Imperial Valley press., 1935-08-14
SOCIAL SECURITY BILL SIGNED
TODAY BY PRESIDENT ROOSEVELT

state gave $25, the government
would add SIS to make a pension OF
$40 a month.
Administration of the pensions is
left to the states. but they must
meet certain requirements.
A pension applicant. otherwise
eligible. cannot be denied aid If he
has lived in a state for the year
Immediately preceding his applica-
ton and for any five of the nine
preceding years. Aid may be de-
MED to those who are not u. S.
citizens. Until 1940 states may re-
fuse to pension those under 70, but
after that 65 is the eligibility age
Thirty three states now have pen
sion systems. Others are expected
to adopt them soon.
Compulsory 0ld-Age Annuity
System
This will apply to all wage earn
ers Throughout tie county, ex-
cept agricultural labor domestic
servants. casual labor, federal, state,
city county and other governmental
employees, and employees of edu-
cational, charitable, scientific, lit
erary and religious organizations.
1t is estimated the plan will cover
25,8O4,O 900 persons.
Beginning in 1887, each employee
will be taxed one-half per cent of
his wages. That part of wages re-
ceived from one employer in ex-
cess of $1,000 in one year would not
be taxed. The tax will be deducted
from wages and paid by the en-
ployer. At the same time the en-
ployer himself must pay an equal
tax
Every three years, each tax will be
increased one-half of one per cent
until each amount to three per cent,
or total of six per cent, in 1949
and thereafter.
In 1912, the federal government
will start paying annuities. To OBJ
tain an annuity a person must;
Be at least IS and not regularly
Have paid annuity taxes in each
of five years after Dec. 81, 1886,
and on total wages of at least
$4,000.
Pensions will be smaller during
the earlier years of the plan. A
person whose wages average $100 a
month would receive $17.50 a month
if he retired in 1912 at age IS after
paying taxes five years. But men
now younger will pay taxes longer
and receive greater benefits.
A man who reaches IS in 1867
after paying the taxes 80 years
would receive $4,000 a month if his
wage had been 500 a month
and up to S68.75 if he had made
$3.50 a month. For longer periods
and higher wages the maximum
pension would be $85.
If a man had been paying taxes
but was not qualified for pension,
he would at age 65 receive a lump
sum equal to 312 per cent of the
total wages on which he had been
taxed. His estate would receive a
similar amount if he died before
reaching the age of IS.
Actuaries estimated the taxes to be
paid by employees and employers
under this plan would total $278,-
100000 in 1897 and reach an annual
total OF $1,877 100000 by 1850.
The funds are to be held in re-
serve on an insurance basis, calling
for a reserve of $14,000,000,00 by
1850 and SAC oOO,O0O,OOO by 1880.
This reserve is to be invested by
the treasury in government obliga-
tions.
Unemployment Insurance
The new law levieS a second pay
roll tax on employers to finance
unemployment insurance. Workers
are not taxed for this. Farm hands,
domestic help and govHilmenta}
employees are, exempt, and lllSCi
employers who have not given work
to at least eight persons in 10 weeks
of the year.
Tht tax, payable in 1887, will
equal one per cent of the employ
er's 1886 payroll. It will be two
per cent the next year and three
per cent thereafter.
The unemployment insurance will
be largely state matter. The fed
eral tax being designed to induce,
and virtually compel, states to es-
tabliSh their own systems.