Social Security Act

The federal legislation (ch. 531, 49 stat. 620) enacted in 1935, with several subsequent amendments, designed to meet many of the economic needs of older people, dependent survivors, people with disabilities, and needy families. In its original form the act contained two major provisions-a compulsory insurance program for workers and a public assistance program financed jointly from the federal and state treasuries. The insurance program collected payroll taxes from certain groups of workers and matching contributions from their employers and, with those funds, established specific funds used to pay benefits to retired workers. Surviving dependents could also receive benefits. Benefits varied according to how much the worker had earned and contributed. Through grants to the states, the act also established an Unemployment Insurance program and awarded funds to states to develop uniform programs to care for poor children (Aid to Dependent Children [ADM needy older people (Old Age Assistance [OAA]), and blind people (Aid to the Blind [AB]). The Social Security Act has been used as the framework for much of the subsequent national legislation that provides for people's economic and social welfare needs. See also Old Age, Survivors, Disability, and Health Insurance (OASDHI), Medicare, Social Security Administration (SSA), Federal Insurance Contributions Act (FICA), and Title XX.