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Benefit for parent raising chi of dec dis or ret

Benefit for Parent Raising Child of Deceased, Disabled, or Retired Worker

As a benefit for the family, Social Security will provide income support to parents who are raising the children of deceased, disabled or retired workers.

Funding Source

Benefits paid to parents raising the children of deceased or retired workers are paid by the Old-Age and Survivors Insurance Trust Fund. Benefits paid to parents raising the children of disabled workers are paid by the Disability Insurance Fund. Funds are collected through employer and employee contributions, commonly known as “FICA taxes” “payroll taxes” or “Social Security taxes”. Funds are allocated to the Funds and that allocation is set by law. Over the years, Congress has changed this allocation to account to assure continued solvency of either fund.

In 2012, individuals pay 4.2% of their earnings up to $110,100 and employers pay 6.2% of the individual income up to the same amount. The 2% differential, known as the “payroll tax holiday”, is set to expire after 2011 and individuals will pay 6.2% again. In 2012, self-employed individuals pay 10.4% of their earnings, down 2% as well. The “payroll tax holiday” is currently being funded by general revenues.

Eligibility

  • Widow/widower of deceased worker or,
  • Spouse of disabled or retired worker or,
  • Surviving divorced spouse; and
  • Caring for the child of a deceased, disabled, or retired worker who earned enough credits
  • The child being cared for is under age 16 or disabled and receiving Social Security benefits

How Benefit Amount is Calculated

Surviving spouses receive up to 75% of the worker’s benefit amount. Spouses of retired workers receive up to 50% of the worker’s benefit amount. Spouses of disabled workers receive up to 50% of the worker’s benefit amount.

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