The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1939-08-17
Lump Sum 0Id-Ase
Claims are Stopped
Lifetime Monthly Benefits To
Start January lst Of
Next Yeur


amending the Social Security Act
caused the Social Security Board today
to stop accepting claims for lump
sum old-age insurance benefits from
wage earners now reaching 65. Under
The revised program such workers
have an opportunity to get lifetime
monthly benefits. These benefits will
become payable on January l, 1910,
instead of in 1912, as scheduled in the
original law.
Commenting on these changes,
Arthur ]. Altmeyer, Chairman Of the
Board, said:
Termination of the payment of
lump-sum benefits, up to now payable
70 workers at age 65, is the only re-
vision of the old-age insurance pro-
gram to take effect simultaneously
when the amendments are signed by
he President. = The new and liberal
lied plan, while discontinuing this
kind of benefit, enables all workers in
covered employment-regardless of
whether they reach 65 before or after
l94O-to receive monthly benefits if
they meet a few simple requirements.
"Our estimates indicate that ap-
proximately 485,000 persons past 65
will be entitled to monthly benefits in
1910, and that the benefits payable
Turing the year will exceed $110,0OO,-
900. This total includes payments to
retired wage earners, plus the addi-
cional benefits which the amended
plan provides for wives and dependent
children of retired workers, and for
the widows, orphans, or dependent
parents of workers who die. Under
the old plan, lump-sum benefits would
probably not have amounted to more
than $30,000,0O0 in 1910, including
Doth payments to workers reaching 65
and death payments"
Under instructions from the Board,
representatives of the Social Security
Board in more than 800 field offices
throughout the country today began
70 notify wage earners currently ap-
plying for lump-sum payments that
the new program may enable them to
receive monthly benefits after Janu-
ary l, 1910. Workers who have al
ready received lump-sum payments
may also be eligible for monthly bene-
fits after that date. The Board, Mr..
Altmeyer stated, plans to circularize
both this group and others over 65
who, from it's wage records, appear
likely to be eligible.
"Workers who become 65 between
now and 1910 and many Of those who
have already attained that age and
been paid lump-sum benefits will, in
almost all cases." he said, "get con-
siderably more from the revised old
age insurance plan than they could
have received before the law was
amended. The monthly benefits now
provided will practically always
amount to much more than the lump
sum to which the claimant would for
merly have been entitled"
Mr.. Altmeyer reported that, from
the start of the program on January
1, 1887, to the date of termination,
the Bureau Of Old-Age Insurance had
paid 178,O00 claims for lump-sum
benefits at age IS, representing to-
tai Of approximately $10,O00,OO0 for
the entire period during which this
provision was in effect.
These payments, made under the
original terms Of the act, were equiva-
lent to 31s per cent Of the wage earn
er's total taxable earnings. 1t was
not necessary to stop work to receive
such payment but wages earned
after age SIS were not taxable and
did not count toward benefits.
Pointing out that the amended act
eliminates this "stop date" at age 65
as of January l, 1899, Mr.. Altmeyer
said: "This means that tho worker
now continues to build up old-age in
surance wage credits regardless Of his
age, as long as he remains in employ
ment covered by the program. Fur
thermore, there is another way in
which the new plan liberalizes require
ments for receiving benefits. TO quail
ify for monthly benefits under the old
plan, worker had to have been in
covered employment at some time dur.
ing 5 different years after the pro,
gram started in January 1887 and be.
fore reaching 65; this ruled out every.
one becoming IS before 1941 and the
lump sums were the only benefits they
could get. Now a worker who has
been in covered employment for as
short a time as year and half may
receive monthly benefits, if he is other
wise qualified. He may claim his re-
tirement benefit at any time after he
has passed his 65th birthday and hal
stopped work. Though monthly bene
fits first become payable in 1910, {
wage Garner need not remain in GOV
cred employment until then to qualify
provided he has met the requirement.
at any earlier date"
AS an example Of how the new pro
gram will work out, Mr.. Altmeyel
cited the case Of man who had beer
making $100 a month since the old
age insurance system was establishes
in 1887, and who will become 65 year
old on December 81, 1889. "Under tn
old plan," Mr.. Altmeyer said, "thi
man would have been entitled to re