Sam, age 35, and Kathy, age 33, are married and have a son, age 1. Sam is employed as an accountant and earns $75,000 annually. Kathy is professor of finance at a large state university and earns $150,000 annually. Both are currently and fully insured under the OASDI program. Assume you are a financial planner who is asked to give them advice concerning OASDI and other social insurance programs. Answer each of the following questions based on the following situations. Treat each situation separately.
a. Sam is killed instantly in an auto accident. To what extent, if any, would the surviving family members be eligible to receive OASDI survivor benefits?
b. Kathy has laryngitis that damaged her vocal cords. As a result, she can no longer teach. She is offered a research position in the business research bureau of the university where she is employed. To what extent, if any, would Kathy be eligible to receive OASDI disability benefits?
c. A deranged student fired a pistol at Kathy because she gave him a grade of D. As a result, Kathy was seriously injured and is expected to be off work for at least one year while she is recovering. To what extent, if any, would existing social insurance programs in the United States provide income during the period of temporary disability?
d. Sam would like to retire at age 62 and still work part-time as an accountant. He has been informed that the OASDI earnings test would be relevant in his case. Explain how the earnings test might affect his decision to work part-time after retirement.
e. Sam resigned from his job to find a higher-paying position. Explain whether Sam could receive unemployment insurance benefits during the period of temporary unemployment before he finds a new job.

  • CreatedJanuary 30, 2015
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