Social Security Glossary of Terms

FICA tax. The payroll tax that funds Social Security and Medicarelevied under the Federal Insurance Contributions Act (FICA). The Social Security portion is 12.4 percent of gross wages up to an annually adjusted cap (for 2025it's $176,100). The Medicare portion is 2.9 percent of all earnings. Employees and employers each pay half.

File and suspend. A now-defunct strategy for married couples to maximize benefits. It allowed a spouse to receive family benefits on the record of a mate who had claimed but then voluntarily suspended his or her own retirement benefit. In this way the couple could receive some money from Social Security while both spouses earned delayed retirement credits to boost their eventual retirement payments.

The Bipartisan Budget Act of 2015 outlawed this practice. Retired workers can still suspend their retirement benefitsbut their mates cannot draw spousal benefits during the suspension period.

Full retirement age (FRA). The age at which you become entitled to the full retirement benefit calculated from your earnings history (or to the full spouse's or survivor benefit calculated from a family member's work record). Claiming Social Security before FRA reduces your benefit.

The full retirement age is based on your year of birth. For retirement and spouse benefitsIt is 66 and 8 months for people born in 195866 and 10 months for those born in 1959 and 67 for those born in 1960 and after. FRA differs for survivor benefits — it is 66 and 4 months for surviving spouses born in 1958 and is rising incrementally to 67 for those born in 1962 and after.

Full retirement benefit (FRB). The benefit you receive at full retirement age. It is equal to 100 percent of the primary insurance amount. Retirement benefits increase if claimed after full retirement ageup to age 70.

G

Gainful activity. Work you do for pay. The Social Security Administration annually sets a dollar amount of gainful activity it considers “substantial.” If you earn moreyou cannot collect disability benefits (except in limited circumstances involving efforts to return to the labor force). The threshold for substantial gainful activity in 2025 is $1,620 per month ($2,700 for people who are blind).

Government Pension Offset (GPO). A Social Security rule that reduced the dependent benefits paid to a spouseformer spouse or surviving spouse on another person's work record if the dependent received a pension from a government job in which he or she did not pay FICA taxes. Congress repealed the GPO when it passed the Social Security Fairness Act in December 2024.

H

Hearing. An appealusually before an administrative law judgeof a decision by the Social Security Administration on a benefit matter. If an adverse ruling is going to be reversedit is most likely to happen at this stage of the review process.

I

Insured status. Your status toward eligibility for Social Securitybased on your total number of Social Security credits. Generallyyou are “fully insured” at 40 creditsthe level to qualify for retirement benefits for yourself and spousal and survivor benefits for your family.

In some circumstancesthe widow or widower and children of a worker who dies with “currently insured status” (as few as six credits) may collect a form of survivor benefits. See “mother's or father's benefit.”

International Social Security Agreement. A U.S. agreement with another country to coordinate Social Security with the comparable program in that country. Also called “totalization agreements,” these pacts ensure that:

• Americans working in those countries (and people from those countries working in the U.S.) do not pay Social Security taxes in both places on the same income.
• Those workers can combine credits from both countries if necessary to qualify for benefits in one of them.

As of January 2025 the U.S. had such agreements with 30 countries.

L

Listing of impairments. An official compilation of highly severe conditions. The Listing of impairments lays out detailed criteria that enable an individual to qualify for Social Security disability benefits. The listing of impairments makes up the bulk of the Blue Book.

Lump-sum death payment. Sometimes called a death benefita one-time payment of $255 to the spouse orin some caseschild of a Social Security–covered worker who dies. The survivor must file for the lump-sum death benefit within two years of the worker's death.

M

Marriage. A legal marriagein which one spouse (or ex-spouse) is entitled to collect Social Security benefits on the earnings record of another. This includes same-sex marriages and may include state-recognized common-law marriages.

Maximum family benefit. The ceiling on benefits that can be paid collectively to family members of a wage earner on that person's earnings recordincluding retirementdisabilityspousalchildren's or survivor benefits. Also known as family maximum.

If the wage earner of record is retired or deceasedthe family maximum will be between 150 percent and 188 percent of his or her primary insurance amount. For a disabled worker's familyit is between 100 and 150 percent of the worker's primary insurance amount.

