Social Security Social Security Bulletin Vol. 70, No. 3, 2010 Celebrating the 75th Anniversary of the Social Security Act IN THIS ISSUE: ` The Development of Social Security in America ` Administering Social Security: Challenges Yesterday and Today ` U.S. Social Security at 75 Years: An International Perspective ` Widows and Social Security ` The Future Financial Status of the Social Security Program The Social Security Bulletin (ISSN 0037- Michael J. Astrue 7910) is published quarterly by the Social Commissioner of Social Security Security Administration, 500 E Street, SW, 8th Floor, Washington, DC 20254-0001. First-class and small package carrier David A. Rust postage is paid in Washington, DC, Deputy Commissioner for Retirement and additional mailing offices. and Disability Policy The Bulletin is prepared in the Office of Retirement and Disability Policy, Office Marianna LaCanfora of Research, Evaluation, and Statistics. Assistant Deputy Commissioner Suggestions or comments concerning for Retirement and Disability Policy the Bulletin should be sent to the Office of Research, Evaluation, and Statistics at the above address. Comments may also Manuel de la Puente be made by e-mail at [email protected] or by Associate Commissioner phone at (202) 358-6267. for Research, Evaluation, and Statistics Paid subscriptions to the Social Security Bulletin are available from the Division of Information Resources Superintendent of Documents, U.S. Margaret F. Jones, Director Government Printing Office. The cost of a copy of the Annual Statistical Supplement Staff to the Social Security Bulletin is included Karyn M. Tucker, Managing Editor in the annual subscription price of the Jessie Ann Dalrymple Bulletin. The subscription price is $56.00 Angela Jaffee domestic; $78.40 foreign. The single Karen R. Morris copy price is $13.00 domestic; $18.20 Benjamin Pitkin foreign. 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Social Security Bulletin Vol. 70, No. 3, 2010 Celebrating the 75th Anniversary of the Social Security Act Social Security Administration Office of Retirement and Disability Policy Office of Research, Evaluation, and Statistics THE WHITE HOUSE WASHINGT ON June 29, 2010 On August 14, 1935, President Franklin D. Roosevelt signed into law the Social Security Act to protect ordinary Americans "against the loss of a job and against poverty-ridden old age." Our Nation was entrenched in the Great Depression. Unemployment neared 20 percent, and millions of Americans struggled to provide for themselves and their families. In the midst of all this, the Social Security Act brought hope to some of our most vulnerable citizens, giving elderl y Americans income security and bringing us closer to President Roosevelt' s vision of a Nation free from want or fear. As our country recovers from one of the greatest economic challenges since that time, we are grateful for President Roosevelt' s perseverance, and for the countless public servants whose efforts produced the Social Security program we know today. Social Security remains a safety net for seniors and a source of resilience for all Americans. Since 1935, it has been expanded to include dependent and survivor benefits, disability insurance, and guaranteed medical insurance for seniors through Medicare. It is a lasting promise that we can retire with dignity and peace of mind, that workers who become disabled can support themselves, and that fami li es who suffer the loss of a loved one will not live in poverty. On the 75th anniversary of the Social Security Act, let us ensure this program continues to preserve its original purpose in the 21st century. Together, we can give our children and our grandchildren the same protections we have cherished for decades, and in doing so, lead our Nation to a brighter day. I thank the Social Security Administration and its many dedicated employees for their legacy of service to the American people. Please accept my best wishes as you mark this important milestone. Message froM the CoMMissioner August 14, 2010, marks the 75th anniversary of the signing of the Social Security Act into law. We have prepared a special issue of the Social Security Bulletin to commemorate this milestone. In this issue, several of our employ- ees have contributed articles that reflect on Social Security’s rich history and importance as a financial safety net for millions of Americans. In the first article, Larry DeWitt, SSA’s historian, describes the historical background and major legislative developments of the U.S. Social Security program. In the second article, Carolyn Puckett, from the Office of Research, Evaluation, and Statistics, documents the many administrative challenges that the agency has faced. Carolyn’s article covers efforts to modernize, restruc- ture, and improve processes; cope with staff reductions; and comply with court decisions. Next, Dalmer Hoskins, from the Office of Research, Evalu- ation, and Statistics and formerly the Secretary General of the International Social Security Association, provides an international perspective. David Weaver, the Deputy Associate Commissioner for Retirement Policy, follows with an article about widows under Social Security. David’s article examines the adequacy of these benefits and the economic well-being of this group. In the final article, Stephen Goss, SSA’s Chief Actuary, examines the future financial status of the Social Security program. I hope you enjoy reading this issue of the Bulletin. I encourage you to learn more about Social Security by visiting our History Page at http:// www.socialsecurity.gov/history/. Michael J. Astrue Commissioner of Social Security soCial seCurity Bulletin Volume 70 ● Number 3 ● 2010 Articles 1 The Development of Social Security in America by Larry DeWitt This article examines the origins and legislative development of the U.S. Social Security pro- gram over its 75-year history. It traces the major amendments adopted over the decades and provides a summary assessment of the impact and importance of Social Security as a central pillar of the U.S. social welfare system. 27 Administering Social Security: Challenges Yesterday and Today by Carolyn Puckett During its 75-year history, the Social Security Administration (SSA) has faced many admin- istrative challenges. This article depicts some of those challenges—involving legislative demands, staffing and workloads, infrastructure and technology, logistics and procedures, emergency response operations, and other matters—and the steps that SSA has taken to deal with them. 79 U.S. Social Security at 75 Years: An International Perspective by Dalmer D. Hoskins Among the social security systems of industrialized countries, has the U.S. Old-Age, Survi- vors, and Disability Insurance program followed a unique historical path? This article finds that the historical development of the U.S. Social Security system follows closely in many respects the model provided by older social insurance systems, particularly that of Germany. However, certain aspects of the U.S. Social Security experience stand out as exceptional from an international perspective, including the persistent rejection of general revenue financing, the significance attributed to long-range (75-year) projections, and the relative generosity of dependents’ benefits. 89 Widows and Social Security by David A. Weaver This article provides policymakers with context for understanding past and future policy discussions regarding Social Security widow benefits. Using data from household surveys, projections from a microsimulation model, and recent research, it examines three types of benefits—those for aged widows, widows caring for children, and disabled widows. Social Security Bulletin, Vol. 70, No. 3, 2010 v 111 The Future Financial Status of the Social Security Program by Stephen C. Goss This article describes four concepts—solvency, sustainability, shortfalls, and solutions— as they apply to the financial status of the Social Security program as well as how Social Security financing fits in the general federal budget. The little-understood basis for future projected shortfalls is explained and detailed in relation to the possible solutions. Other 127 OASDI and SSI Snapshot and SSI Monthly Statistics 139 Perspectives–Paper Submission Guidelines OASDI and SSI Program Rates and Limits, inside back cover vi http://www.socialsecurity.gov/policy the DevelopMent of soCial seCurity in aMeriCa by Larry DeWitt* This article examines the historical origins and legislative development of the U.S. Social Security program. Focusing on the contributory social insurance program introduced in title II of the Social Security Act of 1935, the article traces the major amendments to the original program and provides an up-to-date description