Act of 1974) and is disclosed as necessary to other agencies for administration of entitlement, health and welfare programs. (Printed materials state: It is also disclosed to law enforcement agencies for pursuit of alleged violations of Social Security law, to the Internal Revenue Service for Federal tax administration, to employers and former employers for preparation of wage reports, and to a list of other agencies specified under Federal law. Homeland Security, for example, may use it to identify and locate aliens in the US.)
Full details on uses of this information may be requested through the SSA directly or the SS office at the embassy.
In
no place is it suggested that registering and voting in US elections will
affect the status of US Social Security benefits.
MORE
INFORMATION
Printed
materials include:
Social
Security: Understanding The Benefits
Social Security: Agreement Between The U.S. and Greece
Your Retirement Benefit: How It Is Figured
Your Payments While You Are Outside The United States
Windfall Elimination Provision (WEP)
Application for a Social Security Card (form w/info, instructions)
Request for Social Security Statement (form)
other forms for claiming benefits, reporting change of country residence,
etc
CONTACT
US
Embassy
91 Vas.
Sophias Av
Athens 10160
Tel: 210 721-2951 (main operator)
Tel: 210 7720-2408 (American Services division)
Loretta
Terry is currently the Regional Federal Benefits Officer at the embassy.
Her office, with a staff of 11 Greek nationals trained to handle Social
Security info and apps, deals with all US benefit programs EXCEPT military
pensions.
Contact
Ms Terry at:
Tel: 210 720-2424
Fax: 210 729-0509
TerryLM@state.gov
Or
her co-worker, Voula Pangou, who was also present for the Town Hall
meeting:
Tel: 210 720-2412
For military pension questions, contact the Dept of Defense office, through the Consulate main number above.
General
information about Social Security
Social
Security Administration
Office of International Programs
P. O. Box 17741
Baltimore, Maryland 21235-7741
USA
In
the USA, toll free information by phone at1-800-772-1213
If
you live outside the US and want more information about Totalization:
Social
Security Administration
OIO – Totalization
P. O. Box 17049
Baltimore, Maryland 21235-7049
USA
Via
Internet
Information,
e-news, request statements, apply for benefits online, benefits planners
and calculators, multi-language gateway at: www.ssa.gov
The
Work Site, for people with disabilities who want to work: www.socialsecurity.gov/work
For
more info about Greek programs (IKA etc) visit any Greek IKA office or:
Social
Security Institute
Division of International Relations
8 Athiou Konstantinou St
Athens 10241