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Social Security may be defined through several characteristics: (1) participation is mandatory. Everyone, including children age 5 or older, is required to have a Social Security; (2) Eligibility for benefits and levels of benefits depends on past contributions made by earners; (3) Benefit payments begin at a stipulated time such as at retirement from work, upon temporary unemployment, or with disability; (4) Social-insurance benefits are means-tested - one's wealth or lack does not determine whether benefits are granted; and (5) Currently SS funds are collected and distributed on a pay - as - you -go (PAYG) system in which Social Security taxes from individuals are immediately distributed by the means of the SS Administration as it sees best fit...
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