Government Benefits Terms

An ABLE account is a tax-advantaged savings account for people with disabilities that lets them save for disability-related expenses without losing eligibility for means-tested benefits.

ABLE to Work is a provision that lets employed people with disabilities contribute extra money to their ABLE savings account beyond the standard annual limit.

Average indexed monthly earnings is the wage-adjusted average of your highest 35 years of earnings that Social Security uses as the starting point for calculating your benefit.

A benefits cliff is when a small rise in income makes someone lose government benefits worth more than the raise, leaving them financially worse off.

The Blended Retirement System is the US military's retirement plan that combines a smaller traditional pension with government contributions to a service member's Thrift Savings Plan account.

A child may qualify for Social Security benefits based on a parent's earnings record when that parent retires, becomes disabled, or dies, generally until the child reaches adulthood.

The Children's Health Insurance Program provides low-cost health coverage to children in families that earn too much for Medicaid but cannot easily afford private insurance.

A tax cliff is an income threshold where crossing it by even one dollar triggers a sudden loss of a benefit or a jump in tax — unlike a phase-out, there is no gradual transition.

The Consumer Financial Protection Bureau is a U.S. government agency that oversees banks, lenders, and other financial companies to enforce consumer-protection laws and handle complaints about unfair or deceptive practices.

Cost-sharing reductions are discounts that lower the deductibles, copays, and out-of-pocket costs on certain silver Marketplace plans for eligible lower-income enrollees.

CSRS is the older retirement system for federal workers hired before it was replaced by FERS, providing a pension in place of Social Security coverage.

A Social Security rule that treats someone filing for one benefit as also filing for other benefits they qualify for, so they cannot take just a spousal benefit while delaying their own.

A deferred retirement option plan, or DROP, lets an eligible employee keep working while their pension payments build up in a separate account to be paid out later.

Disability determination is the process the Social Security Administration uses to decide whether a person's medical condition qualifies them for disability benefits.

Social Security benefits a divorced person may collect on an ex-spouse's earnings record, generally if the marriage lasted at least 10 years and other rules are met.

The donut hole refers to a former coverage gap in Medicare Part D drug plans where enrollees temporarily paid a larger share of costs, a gap recent law has phased out.

Eminent domain is the government's power to take private property for public use, provided it pays the owner fair compensation.

Extra Help is a federal program that lowers the cost of Medicare prescription drug coverage for people with limited income and resources.

Federal work-study is a financial aid program that provides part-time jobs for students with financial need, letting them earn money to help pay education costs.

FEGLI is the group life insurance program offered to U.S. federal employees and retirees.

FERS is the retirement system covering most U.S. federal civilian employees, combining a small pension, Social Security, and a Thrift Savings Plan.

FICA (the Federal Insurance Contributions Act) is the law behind the Social Security and Medicare taxes taken from your paycheck, with the employer matching the employee's share.

File and suspend was a Social Security claiming strategy that let one spouse trigger spousal benefits while their own benefit kept growing — Congress eliminated it for new filers in 2016.

First-time homebuyer programs are federal, state, and local offerings, such as down payment assistance and favorable loan terms, that make a first home purchase more affordable.

The GI Bill is a federal program that helps veterans and sometimes their families pay for college, training, and related education costs.

A government shutdown is what happens when Congress fails to fund federal operations, pausing nonessential services and delaying some paychecks until funding resumes.

Hospital financial assistance, sometimes called charity care, is a program nonprofit hospitals offer to reduce or forgive bills for patients who cannot afford to pay.

Section 8 housing is a federal rental assistance program that pays part of the rent for eligible low-income families, letting them rent from private landlords.

The IRS (Internal Revenue Service) is the federal agency that administers the tax code — collecting taxes, processing returns, issuing refunds, and enforcing tax law.

LIHEAP, the Low Income Home Energy Assistance Program, helps low-income households pay heating and cooling bills and cover some energy-related costs.

A Long-Term Care Partnership Program lets people who buy qualifying long-term care policies protect some of their assets while still becoming eligible for Medicaid.

The lump-sum death benefit is a small one-time payment Social Security makes to a surviving spouse or dependent child after a worker who paid into the system dies.

Medicare open enrollment is the yearly period when people with Medicare can switch, join, or drop Medicare Advantage and prescription drug plans for the coming year.

The Medicare Part B premium is the monthly amount enrollees pay for outpatient medical coverage, with higher earners paying more based on past income.

Medicare Savings Programs are state-run programs that help people with limited income pay their Medicare premiums and other costs.

Medicare tax is the payroll tax that funds Medicare hospital insurance — unlike Social Security tax, it applies to all earned income with no wage cap.

