Social Security, Medicare and Government Pensions

 By Alain Burrese

Nolo, the publisher that is passionate about making the law accessible to everyone has published one of the best guides to Social Security retirement and medical benefits for the layperson. Like other Nolo books, "Social Security, Medicare & Government Pensions: Get the Most Out of Your Retirement & Medical Benefits" by Joseph L. Matthews with Dorothy Matthews Berman is written by an attorney, but in language anyone can understand. It is a very good book to help understand Social Security benefits that include retirement, disability, dependents and survivors benefits as well as Supplemental Security Income; the basics of both Medicare and Medicaid programs and how to compare medigap insurance plans; medical coverage options such as HMOs and other plans; government pensions and veterans benefits, and just general advice for anyone thinking about retirement.
The nearly five hundred page book is divided into sixteen chapters and an index. Each of the chapters contain easy to understand advice on the chapter topic, with side bars, tables, cautions, lists, and additional resources. The organization of the book makes it easy to quickly find the parts most relevant to your own situation or needs. Again, the book does a very good job of providing basic information regarding the topics in an easy to understand way. The chapters or topics include: Social Security, The Basics; Social Security Retirement Benefits; SS Disability Benefits; SS Dependents Benefits; SS Survivors Benefits; When to Claim Social Security Benefits, and Which One to Claim; Supplemental Security Income; Applying for Benefits; Appealing a Social Security Decision; Federal Civil Service Retirement Benefits; Veterans Benefits; Medicare; Medicare Procedures: Enrollment, Claims, and Appeals; Medigap Insurance; Medicare Part C: Medicare Advantage Plans; and Medicaid and State Supplements to Medicare.
The book will give anyone a good understanding of these programs and how to navigate them. However, the difficulty comes with the ever changing of such programs and how they are administered. Yes, Nolo updates the books, and I'm reviewing the 15th edition, but things still change fast at times. I see this book as helping people understand what is what as they work with government officials and administrators in the system, or at times, work with an attorney to assist them with certain issues concerning benefits.
The other problem I see is that none of us know what will happen with these government programs. Some suggest they may disappear, others are not so gloomy. There is a good chance things will change. But for now, if you are navigating these waters, Matthews has put together a very good book to help you stay off the rocks and keep afloat. I recommend it for anyone who needs information about these programs.

Alain Burrese, J.D. is a writer, speaker, and mediator who teaches how to live, take action, and get things done through the Warrior's Edge. He is an expert on conflict and mediates and teaches conflict resolution and negotiation. Additionally, he teaches physical conflict skills in his Hapkido and Self-Defense courses, lectures, and seminars. Alain is the author of Hard-Won Wisdom From The School Of Hard Knocks, the DVDs Hapkido Hoshinsul, Streetfighting Essentials, Hapkido Cane, the Lock On Joint Locking series, and numerous articles and reviews. You can read more articles and reviews and see clips of his DVDs as well as much more at http://www.burrese.com and http://www.yourwarriorsedge.com

 

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FERS Federal Disability Retirement Benefits For Federal Government Employees

 By Michael Relvas

Similar to most employers in America, the Federal Government does not exactly make information readily available for employees to find and review relating to group benefits and more specifically, Disability insurance. Disability insurance is arguably one of the most important types of coverage a person can have, and therefore is worth researching and understanding. Nearly all Federal Government employees are enrolled and covered by the FERS program. There are many details associated with the FERS program and this article should help Federal employees understand how it protects them, their income and their family in the case of an unforeseen injury or illness.
The first thing to understand is how it actually works - in other words, what has to happen in order for a Federal employee to be eligible for FERS Disability benefits. The answer, as expected, is not simple. There are several requirements that must be satisfied, but for the purposes of this article, three important requirements will be noted. The first requirement is that Federal workers must complete a full 18 months of service prior to any claims being made. Secondly, the program requires that due to injury or illness, a Federal employee must be disabled for useful and efficient service in his/her current position. Although this description and definition of disability protects workers in their current position, there is one final requirement that makes qualifying a bit more difficult. FERS Disability requires that the debilitating injury or illness must be expected to last for at least one full year. This is a very gray and unknown requirement, as many illnesses and injuries cannot necessarily be foreseen so easily.
Federal employees should also understand how much benefit they should expect if they ever require a disability claim. There is significantly more detail related to benefit distributions, but for the sake of simplicity, this article will cover the basics. The FERS Disability program will provide 60% income replacement in the first 12-months of a Disability claim. Although this may not seem like a lot, it is similar to any group Disability policy that exists in the private sector. The primary difference and problem with FERS is that after the first 12 months of a claim, the benefit will reduce to 40% income replacement. Unfortunately most households cannot afford such a large pay cut, especially with the additional expenses associated with a debilitating injury or illness.
The final thing to understand is how benefits are paid to Federal employees while on Disability claim. FERS Disability benefits are a part of a Federal worker's benefit package and therefore are provided/paid for by the Federal government. With Disability insurance, if a person is provided protection by an employer, any benefits received at the time of claim will be considered income and therefore will be taxed as such. This is an important point for Federal employees to consider. Although FERS provides 60% and 40% benefits, the actual income replacement will be much less once benefits are taxed.
As a Federal Government employee, it is very important to understand the structure of your Disability income protection. Although this benefit is provided for you at no cost, it does not exactly provide the greatest income protection available. For this reason, you may be eligible to qualify for supplemental coverage through an individual Disability insurance policy. This is not offered through the Federal government however, and you must obtain coverage through an insurance company. To review more information on FERS Disability benefits and the options available to Federal employees, visit FERS Disability Insurance Benefits.

