Evening star., 1939-08-07
0Id-Age Insurance
Benefits Under New
Social Security Law
Questions and Answers
Presented to Show
Several Changes Made
~ the Associated Press.

~ the Associated Press
In one of it's last acts Congress
broadened the social security pro-
gram. Here are some questions and
answers regarding the old-age in
surance phase of the program as it
will be revised when President
Roosevelt signs the new new rules
into law:
@. am an employed worker. Do
the new amendments change the
deductions from my pay for old-age
insurance?
A. Both your payments and your
employers will continue at the pres
ent rate until January /, 1943. Under
the old law both payments would
have increased from the present l
per cent each to q per cent on next
January. The new rules provide for
increasing the payments to 2 per
cent on January /, 1943, to 212 per
cent on January l. 1916. and to 3
per cent on January l, 1949. Three
per cent is the ceiling for these pay
ments and this tax applies only
to the first $4,000 of wages year.
@. Do the amendments change the
benefits l will receive upon reach
ing the age of 65?
A. Your benefits are changed. For
example, confirmed bachelor who
starts payments toward old-age in
surance at 35 and whose average
salary over the 30-year period be-
tween ages IS and IS was $3.50 a
month, would get monthly benetlt
of S39 on reaching 65, as compared
with the $5275 under the old law.
However, if you were married and
your wife also was IS, your beneht
would be $3.50 under the new plan.
Older Man Benefits.
An older man would be benefited.
Take a man who was SIS when old
AGE collections started and whose SAL
ary from then until age IS averaged
$3.50. If single, his benefit would be
increased from the present $3.50 to
$33 monthly; if married to woman
also IS, it would be s49.50.
Speaking generally, the amend
ments increase the benefits for per-
sons reaching IS in the early years of
the program and decrease them for
single persons becoming eligible
later
@. am 68 years old and employed
and therefore have not been included
in old-age insurance system up to
now. Do the new amendments give
me aid?
A. Yes. Counting from January
/, 1899, you and your employer will
pay the regular rate of l per cent
each. On July l, 1910. you Will be
entitled to pension. II your
monthly wage for that 18 months
period is $3.50. your benefit Will be
5000 monthly If you are single, or
$45 80 if you are married and your
wife is IS or more.
Death Benefits to Family.
@. How would these amendments
affect the benefits payable to my
family in the case of my death?
A. Monthly benefits for WIDOWS,
orphans and dependent parents re-
place the present single cash pay
ment. A WIDOWS monthly DEMENT'S
amount to three-fourthS of what her
husbands benefits would have been
had he lived Dependent parents or
children would get about one-half
the deceased'S benefits.
@. will be IS years old on jan
uary /, 1910, and have been en-
ployed since social security started.
When do my benefits start?
A. You become eligible on your
birthday anniversary. The amend
ments advanced the date for COM
mencing payment of benefits from
January /, 1912, to next January l..
Y. Must l retire then?
A. The amendments permit you
to continue to work as long as you
wish The longer you work. the
larger your benefit when you do re-
tire.
@. I am past 65 and already have
received lump sum from the Social
Security Board as result of my
participation in old-age insurance,
Do the amendments provide any
monthly benefits for me?
Lump Sum Deducted.
A. Yes. If you paid old-age taxes
for minimum of 18 months before
you reached age IS, you will be eli
gible for a pension on January l.,
1910. The amount of your lump sum
payment will be deducted in small
installments from your monthly
benefits.
If you paid taxes less than 18
months. you may qualify for MONTH
ly benefits by working at an occupa-
ton covered by this insurance for
such period as will give you IS
months participation in the pro-
gram.
@. Do the amendments change the
maximum and minimum old-age
insurance benefits?
A. The maximum benefits continue
at $85 monthly and the minimum
benefits at $40 monthly.