Spousal Social Security Benefits

For married couples, planning when to begin drawing your or your spouse’s benefit is very important.

• •  The spouse with the higher benefit is considered the primary earner.
• •  The spouse of the primary earner can take their own benefit or 50% of the primary earner’s benefit, whichever is larger. The primary earner must be drawing their benefit for the spouse to take the 50% benefit. This amount may be reduced depending on the spouse’s age when he/she commences the benefit.

There are options for couples around the decision of when and how to begin Social Security benefits, such as delaying taking one spouse’s benefit to take advantage of the increase in the benefit. Special rules apply to Social Security benefits paid to widows and widowers. Consult with the Social Security Administration or a financial planner to determine what is right for you.

If you were married for 10 years or more and at least age 62 and single, you can collect spousal Social Security benefits based on your ex-spouse’s work record. Also, if you and your ex-spouse have been divorced for at least two years and you are both at least age 62, your former spouse can commence benefits even if you are not retired. If this applies to you, consult with the Social Security Administration about your options for taking the spousal benefit. Note, there may be reductions in the benefit and earned income limitations if you take the spousal benefit before your FRA.

Medicare

Medicare is a federal health insurance program for people age 65 or older and who are U.S. citizens or permanent residents, and who receive or are eligible to receive Social Security benefits (or whose spouse, who is living or deceased, or former spouse, receives or is eligible to receive Social Security benefits). Like Social Security, people pay Medicare taxes on their earnings while they work and become eligible at age 65 if they have paid the tax for at least 40 quarters (10 years of work).

• •  Some people with disabilities qualify for Medicare coverage earlier than age 65. See medicare.gov for more information.

Medicare coverage is offered in four “Parts”, each with its own coverage area and rules:

• •  Hospital insurance (Part A) helps pay for inpatient care in a hospital or skilled nursing facility (following a hospital stay), some home health care and hospice care.
• •  Medical insurance (Part B) helps pay for services from doctors and other health care providers, outpatient care, home health care, durable medical equipment, and some preventive services. Part B is optional and has a monthly fee that is dependent upon your income level.
• •  Medicare Advantage plans (Part C) are available in many areas. People with Medicare Parts A and B can choose to receive all of their health care services through a single provider under Part C.
• •  Prescription drug coverage (Part D) helps pay for the costs of prescription drugs.

See medicare.gov for more detailed information.

IMPORTANT NOTE: When you first become eligible for Medicare hospital insurance (Part A), you have a seven-month period (your initial enrollment period) in which to sign up for medical insurance (Part B). If you’re eligible at age 65, your initial enrollment period begins three months before your 65th birthday, includes the month you turn age 65, and ends three months after that birthday. If you don’t enroll in Part B and you should have, there could be penalties.

Special enrollment period for people covered under an employer group health plan

If you’re 65 or older and covered under a group health plan, either from your own or your spouse’s current employment, you may have a “special enrollment period” in which to sign up for Medicare Part B. This means that you may delay enrolling in Medicare Part B without having to wait for a general enrollment period and paying the penalty for late enrollment. There are limits, so we strongly advise you to contact the Centers for Medicare & Medicaid Services (CMS) more information. The rules allow you to:

• •  Enroll in Medicare Part B any time while you have a group health plan based on current employment; or
• •  Enroll in Medicare Part B during the eight-month period that begins the month after the employment ends or the group health coverage ends, whichever happens first.

You can’t enroll using a special enrollment period if your employment or the employer-provided group health plan coverage ends during your initial enrollment period.

Group Medicare Advantage Plans

If you are a beneficiary of one of The Church Pension Fund's defined benefit or defined contribution retirement plans, you may be eligible for an Episcopal Church Medical Trust post-retirement health benefit offered as a UnitedHealthcare® Group Medicare Advantage (PPO) plan. 

• •  Find out more about our Group Medicare Advantage (GMA) plan.
• •  Clergy and their eligible spouses may be eligible for a post-retirement health subsidy based on their earned years of Credited Service at retirement.

Clergy who work after retirement (regardless of whether their retirement benefit is suspended) and are otherwise eligible for active medical coverage will not be eligible to participate in a post-retirement health benefit plan offered from The Episcopal Church Medial Trust. This would mean that the cleric would no longer be eligible to receive the financial assistance that CPF provides for the purchase of post-retirement health benefits (the post-retirement health subsidy) for so long as the cleric continues to be eligible for active medical coverage. Contact your diocesan administrator to find out if your employer qualifies for the Episcopal Health Plan (EHP) for Qualified Small Employer Exception (SEE) plans.

If you are not eligible for the Medical Trust's post-retirement health benefits and/or wish to compare the UnitedHealthcare(R) Group Medicare Advantage (PPO) plans with others offered in your area, go to the Medicare website for more information.

The Centers for Medicare and Medicaid Services, a division of the U.S. Department of Health and Human Services, has overall responsibility for administering the Medicare program and sets standards and policies. The Social Security Administration processes requests for Medicare and Medicaid coverage. More information can be found online at medicare.gov.