The Social Security Administration just announced that Retirees will no longer be able to pay back benefits already received in exchange for higher Social Security payments going forward.

A little-known provision of Social Security law previously allowed individuals to begin payments at age 62, pay back all the benefits received at age 70 without interest, and then reclaim at a higher rate due to delayed claiming.

Under the new rules, Social Security beneficiaries may withdraw an application for retirement benefits only within 12 months of their first Social Security payment and are limited to one withdrawal per lifetime.

Another way Social Security beneficiaries were previously allowed to boost their checks was by suspending benefits already received retroactively, repaying the amount received, and then getting higher checks going forward. The new rules allow retirees to voluntarily suspend benefits only for months in which they did not receive payments. Beneficiaries may also suspend future payments beginning the month after the request is made.

These changes will be applied only to old-age benefit recipients, not survivor and disability beneficiaries.

New Rules Will Further Speed Benefits to Tens of Thousands of Americans with Disabilities

Michael J. Astrue, Commissioner of Social Security, just announced that the agency has published final rules that will further reduce the time it takes to decide applications for disability benefits from those persons with the most severe disabilities—a process that currently takes less than two weeks on average. The new rules allow disability examiners to make fully favorable determinations for adult cases under the agency’s Quick Disability Determination (QDD) and Compassionate Allowance (CAL) processes without medical or psychological consultant approval. It also will help the agency process cases more efficiently as it will give medical and psychological consultants more time to work on complex cases where their expertise is most needed.

“The new rules . . . will help us get disability benefits to the most severely disabled Americans even faster,” Commissioner Astrue said. “This year, more than 100,000 people benefited from our fast-track disability processes and received decisions in a matter of days rather than the months and years it can sometimes take. I am pleased that our fast-track processes will now be even faster and help speed much needed benefits to our most vulnerable citizens.”

Under Social Security’s QDD process, a predictive computer model analyzes specific data within the electronic disability file to identify cases where there is a high likelihood that the claimant is disabled and can quickly obtain medical evidence. The CAL process currently identifies 88 specific diseases and conditions that clearly qualify for Social Security and Supplemental Security Income disability benefits and can be fast-tracked.

The final rules, 20 CFR Parts 404 and 416, can be accessed through the Federal Register online at www.regulations.gov. They will be effective on November 12, 2010.

Additional information about Social Security’s Compassionate Allowances process is available at www.socialsecurity.gov/compassionateallowances.

Michael J. Astrue, Commissioner of Social Security, announced that benefit checks are being delivered to some Atlantic coast residents on Thursday, September 2nd, before the arrival of Hurricane Earl and ahead of the regular September 3rd payment date. About 737,000 beneficiaries in South Carolina, North Carolina, Virginia, Maryland, Delaware, Pennsylvania, New Jersey, New York, Rhode Island, Massachusetts, and Washington, D.C. are affected by this early check delivery.

“Delivering checks early to these residents eliminates one concern beneficiaries might have as they prepare for the storm,” Commissioner Astrue said. “As beneficiaries take steps to ensure their own safety, this is one step we can take to help them. They should also be aware that Direct Deposit is a more secure and convenient way to receive payments, particularly when natural disasters strike.”

Social Security worked closely with the U.S. Postal Service and the Department of the Treasury to make the early delivery of checks possible.

Most Medicare beneficiaries will continue to pay the same $96.40 Part B premium amount in 2010. Beneficiaries who currently have the Social Security Administration (SSA) withhold their Part B premium and have incomes of $85,000 or less (or $170,000 or less for joint filers) will not have an increase in their Part B premium for 2010.

For all others, the standard Medicare Part B monthly premium will be $110.50 in 2010, which is a 15% increase over the 2009 premium. The Medicare Part B premium is increasing in 2010 due to possible increases in Part B costs. If your income is above $85,000 (single) or $170,000 (married couple), then your Medicare Part B premium may be higher than $110.50 per month.

In other words in 2010:

Beneficiaries who currently have the part B premium withheld from their Social Security benefit will pay $96.40.

New Part B beneficiaries will pay $110.50 (because they did not have the premium withheld from their Social Security benefit in the previous year).

Beneficiaries who do not currently have the Part B premium withheld from their Social Security benefit will pay $110.50.

Higher-income beneficiaries pay $110.50 plus an additional amount, based on the income-related monthly adjustment amount (IRMAA).

The Red Book serves as a general reference source about the employment-related provisions of the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs. While the Red Book is primarily for educators, advocates, rehabilitation professionals and counselors who serve people with disabilities, it can also serve as a self-help guide for Social Security applicants and beneficiaries. The 2010 Red Book is available in English and Spanish at http://www.socialsecurity.gov/redbook/

For more information about going back to work while receiving Social Security disability benefits please contact Attorney Sheri Abrams at www.sheriabrams.com for an Appointment.

The Social Security Administration earlier this month mailed notices that contained incorrect January 2010 payment dates. These erroneous notices went to about 6 million beneficiaries who receive their payments on either the second, third, or fourth Wednesday of each month, and are part of the annual benefit notices that go to 52 million Social Security beneficiaries. In the notice the payment date is incorrectly shown as one week before what the actual date of payment will be. The other information in the notice, including the payment amount, is correct. Social Security is sending a letter explaining the error to beneficiaries who received the incorrect one as soon as possible.

