Evening star., 1935-01-17

Senator Wagner Summarizes Social Measure


i mittee on Economic Security,
is summarized as follows by
the New York Senator:
Old.Age Pensions.
The old-age pension legislation is
divided into three parts: u A ma
tional system Of compulsory contribu-
tory old-age insurance: (2) Federal
subsidies to the States to help the
aged who cannot be brought under
the insurance system; go A voluntary
system of old-age annuities.
Q) The National System of Com
pulsory Contributory Old-Age In
Surance.
(a) Fund. An "Old-Age Fund" is
set up in the Treasury, managed and
invested by the Secretary of the
Treasury. This fund is supplied by
a tax upon all payrolls, amounting to
/ per cent as of January l. 1887; 2 per
cent as of January l, 1912; 3 per cent
as of January 1, 1947; 4 per cent as OF
January /, 1852, and per cent as of
January /, 1857: and each year there
after. The tax is paid by employers.
but each employer deducts one-half
of his tax from the wages OF his en-
ployes. Thus in effect an employer
contributes the same amount as his
employees. There is no tax upon that
portion of a payroll representing The
earnings of non-manual employees re-
ceiving salaries of over $3.50 per
month. The tax is collected by
means of stamps or coupons issued
T,,ko vi, aoy,t
and distributed through the post office
system.
(b) Eligibility TO receive pensions.
Any employe is eligible to receive a
pension when 1) he is IS years old,
and (2) taxes have been paid in his
behalf for at least 200 weeks over
Swear period commencing before he
is CO. and 90 he is no longer gainfully
employed by another.
(c) Amount Of pensions. Pensions
are paid monthly. In the case OF any
employe in whose behalf taxes are
paid before January /, 1912. the PEN
sion is Is per cent of his average
monthly wage If taxes were paid in
his behalf for 200 weeks. and per
cent additional for each 40 weeks
over such 200 that such taxes were
paid up to an additional 200 weeks.
and per cent additional for each 40
weeks above such aggregate 400 up
to an additional 400 weeks. In the
case of an employe in whose behalf
taxes are paid after January /. 1912.
the pension is 10 per cent OF his
average monthly wage If taxes were
paid for him during 200 weeks, and
per cent additional for each addi-
tional 40 weeks that taxes were paid
for him.
I'D Effect of death. If an insured
employe dies. before he has received
in pensions what he paid in plus inter-
est the balance goes to his legal or
actual dependents.
(2) Federal subsidies to the States
for old-age pensions.
(a) Appropriation. From general
Treasury funds. $50, 900 900 is appro-
priated for the fiscal year ending June
30. 1896. and s125 100000 is authorized
to be appropriated for each succeeding
fiscal year.
(b) Allotment. The Federal emer-
gency relief administrator allots yearly
to each State an amount equal to
what the State and its local subdi-
visions spend for old-age pensions
under a State plan approved by the
administrator But the Federal con-
tribution shall not be more than
enough to provide, when added to the
State contribution, a total of $50
pension per month to one individual.
If the total Federal appropriation is
not enough to match what all the
States are doing, then the allotment
to each State shall be diminished to
that percentage which the appropri-
alton bears to the sum of all allot-
ments.
(c) Federal standards. To receive
a Federal subsidy, the State plan for
old-age pensions must Cd be admin
istered by State authority approved
by the Federal emergency relief ad-
ministrator, (2) provide for contribu-
tions by the State, (3) provide large
enough pension to furnish. when added
to the income of the aged recipient,
reasonable subsistence compatible with
health and decency, a. not deny a
pension to any one IS years old who
is not in a public institution and
who has not income enough to live in
health and decency and who has re-
sided in the State for at least five of