Social security

Social security is "any government system that provides monetary assistance to people with an inadequate or no income."[1] In the United States, this is usually called welfare or a social safety net, especially when talking about Canada and European countries.

Social security is asserted in Article 22 of the Universal Declaration of Human Rights, which states:

Everyone, as a member of society, has the right to social security and is entitled to realization, through national effort and international co-operation and in accordance with the organization and resources of each State, of the economic, social and cultural rights indispensable for his dignity and the free development of his personality.

In simple terms, the signatories agree that the society in which a person lives should help them to develop and to make the most of all the advantages (culture, work, social welfare) which are offered to them in the country.[2]

Social security may also refer to the action programs of an organization intended to promote the welfare of the population through assistance measures guaranteeing access to sufficient resources for food and shelter and to promote health and well-being for the population at large and potentially vulnerable segments such as children, the elderly, the sick and the unemployed. Services providing social security are often called social services.

Terminology in this area is somewhat different in the United States from in the rest of the English-speaking world. The general term for an action program in support of the well being of poor people in the United States is welfare program, and the general term for all such programs is simply welfare. In American society, the term welfare arguably has negative connotations. In the United States, the term Social Security refers to the US social insurance program for all retired and disabled people. Elsewhere the term is used in a much broader sense, referring to the economic security society offers when people are faced with certain risks. In its 1952 Social Security (Minimum Standards) Convention (nr. 102), the International Labour Organization (ILO) defined the traditional contingencies covered by social security as including:

  • Survival beyond a prescribed age, to be covered by old age pensions;
  • The loss of support suffered by a widowed person or child as the result of the death of the breadwinner (survivor’s benefit);
  • Responsibility for the maintenance of children (family benefit);
  • The treatment of any morbid condition (including pregnancy), whatever its cause (medical care);
  • A suspension of earnings due to pregnancy and confinement and their consequences (maternity benefit);
  • A suspension of earnings due to an inability to obtain suitable employment for protected persons who are capable of, and available for, work (unemployment benefits);
  • A suspension of earnings due to an incapacity for work resulting from a morbid condition (sickness leave benefit);
  • A permanent or persistent inability to engage in any gainful activity (disability benefits);
  • The costs and losses involved in medical care, sickness leave, invalidity and death of the breadwinner due to an occupational accident or disease (employment injuries).

People who cannot reach a guaranteed social minimum for other reasons may be eligible for social assistance (or welfare, in American English).

Modern authors often consider the ILO approach too narrow. In their view, social security is not limited to the provision of cash transfers, but also aims at security of work, health, and social participation; and new social risks (single parenthood, the reconciliation of work and family life) should be included in the list as well.[3]

Social security may refer to:

  • social insurance, where people receive benefits or services in recognition of contributions to an insurance program. These services typically include provision for retirement pensions, disability insurance, survivor benefits and unemployment insurance.
  • services provided by government or designated agencies responsible for social security provision. In different countries, that may include medical care, financial support during unemployment, sickness, or retirement, health and safety at work, aspects of social work and even industrial relations.
  • basic security irrespective of participation in specific insurance programs where eligibility may otherwise be an issue. For instance, assistance given to newly arrived refugees for basic necessities such as food, clothing, housing, education, money, and medical care.

A report published by the ILO in 2014 estimated that only 27% of the world's population has access to comprehensive social security.[4]

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The promotional United States Social Security card distributed as an example card in wallets distributed by the F.W. Woolworth Company

History

While several of the provisions to which the concept refers have a long history (especially in poor relief), the notion of "social security" itself is a fairly recent one. The earliest examples of use date from the 19th century. In a speech to mark the independence of Venezuela, Simón Bolívar (1819) pronounced: "El sistema de gobierno más perfecto es aquel que produce mayor suma de felicidad posible, mayor suma de seguridad social y mayor suma de estabilidad política"[5] (which translates to "The most perfect system of government is that which produces the greatest amount of happiness, the greatest amount of social security and the greatest amount of political stability").

