Henderson daily dispatch. (Henderson, N.C.) 1914-1995, 1936-12-03

weekly, monthly, quarterly or yearly
premiums, the Government will col
lect through the employer weekly or
monthly payments, which may be
called taxes. But these payments will
be shared by the employers and the
workers equally ana Will be used only |
to pay cash benefits to the workers.
In other words, for every dollar the
worker pays into the fund for his own
benefit another dollar is added by
the employer for the workers benefit. |
Earnings Determine Benefit.
The size of the benefit which the
worker will receive at the age Of 90
will depend entirely upon how much
he or she earns btweeen January 1, |
1887, and their 65th birthday. A man
or woman who gets good pay and mas
steady job most of his or her life
can get as much as $85 per month for
life after age 65. The smallest month
ly benefit any worker can get who
comes under the provision of the Act
is $40. Let's take one or two concrete
examples of how it works.
Take the case of a worker 35 years
of age who is making $25 per week.
When he is IS years old and retireS,
he will receive a check for $45 per
month from the Federal Government
for the rest of his life. If he should
die at the age IS his family would
receive $1365
Now let us take the case of an old
Ell person, who is 60 years of age and
who earns $25 per week. When he re-
tires in five years time, he will re-
ceive approximately $18 per month
for the rest of his life.
Distribution of Cost
Naturally, the next question that
pops into the workers mind is one
about the cost. Here is the way the
cost is distributed. The worker pays
one half and the employer pays one
half. During the next three years
after January 1, 1887 each will pay
at the rate of lie on each dollar of
the workers earnings up to earnings
of $4,000 per year. That will mean, for
the next three years, 15c, zoe or Soc or
more a week, according to the work.
er's earnings. After the first three
years the worker and the employer
will each pay 1-2c more every three
years, until finally beginning in 1949
-12 years from now-each will invest
for old age security cents on each
dollar the worker eaIns-up to $4,000
per year. All of which goes to the
worker at the age of IS, or to his fam
lily if he should die before reaching
his 65th birthday That is the most
anybody will ever pay under the pre-
sent Social Security Act.
The next question that pops into
the mind is how is it carried on and
how is the money collected. The work
er will not have to make a weekly
trip to some office to pay his 15c or
zoe or SOC. The Government will col
lect both his contribution and the
employers contribution directly from
the employer.
Another Feature.
Another important feature of the
plan is that the worker will receive
the protection of the Federal Old Age
Benefit Plan regardless of whether
he charges employers or not--so long
as the job is III factory, shop, mine
mill, office, store or other such place
of business. Wages earned in en-
plOyment such as farm workers. do
nestle workers and few other kinds
of jobs, are not covered by the plan
However, all workers who have ever
been in an employment covered by
the plan will receive some protection
| based upon their earnings at the time
| they were covered by the plan
Now, let's make a comparison be-
| tween the total amount of contribu-
tons paid and the total benefits re-
ceived. Take the first case cited
| above.
| The man OF 35 who is making S25
| per week will over 35 years time con-
tribute 1915. If he lives out his nor
NAL life expectancy of y years after
reaching the age of IS, his benefits
will amount to $6,48O, or more than
IL times what he pays in.
In the case of a woman, the normal
expectancy is Is years, and she would
| receive $500, or more than times
what she paid in.
Now, let us take the second case
cited above. For a man of sixty,
pays in for five years before he re-
tires, his total tax or contribution is
$78, in return for which he will get
more than $3.50 if he lives out his
normal expectancy, which is more
than 33 times the amount he has paid
in. In the case of a woman of like
age, she would receive $3225, or more
than 40 times the amount she paid in.
Nowhere else can the worker get as
much protection for the same amount
of money that he pays in. This is
true not only because he receives the
benefit of his employers contribution,
but also because it would cost q Dri-
vate insurance company great deal
more to collect the premiums directly
from the worker in such small a.
mounts weekly or monthly.
Does Not Replace Insurance.
It should be remembered, however
that this program does not take the
place of the protection afforded peo-
pie by insurance companies, and es-
pecially those who can afford to pay
for it. 1t is the best judgment of our
Government officials that, in the same
way as war risk insurance Stimulat-
LII