Social Security

A federal program designed to provide benefits to employees and their dependants through income for retirement, disability, and other purposes. The social security program is funded through a federal tax levied on employers and employees equally.

The Social Security Program was created by the SOCIAL SECURITY ACT OF 1935 (42 U.S.C.A. § 301 et seq.) to provide OLD AGE, SURVIVORS, AND DISABILITY INSURANCE benefits to the workers of the United States and their families. The program, which is administered by the Social Security Administration (SSA), an independent federal agency, was expanded in 1965 to include HEALTH INSURANCE benefits under the MEDICARE program and to assist the states in establishing UNEMPLOYMENT COMPENSATION programs. Unlike WELFARE, which is financial assistance given to persons who qualify on the basis of need, Social Security benefits are paid to an individual or his family on the basis of that person's employment record and prior contributions to the system.