Slide 1Timeline of Social Security (cont.)1930-1940’s: Development of Social SecuritySlide 41950’s - More Amendments, More Benefits1960’s – Medicare & Other Changes1970’s – COLAs1980’s – Greenspan Commission1990’s – Upgrades and Improvements2000’s- Growth of Social Security•6/8/34: President Roosevelt’s message to congress recommended federal legislation to promote economic security.•6/19/35- 8/14/35: The Social Security Act was passed in the Senate, and became law with President Roosevelt’s signature.•1/1/37: Workers began to acquire credits toward old-age insurance benefits, payroll taxes collected for the first time.•7/1/39: The Social Security Amendment of 1939 broadened the program to include dependents and survivors benefits.•7/16/46: Under the President’s Reorganization Plan of 1946, the Social Security Board was abolished and the Social Security Administration was established. Arthur J. Altmeyer was appointed as the first Commissioner.•4/11/53: President Eisenhower abolished the Federal Security Agency (FSA) and created a new Department of Health, Education and Welfare (HEW). Social Security was made part of this new cabinet agency.•6/30/61: The Social Security Amendments of 1961 were signed by President John Kennedy, permitting all workers to elect reduced retirement at age 62. Timeline of Social SecurityTimeline of Social Security (cont.)•7/1/72: President Nixon signed into law P.L. 92-336 which gave a 20 percent cost of living adjustment (COLA) and established procedures for automatic annual COLAs. •3/9/77: HEW reorganization plan was published in Federal Register, creating the Health Care Financing Administration to manage the Medicare and Medicaid programs. Shortly after, in 1980, HEW was abolished and replaced by the Department of Health and Human Services (HHS). Social Security became a part of HHS.•8/13/81: The Omnibus Budget Reconciliation Act of 1981 made many changes to Social Security. These included limiting the lump sum death payment and changes in the minimum benefit.•3/31/95: Social Security became an independent agency. They were moved to the Alfred P. Murrah Federal Building in Oklahoma City (Oklahoma City Bombing).•5/2/01: President Bush announced the appointment of a 16 member commission to strengthen social security.•6/14/01: The Health Care Financing Administration changed its name to the Centers for Medicare & Medicaid Services.1930-1940’s: Development of Social Security•For many Americans, people lived and worked on farms providing enough of a foundation for their economic security. This changed as the developed world underwent the Industrial Revolution, causing people to move from farms and small rural areas to large cities.•The Great Depression of the 1930’s triggered a crisis in the nation’s economic life. It was a part to this that the Social Security Act emerged.•The lowest social security number was issued to Grace Dorothy Owens. Her number was 001-01-0001.1930-1940’s: Development of Social Security•1939 Amendments: These amendments made a fundamental change in the Social Security Program.–They added two new categories of benefits:•1) Payments to the spouse and minor children of a retired worker (dependant benefits).•2) Survivor’s benefits paid to the family in the event of the premature death of the worker.–The amendments also increased benefit amounts.•From 1940 to 1950, there were no changes made to the Social Security Program. This was partially due to the start of the program and not many claims being filed yet.1950’s - More Amendments, More Benefits•The Social Security Amendments of 1954 initiated a disability insurance program that provided the people with extra coverage against economic insecurity. This was trying to make the program more appealing and safe to use.•In 1956, the Social Security Act was amened to provide cash benefits to disabled workers aged 50-65 and disabled adult children.–Over the next couple of years, Congress again broadened the range of the program to include dependants of disabled workers and disabled workers at any age.•These amendments raised benefits and placed the program on the track towards what it is today.1960’s – Medicare & Other Changes•Amendments of 1961 – This lowered the age at which men were first eligible for retirement benefits to 62. Women were already given this option in 1956.•Medicare – Under Medicare, health coverage was extended to Social Security beneficiaries (65 and up) and eventually to those receiving disability benefits as well. –Nearly 20 million beneficiaries enrolled in the first three years.–Medicare stayed this way until the 1970’s, when the reorganization of the program changed it to the Health Care Financing Administration (HCFA).1970’s – COLAs•What are COLAs? COLAs are Cost of Living Adjustments, or the annual increase in Social Security benefits to offset the effects of inflation on fixed incomes.•In 1972, Nixon approved these changes to be made, beginning in 1975, which established two new terms:–1) No longer do beneficiaries have to await a special act of Congress to receive a benefit increase–2) No longer does inflation drain value from Social Security benefits1980’s – Greenspan Commission •The Social Security Amendments of 1980 made changes focusing on the disability program.–These included work incentive provision for both Social Security and SSI disability benefits.•This is when the Social Security program began to face serious short term financing issues.•President Reagan appointed the Greenspan Commission, studying the financial issues and making recommendations for legislative changes. This was signed in 1983.–Greenspan Commission Recommendations:»Partial taxation of Social Security benefits»First coverage of federal employees»Raising the retirement age gradually beginning in 2000.»Increasing reserves in the Social security trust funds.1990’s – Upgrades and Improvements•Social Security became an independent agency in March 1995. This means that the Commissioner reports directly to the President. •Legislation of 1994 abolished the periodic Social Security Advisory councils. This established a permanent seven-member bipartisan Social Security Advisory Board (provided independent advice).•On 12/17/99 the “Ticket to Work and Work Incentives Improvement Act,” became law enabling members to obtain