Imperial Valley press., 1935-01-17
BILLSPROVIDING SOCIAL SECURITY
LEGISLATION GIVEN TO CONGRESS

! will take care of penniless persons
who become 65 within the next year
and who have not lad time to quali-
fy under the provisions for more
permanent system. An appropria-
ton of Sl25 100000 would be auth
orized for each succeeding year. this
being with the idea CO spanning the
gap until the payroll tax has am
assed a sufficient pension fund.
The old-age fund. to be handled
in the treasury department, would
be supplied by tax on all payrolls.
beginning at l per cent as of Janu-
airy l. 1897, two per cent as of Janu-
airy /, 1912, three per cent as of jan
uary /. l947, four per cent as of
January l. 1852 and five per cent as
of January /, 1857 and each year
thereafter.
Employees would contribute half
of that tax; employers the other
half.
Employees receiving more than
$3.50 per month and who do non
manual work would not share in
this system.
Those receiving more than $3.50
per month. or any one else who
cares TO. may purchase annuities.
Money paid into the treasury under
the annuity plan would be returned
in whole or in monthly installmentS
after the owner of the annuity be-
comes 65.
The amount of pension paid to
workers reaching 65 would vary ac-
cording to the length of time they
and their employers have been con-
tributing to the old age fund.
Who Is Eligible
A worker is eligible for one of
these "contributory" pensions, that
is, one in which he himself has con-
tributed part of the fund, when he
becomes 65 and is no longer en-
ployed, and if his old age fund taxes
were paid for at least 200 weeks
while he was between the ages of
55 and co.
The first five-year period requir-
ed by the proposed law, while the
pensioner is between the ages of
55 and go, would be from 1887 to
1912, since the tax does not start
until 1897.
Suppose a worker were receiving
5000 per month during that time.
His pension, payable when he be-
comes IS, would be $50 per month.
or Is per cent, if the old-age fund
tax were paid for 200 of the 26O
weeks in the five year period
This is the most a worker now
56 years old could receive.
For younger workers. however, it
would be possible to gain larger
pension. The longer a
worker is employed under the tax
plan before he becomes 60, the
greater will be the pension he can
expect when he is IS. Young men
Of today could hope for as much as
800 per month.
The unemployment insurance tax, |
different from the old age pension |
AK. would begin January /. 1886, |
nearly year from now. Every per-
son who employs four or more work
ers would be subject to a tax of 3
per cent of his payroll. In an effort !
10 inaugurate the system without !
Undue hardship for employers dur
ng the depression, provision is
made TO keep the tax at l per cent I.
Until January /, 1888 if business
conditions do not improve.
OF the unemployment insurance
olan, Wagner said:
THE bill recognizes that. because
If divergent business problems in
iifferent sections of the country,
,ach state should be free to enact
is own unemployment insurance
aw. But no state should be at lib
rty to neglect this problem, or to
,ut a more progressive common
wealth to a competitive disadvan-
age"
A federal subsidy of S5,000,000 for
he next fiscal year and s50,000,000
Or each succeeding year is provided
D start the plan. Employers con-
to state Unemployment in
irance systems will be exempt
-om the federal tax