major motivation for the establishm

major motivation for the establishment of Social Security was to provide a
means of income support for this unfortunate generation of the elderly.
The basic operation of the program is straightforward. Workers pay a tax on
their earnings, and the money from this tax is deposited into a trust fund that
is invested in government bonds. Checks written on this trust fund are paid to
those who enroll in the Social Security program, which is open to most people
over age 62. Checks are paid until the recipient dies, and, if there is a surviving
spouse, he or she receives a payment until his or her own death.
Program Details
There are a variety of details on how the Social Security program operates in
practice. Descriptions of some of the most important details follow. Note that
all numbers and eligibility requirements described in this section reflect the
Social Security program in place in 2009.
How Is Social Security Financed? Almost all workers in the United States
pay the Federal Insurance Contributions Act (FICA) tax on their earnings. This
tax is currently 6.2%. In addition, their employers (or the workers themselves, if
they are self -employed) pay a 6.2% tax on these same earnings, for a total tax
burden of 12.4%. This tax is levied only on the first $102,000 of earnings.5
major motivation for the establishment of Social Security was to provide a
means of income support for this unfortunate generation of the elderly.
The basic operation of the program is straightforward. Workers pay a tax on
their earnings, and the money from this tax is deposited into a trust fund that
is invested in government bonds. Checks written on this trust fund are paid to
those who enroll in the Social Security program, which is open to most people
over age 62. Checks are paid until the recipient dies, and, if there is a surviving
spouse, he or she receives a payment until his or her own death.
Program Details
There are a variety of details on how the Social Security program operates in
practice. Descriptions of some of the most important details follow. Note that
all numbers and eligibility requirements described in this section reflect the
Social Security program in place in 2009.
How Is Social Security Financed? Almost all workers in the United States
pay the Federal Insurance Contributions Act (FICA) tax on their earnings. This
tax is currently 6.2%. In addition, their employers (or the workers themselves, if
they are self -employed) pay a 6.2% tax on these same earnings, for a total tax
burden of 12.4%. This tax is levied only on the first $102,000 of earnings.5
Who Is Eligible to Receive Social Security? To be eligible to collect Social
Security benefits, a person must have worked and paid this payroll tax for 40 quarters
over their lifetime (the equivalent of 10 years), and must be age 62 or older.
How Are Social Security Benefits Calculated? When eligible, the Social
Security claimant receives an annuity payment, a payment that lasts until the
recipient’s death. The amount of this annuity payment is a function of the recipient’s
average lifetime earnings, where each month’s earnings are expressed in
today’s dollars by inflating their value for increases in the wage level since the
earnings occurred. In particular, the government averages a person’s earnings over
the person’s 35 highest earning years. If a person has worked for fewer than 35 years,
say for 30 years, the formula just treats those missing years as years of zero earnings,
so the benefit would be based on averaging 30 years of earnings and five
years of zeros. If a person has worked for more than 35 years, the lowest earnings
years are thrown out when computing the average. This 35-year average of real
monthly earnings is called the Average Indexed Monthly Earnings, or AIME.


Why Choose 35 Years?
The choice of a 35-year averaging period by Social Security reflects the trade -
off of two considerations. First, individuals should not be penalized for years of
part -time work or particularly low earnings. If you graduate and earn a large

Hasil (Bahasa Indonesia) 1:

major motivation for the establishment of Social Security was to provide ameans of income support for this unfortunate generation of the elderly.The basic operation of the program is straightforward. Workers pay a tax ontheir earnings, and the money from this tax is deposited into a trust fund thatis invested in government bonds. Checks written on this trust fund are paid tothose who enroll in the Social Security program, which is open to most peopleover age 62. Checks are paid until the recipient dies, and, if there is a survivingspouse, he or she receives a payment until his or her own death.Program DetailsThere are a variety of details on how the Social Security program operates inpractice. Descriptions of some of the most important details follow. Note thatall numbers and eligibility requirements described in this section reflect theSocial Security program in place in 2009.How Is Social Security Financed? Almost all workers in the United Statespay the Federal Insurance Contributions Act (FICA) tax on their earnings. Thistax is currently 6.2%. In addition, their employers (or the workers themselves, ifthey are self -employed) pay a 6.2% tax on these same earnings, for a total taxburden of 12.4%. This tax is levied only on the first $102,000 of earnings.5major motivation for the establishment of Social Security was to provide ameans of income support for this unfortunate generation of the elderly.The basic operation of the program is straightforward. Workers pay a tax ontheir earnings, and the money from this tax is deposited into a trust fund thatis invested in government bonds. Checks written on this trust fund are paid tothose who enroll in the Social Security program, which is open to most peopleover age 62. Checks are paid until the recipient dies, and, if there is a survivingspouse, he or she receives a payment until his or her own death.Program DetailsThere are a variety of details on how the Social Security program operates inpractice. Descriptions of some of the most important details follow. Note thatall numbers and eligibility requirements described in this section reflect theSocial Security program in place in 2009.How Is Social Security Financed? Almost all workers in the United Statespay the Federal Insurance Contributions Act (FICA) tax on their earnings. Thistax is currently 6.2%. In addition, their employers (or the workers themselves, ifthey are self -employed) pay a 6.2% tax on these same earnings, for a total taxburden of 12.4%. This tax is levied only on the first $102,000 of earnings.5Who Is Eligible to Receive Social Security? To be eligible to collect SocialSecurity benefits, a person must have worked and paid this payroll tax for 40 quartersover their lifetime (the equivalent of 10 years), and must be age 62 or older.How Are Social Security Benefits Calculated? When eligible, the SocialKeamanan pemohon menerima pembayaran anuitas, pembayaran yang berlangsung sampaikematian Penerima. Jumlah pembayaran anuitas ini adalah fungsi dari Penerimarata-rata pendapatan seumur hidup, dimana setiap bulan penghasilan diekspresikan dalamDollar hari ini oleh memompa nilai mereka untuk kenaikan tingkat upah sejakpenghasilan terjadi. Secara khusus, pemerintah rata-rata penghasilan seseorang atas35 orang tertinggi penghasilan tahun. Jika seseorang telah bekerja untuk kurang dari 35 tahun,mengatakan selama 30 tahun, formula hanya memperlakukan mereka hilang tahun sebagai tahun penghasilan nol,Jadi keuntungan akan didasarkan pada rata-rata 30 tahun pendapatan dan limatahun dari nol. Jika seseorang telah bekerja selama lebih dari 35 tahun, penghasilan terendahtahun yang dilempar keluar ketika komputasi rata-rata. Rata-rata 35 tahun ini nyatapenghasilan bulanan disebut pendapatan bulanan rata-rata diindeks, atau AIME.
Mengapa memilih 35 tahun?Pilihan jangka waktu rata-rata 35 tahun oleh jaminan sosial mencerminkan perdagangan-dari dua pertimbangan. Pertama, individu seharusnya tidak dihukum selama bertahun-tahunBagian - waktu pendapatan pekerjaan atau sangat rendah. Jika Anda lulus dan mendapatkan besar