Social Security Paper (2–3 pages) Research the development and administration of the U.S. Social Security program. Include its history, current structure, and calculation of benefits; also, include other benefits available through the program. The Social Security paper is worth 10 percent of your final grade. Solution Social Security paper focuses on how economic and social forces an theier relationship with public problems and programs affect the decision of public policy makers. The research classifies it into five stages :- problem identification, option development, passage of new laws or development of new procedures, implementation, and evaluation. It has many benefits to the people around in U.S .Social Security benefits protect the aged from poverty. The character of Social Security program involves a balancing of protection and distortion and structure of Income Tax System. U.S. economy situation has created a long-term effect in many of the public organizations and departments A Historical View :- Social security, the federal retirement system, is one of the most popular government programs in United States history. Today, Social Security benefits are the backbone of the nation\'s retirement income system. The long road to the successful development of social security began in 1935. Before 1935, very few workers received job pensions. Those workers that were covered never received benefits because they were not guaranteed. But now the social security programs have been improved.

1. Social Security Paper (2–3 pages)
Research the development and administration of the U.S. Social Security program. Include its
history, current structure, and calculation of benefits; also, include other benefits available
through the program
Solution
Social security program:
The original Social Security Act of 1935 created retirement benefits for only the retired worker,
who became eligible at age 65. In 1939, Congress passed amendments to extend benefits to
spouses and minor children of retired and deceased workers. Disability insurance arrived in
1954, and the disability program expanded in subsequent years to include the families of
disabled workers. In 1972, Congress passed legislation to create annual cost-of-living
adjustments for benefit levels. Prior to that time, benefit increases were subject to the whims of
Congress and happened only intermittently.
The 1975 Social Security Trustee’s report estimated that the Old-Age, Survivors, and Disability
Insurance (OASDI) Trust Funds would be depleted by 1979. Administrators generally want the
Trust Fund to be on track to cover net outflows for at least 75 years, so this was a serious
problem.
In 1977, Congress enacted amendments to deal with the impending financial problems. The
amendments increased the payroll tax, increased the amount of income eligible for the payroll
tax, and reduced benefits slightly. This fixed the problem until the economic slowdown of the
early 1980s, which meant the Trust Fund again faced serious short-term funding problems.
Alan Greenspan (who would later gain greater fame as a long-serving chair of the Federal
Reserve Board) headed a commission to examine the problem in 1983. The Greenspan
Commission called for – and Congress subsequently passed into law – a gradual increase in full
retirement age from 65 to 67, increases in Social Security tax rates, and the addition of new taxes
for the benefits of the wealthiest individuals. The goal was not only to solve the immediate
financial problems, but also to create a surplus over the next few decades in anticipation of the
inevitable drain from the coming baby boomer retirement. This law is still in place today.
Currently, the combined employee/employer tax rate for OASDI is 12.4%, and the full
retirement age is slowly ascending toward 67 for those born in 1960 and later. The full
retirement age is currently 66 for those reaching this age by 2020.
It should come as no surprise that funding shortages will happen again at some point. Social
Security in the United States is meant to be pay-as-you-go, meaning each generation of current

2. workers pays for the benefits of the current retirees.
The Chief Actuary (TC) is directly responsible to the Commissioner for carrying out OCACT's
mission and for providing supervision to the major components of OCACT.
A. The Deputy Chief Actuary (Short-Range) (TC) assists the Chief Actuary in carrying
out his/her OCACT-wide responsibilities and performs other duties as prescribed.
B. The Deputy Chief Actuary (Long-Range) (TC) assists the Chief Actuary in carrying
out his/her OCACT-wide responsibilities and performs other duties as prescribed.
C. The Immediate Office of the Chief Actuary (TCA) provides the Chief Actuary and
his/her Deputies with staff assistance on the full range of their responsibilities; provides liaison
and coordination; and conducts special actuarial studies and analyses.
D. The Office of Short-Range Actuarial Estimates (TCB) is responsible for planning,
directing and coordinating the development of short-range cost estimates for all Social Security
programs both under current provisions and proposed changes in law or regulation. The
programs for which estimates are prepared include the retirement, survivors and disability
insurance program, and the supplemental security income program. Develops special cost
analyses involving technical actuarial issues; projects operations of the Trust Funds; provides a
variety of data services including data collection, statistical support; and prepares estimates for
general fund and inter program reimbursement.
E. The Office of Long-Range Actuarial Estimates (TCC) is responsible for planning,
directing and coordinating the development of long-range cost estimates for the retirement,
survivors and disability program both under current provisions and proposed changes in law or
regulation. Provides all revenue estimates in both the near-term and the long-term for the
retirement, survivors and disability insurance program and in the near-term for the hospital
insurance program. Designs the economic, demographic and programmatic assumptions and the
methods needed to develop these estimates; analyses and publishes actuarial research based on
projections and actual program experience; and provides authoritative advice to agency policy
makers and congressional staffs relating to the long-range actuarial impact of current law and
proposed program changes.
Benefits of social security system: