Elder Law “As you age, life is a continuously shrinking Island”
INTRODUCTION
A. Generalizations of Elderly
1. Loss of Mental Capacity – dementia and short-term memory loss
2. Retirement – loss of income = inability to pay health care costs (SS = 40% wages)
3. Physical Decline – lose autonomy, less energy
4. Social Isolation
5. Lots of Free Time
B. Stats
1. 35 million 65+, 13% of population (Boomers turn 65 in 2011)
2. 4 million 85+, almost all the limitations, 4:1 woman to man ratio
3. 100,000 over 100
4. Life Expectancy
a. Women – 19 years past 65
b. Men – 13 years past 65
C. Three Legged Stool of Retirement
1. Savings (pension)
2. Employment Related pension (deferred payment for prior work)
3. Social Security
D. Financial Stability for Elderly
1. Save More
2. Increase Pensions
3. Cut SS altogether – Individual Savings Accounts
4. Raise SS Tax
5. Children care for Parents
COMPETANCY
A. Autonomy v. Protection
B. Book –Ethics Rules
C. Balance clients wished with best interest, problematic when clients wishes irrational.
SOCIAL SECURITY
BASIC CONCEPTS
A. Entitlement paid to workers who paid S.S. Wage Tax
1. Ø Status program only b/c 65
2. Must have wages that you paid on for specified time
3. Greater your wages, Higher benefits paid
B. Rationale: Protection against Poverty, Ø as a sole source of income
1. Yet ½ of Elderly use SS as sole income.
2. Average Retiree: $845/month, up to MAX of $18,432/year.
3. Surviving Spouse: Amount spouse would’ve received, if greater than their benefit.
C. Adopted as Basic Social Insurance.
1. Replacement for lost earnings. (Workers Comp., Unemployment Insurance, & AFDC)
2. S.S. paid workers too old to work. Relieved middle aged couples from supporting elderly
D. Other Factors
1. Self-financing.
2. Mandatory [PAGES 151-152]
3. Losses very low whereas Benefits can be very high
4. Administrative costs very low, very efficient program.
E. Elements of Social Security
1. Insurance
a. If injured/killed, provides for your family.
b. SS different b/c everyone contributes, but everyone collects.
2. Welfare
a. Different status necessary to collect.
b. Not Dependent on earnings
ELEIGIBILITY
A. MUST have JOB subject to OASDI Payroll taxes
1. FICA
a. 6.20% on Wages, up to $80,400
b. All wages Subject to 1.45% Medicare Tax
c. Combined rate on $80,400 is 7.65%
2. Employer Matching
a. Match contributions to FICA
b. Self-Employed – Tax is doubled (SECA)
3. More Aboot Taxes
a. All taxes (FICA & SECA) placed in S.S. Trust Fund
b. Rece
unt equal to 50% of their spouse’s benefits. (150% of higher benefit)
3. At Death of the spouse, Eligible for Greater of benefits based on own earnings or 100% of spouses (so at least 100% of higher benefit)
C. Divorced Spouses of Retired Workers
1. Unmarried divorced spouses receive retirement benefits at 62 if divorced from worker at least two years and if marriage lasted at least 10 years
2. Divorced worker need not be retired, but must be 65 & Eligible for SS.
3. Divorced spouse same rights to choose as current spouse, as in 2,3 above.
4. Rights of a former spouse Ø affect benefit rights of current spouse.
C. Dependents of Disabled or Deceased Workers
1. Unmarried children under 18 Eligible for benefits
2. Benefits paid to dependant grandchildren and great-grandchildren when parents deceased.
D. Survivor Benefits
1. Spouses of deceased workers fully/currently insured Eligible for monthly survivor benefits if marriage lasted for at least 9-months.
2. Full benefits paid at 65. While benefits are payable at any age to mothers or fathers who are widowed w/child under 16/or disabled.
