SOCIAL SECURITY

Social Security

Social Security

Introduction

The Security Social understood and accepted as a right that attends every person to access, at least basic protection states need to meet. Thus, the universal conception on the issue has led each nation to organize in order to set up various models to the service of this goal. In this context always conceived the state as the main, if not the only promoter of this branch of the policy because the socioeconomic programs of social security are built into the planning of this general. However, not always achieved through these policies and implement a system of fair and equitable social security, in which the person had the gravity it deserves. Add to this rapid advancement of the global economy. The Social Security Act was enacted in 1935. It has been amended and expanded on many times. The 1939 amendments, also known as the Federal Insurance Contributions Act (FICA), changed its funding arrangement, established trust funds and add benefits for survivors of deceased workers. In 1940, the system paid its first monthly retirement benefit to the legendary Ida May Fuller. She had contributed a total of $24.75 to the system over 2½ years and collected $22,889 in benefits over the next 35 years. Her story demonstrates three important features about Social Security. The State must implement certain social policies to guarantee and ensure the welfare of citizens in certain frames such as health, education and in general all the possible spectrum of social security. (Rupp, 1998)

Thesis Statement

In this paper we will focus on the implementation of certain social policies to guarantee and ensure the welfare of citizens in certain frames such as health, education and in general all the possible spectrum of social security.

Discussion and Analysis

Social Security is not a welfare program. Retirement benefits are a statutory right for any participant who has attained the age of 62 and has 40 credits (quarters of covered work). A participant must have earned at least $1,120 for a quarter to count as a credit as of 2010. The workers' primary insurance amount is the monthly retirement benefit to which he or she is entitled to at FRA. The primary insurance amount is based on the average indexed monthly earnings (AIME). The highest 35 years of earnings in covered employment are indexed (converted to current dollars) based on national average wage growth through age 60? Wages increase more rapidly than prices because of growth in labor productivity, and this keeps the initial retirement benefit in line with improvements in the standard of living. Earnings after age 60 enter the calculation at their nominal level.

The benefit formula is progressive. Once calculated, the AIME is cut into three segments separated by “bend points.” In 2010, the first $761 of AIME was multiplied by 90%, earnings between $761 and $4,586 by 32% and all remaining covered earnings by 15% to determine the monthly benefit amount. This arrangement increases the wage replacement rate of low lifetime ...