What is the Social Security Administration (SSA)?
The U.S. government’s Social Security Administration (SSA) is responsible for managing social programs that include retirement, disability, and survivor benefits, among other services. It also oversees the program’s funds and trust fund and grants Social Security numbers.
How the Social Security Administration Works
The SSA handles the Social Security program. Many Americans rely heavily on Social Security as part of their retirement income planning approach, especially given the low savings rates (which will be 4.6% as of February 2023).
According to the SSA, by the end of 2023, about 67 million Americans—retired workers, disabled workers, and survivors—were receiving Social Security payments. Among the most significant government programs in the world is Social Security.
Payroll taxes paid by employers, workers, and independent contractors finance the benefits. The Old-Age and Survivors Insurance (OASI) Trust Fund for pensioners and the Disability Insurance Trust Fund (DI) for disability recipients receive tax income and are responsible for disbursing benefits.
Social Security and Supplemental Security Income (SSI) are two different programs. The funding source is not payroll taxes. It helps the elderly, blind, and crippled with little money and resources.
Instead of having its headquarters in Washington, D.C., like most other U.S. government agencies, the SSA is located in Baltimore, Maryland.
The SSA dispersed ten regional offices, six processing centers, and over 1,230 field offices across the nation’s cities. It has over 60,000 employees.
Most of the regional Social Security offices that were closed due to the COVID-19 pandemic have reopened. The SSA keeps a record of office closures and emergencies on its website.
Services of the Social Security Administration
In addition to managing SSI and supervising retirement and disability compensation programs, the SSA offers various services, such as Medicare Parts A and B enrollment.
It also provides the Social Security numbers (SSNs) needed to obtain various services from the public and private sectors, including hunting licenses, credit financing, and insurance.
The Social Security Administration’s past
President Franklin D. Roosevelt signed the Social Security Act into law in 1935, establishing the Social Security Board. Since then, the SSA has undergone many rebrandings and operational modifications under various presidential regimes. It was once again an autonomous organization, having been a part of the Department of Health and Human Services until 1994.
In July 2021, President Biden removed SSA Commissioner Andrew Saul and named Kilolo Kijakazi the interim commissioner. Before her appointment, Kijakazi served as the SSA’s deputy commissioner for retirement and disability policy. Saul faced criticism for his attempts to limit the availability of disability benefits, his delay in supplying the data required to distribute stimulus monies, and his disagreements with labor unions about COVID-19 safety measures, which included remote work.
Saul’s tenure at the SSA was scheduled to end in January 2025, but because of two decisions made by the Supreme Court, presidents now have more power to dismiss appointments. In June 2020, one ruled that President Trump may dismiss the director of the Consumer Financial Protection Bureau (CFPB), while in June 2021, another permitted President Biden to fire the director of the Federal Housing Administration (FHA).
Annual Report from the Social Security Administration
Every year, the Social Security Board of Trustees publishes a report detailing the agency’s programs’ present and future financial standing. In contrast to the 2022 study’s prediction, the Social Security Board of Trustees’ 2023 report projects that the Old Age and Survivors Insurance Trust Fund’s (OASI) reserves will run out in 2033 instead of 2034.
This happened amid the yearly budget shortages brought on by Baby Boomer retirements. In 2033, payroll tax revenues will only cover 77% of planned benefits.
According to the 2022 report, the Disability Insurance Trust Fund (DI) is predicted to be in excess until 2097, an increase from 2096.
Until 2034, when the reserves run out, the combined OASI Trust Fund and the DI Trust Fund—together referred to as OASDI—are expected to cover 100% of payments. After that, 80% of benefits would be covered by ongoing fund revenue. We use this combined fund estimate to assess the overall health of the Social Security program.
Which Programs Are Under the Control of the Social Security Administration?
The Social Security program, which pays benefits to eligible retirees, disabled individuals, and their spouses, children, and survivors, is managed by the Social Security Administration (SSA). In addition, the Social Security Administration (SSA) manages Social Security number issuance, Medicare Parts A and B enrollment, and Supplemental Security Income (SSI) benefit payments.
What distinguishes Social Security from Supplemental Security Income?
People who are old or disabled and have little to no income might receive monthly cash payments from Supplemental Security Income (SSI) to assist them in fulfilling their basic requirements. Social Security retirement and disability payments are not related to this program.
How Can My Social Security Card Be Replaced?
If you need to replace your Social Security card but don’t need any additional adjustments, you may obtain a new card online at the SSA website.
The application is also available for printing, which you may complete and send back.
The Final Word
The Social Security Administration oversees, distributes, and manages payments to millions of Americans each year. Understanding the SSA’s operations will assist in guaranteeing that you get the benefits to which you are legally entitled.
Conclusion
- The United States’ Social Security program is managed and overseen by the Social Security Administration (SSA).
- The Social Security retirement income and disability income programs are two benefits the SSA oversees.
- Along with overseeing the program’s budget and trust funds, the SSA is responsible for assigning Social Security numbers.
- In addition, the SSA handles Medicare Parts A and B enrollment and the administration of Supplemental Security Income (SSI) payments.
