Last week's landmark Supreme Court ruling allowing same-sex couples the right to marry in every state opened the door for gay couples nationwide to apply for Social Security spousal, survivor and disability benefits, as well as Medicare coverage, subject to other existing program rules.
To qualify for Social Security and disability benefits, a couple must be married at least 12 months before each spouse can apply to become the other's beneficiary. A spousal benefit is worth up to 50% of the worker's full retirement age benefit, also known as the primary insurance amount, or PIA, if the spouse who is collecting the benefit is at least full retirement age — currently 66. A spousal benefit is available as early as age 62, but it is worth just 35% of the worker's PIA.
To qualify for Social Security survivor benefits and one-time lump-sum death benefit of $255, a surviving widow or widower must have been married at least nine months immediately prior to the wage-earning spouse's death.
A survivor benefit is worth up to 100% of the deceased's worker's benefit, including any delayed retirement credits that the deceased spouse earned by postponing benefits beyond full retirement age. Delayed retirement credits are worth 8% per year up to age 70, boosting potential Social Security benefits to up to 132% of the worker's PIA.
Survivor benefits are available as early as age 60, but they are worth just 71.5% of the deceased worker's benefit compared to 100% if collected at full retirement age or later. Surviving spouses who are also entitled to both retirement benefits based on their own work record and accrued benefits, as a surviving spouse can collect one type of benefit first and switch to the other benefit later if it would result in a bigger payout.
Anyone who collects any type of Social Security benefit — including spousal or survivor benefits — before full retirement age and who continues to work, is subject to earnings-cap restrictions. Social Security benefits are reduced by $1 for every $2 earned over $15,720 in 2015 for beneficiaries who are under full retirement age for the entire year.
A more generous earnings cap applies in the year one reaches full retirement age during the months leading up to one's 66th birthday. In that case, beneficiaries who continue to work while collecting Social Security benefits forfeit $1 in benefits for every $3 earned over $41,880 in 2015. The earnings cap disappears at full retirement age and any benefits forfeited due to excess earnings are restored at age 66.
The Social Security Administration (SSA) began processing and paying spousal and survivor benefits to some married same-sex couples in August 2013 following the Supreme Court's June 2013 United States v. Windsor ruling that struck down the Defense of Marriage Act (DOMA) which had barred the federal government from recognizing the marriages of same-sex couples. But at the time, the SSA could not extend spousal and survivor benefits to same-sex couples who lived in states that did not recognize their marriage.
Prior to last week's ruling, 13 states did not allow same-sex marriages. They included Ohio, Michigan, Tennessee, Kentucky, Alabama, Texas, Arkansas, Georgia, Mississippi, Nebraska, North Dakota, South Dakota and Missouri.
Now, as a result of the Supreme Court's decision in United States v. Obergefell handed down on June 26, SSA will recognize same-sex marriages in determining entitlement to Social Security benefits regardless of zip code.
“Now, the already married couples in these states will have the same legal standing as any other couple, and the couples who are not yet married will soon be able to have legal weddings of their dreams,” according to a statement posted on the
PridePlanners website.
In addition to recognizing same-sex marriages nationwide, SSA said it now “can also recognize some non-marital legal same-sex relationships (such as civil unions and domestic partnerships) as marriages for purposes of determining entitlement to Social Security and Medicare benefits.”
Following last week's ruling, SSA said it is working with the Department of Justice to analyze the decision and to provide instructions to individuals affected by the ruling.
“If you are a spouse, divorced spouse or surviving spouse of a same-sex marriage or non-marital legal same-sex relationship, we encourage you to apply right away for benefits,” the agency said in a statement. “If you disagree with our decision about your entitlement to benefits, eligibility for benefits, or payment amount, you should appeal.”
The agency also noted that it is working closely with the Centers for Medicare & Medicaid Services (CMS) to develop and implement policy and processing instructions for Medicare entitlement and enrollment. If you have questions about how your same-sex relationship may affect Medicare, please refer to
CMS' website or call CMS at 1-800-Medicare.
If you have questions about how a same-sex marriage or non-marital legal relationship may affect your Social Security claim or to tell SSA if you are married, separated or divorced, please call 1-800-772-1213.
(Questions about Social Security? Find the answers in my ebook.)
