The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1934-10-05

form Of cash pension, usually linz
tied to not more than Sl.00 per day.
which enables them to live their own
lives In their own way In their own
homes. Pension funds are obtained
by taxation, and are borne by the
county, the state, or the county and
the state together. If the pension
form Of economic security for the
aged is to be sponsored by the Federal
government the task will be merely
one Of allocating the expense Of re-
lief between the United States, the
state and the local unit.
Insurance More Complex
II, however, the administration
favors old age insurance innumer-
able complex problems are at once
presented. All of the usual statistical
data employed by regular insurance
companies must be assembled to de-
termine the risks involved, and the
premiums necessary to build up a re-
yerve fund from which old age benefits
q given or varying amounts shall be
paid. When a life insurance COM
pany sells an annuity policy to an in
dividual private contract Is made
In which the size Of the premium and
thereby the amount Of benefits can be
adjusted to the individuals needs
and purse.
The situation is quite different
where state system Of old age irsur-
ance Is involved, because of its COM
pulsory nature and broad application
to entire groups Of the population. The
usual practice In state systems as
found In Europe is to insure specific
classes Of wage earners covered by the
law, or those earning less than a stip-
ulated income. Premiums may be
paid by the wage Garner alone, by the
wage Garner and his employer jointly,
by the employer alone, by joint con-
tributions of employee, employer and
the government, or lastly, by the gov
eminent alone. Various methods are
used to determine the premium to
be paid by workers. Thus in Great
Britain flat sum is paid by all in
sured persons; definite percentage
Of the basic wage for the income
group to which the insured belongs is
required in Germany and Austria,
while Swedens commendable system
requires all men and women above
Is to pay special tax on income, the
proceeds Of which are kept in a spe-
cial fund to be used only for old age
and disability payments. Under most
OF the existing European systems des-
titution is not a primary qualification
for benefits, which begin automatic
ally at the age Of IS or 70.
Issues to BE Decided
With this brief sketch Of European
systems in mind, let us note the chief
problems facing the presidents COM
mittee on economic security. should an
old age insurance system be favored.
These problems involve coyeraee,
premiums. eligibility for benefits and
amount Of benefits.
Coverage raises many serious con-
siderations and alternatives, which
must be carefully studied by the pres.-
dents committee. For example. should
the law cover all persons above school
age regardless of social or economic
status? # not, should the law apply
TO all persons earning less than q
specified income. say $4,000 per year;
or should it be limited to employee.
earning less than the above sum. o,
would It be better to confine the Law
to certain classes Of employees or t,
specified industries only?
Financing old age insurance raise.
equally knotty problems. Should tn.
government finance the entire cos
through general taxation, or Shout,
this burden rest upon the employer
entirely. or upon the beneficiarie
themselves? If not, is a system Q
joint contributions Of employers an,
employees, Of employers and EN-
ployees and government, Of employ
ers and government or OF employee
and government to be preferred? Fac
possibility will have some bearin
upon profits, wages and salaries, an
taxes. which must be taken into con
liberation.
What Of the Farmer?
Moreover, II self-employed persons
such are farmers, arc included, Shout,
they bear the entire premium, o
should the government grant them tn
same subsidy as might be given to in
dustrial employees? Next. there is tn
question Is to whether premium
should be ct flat rate for all PEI
sons covered thus giving uniforr
benefits, or based on a percentage Z
wages. salary or total income, thu
Swing higher rates Of benefits to tn
: 1nrger contributors. Further. II I'll
government subsidies premium
should II grant fixed amount pc
person. o. give definite proportio
- the premium where premiums var
With income, which. Of course, woul
- Swing more to higher paid worker
than 70 loRer paid workers? An
oGoin MI tbs committee Advise