Evening star., 1939-06-06

stantial increase in the returns
which workers will realize from old
age insurance in the immediate fu-
ture. BY thoughtful long-range
planning it has been possible to
provide for this change-which for
one regard as most essential-with-
out increasing the future overall
cost of the system
This is made possible by the elimi-
nation of the lump sum benefits.
The present law is operated along
the lines OF private insurance COM
pany so far as contributory annu-
tiles are concerned. The effect of
the pending bill in this respect is
/ to change it into social insurance
plan, with the family of the covered
employe tinstead of an individual
employe HIMSELF being the unit of
economic security which is sought.
A strong and secure family life is an
! important element in the existence
OF permanent form of government.
Two Aspects of Annuities.
These logical and ,iberalized pay
/ mentS should reduce the welfare
load of the several States and of
their political subdivisions, not only
at the present time but also in the
future. We must keep in mind that
there are two aspects of old age an
nuities provided for in the Social Sc
curity Act (one,, on-contributory
and two, contributory annuities.
/ The non-contributory pension is
based on need and is paid out of
public funds The contributory an
nuity is based on right" and is paid
by employer and employe Govern
ment might have to contribute in
future years. The non n-contributory
provisions are based upon the law
of necessity and exigency to prevent
as far as possible through payments
out of public funds, human distress
and suffering from existing among
our senior citizens. The several
States determine eligibility and pay
ments. and the Federal Government
contributes its share, under existing
law, one-half Of the pension paid up
to SIS per person per month, in the
bill just reported. up to $40 per
month, one-half of the pension paid
by State, up to $50 per month. This
does not meet the cause of need =
for old age. The contributory an
nuity is the method derived to meet
the long-range situation, and to pro-
vide for an annuity as a matter of
right instead of receiving public
funds based upon need
Furthermore, if old-age pensions
were to continue wholly to be non
contrlbutory, and paid out of public
funds. such system would ulti-
mately bankrupt Federal State and
local government
We must all remember, and par
ticularly our aged folks. that nom
contributory payments entirely out
OF proportion to the ability of all
others to bear the expense through
taxation will ultimately result in a
breakdown of such humane legisla-
ton and the aged persons them
selves will suffer 1t is. therefore
essential that common sense be eX-
ercised in improving upon the exist
ing law. The success of such legis-
lation is dependent upon the ability
of others to bear the expense.
In the amended act the security
OF children would be recognized as
a most important objective of our
social insurance system. 1t is also
now made an important objective in
public assistance. And in proposing
changes in the act I submitted an
amendment which would increase
the Federal money available to the
States for aid to dependent children
Under the present law the Federal
contribution for this program comes
to only one-third of the States eX-
penditures. whereas the Federal
Government pays approximately
half the cost of aid to the needy
aged and the needy blind. The COM
mittee now proposes that Federal
grants for aid to dependent chill
dren also be placed upon this equal
matching basis, and that the age
limit should be raised from Is to 18
when the child is regularly attend
ing school. This would bring the
age requirement under both the in
surance and assistance programs
into uniformity.
$4,000 Children Receive Aid.
There can be no question that
these changes would enable the
States to take care of more needy
children and to care for them more
adequately. About 695 900 children
are now receiving Federal-State aid
This is two and one-half times as
many as were cared for under State
and Federal laws in 1885. This in.
crease is significant, but so are tht
known needs which are still unmet
Eight States have yet to provide any
aid to dependent children under tn.
} act. In addition, through thi!
amendment the State programs al.
ready in operation will probably bt
able to provide for at least 1000 ,0O(
children who are In need, an in.
crease of more than 100000 ovel
their present coverage.
AAoeAACA PAOPOoCu CAldIA6C Ill tIlt
assistance provisions of the act
would increase the amount of Fed.
eral money available for old-agt
assistance. AS you probably know
the limit on Federal contributions Il
now SIS month to each person
aided, provided the State pays like
) amount. The amendment woulc
raise this figure to $40 a month anc
thus allow the States to liberaliz.
their payments to the needy agee
if they so desire, and to provide such
assistance to other deserving per
sons who are eligible, but who ar,
not receiving old-age assistance du,
to lack of State appropriations.
But the committee has proposed
, no change which would alter the
, relationship of Federal and STATE
governments in either public assist