Michael Relvas is an insurance specialist with MR Insurance Consultants, an insurance services firm that assists individuals across the country with Life and Disability insurance. Based in the Washington Metro area, Michael has assisted many Federal Government employees with their Disability insurance and Life insurance. If you are concerned with making sure your income and family are properly protected, please feel free to contact MR Insurance Consultants at 800-817-4522 or visit us online at Disability Income Insurance.

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Pensions May Take a Hit From National Mortgage Settlement

 By Mark Johnson, Ph.D., J.D.

The $26 billion mortgage settlement announced by the U.S. Government and state Attorneys Generals on Thursday, February 8, 2012 is causing some concern among pension investors and bond fund managers. The settlement "is cheap for the loan servicers while costly for bond investors including pension funds," according to Pacific Investment Management Co.'s ("PIMCO") Scott Simon as first reported by Bloomberg BusinessWeek.
Five leading U.S. banks are participating in the agreement, including Ally Financial Inc. (formerly GMAC), Bank of America Corp., Citigroup Inc., J.P. Morgan Chase & Co. and Wells Fargo & Co. Together, the five banks service loan payments on approximately half of all home loans outstanding, or about 27 million mortgages, according to Inside Mortgage Finance. Other loan servicers are expected to join the program, thereby raising potential benefit levels.
Fannie Mae and Freddie Mac, which together guarantee about 50% of all mortgages in the U.S., are excluded from the settlement.
Of the $26 billion settlement, only $5 billion will be paid in cash by the banks to borrowers who lost their home due to foreclosure. The balance of benefits is calculated as follows:

• Principal reduction. Underwater borrowers - meaning those who owe more on their mortgage than the loan is worth - will receive at least $10 billion in loan reductions if they are at risk of default.


• Refinancing. Homeowners who are current on their mortgages may be able to reduce their interest rate by refinancing under more lenient loan-to-value ratios. The value of the refinancing option is targeted at $3 billion


• Special relief programs. Up to $7 billion is targeted for unemployed borrowers, anti-blight programs, short sales, and service member assistance.

These new mortgage relief programs will be available to homeowners for up to three years. Incentives for loan servicers are written in a way to encourage fast action within the first 12 months.
The settlement will provide direct benefits to borrowers in excess of $20 billion, according to a government fact sheet, since servicers will receive only partial credit for every dollar spent. Some estimates project the economic impact may be equivalent to $32 billion.
Homeowners in Florida and California are expected to be major beneficiaries of this historic mortgage settlement, based on the volume of delinquent loans and a precipitous drop in home values.
Pensions Face Lower Returns on Mortgage Holdings
Pensions, 401(k) plans, and insurance companies are unwitting victims of this record-setting agreement, according to fund managers like PIMCO. Institutional investors lose out when the value of their mortgage-backed securities ("MBS") decline due to government-induced principal reductions, below-market financing, and forced assistance for the unemployed or military veterans.
Critics Question Projected Mortgage Settlement Benefits
Some critics say the mortgage settlement is too little, too late. While millions of people have lost their homes, for example, the settlement will only affect a relatively small number of them. There is also concern about "moral hazard," or the danger that more homeowners will default in order to get relief.
In Summary
As states and municipalities struggle to close an already existing $1 trillion gap in unfunded pension liabilities, a potential further reduction in the value of assets is troubling. Plan sponsors and fiduciaries will need to work closely with accountants and auditors to identify any adverse financial impact of the mortgage settlement, and determine off-setting measures to protect funding levels.
February, 2012

Mark Johnson, Ph.D., J.D., a highly experienced ERISA expert, is founder of ERISA Benefits Consulting Inc. http://www.erisa-benefits.com As a former ERISA Plan Managing Director and plan fiduciary for a Fortune 500 company, Dr. Johnson has practical knowledge of plan documents as well as an in-depth understanding of ERISA obligations. He works as an expert consultant and witness on 401(k), ESOP and pension fiduciary liability; retiree medical benefit coverage; third party administrator disputes; individual benefit claims; pension benefits in bankruptcy; long term disability benefits; and cash conversion balances. He can be reached at 817-909-0778. ERISA Benefits Consulting, Inc by Mark Johnson provides benefit consulting and advisory services and does not engage in the practice of law.

