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Social Security:
a social insurance program funded through dedicated payroll taxes called
FICA (Federal Insurance Contributions Act). Tax deposits are formally
entrusted to Federal Old-Age and Survivors Insurance Trust Fund, or Federal
Disability Insurance Trust Fund, Federal Hospital Insurance Trust Fund or
the Federal Supplementary Medical Insurance Trust Fund. The main part of the
program is sometimes abbreviated (OASDI), in reference to its three
beneficiaries (OA for retirement, S for widows and survivors income, D for
the disabled, and I for insurance). When initially signed into law by
President Franklin D. Roosevelt in 1935, the term Social Security
covered unemployment insurance as well. The term, in everyday speech, is
used only to refer to the benefits for retirement, disability, survivorship,
and death, which are the four main benefits provided by traditional
private-sector pension plans. In 2004 the U.S. Social Security system paid
out almost $500 billion in benefits. By dollars paid, the U.S. Social
Security program is the largest government program in the world. |