Overview

http://www.justfacts.com/socialsecurity.asp#overview

* In 1935, Congress passed and Democratic President Franklin D. Roosevelt signed into law the "Social Security Act." This law created "a system of Federal old-age benefits" for workers and their families. In 1956, the law was amended to also provide disability benefits.[3] [4]

* Social Security is composed of two separate entities: The "Old-Age and Survivors Insurance" program and the "Disability Insurance" program. Each program has separate finances handled through two separate trust funds. For the purpose of simplicity, the figures shown below reflect the combination of both programs unless otherwise stated.[5] [6]

* The Supplemental Security Income (SSI) program provides benefits for aged, blind, and disabled people without regard to prior workforce participation. It is administered by the Social Security Administration, but it is not funded by Social Security taxes. Unless otherwise stated, this program is not covered in this list of facts.[7]

* As of June 30, 2009, 51.9 million people or 16.9% of the U.S. population were receiving monthly Social Security benefits.[8]

Popular Perceptions

* Perception about Social Security benefits:

I am entitled to the money. It's my money. I've saved it.[190] [191]

* All taxes that have been paid into the Social Security system since its inception have already been (1) spent to pay for benefits, (2) spent to fund the administrative overhead of the program, or (3) loaned to the federal government.[192] [193] [194] [195]

* The website of United States Social Security Administration states:

There has been a temptation throughout the program's history for some people to suppose that their FICA payroll taxes entitle them to a benefit in a legal, contractual sense.… Congress clearly had no such limitation in mind when crafting the law. ... Benefits which are granted at one time can be withdrawn.…[196]

* In 1960, the Supreme Court ruled that entitlement to Social Security benefits is not a contractual right.[197]
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* Perception about Social Security's finances:

The only reason Social Security is in trouble is that our "leaders" have looted it for years. That is not the fault of Social Security. It would be fine if it were administered honestly.[198] [199]

* No money has been taken from the Social Security program.[200] [201] By law, Social Security surpluses must be loaned to the federal government,[202] [203] which is a requirement that was established in the original Social Security Act of 1935.[204] [205] [206] [207] The federal government is legally required to pay back this money to the Social Security program with interest,[208] and it has never failed to do so.[209] [210]

* The assets of the Social Security program include all of the money it has loaned to the federal government.[211] [212] Even if this money is repaid with interest, it is projected that the Social Security Trust Fund will become exhausted in 2037,[213] and the program will have deficits every year thereafter into the foreseeable future.[214]

* If extra money had not been added to the Social Security program by increasing tax rates above the levels specified in the original Social Security Act, the program would have been unable to pay full benefits since before 1980.[215]