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

Accounts, comparable to annuity in
surance, which will enable millions Of
our working class of people to retire
at the age Of SIS with a monthly in
come for life, the amount of the in
come being determined by their pre-
Vious waEe records
This has naturally set thousands of
our people to thinking about this
great and constructive humanitarian
program. They are wondering what it
really is and how it will affect them
Though there has been a great deal
of discussion of the Social Security
Act in the newspapers and over the
radio within the past several weeks.
many are still without an understand
irg Knowledge of its detectives and
just low it works.
Eleven Sections.
There are eleven sections of the So
cial Security Act altogether. These
sections may be classified into three
groups; one group provides financial
assistance to the states to carry on
health and welfare activities, includ-
ing assistance to needy aged, needy
blind and dependent children. Anoth-
er group provides method under
which each state, with the aid of the
Federal Government, may enact an
unemployment compensation law with
out placing its employers at a COM
pective disadvantage with employers
in other states. The third group COW
ers the Federal Old Age Benefits plan.
1t is this plan, providing benefits
comparable to annuities paid by in
surance companies. that 1 shall try to
explain, in order to aid the 26 million
working people who have recently re-
ceived Form SS-5 known as 'Applica-
ton for Account Number
This part of the Social Surity Act
is sometimes confused with the sec
ton of the Act providing relief for
needy aged people many of whom
would otherwise be destitute or in
the poorhouSe. Assistance to this class
of our people is provided through a
Federal-State cooperative plan which
the state of North Carolina has not
vet qualified to participate in. This
sort of assistance to needy aged peo-
pie is compression. In this way, men
and women referred to as State Old
Age men who are now old and are
without means of their own are help
ed in humane and orderly manner.
But the Federal Old Age Benefits
plan looks to the future.
Compared With Insurance.
These Federal Old Age Benefits can
best be understood if we compare
them to insurance. They apply to
wage and salary earners who are now
young or middle-aged, to men and wo-
men who work in industry, in bust
ness offices, in commercial enterprises
of all kinds. In these accounts, all
Of the approximately 100000 per-
sons estimated to be eligible will,
starting January 1, 1887, begin storing
up cash values payable to the worker
at age SIS or to his family if he does
before reaching the age of IS. In every
case, without exception, the cash
value of the account will at all times
be substantially larger than the work
er's own contribution under the So
cial Security Act. All persons work
ing for salary or wages, excepting
those engaged in agricultural, dOmeS-
tic service in private homes, Govern
ment service and in a few other eX-
Guided occupations are eligible. 1t is
also expected that many of those in
occupations not now covered by the
Act will eventually become eligible
through occasional or part time work
in those occupations which are cover
ed Under the Federal Old Age Bene-
fit provision of the Act, these men
and women will be assured an income
for life, after age IS, when they are
no longer at work. This income will
be paid to them by the United States
Government in monthly checks, just
like the installments on annuities
from an insurance company. In case
of death, the cash value will be paid
to the workers family. Like an in
| surance policy, the workers Old Age
Benefit from the Government must be
paid in advance. However, instead OF