Have you ever wanted to learn more about the history of Social Security benefits? There is no better person to go to for this information than an Orlando disability denial attorney.
Whether you are a recipient of Social Security Disability, currently pursuing benefits, or are just interested in educating yourself on this program, there is always something new to discover. Over the decades, our Orlando disability denial attorneys have been able to share a wide range of information related to Social Security.
Little-Known Social Security Facts From Our Orlando Disability Denial Attorney
Social Security Disability is Less Than 100 Years Old
Social Security Disability Insurance (SSDI) SSDI has a lengthy history, beginning in 1935 when the Social Security Act was
established under President Roosevelt. The image shown here is of President Franklin D. Roosevelt signing the Social Security Act.
Although initially intended as a retirement insurance program, the Social Security Act underwent various amendments to extend its scope. In 1950, the program was broadened to include “Old-age, Survivors and Disability Insurance,” offering enhanced benefits and new contribution schedules. Four years later, the 1954 amendment introduced the disability freeze to safeguard workers’ benefits during periods of disability.
The crucial shift arrived in 1956, when President Dwight D. Eisenhower ratified the amendments that officially established SSDI. This legislation extended benefits to disabled workers aged 50-65, children with disabilities incurred before age 18, and the child of a retired or deceased insured employee.
The Most Used Social Security Number
The record for the most misused Social Security Number (SSN) belongs to 078-05-1120. In an attempt to illustrate how a Social Security card could conveniently fit into its wallets, E. H. Ferree company, a wallet maker in Lockport, New York, decided to include a demonstration card in each product in 1938. Douglas Patterson, the company’s Vice President and Treasurer, opted to use the real SSN of his secretary, Hilda Schrader Whitcher, on this sample card.
These wallets, sold by Woolworth and other department stores nationwide, became unintentional facilitators of SSN misuse. Despite the demo card being red, half the size of a real one, and clearly marked with “specimen,” many wallet buyers began using this SSN as their own. At its peak in 1943, a staggering 5,755 individuals were found to be using Whitcher’s SSN.
The SSA eventually invalidated this SSN and issued a new one to Whitcher while announcing the misuse publicly. Nevertheless, usage of the number persisted for years. Over the course of time, more than 40,000 individuals reported this particular SSN as their own, with 12 people found still using the so-called “Woolworth” issued SSN as late as 1977.
The Social Security Administration Used to Make Single, Lump-Sum Payments
Between 1937 and 1940, Social Security benefits were delivered as one-time, lump-sum payments. These payments were intended as a sort of ‘reimbursement’ for individuals who contributed to the program, but weren’t expected to participate long enough to qualify for monthly benefits. According to the 1935 law, monthly benefits were scheduled to commence in 1942, and the interval from 1937 to 1942 served to accumulate funds for the Trust and establish a minimum participation period for monthly benefit eligibility.
The first known applicant for a lump-sum benefit was Ernest Ackerman, a retired tram operator from Cleveland, who retired a single day after the initiation of the Social Security program. For his single day of participation, a five-cent deduction was made from Mr. Ackerman’s wage for Social Security. Upon retirement, he was granted a lump-sum payment of 17 cents.
During this era, the average lump-sum payment amounted to $58.06. The smallest recorded payment was a mere five cents!
Culbertson, Jacobs & LaBoda: Your Orlando Disability Denial Attorneys
We hope you have enjoyed these pieces of Social Security history. If you are in need of assistance applying for Social Security Disability benefits or Supplemental Security Income, or are appealing a determination from the Social Security Administration, our Orlando disability attorneys are here to assist. Contact us today to schedule a consultation.