Evening star., 1940-02-21
LiberaIized Benefits
For Unemployed
Asked by A|tmeyer
Week Waiting Period
And $40 Minimum
Payments Fuvored
By the Associated Press.

Arthur J. Altmeyer, Social Security
Board chairman, declared today It
was imperative that the States over
ham and liberalize their unemploys
mont insurance systems. :.
Mr.. Altmeyer recommended that
the waiting period for benefits be
cut to one week, that payments be
made for at least Is weeks a year,
and that States with large surplus
insurance funds pay two-thirds of
the weekly wage-at least $40.
He made public his views in the
Social Security Bulletin amplifying
the boards stand previously outlined
in its annual report to Congress.
Mr.. Altmeyer also proposed that
the minimum benefits paid by the
States should be at least IS a week,
that partial unemployment benefits
should be paid in all States-only
five have them now-and that eligi-
bility regulations should be simpi-
fed with q view to more prompt
payment.
Immediate Action Asked.
His suggestions are not to be con-
sidered the ideal for jobless insur-
ance standards, he said, but some
thing to be given immediate con-
sideration.
States with SUFFICIENT reserves and
current income (from social security
taxes may well consider making
their benefits still more adequate,
he added.
Mr.. Atmeyer explained that the
State plans in the beginning of the
program were kept on a conserva-
tive basis % insure the solvency of
State funds.
Benefits are financed by a tax on
employers of eight or more per-
sons. On the District the plan
covers employers of one or more.)
The Federal Government pays ad-
ministratise costs and requires the
States to conform to certain STAN
dards. Some States have no fixed
minimum, and in other it is as low as
$1.50 or 81 week.
The duration of payments ranges
from IA to Is weeks in general, al
though few States pay as long as
20 and rs weeks
The accumulation of large surplus
funds has prompted agitation for
higher weekly benefits instead Of
lower taxes. Mr.. Altmeyer argued
that if the surpluses were used as an
argument for tax reduction instead
of hberalized benefits. "the very pur-
pose Of the unemployment compen-
sation system would be nullified.
Liberalization of benefits pay
ments is necessary, the article stated.
for the reason that it would result
in more nearly adequate payments
to individual wage earners and also
would have the desirable economic
effect of releasing larger total dis
bursements at the downswing Of a
business cycle.
Would Shorten Waiting Period.
Discussing the waiting period. the
article points out that the two-week
waiting period now used in most
States, means that the worker re-
ceives his first payment about the
middle of the fourth week of un-
employment, the third week being
the first compensate" period
This, It is stated, Is q longer period
than is required by any foreign un-
employment insurance law.
The weekly benefit rate, the a4ticle
stated, should reflect full-time earn
ings rather than earnings which are
low because Of past unemployment.
Mr.. Altmeyer called attention to
the fact that certain formulas for
determining the individual wage
basis now In use in q number of
States definitely tend to understate
the workers earnings for . week
of full employment" and that this
tendency should b eogrected...-. i.