The Waterbury Democrat., 1936-01-14
1SO,OOO Now Helped

4OVSVVV 4NVW AASARSu
 If all the states got promptly into line, somewhere around 100000 needy persons probably would quail ify for old age pensions. About 180,000 are now receiving some kind of pension under old age laws of 28 states, averaging $l4.69 g month.
 It has been estimated officially that about 100000 Americans are over 65 years old, that nearly halt of them are dependent, that al least a million of them are on pulp lie charity, and that in normal years only half of two thirds of us are able to lay aside enough money to support ourselves when we become old and unable to work
 Just as Old Age Assistance is designed to help people now aging or close to old age, Phase No. Z Old Age Benefits-is designed to assure younger employed persons with 8 definite income when they retire and to gradually do away with old age pensions under Phase No. 1.
 One reason for that is to prepare for the day when those 65 and over will amount to 10 per cent of the population (estimated by 1970) instead of 6 per cent, as now. Tax Rate Will Rise
 Effective in January, 1887, the government will begin col- lecting currently 8 tax from an estimated 26,00O,00 workers and their employers = in equal percent ages of wages earned and paid - old Age Reserve Fund in the treasury. This tax aplies only to the first $3000 of the employees in- come or to the entire income if Il is no greater than that.
 It will be at the rate of 1 per cent for both employer and en. ploye in 1887 and gradually will rise to 3 per cent in ls49 and thereafter. The bureau of Inter- nal Revenue hasn't yet figured out the best way to collect 1t. (The law permits the postmaster-gen- eral to issue certain stamps which may be purchased from postofficei and used to pay the tax) A
 Beginning in 1922, the Treasury will begin to pay out monthly bene- fit checks to all those affected by the plan who have reached the age of 65, and have received $2000 or more in total wages since 19S6 = provided wages were received or at least one day in each year.
 Minimum Set at $10
 Minimum monthly benefit which can be paid is $l0 and maxi mum $85. Examples of the way it works out: A man who has av- eraged $50 month salary since l936 will receive monthly checks of $17.50 if he becomes 65 in 1947 $22.50 and if he becomes 65 in 1857 S27.5O in 1887, and $32.5O in 1877 - after 40 years of employment ano taxpaying under the plan.
 Or if his average salary is the taxing top of $3O00 a year, he will receive $37.50 after 10 years oi employment, $56.25 after 20 years S6e.75 after 30 years, and $8l.2s after 40 years assuming he is 6t by the end of such periods.
 Those figures, you will observe mean that young men and womer affected by the plan for Q long time will receive much less in propor- ton to their total contribution than workers now within shooting distance of 65. This comes about through Q provision which say monthly benefits shall be paid or total wages received after 1886 ant prior to age 65, at the rate of one. half of 1 per cent for the first 830OO (4l5 Q month), one-twelftt of 1 per cent for the next 942,0Ol and one-twenty-fourth of l pel cent for all over e45,0Oo.
 Youth to Carry Burden It was felt by somebody. with thu approval of President Roosevelt that 1t would be cheaper for tax payers and better for older work CTS who could come under the piar l for relatively brief periods befoT' reaching 66 if younger workers contributing for 90 years or more were made to bear c large part O the burden Of retiring their cider on annuities as well as carrylnl expense or providing for their owi old age.
 Some bitter complaints have beel lmade against this policy.