The people's voice. [volume] (Helena, Mont.) 1939-1969, 1944-06-09

WiuOW VI young Culiu, W. n iuihl
sum death payment to designated re
atives in the event no survivors bene
fits are Immediately payable.
Under the present system, benefit
are computed ON the basis of the aver
age monthly wage Of the wage Garner
This is a straight average computes
throughout the wage earner's lifetime
and includes working periods and non
working periods. The primary bene
fit is equal to 40 per cent of the
first $50 of the average monthly wage
plus 10 per cent of the next 5000, anC
ian increment of 1 per cent for eacf
year in which wages of 5000 or more
is paid to the individual. This pri
mary insurance benefit is the benefit
to the aged beneficiary. Survivors
and dependents benefits are frac
ton of this gure-three-fourths OF
one-half. The maximum benefits pay
able on the basis of an individuals
wages is the least of $85 per month
cent of the average monthly wage
The minimum primary benefit Is $40
This benefit formula has resulted
in strikingly low benefits. Compare
son with other payments distributed
on a needs basis confirms the fact
that the insurance program affords
benefits so low that they are frequent
ly exceeded by the relief allowances
which are admittedly below subsist-
ence standards.
The average primary benefit for re-
tired workers age IS or over was
$22.S7 per month for June, 1912. This
is obviously less than sufficient for
even the barest subsistence level.
For the same month, recipients of old
age assistance (persons without wage
credits and insurance status, who
have not paid social security taxes) /,
averaged $21.S3 per month.
AT the end of June, 1943, the assets
of the Old Age and Survivors Insur-
ance Fund amounted to $4,268, 200.
In addition, the railroad retirement
account had to its credit $194,896,000.
The Old Age and Survivors Benefit
Provisions of the Bill
l. Coverage: The bill proposes sub
stantially to meet the need for extern
sion of coverage. 1t proposes to in
clude agricultural workers, domestic
servants, employees of non-profit or
CARNATIONS and the self-employed. 1t
proposes that the market value of the
services of the self-employed take the
place of wages for computation of
their taxes and benefits.
The bill removes substantially all
exclusions except for government en-
ployees. 1t would authorize the So
cial Security Board to enter into COM
pacts with states or with political sub
divisions for the coverage of workers
by such government bodies.
The present coverage under the Civil
Service Retirement Program will give
no protection to the very large num-
Der of wartime federal employees who
will have less than five years service
with the government. Less than half
of the employees of state and local
governments have any protection in
any retirement system.
2. Benefits: The bill proposes to in
crease maximum benefits from $85 to
$120 monthly, or 500 of average
wage, whichever is less. It
to increase minimum bene-
fits from $40 to 500 monthly.
The bill further proposes an import
ant modification of the benefit formu-
la so as to make possible increased
benefits. Under the existing formula,
a worker receiving $125 month, who
had 10 years coverage, would receive
S3025 per month. Under the bill, the
same worker would receive $3.50 per
month
We approve the extension of cover
age and increase in benefits proposed
and hail the proposal as an important
advance in the development of a
sound social security system in our