As a government program that secures particular benefits for a specific group or population segment, entitlement programs have enabled positive feedback within the societal structure. In the United States of America, these programs of the federal government include broad categories such as Medicare, Medicaid, unemployment, welfare and social security among others. Moreover, special groups like veterans, federal employees, and farmers, have dedicated entitlement programs such as military retirement plans, compensation for unemployment and price support for agriculture. Such social programs are the epitomes of welfare subsidy, and on a larger scale, federal entitlement programs guarantee social stability (Congressional Budget Office, 2012). Presently, in the United States, social programs are governed by strict eligibility requirements accorded by different private, local, state or federal organizations. The design of the social security system resembles social aid programs except the fact that social security is a way to secure against emergencies through self-funded. Therefore, while aid programs require special funding from the government, social security, like a quintessence to social aid, acts as a beacon of light to social programs. This paper analyzes the eligibility of a social security administration entitlement program. In this quest, the paper explains the Old Age, Survivor and Disability Insurance entitlement program (OASDI) and discusses the potential policy changes have in advancing social well-being. Moreover, the paper advocates for an elevation of human rights and socio-economic justice.
In the United States, the pioneer federal social security system was first established through the enactment of the Social Security Act of 1935. Since this time, the entire system has undergone major revisions through successful policy amendments covering areas such as benefits, provision of financing among others. The Social Security Act established the old age, survivor, and disability insurance entitlement program and at the time of its inception, had two major goals. One was the provision of old-age benefits to workers during their retirement or after the age of 65. Another provision was that of cash refunds for survivors in the event that wage earners died and to workers who are living but are not under covered employment. These provisions follow a benefit formula designed to be in favor of workers with short service or lower wages and those who had made a considerable contribution in terms of service time. In the beginning, the program received finances from employer and employee contributors, who had to pay one percent of their worker’s salary. The group covered by this program includes workers under 65 years of age who are in commerce and industry vocations. In 1939, the program underwent substantial changes. Among these changes was the commencement of monthly payments in 1940 not only to workers who had retired but also to beneficiaries as stipulated under the 1935 Act.
Delegate your assignment to our experts and they will do the rest.
In America, the OASDI program is largely referred to as a kind of social security and provides the largest program for income maintenance. The coverage for this program within the country is close to 96 percent, and as at now, workers finance the entire program using payroll taxes levied through the Federal Insurance and Self-Employment Contributions Acts (FICA and SECA) (Social Security Agency, 2015). As of December 1996, 43.7 million individuals received benefits that totaled $29.4 billion. The beneficiaries included 30.3 million workers who had retired, 7.4 million survivors, and 6.1 million workers who were disabled (Social Security Agency, 2015). Therefore, as a significant source of income for workers who retire, three out of five beneficiaries rely upon social security fully. In addition, such programs enable survivors to experience income continuity even after the working parent dies. In the event of long-term disability, this program covers four out of five workers and their families. In 1935, this program covered the non-agricultural and commerce industries, currently, close to all jobs have coverage. Here, an eligibility of all work types by citizens and non-citizens within the United States is covered. In addition, the program covers workers who work outside the country but are American citizens or resident aliens who gain employment through American affiliate firms, have been employed by foreign affiliates of American firms and in special cases, those workers who are self-employed.
The eligibility criteria for the Old Age, Survivor and Disability Insurance entitlement program is in-depth and comprehensive. To attain initial eligibility for individual benefits and those of the family members or survivors, a worker needs to obtain a minimum credit amount based on consistent work covered through official employment or self-employment. Such credits have the description of being quarters of coverage ("OASDI Overview," 2017). A good example in understanding quarter of coverage (QC) is in 2004, whereby, each QC was credited for every $900 in total covered earnings annually. Consequently, a total earning of 3,600 would earn the worker four QCs that are independent of the pay mode or earning state. Each year, the amount of money required for every quarter of coverage changes in relation to the increase in the average wage level. Most benefits require an eligibility criterion that supports full insurance. To be insured fully, the working individual has to have a number of QCs that are equal to the number of years that elapse between the age of 21 and the year in which the worker reaches the age of 62, as per the calendar, or a case whereby he or she dies or is disabled. Under this eligibility requirement, workers who attain the age of 62 by 1991 or later require a maximum number of 40 QCs in order for them to attain full insurance. In the case of disabled workers and those who die before the age of 62, the total amount of QCs required for a fully insured status relies on their age at the time a worker becomes disabled or dies. Overall, a minimum of 6 QCs is paramount regardless of stipulated age.
