Introduction
In the United States of America, state and federal programs that provide income security to the families and citizens have its originality from the social security Act of 1935. The social security act of 1935 includes insurance to unemployment, old age insurance, and other means-tested welfare programs. The social security act also covers the Supplemental Security Income (SSI) ( Duggan & Rennane, 2015). The social security act has also been an amendment to improve its policy and functionality. These social security programs have been mandated by federal authorities however individual states are responsible for formulating their unemployment insurance policies that are within required parameters set by the federal government. Every program has its unique procedures for benefit ascertainment and the criteria of establishing the beneficiaries benefit amount.
Social Security Programs
Old age Survivor, and Disability Insurance (OASDI) benefits the retired individuals who are old age, death, and disability of covered employees ( Dobelstein, 2009). The qualification for the benefit is determined by the system of credit formed by the social security administration (Hayashi, 2018). Benefit credits are determined by the amount paid to the social security and the taxes which are deducted from the paychecks of all taxable workers in the United States of America. Unemployment insurance programs differ from state to state, as they are developed by individual states. There is a list of requirements for those who have become involuntarily unemployed to be eligible to receive benefits. Weekly benefit amounts vary by state, and some countries with higher unemployment levels qualify for extended payment periods (Martocchio, 2014).
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Challenges Facing Social Security
Social security programs are also faced with various challenges that may cripple its operations and efficiency in service delivery to those citizens who depend on its benefits. Currently, there have been published reports indicating that, in the recent years that the social security is paying more than its contributed. Other many challenges are facing the social security administration and programs that have financial viability questions. Sean Williams, Motley Fool, (2016), pointed out some of the possible reasons for the significant decline of Social Security funds to be the decrease in the ratio of workers to beneficiaries and at the same time, there is less work to make the required contribution to fund the social security programs efficiently.
In conclusion, more immigrant workers contribute very less to the social security fund and yet have a higher rate of unemployment. The US Congress has also not been able to provide a substantial solution to the problem of the insufficient funds for the social security. According to Williams (2006), investing in bonds that yield low-interest rates have also caused decreased income from the social security investment programs. There has also been a temporary solution where funds are moved from one trust that has surplus funds to one that has deficits. Continuity of funds transfer is a short and not a meaningful solution as social security fund can be depleted by 2033 ( Hopkins, 2015).
References
Hopkins, J. (2015, February 18). Social Security could be in worse shape than we thought . Retrieved from:
https://www.forbes.com/sites/jamiehopkins/2015/02/18/social-security-could-be-in-worse-shape-than-we-thought/#6415fe723f5b
Martocchio, J. J. (2014). Employee benefits: A primer for human resource professionals (5 th ed.). New York, NY; McGraw-Hill.
Parker, T. (2011, January 7). Top 3 challenges facing Social Security. Retrieved from
https://www.investopedia.com/financial-edge/0111/top-3-challenges-facing-social-security.aspx
Williams, S. (2016, August 27). The 4 biggest problems facing Social Security . Retrieved from
https://www.fool.com/retirement/2016/08/27/the-4-biggest-problems-facing-social-security.aspx
Dobelstein, A. W. (2009). Title II: The Program Structure of Old Age, Survivors, and Disability Insurance. Understanding the Social Security Act , 47-69. doi:10.1093/acprof:oso/9780195366891.003.0002
Duggan, M., Kearney, M., & Rennane, S. (2015). The Supplemental Security Income (SSI) Program. doi:10.3386/w21209
Hayashi, M. (2018). Health Care, Long-term Care, and Local Public Finances: Intergovernmental Financing of Social Insurance Programs. Economic Challenges Facing Japan’s Regional Areas , 103-113. doi:10.1007/978-981-10-7110-2_12