Maximum taxable earnings. Also known as the contribution and benefit basethis is the amount of a person's yearly gross income that is subject to Social Security taxesand the maximum amount of earnings that can be counted in the Social Security benefit calculation. The figure is adjusted annually based on national wage trends; in 2025 it is $176,100.

Medicaid. A health insurance program for low-income individuals and familiesprimarily funded by the federal government but largely run by the states. In most statespeople receiving Supplemental Security Income (SSI) are automatically eligible for Medicaid.

Medicare. The U.S. government health care program primarily servng individuals 65 and older. Younger people can qualify if they suffer from end-stage renal disease or amyotrophic lateral sclerosis (ALS) or have been receiving Social Security disability benefits for at least two years. The Social Security Administration manages Medicare enrollment.

Medicare has four parts:

• Medicare Part A (hospital insurance)
• Medicare Part B (medical insuranceincluding doctors' visits and outpatient care)
• Medicare Part C (better known as Medicare Advantageprivate plans that cover everything in parts A and B and may offer additional coverage)
• Medicare Part D (prescription-drug coverage)

Month of election. In a claim for retirementspouse's or widow(er) benefitsthe month an applicant chooses for benefits to begin.

Mother's or father's benefit. A form of benefit available to the spouse (or divorced spouse) of a deceased wage earner on the basis of caring for children of that worker if they are under age 16 or have a disability.

My Social Security. An online account you can set up at the Social Security website and use to check your earnings historyget estimate of future benefits and access services such as requesting a replacement Social Security card or changing direct deposit information for benefit payments. You do not need to be collecting benefits to open a My Social Security account.

N

National Average Wage Index. A measure of wage trends calculated by Social Security and used to annually update the earnings limitmaximum taxable earnings and other key figures that determine benefit eligibility and payment amounts.

Non-covered employment. Work for an employer that did not withhold Social Security taxes from your wages. The vast majority of U.S. workplaces are coveredbut some state and local government offices are notnor is work in most other countries.

Number holder.  The individual upon whose lifetime earnings record a claim for benefits is madeincluding claims by spouses and other dependents. Also known as a wage earnerworker or breadwinner.

O

Offset. A reduction in Social Security Disability Insurance (SSDI) payments if the beneficiary is also collecting workers’ compensation or some other form of public disability benefit. Under federal rulesSSDI and workers’ comp combined cannot exceed 80 percent of the recipient's average earnings from their prior employment; if they dothe offset is applied to get the combined benefits below the cap.

Old-AgeSurvivors and Disability Insurance (OASDI). The formal name for Social Securityencompassing benefits for retireespeople with disabilitiesdependent family members and survivors.

Onset date. The beginning date for a disability under Social Security's definition — that iswhen a worker's medical condition prevents them from working. When it approves a claim for disability benefitsSocial Security determines the “established onset date” and uses it to determine when payments should start.

Overpayment notice. Formal notification that the Social Security Administration believes you've been paid more in benefits than you're entitled to and owe it money. You may challenge an overpayment notice by filing a request for reconsiderationor ask Social Security to waive recovery of the debt.

P

Presumptive disability. A finding by Social Security that applicants for Supplemental Security Income (SSI) who have certain severe medical conditions or are terminally ill are likely to have their claims approved and can receive up to six months of benefit payments while awaiting a formal decision.

Primary insurance amount (PIA). An amount equal to your Social Security benefit at full retirement age. The PIA is derived from a wage earner's average indexed monthly earnings by a progressive formula — that isone weighted to provide proportionally higher benefits to lower-income workers. It is also the base from which the family maximum is calculated.

Program Operations Manual System (POMS). The primary guide for Social Security Administration employees in making determinations about benefits. Most of it is publicly available online.

Progressivity. The feature of Social Security designed to make benefits relatively more generous for low earners than for high earners. Progressivity is achieved mainly through the formula used to calculate the primary insurance amount.

Protective filing date. The date you contact the Social Security Administration about making an application for benefits. The protective filing date may help you gain back benefits if much time passes before the application is complete. Applications for retirementdisability and other Social Security benefits must be completed within six months of the protected filing dateSupplemental Security Income applications within 60 days.

Q

Quarters of coverage. Now known as Social Security creditsthese are units that count toward entitlement for benefitsbased on earnings in covered employment.

The amount of each unit is adjusted annually based on trends in wage growth. In 2021you receive one credit for $1,470 in earnings on which you paid Social Security taxes. You can earn up to four credits per year. You must have at least 40 credits to qualify for Social Security retirement benefits.

