How Social Security Came About

Roosevelt signed the Social Security Act on August 14, 1935 which was the beginning of Social Security, then known as the Social Security Board. The Board was completely new and different, so its first staff members were “donated” from other agencies and its three executives were appointed by the president. Arthur Altmeyer, donated by Frances Perkins, became Chairman of the Board. On July 1, 1939, the Federal Security Agency was created, a sub-cabinet level federal agency that essentially encompassed the Social Security Board along with the governmental health service, the authorizing police., and the US. Employment Service. In 1946, the Social Security Board was renamed, “The Social Security Administration” by Truman’s Reorganization Plan of 1946. Learn more about this through

Arthur Altmeyer, Chairman of the Board, now became the Commissioner of the SSA. In April of 1953, President Eisenhower got rid of the FSA and created a new Department of Health, Education, and Welfare (HEW) which incorporated the SSA. In 1980, HEW was replaced under the Reagan Administration by the Department of Health and Human Services. Clinton signed Social Security into independence in 1994 which later became effective in March of 1995 and is what we know today. During the Great Depression, millions of people were out of work and there was a great concern for those who were retired and elderly and lost everything. Thus, Social Security was designed to aid primarily the elderly, but also dependent children and people with special needs who could not work. Its original intention was to be a social insurance program to help out the

Americans in this time of great need. Social Security began as “lump sum payments” where people received a one-time “lump sum” until 1940 when it was changed to a monthly-payment system. What it is Social Security is defined as, “A federal insurance program that provides benefits to retired persons, the unemployed, and the disabled” (Merriam-Webster) which essentially means that the government gives financial aid to those who cannot work and the families of those who cannot work for various reasons. Social Security works as a “pay-as-you-go” program, meaning that you pay for social security in taxes and the money will then come back to you as a beneficiary in the future as a monthly income. The average $1,110 a month for impaired workers- $1,878 a month for an impaired laborer, life partner and at least one youthful children’ $2,487 a month for a widowed mother and two children social security numbers were initially issued in 1936. Everyone receives a social security number which entirely your own in that when you die, it is not “recycled”, every American receives their own number and card. The first three digits are your “area number”, the next two are your “group number” and the last four are your “serial number”. Your area number corresponds to the geographical region you are living in when you get your number, beginning in the Northeast and moving westward. (Those on the east coast have lower numbers than those on the west coast.) The final six are more “random” in that they were just for bookkeeping purposes from the 1930’s upon creation.

Benefits intended, the Social Security system is designed to aid those in need of an income due to some type of loss. If you are disabled, retired, or your spouse is disabled, retired, or deceased, you receive benefits. The longer you work and the steadier your income is, the more you receive in benefits. The retirement age has been redefined to suit the average life expectancy, beginning with a base year of 66. On the off chance that you resign previously your respective retirement age, then you receive less benefit and a lower income than if you work up until your retirement age. However, if you work beyond your retirement age, then you can earn more in benefits. Widows and widowers have different rules, all depending on the circumstances of the situation. If you have a disability, you have to apply for social security benefits and prove that you are, in fact, disabled. If you die and leave a spouse and or family, they will receive benefits as well, respective to how much you were earning prior to your death. If you leave behind a working spouse, they will a homemaker with depedents. Not have numerous favorable circumstances in government managed savings points of interest.

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