Social Security Act Law and Legal Definition
The Social Security Act of 1935 was enacted for the purpose of providing retirement security for American workers. The act provided a system of old-age benefits for workers, benefits for victims of industrial accidents, unemployment insurance, aid for dependent mothers and children, the blind, and the physically handicapped.
The act created a uniquely American solution to the problem of old-age pensions. The U.S. social security insurance was supported from contributions in the form of taxes on individuals’ wages and employers’ payrolls rather than directly from Government funds. The act also provided funds to assist children, the blind, and the unemployed; to institute vocational training programs; and provide family health programs.
The act authorized the Social Security Board to register citizens for benefits, to administer the contributions received by the Federal Government, and to send payments to recipients. It also created a federal pension system funded by taxes on employers and employees.