...Social Security: Then and Know Deanna Havens SOC 320/ Public Policy & Social Services December 10, 2011 Social Security was established by President Franklin D. Roosevelt in 1935, during the great depression. The social security system was supposed to be a creation that would cover nearly all Americans. Over the years social security has expanded in both dollar amounts and the way you are eligible to receive benefits. Social security smoothes the risks of economic cycles, and it remains the most secure retirement income in America. Intentionally or unintentionally, those who think that the surplus in social security is disappearing are misleading the American public. Social security is financed mainly through payroll taxes on wages, and self-employment income. Employees and employers contribute 6.2 of wages, up to a wage gap of 106.800 in 2009 that ordinarily increases with the growth in the nation’s average wage. The self-employed contribute the equivalent of the combined employer and employee tax rates. According to the annual social security report (2010) income from social security payroll taxes will account for about eighty-three percent of trust fund income. At the end of 2008, nearly fifty-one million people were receiving benefits: thirty-five million were retired workers, six million survivors of deceased workers, and nine million disabled workers. During the last year an estimated one hundred sixty-two million workers had earnings covered by social security...
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...Social Security History, Current Structure and Calculation of Benefits The Social Security Act was implemented in 1935, after the stock market crash had wiped out the savings of millions of Americans, the nation reached out to their president to guarantee the elderly a decent income. The original Act provides retirement benefits payable to a person 65 years and older who were no longer working. There were very few people that had access to pension from their employers and through government pension programs. Most of the elderly lacked enough income to be living on their own without working. The Social Security Act was enacted at the urging or President Franklin D. Roosevelt to create a social insurance program that ensures workers would have a source of income after they retired (2010). In the years that have followed, Social Security has become one of the Federal Government’s most popular and essential programs. Despite all efforts to encourage savings and investment, the retirement picture has not changed much in recent years. Today even barely half of the workers have access to retirement plans at work and millions reach retirement age without enough savings to provide sufficient living. The Act also provided funds to assist children, disabled like the blind, the unemployed and provide family health programs. The placement of Social Security brought complex challenges to the administration. The administration had to register citizens for benefits, contributions...
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...ADMINISTRATIVE SCIENCE AND POLICY STUDIES AM228: BACHELOR OF ADMINISTRATIVE SCIENCE (HONS.) ADM653: SOCIAL SECURITY AND EMPLOYEE BENEFITS ADMINISTRATION TOPIC: DEVELOPMENT OF SOCIAL SECURITY IN UNITED STATES PREPARED BY: AFIQAH BINTI MAD KASSIM 2013455736 ALIA ATIQQAH BINTI ADENAN 2013 FIQRIN HANIS BINTI ROSLI 2013488894 INTAN SURAIYAH BINTI RAMAT 2013460818 NUR AMILY BINTI ZAINUDDIN 2013439594 GROUP: S3BA5G (SEPT 2015) PREPARED FOR: SIR SUHAIMI BIN ABD SAMAD SUBMISSION DATE: 13 OCTOBER 2015 1.0 Introduction United States Social Security Administration focused on social insurance. The concept of social insurance in United States is from the individuals’ contribution to the government revenues managed by the governments and this fund will used to provide income to them when they become disable to support themselves through their own labours. For example, benefits in United States system are measured such a low income person get the higher benefit than those persons with higher earnings as the high income person get the lower benefits. 2.0 Types of Social Security Benefits in United States. 2.1 Disabilities Benefits Social Security disability benefits is for people whose age 18 or older, unable to work due to the medical condition that’s expected to last at least one year or may result to death and not receiving any benefits on their own Social Security record. Not limited to that particular of disability person, but the family members like spouse...
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...Many individuals believe they can rely on Social Security to cover their needs when they retire. However, if they do not take the responsibility of planning and saving for their retirement today, they will find themselves working far longer than they expected or living at a lower standard of living. Social Security was introduced during the Great Depression by President Franklin Roosevelt to provide benefits to those who qualify for retirement, disability, and death. The system is set up so that it funds itself. It uses the funds that working individuals pay into it through taxes and pays out to those collecting Social Security. This means that even though working individuals are paying the Social Security taxes today, it does not necessarily mean the money will be available for them to collect when they retire. This is because the money does not go into a retirement account for each individual paying the taxes and saved for their retirement, but instead is used to fund the system for today’s retirees. When the amount collected from tax deductions is greater than the payout to participants, the excess money is saved in the Social Security Trust Fund. Many people believe that relying solely on the Social Security System for their retirement needs is a secure plan. They assume that as people retire, there will always be a younger generation working to fund the system for current retirees’ Social Security benefits. However, this is not exactly the case. As Baby Boomers are retiring...