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Do Federal Government Employees Have Disability Insurance?

 By Michael Relvas

If you are looking for information on disability insurance as a Federal government employee, it is important to understand that you do not have a typical group "disability insurance" program. As a Federal government employee subject to FERS, you have what's called disability retirement benefits. There is not truly a difference in the two, and realistically benefits are paid very similar to a typical group disability insurance program, minus a few exceptions.
Federal government employees subject to FERS, have access to a number of retirement benefits, including a retirement annuity (similar to a pension), and a Thrift Savings Plan (similar to a 401(k)). Most individuals who work for the Federal government are aware of these two benefits. What many individuals do not know is that the retirement annuity may also provide early retirement benefits in the case of total disability.
The disability retirement benefits under FERS have fairly strict guidelines to qualify for benefits. Although the available list includes a number of requirements, the two most important ones are:
- You must complete 18 months of Federal civilian service that is credible under the FERS.
- The disability must be expected to last at least one year.
In other words, Federal employees must have at least 18-months of Federal civilian service in order to qualify, and the debilitating injury or illness must be expected to last at least one year. A typical long-term disability insurance program would begin paying benefits after satisfying a 90-day elimination period, which means Federal employees are not as well protected for disabilities lasting less than 1 year.
The benefit structure is also less favorable than a typical group disability insurance program. As stated on the OPM website, the method of calculating benefits for Federal workers under age 62 is as follows:
- During the first 12 months: 60% of your high-3 average salary minus 100% of your Social security benefit for any month in which you are entitled to Social Security benefits.
- After the first 12 months: 40% of your high-3 average salary minus 60% of your Social Security benefit for any month in which you are entitled to Social Security disability benefits.
Benefits paid for under the FERS disability retirement benefit are generally taxable when paid during a claim. Therefore, the 60% and 40% benefits that are payable may end up actually being less than this amount on an after-tax basis.
To summarize, Federal employees do not have a group disability insurance program, but they do have FERS disability retirement benefits available, provided they have at least 18-months of Federal civilian service.

Michael Relvas is the owner of MR Insurance Consultants, a financial services firm specializing in personal disability insurance. Michael has assisted many Federal workers nationwide in understanding the disability benefits provided through FERS, and also in obtaining private disability insurance to supplement their FERS disability benefits.

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SSDI Benefits Compensate Income Loss

 By Suzanna Laker

Loss of income is a serious concern for people who are unable to work because of a disability. However, there is help available. The Social Security Administration (SSA) provides disability benefits for qualifying individuals who can no longer work because of their medical condition.
Disability compensation is calculated from lifetime average earnings that could range from below $600 to more than $2,000 per month, depending on a person's work history. If you are out of work because of a disability you could qualify for Social Security Disability Insurance (SSDI) benefits.
SSDI Qualifying Factors
What are some of SSA's qualifying factors for approval? 

• You must have an SSA-qualifying medical condition.
• You must have worked approximately five out of 10 years from when you became disabled and have paid into the Social Security System through FICA taxes.
• Your disability has kept you from working for at least 12 months, or may result in death.
• Your condition is preventing you from earning above the level of substantial gainful activity (SGA) of $940 per month ($1,570 if you have a visual disability)

Disability Income-How Long and How Much?
You receive disability income for as long as you remain unable to work or until you reach full retirement age and can take your Social Security retirement benefits. You shouldn't expect to get an increase in disability compensation if your condition worsens. Your cash payment is not determined on the severity of your disability. It is determined by how much you have earned throughout your working years. Your cash benefit may get reduced, however, if you are getting disability income from other government sources, such as Workers' Compensation or other federal, state or local government agencies that provide civil service disability benefits, or disability retirement benefits. If you are getting Veterans Administration benefits or are receiving a private pension or private insurance disability payment, your SSDI cash amount is not affected.
The Social Security Disability Insurance program was established to help people with disabilities get through financial hardship. If you can't earn a living because of a disability, SSDI insurance is a good option for you to consider. You can apply for SSA disability compensation benefits, either on your own or with the help of professional Social Security Advocates or Attorneys. Experts who understand the SSDI program can guide you through the application process. Once approved, it will be a relief to know that you can expect a steady flow of disability income every month.

