Evening star., 1931-06-26
'OLD-AGE PENSIONS
|. PLANS CONSIDERED
Two Types of Relief Pay
nlents Debated by Rival 7
Groups. ;
BY aoLLrN M. CLARK.

With more and more consideration
being given to the problem Of providing
for workers in their old age and in Pc
RODS Of unemployment, two distinct
lines Of thought are now crystallizing
with respect to the type of plan that
should be adopted
The issue resolves around the fa-
miliar controversy over Government
operation versus private enterprise and
initiative. Prominent representatives
Of both schools have just put forward
definite proposals.
COuzens' Plan.
One plan, sponsored by Senator
Couzens, is to have Congress enact leg
islation whereby unemployment insur-
ance and old age pensions would be
made available through cooperative
actlon on the part of the Federal and
state Governments. Under this scheme
the Federal Treasury would contribute
TO the States which have this type of
legislation, just as it does in the case
OF road construction and certain public
health activities.
The other proposal advocated by
Gerard Swope, president of the General
Electric Co., contemplates direct action
by employers and employees in adopting
voluntary systems providing life insur-
ance, retirement pensions and unem-
ployment reserve funds for workers.
Under this system employers and en-
ployeS would finance and administer
the three-way plan jointly.
No State has enacted an unemplov-
ment insurance law, but II now have
old age assistance legislation. Dela-
ware, Idaho, New Hampshire. New Jer-
Sey and West Virginia enacted such
laws this year. The New York law.
passed in 1880, is now in full force.
TEE Massachusetts act, also adopted last
year, becomes effective July l. To
finance its operation Gov. Ely has just
signed statute imposing a small head
tax on all male citizens of the State.
At the end Of 1880 only 10000 per-
sons were receiving aid under old age
pension laws, but this was due, in large
measure, to the fact that the early laws
were optional with each county rather
than mandatory. Some of these laws
have been changed to the compulsory
plan and most of the newer statutes
are OF this type. This means that the
number of pensioners will increase
rapidly. In New York State it is pre-
dicted that $4,000 persons will be re-
ceiving assistance by the end of this
year.
Might Prove Incentive.
Federal aid probably would prove
direct incentive to other States to pass
pension laws and might impel some
to take the initiative with unemploy-
ment insurance. Hence many indus
trial leaders who oppose State opera
ton see an advantage in taking vol
untary action at once, so as to spike
the disfavored legislation at its incep-
ton.
1t is not generally known that ap-
proximately 1000 900 workers are now
under some form of private industrial
pension plan. That is, they are eligible
for pensions, If they stay with the same
firm for a certain period of years. upon
reaching the age of IS or 70. Objec-
ton has been made to these rigid re-
quirementS because the actual per-
centage of employees who stay with one
employer through their working years
is small To overcome this it has been
proposed that each employer for whom
a prospective pensioner may have
worked during his lifetime contribute
a pro rate share toward the pension
While difficulties would arise in work.
ing this out, the problem is is by no
means an inSurmountable one.
(Copyright, 1917