In the Roman Empire, the Emperor Trajan (reigned A.D. 98–117) distributed gifts of money and free grain to the poor in the city of Rome, and returned the gifts of gold sent to him upon his accession by cities in Italy and the provinces of the Empire.[6] Trajan's program brought acclaim from many, including Pliny the Younger.[7]

In Jewish tradition, charity (represented by tzedakah) is a matter of religious obligation rather than benevolence. Contemporary charity is regarded as a continuation of the Biblical Maaser Ani, or poor-tithe, as well as Biblical practices, such as permitting the poor to glean the corners of a field and harvest during the Shmita (Sabbatical year). Voluntary charity, along with prayer and repentance, is befriended to ameliorate the consequences of bad acts.

Abbey of Port-Royal, Distributing Alms to the Poor by Louise-Magdeleine Hortemels c. 1710
Distributing alms to the poor, abbey of Port-Royal des Champs c. 1710

The Song dynasty (c.1000 AD) government supported multiple forms of social assistance programs, including the establishment of retirement homes, public clinics, and pauper's graveyards.[8]

According to economist Robert Henry Nelson, "The medieval Roman Catholic Church operated a far-reaching and comprehensive welfare system for the poor..."[9][10]

The concepts of welfare and pension were put into practice in the early Islamic law[11] of the Caliphate as forms of Zakat (charity), one of the Five Pillars of Islam, since the time of the Rashidun caliph Umar in the 7th century. The taxes (including Zakat and Jizya) collected in the treasury of an Islamic government were used to provide income for the needy, including the poor, elderly, orphans, widowed persons, and the disabled. According to the Islamic jurist Al-Ghazali (Algazel, 1058–1111), the government was also expected to store up food supplies in every region in case a disaster or famine occurred.[11][12] (See Bayt al-mal for further information.)

There is relatively little statistical data on transfer payments before the High Middle Ages. In the medieval period and until the Industrial Revolution, the function of welfare payments in Europe was principally achieved through private giving or charity. In those early times, there was a much broader group considered to be in poverty as compared to the 21st century.

Early welfare programs in Europe included the English Poor Law of 1601, which gave parishes the responsibility for providing poverty relief assistance to the poor.[13] This system was substantially modified by the 19th-century Poor Law Amendment Act, which introduced the system of workhouses.

It was predominantly in the late 19th and early 20th centuries that an organized system of state welfare provision was introduced in many countries. Otto von Bismarck, Chancellor of Germany, introduced one of the first welfare systems for the working classes in 1883. In Great Britain the Liberal government of Henry Campbell-Bannerman and David Lloyd George introduced the National Insurance system in 1911,[14] a system later expanded by Clement Attlee. The United States did not have an organized welfare system until the Great Depression, when emergency relief measures were introduced under President Franklin D. Roosevelt. Even then, Roosevelt's New Deal focused predominantly on a program of providing work and stimulating the economy through public spending on projects, rather than on cash payment.

Income maintenance

This policy is usually applied through various programs designed to provide a population with income at times when they are unable to care for themselves. Income maintenance is based in a combination of five main types of program:

  • Social insurance, considered above
  • Means-tested benefits, financial assistance provided for those who are unable to cover basic needs, such as food, clothing and housing, due to poverty or lack of income because of unemployment, sickness, disability, or caring for children. While assistance is often in the form of financial payments, those eligible for social welfare can usually access health and educational services free of charge. The amount of support is enough to cover basic needs and eligibility is often subject to a comprehensive and complex assessment of an applicant's social and financial situation. See also Income Support.
  • Non-contributory benefits. Several countries have special schemes, administered with no requirement for contributions and no means test, for people in certain categories of need: for example, veterans of armed forces, people with disabilities and very old people.
  • Discretionary benefits. Some schemes are based on the discretion of an official, such as a social worker.
  • Universal or categorical benefits, also known as demogrants. These are non-contributory benefits given for whole sections of the population without a means test, such as family allowances or the public pension in New Zealand (known as New Zealand Superannuation). See also, Alaska Permanent Fund Dividend.

