Policy Quiz Chs. 9 & 10

What approach did the Social Security Act have to social welfare policy?

Universal and Institutional

Social insurance

a collectively funded program for workers and their dependents that provides economic resources at the conclusion of employment.

solvency crisis

a situation when a bank's liabilities exceed its assets

401(k) plan

a tax-deferred investment and savings plan that acts as a personal pension fund for employees Employees must contribute a portion of their income to an individual account. Under some plans, employers also make contributions or match the employee's contribution. DC plans do not provide a guaranteed level of retirement income, because they are not insured, relying on private investment programs such as stock market-based mutual funds to create income growth. Although traditional pensions are insured by the federal government, and companies and individuals get tax subsidies for defined contributions, not all workers have the option of participating in a retirement plan.

Area Agencies on Aging

agencies responsible for planning and coordinating services for older people

2000 amendment to OAA

created the NFCSP included profisions for a specialized Native American Caregiver Support Program

What are some policty choices that could be made to maintain Social Security?

cutting benefits limiting eligibility raising taxes creating other forms of investment for old age

Old-age, survivors, Disability, and health insurance (OASDHI)

full name of Social Security and Medicare

Age Discrimination in Employment Act of 1967

legislation that protects people who are 40 years of age or older from employment discrimination based on age

What were the frist social welfare efforts following the start of the Great Depression?

loans and grants to states to pay for direct relief and create work programs --- However, state efforts were not enough

Old-Age Insurance

part of the original Social Security Act legislation; program that provides retirement coverage (now part of OASDI) Provided benefits for retired workers who had paid taxes into the system while employed in industry and commerce

Adult Protective Services (APS)

programs for the protection of elderly people from maltreatment

Defined Contribution (DC) Plan

retirement plans in which employees contribute a portion of their income to an individual account that includes investing options in mutual funds in the private sector

What are the two components of the Social Security Act?

social insurance and public assistance

What are the core services funded by the OAA?

support, nutrition, preventive health care, elder rights, and caregiver supports

What do supporters of privatization of Social Security suggest for the investments of the Social Security trust fund?

they suggest a more aggressive investment program for the trust fund to bring in greater revenue One way to achieve this would be to allow trust funds to be invested in the stock market and other, more risky venues. Again, the argument against this centers on security and guaranteed benefits. Allowing the volatility of the market to affect the solvency of the trust fund is risky and contrary to the founding principles of the Social Security program.

National Family Caregiver Support Program (NFCSP)

this program provides information, assistance, and support to caregivers; counseling and training to help caregivers make decisions and solve problems related to their roles as caregivers; and respite care to temporarily relieve caregivers from their responsibilities

What was the overall goal of the OAA?

to create a governmental agent that would coordinate various existing services and create new ways to better serve older people.

Why was the Vulnerable Elder Rights Protection Law (Title 7, 1992) created by Congress?

to protect and enhance the basic rights and benefits of vulnerable older people: individuals who may need advocacy on their behalf because their physical or mental disabilities, social isolation, limited educational attainment, or limited financial resources prevent them from being able to protect or advocate for themselfes

What is the bottom line difference between DB and DC plans?

"where the company once had to be sure it had enough money to pay pensions way out into the future, now the employee/retiree bears all the investment risk"

What are the average benefits of Social Security per year

$17,520

what is the estimated economic value of unpaid family and informal caregivers?

$450 billion

How many people in the US are over the age of 65?

1 out of 7 people (roughly 49.2 million)

Which two factors are critical to consider when thinking about the projected Social Security situation in the next 15-20 years

1. Incremental changes can be made to alter the financial forecast 2.Demographics are difficult to predict and, therefore, the overall situation may turn out to be positive for the financial health of the system.

What are the most frequent reasons for elder abuse in order of frequency?

1. self-neglect 2.caregiver neglect or abandonment 3.financial exploitation 4.Emotional/psychological/verbal abuse 5.Sexual abuse

What is the Medicare contribution for employees?

1.45% of earnings

What is the relationship to the victim of the identified perpetrator of elder abuse in order of frequency?

