April+14+ACCT

Activity 2: **OPERATIONS** In this activity you will report on how the Social Security program works; how contributions are made, where they are "stored," and how benefits are disbursed. Students are encouraged to develop visual aids to assist in their presentation. Have students review the Social Security Basics to prepare their presentation. Additional information can be found at [|here] and here.

1. Describe how the Social Security works? (Explain how contributions are made, how the "pay-as-you-go system" works and how recipients receive their benefits.) 2. Explain why the Social Security system was created? 3. Explain the significance of the numbers on the Social Security card. 4. Describe the different types of benefits available to individuals. 5. Explain how the Medicare program fits into the picture (Explain how it relates to FICA and how contributions to Social Security taxes are divided up between Social Security and Medicare.) 6. Develop a chart or other visual device that explains how the Social Security Trust funds work. (Explain what they are, how they are created, and when they are predicted to be unable to meet their obligations.)