Social protection

Social protection refers to a set of benefits available (or not available) from the state, market, civil society and households, or through a combination of these agencies, to the individual/households to reduce multi-dimensional deprivation. This multi-dimensional deprivation could be affecting less active poor persons (such as the elderly or the disabled) and active poor persons (such as the unemployed).

This broad framework makes this concept more acceptable in developing countries than the concept of social security. Social security is more applicable in the conditions, where large numbers of citizens depend on the formal economy for their livelihood. Through a defined contribution, this social security may be managed.

But, in the context of widespread informal economy, formal social security arrangements are almost absent for the vast majority of the working population. Besides, in developing countries, the state's capacity to reach the vast majority of the poor people may be limited because of its limited infrastructure and resources. In such a context, multiple agencies that could provide for social protection, including health care, is critical for policy consideration.[15] The framework of social protection is thus holds the state responsible for providing for the poorest populations by regulating non-state agencies.

Collaborative research from the Institute of Development Studies debating Social Protection from a global perspective, suggests that advocates for social protection fall into two broad categories: "instrumentalists" and "activists". Instrumentalists argue that extreme poverty, inequality, and vulnerability is dysfunctional in the achievement of development targets (such as the MDGs). In this view, social protection is about putting in place risk management mechanisms that will compensate for incomplete or missing insurance (and other) markets, until a time that private insurance can play a more prominent role in that society. Activist arguments view the persistence of extreme poverty, inequality, and vulnerability as symptoms of social injustice and structural inequality and see social protection as a right of citizenship. Targeted welfare is a necessary step between humanitarianism and the ideal of a "guaranteed minimum income" where entitlement extends beyond cash or food transfers and is based on citizenship, not philanthropy.[16]

National and regional systems

Similar Institutions

See also

References

  1. ^ David Bach (9 October 2003). 1001 Financial Words You Need to Know. Oxford University Press, USA. p. 185. ISBN 978-0-19-517050-4.
  2. ^ "Universal Declaration of Human Rights". Plain language version. United Nations. Retrieved 20 April 2012. Art 22. "22 The society in which you live should help you to develop and to make the most of all the advantages (culture, work, social welfare) which are offered to you and to all the men and women in your country."
  3. ^ See for a more elaborate discussion: J.C. Vrooman (2009). Rules of Relief; Institutions of Social Security, and Their Impact. Transaction Publishers (The Netherlands Institute for Social Research). pp. 111–126. ISBN 978-90-377-0218-7
  4. ^ "More than 70 per cent of the world population lacks proper social protection". ilo.org. 3 June 2014. Retrieved 24 March 2018.
  5. ^ "Archived copy" (PDF). Archived from the original (PDF) on 1 September 2013. Retrieved 2 January 2014.CS1 maint: Archived copy as title (link)
  6. ^ Britannica.com
  7. ^ "The Roman Empire: in the First Century. The Roman Empire. Emperors. Nerva & Trajan - PBS". www.pbs.org. Retrieved 24 March 2018.
  8. ^ Song dynasty
  9. ^ Robert Henry Nelson (2001). "Economics as religion: from Samuelson to Chicago and beyond". Penn State Press. p.103. ISBN 0-271-02095-4
  10. ^ "Chapter1: Charity and Welfare", the American Academy of Research Historians of Medieval Spain.
  11. ^ a b Crone, Patricia (2005). Medieval Islamic Political Thought. Edinburgh University Press. pp. 308–9. ISBN 0-7486-2194-6.
  12. ^ Shadi Hamid (August 2003). "An Islamic Alternative? Equality, Redistributive Justice, and the Welfare State in the Caliphate of Umar". Renaissance: Monthly Islamic Journal. 13 (8). (see online Archived 1 September 2003 at the Wayback Machine)
  13. ^ The Poor Laws of England Archived 5 January 2010 at the Wayback Machine at EH.Net
  14. ^ Liberal Reforms at BBC Bitesize
  15. ^ Mendoza, Roger Lee (1990). The political economy of population control and retirement security in China, India and the Philippines. Philippine Economic Review, 31(2): 174–191.
  16. ^ 'Debating Social Protection' Archived 24 July 2011 at the Wayback Machine Devereux, S and Sabates-Wheeler, R. (2007) IDS Bulletin 38 .3, Brighton: Institute of Development Studies
  17. ^ [1]
  • "The Future of Social Security: 12 Proposals You Should Know about." AARP. AARP. Web. 25 Sept. 2015. "Archived copy" (PDF). Archived from the original (PDF) on 22 January 2016. Retrieved 25 September 2015.CS1 maint: Archived copy as title (link).