R

Reconsideration. The first step in challenging an adverse decision on an application for benefits. It involves a review by a Social Security official who was not involved in the initial denial of your claim and is usually required before you can request a hearing with an administrative law judge.

Red Book. A comprehensive guide to employment opportunities open to people with disabilities who are receiving benefits under the Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI) programs.

Reduction factor. The monthly amount by which benefits can be reduced if claimed before full retirement age.

Replacement rate. The percentage of preretirement earnings replaced by Social Security benefits. It is about 40 percent for average earnersmore for low earnersless for high earners.

Representative payee. An individual or organization authorized to receive and manage Social Security benefits on behalf of a beneficiary who is unable to do so. Payees must use the benefits to meet the needs of the beneficiarysave anything extra and keep records.

Residual functional capacity. An individual's remaining ability to function in the workplacedespite the limitations of a physical or mental condition. This can be an important factor in Social Security's assessment of whether an individual can work or has a disability.

Restricted application. A method of applying for one type of Social Security benefit and excluding others for which you may also be eligible. In generalan application filed with Social Security covers all benefits for which you qualify. Restricted applications are most common when the choice is between retirement and survivor benefits; there are tight limits on using them to pick between retirement and spouse's benefits.

Retirement benefits. Payments made to workers who've earned Social Security retirement coveragestarting as early as age 62. The Social Security Administration sometimes calls such payments retirement insurance benefits (RIB) or retired-worker benefits.

Retroactive benefits. Benefit payments predating the time of applicationsometimes available to individuals older than full retirement agepeople with disabilities and certain dependents.

S

SECA tax. The payroll tax for Social Security and Medicare paid by self-employed people under the Self-Employment Contribution Act (SECA). The Social Security portion is currently set at 12.4 percent of net earnings up to a yearly cap known as maximum taxable earnings ($176,100 in 2025). The Medicare portion is 2.9 percent on all net earnings — there is no cap.

Social insurance. An idea imported from Europe that national governments could adapt insurance principles for the benefit of all members of a society.

Social Security Act. The 1935 federal law that created the Social Security program. The original act included benefits for retirees and the unemployedamong other provisions. The law was amended in 1956 to add disability as a benefit category.

Social Security Administration (SSA). The federal agency that runs Social SecuritySupplemental Security Incomeand enrollment in Medicare parts A and B. The SSA is headquartered in Baltimore and maintains more than 1,200 field offices in communities across all 50 statesthe District of Columbia and U.S. territories.

Social Security credits. Formerly known as quarters of coverageSocial Security credits are units that count toward entitlement for benefitsbased on earnings in covered employment — a job or self-employment in which you paid Social Security taxes.

The amount of each unit is adjusted annually based on trends in wage growth. In 2025you receive one credit for $1,810 in covered earnings. You can earn up to four credits per year. You must have at least 40 credits to qualify for Social Security retirement benefits.

Social Security Disability Insurance (SSDI). Monthly benefit payments available to people who are unable to work due to disabilityand to members of their families. SSDI is funded by Social Security taxes and benefits are calculated from the recipient's earnings recordas are retirement benefits.

Social Security Handbook. A comprehensive guide to Social Security and its regulationswritten for the public and available online.

Social Security number (SSN). The nine-digit identifier for Social Securityusually assigned during infancy. New numbers are assigned randomly under a system adopted in 2011.

Social Security statement. A personal summary of Social Security benefits you've earned and projected future benefits. You can view your Social Security statement online by opening a My Social Security account. If you do not have an online accountSocial Security will mail you a statement three months before your 60th birthday and will continue to do so annually until you claim your benefits.

Social Security trust funds. Separate accounts in the U.S. Treasury that hold the taxes collected under the Federal Insurance Contributions Act (FICA) and the Self-Employment Contributions Act (SECA)and from which Social Security benefits are paid. There are two such funds: the Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund.

Special earnings limit rule. An exception to Social Security's earnings limitwhich subjects beneficiaries below full retirement age to a reduction of benefits if they continue to work and their income exceeds a certain yearly threshold.

The normal earnings limit is based on full-year income. The special rule allows Social Security to apply a monthly earnings limit during one calendar yearusually the one in which you start collecting benefits. That wayyour Social Security payments are not reduced by what you earned in the part of the year predating your retirementeven if that income exceeds the annual cap.

