Social Security Retirement

You might think because you have “Power of Attorney” for your relative or loved one you will be able to conduct business for them with the Social Security Administration. The agency does not recognize “Power of Attorney” and this document will get you no information from Social Security about your relative or loved one.

Social Security does have a process for representation. The agency can designate you as the “Representative Payee” for this individual if you have good cause for becoming one. To do this you would need to take your “Power of Attorney” documents and photo identification to the local Social Security office and fill out the Representative Payee application. You don’t need “Power of Attorney” to become payee, just a good reason for doing so.

It takes the local Social Security office about 30 to 60 days to process the application. If your application is approved Social Security will send you a letter letting you know that you have been appointed as Representative Payee for the person in question. All correspondence while you are payee will be sent in your name for the beneficiary. Payment will also be issued in your name for the person you are Payee for. You are responsible for seeing that the Social Security check is spent in an appropriate manner.

All representative payees are required to document in an annual report how the money you are responsible for is being spent. Social Security will mail you an annual “Representative Payee Report” for this purpose. Being a representative payee is not a responsibility you should take lightly; if the person you are seeing is overpaid for example, you could be liable for paying back the overpayment.

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Millions of people request replacement Social Security cards every year. Social Security has recently changed the rules for accepting applications for these cards. Here is what you need to know to get your Social Security card replaced.

In order to replace your Social Security card you will need to fill out an application; the application is Social Security form SS-5. You must sign and date the form. If you are a US citizen you will need to prove your identity for the application to be processed. You need to provide your original driver’s license, State ID card, or US passport to have the application processed. Social Security does not accept photocopies and you will be required to present original documents for the replacement Social Security card. If you are a non US citizen you will be required to show current immigration documents, the unexpired passport from your country of origin, or the work permit issued to you by Homeland Security.

It is possible to submit the application through the mail; however, you will need to mail the original identification documents to Social Security for them to process the application. The local Social Security office will mail your identification back to you when they finish. If you are uncomfortable with the idea of mailing your identification your best bet is to visit your local Social Security office and submit the application in person.

If you are changing your name due to a marriage or divorce you will need to show proof of the name change. This proof could be your marriage license or marriage certificate, or your divorce decree or court order authorizing the name change. You will generally be required to show proof of identity in both names before Social Security will approve the change.

Social Security has also placed limits this year on the number of replacement cards you can request. The limit on replacement cards are three per year and a lifetime limit of ten. If you receive a replacement card due to a name change, that card is not counted towards your annual or lifetime limit. Social Security states they are imposing these limits to make it more difficult for criminals to exploit Social Security numbers with false identification or immigration papers.

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If you plan on starting your Social Security Retirement benefits at age 62, there are several things you need to know. To start your benefits you will need to schedule an appointment or apply online; the earliest you can call to schedule the appointment is three months prior to your 62nd birthday.

If you start receiving your Retirement benefits from Social Security at age 62, you will be receiving a reduced amount. Social Security reduces your monthly benefits by the number of months prior to your full retirement age that you start benefits. For most people, you will receive more money in the long run by drawing Social Security between age 62 and your full retirement age than you will by waiting.

The only catch is that your earnings from employment are limited. In 2006, the most you can earn without Social Security taking money away from your benefits is $12,480. For most people, the year you reach your full retirement age you can earn $33,240; the year after this there is no limit on your earnings. If you earn over the $12,480 limit, Social Security will reduce your benefits by $1 for every $2 you earn over the limit. The year that you reach your full retirement age if you earn over the $33,240 limit, Social Security will reduce your benefits by $1 for every $3 you earn over the limit.

To start receiving your monthly check you will need to prove that you are a US citizen. Social Security requires original documents so you will need to produce your original birth certificate or US passport. It takes Social Security about 3 months to process your application; you will receive an award letter letting you know how much you will receive and when shortly after they have finished.

If you are planning your budget based on the first Social Security check, remember that Social Security benefits are paid one month behind, so you may not receive your first check for two months after your birthday. For example, if you turn 62 in May, your first month of eligibility is June; you will receive the check for June in July.

To schedule an appointment to file for your Retirement benefits contact Social Security at 1-800-772-1213.

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