CONGRESSIONAL
PANEL ON SOCIAL SECURITY ORGANIZATION
ORGANIZATIONAL
HISTORY OF SSA
COMMITTEE
ON ECONOMIC SECURITY (1934) -
This Committee was established by President
Roosevelt in June 1934 (Executive Order No. 6757) to develop a
comprehensive social insurance system covering all major personal
economic hazards with a special emphasis on unemployment and old
age insurance. The Committee's legislative recommendations
were presented to the President in January 1935, and introduced
to Congess for consideration shortly thereafter. A compromise
Social Security Bill was signed by the President on August 14,
1935.
SOCIAL
SECURITY BOARD (1935) -
A three-member Board was established to
administer the Social Security Act. It was responsible for old
age insurance, unemployment compensation and public assistance
titles of the Social Security Act. The Chairman of the Board reported
directly to the President until July 1939 when the Board was placed
organizationally under the newly established Federal Security
Agency. The original Social Security Board consisted of the three
member Board, an Executive Director, three Operating Bureaus,
five Service Bureaus and Offices and 12 Regional offices.
BIRTH
OF THE BUREAUS (1935) -
The Bureau of Federal Old-Age Benefits,
renamed the Bureau of Old-Age Insurance (BOAI) in 1937, was created
in December 1935 and was the forerunner of today's Social Security
Administration. The Bureau was responsible for Title II of the
Social Security Act and its functions included: the maintenance
of wage records; supervision of field offices; examination and
approval of claims, including related claims functions (for certification
of payments recovery of excess payments, and hearing and deciding
appealed cases); and the making of actuarial estimates.
FIRST
FIELD OFFICES (1936) -
It was apparent from the beginning that
the scope of the Title II program (old age benefits) would require
considerable decentralization. The first step in this direction
was the establishment of twelve regional offices attached to the
Social Security Board with Regional Representatives for each program.
The Bureau of Old Age Insurance concurrently began to establish
field offices in October 1936 for public contact and 100 were
in operation by February 1937.
PRESIDENT'S
REORGANIZATION PLAN NO. 1 (1939) -
This established the Federal Security Agency
(FSA), and the Social Security Board became a part of that agency.
The FSA also administered the programs of the U.S. Public Health
Service, Office of Education, National Youth Administration and
Civilian Conservation Corps. The U.S. Employment Service and the
Bureau of Unemployment Compensation were consolidated into the
Bureau of Employment Security under the Social Security Board.
The only administrative change was the transfer of the General
Counsel and personnel functions to a central function under the
FSA Administrator. The FSA Administrator permitted the Social
Security Board to continue its program in an independent manner.
The Bureau of Old Age Insurance was renamed "Bureau of Old-Age
and Survivors Insurance" (BOASI) when the President signed
the Amendments to Title II of the Social Security Act on August
10, 1939, which provided benefits for dependents and survivors
of insured workers, and made other major changes. In 1940, a Control
Division was added to handle the increased claims load resulting
from the 1939 amendments. Finally, a Training Section was established
in the Director's Office to take over the complete training program,
a part of which had previously been handled by the Social Security
Board.
ESTABLISHMENT
OF AREA OFFICES (PAYMENT CENTERS) (1942) -
Because of the war-time scarcity of space
in Washington and a marked increase in the benefit rolls, the
central offices of the Bureau of Old Age and Survivors' Insurance
were moved to Baltimore in 1942. At the same time Area Offices
were opened in Philadelphia, New York, Chicago, San Francisco,
and New Orleans for the certification and recertification of claims.
The Control Division was replaced by the Claims Control Division
and the old Claims Division by the Claims Policy Division. The
adjudication of claims was shifted to the field offices, leaving
the responsibility for claims review in the Claims Control Division
and its area offices.
ESTABLISHMENT
OF SOCIAL SECURITY ADMINISTRATION (1946) -
The President's reorganization Plan No.
2, effective in July 1946, abolished the Social Security Board
and placed its functions under the newly established Social Security
Administration (still under FSA). The FSA Administrator established
the position of Commissioner to head the Social Security Administration
(SSA). Several administrative functions (i.e., personnel, procurement,
information services, etc.) from the Social Security Board were
incorporated into SSA at this time.
CHANGES
IN REGIONAL OFFICES (1948) -
In August 1948, following the transfer
of the Regional Offices from the Social Security Administration
to the Federal Security Administration, new SSA regions were established.
Also, in 1948, a Division of Management Planning and Services
was created within the Bureau of Old Age and Survivors Insurance
to address problems created as a result of tremendous growth in
the size of the Bureau.
DEPARTMENT
OF HEALTH, EDUCATION AND WELFARE ESTABLISHED (1953)
The Federal Security Agency was abolished
and its functions transferred to the new Department of Health,
Education and Welfare (HEW). The Bureau of Federal Credit Unions
was transferred to the Social Security Administration and the
Commissioner's position was designated as a presidential appointee
requiring Senate confirmation.
