Evening star., 1939-08-22
Broader Security
Benefits Explained
By A|tmeyer
Forum Speaker Gives
Dutu on Liberalization
Amendments

Amendments
Arthur j. Altmeyer, chairman Of
the Social Security Board, spoke on
"The New Social Security" last
night in the National Radio Forum,
arranged by The Star and broad
cast over a Nationwide network of
the National Broadcasting Co. The
text of his address follows:
I am greatly indebted to The
Washington Star and the National
Broadcasting Co. for this oppor-
tunity to discuss with you the recent
amendments to the Social Security
Act. On three previous occasions
have had the privilege of discussing
the progress that has been made in
providing social security for the
American people. Great progress
has already been made and still
greater progress can be made under
these new amendments to the Social
Security Act. Wherever there is a
family, wherever there is a child,
wherever there is a wage Garner
and wherever there is an aged,
crippled or blind person, the
amended Social Security Act carries
the promise of more secure future.
The keynote of the amendments
Is a liberalization and expansion of
the social security program to in
clude not only the worker, but his
family. More money will now be
available for public health, child
welfare and vocational rehabilita-
ton; more liberal Federal grants
are made possible for State pro-
grams to aid the needy aged, the
needy blind and needy children.
Tax-saving changes have been made
IN Federal provisions relating to
unemployment compensation.
Greater Child Benefits.
All of these changes are impor-
tant, particularly the one providing
greater Federal assistance to the
States in financing State programs
Tor aid to dependent children,
popularity known as mothers pen
sion laws" Beginning January /.
1940, the Federal Government will
pay for one-half instead of one
third OF the cost of providing aid
TO dependent children. This will
enable the States to grant more
adequate aid to dependent children
now on their rolls and to include
on the rolls thousands of children
VINO are not now receiving such aid.
However, the amendments to what
used to be known as the old-age
insurance system go beyond all the
other amendments in bringing
greater protection to the greatest
number of people. That is whv I
am going to devote this talk ex-
clusively to these.
Let me give you some BACKGROUND.
SO that you may better understand
the significance of these changes
IN the old-age insurance system,
beglnn1ng with 1887, workers in
industry and commerce have been
insured under Federal contribu-
tory old-age insurance system de-
signed to give them a regular in
come upon retirement at the age
OF 65 or over. These benefits were
scheduled to begin in 1912. In ad-
dition small lump-sum payments
were provided for those whose
credits did not entitle them to
monthly benefits; similarly, lump
sum payments were made when q
worker died if he had drawn little
or no retirement benefits before
death. To provide money so that
these benefits could be paid, a wage
tax was imposed on workers and
employers. For the three years be-
tween 1887 and 1910 the tax rate
was l per cent for each group; in
1910 1t was to go up to IL per cent
ana continue at that rate for three
years. After a worker reached IS
years OF age both he and his en-
ployer stopped paying taxes on his
wages and the worker could not
build up any more credits for re-
tlrement benefits.
In this original law the emphasis
was placed on the individual. When
he died, after necessary adjustments
were made, his account was closed.
Remember that as we go on to con-
slderation of the new amendments
death closed his account!
45,000,OO0 Accounts.
BY the time these new amend
ments were passed more than As
100000 accounts had been set up in
the old-age retirement system. Again
we must stop to interpret what
these words really mean. Forty-fve
million accounts, number too vast
to visualize. But what we can Wis
uallze are the men and women who
make up this number-miners, car
penters, engineers, clerks, -stenog-
raphers, factory workers, mill hands;
old, young, middle-aged-the Amer
lean people; those who leave their
homes for work every morning;
those who return to their families
every evening; those who pay rent,
buy food and clothing, get married,
have children, carry individual and
family responsibilities. We speak
glibly of the backbone of the Nation.
These make the backbone of the
Nation. these create prosperity, these
know that insecurity is no empty
threat.
You people listening tonight
most of you have one of these As
100000 social security numbers. But
to yourself, your friends, your neigh
bors, your families, you are not Just
number. Neither are you Just a
number to the Federal Government.
You are the father of little children,
or, although unmarried, you have
parents whom you support with your
earnings
Four years ago when the Social
Security Act was passed the Govern
ment said to each one of you who are
insured: when you retire at the
age of IS, you will get monthly
benefits for life provided you have
met a few simple requirements, and
what you get will depend on the
total wages you have earned"
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