Social Security Act
- The Social Security Act is a piece of legislation, first enacted in 1935, that created a lasting federal system for providing pensions to older adults, funded by contributions from both employers and employees. Originally crafted in response to the impacts of the Great Depression, this cornerstone act has undergone several amendments over the years to include benefits for a more extensive range of individuals, such as dependents and those with disabilities. Its intention is to adjust with inflation and broaden its coverage so that more workers fall under the provisions of the system. The Railroad Retirement Act of 1934 is a separate legislation that specifically covers railway employees
- The Social Security Act plays a key role in providing financial assistance to elderly people by using the funds accumulated through employer and employee contributions.
- Under the Social Security Act, the disabled, dependents, and other specific groups have been included over time through various amendments.
- Since its enactment in 1935, the Social Security Act has continuously adapted to economic changes and expanded to cover more workers in different sectors.