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Social Security Act

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Social Security Act

(Aug. 14, 1935) Legislation that established a national old-age pension system in the U.S. Dissatisfied with the government response to the Great Depression, about five million people joined “Townsend clubs” to support the plan of Francis E. Townsend (1867–1960) to demand a $200 monthly pension for everyone over the age of 60. Pres. Franklin D. Roosevelt established a committee on economic security (1934), which recommended legislative action to the U.S. Congress. The act provided old-age benefits to be financed by a payroll tax on employers and employees. The system was later expanded to include dependents, the disabled, and others.


Social Security Act
U.S. legislation providing for old-age benefits financed by payroll taxes; later expanded to include more extensive coverage. [Am. Hist.: EB, IX: 314]


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Currently the Social Security Act includes a provision that eliminates or reduces benefits if a worker's spouse has a government pension based on work not covered by Social Security.
From Welfare to Workfare focuses on the evolution of Aid to Dependent Children from its enactment in the original (1935) Social Security Act to its demise in the (1996) Personal Responsibility and Work Opportunity Act.
The first article details how the original Social Security planners worked to include disability insurance as part of the Social Security Act mandate.
 
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