Further reading

  • Modigliani, Franco. Rethinking pension reform / Franco Modigliani, Arun Muralidhar. Cambridge, UK ; New York : Cambridge University Press, 2004.
  • Muralidhar, Arun S. Innovations in pension fund management / Arun S. Muralidhar. Stanford, Calif.; [Great Britain] : Stanford Economics + Finance, c2001.
  • "The Three Pillars of Wisdom? A Reader on Globalization, World Bank Pension Models and Welfare Society" (Arno Tausch, Editor). Nova Science Hauppauge, New York, 2003
  • 'Reforming European Pension Systems' (Arun Muralidhar and Serge Allegreza (eds.)), Amsterdam, NL and West Lafayette, Indiana, USA: Dutch University Press, Rozenberg Publishers and Purdue University Press

External links

Department of Health and Social Security

The Department of Health and Social Security (commonly known as the DHSS) was a ministry of the British government in existence for twenty years from 1968 until 1988, and was headed by the Secretary of State for Social Services.

Employees' Provident Fund Organisation

The Employees' Provident Fund Organisation (abbreviated to EPFO), is an organization tasked to assist the Central Board of Trustees, a statutory body formed by the Employees' Provident Fund and Miscellaneous Provisions Act, 1952 and is under the administrative control of the Ministry of Labour and Employment, Government of India.EPFO assists the Central Board in administering a compulsory contributory Provident Fund Scheme, a Pension Scheme and an Insurance Scheme for the workforce engaged in the organized sector in India. It is also the nodal agency for implementing Bilateral Social Security Agreements with other countries on a reciprocal basis. The schemes cover Indian workers as well as International workers (for countries with which bilateral agreements have been signed. As of now 17 Social Security Agreements are operational). It is one of the largest social security organisations in India in terms of the number of covered beneficiaries and the volume of financial transactions undertaken. The EPFO's apex decision making body is the Central Board of Trustees (CBT).On 1 October 2014, Prime Minister of India Narendra Modi launched Universal Account Number for Employees covered by EPFO to enable PF number portability.The total assets under management are more than ₹11 lakh crore (US$157.8 billion) as of 2018 .

Federal Insurance Contributions Act tax

The Federal Insurance Contributions Act (FICA ) is a United States federal payroll (or employment) contribution directed towards both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, people with disabilities, and children of deceased workers.

Health minister

A health minister is the member of a country's government typically responsible for protecting and promoting public health and providing welfare and other social security services.

List of health departments and ministries

Most executive governments in the world are divided into departments or ministries. In most such cases, there is a department or ministry responsible for health.

Parental leave

Parental leave, or family leave, is an employee benefit available in almost all countries. The term "parental leave" may include maternity, paternity, and adoption leave; or may be used distinctively from "maternity leave" and "paternity leave" to describe separate family leave available to either parent to care for small children. In some countries and jurisdictions, "family leave" also includes leave provided to care for ill family members. Often, the minimum benefits and eligibility requirements are stipulated by law.

Unpaid parental or family leave is provided when an employer is required to hold an employee's job while that employee is taking leave. Paid parental or family leave provides paid time off work to care for or make arrangements for the welfare of a child or dependent family member. The three most common models of funding are social insurance/social security (where employees, employers, or taxpayers in general contribute to a specific public fund), employer liability (where the employer must pay the employee for the length of leave), and mixed policies that combine both social security and employer liability.Parental leave has been available as a legal right and/or governmental program for many years, in one form or another. In 2014, the International Labour Organization reviewed parental leave policies in 185 countries and territories, and found that all countries except Papua New Guinea have laws mandating some form of parental leave. A different study showed that of 186 countries examined, 96% offered some pay to mothers during leave, but only 44% of those countries offered the same for fathers. The United States, Suriname, Papua New Guinea, and a few island countries in the Pacific Ocean are the only countries in the United Nations that do not require employers to provide paid time off for new parents.Private employers sometimes provide either or both unpaid and paid parental leave outside of or in addition to any legal mandate.

