Evening star., 1940-01-07
Fcurity Investment
y Thousands 1920 Pct.
Chapter in Actuarial History Begins
|lary With First of Old.Age
Retirement Payments
r, P,cL1
Br Richard l.. Stokes

on the latter's wages until the end of
1942. In l943 the tax will amount to 2
per cent each; in 1916 to 2h per cent
each and in 1949 to 8 per cent each.
Benefits were virtually doubled, through
their extension to wives more than IS
years old, widows of all ages and de-
pendent children and parents.
The program is lauded as being highly
democratic, in that both rich and poor
may become policy holders. The lowest
candidate admissible is a worker who has
earned $500 in the last i8 months A
corporation president at 100000 a year
is also eligible, but may be insured only
on the first $4,000 of his salary. If he
retired the first of this year at the age
of IS he would now be entitled, what
ever his other sources of income. to a
monthly benefit of $41.20, plus $2060 for
his wife, if also past IS, and $20.60 each
for two dependent children; or theo-
retical monthly total of $104. But here
a provision of the law would step in,
ordaining that the aggregate benefits of
any family group shall not exceed $85.
1t is also ordered that no benefit may
be less than $40 a month.
Wide Range of Workers.
The system covers virtually all en-
ployes in commerce and industry, and
includes those with jobs in factories,
shops, mines, mills, stores, offices, Amer
lean ships, State and national banks,
building and loan associations and places
of business in general. Cooks maids,
buffers, chauffeurs and gardeners are
eligible if they are employed by hotels,
restaurants, service stations or other
commercial and industrial establish
ments. But the act admits as insurable
entities only such offices or industrial
shops as employ eight or more persons.
A new departure under the amended
act is that persons over IS need not re-
tire unless they wish, but may continue
earning credits toward the benefits as
long as they care to work. Thus man
Is years old at present who continues to
work until he is IS would boost his bene-
fit payments, if earning $3.50 month,
from SAL 20 to $500. No benefits are
payable until he actually retires.
ments is being agitated and will depend
partly on the pressure brought upon Con-
gresS by old-age pension movements.
Among minor criticisms brought against
the act is that it makes no provision for
the insurance of workers who become
permanently disabled, and that it takes
no account of the fact that wives on an
average are 10 years younger than their
husbands. Under the present law, if a
man retireS at IS, his wife as general
thing must wait until he is rs before she
also is eligible for benefit payments.
Many Millions Excluded.
The principal criticism is that the law
excludes from its operations some 33,7O0,-
900 men and women of wage levels at
which Government insurance is crying
need These include 100000 workers in
hospitals, churches, philanthropic organ
izations and other non-profit institutions;
3500,000 agricultural laborers, 2,500000
domestic servants in private homes, g.
100000 public employees of State and local
agencies, including school teachers; T.
000 900 operators who own their own
small farms, 100000 unpaid family
workers in agriculture, 4,500,000 persons
who are self-employed in their own shops
or Offices, 4,500,000 workers under relief
programs and 100000 casual employees.
Railway workers and Federal employees
are also excluded, but both already have
their retirement pension systems.
Complaint has been made that work.
ers in a shop employing only seven per-
sons cannot obtain Federal insurance,
while those in a plant with only one
more person employed are eligible.
Further outcry has been raised on the
ground that trades in which employment
is steady, such as printing and photo
engraving, are taxed to provide insur-
ance benefits in occupations less stable.
To such critics spokesmen for the So
cial Security Board reply that Govern
ment insurance is still in the expert
mental stage, and that studies are con-
stantly being made for the purpose of
detecting and remedying any injustices
that may come to light.
Quite apart from its insurance pro-
gram, the Social Security Board, in con-
junction with all the States and Alaska,
Hawaii and the District of Columbia,
conducts two other activities in which
the benefciaries are required to pay no
fees or premiums One is a Bureau of
Public Assistance, which gives aid to the
needy aged, the blind and children
without support The other is the Bu-
reau of Employment Security, which
provides unemployment compensation.
Matches State Grants.
Dollar for dollar, the Bureau of Public
Assistances matches grants made by the
States, which range from $3.50 month
in Arkansas to SIG in California, giving
other. State and Federal grants COM
bined in Missouri are 1884; in Okla
homa, Sl7.59; in Texas, 1851; in Illinois,
$3.50, and in New York, $2450. Missouri
has on its rolls $1,000 blind and needy
aged persons and dependent children;
Oklahoma. 70,200; Texas, 121000; Illi-
nois, 5000, and New York, 10000.
States and Federal Government to-
gether throughout the country place a
tax of approximately per cent on the
total pay rolls of industry and COM
merce for the purpose of providing un-
employment insurance. The aim in gen.
eral is to provide annually for each
person out of work through no fault of
his own payment of SIS week for
Is weeks. All administrative expenses