Q: It is my understanding the employees and employers contribute to Social Security through payroll. From what I read, federal government does not contribute. So how can Social Security be an entitlement?
—Barry Munz, Marietta
A: An entitlement is a government program that by law provides personal financial benefits to beneficiaries, as long as they meet any eligibility conditions established in the program's authorization, according to a political glossary published by Paul M. Johnson, an Auburn University political science associate professor emeritus.
Johnson specifically listed Social Security as among the most important examples of entitlement programs at the federal level, along with Medicare, Medicaid, most Veterans’ Administration programs, federal employee and military retirement plans, unemployment benefits, food stamps and agricultural price supports.
Under the Social Security Act, individuals who meet certain age and contribution qualifications are entitled to a benefit. Those benefits are funded through a federal payroll tax, known as the Federal Insurance Contributions Act, which is generally deducted from employees’ paychecks and matched by employers.
“The money you pay in taxes is not held in a personal account for you to use when you get benefits,” the Social Security Administration website states. “Today’s workers help pay for current retirees’ and other beneficiaries’ benefits. Any unused money goes to the Social Security trust funds to help secure today and tomorrow for you and your family.”
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