The Waterbury Democrat., 1935-08-15

times of future unemployment.
 His signature completed enact. ment of one of the most import. ant and far-reaching of New Deal proposals. Championed b, MT. Roosevelt to help Americana meet some of the major economic hazards of life," the measure: l. Provides for federal contri. tutions of up to $15 per month pei person, starting soon, to helr states pension their most needy aged residents.
 9. Establishes a great national annuity system by which an esti. mated 25,O00,000 workers and their employers will be taxed bill. lions of dollars through the years and will be paid $10 to $S5 a month by the government when they are 65 and jobless. 8. Creates joint state-federa' insurance systems to provide linn. ited benefits in times O. future unemployment. 4. Assists the states immediate. ately in caring for dependent mothers and children, the blind and the i'll.
 Quick Aid to Aged
 About $100,000,000 of federal funds are called for to finance the federal share of immediate assist ance to the aged. and to mothers children and the blind. Congress Is expected to appropriate the ac. tual funds before adjourning this session.
 The administration committed On economic security estimates al least 2,400,000 persons are over 6t and in need. How many of them will be helped immediately de. pends largely on the states. Fed eral funds will be granted only tc the extent that states or their sub divisions pay pensions to the aged In 1897 an estimated 25,00 per. sons will begin paying special tax. es which eventually will take three per cent of their wages each year Their employers will be required tt pay the same levy. From the proceeds of these taxes, beginning in 1942, persons who have beer paying the taxes for five years and who are over 65 and out of work will receive pensions direct from the federal treasury.
 The unemployment insurance program will not help those now jobless. But 1t will virtuolly forct the states to set up insurance plant guaranteeing limited benefits tt those who lose their jobs in 193! and thereafter.
 The entire program will be ad. ministered by federal social security board of three members. Some Major Points
 Major points in the complex pro- gram are:
 Immediate federal-state old age pensions.
 The federal government alio- cates $49,750,000 for the fiscal year ending June 30, 1887. and as much as may be needed thereafter, to match state pensions to the aged needy. This system also will be used in the future to care for those not covered by the perman- ent annuity program.
 The federal contribution is linn tied to $15 per person per month. If a state put up $10, the govern fnent would add $f0, providing a pension of $20 month. There is nothing to prevent a state from granting more than $15. Thus if 8 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.
 A pension applicant. otherwise eligible, cannot be denied aid If he has lived in a state for the year immediately preceding his ap- plication and for any five of the nine proceeding years. Aid may be denied to those who are not U. s, citizens. Until 1940, states may refuse to pension those under 70, but after that 65 is the eligibility age.
 Compulsory Ald-Age Annuity.
 This will apply to all wage earn CTS throughout the country. except agricultural labor, domestic ser wants. casual labor, federal, state city, county and other govern mental employees, and employees oi educational, charitable, scientific literary and religious organizations On the basis of the 1880 census, Il is estimated the plan will cover 25.804,000 persons.
 Beginning in 1887, each employt will be taxed one-half per cent oi his wages. That part of wagel received from one employer in ex' cess of &8.O00 in one year would not be taxed. The tnx will be de. ducted from wages and paid by thu ! employer. A the same time ths