Spouse's benefit. A type of Social Security benefit available to married couples. One spouse can claim up to 50 percent of the other spouse's full retirement benefitdepending on the age of the claimant. Also called a spousal benefit.

Substantial gainful activity (SGA). An income-based factor In eligibility for disability benefits. A person whose work earnings exceed a monthly threshold is considered by Social Security to be engaged in substantial gainful activity and ineligible for disability benefits.

The cap is adjusted annually for national wage trends. In 2025it is $1,620 a month for most disability beneficiaries and $2,700 a month for those who are blind. Both figures apply to people applying for and receiving Social Security Disability Insurance (SSDI) benefits. For Supplemental Security Income (SSI)only the non-blind limit appliesand only at the time you are filing a claim for SSI.

Supplemental Security Income (SSI). A cash assistance program run by the Social Security Administration that pays monthly benefits to low-income individuals who are age 65 and overblind or have a disability. SSI benefits are paid out of general U.S. tax revenuenot out of Social Security taxes.

Surviving divorced spouse. Also called a divorced widow or widowerthe living former spouse of a deceased worker who paid into Social Security. A surviving divorced spouse may be able to collect survivor benefits on the late ex-spouse's earnings recordif the marriage lasted at least 10 years.

Survivors benefit. A type of Social Security payment available to surviving spouses and children of a late wage earnerbased on the deceased's earnings record. A worker's elderly parentsgrandchildren and ex-spouses may also be eligible for survivor benefits.

T

Totalization agreement. A U.S. agreement with another country to coordinate Social Security with the comparable program in that country. Also called “International Social Security Agreements,” these pacts ensure that:

• Americans working in those countries (and people from those countries working in the U.S.) do not pay Social Security taxes in both places on the same income.
• Those workers can combine credits from both countries if necessary to qualify for benefits in one of them.

As of April 2021 the U.S. had such agreements with 30 countries.

Treating doctor. A physician or psychologist who treats an individual who has applied for disability benefits. The Social Security Administration gives significant weight to the observations of a treating doctor in weighing disability claims.

Trial work period. A span of nine months in which someone getting Social Security disability benefits may work without interruption of benefits. During the trial work periodthe restriction on substantial gainful activity isn't enforced. The nine months of trial work can be spread over five years.

Trustees report. A detailed annual disclosure of Social Security's finances released by its board of trustees. The six-member board includes the secretary of the treasurythe commissioner of Social Securitythe secretary of health and human servicesthe secretary of labor and two representatives of the public.

V

Vocational expert (VE). A government-paid occupational expert who may testify at a disability hearing to help Social Security determine if the applicant can still do his or her previous work or other work. The VE's testimony will primarily cover the type of skill and exertion required to perform the applicant's previous job or other jobs in the economy.

Voluntary suspension. A request by a wage earner to temporarily halt retirement benefits so he or she can earn delayed retirement credits and increase their benefit amount. Only beneficiaries between full retirement age and 70 can suspend benefits.

W

Wage earner. The individual upon whose lifetime earnings record a claim for benefits is madeincluding claims by spouses and other dependents. Also known as a workerbreadwinner or number holder.

Waiver of recovery. Arequest by a beneficiary to waive repayment of a debt to Social Security resulting from an overpayment of benefits.

Widow(er) benefit. A type of survivor benefit paid to the spouse of a deceased wage earner.

Windfall Elimination Provision (WEP). A now-defunct Social Security rule that could reduce retirement benefits for individuals who also collected “non-covered” pensions from jobs in which they did not pay into Social Security. The WEP primarily affected federal workers hired before 1984 and some employees of state and local government agencies. It was repealed in December 2024 when Congress passed the Social Security Fairness Act.

Withdrawal of benefits. A means for people collecting benefits to effectively cancel their Social Security (by retroactively withdrawing their application for benefits) and reapply later for a higher monthly payment. The catch is that you must repay any benefits you've already received.

This option is generally used by people who claim early retirement and then change their mind about locking in a reduced benefit. Howeveryou can only withdraw an application for retirement benefits during the first year you are collecting them. For spouse's or survivor benefitsthe withdrawal window remains open until full retirement age.

AARP Social Security writers Andy Markowitz and Phil Pruitt contributed to this article.