1.Adult child 2.other family member 3.unknown 4.spouse / intimate partner

What is the OASDI contribution for people who are self-employed?

12.4% of earnings

When was Medicare established?

1965

Title VII

1992 -- Addressed the prevention of abuse, neglect, and exploitation of older people

What is the Medicare contribution for people who are self-employed?

2.9%

What is the most popular defined contribution plan?

401(k)

About how many people are informal caregivers of older adults?

45 million people

What is the OASDI contribution for employees?

6.2% of earnings

What percent of people aged 65 and older receive Social Security benefits?

84%

How much of the American workforce is covered by OASDI?

94%

Supplemental Security Income (SSI)

A federal program established to provide assistance to elderly persons and persons with disabilities

Medicare

A federal program of health insurance for persons 65 years of age and older

Pension

A form of retirement savings, typically tied to prior employment

What was the New Deal?

A set of legislative reforms put place by FDR that set a new legislative tone for the country. These new programs were desinged to employ people and return the economy to working order.

What were some reasons for opposition to the Social Security Act in the 1930s?

Accusations of socialism and concerns about dependency. There were also views that were shrouded in racism -- people did not want to pay for the welfare of people they viewed as inferior

Federal Unemployment Trust Fund

All taxes collected from employers earmarked for unemployment compensation the fund is invested as a whole, but each state has a separate account from which to pay benefits. The states directly administer the programs. Benefits are calculated according to the worker's past wages within limits set by each state. Since 1949, the program has been administered under the Department of Labor.

Institutional social welfare programs

Built into the social and economic structure of our society and are a normal and expected part of our social system.

Disability Insurance

Coverage for people who must stop working because of a disability Added in 1956 to provide cash benefits for disabled workers.

What are the two types of pensions?

Defined Contribution (DC) and Defined Benefit (DB)

What public assistance programs of today fall under the Social Security Act?

TANF SSI Medicaid Block Grants to states CHIP Child welfare services

What are the eligibility requirements for Social Security?

Eligibility requirements for Social Security include working for at least 40 quarters (10 years) in covered employment and originally reaching the retirement age of 65 years, although by the year 2022, the retirement age will have risen to 67 years. Spouses and children of workers who have died are eligible for survivorship benefits. There are some exceptions and variations to these rules, and the specifics change from year to year.

Committee on Economic Security

FDR created this committee, chaired by Secretary of Labor Frances PErkins, and charged it with the task of studying the problem of economic insecurity and making legislative recommendations on it. Drawing on state experiments and European models, the committee developed a plan that was endorsed by the president and sent to Congress. After months of debate, the Social Security Act was passed/

What are some components of the Social Security Act today?

Federal Old-Age, Survivors, and Disability Insurance Benefits Grants to States for Unemployment Compensation Administration Grants to States for Aid and Services to Needy Families with Children and for Child Welfare Services Maternal and Child Health Services Block Grant Temporary State Fiscal Relief Administration Special Benefits for Certain World War II Veterans Miscellaneous Provisions Relating to Employment Security General Provisions, Peer Review, and Administration Simplification Advances to State Unemployment Funds Supplemental Security Income for the Aged, Blind, and Disabled Grants for Planning Comprehensive Action to Combat Mental Retardation Health Insurance for the Aged and Disabled (Medicare) Grants to States for Medical Assistance Programs (Medicaid) Block Grants to States for Social Services State Children's Health Insurance Program

Sandwich generation

Group of people who are caring for both their parents and their children.

What were survivors benefits?

If a worker died, dependent family members would continue to receive benefits.

What concepts of the Social Security Act have solidified public perception of the program?

Insurance, fairness, and entitlement

Why was the impact of the New Deal significant for social welfare policy in America?

It firmly placed the federal government at the head of social welfare support and it contributed to the return of economic stability.

How is Social Security Tax a regressive tax?

