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Chi Dis Ben on record of parent who is dis ret or dec

Childhood Disability Benefit on Record of Parent who is Disabled, Retired, or Deceased

Adults with disabilities who are disabled before the age of 22 can draw benefits from the record of a parent who is disabled, retired or deceased. This benefit offers income support to children who, in many cases, still rely on their parents for support after they turn 18. This is a common benefit accessed by individuals with developmental disabilities once one or both parents stop working and begin collecting Social Security benefits on their own record or are deceased.

Funding Source

Childhood Disability Benefits are funded by either the Old-Age and Survivors Insurance Trust Fund or the Disability Trust Fund, depending on if the child’s parent is disabled, retired or deceased. Funds are collected through employer and employee contributions, commonly known as “FICA taxes” “payroll taxes” or “Social Security taxes”. Funds are allocated to these 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 funded by general revenues.

Eligibility

  • 18 or older
  • Disabled before the age of 22
  • Child of a parent who is disabled, retired or deceased worker who earned enough credits
  • Meets the Social Security definition of disability (inability to do any Substantial Gainful Activity by reason of any physical or mental impairment which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months)
  • Unmarried, unless married to another who gets a Title II Social Security benefit in most cases

How Benefit Amount is Calculated

A Childhood Disability beneficiary will receive up to 50% of the disabled worker’s benefit, up to 50% of the retired worker’s benefit and up to 75% of the worker benefit if he/she is a survivor.  There is a family maximum benefit so if more than one family member is drawing a benefit off of the worker’s account, the amount may be adjusted to assure that total benefits paid to family members does not exceed this maximum benefit.

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