Social Security is a federal social insurance program in the United States, established as an institution by the Social Security Act of 1935. It is commonly used to refer to the Old-Age, Survivors, and Disability Insurance (OASDI) program. The Act was signed into law by President Franklin D. Roosevelt on August 14, 1935, as a key part of his New Deal domestic program. It was created to solve the problem of economic insecurity for workers and their families, particularly providing a national system of old-age benefits amid the widespread suffering of the Great Depression.
The system works as a contributory program, primarily funded through payroll taxes collected under the Federal Insurance Contributions Act (FICA). Both employees and employers contribute equally to this tax. These funds are entrusted to the Federal Old-Age and Survivors Insurance (OASI) Trust Fund and the Disability Insurance (DI) Trust Fund. The original Act provided for Old-Age Insurance for the insured worker, but was later expanded to include survivors and disability benefits. The Act also established a state-administered unemployment insurance system. A major connection is the Social Security Amendments of 1965, which established the healthcare programs Medicare and Medicaid. For an Indian reader, the concept connects to the legislative framework provided by the Code on Social Security, 2020, which governs various social security benefits in India.
The program has changed recently with the signing of the Social Security Fairness Act on January 4, 2025. This Act eliminated the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO), which had previously reduced benefits for millions of former public employees. The repeal is retroactive to cover benefit payments from January 2024.