Payroll tax

Payroll taxes are taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff. Payroll taxes generally fall into two categories: deductions from an employee’s wages, and taxes paid by the employer based on the employee's wages. The first kind are taxes that employers are required to withhold from employees' wages, also known as withholding tax, pay-as-you-earn tax (PAYE), or pay-as-you-go tax (PAYG) and often covering advance payment of income tax, social security contributions, and various insurances (e.g., unemployment and disability). The second kind is a tax that is paid from the employer's own funds and that is directly related to employing a worker. These can consist of fixed charges or be proportionally linked to an employee's pay. The charges paid by the employer usually cover the employer's funding of the social security system, medicare, and other insurance programs. The economic burden of the payroll tax falls almost entirely on the worker, regardless of whether the tax is remitted by the employer or the employee, as the employers’ share of payroll taxes is passed on to employees in the form of lower wages than would otherwise be paid. Because payroll taxes fall exclusively on wages and not on returns to financial or physical investments, payroll taxes may contribute to underinvestment in human capital such as higher education.

Secretary of State for Work and Pensions

Her Majesty's Principal Secretary of State for Work and Pensions, or informally Work and Pensions Secretary is a post in the British Cabinet, responsible for the Department for Work and Pensions. It was created on 8 June 2001 by the merger of the Employment division of the Department for Education and Employment and the Department of Social Security.

The Ministry of Pensions was created in 1916 to handle the payment of war pensions to former members of the Armed Forces and their dependants. In 1944 a separate Ministry of National Insurance (initially titled the Ministry of Social Insurance, it changed its name on 17 November 1944) was formed; the two merged in 1953 as the Ministry of Pensions and National Insurance. In 1966 the Ministry was renamed the Ministry of Social Security, but this was short-lived, as the Ministry merged with the Ministry of Health in 1968 to form the Department of Health and Social Security. Confusingly, the Secretary of State responsible for this Department was titled the Secretary of State for Social Services. The Department was de-merged in 1988, creating the separate Department of Health and Department of Social Security.

Social Security (United States)

In the United States, Social Security is the commonly used term for the federal Old-Age, Survivors, and Disability Insurance (OASDI) program and is administered by the Social Security Administration. The original Social Security Act was signed into law by President Franklin D. Roosevelt in 1935, and the current version of the Act, as amended, encompasses several social welfare and social insurance programs.

Social Security is funded primarily through payroll taxes called Federal Insurance Contributions Act tax (FICA) or Self Employed Contributions Act Tax (SECA). Tax deposits are collected by the Internal Revenue Service (IRS) and are formally entrusted to the Federal Old-Age and Survivors Insurance Trust Fund and the Federal Disability Insurance Trust Fund, the two Social Security Trust Funds. With a few exceptions, all salaried income, up to an amount specifically determined by law (see tax rate table below), is subject to the Social Security payroll tax. All income over said amount is not taxed. In 2018, the maximum amount of taxable earnings was $128,400.With few exceptions, all legal residents working in the United States now have an individual Social Security number. Indeed, nearly all working (and many non-working) residents since Social Security's 1935 inception have had a Social Security number because it is requested by a wide range of businesses.

In 2017, Social Security expenditures totaled $806.7 billion for OASDI and $145.8 billion for DI. Income derived from Social Security is currently estimated to have reduced the poverty rate for Americans age 65 or older from about 40% to below 10%. In 2018, the trustees of the Social Security Trust Fund reported that the program will become financially insolvent in the year 2034 unless corrective action is enacted by Congress.

Social Security Act

The Social Security Act of 1935 is a law enacted by the 74th United States Congress and signed into law by President Franklin D. Roosevelt. The law created the Social Security program, establishing a basic right to a pension in old age, as well as insurance against unemployment. The law was part of Roosevelt's New Deal domestic program.

