Evening star., 1939-08-27

counted under both laws during the
period he had been paying pay roll
taxes.
That would mean that the widow
OF a worker who died In the early
years OF the plan would receive a
comparatively small amount of cash.
perhaps barely enough to cover her
husbands funeral expenses, If that,
In the later years Of the plan these
lump-sum payments could pile up
to become as high as 5000 or Sc 900
cash to one estate, which would be
a terrific drain on the Treasury
with the system in full swing.
Lump Sum Benefits Out.
The new law abolishes lump-sum
death benefits, except a funeral
payment" of six times the base
monthly annuity when a worker
leaves no widow, children or de-
pendent parents entitled to annu-
tiles.
The basic insurance" plan is de-
signed to support the family of a
worker who dies until his children
are grown, so they no longer need
the care of their mother and are out
of school. After that it is presumed
that she can support herself or be
supported by her grown children
until she is 65, when annuity pay
ments are resumed.
Contrast with the comparatively
paltry lump sum that the old law
would have yielded (31a per cent of
total salary drawn while paying paw
roll taxes) the following amounts
which your family would collect to-
morrow in event of its breadwinner's
death:
The system will have been in ef-
feet three years on January ! next.
On that date, the widow of a tax
payer who had been earning 500
month, If she had one child, would
draw a pension of $32l9 a month
until the child was l8; if two chill
dren, s4507.
If she was childless, but IS or
over, she would draw 1891 a month
for life. A single child or a depend
ent parent of the same man would
draw $l288 month.
At the end of 10 years. the widow
with one minor child would draw
$34.88; 65-year-old widow would
draw $20.63: the dependent parent
or orphan child, $l375.
Participation Compulsory.
No earnings over $4,000 a year
$3.50 a month"; are counted in this
system, either for taxing or an
nuity payments. If the maximum"
worker, who earns $3.50 a month,
dies on next January / after pay
ing pay roll taxes for three years.
his widow with minor child would
draw S5l so a month until the child
was ID; If the death took place after
10 tax-paying years, her annuity
would be s55; after 20 years, $50;
after 40 years, $40.
A widow over IS of a S25O-a-
month Garner would draw $1,000 a
month after three years; $3l so after
five years; $33 after 10. Dependent
parents or each minor child (rate
OF one-half the base annuity
would draw $206 next January; s2l
in five years; S22 in 10 years.
In short, if you are one of the
$4,000 900 employees of a non-exempt
industry, your Government has made
it the law that you chip in each
pay day to an insurance fund which
will enable you to quit, take it easy
and leave your job open for some
younger man when you reach 65-
and, If you don't reach IS, the same
ante takes care of your family
If, when you die, the age of your
children or your widow is such as
to indicate they cannot take care
of themselves.
It's compulsory-but it's some
thing any man should be glad to
do-unless he thinks the trust fund
OF his insurance company" is un-
sound. Which is still another story.
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