In social security, full insurance is the archetype of proper and sound coverage. In addition to having the right number of credits based on work performed, noncitizen workers who were assigned a social security number on January 1, 2004, or after need to meet certain requirements in order to make them eligible for personal and family benefits ("OASDI Overview," 2017). In addition, noncitizen workers are required to have gained admission in America as nonimmigrant visitors who are in the U. S. for business exclusively, or as alien crewmembers. This stipulation accords full insurance eligibility, which subsequently translates to comprehensive benefits. Aside from full insurance, current insurance ensures augmented protection in the event a worker dies prior to achieving full insurance. Here, benefits are paid to survivors who entail the worker’s children and the widow or widower. To attain current insurance, workers need to have earned six QCs during the thirteen quarters that end with the quarter of presumable death. This eligibility indicates that six out of the last thirteen quarters, together with the quarter in which death has occurred, are inclusive of the eligibility criteria.
While an eligibility criteria offer possibilities for the proper advancement of social well-being, other requirements can be an impediment to such progress. In this legislation, there are particular eligibility needs that are counterproductive and might bring about potential problems within individuals and the society as a whole. One potential problem is the ever-permeating issue of finances, especially, the overwhelming costs that are required to maintain a proper quarter of coverage in order to attain full insurance. In some communities, the funds needed to ensure an eligible criterion is sometimes quite high. Subsequently, high financial need results in disincentives and negative perceptions of the social security structure. This problem of negative incentives, although minimal, may devastatingly apply to the OASDI program. Moreover, heightened perception of disincentives creates stigmatization within a particular group or community. As a result, various amendments need to be effected in order for the aforementioned problems to mitigate. Although numerous alterations need consideration, the most pressing in such entitlement programs pertains to the fiscal structure. Reduction of eligibility costs or its strategic minimization, in relation to earning disparity, is a solution worth discovering.
In all advancements, change is inevitable, predominantly to social well-being, the alteration of policies result in better and more inclusive strategies that further social integration and overall prosperity. Through proper amendments within crucial program policies such as in the OASDI, social advancement is secured. Pertinent to such alterations is the revamp of fiscal policies to reflect budgeted costs and a monthly requirement that observes the minimal workers wage. Such a policy alteration will result in proper incentives for the program and more accountability that is uniform to stipulated human rights and socio-economic justice. Through averaging fiscal requirements, social inclusion takes place since marginalized individuals within the social strata become eligible (American Academy of Actuaries, 2015). Moreover, labor rights are a form of human rights; consequently, changes in financial requirements allow workers to benefit from their labor in the end, resulting in attained human rights. In conclusion, entitlement programs are essential to the fabric of society. While there may be pertinent policy problems that need a proper address, the underlying principle of social welfare programs is that of benefiting the society. Therefore, the government should dedicate its resources and assure proper and standardized welfare policies.
References
American Academy of Actuaries. (2015). Social Security Disability Program: Shortfall Solutions and Consequences (pp. 1-3). Washington, DC.
CONGRESSIONAL BUDGET OFFICE. (2012). Policy Options for the Social Security Disability Insurance Program (pp. 3-21).
OASDI Overview . (2017). Law.cornell.edu . Retrieved 27 August 2017, from https://www.law.cornell.edu/socsec/course/readings/oasdi.htm
Social Security Agency. (2015). Old-Age, Survivors, and Disability Insurance (pp. 9-11).
