Which of the following statements is true about the Social Security program?
A)It is administered by the Social Security Administration, an agency of the United States Department of Labor.
B)It is primarily a traditional system, where funds are set aside in advance to accumulate over time and benefits are paid to those who contributed to the fund.
C)Survivors' benefit determination-the decision whether an applicant is entitled to survivor' benefit as determined by law-is made by the state agency.
D)Qualification for retirement and survivors' benefits is determined by the district office, but claims for such benefits are processed through private insurer intermediaries.
E)The Social Security is a pay-as-you-go-system, meaning that current tax revenues are used to pay the current benefits of Social Security recipients.

Question

Quizplus · Accepted Answer

The Social Security program operates on a pay-as-you-go basis, where the taxes paid by current workers and their employers are used to fund the benefits of current retirees, as opposed to a system where funds are saved or invested for an individual's own future retirement benefits.

Which of the Following Statements Is True About the Social