Advantages and Disadvantages
The social security act of 1935 not only on the employees' general welfare but has also created a social insurance program that will provide payments to the retired workers at the age of 65. the organization supports the legislation since employees are in a position to take charge of their future while still in the workforce. However, the key challenge that arises from the bill is the taxes. The taxes are so many that it has increased Social Security insurance (Garretson, 2019). Individuals have less income since that is making a payment towards social security, which has lowered many people's living standards. A key concern in the organization is if privatization of social security will reduce the cost. But a key challenge will arise in the privatization because of the insolvent nature of the legislation.
Diversity
Culture, socioeconomic factors, and diversity primarily affect the equity of service delivery in the legislation. The main diversity issue that affects the legislation is age. The payment is made when a person attains the age of 65 years. However, it has been challenging for many as they want the age limit to be reduced. Lowering the retirement age will make the social security benefits be able to accommodate many people. For instance, social security accounts for $916 billion of the United States spending. The amount represents 24%, significantly less as the beneficiaries are many (Gale, Holmes & John, 2015). A key concern for the organization is he in equitability of age. For example, those who retire at the age of 62 receive their benefits every month, and those who will retire at the age of 67 will receive their amount in full. The variation creates the issue of diversity and equitability.
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Legal or Ethical Matters
The main ethical issue that arises from the legislation is privatization. Individuals claim that investment in stocks has been yielding more gains than investing in bonds. The strategy that people are proposing is to privatize social security so that investment can be made. However, that raises ethical concerns on the legality of the actions. Proponents stipulate that it will be a strategy for ensuring the social security does not go bankrupt and accommodate more Americans (Laws & rules, n.p). The organization is concerned about if the investment does not yield the expected gains. Also, consent arises on whether the beneficiaries should be informed their contributions have been invested. For example, if social security is privatized and investments are made, fluctuation might not yield the anticipated outcomes. In such a situation, the organization will not make payments to all the beneficiaries and inform them unless they will lack consent.
Redesigned
The legislation can be redesigned by creating a typical beneficiary plan for all ages. There should be no variation in the beneficiaries between those who are 62 and 67 years. The strategy will ensure that there is equity among the beneficiaries. Also, if possible, the benefit should be reduced so that the number of beneficiaries can increase. The aim is to increase the number of beneficiaries so that many people can be financially stable once they reach the retirement age and cannot be a part of the workforce. Lowering the benefit will also mean increasing the beneficiary time. For instance, there is five years gap before an individual received their last gain of social security. If the amount they receive is less, they can be beneficiaries for about seven to ten years. The extra years will be compensation for the deficit they have been receiving in the past years.
Addressing Diversity
The issue of diversity can be addressed by ensuring there is equality in the distribution of all ages. Also, the program should be voluntary where a person joins if they wish. Being involuntary means some people make contributions against their will. Some people prefer investments that will support them financially once they retire from the corporate world. If being a beneficiary of social security can be voluntary, many people, especially those with low income, can get the opportunity to make the contribution and secure their future. Also, the issue of diversity can be addressed by lowering the cost of social security. Many people fail to be beneficiaries because of the high price and low income. Thus, most of the beneficiaries are high-income earners. If the cost can be lowered, even the low-income earners will get a chance.
Addressing Legal and Ethical Concerns
The legal concern of privatization can be addressed through an old-age insurance policy. In the procedure, the goals should be for people to make an individual investment through Social Security. Instead of making the welfare program private, there should be the incorporation of investment programs within the act so that people can select for themselves. For instance, people can have options to invest in either bonds or stocks, depending on their preferences. Also, there can be an interest rate allocated to each contribution. In the end, the beneficiary will not have lost as they will receive more income after they retire.
Other Changes
Sensitization and education of social security will be another change that can be dome. There is a need to have promotions strategies on the program. Beneficiaries need to understand that the program is not for the government but their right. The solution will make more people want to be beneficiaries.
References
Gale, W. G., Holmes, S. E., & John, D. C. (2015). Social Security coverage for state and local government workers: a reconsideration. The Journal of Retirement , 3 (2), 123-135. https://doi.org/10.3905/jor.2015.3.2.123
Garretson, S. (2019). Workforce housing in Texas, USA. The Sustainable City XIII . https://doi.org/10.2495/sc190141
Laws & rules . (n.d.). Texas Workforce Commission | Welcome, we're here to help. Resources, tips and tools to build a stronger Texas workforce. https://www.twc.texas.gov/agency/laws-rules-policy
