Presentation Transcript

1. Social security in the 30’s and today

   Jenn Bottom
2. When did social security begin It all began during the great depression -stock market crashed on October 29, 1929 -Billions of dollars were lost in banks and businesses went belly up President Hoover thought the situation(great Depression) would fix itself so he did not really do anything to try to fix the situation. At the next election they voted Franklin Roosevelt, and he pushed for a social security system in which workers would contribute toward their future security through taxes paid while they worked Roosevelt signed the Social security Act on Aug. 14,1935.
3. What S.S actually was in the 30’s People could retire at age 65 and older, and they were assured a steady income. The S.S law also created the Nations unemployment system, the now-abolished Aid to families with dependent children program and old age assistance program. It also authorized grants to states to provide medical care. The First Payroll taxes were collected in January 1937, and in January 1940 monthly benefits began.
4. First Social Security Check given The first Payroll taxes were collected in January 1937, and in January 1940 monthly benefits began. The first check was given to a secretary named: Ida May Fuller. She lived to be 100 and collected social security for 35 years. Benefit amounts remained the same until 1950, when congress authorized a 77% increase to adjust to the higher living standards.
5. Social Security today S.S today is the most popular government program and touches the life of every worker in America. Although most people just talk about the S.S retirement program, it really consists of three major programs Retirement Survivors Disability
6. Retirement Social Security This social security program provides a lifetime monthly income for qualified workers once they reach their full retirement age. Depending on where they were born, that age ranges from 65 to 67. The amount of retirement benefits that a worker receives depends on his or her income while working. Workers also have an opinion to receive a lower monthly income at age 62.
7. Survivors Social Security This type of social security program provides a monthly lifetime income to a spouse of deceased worker once they have reached retirement age. The amount on this monthly income depends on both of the spouses income while they were working This program also pays benefits to children under the age of 18 and the surviving spouse caring for them. The children’s benefits end when the last child reaches 18yrs. Old or graduates from high school, which ever comes first.
8. Disability Social security This program pays a lifetime monthly income to workers, who are disabled, and in some cases to the spouse or children under the age of 18. The checks cost depends on the earnings of the person disabled. To be able to receive the benefit, you have to be disabled for at least one year
9. Qualifying for Social Security Workers do not automatically qualify for social security retirement benefits. Workers have to work and pay a minimum level of social security taxes for at least 40 quarters(3months) during their working lives. To earn a credit they need to work a three month period of earning at least $900 These 40 quarters do not need to be consecutive. If a worker has paid S.S taxes for a certain number of quarters in the recent past, they are qualified to receive disability benefits and to have survivors benefits paid to their spouses.
10. Qualifying for S.S Con’t There is no requirement that an individual must be an American citizen to qualify for social security. Although employers are required by other laws to ensure that everyone they hire is either a citizen or a legal immigrant.
11. Supplemental Security Income The Supplemental Security Income(SSI) program is not part of the Social security program. Even thought the Social Security administration administers SSI, the program is paid for with general tax revenues. This program helps the aged, blind, and disabled people who have little or no income. It provides cash to meet the basic needs for food, cloths, and shelter. To qualify a worker must be blind, disabled, or at least the years of 65.
12. Medicare This is a Federal program that helps to pay for older Americans health costs Most people think that Medicare is apart of S.S because taxes that finance part of Medicare are lumped in with those that pay for S.S. However, Medicare is also financed by premium and general revenue, and it is not administered by the social security Administration. Because of this, Medicare is not considered S.S.
13. FICA Federal Insurance Contribution act The taxes that pay for both Social Security and Medicare are lumped together under FICA. FICA is a part of the Internal Revenue Code that gives the federal government the authority to collect payroll taxes that pay for the S.S programs and part of Medicare. These taxes are based on a workers earned income and it is deducted from his or her paycheck.
14. Common mistake people made about S.S Many people think that their Social Security benefits come from an actual account in their name which cash or investments However, this belief is wrong on two accounts: Social security has no individual accounts at all, other than bookkeeping record of an individuals yearly earnings and payroll taxes. The programs trust funds do not contain cash or saleable assets, they only represent the amount of Social security taxes collected beyond what the program needs to pay current benefits.
15. How does S.S Trust Funds Differ from Real Trust Funds Private-Sector Trust funds invest in real assets, ranging from stocks and bonds to mortgages, and other financial instruments. Assets are held only for a specific purpose, and the fund managers are liable if the money is mismanaged. The S.S trust funds are invested only in a special type of treasury bond that can only be issued to and redeemed by Social Security Administration. These bonds cannot be sold to the public to raise money.