Social Security Check No. 00-000-001 Was Issued 75 Years Ago Today

The first monthly Social Security check—issued Jan. 31, 1940—went to Ida May Fuller of Ludlow, VT, in the amount of $22.54.

(Ernest Ackerman was the first person to ever get Social Security benefits—he got 17 cents in January 1937. This was a one-time, lump-sum pay-out—the only form of benefits paid during the start-up period January 1937 through December 1939.)

Fuller, a legal secretary, had worked for three years under the Social Security program—and the accumulated taxes on her salary of $150 a month amounted to $24.75. She retired in November 1939 and started collecting benefits in January 1940 at age 65. She lived to be 100, and over 35 years collected a total of $22,888.92 in Social Security benefits.

You can see a chart that details her covered wages and payroll tax contributions on the Social Security website.

Congresswoman Nita Lowey (Westchester/Rockland), the ranking member on the House Appropriations Committee, today joined a group of senior citizens in White Plains, NY to celebrate the 75th anniversary of Fuller’s first check.

“Seventy-five years after the first Social Security check was issued, the program continues to give seniors peace of mind in retirement,” said Lowey. “People who have worked hard their entire lives deserve our support, and efforts that jeopardize retirement benefits run contrary to the American spirit. I’ll stand up to veiled efforts to dismantle this successful program that helps more than 55 million Americans, including more than 125,000 residents in Westchester and Rockland.”

The Social Security Act was passed in 1935. It was challenged immediately in court, taxes were collected for the first time in 1937, and it was amended in 1939—when it transformed from a retirement system for workers only to a broader system both for old-age insurance and family economic security, according to federal historians.

In 1940, slightly more than 200,000 Americans received a Social Security benefit. In 2014, more than 59 million people received almost $863 billion.

Retired workers and their dependents now account for 3/4 of Social Security benefits. The rest goes to disabled workers and their dependents—16 percent, as of 2013—and dead workers’ survivors.

In fact, Social Security is the fallback for most American workers. An estimated 165 million workers are covered under Social Security. And that’s important because, according to federal data for 2013, the most recent available:

• 51 percent of the workforce has no private pension coverage.
• 34 percent of the workforce has no savings set aside specifically for retirement.

Social Security is the major source of income for most of the elderly.

• Nine out of ten individuals age 65 and older receive Social Security benefits.
• Among elderly Social Security beneficiaries, 52 percent of married couples and 74 percent of unmarried persons receive half or more of their income from Social Security.

What’s changed since that first check was issued to Ida May Fuller? In 1940, the life expectancy of a 65-year-old was almost 14 years; today it is about 20 years.

What’s going to change? By 2033, the number of older Americans will increase from 46.6 million today to more than 77 million. There are currently 2.8 workers for each Social Security beneficiary. By 2033, there will be 2.1 workers for each beneficiary.

With the 114th Congress underway, Lowey said that the House Republican leadership has already shown that it is intent on altering Social Security benefits. In past years she has opposed efforts to privatize Social Security, voted to shield Social Security from cuts in deficit reduction proposals, and opposed extra taxes on Social Security benefits.

Her district has its own tie to all this history—the first Social Security record belonged to John D. Sweeney, Jr., 23, of New Rochelle, NY.

PHOTO/Nita Lowey’s Office