Imperial Valley press., 1935-01-17
Continued from page u

tllIS. Inc committee recommend
ed waiting period of four weeks
between loss of q job and first pay
ment of compensation benefits.
The federal government would
receive and invest all social insur-
ance funds. A social insurance
board would be created within the
labor department to administer the
federal unemployment compensa-
tion act and part of the old age Sc
curity system.
To supplement the latter, the
committee proposed that the gov
ernment sell to persons with an
nual incomes of $4,000 or less de-
terred life annuities on cost basis.
These would guarantee the pur-
chaser a definite life time income,
probably beginning at the age of
65 years.
The unemployment compensation
plan recommended that after the
> worker exhausted his cash bene-
fits, he be certified to the authori-
ties in charge of the federal work
program as entitled to work bene-
fits.
The entire unemployment COM
penSation structure is founded on
an employment assurance. pro-
gram to coordinate resources of all
public bodies in program of prac-
tical advance planning. The COM
mittee recommended establishment
OF a permanent national planning
board. The objective would be
stimulation of private employment
and provision of public employment
for all able-bodied workers whom
industry cannot employ at any
given time.
Plan For Pensions
The old age security program is
in three sections:
l. Nom n-contributory old age pen
sions, maximum $50 month.
2. Compulsory contributory an
nuities to be sold by the govern
ment, maximum $50 month.
All would be applicable on re-
tirement of the worker at the age
of IS or more years. Non-contrib-
utory pensions would meet the prob
lem of those now old and without
means of support. The committee
said many states could not assume
the financial burden of pensions
without assistance and, therefore,
recommended that the federal gov
ernment pay one-half the cost of
these pensions but not more than
3$l5 month for any individual.
States would be permitted to eS-
tabliSh property and income limita-
tions upon the pensions system but:
"No aged person otherwise eligi-
b. BILE may be denied a pension whose
property does not exceed $4,000 in
value or whose income is not larg-
er than is necessary for reason
able subsistence compatible with
decency and health"
States may maintain an age limit
of 10 years to January l, 1910,
thereafter reducing it to 65 years.
Federal benefits shall constitute a
!, lien on the estate of the aged re-
cipient and upon his death the
state shall enforce the lien and
make the refund to the federal
treasury. The committee said its
objective was: +.
"To give to all dependent aged
persons not in need of institutional
care decent subsistence in their
own homes.'
The committee reported that ac-
tuarial calculations placed the pen
SION cost so high for the year 1880
that the problem must be re-exam-
ined in search of means to reduce
estimated government contributions
in that year. Sound financing, it
was explained, requires simultaneous
establishment of a compulsory an
nuity system to reduce the cost of
the foregoing pension system.
Compulsory contributory annui-
ties.
The committee recommended a
compulsory assessment of one per
cent against payrolls to be divided
equally between employers and en-
ployees. The rate would be increased
by one per cent every five years un-
til it reached maximum of five
per cent at the end of 20 years. The
system would include all manual
and non-manual workers earning
less than $3.50 month except en-
ployees of governmental units and
persons covered by the United States
Railroad Retirement act.
Receipts are expected to exceed
expenditures to an extent that will
make government contributions un-
! necessary during the first 80 years
the plan is in operation. In launch
ing the plan the committee said it
would be necessary to pay reason
ably adequate annuitieS" on retire.
ment to persons now middle aged OF
older who cannot in the few re-
naming years of their industrial life
accumulate substantial reserve.
The tax assessment against en-
ployees and employers would be de-
Quoted through the latter and they
would be entitled to deduct the en-
pioyees' share from wages due. Ac-
tuarial estimates placed the reserve
figure when federal contributions
would begin at sis, ,250,000.
Benefits would not be paid until
the system had been receiving con-
tributions for five years. They would
Y