By the 1930s, the United States was the lone modern industrial country without any national system of social security. In the midst of the Great Depression, physician Francis Townsend galvanized support behind a proposal to issue direct payments to the elderly. Responding to this movement, Roosevelt organized a committee led by Secretary of Labor Frances Perkins to develop a major social welfare program proposal. Roosevelt presented the plan in early 1935, and he signed the Social Security Act into law on August 14, 1935. The act was upheld by the Supreme Court in two major cases decided in 1937.

The law established the Social Security program, an old-age pension program funded by payroll taxes. Over the ensuing decades, Social Security program contributed to a dramatic decline in poverty among the elderly, while spending on Social Security became a major part of the federal budget. The Social Security Act also established an unemployment insurance program administered by the states, as well as the Aid to Dependent Children program, which provided aid to families headed by single mothers. The law was later amended by acts such as the Social Security Amendments of 1965, which established two major healthcare programs, Medicare and Medicaid.

Social Security Administration

The United States Social Security Administration (SSA) is an independent agency of the U.S. federal government that administers Social Security, a social insurance program consisting of retirement, disability, and survivors' benefits. To qualify for most of these benefits, most workers pay Social Security taxes on their earnings; the claimant's benefits are based on the wage earner's contributions. Otherwise benefits such as Supplemental Security Income (SSI) are given based on need.

The Social Security Administration was established by a law codified at 42 U.S.C. § 901. It was created in 1935 as the Social Security Board, then assumed its present name in 1946. Its current leader, Deputy Commissioner of Operations Nancy Berryhill, was acting commissioner from January 19, 2017 through November 17, 2017.SSA is headquartered in Woodlawn, Maryland, just to the west of Baltimore, at what is known as Central Office. The agency includes 10 regional offices, 8 processing centers, approximately 1300 field offices, and 37 Teleservice Centers. As of 2018, about 60,000 people were employed by SSA. Headquarters non-supervisory employees of SSA are represented by American Federation of Government Employees Local 1923. Social Security is the largest social welfare program in the United States. For 2014, the net cost of Social Security was $906.4 billion, an amount corresponding to 21% of US Federal Government expenditures.It has been named the 12th best place to work in the U.S. federal government (out of 55 large agencies).

Social Security Death Index

The Social Security Death Index (SSDI) is a database of death records created from the United States Social Security Administration's Death Master File Extract. Most persons who have died since 1936 who had a Social Security Number (SSN) and whose death has been reported to the Social Security Administration are listed in the SSDI. For most years since 1973, the SSDI includes 93 percent to 96 percent of deaths of individuals aged 65 or older. It is frequently updated; the version of June 22, 2011 contained 89,835,920 records.Unlike the Death Master File, the SSDI is available free from several genealogy websites. The SSDI is a popular tool for genealogists and biographers because it contains valuable genealogical data. It is also useful for medical research such as clinical trials and epidemiology, because where survival data is missing from medical records (for reasons such as loss to follow-up), the SSDI can be used to backfill it.

Social Security Disability Insurance

Social Security Disability Insurance (SSD or SSDI) is a payroll tax-funded, federal insurance program of the United States government. It is managed by the Social Security Administration and is designed to provide income supplements to people who are physically restricted in their ability to be employed because of a notable disability, usually a physical disability. SSD can be supplied on either a temporary or permanent basis, usually directly correlated to whether the person's disability is temporary or permanent.

People frequently confuse Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI). Unlike SSI, SSDI does not depend on the income of the disabled individual receiving it. A legitimately disabled person (a finding based on legal and medical justification) of any income level can theoretically receive SSD. ("Disability" under SSDI is measured by a different standard than under the Americans with Disabilities Act.) Most SSI recipients are below an administratively-mandated income threshold, and indeed these individuals must in fact stay below that threshold to continue receiving SSI; but this is not the case with SSD.

Informal names for SSDI include Disability Insurance Benefits (DIB) and Title II benefits. These names come from the chapter title of the governing section of the Social Security Act, which came into law in August 1935. As of July 1956, after spending twenty years bouncing around Congress, the Social Security Disability Insurance program was put into effect.

Social Security debate in the United States

This article concerns proposals to change the Social Security system in the United States. Social Security is a social insurance program officially called "Old-age, Survivors, and Disability Insurance" (OASDI), in reference to its three components. It is primarily funded through a dedicated payroll tax. During 2015, total benefits of $897 billion were paid out versus $920 billion in income, a $23 billion annual surplus. Excluding interest of $93 billion, the program had a cash deficit of $70 billion. Social Security represents approximately 40% of the income of the elderly, with 53% of married couples and 74% of unmarried persons receiving 50% or more of their income from the program. An estimated 169 million people paid into the program and 60 million received benefits in 2015, roughly 2.82 workers per beneficiary.

Reform proposals continue to circulate with some urgency, due to a long-term funding challenge faced by the program as the ratio of workers to beneficiaries falls, driven by the aging of the baby-boom generation, expected continuing low birth rate, and increasing life expectancy. Program payouts began exceeding cash program revenues (i.e., revenue excluding interest) in 2011; this shortfall is expected to continue indefinitely under current law.Social Security has collected approximately $2.8 trillion more in payroll taxes and interest than have been paid out since tax collection began in 1937. This surplus is referred to as the Social Security Trust Fund. The fund contains non-marketable Treasury securities backed "by the full faith and credit of the U.S. government". The funds borrowed from the program are part of the total national debt of $18.9 trillion as of December 2015. Due to interest, the Trust Fund will continue increasing through the end of 2020, reaching a peak of approximately $2.9 trillion. Social Security has the legal authority to draw amounts from other government revenue sources besides the payroll tax, to fully fund the program, while the Trust Fund exists. However, payouts greater than payroll tax revenue and interest income over time will liquidate the Trust Fund by 2035, meaning that only the ongoing payroll tax collections thereafter will be available to fund the program.There are certain key implications to understand under current law, if no reforms are implemented:

Payroll taxes will only cover about 79% of the scheduled payout amounts from 2034 and beyond. Without changes to the law, Social Security would have no legal authority to draw other government funds to cover the shortfall.

Between 2021 and 2035, redemption of the Trust Fund balance to pay retirees will draw approximately $3 trillion in government funds from sources other than payroll taxes. This is a funding challenge for the government overall, not just Social Security. However, as the Trust Fund is reduced, so is that component of the National Debt; in effect, the Trust Fund amount is replaced by public debt outside the program.

The present value of unfunded obligations under Social Security was approximately $11.4 trillion over a 75-year forecast period (2016-2090). In other words, that amount would have to be set aside in 2016 so that the principal and interest would cover the shortfall for 75 years. The estimated annual shortfall averages 2.49% of the payroll tax base or 0.9% of gross domestic product (a measure of the size of the economy). Measured over the infinite horizon, these figures are 4.0% and 1.4%, respectively.

The annual cost of Social Security benefits represented 4.0% of GDP in 2000 and 5.0% GDP in 2015. This is projected to increase gradually to 6.4% of GDP in 2035 and then decline to about 6.1% of GDP by 2055 and remain at about that level through 2086.President Barack Obama opposed privatization (i.e., diverting payroll taxes or equivalent savings to private accounts) or raising the retirement age, but supported raising the annual maximum amount of compensation that is subject to the Social Security payroll tax ($118,500 in 2016) to help fund the program. In addition, on February 18, 2010, President Obama issued an executive order mandating the creation of the bipartisan National Commission on Fiscal Responsibility and Reform, which made ten specific recommendations to ensure the sustainability of Social Security.Federal Reserve Chairman Ben Bernanke said on October 4, 2006: "Reform of our unsustainable entitlement programs should be a priority." He added, "the imperative to undertake reform earlier rather than later is great." The tax increases or benefit cuts required to maintain the system as it exists under current law are significantly higher the longer such changes are delayed. For example, raising the payroll tax rate to 15% during 2016 (from the current 12.4%) or cutting benefits by 19% would address the program's budgetary concerns indefinitely; these amounts increase to 16% and 21% respectively if no changes are made until 2034. During 2015, the Congressional Budget Office reported on the financial effects of various reform options.

