- Social Security Act
U.S. Govt.a law passed in 1935 providing old-age retirement insurance, a federal-state program of unemployment compensation, and federal grants for state welfare programs.
* * *(Aug. 14, 1935) Legislation that established a national old-age pension system in the U.S. Dissatisfied with the government response to the Great Depression, about five million people joined "Townsend clubs" to support the plan of Francis E. Townsend (1867–1960) to demand a $200 monthly pension for everyone over the age of 60.Pres. Franklin D. Roosevelt established a committee on economic security (1934), which recommended legislative action to the U.S. Congress. The act provided old-age benefits to be financed by a payroll tax on employers and employees. The system was later expanded to include dependents, the disabled, and others.
* * *▪ United States (Aug. 14, 1935), original U.S. legislation establishing a permanent national old-age pension system through employer and employee contributions; the system was later extended to include dependents, the disabled, and other groups. Responding to the economic impact of the Great Depression, 5,000,000 old people in the early 1930s joined nationwide Townsend clubs, promoted by Francis E. Townsend to support his program demanding a $200 monthly pension for everyone over the age of 60. In 1934 Pres. Franklin D. Roosevelt set up a committee on economic security to consider the matter; after studying its recommendations, Congress in 1935 enacted the Social Security Act, providing old-age benefits to be financed by a payroll tax on employers and employees. Railroad employees were covered separately under the Railroad Retirement Act of 1934. The Social Security Act has been periodically amended, expanding the types of coverage, bringing progressively more workers into the system, and adjusting both taxes and benefits in an attempt to keep pace with inflation.
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