Evening star. [volume] (Washington, D.C.) 1854-1972, 1911-02-15
INSURANCE BY.STATE
Proposed Extension Of the
German System.
MANY EXCLUDED TAKEN IN
Pensions Will Be Given to Those Not
Chased as Workmen Under
the Laws.
ei:n Correspondence OF The Star.

Foreign Correspondence OF The Star.
BERLIN, February 2, 1911.
The draft Of an important new law ex-
tending the benefits Of state insurance to
a large class hitherto excluded has been
published This is the class roughly de-
scribed as private officials" or en-
ployes and clerks who are not workmen
within the meaning of the existing old
age pension laws.
TIE extension is being made to meet
the wishes Of the representatives OF TINS
class. In addition the scheme PROVIDES
for the state insurance of actors, actress
IS, musicians of both sexes employed IN
orchestras and teachers and governesses
outside the state service. Persons earn
ing more than $3.50 year are excluded
Insurance is compulsory. Persons VINO
through change Of occupation cease TO De
liable to insure or who have taken en-
sagements outside Germany may Voiuh-
tarily continue insurance once begun
The insured are divided into nine class
es, according to their annual earnings
which are arranged in stages from unuea
$3.50 year to $3.50. The insurance
premium, half of which is paid by the
employee and half by employer. varies
accordingly. 1t begins in the case OF earn
inSs of under x112.5O at 80 cents month
and rises by stages to S6.64 In the Nigh
est class earning s1,OOO-$1 .25ol. An IN,
sured person whose earnings rise or ian
is transferred into the corresponding
class and the premium is varied accord
ingly.
What Insurance Covers.
The insurance covers old-age ana III
validity pensions and also pensions LOT
widows and children. Old-age pensions
are received at the age of sdxty-five and
invalidty pensions on proof OF pnsslcai
or mental incapacity to work. An en-
ploye can claim to be permanently 1nva-
lided when his earning power mas tai!en
off by half. Under contain conditions per
sons temporarily incapacitated receive tne
benefit of insurance. In the last TWO
cases the state insurance office can sub
ject the claimant to medical treatment.
with the object of restoring his working
power.
payable Immediately after the death OF
the insured wage-earner. The pensions
for children last until the age Of eighteen
is reached In the case OF insured women
illegitimate children also receive the pen
sion. Men must have paid their premiums
for ten years and women for nye years
before drawing old-age or invalidity pen
sions. To qualify for children's pensions
the term is ten years, irrespective OF the
insuring parents seq
The amount Of the old-age or invaiidity
pensions is fixed at a quarter or the
total of the premiums paid during the
first ten years. plus an eighth OF the
total value of the later premiums.
widows pension is fixed at twO-ffths OF
the old-age pension drawn by her hus-
band at the time Of his death, or of the
pension which he would have drawn had
he ben permanently invaded. Chill
dren receive a fifth of the widow pension,
or, where orphans, third
How the System Will Work.
How this system will work out in prac-
tice is shown by a typical case given
in the newspapers An employe earning
$500 a year would pay in annual pre-
miums about $1O.23 year. His EN-
ployer would pay the same amount. In
case of incapacity to work at the close
of the first ten years the employe would
draw a pension of SOL. Surprising him.
however, to pay premiums for second
ten years in the earning class, S315-$JOo.
he and his employer would each pay
about S144J a year toward the pensions
fund. and if incapacitated at the
close of the second decade his PEN
sion would be SS7. In the third decade,
with wages of $62o. he and his chief
would pay each 1870 a year in pre-
miums, after which his pension would be
$500. If he were to die after thirty
years of such premium paving his widow
would get pension for life OF $54.5O and
each child under eighteen pension of