Evening star., 1945-08-12

4O,UO0,OO0 people are insured under the
Federal system of old-age survivors
insurance. They have credits toward
old-age benefits. If they should die,
monthly benefits or lump sum would
be payable to survivors named in the
law. Their survivor insurance alone
represents $50000, 100000 in family in
surance protection. The amounts of re-
tirement benefits depend on workers
whole wage record at the time of retire.
ment-at or after 65 years of age-and,
OF course, on whether he has been in
covered" employment. Additional mil
lions of workers have some credits to-
ward benefits. 1t is estimated that in
all more than 100000, about two
thirds OF the population aged IA and
over, had credits under the system by
the middle of July. BY that time bene-
fits totaling more than s23,O00,OO0 a
month were in force for 1,35O,0O0 per-
sons. These included about 10000 old
people-workers, their wives or widows,
aged parents of deceased workers who
left no widow or child; $4,000 children
of deceased OR retired workers, and 145,-
600 widows who have the child or chill
dren of deceased worker in their care.
War Jobs Cut Costs.
About 100000 workers have wage
credits under the Federal-State system
of unemployment insurance that will
qualify them for benefits if they are
thrown out of work involuntarily and
are unemployed Additional millions
have credits toward benefits. BY jan
uary, 1888, nearly half the States had
begun paying unemployment benefits
under the act. From that time until
June, 1945, $4,000, 100000 has been paid
out in unemployment insurance. The
average weekly number of workers draw
ing unemployment compensation
dropped from the top weekly total of
1853, ,566 in June, 1940 to the low point
Of 56,354 in November, 1943. Nearly half
of those who filed claims in 1943 found
other jobs or were disqualified before
receiving any benefits. That shows clear
ly what the wartime full employment
means to the system. Full employment
in the postwar period, if it can be had,
will mean the same thing.
Mention has been made of groups ex-
cluded from the old-age and survivors
insurance system and unemployment
insurance. Those covered" are workers
in private business and industry-fac-
tories, shops, mills mines, stores, banks.
etc. The Social Security Board, now
headed by A. j. Altmeyer-who was
member of the original board 10 years
ago, when the chairman was John G.
Winant, Ambassador to Great Britain
has recommended the system be EXTEND
ed to cover all groups now excluded.
How much can family receive under
the old-age and survivors insurance pro-
gram? Never more than $85 month
on one workers account, nor more than
twice the workers benefit. The total
amount payable to a widow and two
young children frequently will run from
$1,000 to $4,000 over period of years.
The funds for this particular kind of
insurance are obtained by a payroll tax
levied by the Federal Government. This
tax is in reality premium paid for
the insurance by the employee, the tax
being per cent of the wages Cup to So
600 year,. A similar sum is paid into
the fund by the employer The trust
fund so amassed had reached in June,
l945, to $6,6l3, 100000. Interest to June
80 amounted to S528, 8,50O00O.
Unemployment Benefits Low.
Unemployment insurance laws were
particularly byproduct of the great de-
preston. The system is closely tied in
with public employment services, and
these services keep workers in touch with
jobs, while the insurance payments tide
the workers over periods of unemploy-
ment.
The amount which an unemployed
worker can receive, under the system, is
generally about half his weekly wage.
But there is top limit no matter how
much he may have earned. Today only
six States have maximum rates of s24
to S2S including allowances for depend
ents. Thirty-five States have maximums
ranging from SIG to $21, and 10 States
d Il.
In order to be eligible for unemploy-
ment compensation worker must have
recently worked in covered" employ
ment. He must be unemployed and he
must be able and willing to work and
available for work. A worker is dis
qualified who quits his job voluntarily
without good cause, who loses his job
for misconduct connected with his work,
or refuses suitable work The number
of weeks he may receive unemployment
compensation are fixed by the State
laws. Thirty-seven States pay benefits
for more than 16 weeks, and II pay for
between 81 and 26 weeks Almost ST.
000,000,000 are available for paying
benefits from the combined State un-
employment compensation trust funds.
"The public assistance" part of the
security system, is distinct from the in
surance features OF the program. It has
been described as society's way of pro-
viding financial aid through Govern
ment units for those who are otherwise
unable to provide the essentials of life
for themselves. The payments are by
no means small when taken collectively.
For example, in May, 1945, total pay
ments approximated 100000 900 and
went to 100000 persons. They are the
aged who cannot qualify under the old
age and survivors insurance-and who
must have additional means to live, de-
pendent. children and the blind-and
then there are those labeled general
assistance"
In 10 years the country has made long
strides toward an adequate social Sc
curity system. It has learned lot
Originally the system was criticized as