Question

ne Planning Application Questions- Topic 53 dependents will tage of the fully his job of 30 years at a es takes early retirement fre earl 63 (his thef 23. If Bill Jones retirement nge is 66), which of statements correctly describe($s) the effewing his Social Security retirement andn family's survivor benefits? gn ore the family e full retirement (I) Bill's retirement benefits w will be eased, and the reduced below the normal retireme age benefit. (2) The retirement benefits for B e 66. ased, and the 7 wife will be reduced when she reaches normal retirement age, (8) If Bill dies, the widow's benefit for (4) If Bill dies, the survivor benefit for his wife will be reduced nd the spouse, isabled child his 12-year-old child will be reduced 26 has Wh on for Social his death at and plans to ker. She has ild, age 10, al Security B. (1) and (3) only C. (1), (3), and (4) only D. (2), (3), and (4) only E. (1), (2), (3), and (4) ben y receive 24. All the following persons are covered orn ximum and a compulsory basis under the current OASDI program, EXCEPT A. A steelworker paid the minimum B. A secretary hired by the federal C. A self-employed individual with D. A full-time office worker employed hourly wage government in 1993 annual net earnings of $500 by a non-profit hospital

Answer 1

24. All the Following persons are covered on compulsory basis under the current OASDI program, except:

Correct Answer:

C. A Self Employed Individual with Annual Net Earnings of USD 500

Justification:

as Self Employed Individual is earning very low Income annually, so he or she can’t get covered under current OASDI Program, Further Steel work as he is Industry Worker he is cover under Current OASDI Program irrespective of his Income, As Secretary is hired by federal Government in 1993 which is after 1^st January, 1984, so the secretary also covered under Current OASDI Program, Full time office employee employed by Nonprofit Hospital is also covered under Current OASDI Program,

Answer for Question 23:

Correct Answer:

C. 1, 3 and 4 Only

Justification:

Due the situation explained in the case study or question, the retirement benefits for Bills wife will not be reduced when she reaches normal retirement age, however, due to Early retirement, Bills retirement benefit would be reduced and again due to early retirement, if bill dies, then widow’s benefit for his wife and survivors benefit for his 12 year child will be reduced respectively,