Evening star., 1938-12-19
Social Security
fContinued From First Page.

disability insurance system to pro-
tect insured workers deprived OF
their earning power before retire
ment age.
With these expansion proposals
the council made third major
recommendation-that present plans
for q $4,000, 900 900 old-age reserve
fund by 1880 be scrapped in favor
Of contingency fund, set up as q
trust and bolstered by Federal sub
sidy. All revenue from social Sc
curity taxes would be earmarked fo1
this fund.
Under the plan, the Government
would pay one-third of the cost o1
the old-age insurance program
one-third would come from the pay
roll tax on employees, and one-thirc
from the pay roll tax on employers
This tax, now ! per cent each or
employers and workers, is sched-
uled to go up to l12 per cent ir
1910.
Vandenberg Halls Report.
Senator Vandenberg, Republican
Of Michigan, a sponsor of the Ad.
visory Council, hailed its report a.
an expert, bipartisan Qualification
OF a complex problem" He pre-.
dicted Republicans In Congress
would cooperate in enacting the
changes it recommended.
Senator Vandenberg said, in q
statement issued through the Re.
publican National Committee, tina,
Congress would not hesitate tc
eliminate the old-age reserve fund
and the pay roll tax increase sched-
uled for 1910, advance the start o1
benefit payments, and earmark old.
age insurance taxes.
He said, however, extension o1
the whole system to entirely new
groups may well await the time
when we have perfected the exist.
Ing system for existing groups"
Other recommendations of the
council provided for increasing thu
schedule of benefits to be paid In
early years above the present es-
timated average of $40 a month; TO,
changing the date of beginning pay.
ments from 1912 to 1910, and even.
tually for paying single beneficiaries
less than married persons in order
to help bear the cost Of setting ur
family protection.
Quick Support Likely.
The council consists of Is repre-
sentatives of employers, employees
and the public. Ondcials said the
Social Security Board would not
take issue with it on major policy
questions.
Some Of the councils recon.
mendations probably will find Quick
support in Congress, especially
among members trying to ward ofl
the onslaught Of old-age pension
advocates.
The proposal for eliminating the
big reserve fund, however, may lack
hearty administration backing. since
the big reserve fund was set up
chiefly at the suggestion Of Secre-
tary Morgenthau and has been
vigorously supported by officials
against the opposition Of those ad-
VOSooAAAo - Poy yoOeSO p10A1s
Under the present system, social
security tax revenues, paid directly
into the Treasury general fund, are
scheduled to increase every three
years until 1949, when they would
amount to 6 per cent Of the pay roll
in covered industries. This sum
would be much more than necessary
to meet annual benefit costs and the
surplus would be used to build up
the reserve.
Some Disagreement.
II no big reserve is to be built up,
tax schedules could be less than
now provided. The council recon-
mended that the 1910 increase be
permitted to become effective. but
that revision be undertaken by 1e42,
On this point some members were
In disagreement with the majority.
according to the report.
Several also objected to immediate