Traversing The Social Security Maze

QUESTION: I've been reading your column and think I have this right about my Social Security.
I have my own work history and will apply at age 62. When my husband retires at full retirement age of 66, will I be able to apply for the wife's spousal benefit? (It should be more than I get from my work history.)
What should I do?

J.C.
Spring Hill

ANSWER: While there is not quite enough information to be completely sure of the entire situation, from what I understand of your circumstance, you seem to have things pretty well nailed down.
You may take a Social Security benefit based on your own work record as early as age 62. However, you should understand that if you take the benefit early, the amount of the benefit will be reduced by 5/9ths of 1 percent for each month, up to 36 months, you are younger than the full retirement age - currently 66 - when you apply. The reduction is 5/12ths of 1 percent for each month in excess of 36.
As you probably understand, you cannot take a spousal benefit until your husband (or wife, if it is the other way around) begins taking his own Social Security benefit based on his own work record. But when he does begin taking his benefit, you may apply for a spousal benefit. If the spousal benefit is larger than the amount you receive on your own work record, your benefit will be increased by enough so that your benefit is equal to what your spousal benefit would be. If you are not yet at the full retirement age, your benefit will be reduced by 25/36ths of 1 percent for each month, up to 36 months, you are younger than 66. The reduction would be 5/12ths of 1 percent for each month in excess of 36.

QUESTION: My wife and I have been married more than 15 years. She is a school teacher. I am retired on disability. Would my wife be entitled to a widow's benefit at age 60 based on my Social Security record? Then could she change to unreduced benefits on her own record at age 66, if that mount is higher, or at age 62?

G.N.P.
Davie

ANSWER: Yes, your wife would be entitled to a widow's benefit upon your death if or when she is 60 years of age. The amount would be reduced by 28 1/2 percent from what she would be entitled to at age 66.
She could change to an unreduced benefit based on her own record at age 66 if that benefit would be higher than the widow's benefit. If she were to change at age 62, the benefit would be reduced by 5/9ths of 1 percent for each month, up to 36 months, she is younger than 66. The reduction would be 5/12ths on 1 percent for each month in excess of 36.

QUESTION: In a recent column you mentioned something about COBRA insurance information on the Internet. Since I don't have a computer, I cannot retrieve that information.
Is there any information regarding some law adopted a couple of years ago that affected COBRA?

S.T.
Brooksville

ANSWER: The law you may have in mind is the federal Health Insurance Portability and Protection Act (HIPPA). It provides that the waiting period for pre-existing conditions when you transfer from one insurance program to another cannot extend more than 12 months and the period is reduced by one month for every month you were covered either by COBRA or a combination of COBRA and health insurance while working.
COBRA is the Consolidated Omnibus Budget Reconciliation Act which, among other things, amended the Employee Retirement Income Security Act and the Public Health Service Act to protect the rights of retirees or employees who are downsized.
Information is available from the Florida State Insurance Commission at The Capitol, Plaza 11, Tallahassee, Fla. 32399.

If you have questions about any issues connected with aging, except medical conditions, please write to Life to the Fullest, Hernando Today, 13299 Cortez Blvd., Brooksville, Fla. 34613, or send e-mail to adontaft@yahoo.com. Please include your name and address.