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...1. No, Social Security is not based on the same principle as private insurance. Social Security does not follow a savings and investment model, it taxes current workers and uses the revenues to finance benefits for existing retirees. The Social Security benefits of current workers will be funded to them when they retire by the future generation of working people. Therefore, Social Security can be described as an intergenerational income-transfer program. 3. I do think that workers should be allowed to invest part of their Social Security taxes into a PRA. Knowing that I have paid social security taxes for nearly 20 years now and that I have 30 more years before I reach retirement age, it concerns me that the Social Security deficit continues to grow. After paying into Social Security for 50 years, I would hate to see my generation get to retirement age and not receive their rightfully earned benefits. I think allowing workers to invest part of their benefits into a PRA will ensure that they can retire without worry and be allowed to pass this down to heirs as well. 4. Social Security does a disservice to blacks due to their low life expectancy rate. Blacks pay into the Social Security fund at the same rate that whites and Hispanics do but due to their low life expectancy rates, may not see many benefits, if any. Whites have higher life expectancies and Hispanics even higher then Whites. Blacks may feel that they are being taxed to fund the retirement of Whites and...
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...with Rampage Chapter 14. I want the reader to understand the pro and cons of using privatizing Social Security. 2. What was the most challenging part of writing this paper, and why? Explain. For me it was sitting down and gathering my thoughts. I had a trying schedule with work and needed that time to myself to make it happen. I do have an opinion and I find it difficult to put them aside and argue both sides. 3. What do you see as the strengths of the paper, and what would you try to do if you were to revise it some more? The strength of my paper I feel is that it gives legit and strong facts of the pros and cons of the topic. If I could tweak it some more it would be to not personalize it as much. 4. What is not a part of your paper that you think might help a reader understand or appreciate it more? What didn't you put in? Are there certain events or feelings or memories that led you to write on this topic or to take this approach? What kind of feedback or response would you like from your reader? I think this essay will definitely bring to light the future of social security. I think that individuals don’t know that they could lose their money if they do not take the time to learn the benefits of the programs to include privatization. Jabari Williams Professor Houston English 102 25 January 2011 Social Security-Privatize or Not? Should Social security be privatized? In order to understand if it is good for the masses, you must understand what...
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...Macroeconomics Social Security Chapter One: The Structure of the Social Security System What is Social Security? How does it work? When and why was it started? Who benefits from Social Security? Who pays into Social Security? According to the Merriam-Webster dictionary, Social Security is “the principle or practice or a program of public provision (as through social insurance or assistance) for the economic security and social welfare of the individual and his or her family; or a U.S. government program established in 1935 to include old-age and survivors insurance, contributions to state unemployment insurance, and old-age assistance”.# Social Security was a plan enacted on August 14, 1935, by President Franklin D. Roosevelt. This program provided people in a need base situation with survivor benefits, disability benefits, health-care benefits, and automatic cost-of-living adjustments. In order to fully understand Social Security one must understand how and why it came about into our economy and society and the effects it has had on our nation. In the late 1800’s many of Americans earned a living out on the farm. People made money according to how well they could produce certain crops, how much they sold, and how easy it was for the farmers to get their goods to a marketplace. This set a basis and standard of living where children didn’t have to worry about what they would do for a living. At that time there was only one option, and that was to be a farmer...
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...Social Security Administration History In the late 1920’s when elders reached an age where they were no longer or able to work, families would take on the responsibilities of taking care of the elders or sending them to a poor house. In August 1935 the Social Security Act was sign by Franklin D. Roosevelt, which originally started as a retirement program, which only paid benefits to the primary worker of the family at the age of 65 (SSA. 2015). The Social Security Administration was originally named the Social Security Board and changed its name in 1946 to Social Security Administration which it is still presently called. When the program initially started lump sum payments were paid out to the retirees and monthly payments did not start until 1940. Ernest Ackerman is claimed to be the first recipient of the lump sum in which he paid 5 cents into the Social Security program, and he ended up receiving a 17 cent lump sum payment upon retirement. In January month Social Security benefits were now approved not only for the primary worker, but also wives, widows, and children under 18.1940 Ida May Fuller was the first recipient to receive the first monthly retirement check, and collected benefits for 35 years dying at the age of 100 years old (SSA. 2015). Structure The current Social Security Administration has a structure that is broken up into regional offices, and multiple processing centers, to include numerous field offices. There is roughly 60,000 Social Security...
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...The failure to fund the Social Security system properly has resulted in a situation where the system will go bankrupt in the relatively near future. The privatization is the best way to ensure the future's of Americas senior citizens. After 2013, the Social Security Trust Fund is projected to decline by a greater amount each year until becoming exhausted in 2033. Social Security is a wonderful benefit for those who deserve it like long term workers, the elderly, etc. For as long as the baby boomers do not come back around like it's subjected to, the US is already in debt and Social Secuirty will be next. I agree with social security for the fact that it does help elderly and the workers who have worked their whole life, they deserve to get something back for their troubles and all the years they've put in. Social security does get taken advantage of though which is a downfall because there are workers in households who will only work for a month or two and then expect to be put on a social security check and not deserve it. In general, recipients begin to receive disability benefits after they have been disabled for five full months whether their disability be true or not. Those households are the ones who are putting America more and more in debt because those who are working are paying into their funds. In 2010 roughly 1,500 federal employees may have improperly received benefits based upon their wages exceeding maximum income thresholds. Disability benefits are calculated...