“We apologize for the inconvenience and confusion these incorrect notices will cause,” said Michael J. Astrue, Commissioner of Social Security. “The problem was caused by an unfortunate human error. We are correcting the misinformation as quickly as possible, and we are reviewing our processes closely to prevent this type of mistake from happening in the future. People receiving Social Security benefits in January 2010 should know that their payment will arrive on the same payment day that it has arrived in the past.”

Most people have heard the terms “will” and “trust,” but not everyone knows the differences between the two. Both are useful estate planning devices that serve different purposes, and both can work together to create a complete estate plan.

One main difference between a will and a trust is that a will goes into effect only after you die, while a trust takes effect as soon as you create it. A will is a document that directs who will receive your property at your death and it appoints a legal representative to carry out your wishes. By contrast, a trust can be used to begin distributing property before death, at death or afterwards. A trust is a legal arrangement through which one person (or an institution, such as a bank or law firm), called a “trustee,” holds legal title to property for another person, called a “beneficiary.” A trust usually has two types of beneficiaries one set that receives income from the trust during their lives and another set that receives whatever is left over after the first set of beneficiaries dies.

A will covers any property that is only in your name when you die. It does not cover property held in joint tenancy or in a trust. A trust, on the other hand, covers only property that has been transferred to the trust. In order for property to be included in a trust, it must be put in the name of the trust.

Another difference between a will and a trust is that a will passes through probate. That means a court oversees the administration of the will and ensures the will is valid and the property gets distributed the way the deceased wanted. A trust passes outside of probate, so a court does not need to oversee the process, which can save time and money. Unlike a will, which becomes part of the public record, a trust can remain private.

Wills and trusts each have their advantages and disadvantages. For example, a will allows you to name a guardian for children and to specify funeral arrangements, while a trust does not. On the other hand, a trust can be used to plan for disability or to provide savings on taxes. Sheri Abrams, Attorney at Law, can tell you how best to use a will and a trust in your estate plan.

Unfortunately, a diagnosis of a terminal illness often comes with many expenses. If you need money to pay for your medical care or comfort, you may be able to use your life insurance policy to get some immediate cash. “Viatical settlements” allow terminally ill individuals to sell their life insurance policies. Alternatively, some insurance companies allow you to receive an accelerated death benefit.

A viatical settlement is similar to a life settlement, but it is designed for individuals that are terminally ill. You sell your policy to a company, which then collects the death benefit when you die. Most companies require that you have owned your policy for at least two years, your beneficiaries sign a release or waiver, you have a life expectancy of anywhere from two to four years (depending on the company), and you allow the company access to your medical records.

A company will usually pay more than the cash surrender value, but less than the death benefit, although the exact price depends on a number of factors. In determining price, companies look at your life expectancy, how long you have had the policy, and the face value of the policy, among other things.

Rather than selling your policy, some insurance companies allow you to collect a portion of your death benefit before you die. This is called an accelerated death benefit. This option may be included as part of your policy or you may have to pay extra for it.

Accelerated death benefits are paid under certain circumstances, usually the onset of a terminal illness, the need for long-term care, or the diagnosis of a specified medical condition. The amount you can receive may be capped and you may be able to receive either a lump sum or monthly payments. Any remaining amount will go to your beneficiaries when you die.

Both viatical settlements and accelerated death benefits could have tax consequences and affect Medicaid planning. Before taking either option, you should consult with attorney Sheri Abrams.

As part of the American Recovery and Reinvestment Act (aka the stimulus bill), Congress has authorized one-time $250 payments to most Social Security, Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) beneficiaries. Checks to those who were eligible for benefits under the programs during November or December 2008 or January 2009 will begin hitting the mail in early May and continue through the month.

According to the Social Security Administration (SSA), the payments will be distributed to beneficiaries in the same manner that they currently receive their benefit (either by check, debit card, or direct deposit) but the payments will not be included in the same transaction as a beneficiary’s regular monthly payment. This means that beneficiaries should be on the lookout for two separate payments during May.

People with special needs who receive both SSDI and SSI benefits will receive only one $250 payment, and SSDI beneficiaries under age 18 (or 19 if they are still in school) will not receive any payments at all. However, anyone receiving a payment does not have to worry about the additional income affecting his government benefits — the stimulus payments do not count as “income” for either program, and will not count as an available resource for nine months following receipt of the funds.

As part of the American Recovery and Reinvestment Act (“the stimulus bill”), Congress has authorized one-time $250 payments to most Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) beneficiaries.  Beneficiaries of either program who were eligible for benefits during November or December 2008 or January 2009 will probably receive the additional payment in May.

People with special needs who receive both SSDI and SSI benefits will receive only one $250 payment, and SSDI beneficiaries under age 18 (or 19 if they are still in school) will not receive any payments at all. However, anyone receiving a payment does not have to worry about the additional income affecting his/her government benefits — the stimulus payments do not count as “income,” for either program and will not count as an available resource for nine months following receipt of the funds.