Social Security: Background, Coverage and Benefits

The Social Security program was established in 1935 as part of the original Social Security Act and is a federal social insurance program that provides monthly cash benefits to eligible retired or disabled workers and their dependents, and to the eligible survivors of deceased insured workers. Social Security pays cash benefits to over 65 million people each month. Workers obtain insurance protection by earning a minimum number of work credits during their careers in jobs covered by Social Security. The Social Security program has evolved from where it began in 1935. Although the program’s original purpose of providing economic security for older workers remains, the current Social Security program is different from the one that was initially enacted in 1935. In fact, many of the most recognizable elements of the current program did not become law until the 1970s. Over time, Congress has acted to change nearly all aspects of the program, such as benefit levels, contribution levels, coverage, and eligibility.