Military family finances covers the money matters unique to service members and their families, such as special pay, frequent moves, and military benefits.

Military retirement is the pension and benefits a service member earns after completing a qualifying length of military service, typically providing monthly income for life.

A my Social Security account is the free online account at the Social Security Administration where you can view your earnings record and estimated future benefits.

The Pension Benefit Guaranty Corporation is a federal agency that insures private-sector pension plans, paying benefits up to legal limits if an employer's plan fails.

A pension cost-of-living adjustment is a periodic increase in pension payments intended to help benefits keep pace with inflation — common in government pensions but rare in private-sector ones.

Your primary insurance amount is the monthly Social Security benefit you would receive by claiming exactly at full retirement age — the baseline that early or delayed claiming adjusts down or up.

Public housing is government-owned rental housing offered at reduced rents to eligible low-income households, the elderly, and people with disabilities.

Quarters of coverage, also called work credits, are the units you earn by working and paying Social Security taxes, and generally 40 are needed to qualify for retirement benefits.

A representative payee is a person or organization appointed to receive and manage government benefits on behalf of someone who cannot manage the money themselves.

A now-largely-phased-out claiming move that let some people collect a spousal benefit while their own retirement benefit kept growing, available only to those born before a cutoff.

The retirement earnings limit is how much you can earn from work before Social Security temporarily withholds part of your benefits if you claim before full retirement age.

Self-employed people pay both the employee and employer share of Social Security tax through self-employment tax, which also builds their record toward future benefits.

The Small Business Administration is a federal agency that supports small businesses through loan guarantees, counseling, and disaster assistance.

Social Security abroad refers to receiving US Social Security benefits while living in another country, which is possible for most retirees though some countries have restrictions.

The income breakpoints in the Social Security benefit formula that set how much of your average earnings is replaced, giving lower earners a higher replacement rate.

The annual cost-of-living adjustment that raises Social Security benefits to keep pace with inflation, based on a government price index.

Social Security credits are the units you earn by working and paying Social Security taxes — most people need 40 credits, roughly ten years of work, to qualify for retirement benefits.

Social Security solvency refers to whether the program's trust funds and incoming taxes can cover the benefits it has promised over the long term.

The Social Security Trust Funds are the government accounts that hold payroll taxes collected for Social Security and from which benefits are paid.

The Social Security wage base is the annual cap on earnings subject to Social Security tax — wages above it escape that tax (though not Medicare tax), and the cap adjusts each year with wage growth.

A state pension plan is a retirement system run by a state or local government that pays lifetime benefits to public workers such as teachers, police officers, and civil servants.

Substantial gainful activity is the level of monthly earnings the Social Security Administration uses to judge whether someone is working too much to qualify for disability benefits.

The Survivor Benefit Plan is a military retirement option that lets a service member give up part of their pension so a spouse or dependent keeps receiving income after the retiree dies.

TANF, Temporary Assistance for Needy Families, is a federal program that provides temporary cash aid and support services to low-income families with children.

Ticket to Work is a free, voluntary Social Security program that helps people receiving disability benefits explore employment while keeping certain protections in place.

A total and permanent disability discharge cancels a borrower's federal student loans when they are certified as permanently unable to work because of a disability.

A totalization agreement is a pact between the US and another country that coordinates their social security systems so workers avoid paying into both and can combine credits toward benefits.

A trial work period lets someone on Social Security disability test their ability to work for a limited number of months without losing benefits, no matter how much they earn.

Tricare is the health-care program that covers active-duty U.S. military members, retirees, and their families.

Unemployment benefits eligibility refers to the state rules that determine who can collect unemployment, generally requiring recent work history and job loss through no fault of one's own.

A USDA loan is a government-backed mortgage for homes in eligible rural and some suburban areas, offering low or no down payment to income-qualified buyers.

VA disability compensation is a tax-free monthly payment the Department of Veterans Affairs makes to veterans with injuries or illnesses connected to their military service.

Veterans benefits are the range of programs the government offers former service members, including healthcare, disability pay, education aid, and home loan support.

The Volunteer Income Tax Assistance (VITA) program offers free, IRS-certified tax return preparation to people with modest incomes, disabilities, or limited English proficiency.

The option, once at full retirement age, to pause your Social Security benefits so they earn delayed-retirement credits and grow until you restart them.

WIC is a federal program that provides food, nutrition education, and healthcare referrals to low-income pregnant women, new mothers, and young children.

A one-time option to cancel a Social Security claim within 12 months of starting and repay what was received, effectively resetting the decision.

A Workforce Pell Grant is a Pell Grant for students in short-term job-training programs, awarded from the 2026-27 award year and prorated when a program runs shorter than a full academic year.