Social Security

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Date Submitted: 04/23/2011 05:47 AM

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With over $1 trillion in assets the Social Security Trust Fund is the richest pension reserve in the world. In order to understand the problems arising with Social Security it is important to know the definition of the trust fund as well as its’ origin. The Social Security Acts and laws are also important when discussing Social Security. There are four different funds supported by each workers tax percentage, which will be discussed later. Each fund has its own purpose. Cost of Living adjustments have been made to the benefits of the program. The trust fund is in need of alternatives because situations have changed since the plan was originally introduced to the nation.

What is Social Security? The origin of the term “Social Security” was first used in the U.S. by Abraham Epstein in connection with his group, the American Association of Social Security. Originally, the Social Security Act of 1935 was named The Economic Security Act, which was changed during Congressional consideration of the bill. The Social Security Act and related laws establish a number of programs that have basic objectives. Social Security provides for the materials needs of individuals and families, protecting aged and disabled persons against the expenses of illnesses that could otherwise exhaust their savings, keeping families together, and giving children the opportunity to grow up with health and security.

Franklin Delano Roosevelt signed the Social Security Act on August 14, 1935. Social Security was originally just a retirement program. Under the 1935 law, Social Security paid retirement benefits to the primary worker only. In 1939 it added survivor’s benefits and benefits for the retiree’s spouse and children. Disability benefits were added in 1956. In January 1937, taxes were collected for the first time. The first one-time lump sum payments were made that same month with regular monthly benefits starting in January 1940. Ernest Ackerman was the first...