The Waterbury Democrat., 1935-01-17
Committee Present Plans For Security
Members Were Named By President to Prepare PrO-
 gram For Protection of All the People

the worker exhausted his cash ben- efits, he be certified to the author ities 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 a program of practical advance planning. The committee recommended establish ment of a permanent national plan ing board. The objective would be stimulation to provate employ ment and provision of public em4 ployment for all able- bodied work CTS whom industry cannot employ at any given time.
 The old age security program Is in three sections:
 l. Non-contributory old age pensions. maximum $30 a month.
 2. Compulsory contributor an- nuities, minimum $15 q month. "a. Voluntary old age annuities to be sold by the government. maximum $50 8 month.
 F All would be applicable on re- tirement of the worker at, the age of 65 or more years. Non-ccntri- butoc pensions would meet the problem 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 government pay one-half the cost of these pensions but not more than s1b a month for any in- dividual.
 States would be permitted to es- tablish property and income limi- tations upon the pensions systems but:
 "No aged person otherwise elig- ible may be denied a pension whose property does not exceed $5,000 in value, or whose income is not larger than is necessary for a reasonable subsistence compatible with decency and health" t
 States may maintain an age lim- 1t of 70 years to Jan. 1, 1940, thereafter reducing 1t 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 a decent, subsistence in their own homes"
 The committee reported that ac- turial calculations placed the pen- sion cost so high for the year 1880 (repeat 1980O that the problem must be re-examined in search of means to reduce estimated govern ment contributions in that year.
 Sound financing, 1t was explain. ed, requires simultaneous establish ment of compulsory annuity sys- tenn to reduce the cost of. the fore going pension system.
 Compulsory contributory annui- ties: the committee recommended a compulsory assessment of one per cent against payrolls to be di- vided equally between employers and employees. The rate would be increasedby one per cent every five years until 1t reached a max mum of five per cent at the end of 20 years. The system would in- clude all manual and non-manual workers earning less than $250 month except employees of govern mental units and persons covered by the United States railroad re- tirement act.
 Receipts are expected to exceed expenditures to an extent that will make government contributions unnecessary during the first 80 years the plan is in operation. In launching the plan the commit. tee said 1t would be necessary to pay reasonably adequate annui- ties" on retirement to persons now middle aged or older who cannot In the few remaining years of their industrial life accumulate sub- stantial reserve.
 The tax assessment against em- ployes and employers would be de. ducted through the latter and they CuId be entitled to deduct the employees share from wages due. Acturial estimates placed the re. serve figure when federal contrib- utions would begin at $15.250.o00 (M).
 the system had been receiving contributions for five years. They would not be paid to any person who had made fewer than 200 weekly contributions nor to any person under the age of 65. There is provision for compensation to the estate if contributor dies be- fore attaining retirement age. Under one proposal considered by the committee, the annuity payable to persons in whose behalf contributions are first paid dur. ing the years 1887 and 1o4I would range from a maximum of SEQ for persons retiring in the sixth year of insurance to $60 for those whose number of weekly contributions entitled them toy the greatest ale lowable benefit. The annuity due