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Social Security Administration: Social Security Act
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In the original 1935 Social Security Act, programs were introduced for needy aged and blind individuals and, in 1950, needy disabled individuals were added. These three programs were known as the "adult categories" and were administered by State and local governments with partial Federal funding. Over the years, the State programs became more complex and inconsistent, with as many as 1,350 administrative agencies involved and payments varying more than 300% from State to State. In 1969, President Nixon identified a need to reform these and related welfare programs to "bring reason, order, and purpose into a tangle of overlapping programs." In 1971, Secretary of Health, Education and Welfare, Elliot Richardson, proposed that the Social Security Administration (SSA) assume responsibility for the adult categories. In the Social Security Amendments of 1972, Congress federalized the adult categories by creating the Supplemental Security Income (SSI) program and assigned responsibility for it to the SSA.
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As originally passed, the Social Security Act prohibited payment of retirement benefits to senior citizens who continued to earn income from regular employment. Amendments in the 1950s, 1960s, and 1970s defined specific earnings limits and allowed benefit payments to be reduced—rather than entirely eliminated—when these limits were exceeded. Since 1983 those 70 or older have been able to continue working without any earnings limits. Amendments to the Social Security Act passed in 1996 relaxed earnings limits for senior citizens who had reached full retirement age (65 to 67 depending on year of birth). Amendments in 1999 created stronger incentives and better supports for the disabled to engage in productive work. In 2000 Congress entirely eliminated the earnings limit for seniors who had reached the full retirement age, giving more seniors the freedom to work without reducing their Social Security benefits.
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The Social Security Amendments of 1954 initiated a disability insurance program that provided the public with additional coverage against economic insecurity. At first, there was a disability "freeze" of workers' Social Security records during years when they were unable to work. While this measure offered no cash benefits, it did prevent such periods of disability from reducing or wiping out retirement and survivor benefits. On August 1, 1956, the Social Security Act was amended to provide benefits to disabled workers aged 50-65 and disabled adult children. Over the next 2 years, Congress broadened the scope of the program, permitting disabled workers under age 50 and their dependents to qualify for benefits, and eventually disabled workers at any age could qualify.
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* In 1939 and during the 1940's Congresses and President Roosevelt postponed the tax rate increases that were scheduled in the original Social Security Act. The tax rate of 6% was delayed until 1960. [21][22]
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In 1965, Congress enacted the Social Security Act, and established the Medicare tax as a way to care for the elderly in this country. In addition to the creation of Medicare, Medicaid was ... established,...
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In response, FDR formed an executive committee in 1934 to develop a social security insurance program loosely modeled on those in 34 European countries. In a little over a year, the Social Security Act was outlined, introduced and passed by Congress and signed by the President.
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