The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1939-09-21
INCREASING OLD.AGE INSURANCE

THE old-age benefit provisions of the Social Sc
curity Act were drafted under the shadow of
fear of the courts because of the constitutionaty
issue on the one hand and on the other the hand-
cap of commercial insurance principles due to our
lack of experience with social insurance. Old-age
benefits for self-dependent workers were limited
by the idea that contributions constituted kind
of savings fund which must be returned to the
worker.
The purpose of social security, however, is to
give these wage-earners the maximum security
against the ending of producing power either by
death or old age. Security to the worker means
provisions against dependency for himself and
those whom he supports. i.. ,.a,el.,,,,
The original act provided for workers reaching
the age of IS monthly benefit payments related to
the contributions paid on their behalf, or lump
sum payments upon the death of workers. These
provisions fell far short of security for workers.
Amendments adopted at the close of the last ses-
sion of Congress constitute real additions to Sc
curity and notable progress toward social insur-
ance. Payment of monthly benefits is moved UP
two years Should an insured worker die before
reaching IS, his widow will be entitled to three
fourths of his old age benefit plus allowance for
each dependent chd-an amount equal to one
half of the primary insurance OF the person on
whom it was dependent. When the wage-earner
reaches 65 years of age he is entitled to monthly
benefits which will range from $40 to $85 monthly
as average monthly wages shall determine. A mar
ried man will receive a larger monthly benefit than
an unmarried Inan-provided his wife does not
draw an Old-aSe DenenC In nef own TlSnJ wages
shall be all remuneration in covered industries un-
der $4,000 except any calendar quarter in which
wages fall below $50 and primary benefit shall con-
sst of 40 per cent of average monthly wages not
exceeding $50 plus 40 per cent of average wages
up to 5000 increased by per cent of the above
amount for each year of insured work.
Benefits payable will not provide a luxury
standard of living but they will be protection
against dependency.
Contributions paid for od-age insurance will
go into on Old-Age and Survivors Insurance Fund
in the United States Treasury to be managed by
a Board of Trustees.
Equally important for social security is the re,
qurement that employers must after December
81, 1939 furnish employees with written state
ments showing wages paid each employee the
names of employers and employees, the period COW
cred by the statement and total wages paid Pen
atty for each failure to comply with this require
ment is subject to civil penalty of not more than
five dollars.
The constructive progress made through these
amendments was made possible by the work of
the Advisory Commission which studied the field
of old-age insurance and recommended changes.
The result will be constructive gain-not merely
pleasant promises The technical nature of Social
Security makes the advice of advisory commits
sons most helpful to the legislative group and es-
sential to longtime planning