The Social Security Act was signed into law by President Franklin Roosevelt on August 14, 1935. The Acts purpose is to provide for the well being of individuals and families in numerous ways in times of need. Disability insurance was not added until 1957. Dependent and survivors benefits have also been added and expanded over the years.
Social Security is available to retirees, disabled individuals, widows, dependent children, and dependent parents. The social insurance program is financed through payroll taxes. Generally speaking, the more a person has payed in, the more that person and their dependents (or survivors) will receive.
The Act also provides for Supplemental Security Income (SSI) which is a needs based federal welfare system which is not funded by payroll tax. As such, a work history is not necessary to receive SSI. SSI was enacted in 1974 due to the failure of some states to adequately provide a welfare system. Since SSI benefits are need based, an individual must meet category requirements (i.e. disabled, over 65, etc) AND be financially eligible. For example a person suffering from the most horrific of terminal disease may not qualify for SSI if they exceed the financial limits set by the SSI provisions. It is also noteworthy that no payment to survivors or dependents exists under SSI.
Social Security was a sub agency under the Health and Human Services (HHS) agency until March 31, 1995. Since 1995 Social Security has been an independent government agency. The agency is governed by a Commissioner who serves a six (6) year term. The Commissioner is appointed by the President and confirmed by Senate.
The Social Security Administration's headquarters is in Baltimore, Maryland. The United States is divided into ten (10) regions each of which has a Regional Office and a Regional Commissioner. There are multiple Social Security field offices and hearing offices around the country. The Social Security Administration is the largest administrative agency in the world!
Hope you enjoyed the history lesson :)
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