Social Security

Social Security is a social insurance program that is funded through dedicated payroll taxes called Federal Insurance Contributions Act. Tax deposits are formally entrusted to the Federal Old-Age and Survivors Insurance Trust Fund, the Federal Disability Insurance Trust Fund, the Federal Hospital Insurance Trust Fund, or the Federal Supplementary Medical Insurance Trust Fund.

Social security is primarily a social insurance program providing social protection or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. Social security may refer to:

* social insurance, where people receive benefits or services in recognition of contributions to an insurance scheme. These services typically include provision for retirement pensions, disability insurance, survivor benefits and unemployment insurance.

* income maintenance—mainly the distribution of cash in the event of interruption of employment, including retirement, disability and unemployment

* services provided by administrations responsible for social security. In different countries this may include medical care, aspects of social work and even industrial relations.

* More rarely, the term is also used to refer to basic security, a term roughly equivalent to access to basic necessities—things such as food, clothing, shelter, education, money, and medical care.

*Means-tested benefits. This is financial assistance provided for those who are unable to cover basic needs, such as food, clothing and housing, due to poverty or lack of income because of unemployment, sickness, disability, or caring for children. While assistance is often in the form of financial payments, those eligible for social welfare can usually access health and educational services free of charge. The amount of support is enough to cover basic needs and eligibility is often subject to a comprehensive and complex assessment of an applicant’s social and financial situation.

*Non-contributory benefits. Several countries have special schemes, administered with no requirement for contributions and no means test, for people in certain categories of need – for example, veterans of armed forces, people with disabilities and very old people.

*Discretionary benefits. Some schemes are based on the discretion of an official, such as a social worker.

*Universal or categorical benefits, also known as demogrants. These are non-contributory benefits given for whole sections of the population without a test of means or need, such as family allowances or the public pension.

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