Evening star., 1937-12-17
SOCIAL SECURITY
CHANGES0FFERED
Seven Amendments Await
Consideration When Con.
gress Reconvenes.
BY J. A. OLEARY.

Seven changes in the Federal social
security law, described as non
controversial" by President Roosevelt
when he submitted them yesterday,
will be awaiting consideration by
House and Senate committees when
Congress reconvenes after the Christ
mas holidays. According to a memo
randum furnished to congressional
leaders, the amendments would accom-
plish the following:
Extend the social security law to
seamen on American ships.
Extend the law to employees Of ma
tional banks, of State banks belonging
to the Federal Reserve System, and
to employees Of institutions coming
under the Home Loan Bank system.
Permit persons now 60 or more years
Of age to continue working through
194l to qualify on retirement for
monthly old-age annuities, instead Of
receiving small lump-sum payments.
To Meet State Requirements.
To enable merit rating" in State
unemployment compensation laws to
"clh NY lildhIliS OtSIllllSdl IlldIlSCo III
the social security act.
To pay death claims direct to the
wife or dependent children and save
expense of probating estates, as is
done in veterans laws.
To aid in simplifying employers
wage reports by amending certain
definitions in the law.
Tn raryoit aor1ior 49,
employment compensation in States
that passed their laws late. Referring
to this amendment, the memorandum
explained:
For two years, funds have been
built up in these States. With in
creasing unemployment this will get
money earlier to those laid off,"
No mention was made in the memo
randum of the controversial question
of whether the Federal old-age an
nuity plan should be kept on the pres
ent full reserve basis, or modified, and
Chairman Harrison Of the Senate
Finance Committee said last night ne
did not believe the reserve issue would
come up during the approaching regu-
ScoSlOI.
Senator Harrison pointed out that
the rate Of pay roll taxation for Fed
eral old-age annuities does not in.
crease to the next step until 1910,
indicating he does not regard the
question of changing the reserve basis
as urgent.
He pointed out also that the whole
subject of reserves is still being studied
by the Advisory Council of Experts
appointed last summer by q Senate
Finance Subcommittee. Senator Har-
rison added that thus far he has not
changed his mind on the full reserve
plan as written into the original law.
Senator Vandenberg, Republican. of
Michigan made it clear last night,
however, that he still believes Congress
should do something about the method
Of building up the reserve, and does
not think it should wait until the tax
rate changes in 1910 to act.
Sees Economic Menace.
1t has been estimated that the full
reserve basis in the present law will
build up to fund of s47000,0 1000 900
by 1880, and Senator Vandenberg con-
tends this needlessly creates a fiscal
and economic menace.
The advisory council now studying
the reserve plan is the result of a
resolution which the Michigan Sena-
tor introduced last January, and he
indicated today he wants to wait q
reasonable length of time for the coun-
Gil to submit its conclusions before
seeking legislative action to amend
the full-reserve system. He believes,
however, that inevitably Congress will
have to take up the question even
tually.
Senator Vandenberg suggested at
the last session that the SAT 900 .00o,-
900 full reserve could be altered either
by increasing pensions to those retir-
ing within the next 10 to 20 years, or
leave benefit payments unchanged and
keep pay roll taxes down to the present
rate Of l per cent each from employer
and employe for at least 10 years, and
possibly longer.
While no definite move may be made
to alter the reserve feature of the law
when the pending non-controversial
amendments are taken up, the consid-
GRAFTON of these minor changes is like
ly to revive discussion of the reserve
problem.