It is proportionally greater for people with low incomes than for people with higher incomes. Therefore, because of the cap, as a person's salary rises, a decreasing percentage of income is withheld. Some argue that this is unfair, because people with lower incomes pay a larger percentage of their salary. For example, in 2019 a person who earned $30,000 paid $2,295 in Social Security and Medicare taxes, or 7.65 percent of total income. A person who earned $150,000 paid $10,415, or 6.9 percent of overall salary, and a person who earned $300,000 paid $12,590, a total of 4.2 percent of overall salary. So although the higher-salaried person paid more in tax dollars, the proportion of the tax was less.

How is Social Security a social insurance program?

It is social because it covers almost every employed person in this country, and it is insurance because all payments into the program are pooled to cover all citizens collectively.

What amendments were made to the Age Discrimination in Employment Act (ADEA) in 1990?

It was amended to include the Older Workers Benefit Protection Act

FICA -- Federal Insurance Contributions Act

Law that mandates the payment for employees. The amount deducted for FICA is shown on workers' paychecks. Employers match the employee contribution, and self-employed workers pay both the employee and the employer taxes. The tax applies to a set amount of earnings, for which there is a ceiling. The upper limit increases annually to account for inflation.

Senior Citizen's Freedom to Work Act

Legislation that removed barriers so that seniors could work without having their Social Security benefits reduced

What are some programs included in the Title 7 legislation?

Long-term care ombudsperson program, programs for the prevention of abuse and exploitation, and state legal assistance

Does medicare cover assisted living?

Medicare does not cover assisted living; Medicaid covers assisted living only when it is a medical necessity for eligible low-income people.

Social Security Trust Fund

Money in the trust fund can be used only for the OASDI program in the form of monthly benefits, vocational rehabilitation services for disabled beneficiaries, administrative costs, and lump-sum death payments for eligible survivors. Therefore, money in the trust fund cannot be used for any other government purpose. FICA revenues that exceed the outlays for a given year are invested in interest-bearing Treasury bonds, which are assets of the trust fund, to be used when needed to cover Social Security costs.

Is the money in the Social Security Trust Fund sitting in a bank account?

No, because, under laws regulating the trust fund, the money is invested in Treasury bonds, the federal government cannuse the money, with the obligation to pay it back with interest

What were some of the initial limitations of the Social Security Act?

Not all workers were covered the program was funded through payroll tazes as opposed to general tax revenues. Limitations for women and POC -- those how tended to have lower lifetime earnings than men received lower benefit amounts Program was based on the family model of married stay-at-home mothers Farm and domestic workers (often POC) were excluded from the program OASDI benefits are not sufficient to provide a comfortable retirement of leisure and travel Not all older people depend on Social security With more people living longer there will be more recipients and hence more dollars will be needed to pay for the benefits

Which to social welfare policies primarily guide services to promote well-being and provide protection for older adults?

OAA and ADEA

Defined Benefit (DB) Plans

Often called "traditional pension plans"; employees receive a guaranteed level of retirement income based on years of service

What social insurance programs of today fall under the Social Security Act?

Old Age, Survivors, and Disability Insurance Unemployment Insurance Workers Compensation Medicare

Are the benefits of the Social Security program progressive or regressive?

Progressive. The program redistributes income from those who have higher incomes to those who have less. Thus, for low-income earners, upon retirement, Social Security benefits will replace 50-60 percent of their typical wages, which for high-income earners the replacement rate would be lower, averaging around 30-35 percent

Unemployment Inurance (UI) Program

Provided through federal-state partnerships that give benefits to regularly employed members of the labor force who may become involuntarily unemployed.

Medicare Modernization Act of 2003

Revision to include coverage of prescription drug costs under the medicare program

What are the conflicting values and beliefs in the nation regarding our care of the elderly?

Self-reliance vs. Social responsibility Crisis over prevention

Why are social security benefits important?

Social Security benefits reduce the number of elderly people who live in poverty In 2015, Social Secury lifted 15 million senior above the poverty line -- or nearly 1/2 of seniors

What is the key national social insurance program in the United States?

Social security

What did the OAA do?

The OAA established the Administration on Aging and ensured the well-being of older persons with programs that included in-home services, transportation, legal assistance, and outreach.

What major turning point demonstrated that the market system was not perfect?