ESTABLISHMENT
OF DIVISION OF DISABILITY OPERATIONS (1954) -
A modified (disability) freeze program,
the precursor of the present disability program, was enacted as
a part of the 1954 amendments. The Division of Disability Operations
was founded to provide unified program, policy, procedural and
operational leadership for this new program.
DIVISION
OF SOCIAL SECURITY IN TWO PARTS (1963) -
On January 28, 1963, a reorganization in
HEW retained the old-age, survivors and disability program functions
in the Social Security Administration and established a new Welfare
Administration to administer five Federal-State programs (the
Children's Bureau, Bureau of Family Services, the Special Staff
on Aging, and the Juvenile Delinquency and Youth Development Staff).
The Bureau of Hearings and Appeals, the Office of the Actuary,
and the Division of Program Research continued as units of SSA.
The Bureau of Federal Credit Unions was still affiliated with
SSA but only for administrative support. This split effectively
made the old BOASI and other legislated social insurance programs
into the modern day Social Security Administration.
PROGRAM
BUREAUS ESTABLISHED (1965) -
The 1965 Amendments not only increased
the scope and complexity of OASI and DI programs, but established
the Health Insurance Program (Title XVIII) which became known
as Medicare. A reorganization was effected which established four
program Bureaus (Retirement and Survivors Insurance, Disability
Insurance, Health Insurance, and Federal Credit Unions). A centralized
record keeping operation, the Bureau of Data Processing and Accounts,
was established to service all programs as well as a single field
organization. Five functional staff units with agency-wide responsibility
for program evaluation and planning, actuarial functions, public
affairs, management and research functions were also established.
Also at this time, the regional presence was enhanced by the establishment
of the ten Regional Commissioners who served as the Commissioner's
representatives and were responsible for evaluating and coordinating
the agency operations. It is notable that the Regional Commissioners
were not delegated "line authority," so they might retain
their objectivity and detachment.
BUREAU
OF SUPPLEMENTAL SECURITY INCOME (SSI) ESTABLISHED (1973)
The 1972 Amendments created the Supplementary
Security Income (SSI) program and a new bureau was established
in 1973. There remained only four program bureaus, however, for
the Bureau of Federal Credit Unions left the agency in March 1970.
1975
REORGANIZATION OF SSA -
The Commissioner of Social Security announced
a reorganization of the Agency in January 1975. The new organization
significantly reduced the span of control of the Commissioner
by consolidating eleven functions into only five functions and
by placing the Regional Commissioners under an Associate Commissioner
for Program Operations. The Regional Commissioners did receive
line authority (through the Associate Commissioner for Program
Operations) at this time for all cash benefit operations. Significant
changes included: (1) the establishment of four Associate Commissioners
for Operations, Program Policy and Planning, External Affairs
and Management and Administration; (2) creation of a new policy
and regulation making organization; (3) creation of a Commissioner-level
organization dedicated to the long range improvement of SSA's
automated systems; and (4) the creation of a centralized program
evaluation and quality assurance program.
HEW
REORGANIZATION (1977) -
This reorganization established the Health
Care Financing Administration (HCFA) and abolished the Social
and Rehabilitation Service (SRS). HCFA received Medicare (Bureau
of Health Insurance) from SSA which had implemented and run the
program since 1965. SSA received the responsibility for the Aid
to Families with Dependent Children (AFDC) and the Commissioner
of SSA became the ex-officio Director of the HEW Office of Child
Support Enforcement (OCSE). Some policy functions also transferred
to HCFA but other functions (i.e., computer support and field
office services) continued to be performed by SSA. SSA also received
cash assistance functions from SRS which encompassed Cuban and
Indochinese refugee programs and the U.S. Repatriate Programs.
FUNCTIONAL
REORGANIZATION OF SSA (1979) -
A newly appointed Commissioner of Social
Security announced a reorganization along functional lines. The
intended results were to: (1) improve the communications, policy
development and decision making processes; (2) eliminate duplication;
(3) elevate the field organization back into the main stream of
headquarters activities, and (4) consolidate systems functions.
Two deputies were created, one for operations and the other for
program policy issues. An Executive Secretariat was created to
enhance communications and ten Associate Commissioners along functional
lines "to provide program direction and leadership."
This reorganization was followed by a reorganization
for the field structure under the Regional Commissioners. Unlike
the 1975 Reorganization which was never fully implemented, it
was completed in less than a year.
ORGANIZATIONAL
REALIGNMENTS OF SSA (1980-1983) -
Fine tuning by succeeding Commissioners
who found the span of control too broad under the 1979 reorganization
was implemented over the next four years. Efforts to modify the
organization to make it more responsive to changing mission
requirements resulted in the following changes: (1) the consolidation
of the public information and governmental affairs functions;
(2) the abolishment of the Associate Commissioner for Operating
Policy and Procedures; (3) the establishment of four Deputy Commissioners
including one for systems and another for management and assessment;
and (4) the creation of six new Associate Commissioners, including
two for systems requirements and integration functions; three
for the RSI, SSI and DI programs and one for the field. |