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Social Security program: A timeline of important changes Click on the year to see the details, and…

Social Security program: A timeline of important changes

Click on the year to see the details, and click on the arrow to see the next time range

  1. 1935

    President Franklin D. Roosevelt signed into law the “Social Security Act.” The benefits received were based on cumulative lifetime earnings of the employee.
  2. 1939

    Changed the benefit formula from cumulative lifetime earnings to average monthly earnings for the quarter just prior to retirement. It also weighted the formula so lower wage earners would receive a higher percentage of their income replaced by their Social Security check.
  3. 1950

    Increased benefits paid by 77% to account for cost-of-living increases since 1939 and substantially expanded the scope of the program by including a broader range of the workforce.
  4. 1952

    Benefit levels increased by 12.5% to account for cost-of-living increases.
  5. 1954

    Increased benefits by 13% to account for cost-of-living increases and further broadened workers’ eligibility for benefits by including self-employed, state and local government employees and ministers.
  6. 1956

    Began a program to provide disability benefits to workers.
  7. 1958

    Increased benefits by 7% to account for cost-of-living increases, provided benefits for dependents of disabled workers and provided for 12 months of retroactive payment to disabled workers.
  8. 1960

    Lowered the age of eligibility for disability benefits from 50 years old to any age and increased children’s survivor benefits to 75% of their parents’ retirement benefit.
  9. 1961

    Decreased the age of eligibility for Social Security benefits from 65 years old to 62 years old with a lower benefit.
  10. 1965

    Created the Medicare program, expanded the definition of disability, provided college students benefits if their parents were collecting Social Security, provided benefits to divorced wives and younger widows if they had dependents at home.
  11. 1967

    Increased the benefits by 13% to account for cost of living increases and provided benefits to disabled widows and widowers at reduced rates as early as 50 years old. It also made it easier for younger workers to qualify as disabled, gave credit for military service and provided benefits to ministers unless they opted out versus opting in.
  12. 1966

    Provided benefits to workers from the general revenue fund if the worker reached age 72 prior to 1968, even if they had no quarters of coverage under the act. This meant the Social Security Fund was reduced by these citizens but instead their checks came from income tax revenues.
  13. 1969

    Increased benefits by 15% to account for cost-of-living increases.
  14. 1971

    Increased benefits by 10% to account for cost-of-living increases.
  15. 1972

    Benefits increased by 20% to account for cost-of-living increases and provide for regular cost-of-living increases to benefits going forward. It provided for delayed claiming credits, minimum benefits for low-wage earners, provided benefits for dependent grandchildren and Medicare for disabled beneficiaries.
  16. 1977

    [First measure taken to reduce benefits]

    Change to the computation of benefits for those reaching age 62 in 1979. The change related to the way earnings were adjusted for inflation in the benefit calculation and lowered benefits slightly for some. Froze the minimum benefit amount and reduced spousal benefits for those receiving a government pension. After these two steps to reduce benefits, this amendment increased the delayed claiming credits and had several other measures that would in essence increase benefits.
  17. 1980

    [Second measure taken to reduce benefits]

    Due to the expansion and increased expenditures from the disability insurance program, there were steps taken to reduce these benefits, which included the establishment of a family disability benefit limit. The amendment also attempted to reduce disability benefit payments by requiring the secretary to review the disability benefit recipient’s eligibility every three years. The amendment also took steps that would increase benefits for some disabled people which included the elimination of the 24-month waiting period for Medicare for a re-occurrence of disability. If a disabled person attempted to return to the workforce, but later found themselves unable to do so, they received immediate disability within a 15 month re-entitlement period.
  18. 1981

    [Third measure taken to reduce benefits]

    Phased out benefits for children of retirees attending college, ended Social Security benefits for parents once their child turned 16 years old, limited the lump sum death benefit ($250) to only spouses and children.
  19. 1983

    [Fourth measure taken to reduce benefits]

    Gradually increased the age for full retirement benefits eligibility from 65 to 67, pushed back the yearly cost-of-living increases from June to December each year, began taxing 50% of the benefits received, eliminated benefits for workers receiving pension benefits from non-covered employment.
  20. 1984

    Responded to concerns regarding the 1977 to 1983 amendments attempting to reduce disability benefits and put in place restrictions on the agency’s ability to reduce or eliminate disability benefits.
  21. 1985

    [Very Important Legislative Change]

    Legislation restricted Social Security changes in various stages of the Congressional budget process. The provision made it out of order for either the House or Senate to take up changes in Social Security as part of a reconciliation bill or reconciliation resolution. Separate votes in each body, suspending or otherwise altering the rules under which the respective bodies operate, would be required to make consideration of any proposed Social Security changes permissible.
  22. 1986

    Made permissible inflation adjustments lower than 3%. Prior to that, inflation had to exceed 3% in order for Social Security benefits to receive a cost-of-living adjustment.
  23. 1987

    Extended coverage to military training of inactive reservists and provided automatic disability benefits if a disabled worker returned to work but was later deemed disabled again.
  24. 1989

    Extended benefits to children adopted after the worker became entitled to benefits.
  25. 1990

    Extended benefits to employees of state and local governments who did not have retirement plans. Extended benefits to spouses whose marriage to the worker is otherwise invalid and liberalized the definition of disability for disabled widows and widowers.
  26. 1993

    [Fifth measure to reduce benefits]

    Reconciliation act of 1993 made up to 85% of Social Security benefits taxable.
  27. 1996

    [Sixth measure to reduce benefits]

    Prohibited disability and Social Security benefit eligibility for individuals whose disabilities were based on drug and alcohol addiction.
  28. 2000

    Decreased the age at which you could claim full benefits and earn a meaningful wage from age 70 to 65.
  29. 2001

    [Seventh measure to reduce benefits]

    Eliminated wage credits for members of the uniformed services for all years after 2001.
  30. 2009

    [Eighth measure to reduce benefits]

    Eliminated Social Security benefit payments to people that had broken the law and were currently incarcerated.
    Provided a one-time $250 payment to every adult eligible for Social Security benefits.


Source: Spectrum Management Blog

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