Social Services - Social Security

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About The Social Security Administration

The United States Social Security Administration is an independent agency of the United States government established by law.

The Social Security Administration manages the United States' social insurance program, consisting of retirement, disability, and survivors' benefits.

To qualify for these benefits, most American workers pay Social Security taxes on their earnings; future benefits are based on the employees' contributions.

History

The Social Security Administration began existence as the Social Security Board, created as part of the New Deal program of President Franklin D. Roosevelt, by the Social Security Act of 1935.

The Board consisted of three presidentially appointed executives, and started with no budget, no staff, and no furniture. It obtained a temporary budget from the Federal Emergency Relief Administration headed by Harry Hopkins.

In 1939, the Social Security Board was merged into a cabinet-level Federal Security Agency, which included the Social Security Board, the U.S. Public Health Service, the Civilian Conservation Corps, and other agencies.

The first person to receive a Social Security benefit was Ernest Ackerman, who was paid 17 cents in January 1937.

This was a one-time, lump-sum pay-out--which was the only form of benefits paid during the start-up period January 1937 through December 1939.The first person to receive monthly retirement benefits was Ida Mae Fuller of Vermont.

In 1946 the Social Security Board was renamed the Social Security Administration under President Harry S. Truman's Reorganization Plan.

In 1972 Cost of Living Adjustments (COLAs) were introduced into Social Security Administration programs to deal with the effects of inflation on fixed incomes.

In 1953 the Federal Security Agency was abolished and the Social Security Administration was placed under the Department of Health, Education, and Welfare. HEW became the Department of Health and Human Services in 1980.

In 1994, President Bill Clinton signed legislation returning the Social Security Administration to the status of an independent agency in the executive branch of government.

Programs

The Social Security Administration's coverage under the Social Security program originally covered all workers in the continental U.S. and the territories of Alaska and Hawaii below the age of 65 in commerce and industry, except railroad workers; they were covered by the Railroad Retirement Board (RRB).

In both cases, all coverage was compulsory. In 1939, the age restriction was eliminated. The RRB and the Social Security Administration merged coverage in 1946. Over the years, additional coverage was made compulsory.

The Social Security Administration manages the Supplementary Security Income (SSI) program, which is needs-based, for elderly, blind, or disabled persons.

This program began in 1973. SSI recipients are paid out of the general revenue of the U.S. In addition, some states pay additional SSI funds. Approximately 7 million persons are covered by SSI.

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