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...is Social Security running out of money? On the first day that the Republicans controlled the House of Representatives was back in session, the Republican majority passed a rule restricting the transfer of money from the Social Security retirement fund into the Social Security Disability program. Some feared that this would lead to the Social Security Disability Trust fund going bankrupt by the year 2033. But before I could answer this question I had to first ask myself, what is Social Security and how would it affect me in the future? Social Security is a program first initiated by President Franklin Delano Roosevelt in 1935 and it was designed as a safety net to support retirees and the elderly, before he started the Social Security...
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...Social Security and Medicare History Present Configuration Future Projection GERO100 March 31, 2012 Hopefully we will all be physically able to work until the age of 65, collect retirement and Social Security and live an enriching life until we leave this world. Not all companies financially support their employees with fully funded retirement plans so it is left up to the individual to actively participate in saving for their future. When someone reaches retirement age, if the finances are there, they are usually only a fraction of what they were making as a full-time employee. This is when one hopes of having Social Security and Medicare benefits to supplement our retirement income for a more stable financial future. There are several reasons the Social Security Act was passed in August 1935. The elderly were living longer due to the availability of better health care, autonomy in workplaces to make jobs easier on individuals, and the modernization of our country’s water systems. Due to this increased longevity in the lives of the elderly, they were also more poverty stricken. An intention of the passage of the Social Security Act was to reduce the burden of loss of income to retired workers aged 65 or older. (Quadagno, 2008) It also included provisions for unemployment insurance, old age assistance and aid to dependent children. Benefits were to be paid based on the primary worker and was to be funded through payroll taxes deducted from the worker’s...
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...In the past decades, Social Security Administration has had annual revenue that excesses the amount it pays to beneficiaries. However, U.S. economy situation has created a long-term effect in many of the public organizations and departments. Social Security Administration is one of many departments that will face some economy issues during U.S. economy recovery. Social security will post nearly $600 billion in deficits over the next decade as the economy struggles to recover and millions of baby boomers stand at the brink of retirement, according to new congressional projections. The funds that Social Security has save to payout their beneficiaries have an expiration date. In the upcoming years more people will be eligible for retirement. Many of them will only be pay 78 percent of their benefits. The government needs to find solutions for the upcoming deficits and be able to help Social Security Administration to no run out of funds. In 2011, Social security administration will collect about 4.6 million retirement, survivor, and Medicare claims. 3.3 million Social Security and SSI claims and 326,000 SSI aged claims, (Social Security, 2011). These claims have to go to procedures that can take months to be approval. During these procedures, many more applicants are eligible to apply for social security and more money is pay to beneficiaries. Social Security Administration has being able to save and invest taxpayers money into U.S. Treasury department. The money...
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...Microeconomics Essay Assignment. 10/23/15 Social Security What is social security? What is the importance of social security in a citizen’s life? Different type of questions occurs when we discuss about the social security. This is one of the problems that United States has faced is their economy, but then again every country faces these kind of problems. Social security future solidity is one of the major issues in United States. What are the requirements for receiving social security benefits? How long do they prolong? Technically social security is a government program that helps workers and retired people and gives them benefit to spend the rest of life. Social security has different types of branches or different types of benefits we can call them. It is not only for retired people, it also helps people with disability, and people with no jobs. The benefits that come with disability and unemployment are limited. For example, its common sense if you find a job back you won’t be getting unemployment benefits, and if people that are disable start to show improvement in their health, their benefits will be terminated. Is the working population big enough to support the social security program for the future? However, there are costs and benefits for keeping this program. Is it possible that something else can be added to the social security program to help people more? Issues A lot of people these days’ worry about how to fix the social security issue. This is totally the wrong issue...
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...Social Security – the largest retirement asset that most people have today. Some say it has been the greatest government policy of all time and some say it has been the worst. Established on August 14, 1935 during President Franklin D. Roosevelt's first term, it enacted the beginnings of one of the first social programs that has continued to evolve even to today. It's creation was largely a response to the Great Depression and the fact that over 50% of senior citizens were in poverty during that time. In the event that a person could not work because of old age – and later disability, poverty, unemployment, and widowers – this program would provide a safety net for those in need by providing security and stability. From 1935 to 2009, many changes...
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...English IV period 6 20 January 2016 Senior Research Analysis Proposal Social Security has been around since 1935, when Franklin Roosevelt signed the Social Security Act. It is meant to provide financial aid to those of “old age” and the disabled. This is the topic I am going to be discussing because it is going to be affecting our generation by the time we could be receiving the benefits that are included with Social Security. I chose this topic because while I am paying for Social Security of others, it is on the path to be out of money by around 2035, which will mean that people ages 18-25 will not be receiving this. We are paying for older generations’ Social Security money, but we will not be getting any. The topic of Social Security is important because of how much it is being overlooked. Awareness needs to be raised because the funds will not be able to provide us with our benefits when we need them years from now. By writing this paper I will be able to further explain what is happening with our money and why we are in such a crisis with it. Not everyone is aware of what the government is really doing with the money being put into this fund because they are not always honest. This information gathered will be helping everyone including the people paying now, the people paying later, and everyone that should be receiving these benefits now and later on in their life. The problem with Social Security will be affecting everyone throughout the United States by an estimated...
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