Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1908-11-27
OLD AGE PENSION
LAW WORKS WELL
GERMAN GOVERNMENT IS Salts
FLED WITH COMPULSORY
INSURANCE.
INVALIDlTY FUND is POPULAR.
In 1907 There Were Over 100000 Peo-
pie Insured Under Nations
Protection.
PROVIDE SANITARY LODGINGS

Probably few of us have noted how
spreading about the world. In Germany
the plan in its practical operation might
be called a form of compulsory insur-
ance under government direction and
with government help.
Thus every person working for wages
or salary not exceeding $500 year
must take out an old age or inirmity in
surance policy on which he pays one
half OF the annual premium while his
employer pays the other half. From the
fund thus obtained pensions are paid to
persons whom sickness or infirmity have
incapacitated for work as we'll as to
those attaining the age of 70 years. To
each recipient of an invalid or old age
pension the government makes an addi-
tlonal grant of its own. The amount
OF the pension is determined upon the
double basis of the wages received by
the pensioner while he was at work and
the amount he has paid in premiums.
How Germany Works It.
In 1907 there were insured in Ger
many in the government old age and in
validity assurances more than 14,O00,-
600 persOns-frOm which astounding fact
you can gather something of the proper
tons of he new idea, says Mr.. Russell
in notable article in Hampton's Broad
way.
In practice the invalidity pension has
proved more popular than the strictly old
age pension, for the reason that the in
trinity pension can be entered upon when
the invalidity occurs and after the age of
40 1t takes the place of an old age pen
sion: Thus while in 1907 there were
11O,967 persons receiving the straight old
age pension, there were more than $780,
600 who were in receipt of the infrmity
pension. The total national expenditure
in 1907 on the insurance account was
$50, 100000, of which about $4,2OO,O0O
was for old age pensions.
The average pension paid was:
For pertinent invalidity 49,. 1904 =
For provisional invalidity. 4O.15 4"
OF course these sums seem very small
ID us, but we must remember, first, that
the difference between our country and
Germany in respect to the relative cost
of living is fact always to be reckOned
with in making comparisons, and second,
that Germany was the pioneer In these
reforms and her cautious first steps have
been far exceeded by the nations that
have followed her.
There are tive classes OF contributors to
the German fund:
lon annual wages or salaries of $3.50
the annual premium is 81 cents week;
2-On annual wages or salaries of $500
the annual premium is cents a week: 3
On the annual wages or salaries of ST., 50
the annual premium is 6 cents week. 4
On annual wages or salaries of $2S7.0 the
annual premium is 71a cents a week; 5-On
annual wages or salaries of $500 the an
i,ual premium is 8 cents
Certain Restrictions.
Benefactions under the act are some
what restricted. Thus old age pensions
are paid to only those who have con-
tributed for at least 1900 weeks and the
disablement pension to those who have
contributed for at least 500 weeks. 1t
was thought that a wholly unrestricted
pension scheme was too fearsome an ex,
pertinent, the whole thing being at best
so bold a leap in the dark and in def
ance of sacred traditions.
This is the scale of German pensions
according to classes: