Evening star., 1946-02-26
DR.. A|tmeyer Urges
Disability Insurance
In Security Program

Not more than 5 to 10 per cent o1
the workers disabled in accidents
are eligible for benefits under State
industrial compensation laws, DR.. A
j. Altmeyer, chairman of the Socia
Security Board estimated today ir
urging the House Ways and Means
Committee to broaden Federal so.
cial security to include disability
insurance.
Only a small percentage are in.
jured in their work, DR.. Altmeyel
explained, the rest are hurt at home
on the streets, in automobiles ano
otherwise, he said.
He suggested that the Federal Law
be amended to allow industrial wor.
ers and farmers to be insured
against total disability through acci.
dent or sickness. They would pay
their proportionate share of such in.
surance under his plan.
Cost Put at ~ of Income.
The cost of the insurance woulc
depend on the efficiency of admins.
tration and on the state of the labol
market, Dr. Altmeyer pointed out
The most reasonable estimate, HI
said, would place the cost at some.
thing under ! per cent of the man:
income.
Disability should extend beyonc
six months to be considered total
he added. Vocational rehabilitation
should be part of the program, he
suggested.
During the questioning of DR.. Alt
meyer, discussion of unemploy-
ment came up and the official tolo
the committee that in the last two
months the figure had risen to more
than 100000.
Representative Knutson, Repub-
lican, of Minnesota, asked why with
SO many people out of work, there
still was an insistent plea for help in
all classes of employment. Why is
the farmer unable to get help when
he is willing to pay $125 a month
room and board, Mr.. Knutson de-
manded.
Threat to Economy Seen,
DR.. Altmeyer said that was a mat
ter for the United States Employ
ment Service and the State Com
pensation Boards to answer, and he
suggested that the committee call
some of those officials.
Mr.. Knutson expressed the fear
that if the tendency continued "our
economy will go into tailspin."
Earlier in his testimony DR.. Alt
meyer advocated changes in the So
cial security law to raise most bene-
fit payments by $3.50 a month and
to increase coverage to include vir-
tually all the Nations workers.
Yesterday afternoon the COM
mittee heard R. T. Compton, rep
resenting the National Associa-
ton of Manufacturers, indorse the
plan to spread coverage to an addi-
tional 21,000,000 workers. Mr.
Compton, however, advocated that
the social security system be f.
nanced on pay-as-you-go basis,
by gradually increasing the amounts
paid in by employees and employers.
Asks Liberal Computing.
DR.. Altmeyer proposed a change in
the method of computing benefits so
that retired workers under the sys-
tenn would get 40 per cent of the
first $75 of average monthly salary
and 10 per cent of the remainder
based on a maximum average wage
Of $500. The present law provides
for payments of 40 per cent of the
first $50 and 10 per cent Of the re-
mainder, based on an average of
$3.50 month.
Under the liberalized method of
computation, DR.. Altmeyer pointed
out, most workers would get an ad-
ditional $3.50 a month when they
retire. A worker with an average
monthly wage of $500 now is entitled
TO $40 a month retirement benefits
when he reaches IS; under the pro-
posed change, he would get $3.50.