Evening star., 1946-04-07
New Social Security Plan
Held Aid to i. S. Worker
Broadening of Coverage Would Bring Additional
Benefits, With Provision Made to Maintain
Present Civil Service Retirement Intact
By Robert J. Myers


Unlike the pioneers who staked out
the lands of our country, most of lis
today feel that we cannot just walk out
of job and travel beyond the horizon.
Indeed, right now, we probably want to
sit tight lest our jobs walk out on us.
The reason, quite simply, rests in the
fact that, as industries and cities grow,
our dependence on jobs must grow.
And when jobs disappear or we grow too
old or sick to hold them or finally die
in harness, all family income often stops.
Modern countries have tried to con-
quer this spectre of wage loss and have
generally developed some scheme of So
cial insurance. In the United States,
the Social Security Act was passed in
1885 to provide old-age retirement pay
ments. In 1899 benefits for wives, wild
ows and children were added.
From the beginning, Federal workers
were left out of our social security
plan probably because it was thought
the existing civil service retirement pro-
gram and other smaller systems ade-
quately insured Uncle Sans employees.
This reason, incidentally, didn't hold for
private firms with pension schemes. The
exclusion is also traceable to the strong,
organized effort of several employe
groups which distrusted the new pro-
gram.
But II the coverage exemption seemed
reasonable once, it is hardly so today.
q Cd of
under each system and any review of the
amount of shifting between Government
and private jobs will bring to light the
tremendous loss in present and future
protection which Government employees
suffer. Not only are Federal workers
without family and survivor insurance,
but they invariably decrease their pen
sion pay whenever they venture into
private industry since they get no civil
service credit for non-G Government work.
Shifting Between Jobs.
These problems are not new. The
condition, however, is aggravated today
in view of the extensive voluntary and
compulsory movement of old-time Fed
eral employees and war appointees back
to industry and the civil service hiring
OF veterans with social security credits.
The extent of premature civil service
resignation can be realized most effec-
lively by this contrast; up to June 80,
1910, five times as many employees had
left as had retired from service. Since
that date, the figure has probably
doubled. In 1943 refunds were paid to
over 100000 individuals, in 1914 to over
100000, and during 1945 to almost
100000. Total designations substan-
TALLY exceeded actual refund payments.
Since refunds are now generally avail
able only to those with less than five
years service, it can be seen how many
civil servants are only transient workers,
as far the the Government is concerned,
netting virtually nothing from the re-
tirement system and losing out under
the general social security plan because
they accepted essential Federal jobs.
The search for solution has in gen.
eral not come from employe groups
whose existing vested interests have ap-
parently blinded them to the benefits
in actual cash-of coordination with
our national social security law. They
have argued that the civil service plan
must be solely in the hands of the
Civil Service Commission and must not
be tampered with by any other agency,
such as the Social Security Board, lest
1t be mereilessly swallowed up. This
close-the-lid approach has so far ef-
fectively killed any thoroughgoing i'm
provement.
Hearings Are Started.
The Social Security Board has urged
and planned coordination apparently
without great success at convincing the
above groups. The most recent impor-
tant recommendation has come from the
impartial technical staff to the House
Ways and Means Committee, now study
ing amendments to the Society Secur-
ity Act. It's report, Issues in Social
Security" Gnade pursuant to H. r. "a.
Seventy-ninth Congress, first session.
contains proposal which has laid the
matter bare and thrown it directly to
the peope involved: The civil service
workers and their representatives in
Congress.
On February 25 the Ways and Means
Committee began hearings on proposals
to extend the Social Security Act. 1t
will consider changes both as to coverage
to include all presently noncovered
groups Gncluding Federal workers. and
as to benefits Ito add disability benefits,
more generous benefit formula, and
lower retirement age for women.
The report of the technical staff en-
phaSizes that, regardless of the means
adopted for co-Qrdination, the civil
service retirement plan must continue
as an independent system. 1t believes
this is essential for employe moral and
efficiency and states, however, that the
Civil Service Commission, which has the
interests of Government employees at
heart, should run it. This strong declar-
alton should allay the fears of employe
groups that coordination must newt
ably bring only the social security "foor
of protection" and the consequent loss
of all other benefits.
The suggestion that survivor Or other
benefits featured in the Social Security
Act could be added to the Federal re-
tirement plan, rendering any merger un-
necessary, is answered by the fact that
this supplement would be only partial
solution. The report points ou. that
adding benefits would not meet the far
more important problem of breaks in
protection and reduced benefits in some
cases or overlapping and duplicating
benefits in other cases.
Notifications Suggested.