Actuarial aspects of financing old-age and survivors insurance. 1953.

.T HE Social Security Act in 1935 established a dual program of protection against old-age dependency-old-age benefits, a contributory social insurance system covering primarily industrial and commercial workers; and old-age assistance, a program administered by the States (but partly financed by the Federal Government) to give financial assistance to aged persons who were in need. Under both programs, the “aged” were defined as persons aged 65 and over. In theory, a broad national social insurance program should, at least eventually, meet virtually the entire problem of old-age dependency. A public assistance program should be designed primarily to help those already aged when the dual program began, although there may always be some need of assistance for persons with special needs. The social insurance program would have to be applicable to all types of employment rather than merely to industrial and commercial workers. It was believed, when the Social Security Act was adopted, that extension of coverage would be largely an administrative problem that could be solved by subsequent legislation after the system was established and operational experience had developed. Accordingly, at some future date the social insurance program would completely, or almost completely, eliminate the need for old-age assistance.l In 1939 the social insurance system