Years of Coverage (Social Security)
Encyclopedia
Years of coverage, for purposes of the American
Social Security
program, are years in which a beneficiary is considered to have contributed a substantial amount into the Social Security Trust Fund
. Years of coverage are used in the computations in whether or not and how to apply the Windfall Elimination Provision
. Years of coverage are not the amounts used in similar computations, such as with Quarter Credits.
A beneficiary is credited with a year of coverage for a year after 1950, when contributions were identified by year, based on whether contributions in that year surpass a specific threshold. A beneficiary may not earn more than one year of coverage in any given year. The thresholds for years after 1950 are:
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
Social Security
Social Security (United States)
In the United States, Social Security refers to the federal Old-Age, Survivors, and Disability Insurance program.The original Social Security Act and the current version of the Act, as amended encompass several social welfare and social insurance programs...
program, are years in which a beneficiary is considered to have contributed a substantial amount into the Social Security Trust Fund
Social Security Trust Fund
In the United States, the Social Security Trust Fund is a fund operated by the Social Security Administration into which are paid contributions from workers and employers under the Social Security system and out of which benefit payments to retirees, survivors, and the disabled, and general...
. Years of coverage are used in the computations in whether or not and how to apply the Windfall Elimination Provision
Windfall Elimination Provision
The Windfall Elimination Provision is a statutory provision in United States law which affects benefits paid by the Social Security Administration under Title II of the Social Security Act...
. Years of coverage are not the amounts used in similar computations, such as with Quarter Credits.
Calculating years of coverage
Years of coverage are calculated in two different manners. Because the amount paid into the Social Security Trust Fund were not identified by year prior to 1951, Years of coverage before 1951 are determined by dividing pre-1951 earnings by $900.00 with any remainder dropped. The resulting number, limited to 14, is the number of years of coverage a beneficiary is credited for earnings before 1951. The limit of 14 represents the number of years from 1937, when contributions began, through 1950.A beneficiary is credited with a year of coverage for a year after 1950, when contributions were identified by year, based on whether contributions in that year surpass a specific threshold. A beneficiary may not earn more than one year of coverage in any given year. The thresholds for years after 1950 are:
| Year | | Threshold | | Year | | Threshold | | Year | | Threshold |
|---|---|---|---|---|---|
| 1951 | $900.00 | 1971 | $1,950.00 | 1991 | $9,900.00 |
| 1952 | $900.00 | 1972 | $2,250.00 | 1992 | $10,350.00 |
| 1953 | $900.00 | 1973 | $2,700.00 | 1993 | $10,725.00 |
| 1954 | $900.00 | 1974 | $3,300.00 | 1994 | $11,250.00 |
| 1955 | $1,050.00 | 1975 | $3,525.00 | 1995 | $11,325.00 |
| 1956 | $1,050.00 | 1976 | $3,825.00 | 1996 | $11,625.00 |
| 1957 | $1,050.00 | 1977 | $4,125.00 | 1997 | $12,150.00 |
| 1958 | $1,050.00 | 1978 | $4,425.00 | 1998 | $12,675.00 |
| 1959 | $1,200.00 | 1979 | $4,725.00 | 1999 | $13,425.00 |
| 1960 | $1,200.00 | 1980 | $5,100.00 | 2000 | $14,175.00 |
| 1961 | $1,200.00 | 1981 | $5,550.00 | 2001 | $14,925.00 |
| 1962 | $1,200.00 | 1982 | $6,075.00 | 2002 | $15,750.00 |
| 1963 | $1,200.00 | 1983 | $6,675.00 | 2003 | $16,125.00 |
| 1964 | $1,200.00 | 1984 | $7,050.00 | 2004 | $16,275.00 |
| 1965 | $1,200.00 | 1985 | $7,425.00 | 2005 | $16,725.00 |
| 1966 | $1,650.00 | 1986 | $7,875.00 | 2006 | $17,475.00 |
| 1967 | $1,650.00 | 1987 | $8,175.00 | 2007 | $18,150.00 |
| 1968 | $1,950.00 | 1988 | $8,400.00 | 2008 | $18,975.00 |
| 1969 | $1,950.00 | 1989 | $8,925.00 | ||
| 1970 | $1,950.00 | 1990 | $9,525.00 |
Sources
- Social Security Online. Social Security Administration. www.ssa.gov.
- Social Security Program Operations Manual System. Social Security Administration. https://s044a90.ssa.gov/apps10/poms.nsf/partlist!OpenView.
- SSA Publication No. 21-059 A Brief History. Social Security Administration. August 2005.
External links
- www.ssa.gov / Alternate - Official website of the Social Security Administration
- Online WEP Calculator