New Britain herald., 1930-02-24
PENSION SYSTEMS

for a nationwide system Of old age pensions when it reported in favor of the establishment Of old age pen sons in the Empire State. This ques- ton may not be fought out to q successful conclusion in Albany this year, but there can be little doubt O. the ultimate result. Much will hinge upon the estimated cost, it be- ing the policy Of prudent legislatures not 10 let their states in for too high an out go in the adoption Of new principle of governmental func- tioning. II so happens, however, that the maintenance Of the aged already is costing the state governments d plenitude Of money. It was in 1925 that the Federal Department Of Labor conducted an investigation into almshouses throughout the country, this probe including go per cent of their total number. It was found that the total cost of main- tenance was s2G,0O0.00O a year, Of which 70 per cent went to admins traitor expense and operation Of the plants. In New York State the an- nual maintenance cost per inmate O. almshouses was found 10 be s299 Furthermore, in 1923 the federal census bureau found that two thirds Of the 7&,0Q0 paupers in alms- houses were more than so years Of age. The 1920 federal census show ed that about 5,0O0,OO0 persons, making up A. per cent Of the popu- lation, were 65 years Of age or over.
 The problem is one that touches the public conscience. Particularly is this true in view of the fact that the United States is the only import ant nation without a nationwide system of old age pensions, The Ger man system dates from 1890, the ! British from 1908, and the French from 1910. Old age pension laws are 1 in effect in most of the provinces oG . Canada.
 Either the other important na- tons are wrong and the United States has no old age problem; or the others are right and the United States has Jagged in properly tacking the problem. The census figures and the almshouse statistics indicate that we are not so pros- porous as to lack this problem. It's existence demands solution. True, there is a certain amount Of private old age pensioning in the United States in the form of pen sons from employers; benefits from labor. fraternal and beneficial bodies; allowances from social service agencies; annuities and endowment insurance; state and municipal pen sIons for super -annuated employees; and the federal military, naval and civil retirement allowances. The fed cral civil service retirement system, which dates from 1920, is con- tributory. Similar systems are in vogue in pensions for teachers and ! other professional classes. On the vholg. pension systems in the United states are poorly developed and are onc-sidcd in that they affect only the more favored sections O. the community.
 In most foreign systems the system is contributory, with the employe, the government and often the em~ ployer paying 2 regular contribu- ton toward the old-asc pension fund.
 The New York legislative commit tee which has recommended old age tensions for the state would have them begin at the age ot 70, with maximum Of s5O a month. In states where pension laws are in ef- fect-California, Montana, Utah, Wisconsin and the territory ol Alas ks-the age limits range from 60 to 70 and the amounts available from $91 10 so a month,
 It ought to he remembered that the cost per person in aimShouses in New York is s999 a year, or nearly S25 a month, This sum is annroximatcIy the same as the amounts available per pensioncr III such states having pension laws.
 Six states have passed legislation making old age pensions available
 when their legislatures or counue, appropriatc the necessary funds; Nevada. Colorado, Minnesota, Ken
 lucky, Maryland and Wyoming, II
 Arizona and Pennsylvania old az
 pcnsion laws have been declared un'
 constitutional. Other states like Nc"
 York. haze had official commissions
 investigating the question.