Social Security number

In the United States, a Social Security number (SSN) is a nine-digit number issued to U.S. citizens, permanent residents, and temporary (working) residents under section 205(c)(2) of the Social Security Act, codified as 42 U.S.C. § 405(c)(2). The number is issued to an individual by the Social Security Administration, an independent agency of the United States government. Although its primary purpose is to track individuals for Social Security purposes, the Social Security number has become a de facto national identification number for taxation and other purposes.A Social Security number may be obtained by applying on Form SS-5, application for A Social Security Number Card.

Supplemental Security Income

Supplemental Security Income (SSI) is a United States means-tested federal welfare program that provides cash assistance to individuals residing in the United States who are either aged 65 or older, blind, or disabled. SSI was created by the Social Security Amendments of 1972 and is incorporated in Title 16 of the Social Security Act. The program began operations in 1974.

SSI was created to replace federal-state adult assistance programs that served the same purpose, but were administered by the state agencies and received criticism for lacking consistent eligibility criteria. The restructuring of these programs was intended to standardize the eligibility requirements and level of benefits. Although administered by the Social Security Administration, SSI is funded from the U.S. Treasury general funds, not the Social Security trust fund. Today, the program provides benefits to approximately eight million Americans.

Taxation in Sweden

Taxation in Sweden on salaries for an employee involves contributing to three different levels of government: the municipality, the county council, and the central government. Social security contributions are paid to finance the social security system.

Income tax on salaries is deducted by the employer (a PAYE system) and paid directly by the employer to the Swedish Tax Agency (Skatteverket).

The effective taxation rate in Sweden is commonly cited as among the highest in the world; see list of countries by tax rates.

Sweden has a taxation system for income from work that combines an income tax (paid by the employee) with social security contributions (employers contributions) that are paid by the employer. The total salary cost for the employer is thereby the gross salary plus the social security contributions. The employer makes monthly preliminary deductions (PAYE) for income tax and also pays the social security contributions to the Swedish Tax Agency.

The income tax is contingent on the person being taxable in Sweden, and the social security contributions are contingent on the person being part of the Swedish social insurance plan. The income tax is finalised through a yearly tax assessment the year following the income year.27% of taxpayer money in Sweden go to education and healthcare, whereas 5% go to the police and military, and 42% to social security.

Unorganised Workers' Social Security Act 2008

Unorganised Workers' Social Security Act 2008 is an Act of the Parliament of India enacted to provide for the social security and welfare of the unorganised workers(meaning home-based workers, self-employed workers or daily-wage workers). This act received the assent of the President of India on 30 December 2008.

Welfare

Welfare is a type of government support for the citizens of that society. Welfare may be provided to people of any income level, as with social security (and is then often called a social safety net), but it is usually intended to ensure that people can meet their basic human needs such as food and shelter. Welfare attempts to provide a minimal level of well-being, usually either a free- or a subsidized-supply of certain goods and social services, such as healthcare, education, and vocational training.A welfare state is a political system wherein the State assumes responsibility for the health, education, and welfare of society. The system of social security in a welfare state provides social services, such as universal medical care, unemployment insurance for workers, financial aid, free post-secondary education for students, subsidized public housing, and pensions (sickness, incapacity, old-age), etc. In 1952, with the Social Security (Minimum Standards) Convention (nr. 102), the International Labour Organization (ILO) formally defined the social contingencies covered by social security.

The first welfare state was Imperial Germany (1871–1918), where the Bismarck government introduced social security in the late 19th century. In the early 20th century, Great Britain introduced social security around 1913, and adopted the welfare state with the National Insurance Act 1946, during the Attlee government (1945–51). In the countries of western Europe, Scandinavia, and Australasia, social welfare is mainly provided by the government out of the national tax revenues, and to a lesser extent by non-government organizations (NGOs), and charities (social and religious).

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