Part A

Answer the following five (5) questions.

1.

How many credits does Wanda need to qualify for full SS benefits? How much does she need to earn in 2004 to receive the full four credits for the year? (5 points)

2.

What is her benefit at 62? What is the significance of age 62? (5 points)

3.

What is her full benefit at age her normal retirement age? Why is her normal retirement age 67 instead of 65? (5 points)

4.

What is her benefit at age 70? What is the significance of age 70? (5 points)

5.

Other than retirement, what additional benefits might Wanda be eligible for? (5 points)

Part B

Answer the following two (2) questions.

1.

Wanda checks her “Your Earnings Record at a Glance” and sees that for 2001, the statement reflects $34,237. When Wanda checks her W-2 for that year, she sees that she had earnings of $42,500. What should Wanda do to correct her Social Security statement? (10 points)

2.

What would she do if there were no earnings reported for a given year in which she has a W-2 to support her earnings?

Part C

Answer the following two (2) questions.

1.

Wanda has just completed a graduate course on employee benefits. After studying the plight of the Social Security system, she is concerned that the system will be bankrupt before she reaches her normal retirement age of 67. What can Wanda do to insure that she will have enough money to retire on?

2.

Explain a minimum of three (3) ways that the Social Security system could be reformed to prevent its financial collapse.