The midland journal. (Rising Sun, Md.) 1885-1947, 1938-12-16
OLD AGE INSURANCE

". i am llttl0 cOnIuS6O ABOUT
the question Of benefits for Old
people There is lot of talk about
old-age pensions; some people speak
of old-age insurance, and some call
it ond-age assistance. What is the
difference-if any-in these terms?
A. Strictly speaking, there is no
such thing as fixed pension paid
by the Federal Government to the
aged. Old-age assistance is given by
a State to it's own aged citizens who
are in need. The Federal Govern
ment grants money to the State to
help take care of it's needy aged in
their own homes. Old-age assistance
is relief money for people, SIS years
old and over, who have no means
of support. Old-age insurance will
be paid by the Federal Government
to each insured worker after he
reaches age IS. Benefits are based
on the workers own earnings, and
will be paid regardless of need. Old
age insurance is very much like an
annuity. The benefits which accrue,
working years, will be paid to the
insured worker after he reaches
age SIS.
@. l read in the paper that ten
million dollars have been paid out
by the Government for old~age in
surance, with more then 234,0O0
people in the United States sharing
the benefits Who are these bene-
ficiaries Why are they getting old
age insurance payments now? work
all the time, in spite of the fact
that l am nearly so years old, and
have been paying my one percent
wage tax every week for almost
two years; but nobody sends me any
old-age insurance money.
A. Two types of old-age Insurance
benefits are paid now. Ono is the
death benefit, which the Fedel al
Government pays to relative Cor
estate) of an insured worker who
dies before receiving the benefits
which have accrued to his social sec
urity account The other type OF
lump-sum benefit now payable is
for the insured worker who has
reached the age of 65 since the first
of January, 1887. This lump-sum
payment is provided under the Soc
ial Security Act for wage-earner
who does not have a chance to
qualify for the regular monthly re-
tirement benefits. By the time you
reach age of IS, the monthly
benefits provided by the Act will
be payable. Then, instead of receiv-
ing one lump-sum payment as o
claimant does now, you will receive
monthly payments (if you are quail
fed and stop work., and you will
get Government check every
month for the rest of your life. The
amount of the monthly payment
will depend upon the total amount
of wages you have been paid since
1886 in job that comes under the
law.
O. A man who has worked fol
two years in a stove foundry reach
ed his 65th birthday recently and
filed a claim for oldage insurance
benefits. Last week he received 6
check for about $50. All right, he
has that one check, but he will no;
be able to work much longer, and he
has no one in the world to supper
him in his old age. What l want tt
know is whether or not any other
money, besides this one lump-sun
payment, can be obtained for him
under the Social Security Act.
A. That is entirely possible. An
other part of the Social Security
Act. known as "Old-Age Assist
ance," provides for the care of the
needy aged through joint cOntribu
lions from State and Federal Gov
ernments. If it becomes necessar!
for this man to seek Government
aid, he should apply for old-age as
sistance to his local public welfare
department.
-O--