THE HISTORY OF SOCIAL SECURITY AND THEIR METHOD OF ANALYZING CLAIMS 

The Origins of Social Security and How the SSA Administers Disability Claims

Social Security plays a central role in providing retirement, survivor, and disability benefits to millions of Americans—but many people don’t understand how Social Security disability claims are analyzed or why claims are often denied. The Social Security Administration (SSA) is an administrative agency within the Executive Branch of the federal government, and it follows a detailed legal framework created by Congress to evaluate benefit claims. Understanding the history of Social Security and the rules the agency uses to analyze disability claims can help claimants better navigate the system and protect their rights.

On August 14, 1935, President Franklin D. Roosevelt signed the Social Security Act into law. This landmark legislation created a federally administered system of social insurance for older Americans, funded through payroll taxes paid by workers and their employers. The Act also established the Social Security Board, which later evolved into the Social Security Administration (SSA).

In August 1956, Congress expanded the program to include benefits for individuals with disabilities, laying the foundation for today’s Social Security Disability system.

How Social Security Is Governed

Social Security operates under laws passed by Congress, which has the authority to create federal programs and delegate responsibilities to administrative agencies.

• Congressional laws are codified in the United States Code.
• Federal agencies, including SSA, then create rules and regulations to implement those laws.
• These regulations are published in the Federal Register and compiled in the Code of Federal Regulations (CFR).

Although these regulations are not statutes passed by Congress, they carry the force of law and can include penalties for noncompliance.

The Regulations That Control Disability Claims

The rules governing Social Security benefits appear primarily in Title 42 of the Code of Federal Regulations. These regulations explain:

• Eligibility standards for retirement benefits
• Rules for survivor benefits
• The legal framework used to evaluate disability claims

This regulatory structure is what allows SSA to apply the law consistently across millions of claims each year.

Types of Disability Benefits: SSDI and SSI

The regulations define two distinct disability programs:

Social Security Disability Insurance (SSDI – Title II)

SSDI is based on a worker’s earnings record and payment of FICA taxes. Key features include:

• Benefit amounts depend on prior earnings and family size
• Not all income is subject to FICA taxes
• In 2025, FICA taxes apply only to the first $168,000 of earned income
• Generally, a person must have worked and paid FICA taxes for 5 of the last 10 years before becoming disabled
• The earnings requirement is relatively modest (currently just under $7,000 per year, adjusted annually for inflation)

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Supplemental Security Income (SSI – Title XVI)

SSI is a needs-based entitlement program for individuals who do not qualify for SSDI and have limited income and resources.

• Asset limits are similar to programs like Medicaid or SNAP
• Generally, countable assets must be under:
  • $2,000 for an individual
  • $3,000 for a couple

SSI is not based on work history, but strict financial rules apply.

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How Social Security Defines Disability

Once SSA determines that a person is insured for SSDI or financially eligible for SSI, the agency evaluates medical eligibility.

Under federal regulations, disability is defined as:

The inability to engage in any substantial gainful activity (SGA) due to a medically determinable physical or mental impairment that has lasted, or is expected to last, at least 12 continuous months or result in death.

The Five-Step Disability Evaluation Process

Social Security uses a five-step sequential evaluation process to analyze every disability claim:

1. Are you working above the SGA level?
   (In 2024, SGA is $1,550 per month for non-blind individuals.)
2. Do you have a severe impairment?
3. Does your condition meet or equal a listed impairment?
4. Can you perform your past relevant work?
5. Is there other work in the national economy you could perform?

If the answer at any step results in a finding of “not disabled,” the claim is denied.

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Who Makes Social Security Disability Decisions?

While Social Security oversees the program, initial disability determinations are made by state agencies acting on SSA’s behalf.

These agencies:

• Collect medical records
• Evaluate functional limitations
• Determine whether a claimant can sustain work activity

If SSA determines that no work can be sustained, benefits are awarded. If SSA finds that some work exists in the national economy, the claim is denied.

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Appeals and Administrative Law Judges

A denied claim can be appealed:

1. Reconsideration by the agency
2. Hearing before an Administrative Law Judge (ALJ)

An ALJ hearing is non-adversarial:

• There is no opposing attorney representing Social Security
• The judge’s role is to gather facts and apply the law objectively

If a claim is denied by an ALJ, a claimant may seek further review by filing a case in U.S. District Court.

Why Legal Representation for Your Social Security Claim Matters

The Social Security disability system is complex, highly regulated, and evidence-driven. An experienced disability attorney can:

• Identify weaknesses in the agency’s analysis
• Ensure medical evidence is properly developed
• Present your case clearly at a hearing

Having knowledgeable guidance can make a meaningful difference at every stage of the process.

Recommended External References (Authoritative Sources)

These sources provide excellent historical and legal context and are well-suited for outbound links:

• SSA Historical Overview:
  https://www.ssa.gov/history/briefhistory3.html
• SSA: Milestones in Social Security History:
  https://www.ssa.gov/history/50mm2.html
• AARP Social Security History Timeline:
  https://www.aarp.org/social-security/history-timeline/
• Peer-Reviewed Analysis (PubMed):
  https://pubmed.ncbi.nlm.nih.gov/16295313/
• History of Social Security (Wikipedia – general reference):
  https://en.wikipedia.org/wiki/History_of_Social_Security_in_the_United_States