Evening star., 1940-02-17
ormula Being Drawn
o Speed Libera|izing
Of JobI Insurance
Trade Board Seeking
Chonees Acceptable to
Labor and Employers
BY DON s. WARREN.

BY DON s. WARREN.
Proposals for revisions in the Nc
Gehee bill for liberalization Of the
Districts Unemployment Compensa-
ton Insurance Act will be completed
and submitted promptly to the House
District Committee, so as to avoid
any unnecessary delay in House
action on the measure, IT was indi-
Gated today.
When the House District Com
mittee last Monday agreed to with
hold action for time, 1t asked
those who sought the delay to
seek general agreement on any pro-
posed revisions which might be
offered. Board Of Trade officials
said they are striving to perfect pro-
posals which would be satisfactory
to labor spokesmen as well as to
the various business groups.
Board Explains Factors.
Meanwhile, further light was shed
today on employer experience rating
plans such as have gone into opera
ton as part Of the jobless insur-
ance programs Of four States and
provisions for which are embodied,
in varied form, in the laws of IS
other States, including the District
of Columbia. Experts at the Federal
Social Security Board prepared for
The Star brief explanation of some
phases of these plans, which is re-
ported later in this article.
uowS1,,c Nicfrtpt
are seeking to insert a definite new
experience rating plan in the Nc
Gehee bill, since it now contains a
clause merely calling for study of
the advisability of such system
On the other hand, the present Dis
trict act has a section providing a
plan which Is scheduled to go into
operation next January 1. Adopted
in the pioneer" days of jobless in
surance, this plan is not regarded
as satisfactory and efforts will be
made to perfect it by providing
an incentive, in the form Of differ
entail rates, for the employer who
achieves sterilization of his pay roll,
thereby offering greater economic
eCCuIlIy W Ills WOIkclS.
Shape Up New System.
Officials of business groups who
are developing proposed new rating
system for the District have not yet
perfected their proposals, but it is re-
ported certain principles are being
used as basis in the study, al
though as yet they have not been
adopted. These are:
That the rating system, and the
diferentials in pay roll taxes, would
be applied TO the individual employer
rather than to employers grouped
according to types of business
activity;
That there should be maximum
and minimum limits governing the
extent to which rate differentials
might be extended to employers ac-
cording to the measure of their un-
employment risks as shown by their
pay roll experiences. In other words,
If there were an employer with a
perfect" stability in his employ
ment, he would get the lowest rate
but would still be required to pay 4.
minimum. And the employer show
ing the most unstable employment
record would not be required to carry
100 per cent of the load he places
on the unemployment insurance
fund, but only q maximum rate.
Such q program IL suggested % a
recognition that there should be
some measure Of common cause or
interdependence among all employ
ers in the District insurance scheme;
That provision be inserted in the
plan to require the maintenance of
jobless insurance fund of at least
$4,000 900, out Of which to pay
claims for benefits. 1t is recalled
that spokesmen for both employers
and workers agreed at the recent
hearings on the McGehee bill that
for Washington a fund of 10,0OO 900
would be safe margin. Last year
benefit payments totaled but ST.
100000. Even under the proposed
expansion of benefit payments, as
outlined in the McGehee bill, it is
estimated that the total would not
60 above $2,400,000;
Would Change Tax Tempo.
That If economic conditions should
cause drains which brought the re-
serve below $4,000 900, there would
be some immediate increase in all
rates, so as to maintain its full
level. Also a suggestion is being
considered that If the benefit reserve
fund should mount above, say s12,-
000, 600, there could be a general re-
duction in pay roll taxes to keep
from piling up unneeded reserves.
Some experts insist such plan
would not require any higher maxi
mum pay roll tax rate than 81 per
cent, by reason of operation of the
proposed employer experience rat
ing system, but it is suggested that
the District Unemployment Com
pensation Commission should not be
barred from increasing rates above
that figure should possible emer-
gency conditions of unemployment
require such a step to maintain an
adequate benefit reserve.
The summary given The Star by
the Social Security Board experts
as to the employer experience rat
ing plans now in effect in the four
States, Indiana, South Dakota, Wis
consin and Nebraska, is as follows:
Under the experience rating
plans in these States a separate
account is maintained for each en-
ployer, to which account Is credited
all or the greater part of the employ
er's contributions and against which
are charged the benefits paid to his
former employees. Nebraska and
Wisconsin have an employer reserve
system-that is, system under
which all Of an employers con-
tributions are credited to his reserve
account. Under the Indiana and