History The U.S. Social Security program is designed to aid residents in need through welfare subsidies. The programs are provided by organizations on federal, state, local, and private levels; and help to provide eligible residents with food, shelter, healthcare, education and money. Aid is provided through financial aid for college education, unemployment disability insurance, food stamps, pensions for eligible low-wage workers, subsidies for housing, and health insurance programs for public employees (Feldstein, 2005; Krugman, 2007). President Franklin D. Roosevelt enacted the Social Security Act on August 14, 1935 as a means to battle the Great Depression of the 1930’s. Beginning in 1932, the government had started providing loans and grants to States to pay for direct relief and work relief, since States, local communities, and private charities did not have the financial resources to cope with the growing needs of the American people. Then in 1935, when the Social Security Act was created, two social insurance programs were established on a national level for the American people. One of these Federal systems provided benefits for the elderly and retired workers who had been employed in industry or commerce. The second was a Federal-State system that would provide insurance to the unemployed (Historical Development, n.d.). Since its conception, the Social Security Administration has grown and developed programs shaped by America’s changing economic and social conditions. A few of these programs include the Public Housing program created in 1937, the National School Lunch Program created in 1946, the Social Security Disability Insurance program created in 1956, and the Food Stamp program created in 1964 just to name a few (Historical Development, n.d.).

Current Structure A Commissioner, who leads a staff of approximately 60,000 employees, heads the Social Security Administration, which has a central office in Baltimore, Maryland. There are also ten regional offices, six processing centers, and about 1,230 field offices all decentralized to provide services at the local levels (Organizational Structure, n.d.). Today, the Social Security program is the most popular government program and touches the lives of every worker in the country. It has three major programs for retirement, survivors, and disability. The retirement program provides monthly income for qualified, retired workers once they reach the ages of 65 to 67. The benefits they receive vary based on their income while they were employed. The survivors program provides monthly income to the spouses of deceased workers once they reach retirement age. This program also provides benefits to children under the age of eighteen and the surviving spouse caring for them. These benefits will end whenever the child reaches the age of eighteen or graduates high school. Social Security will also provide monthly payments to workers who are disabled and, potentially, their spouses and children. Disability benefits will vary based on the workers earning history (John, 2005). To qualify for Social Security benefits, residents need to be employed and pay Social Security taxes for at least 40 quarters during their working lives. In order to receive disability benefits, applicants need to have been disabled for at least one year prior to signing up. To be “disabled” means to be unable to perform any significant amount of profitable work due to severe physical or mental impairment (John, 2005). Federal Insurance Contributions Act, or FICA, is the term used for the taxes citizens pay to sponsor Social Security. These taxes are never supposed to be used for any other purpose and are deducted from worker’s paychecks. The amount deducted is based off of their income (John, 2005).
Calculation of Benefits and Other Types of Benefits Social Security benefits are based on a worker’s lifetime earnings. The actual earnings are adjusted to account for changes in average wages since the earnings were received. The Social Security Administration calculates eligible applicant’s average adjusted monthly earnings during the 35 years they earned the most. After a formula is applied to these earnings, they arrive at the basic benefit, or “primary insurance amount,” that the applicant would receive each month once they reach the ages of 65-67. It is also possible to start receiving monthly benefits early, at the age of 62. However, the monthly payments will be reduced. Payment amounts can also change if the applicant decides to delay their retirement past the standard retirement age. By doing this, Social Security benefits will increase by a certain percentage until retirement or the applicant reaches the age of 70 (Your Retirement Benefit, 2014). There are many types of Social Security benefits available for people in different situations and of all ages. There are Social Security Child’s Insurance Benefits that go to children with disabled or retired parents that are also taking Social Security benefits. Disabled widower’s insurance benefits are paid to disabled widows or widowers of a deceased worker. Divorced spouses of workers that are receiving benefits are eligible for Divorced Spouse Benefits. And the Supplemental Security Income is intended for blind or disabled applicants over the age of 65 (Benefits.gov, n.d.).

References:
Benefits.gov - U.S. Social Security Administration. (n.d.). Retrieved November 16, 2014, from http://www.benefits.gov/benefits/browse-by-federal-agency/federal-agency/9
Feldstein, M. (2005). Rethinking Social Insurance. American Economic Review, 95(1), 1-24. Retrieved November 13, 2014.
Historical Development. (n.d.). Retrieved November 14, 2014, from http://www.ssa.gov/policy/docs/progdesc/sspus/histdev.pdf
John, D. (2005, March 2). How Today's Social Security Works. Retrieved November 15, 2014, from http://www.heritage.org/research/reports/2005/03/how-todays-social-security-works
Krugman, P. (2007). The conscience of a liberal. New York: W.W. Norton &. Co
Organizational Structure Of The Social Security Administration. (n.d.). Retrieved November 14, 2014, from http://www.ssa.gov/org/index.htm
Your Retirement Benefit: How It Is Figured. (2014, January 1). Retrieved November 15, 2014, from http://www.ssa.gov/pubs/EN-05-10070.pdf