Implementing Social Security - Part 3 - Old-Age Assistance

Title I of the original Social Security Act of 1935 addressed the need to help the elderly. It has been estimated that in 1934, roughly half of the nation's elderly citizens lacked the means to be self-supporting. Prior to 1930 there was virtually no public aid for the elderly, though between 1930 and 1935 the situation became so desperate that by 1935 thirty states had some form of old-age pension or relief set up. However, these independent efforts by the states were inadequate and distinctively discriminatory; favoring people in particular areas or industries that were politically influential in the states concerned.

Title I of the Social Security Act imposed a mandate on each U.S. state to develop a comprehensive plan for providing the elderly poor with some relief. Each state had to develop a plan on how to provide relief and appoint an agency to oversee its implementation and operations in that state. After developing such a plan, it would be submitted to the Social Security Board (see Part 2) for review and approval. Once the plan was approved, the federal government would make an annual lump sum payment to the state to help offset the expense, although it was required that the states themselves would also cover at least a portion of the expense [Section 2 (a)(2)]. Five percent of the lump sum payment by the federal government could also be used to offset the state's administrative expenses.

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Because of the discriminatory practices found in the independent state initiated old-age pension plans, the Social Security Act included strict anti-discriminatory measures. These included ensuring that the old-age pension would apply to all legal residents of the state, would apply equally in all districts and subdivisions of the state, requirements that set the qualifying age at more than sixty-five years (with some one-time exceptions), and any citizenship requirement that would exclude any U.S. citizen. These measures did not, however, effect institutional discrimination still prevalent in the U.S. at the time. This meant that African-Americans, Native-Americans, women and others that had lesser legal rights could still be excluded legally.

The federal government was also concerned that the individual states would attempt to swindle the federal government, by implementing a good plan, getting the approval of the Social Security Board, and then changing it radically from what was approved. While the states retained the administration of the plan, Section 2 (1)(5) specifically mandated that the states provide the means to maintain the approved plan. The state agencies were also required to document the work of their program for review by the Social Security Board upon request. Further, if the Social Security Board deemed changes to the approved plan to be too much, the Social Security Board had the right to stop federal payments to states. Just to be sure, this right to halt payment was done on a quarterly basis, so that the state could not implement changes for part of the year and then return to the approved plan later and still receive full payment.

Title I, like all of the original Social Security Act of 1935, has underwent many changes and is not recognizable today. However, this represented the very time that the elderly throughout the country could count on some form of public assistance if they were in need.

Implementing Social Security - Part 3 - Old-Age Assistance

Wendy Polisi is one of the founders of Social Security Insider Secrets. To find out more about social security retirement and social security disability benefits, please visit her at Socialsecurityinsidersecrets.com.