The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1939-11-09
I1nportdnt Changes
Continued From Page One)

however, the cOSC. Inc WOrkeT anu
his employer each pay percentage of
the workers wage to build up fund
out of which old age benefits are to
be paid. So our study, and the Ad-
visory Councils study, were largely
process of estimating the size and
potentialities Of that fund, now and
for the time to come, in order to see
how it could be used for the greatest
good of the greatest number.
eve wanted to do three things es-
pecially:
"a. Provide an old age income which
would have some relation to the work
er's average wage in his working
years and thus to some extent COM
pensate him for his wage loss when
he retired, following the mehonored
practice and principles of workmens
compensation.
"2. Protect the workers family as
we'll as himself.
"3. Put the purchasing power of
the old age insurance taxes to work
as soon as possible.
"You will recall last year that one
of your delegates asked some ques-
tions about this 00,0OO,OO0 re-
serve fund, and / am glad to say that
that problem has been solved in the
process of working out a new and
| more effective pattern of benefits. /
see the gentleman who interrogated
me last year smiling. / think he
made a point last year.
| FOrty-Five Million Persons Eligible
For Social Security Benefits
"Our actuaries and statisticians
found formula which gives us at
least long start toward our goal
If the changes do not go as far as we
could wish, it is important to remem-
Der that it is better to be safe than
to be sorry. We have here a huge
insurance problem. To operate any
insurance system with 45 million pc.
tential beneficiaries to whom the gov
ernment itself is responsible needs al
the wisdom and prudence we can com.
mand. Thanks to the careful con.
sideration of the Committees of Con.
gress and all concerned in preparing
the amendments, it was possible tc
advance the date Of benefit payments
to iberalize the benefits in the early
years, and to broaden the reach of the
benefits to include the workers fami
lies. At the same time it was pos
sible to avoid an increase in taxes
all these changes without endanger
ing the financial soundness of the svs
TEN.
Payment of Monthly Insurance
Benefits Begins Jan. |, 1910
"The first change you will feel il
the old-age insurance systen1-tht
first thing that will come home t,
many of your members, is the new
date for the beginning of MONTH,
benefits-January /, 1910, instead O
January /, 1912
"Under the old law, the most tha
workers becoming 65 years of ag,
prior to January 1, 1910, could hav
received was lump sum equal to
percentage of their total pay from
the last day of December, 1886, t.
the day they became 65 years Of age
Now they may receive monthly bene
, fits after they are 65, or at any late
date when they retire, provided the
have earned as much as $50 a quar-
ter in each of any six calendar quar-
ters sinca 1886 This is true even
they are now past G5 and have al
ready received lump-sum paymen,
The one stipulation is that wage
:, earned after age 65, to be counted to
ward oldage insurance benefits, mus
haze been earned in 1889 or later
Thus a worker who was 65 years O
age before 1889 and is still at wor
: can qualify for monthly benefits i
the spring Of 1870, if he has earne
as much as $50 in each quarter O
1899 and the first two quarters o
1910.
"Thc amount of monthly benefit
will depend upon the workers pas
wages, but not as under the old law
5 on his total wages. 1t will be figure
on his average monthly wage. Thi
results in considerable increase i
, the monthly benefits to workers nov
. of middle age and over. 1t brings
b in 1910, a monthly benefit Of $500
to the retired worker who has haC
let US say, an average wage of SIS
4 month since 1886, if he is single
. If he is married, there are additional
benefits for his family.
Benefits Payable to Workers
Dependents
THAT brings us to the most funda
= mental change in the Act-DrOyiSiO