RMI Midterm 3 Q&A RMI Midterm 3 Q&A 2/18/2026
Who established the Social Security Act?
Pres. Roosevelt during the Great Depression in terms of the New Deal
Social Insurance consists
various insurance programs which are designed to help solve the major social problems that affect a large portion
of society.
Social insurance benefits form
the foundation by which many employers provide employee benefits. In the U.S., almost one quarter of the
dollars that employers spend on employee benefit plans, is used to make legally required payments to social
insurance plans.
Social Security Plans
1. Social Security
2. Medicare
3. Unemployment Insurance
4.Temporary Disability Insurance
5.Workers Compensation
Page 1 RMI Midterm 3 Q&A.pdf
,RMI Midterm 3 Q&A RMI Midterm 3 Q&A 2/18/2026
SOCIAL SECURITY ACT (1935) BASICS
•Combination of benefits which includes: hospital & medical insurance, survivors insurance and disability insurance
and old age insurance (retirement).
•Collectively, these benefits have been referred to as "OASDI" (Old Age Survivors Disability Insurance) or OASDHI
(Medicare*)
•More than ________ of workers are covered under Social Security, and almost _______ covered thru the Medicare
portion.
95%/98%
Future social security benefits (including Medicare Part A) are primarily
financed by employee, self employed and employer tax contributions thru
FICA (Federal Insurance Contribution Act).
•Employer and employee each contribute appx 6.2percent (taxable rate) on a minimum base wage (can change
annually), plus 1.45 separate Medicare tax.
Page 2 RMI Midterm 3 Q&A.pdf
, RMI Midterm 3 Q&A RMI Midterm 3 Q&A 2/18/2026
To be eligible for social security,
an individual must have earned "credit" for a minimum amount of work and earnings annually.
A worker earns 1 credit
for each $1,300 (2017 wage base fig) in annual earnings upon which social security taxes were paid
The maximum # of credits that can be earned annually is
4
3 Insured status levels under social security:
1. Fully Insured
2. Currently Insured
3. Disability Insured
Fully Insured
•earned 40 credits (quarters of coverage) means one is fully insured for all benefits that social security offers
Page 3 RMI Midterm 3 Q&A.pdf
Who established the Social Security Act?
Pres. Roosevelt during the Great Depression in terms of the New Deal
Social Insurance consists
various insurance programs which are designed to help solve the major social problems that affect a large portion
of society.
Social insurance benefits form
the foundation by which many employers provide employee benefits. In the U.S., almost one quarter of the
dollars that employers spend on employee benefit plans, is used to make legally required payments to social
insurance plans.
Social Security Plans
1. Social Security
2. Medicare
3. Unemployment Insurance
4.Temporary Disability Insurance
5.Workers Compensation
Page 1 RMI Midterm 3 Q&A.pdf
,RMI Midterm 3 Q&A RMI Midterm 3 Q&A 2/18/2026
SOCIAL SECURITY ACT (1935) BASICS
•Combination of benefits which includes: hospital & medical insurance, survivors insurance and disability insurance
and old age insurance (retirement).
•Collectively, these benefits have been referred to as "OASDI" (Old Age Survivors Disability Insurance) or OASDHI
(Medicare*)
•More than ________ of workers are covered under Social Security, and almost _______ covered thru the Medicare
portion.
95%/98%
Future social security benefits (including Medicare Part A) are primarily
financed by employee, self employed and employer tax contributions thru
FICA (Federal Insurance Contribution Act).
•Employer and employee each contribute appx 6.2percent (taxable rate) on a minimum base wage (can change
annually), plus 1.45 separate Medicare tax.
Page 2 RMI Midterm 3 Q&A.pdf
, RMI Midterm 3 Q&A RMI Midterm 3 Q&A 2/18/2026
To be eligible for social security,
an individual must have earned "credit" for a minimum amount of work and earnings annually.
A worker earns 1 credit
for each $1,300 (2017 wage base fig) in annual earnings upon which social security taxes were paid
The maximum # of credits that can be earned annually is
4
3 Insured status levels under social security:
1. Fully Insured
2. Currently Insured
3. Disability Insured
Fully Insured
•earned 40 credits (quarters of coverage) means one is fully insured for all benefits that social security offers
Page 3 RMI Midterm 3 Q&A.pdf
