Evening star., 1934-09-09
POLITICAL FIGHT SHAPING
OVER OLD.ACE PENSION
Public Officials Divided Into Opposing
Schools of Thought as Legislative Plans
re Given Study of Administration.

european countries IMAM elSeWneIe.
Where there is differentiation be-
tween the sexes the age limit for
women is generally five years lower
than for men. Countries having VOL
untary pension systems observe the
lowest age limits. The highest are
under the straight pension systems.
Most of the arguments for and
against pension system will be based
on the experiences Of Great Britain,
France and Germany. Some 49,
100000 wage-earners in the last
named country are insured. They
comprise not only employees of in
dustrial plants, mines and the small
trade, but domestic servants and
homeworkers as we'll. Approximately
16,500,000 workers in Great Britain
are making weekly contributions for
pensions. More than 5000, 900 are in
sured in France.
In Germany employees contribute
varying amounts according to their
earnings, ranging from I to AZ cents
week. The employer contributes an
equal amount, except that below a
certain minimum he pays both his
and the employees share. In France
the contributions by the employe are
matched by the employer. with gov
ernment supplementing these sums.
Prior to 1925, the British system was
sustained wholly by the government.
Under the acts of that year and 1929
each male worker contributes IS cents
week and each woman worker II
cents a week, with the employers con-
tributing 18 cents for each man and
IA cents for each woman, while to
these sums the government makes an
annual grant of $19.466 900.
From the American point Of view
the pensions paid in each of these
countries are extremely small. For
example, each man and woman in
England, having reached the retire
ment age, receives S2.4 a week. The
basic pension in Germany is $40 a
year, to which is added 20 per cent Of
the contributions since January /.
1924, a lesser allowance for contribu-
tions prior to that date and the
amount of the State bonus. The PEN
sioner also receives an allowance for
medical care and medicine.
ScfCIoA OCHudH OlotCtuSs
As a matter of fact, Germany has
several pension systems. One applies
to salaried persons receiving not more
than $4,000 year. They make con-
tributions ranging from "a cents to
1857 a month, which the employers
match. Upon reaching the age of 65
years they receive basic pension of
STA year, with additional allot-
ments.
In France the pension is payable at
the age of 60, or after 80 years of con-
tributions. At the option of the in
sured it may be postponed until 1t
becomes IS. Workers in French mines,
for instance, upon retirement are paid
$196 a year, plus S2.35 for each year
of service above 30 The invalid PEN
sion is Sl4l year.
Small as these sums may seem to
us, they are not particularly low con-
sidering the wage scales In these
countries. In this country, with its
much higher standards of living, it
would cost billions to institute ma
tional pension system for our indus
trial workers.
There is another consideration that
must be emphasized. 1t is the ever
States. In 1885 the average span of
life here was only 40 years. The latest
comparative figure available Is for
1924, when the average life span had
increased to SO years. Another change
to be considered is the trend from
rural communities to urban centers.
The aged man or woman can make
some contributions to the family well
fare on a farm, but it is difficult, in
deed, for the elderly person to find
remunerative employment in the cities.
In this machine age the tendency is
toward the employment of younger
men and women. The number of
persons more than so years of age who
can maintain the pace in modern fac
tories has declined steadily. In fact,
the work span Of life has been abbre-
Waited at both ends-at the beginning
by the spread of education and the
decline of child labor and at the end
by the discrimination against older
workers. Moreover, machines are
continuously taking over work formerly
done by human hands.
What President Roosevelt has in
mind is a definitely prescribed old age
insurance for industrial workers,
rather than a dole, which would re-
dound mostly to the benefit of the
thriftless. 1t would be in the nature
Of savings from the years of employ
ment. But it inevitably will have
many ramifcations and will make a
drain upon all industry.
There will be terrific contest and
much discussion before final decision
is reached on this important question.
And that is well, for it is essential
that all the facts be assayed as accu-
rately as possible in advance Of any
action. We should know where we
are going before we take the plunge.