Montana labor news., 1936-11-12
Social Security Board
Hits Employers Attack
On d-Age Law
Wage Deduction Warnings
Placed in Pay Envelopes As
sailed As Deceitful and Mis-
leading.

dSC DSuesSeioh w ii II >
Placed in Pay Envelopes As
sailed As Deceitful and Mis-
leading.
By a.. F. of L. News Service
WASHINGTON, D. c. Strong
condemnation of employers warn
ings to workers, inserted in pay en-
velopes, that a Federal tax will be
deducted from their wages starting
January l was issued by the Social
Security Board here. The notices
were characterized as misleading
and reeking with mis-statements re-
garding the amount of the tax and
the benefits the workers will receive
under the old-age annuity provisions
of the Social Security Act.
According to information received
here many employers, particularly
in the automobile producing CEN
ters, have been cooperating with po-
litical organizations distributing
campaign material in opposition to
the old-age annuity plan, basing
their assault on the new tax imposed
by the law on workers, but hiding
the fact that an equal tax is imposed
on employers.
Some workers have received their
wages in envelopes on which the
following notice is printed.
PAY DEDUCTION Effective
January, 1887, we are compelled by
a Roosevelt New Deal law to make
a l per cent deduction from your
wages and turn it over to the gov
eminent. Finally this may go as
high as 4 per cent. You might get
this money back in future years
but only if Congress decides to make
the appropriation for this purpose.
There is NO guarantee. Decide, be-
fore Nov. Selection Day, whether
or not you wish to take these
chances"
Security Boards Statement
The Social Security Boards state
ment denying the truth of this
propaganda and explaining the ac-
tual provisions and benefits of the
old age annuity plan, was issued by
John J. Altmeyer, acting chairman
of the Board. The text of the state
ment follows:
''The Social Security Board has
received from many parts of the
country copies of posters, bulletins,
and pay envelope inserts warning
workers that a Federal tax will be
deducted from their pay beginning
January l, 1887.
''The Board has received also, by
Iong-distance telephone, telegraph,
letter and in person, numerous pro-
tests and complaints concerning
these materials and the manner of
their use together with inquiries as
to the degree of their accuracy and
authenticity.
THE statements are nearly all
either misleading as to the amount
of tax that will be paid or actually
mis-state the amount of tax that will
be paid. They make no reference
to the fact that the employer is also
required to pay a tax.
Even worse, they are completely
silent or cast doubt upon the sub
stantial benefits that will be pay
able to workers, Some of these
statements 60 so far as to suggest
that the Government may not live
up to its promise to pay these bene-
fits when due.
Undoubtedly, many of the en-
ployers involved have been misin-
formed as to the facts-some are
even laboring under the impression
that these are official statements
issued by the Government which
they r required to distribute.
Monthly Benefits Begin at 65 Years
"The facts are that the Federal
Benefits section of the So
cial Security Act goes into effect
January l, 1887, and under these
provisions a nationwide retirement
benefit plan is being set up where
by workers will build up rights to
the payment of regular monthly
benefits beginning at age 65 in pro-
portion to the wages they have
earned prior to that time.
'"These benefits will always
amount to more than the worker |
has paid in taxes, no matter how
young the worker was when he
started paying taxes and no matter
how high his wages have been dur
ing the time he has paid taxes.
Moreover, every worker eligible
and it is estimated that rs million
will be eligible at the outset-will
receive a monthly retirement benefit
upon reaching the age of IS larger
than he could purchase from any
private insurance company with the
taxes he will have paid the Govern
ment.
"These monthly benefits will
from $40 to $85 a month. If
a worker dies before reaching age
a lump sun payment is made to
family, This lump sum will
amount to 3R per cent of the total
wages he has earned after 1896. If
he dies after reaching age SIS before
has drawn out monthly benefits |