Find out more about how cash benefits are determined at the SSA Web site.
Suzanna Laker is an expert author on the subject of Social Security Disability and is employed with Freedom Disability in Shelton, Connecticut. Suzanna writes about information and educational resources on all topics regarding Social Security Disability Insurance (SSDI).

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Update Sept. 11 - 2010 All About "Government Pension Long Term Disability Insurance" By Insurance Experts

If you become disabled through injury, sickness, or other circumstances and have not been able to work for a year (long term disability), then you may be eligible for social security disability insurance (SSDI) benefits. If your application is approved, you can collect the social security disablity insurance benefit until age 65 when is the time the benefit is transfered to the pension program.

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What You Should Know About Long Term Disability Benefits
By Mike Selvon

According to the U.S. Census Bureau, each individual has a 1 in 5 chance of becoming disabled at some point in life. Moreover, the Council for Disability Awareness says the average long term disability benefits last for only 2.5 years, which can leave people without a steady income for a long period of time. Emotions run high when an injury results in disability. Not only does the individual worry, "How am I going to pay for my medical treatment," but they also worry "How will I afford the time off from work?" The good news is that many people are eligible for disability income insurance, which can help them get by.
When you are sick or injured, you will first begin by filing for short term disability insurance, which will cover you for a few weeks or up to six months. Once your short term benefits expire, your long term disability benefits will kick in. Each month, you will receive a flat-rate percentage of your income, which is usually around 50 to 60%. The best policies can provide as much as 80% and will pay cost-of-living adjustment increases over the years to keep up with inflation. Your benefits can be paid for 2 to 5 years or until you're 65, at which time you will be eligible to apply for Social Security.
Ideally, a person would use their long term disability benefits as a supplement, while they continue to work part-time, perhaps performing different duties than they're used to. As an incentive, many insurers offer employers reduced premiums if they allow workers to return in some facet. Insurers may also cover child care expenses during that time to encourage new mothers to return to work at least part-time. However, working is not always possible, particularly for debilitating injuries or illnesses like cancer. One in seven people can expect to be off from work for five or more years before retiring, according to the Council for Disability Awareness.
Long term disability benefits vary depending on which policy has been purchased, so you should check with your employer to determine whether that arrangement is suitable or whether you need to purchase individual insurance. For instance, some policies pay disability insurance claims if you can't perform your old job tasks (partial disability), while others only cover you if you can't work any job at all (total disability).
Some policy options include "residual benefits," which makes up for lost income if you can still work but not perform all your normal tasks. Some policies also offer cost-of-living adjustments, which increases payouts from 4 to 10%. You may have a waiting period of as short as 90 days or as long as six months before you are allowed to collect. Also, the length of coverage may last anywhere from two years to five years, or until your turn 65 and can apply for Social Security benefits.

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Update August 24 - 2010 All About "Government Pension Long Term Disability Insurance" By Insurance Experts

If you become disabled through injury, sickness, or other circumstances and have not been able to work for a year (long term disability), then you may be eligible for social security disability insurance (SSDI) benefits. If your application is approved, you can collect the social security disablity insurance benefit until age 65 when is the time the benefit is transfered to the pension program.

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Disability Insurance 02 - Disability Covered by Government Pension Plan
By Kyle J Norton


As we mentioned in the previous article, most working people are covered under government insurance plan. In this article, we will discuss how government pension plan covers in case of disability of working people. These plans provide death benefits, income for surviving spouses and dependent children as well as disability income benefits for qualified member.
In order to receive the disability income from government pension plan, working people must 1.Be disabled, according to the definition of disability contained in the Government pension legislation.
2. Have contributed to government either a) In two of the last three years or b) Five of the last 10 years
3. Be under 65 years old
4. Not have received a government retirement pension for longer than 12 months.
The disability must be a physical or mental impairment that is both severe and prolonged: Severe means the inability to pursue any substantially gainful employment and prolonged means that such disability is likely to be of indefinite duration or is likely to result in death. Benefits begin after a three-month waiting period. They consist of a flat amount plus an earnings related amount, which equals 75% of the contributor's retirement pension. Also an addition flat amount is paid for each dependent child. Disability benefits are payable monthly and the amounts are indexed to go up each year according to increases in the Consumer Price Index.
This is payable only until age 65 or prior death or recovery. At age 65 the disability pension is replaced by the retirement pension.
I hope this information will help. If you need more information of the above subject, please visit my home page at:
Kyle J. Norton http://lifeanddisabitityinsuranceunderwriter.blogspot.com/ or
http://disabilityinsurance01.blogspot.com/ All rights reserved. Any reproducing of this article must have all the links intact. I have been studying natural remedies for disease prevention for over 20 years and working as a financial consultant since 1990

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