Evening star., 1935-08-19
$75,oDO,0(O ASKED
FOR PENSION PLAN
BUDGET Bureau Recommends
Sum-Youth Administra-
ton Gets S27,O56,2 ,268.
By the Associated Press

for the next 10 months has been rec
commended by the Budget Bureau and
probably will be voted by Congress be-
fore adjournment this week.
At the same time it was announced
the National Youth Administration
had received S27,056.268 of work re-
lief funds to aid 323,792 young men
and women between Is and Is all
the way from high school to college
graduate courses DR.. Lewis Alder
man will administer the program. a
continuation Of the Relief Administca-
tions education plan.
Although the security measure
signed by President Roosevelt last
week authorized expenditure of S98,-
4o1 900 during the current fiscal year
ending next July /. the Budget Bu-
reau, in a message to the House Ap-
preparations Committee. suggested
reduction of nearly 25 per cent, since
quarter of the year will have passed
before the act becomes operative.
Deficiency Provided For.
Anv sums in excess of the proposed
S75.00O,000 which may be spent by the
still unappointed security board could
be met by a deficiency appropriation
when Congress reassembles next jan
uary. it was said. Officials familiar
with the program believed this action
might be necessary. pointing out that
even more than the S98.000.000 orig
inally authorized may be needed to
carry out the administration plan
to remove unemployables from relief
rolls this Winter. This plan, they
said. will add to State old-age rolls
and thus to the amount of Federal
grants to States for old-age pen
sioners.
Irrespective of the Budget Bureaus
recommended reductions. which were
not Immediately available, the appro
priation originally authorized to sup
port the security program until July
!, 1886. is divided as follows:
Old-age assistance for grants to
States, s4s.7500O0.
Unemployment insurance for State
administration s4000000
Aid to dependent children, s24,-
100000.
Maternal and child health, s3,-
100000.
Crippled children. S2.850 000
Child welfare, Sl5O00O0.
Vocational rehabilitation. S94l 900.
Public health, s8.00O.000
Aid to the blind. 3000 900.
Administration of these funds and
research work by the New Social Sc
curity Board mot included in s98,-
$4,000 totaD. S4l27 900.
These phases of the big program
are to start this year. Some of the
money will be spent directly by the
Federal Government. Some will be
given to the States.
Start Next Year.
The major parts of the program,
however - compulsory old-age pen
sions and unemployment insurance
do not start until next year.
Old-age pensions:
Starting immediately. the Federal
Government will contribute up to SIS
month per person to match grants
of IS States which now have old-age
pension plans.
A compulsory self-sustaining system
designed eventually to replace the
Federal-State grants will start De-
cember 81, 1886
After that date. nearly all employees
making less than $4,000 a year. with
the exception of domestic and agricul-
tural labor, will pay a gradually in
creasing tax on their pay This will
start at l per cent in 1887. After
1948 it will be per cent. Employers
will contribute a tax of the same
amount. The Federal Government
will keep this money for the States,
which will administer payments.
At the age of IS. the employe will
start receiving pension. If he made
an average of S100 a month for 40
years before he retired at IS. he would
get monthly pension of S51.25 until
he died The maximum monthly
benefit would be S85, the minimum
$40.
Estate to Receive Sum.
If the pensioner died before he re-
ceived as much as he had paid in,
his estate would get the balance with
interest. If the employe died before
he reached the pension age, his estate
would receive the amount he had paid |
in. with interest.
No benefits are to be paid until |
January, 1912.
Unemployment Insurance:
Employers of eight or more persons !
are to pay Federal pay roll tax
starting next January l Il per cent |
next year, per cent in 1887, and 8
per cent thereafter), with a 80 per
State unemployment insurance funds. |
Only five States-Wisconsin, New
York, Washington, Utah and New
Hampshire-now have unemployment |
insurance systems, but others are ex-
pected to adopt them during the |
coming year.
State Plans Vary.
The nature of the State plans varies.
New York benefits, for example, are
to range from S5 to SIS a week and
to run for not more than is weeks.
The 10 per cent of the tax the
Federal Government retains is to be
spent in helping the States admin
lister their plans. The social security
act called for a s49,000,000 annual
dppIuplldIlol loi lilo pui Pooe e"Cii
year after this year.
The Youth Administration allotment
will be divided as follows: sl1,463,-
1853 for 212.192 high school students
at S6 a month $14.512,5 for 107,500
college students at SIS month: ST.
100000 for 1000 postgraduate stu
dents at $50 month.
When set up, the Youth Admins
tration was promised S50,0o0, 900 in al.
Colleges agreeing to accept students
helped by the Youth Administration
receive funds to care for II per cent
of their enrolment.