The Ultimate Glossary of Terms About Disability

Published on: October 14, 2014

Understanding disability is key in getting the benefits you need.In seeking to be the ultimate resource in Social Security, disability insurance and benefit information, we here at Disability Experts of Florida understand that sometimes, all the terminology and legal vocabulary of disability may be incredibly confusing to applicants for benefits. When something as important as your financial benefits for disability is on the line, fully understanding these terms is of utmost importance.

To make the process less confusing for you, we’ve compiled many of the specialized terms of disability in this blog, and have attempted to explain them in common terms. Think of it as an ultimate guide to understanding disability; one that can help you get the benefits you need. The more firmly you grasp disability, the more likely you are to receive those benefits.

Disability Terms Explained

Base Years: Base years are a wage earner’s benefit computation years; the years that the Social Security Administration (SSA) uses to determine benefits in individual claims. Typically, base years are the years after 1950 right up until an earner’s retirement year or disability eligibility.

Benefits: Social Security benefits are the end-result financial benefits you can hope to receive by applying for various programs, and qualifying under certain distinct criteria, such as disability and retirement; the SSA offers five main types of benefits to recipients, including retirement, Medicare, survivors, family and disability benefits.

Computation Years: Think of computation years as a “best-of” collection selected from your base years; these are the your base years with the 5 lowest earnings years disregarded; they are used by the SSA to determine your average monthly earnings (AME), and eventually your benefits.

Disability Benefits: Disability benefits are the financial compensation given to those unable to effectively perform in the workforce due to medical, physical or psychological conditions. The benefit amoungs are determined by:

  • Age relative to the full retirement age or onset of disability
  • Amount of accrued Social Security credits

Early Retirement: Early retirement affects the Social Security benefits you are likely to receive upon application. Reductions in benefits occur based on how many months prior to full retirement age you may have chosen to retire.

Family Benefits: Family benefits, or dependent benefits, are those who may receive benefits on your record should you be eligible for disability or retirement benefits including:

  • A spouse, given that he/she is at least 62 years old
  • Unmarried children under the age of 18, or children under the age of 19 who are full time high school students
  • Children age 18 or older that have been disabled before age 22
  • Ex-spouses age 62 or older who were married to the wage earner for at least 10 years.

Family Maximum: The family maximum is the maximum total amount of benefits payable to an entire family on a single wage earner’s record. Essentially, it’s a cap to the total benefits you can expect your dependents to be able to receive on your Social Security record.

Full Retirement Age: Full retirement age is the first instance at which a person can be eligible for full, unrestricted Social Security benefits (as early retirement limits these benefits). While the earliest you can receive benefits is at age 62, benefits up until age 65 are incrementally reduced, making 65 the full retirement age for those born before or during 1937.

For those born after 1937, the retirement age is 67 years old, with the same incremental reductions occurring between 62 and 67 years of age.

Lifetime Earnings: A disability beneficiary’s lifetime earnings record is a listed history of their contributions into the Social Security system during their entire working lives. It lists the total amount of money earned on a year-by-year basis.

Maximum Earnings: Maximum earnings represent the point at which Social Security ceases withholding taxes from earnings; that amount is increased each year.

PIA: PIA stands for Primary Insurance Amount; this is the total monthly amount payable to you should you qualify for disability without age-reduced retirement benefits. You cannot have received age-reduced Social Security benefits prior to receipt of disability benefits and still receive an unreduced disability payment.

Proof: Proofs are the official documentation, forms and papers that can be used as evidence of a disability; these proofs form the backing support for your disability claim, and are essential in getting you the benefits you need.  Proofs also relate to non-disability issues (birth certificates, marriage certificates, etc.).

Representative Payee: Representative Payees are individuals who may administer a beneficiary’s Social Security payments should the beneficiary's condition render him/her incapable of doing so. These are typically family friends, relatives or outside parties specializing in such matters.

Retirement Age: Full retirement age is either 65 (for those born before 1938) or 67 (for those born after 1937); this age determines how the SSA handles your benefits, and applying for benefits before this age can limit the money you receive.   This age is gradually being increased from 65 to 67 in yearly increments.

Retroactive Benefits: Retroactive benefits, or back pay, are the benefits to which you can be entitled for months prior to the month in which you apply for benefits.  Currently, the maximum retroactivity for disability benefits is 12 months.

Social Security: All of Social Security revolves around the concept of paying for your future while you work. Essentially, as you spend your life working, you put in Social Security taxes to “cover” yourself in the future once you reach retirement age, or are unable to work due to severe disability. When these conditions are met, the total amount of Social Security taxes paid throughout your lifetime (relative to your earnings) will determine your benefits.

Social Security Number: Your Social Security number is your initial and lifetime link with the Social Security Administration; it’s a record-keeping ID, used by the SSA to maintain a lifelong record of your wages, and benefits when you eventually receive them.

SSA: The Social Security Administration is an independent agency in the federal United States government responsible for the entire Social Security process; administration, benefits, disability and retirement funding. The SSA administers the taxes that were collected throughout your lifetime, and uses these accrued funds to pay benefits in their various programs.

SSI: Like the Social Security disability program (SSDI), Supplementary Security Income is a program enacted to provide disability benefits for those with limited incomes based on age, blindness and disability. While the medical standard benefits for SSDI is the same as SSI, certain financial requirements must be met for those applying for SSI; in addition, there is no "insured status" requirement.

Wage Earner: The wage earner is you, the worker; a wage earner is the holder of Social Security earnings, or credits, as recorded by the SSA.

Managing your Social Security information and applying for the disability benefits you need can be a daunting challenge for some. If you need more information beyond this guide, or would like to learn more about the disability application process, contact us today.

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