Social Security Administration Paper

Introduction

The purpose of this paper is to research the development and administration of U.S. Social Security program to gain a better understanding. This will help review the numerous changes the Social Security program has gone through and provide a view into the structure of program as it is today. This paper will also address how benefits are calculated and what other programs are available within the Social Security program.
History
In 1935, President Theodore Roosevelt made the Social Security act a law and the Social Security Administration was created. “Social Security is the foundation of economic security for millions of Americans—retirees, disabled persons, and families of retired, disabled or deceased workers. About 163 million
Americans pay Social Security taxes and 59 million collect monthly benefits. About one family in four receives income from Social Security (NASI, n.d., para 1)”. The Great Depression in the 1920’s had recently left many people struggling and the need for legislation that would be responsible for taking care of American workers was highly needed. This is where the Social Security Act comes in to play. In 1983, the legislation changed the full retirement age requirement and added a laddered structure increase for the retirement age. People that were born before 1938 reach their retirement age at 65 and a laddered structure increase will increase retirement age from 65-67 for those born in the years 1938 until 1959 while those born in 1960 will have a retirement age of 67. Current Structure
-Organizational Structure

The Commissioner heads the current organizational structure of the Social Security Administration and the Social Security Administration has over 60,000 employees.
The main office is located in Baltimore, MD but they have 10 regional offices, 6 processing centers and 1,230 field offices.
-Pay Structure
Social Security receives tax funds paid by workers and employers at a rate of 6.2% each unless a worker is self-employed then the rate is 12.4%. The Social Security Administration takes the tax money and pays out benefits to
• People who have
retired,
• People who are disabled,
• Survivors of workers who have died, and
• Dependents of beneficiaries.
The SSA uses taxed wages to pay people who are currently receiving benefits (“Understanding the Benefits,” 2017).
Calculation of Benefits
The Social Security Administration uses an inflation adjustment to average a worker’s highest 35 years of wages. This average is used to calculate retirement benefits (“Your Retirement Benefit,” 2017). If the worker reaches the full retirement age then they will receive all the benefits whereas if they choose early retirement the benefits are then reduced to only 75%. In the cases where an individual works past the eligible retirement age a percentage that is based on the birth year is added to their benefit. That percentage is added to their benefit until the time of retirement or until the age of 70 (“Understanding the Benefits,” 2017).
Other Benefits
-Medicare
Medicare is another benefit provided by the Social Security Administration.
It is an insurance provided to those who are 65 and older and qualify for the services. In some instances, people under 65 qualify if they have certain disabilities or kidney failure. The premiums for Medicare are taken out of social security checks and the Medicare program is funded by tax deductions from paychecks.
-Supplemental Security Income
The Supplemental Security Income (SSI) is funded by general tax revenues and is considered a supplement program. It is designed to help aged, blind, and disabled people, who have little or no income; and it provides cash to meet basic needs for food, clothing, and shelter (SSA.gov, n.d., para 2)”.

Summary
The Social Security Administration is responsible for serving the needs of disabled and retired American’s for many years. This program is vital and invaluable to those who require extra assistance. This program is not stable enough to provide undoubted financial security to those who use it. It would be beneficial to ensure the individuals have other sources of income
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