Evening star., 1940-01-30
surance program achieve five main


surance program achieve five mair
objectives:
First, they establish old-age
insurance now by commencing
monthly insurance payments in 1916
rather than in 1912 as the 1885 act
provided.
Second, they provide protection for
a greater proportion of the aged
population by extending the insur-
ance program to cover those who
were already more than IS years old
in 1885 when the original Social
Security Act was passed.
Third, they provide more nearly
adequate protection-larger monthly
insurance payments-for those most
likely to need it-those retiring in
the early years of the program S
operation, the relatively low-paid
wage earners, and aged workers with
wives and children dependent on
them.
Fourth, they extend the scope of
the insurance protection offered each
worker by providing for monthly
payments to his dependents - his
wife and children-in the event of
his death. All workers do not live
until the age of IS, or until they
retire. Many die in the prime of
life, cut down by accident or disease
Recognizing this clear fact, the
amendments changed the retirement
plan into a broad-scale insurance
plan for American families.
Fifth, they adapted the insurance
provisions more realistically to the
requirements of the chief unit of our
society, the family.
Some Typical Cases.
Let us take a few typical cases to
show how this amended old-age and
survivors insurance program works
The names 1 will mention do not
designate actual persons, for each
insured persons record is guarded
as confidential, yet the cases are
typical of those whose claims are
being received daily.
Joe Johnson, a file clerk, has been
earning $50 a month since 1886. Joe
became IS in October, 1899, and in
December found it necessary to re-
tire. He went to a field Office of
the Social Security Board and filed
his claim for old-age insurance.
Thursday morning, Joe and his wife
Emma, who is also IS, will receive
their first monthly checks-for a
total of $1,000. 1t will be hard for
Joe and his wife, used to an income
of $50 month, to get along on this
amount. But these payments repre-
sent security against want, to which
Joe is entitled as a matter of right.
Every American will in the future as
he has in the past make such pro-
vision for the rainy day as he can,
and as his own spirit of independ-
ence and self-reliance influences
him to do. But in the future, he
will be assured that the rainy day
will never find him wholly unpre-
pared.
Then there is the case of Mr..
Johnson, who has been the book
keeper for the automobile sales
agency for many years. He became
IS years old in January of 1888. He
is now 81 and is not able to work as
he once did. His wife and son per-
suaded him to retire at the first of
the year. His salary had been $160
a month. His monthly insurance
payment, calculated on his earnings,
will be $31 g. Mrs. johnson will not
be IS until August; when she reaches
that age her monthly benefit pay
ment will be 1881. In total, this
couple will receive each month
SAT 43, which when added to the in
come from their savings will enable
them to face the future without
fear of insecurity.
Another illustration is offered by
the case of Tom Richards. Tom, a
truck driver, died of pneumonia at
the age of 81, early this month. Tom
had been working fairly regularly
since he was %, but with a wife and
three children to support, he had
been able to save very little. At the
time of his death, his recorded earn
ings, as reported with their tax pay
ments by his employers, had aver
aged $100 a month since this insur-
ance program began January l, 1887
Under the original act, Toms widow
would have received one lump-sum
payment of $126. Toms last illness
and funeral expenses would have
consumed all of this and left nothing
for the support of his widow and
children. But, as result of the
amendments, Toms widow and chill
dren will receive $3.50 every month
until the children are old enough
to earn their own living. When his
widow reaches age IS, if she has not
remarked, she will receive $19.31 a
month as long as she lives.
Those, as I have said, are f1ctional
cases, showing you what typical
families will receive through old
400 and survivors insurance Rl1t