Research Notes & Special Studies by the Historian's Office
Research Note #16: |
| This Research Note summarizes the major
categories of benefits and the year they were added to (or deleted
from) the Social Security Act, as well as significant expansions
or cut-backs to those benefits. This Research Note is intended to
provide a quick "snap-shot" of the development of the
Social Security program, as viewed in terms of the types of benefits
provided by the program. The aim of this table is to give the viewer a quick way to see something of the chronological sequence of the development of the major benefit categories in the Social Security program. It also provides a quick way to separate those benefits/provisions which expanded the program from those that reduced it. These broad benefit types are only one measure of the development of the Social Security program. Equally important are the coverage provisions, which determine which workers participate in the system, the benefit formulas, which often were adjusted with various offsets and reductions, and the financing provisions which determine tax rates, the taxable wage base, and related factors. Moreover, there are insured status requirements for each of these benefits, so the mere availability of a benefit-type at a given point in the historical sequence does not always mean that all persons fitting this general category would be eligible for Social Security benefits. But the list does indicate when in the historical sequence a particular type of benefit was first enacted. |
Summary of Table Highlights- A quick review of the table suggestions several generalizations about the historical development of the Social Security program. First, we can observe that following the passage of the 1935 Act, several new types of benefits were added to the program over the decades. Only two benefit types have been repealed outright: the lump-sum refund benefit from the original Act and student benefits as originally provided in 1965. The main period of the addition of new benefits peaked around 1968; most subsequent program expansions involved making existing benefits more "generous" by modifying the conditions of eligibility. Although there have been only two benefit types eliminated, there have been a number of modifications in the conditions of eligibility for various benefits. Some of these modifications have in fact made the program less generous. Particularly impacted by these types of modifications have been disabled individuals (through offsets due to possible receipt of Workers Compensation payments) and persons having a pension from non-covered employment (these are almost exclusively former government workers). We can also observe, as a broad generalization, that the 1972 Amendments to the Social Security Act marked a kind of informal watershed in the program's development. Most changes up to and including the 1972 law were expansions of the program, most changes since have been contractions. It is also interesting to notice that there have been numerous gender differences in benefit types over the years--always to the advantage of female beneficiaries. Women were first able to opt for early retirement in 1956, men in 1961; wives could collect spouses benefits starting in 1939, husbands only starting in 1950; the provisions involving the widowed and divorced have at various times been more generous toward women than men. It was only with the passage of the 1983 Amendments that these gender differences were reconciled and the program put on a "gender neutral" basis. Again, it is important to appreciate that other factors must be considered for a complete picture of the macro trends in the development of the Social Security system. Tax rates at various points in time, as well as benefit formulas, the presence or absence of COLAs, and other factors, all would have to be considered to provide a fully-formed picture of the program's history. |
| Benefit Expansions | ||
| Year |
Type of Benefit |
Modification of Benefit |
| Note: Years shown refer to year that change was enacted into law--effective dates may differ. | ||
| 1935 | Individual retirement benefits at age 65 Lump-sum refund provision for retirement before 1942 Lump-sum death benefit |
|
| 1939 | Wives age 65 or older Children under age 18, if student from 16-17 Widows age 65 and older Widowed mother at any age if caring for eligible child Surviving Children under age 18 Dependent parents age 65 or older, if no surviving widow or child under age 18 |
|
| 1946 | Student requirement at ages 16-17 eliminated for child's
benefits Dependent parents benefits if no surviving eligible widow or child |
|
| 1950 | Wives of any age if caring for eligible child Dependent husbands age 65 or older Divorced and dependent widows with eligible child Widower aged 65 and over if dependent |
Ad hoc "COLAs" first paid (general benefit increase) |
| 1956 | Disability benefits to workers age 50-64, offset by
Worker's Comp. payments Early retirement for women at age 62 Wife's benefits at age 62 Disabled Adult Children if disabled before age 18 Female dependent parent ages 62-64 |
Age for widow's benefits reduced to 62 |
| 1958 | Benefits for dependents of disabled workers | For dependent parents benefits, no other survivor
requirement eliminated Worker's Comp. offset against disability benefits eliminated |
| 1960 | Disability benefits at any age under 65 | |
| 1961 | Early retirement for men at age 62 Male dependent parent ages 62-64 |
Age for widower's benefits reduced to 62 |
| 1965 | Medicare for age 65 or older Divorced wife age 62 or older if married at least 20 years and dependent on husband Children age 18-21 if full-time student Surviving divorced wife if married at least 20 years and dependent on husband Special age 72 transitional benefits under certain conditions |
Age for widow's benefits reduced to 60 |
| 1968 | Disabled widows aged 50-59 (at reduced rate), including
divorced wife if dependent and married 20 years Disabled widower aged 50-61 if dependent |
|
| 1969 | Cap on wives/husbands/divorced wives/divorced husbands benefits eliminated | |
| 1972 | Automatic annual COLAs Delayed Retirement Credits added Dependency requirement eliminated for divorced wives Dependency requirement eliminated for divorced widowed mother Dependency requirement eliminated for surviving divorced wife Student benefits extended to grandchildren under certain circumstances. Disabled Adult Child if disabled before age 22 Student benefits extended to end of semester student attains age 22 Disability requirement dropped for widowers ages 60-61 |
|
| 1977 | Dependency requirement eliminated for husbands Duration of marriage for divorced wives lowered to 10 years Marriage requirement reduced to 10 years for surviving divorced wife Minimum benefit amount for retirement benefits |
|
| 1982 | Government Pension Offset does not apply to some wives/husbands | |
| 1983 | Husbands under age 65 caring for eligible child* Widowed father caring for eligible child under age 18* Widowed divorced husband, married 10 years* Divorced husband age 62 or older if married at least 20 years* Widowed father if caring for eligible child under 18 |
Divorced husband married at least 20 years Reduction for Government Pension Offset reduced somewhat for wives/husbands/divorced wives/divorced husbands Reduction in widows benefits eliminated for period prior to age 60 Dependency requirement dropped for widowers* |
| * Benefits under these categories were paid earlier under court decisions, but were added to the Social Security Act in this year. | ||
| Benefit Reductions | ||
| Year |
Type of Benefit |
Modification of Benefit |
| 1939 | Lump-sum refund provision eliminated | |
| 1965 | Students excluded from qualifying
wife as caring for eligible child Students excluded from qualifying widowed mother as caring for eligible child Modified Worker's Comp. offset for disability benefits reinstated |
|
| 1968 | Maximum cap put on wives/husbands/divorced wives/divorced husbands benefits | |
| 1977 | Scaled-back benefit formula
(the "Notch" was a by-product) The Government Pension Offset reduced Social Security benefits for spouses/divorced spouses/ widows/widowers who receive a pension from non-covered employment |
|
| 1981 | Student benefits phased-out, except for high school students under age 19 | Eligible child for widows/widowers
benefits excludes nondisabled child aged 16-17 Eligible child for divorced widows/widowers benefits excludes nondisabled child aged 16-17 Eligible child for wives/husbands benefits excludes nondisabled child aged 16-17 Lump-sum death benefit payable only to surviving spouse, or children eligible for benefits Minimum benefit eliminated First month of eligibility for retirement benefits reduced by one month for virtually all beneficiaries |
| 1983 | Six-month delay in COLA Normal Retirement Age gradually to rise from 65 to 67 The Windfall Offset Provision reduces the retirement or disability benefits paid to individuals who also receive a pension from non-covered employment |
|
| 1996 | Disability benefits eliminated for many drug addicts/alcoholics | |
| Larry
DeWitt |