Question: How do I earn coverage for Social Security? I am a retired government employee and do not have all my credits. I know my Social Security retirement benefit will be reduced because of my government retirement, but I understand I would still qualify for Social Security.

Answer: You earn Social Security credits, sometimes referred to as quarters of coverage, when you work and pay Social Security taxes. The credits are based on the amount of your earnings. In 2012, you receive one credit for each $1,130 of earnings, up to the maximum of four credits per year. Each year, the amount of earnings needed for a credit goes up slightly as average earnings levels increase.

Generally, a person needs 40 credits to be eligible for retirement benefits.

Social Security benefits can be reduced if a person receives a pension based on government employment that was not covered by Social Security taxes. You should refer to our website for more details, gpo-wep/.

There also are special rules for the self-employed. Read more in our online publication “If You Are Self Employed” at pubs/10022.html.

Q: If a person receives a Social Security payment after they die, does the payment have to be returned?

A: Social Security benefits are not paid for the month in which an individual dies.

For example, an individual receives a Social Security payment in August for the month of July and dies in August after the receipt of that payment. The individual would be entitled to the payment received in August (July's payment) because the individual lived throughout the month of July.

However, the payment issued in September (for the month of August) would have to be returned to Social Security because the individual did not live throughout the month of August.

A family member or other person responsible for the beneficiary's affairs should do the following. Promptly notify Social Security of the beneficiary's death by calling toll-free at 800-772-1213 (TTY 800-325-0778.) If monthly benefits were being paid via direct deposit, notify the bank or other financial institution of the beneficiary's death. Request that any funds received for the month of death and later be returned to Social Security as soon as possible. If benefits were being paid by check, do not cash any checks received for the month in which the beneficiary died or thereafter. Return the checks to Social Security as soon as possible.

Q: If I receive Supplemental Security Income disability benefits, what is the effect on my benefits if I work?

A: In most cases, your return to work would reduce your benefit amount, and in some cases, discontinue your payments. Unlike Social Security disability, there is no “trial work period” for people who get SSI disability benefits. In most cases, if your only income besides SSI is from your work, you can earn up to $1,481 in a month (in 2011) before we stop your payments.

We have several publications about SSI, including “Reporting Your Wages When You Receive Supplemental Security Income,” available at pubs/10503.html. Note that there are other work incentives that can help you return to work when you receive SSI. You can read about them in “What You Need To Know When You Get Supplemental Security Income (SSI)” at pubs/11011.html#part6.
