PENSION AND SOCIAL SECURITY PLANNING AND ADMINISTRATION
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- COURSE OVERVIEW
The Social Security program is greatly misunderstood. Knowing when and how to take Social Security retirement benefits has a major impact on the achievement of financial goals. Your role as an advisor is to be the person who can explain this complicated program and how it applies in each client’s situation.
It is imperative that advisors understand the implications of when and how to take Pension and Social Security retirement benefits when creating holistic, goals-based retirement income plans. The course is designed to give you an appropriate overview Social Security retirement benefits.
This competency-based, paced course provides students with the understanding, knowledge, and skills to make strategic human resource management decisions. The course emphasizes practical activities, ranging from assessment of the global economic environment and organizational culture to the analysis of competencies and the implementation of human resource decisions.
The course consists of two parts:
Part A (Foundations) elaborates the main institutional aspects as well as basic methodologies applied in pensions.
Part B focuses on selected topics current research focus on. Lectures will base on relevant papers from the literature and partly on chapters of several textbooks. In terms of papers there will be a mix of classic, seminal references and recent work that indicates the current research frontier. The course requirements are designed to help you understand the material, extend your knowledge of the literature and familiarize yourself with methodological questions current research focus on.
Course Prerequisites: Students are expected to have had some knowledge finance, microeconomics and statistics/econometrics.- COURSE REQUIREMENTS
- Class presentation
(ii) Class presentation (incl. handout)
(iii) Classroom contributions
- COURSE LEARNING OBJECTIVES
- Describe the historical background of the Social Security system and explain its purpose
- Explain to clients where they can find additional resources about Social Security and how they can create an account to access personalized information regarding their benefits
- Discuss when clients should apply for Social Security benefits and explain the consequences associated with filing early, filing at full retirement age, and delaying filing
- Calculate monthly Social Security benefits for your clients
- Identify the four categories of individuals who may be able to claim Social Security benefits and explore how their benefit computations may differ
- COURSE OUTLINE
Module1: The History of Social Security Retirement Benefits
Module2: The Basics
- Section 1: Key Definitions
- Common Acronyms
- Section 2: Benefit Basics
- Who is Eligible for Benefits?
- Currently Insured vs. Fully Insured
- Fully Insured
- Currently Insured
- Employees Not Covered
- How to Apply for Benefits
- When to Apply and How Benefits are Paid
- What is FRA?
- Section 3: What is PIA and How it is Calculated using AIME?
- Section 4: Reductions and Increases to Benefits
- Benefits before FRA
- Benefits after FRA
- Recalculating PIA based upon Additional Earnings
- Cost of Living Adjustments (COLAs)
- Section 5: Deemed Filing and the Effect on benefits
- Exceptions to the Deemed Filing Rule
Module3: Spousal Benefits
- Section 1: Eligibility for Spousal Benefits
- Section 2: Meeting the Marriage Requirement
- Section 3: Calculating the Spousal Benefit
- Section 4: Spousal Benefits and Early Retirement
- Section 5: Spousal Benefits at or after FRA
Module4: Widows and other Survivor Benefits
- Section 1: Who is Eligible for Widow(er)or other Survivor Benefits?
- Surviving Spouse
- Deceased Worker’s Children
- Deceased Worker’s Parents
- Former Spouse of Deceased Worker
- Section 2: When can Benefits be Elected?
- Section 3: How are Benefits Paid?
- Section 4: How is the Widow(er)’s Benefit Calculated?
- Section 5: When Does Entitlement to Benefits End?
Module5: Rules Related to Common Law and Same-Sex Marriages
- Section 1: Common Law Marriage
- Section 2: Same-Sex Marriage
Module6: Divorce
- Section 1: Eligibility for Benefits
- Length of Marriage, Minimum Age, Current Marital Status
- Section 2: Independently Entitled Divorced Spouses
- Section 3: Survivor Benefits of a Divorced Spouse
Module7: Special Provisions Involving Dependent, Minor and Disabled Children
- Section 1: Child in Care Rules
- Benefits for the Caregiver
- Children’s Benefits
- Section 2: Family Maximum Benefits
Module8: The Earnings Test
- Section 1: When does the Earnings Test Apply?
- Section 2: How are Earnings Defined?
- Section 3: Calculating the Earnings Test Forfeiture Pre-FRA
- Section 4: The “Special Rule” for the Year FRA is Attained
- Section 5: Special Earnings Limit Rule: Grace Year
- Section 6: Adjustment to the Reduction Factor
- What is ARF?
- How is ARF calculated?
- Adjustment to benefit after ARF
- Section 7: Procedural Considerations
- How Earnings are Reported
- How Forfeited Amounts are Withheld
- The Effect of the Earnings Test on Auxiliary Benefits
Module9: Taxation of Social Security Benefits
- Section 1: History of the Taxation of Social Security Benefits
- Section 2: Formula for Determining the Taxable Portion of Benefits
- Combined/Provisional Income
- Tax Efficiency of Social Security
Module10: Windfall Elimination Provision
- Section 1: History of the Windfall Elimination Provision
- Section 2: Workers effected by the WEP
- When the WEP PIA is used
- When the Application of the WEP ends
- Section 3: How the Reduced Benefit Amount is Calculated
- A Step-by-Step Analysis
Module11: Government Pension Offset
- Section 1: History of the Government Pension Offset
- Section 2: Benefits Reduced as a Result of the GPO and How the Offset is Calculated
- Section 3: Benefits that are not Reduced by the GPO
Module12: Miscellaneous Provisions
- Section 1: “Do Over” Option Rules
- Effects of Utilizing the Do-Over Option on later Benefits
- Important Do-Over Considerations
- Section 2: Important Timing Issue: Attained Age
- Section 3: Important Timing Issue: Backdating Payments
Module13: Medicare Basics
- Section 1: Overview of Medicare
- Section 2: Medicare for Higher Income Beneficiaries
Module14: Claiming Strategies
- Introduction
- Our Approach
- Education
- A Comprehensive Planning Approach
- An Understanding of the Claiming Rules
- File and Take
- File and Suspend
- Restricted Application
- Start, Suspend, Restart
- Widow’s Strategies
- Sample Case Study
Module 15 : Foundation of Pension Finance
A1. Development and Structure of State Pensions: Germany, US, UK
a) State Pensions for Public Servants
b) State Pensions for Members of the Public
c) The Taxation of State PensionsA2. Occupational and Personal Pension Schemes: Germany, US, UK
a) Types of Schemes, Legal Structure and Regulatory Framework
b) Taxation Issues
c) Empirical DisseminationA3. Actuarial Basics of Modelling Pension Liabilities
a) Modelling of Population Dynamics
b) Pricing of Annuities and Life Insurance Products
c) Actuarial Calculation of Pension ProvisionsA4. Modelling of Pension Investments
a) Stochastic & Dynamics of Stocks
b) Stochastic & Dynamics of Bonds, Inflation and Interest Rates
c) Portfolio ConsiderationsModule 16: Advanced Topics of Pension Finance
1. The Transition from PAYGO to Funded Public Pensions
2. Managing Pension Accumulations: The Role of Individual Account Guarantees
Financial Analysts’ Journal,
3. Structuring Pension Decumulation: Annuities and/or Phased Withdrawal Plans
4. The Role of Taxation in Funded Pension Plans
5. Pension Investments, Asset Allocation and the Capital Market
6. Corporate Finance, Governance and Efficiency IssuesBOOK NOW LIMITED SPACES AVAILABLE!!!!!
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