Social Security Celebrates 90 Years of Service
Category: Social Security
- 15 Aug 2025
- Posted By WebSiteAdmin
This week marked the 90th anniversary of the Social Security Administration. President Franklin D. Roosevelt signed the Social Security Act into law on August 14, 1935. The administration has expanded and changed quite a bit since those early days.
Commissioner Frank J. Bisignano had this to say: “For 90 years, Social Security has stood as a promise kept, ensuring that older Americans, people with disabilities, and families facing loss have the support they need. As we honor this legacy, we are also building a future where service is faster, smarter, and more accessible than ever before. Through President Trump’s vision, we are protecting and preserving Social Security by delivering extraordinary customer service through technological improvements and enhanced process engineering.” There has been growth for the SSA every decade of its existence.
Legislation like the ADA has added to their responsibilities and oversight duties. Below you can see an itemized list of how the administration has changed over the years.
1. 1935: Establishment of Social Security
- Social Security Act: Signed by President Franklin D. Roosevelt, it created a federal old-age benefits program for retired workers in commerce and industry. Initially, it covered only retirement benefits, funded by a payroll tax (1% on employees and employers, up to $3,000 in wages).
- Scope: Excluded many groups, including agricultural workers, domestic workers, self-employed individuals, and public employees, disproportionately affecting minorities and women.
2. 1939: Expansion to Survivors and Dependents
- Amendments: The Social Security Act Amendments of 1939 added survivors’ benefits for spouses and children of deceased workers and benefits for dependents of retirees. This shifted the program toward broader family support.
- Payroll Tax Adjustments: The payroll tax was scheduled to increase, but the start of benefit payments was accelerated to 1940.
3. 1950: Broader Coverage and Benefit Increases
- 1950 Amendments: Expanded coverage to include agricultural workers, domestic workers, self-employed individuals, and some state/local government employees. Benefits were increased significantly (up to 77% for some recipients).
- Cost-of-Living Adjustments (COLAs): Informal adjustments began, though automatic COLAs were not implemented until 1972.
4. 1956–1961: Disability Insurance Introduced
- 1956: Social Security Disability Insurance (SSDI) was established, providing benefits to workers aged 50–65 with disabilities.
- 1960: Age restriction for SSDI was removed, expanding eligibility to younger disabled workers.
- 1961: Benefits extended to dependents of disabled workers.
5. 1965: Medicare and Medicaid
- Social Security Amendments of 1965: Created Medicare (health insurance for those 65 and older) and Medicaid (for low-income individuals), administered by the SSA in collaboration with states. This marked a major expansion into healthcare.
6. 1972: Supplemental Security Income (SSI) and Automatic COLAs
- SSI Program: Established to provide income support for low-income aged, blind, and disabled individuals, replacing state-administered programs. SSI began in 1974.
- Automatic COLAs: Legislation tied benefit increases to the Consumer Price Index (CPI), starting in 1975, to protect against inflation.
7. 1983: Reforms to Ensure Financial Stability
- 1983 Amendments: Addressed looming trust fund insolvency with:
- Gradual increase in payroll tax rates (reaching 6.2% for employees/employers by 1990).
- Taxation of Social Security benefits for higher-income recipients.
- Gradual increase in the full retirement age (from 65 to 67, phased in through 2027).
- Coverage extended to federal employees hired after 1983 and some state/local employees.
8. 1990s: Administrative and Technological Advances
- 1990: SSA became an independent agency, separating from the Department of Health and Human Services to improve focus and efficiency.
- Online Services: The SSA began offering online services in the late 1990s, including Social Security number applications and benefit calculators.
9. 2000s: Modernization and Policy Adjustments
- 2000–2010s: Expansion of online services (e.g., my Social Security portal in 2012) for account management, benefit applications, and appeals.
- 2008: Changes to disability determination processes to reduce backlogs, including the “Compassionate Allowances” program for expedited claims.
- 2015: Bipartisan Budget Act eliminated “file-and-suspend” and restricted “deemed filing” strategies, closing loopholes for maximizing benefits.
10. 2020s: Ongoing Challenges and Adaptations
- COVID-19 Response: The SSA shifted to remote services, closing field offices temporarily and enhancing online/telephone access.
- Equity and Accessibility: Efforts to address disparities in benefit access, including outreach to underserved communities and simplifying SSI processes.
- Financial Concerns: Ongoing debates about trust fund solvency, with projections indicating depletion by 2035 without reforms (per 2025 SSA Trustees Report).
Key Trends and Themes
- Expanded Coverage: From a narrow retirement program to a comprehensive system including disability, survivors, and supplemental income.
- Financial Adjustments: Repeated reforms to address funding challenges, including tax increases and benefit tweaks.
- Technological Modernization: Shift to digital services to improve efficiency and accessibility.
- Equity Focus: Efforts to include marginalized groups and address administrative barriers.
