Social Security Strives to Educate and Enlighten
The Social Security Administration is committed to explaining benefits in easy-to-understand, plain language. In fact, the Plain Writing Act of 2010 requires federal agencies to communicate information clearly in a way “the public can understand and use.”
That being said, it’s still quite complicated. To help people fully understand how Social Security works, the Social Security Administration devoted a Social Security Matters blog post to defining the following terms:
COLA is an acronym for Cost-of-Living Adjustment. COLAs help Social Security and Supplemental Security Income benefits keep pace with inflation. This year, recipients received a 2.8% COLA.
As you work and pay Social Security taxes, you earn credits that count toward your eligibility for future Social Security benefits. According to the post, you can earn a maximum of four credits each year. Most people need 40 credits to qualify for benefits.
Earnings record is the chronological history of the amount of money you earned each year during your working lifetime. The post explains that your credits remain on your Social Security earnings record even when you change jobs or have no earnings for a period of time.
COLA is a term all of us at The Seniors Trust are familiar with. We are committed to improving the financial well-being of older Americans through the passage of the Social Security Expansion Act. It will give retirees a fair annual COLA, an immediate benefits increase of about $200 a month, increased minimum benefits, and ensure the long-term solvency of the Social Security program.
