Social Security Is Widely Understood as a Distributive Form of Insurance

Social Security is widely understood as a distributive form of insurance, in which workers pay into the system and then receive the benefits when they retire. This perception is ________. Social Security ________.

A) false; is funded by a flat tax on the current workforce, which provides the funds for the payout to current retirees
B) true; funds are held in a trust over time and individuals receive benefits if they paid into the system while working
C) false; is funded primarily by the federal government
D) false; benefits are received only by those who paid into the system during their own careers
E) true; benefits are distributed to those who have paid into the system

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