The Stock Market Crash of 1929

What is the intention of the development of Unemployment Insurance?

The UI program is designed to help a person who has been regularly employed and, through no fault of his or her own, loses that employment. He or she is eligible to receive weekly benefits to supplant some of the lost wages. The Social Security Act offers employers tax credit incentives to participate in the program and authorizes federal grants to cover the administrative costs. The UI program is financed through an employer tax that entitles the employer to receive a tax credit. Under the guidance of federal standards, each state decides the amount and duration of benefits, coverage, contribution rates, and eligibility requirements. State regulations vary greatly, but all follow the major federal guidelines in determining program eligibility within the state's jurisdiction

What was a goal of the Social Security Act?

The goal of the legislation was to create a system tied to the employment market. The reluctance to rely on relief, or direct case assistance, was evident in the development of the Social Security Act.

What aspects make Unemployment Insurance a social insurance program?

UI benefits are provided as a right. Recipients are not required to take a means test.

What was happening economically when the stock market crashed?

The result of years of extended credit, little savings, and market speculation was economic upheaval on scale never before experienced in the U.S. The existing network of social and charitable supports was insufficient to provide for the need created by the Great Depression

What legislative changes have been made to change the Social Security Program so it would not run out of money?

The retirement age was raised from 65 to 67 years, cost-of-living increases in benefits were delayed, the witholding tax was increased, and the taxable income ceiling was raised.

What influenced the development of Social Security?

The social and economic upheaval of the Great Depression

Pension Protection Act of 2006

This legislation made significant improvements to U.S. retirement laws. Among those changes were stronger requirements for companies to adequately fund their pension plans, as well as creating incentives for employees to contribute more to their defined contribution plans (Day, 2006). The law also requires periodic updates filed with the Internal Revenue Service to be sure to maintain solvency of the plan.

What is the Older Workers Benefit Protection Act?

This policy prohibits employers from denying benefits to older employees. Certain benefits such as health insurance can be more costly for older workers. This legislation protects older workers from being excluded from having benefits because of the greater cost. At the same time, it allows employers to offer reduced benefits based on age, as long as the cost of providing benefits for older workers is the same as the cost of providing benefits for younger workers

What were the Original titles in the Social Security Act of 1935?

Title I: Grants to States for Old-Age Assistance Title II: Federal Old-Age Benefits Title III: Grants to States for Unemployment Compensation Administration Title IV: Grants to States for Aid to Dependent Children Title V: Grants to States for Maternal and Child Welfare Title VI: Public Health Work Title VII: Social Security Board Title VIII: Taxes with Respect to Employment (for Old-Age Insurance) Title IX: Tax on Employers of Eight or More (for Administration of Unemployment Compensation) Title X: Grants to States for Aid to the Blind Title XI: General Provisions

Long-term care

an array of services for elderly, chronically ill, and disabled persons that are necessary for day-to-day living and personal care

Who in the American workforce is not covered by OASDI?

civilian federal employees hired before 1984; railroad workers who are covered by the federal railroad retirement system; and some state and local government employees who are covered by their employers' retirement systems

Older Americans Act of 1965 (OAA)

federal legislation to improve the lives of elders

Social Security and Medicare accounts for how much of the national budget?

more than 1/3

what entity guaranatees the solvency of Defined Benefit (DB) programs?

the federal government through the Pension Benefit Guaranty Corporation

Old-age, survivors, and disability insurance program (OASDI)

the program commonly referred to as Social Security

What are the general services are planned and implemented by AAAs?

transportation, outreach, case management, senior centers, recreation and nutrition programs, visiting homemakers, home health aids, health-related programs such as immunizations, financial counseling, and representation in guardianship proceedings.

Most women recieving social security benefits do so as _______

wives or survivors of eligible workers A wife or widow can choose to receive benefits based on her own work history or based on the earnings of her spouse. For most women, monthly benefits are greater if based on the earnings of their husbands. A woman still living with her husband receives 50 percent of his entitlement. Therefore, a married couple typically receives 150 percent of the husband's benefits. If a woman becomes a widow, she is entitled to 100 percent of her late husband's benefits.