Evening star., 1948-06-06

VI ClefByulcIl dllu AAciuSSA0 VA ~
Egious orders, who would remain
exempt from coverage, but the laity
in religious organizations and others
in nonprofit organizations would be
covered on the same basis as all
others. This was one of two points
where the Advisory Council was not
unanimous. Some members pre-
| ferred coverage for nonprofit
groups on an elective basis.
To provide more adequate bene-
fits at once, the Advisory Council
would eliminate the present method
by which benefits are computed
now. This is a basic amount which
is increased by per cent for each
year in which the wage Garner re-
ceives 5000 or more in wages. Full
rate benefits under this system
would not be paid until after 1880.
The Advisory Council proposes
instead that the primary benefit
that of the single wage Garner who
retires at 65-should be so per cent
of the first s75 of the average
monthly wage plus is per cent OF
the remainder up to maximum of
$3.50 month.
Under the present Law the worker
averaging $3.50 a month since the
inception of the system in 1887
would, on reaching IS next January
/, get $44.80 a month, the maximum.
Under the Advisory Councils pro-
posal he would get s63.75.
Benefits, however, would be cal
culated not on top average of
$3.50 a month, as at present, but of
$3.50, or an increase from $4,000 a
year to $4,000. This was the second
point on which the Advisory Coun-
Gil was not unanimous. There was
sentiment for retaining the present
$4,000 tops and also for raising the
maximum to $4,000.
Important Considerations
The difficulty with which older
workers face in meeting the pres
ent eligibility requirements is the
major reason, the Advisory Council
points out, for the fact that the
old-age and survivors insurance
program has been slow in replacing
public assistance in meeting income
loss in old age.
Unless the present provisions are
modified, all persons covered for the
first time in January. 1949. who are
less than 81 years old, would have
to work 10 years IN covered employ
ment before Fbeccfning eligible for
retirement, benefits. Even those who
are IS would need six more years
of steady employment before receiv-
ing benefits.
These considerations become of
great Importance as the coverage is
broadened.
The Advisory Council, therefore,
recommends new start" All
workers reaching 81 before the mid
die Of 1949 would be insured with
the minimum of six quarters of COW
erage, just as the workers of the
same age in 1887, when the program
was started, were insured. The pres
ent minimum benefit, now $10 would
be raised to $40
The council points out that in
contributory social insurance sys-
tenn as in a private pension plan,
workers already old when the pro-
gram is. started should have their
past service taken into account even
If 1t has to be done presumptively.
Another liberalization the Ad-
vistory Council would make would be
"a modification of the work clause"
At present, if retired beneficiary
earns SIS month or more in COW
cred employment his benefits are
suspended.
Lower Benefit Age
Instead, the Advisory Council
would permit him to earn $35
month and If he goes over that, to
dock his benefit payment by an
equal amount. In addition, full
benefits would be paid to those aged
10 or more, regardless of their
earnings.
Under the program recommended
by the President the beneficiary
would be permitted to earn up to
$40 month before losing his bene-
fits.
In both the plans of the Presi-
dent and of the Advisory Council
women entitled to benefits on ac-
count of age would receive them at
so instead of 65.
The Advisory Council recon-
mends also that benefits would be
available to dependents of insured
women on the same basis as for
insured men. Lump-sum benefits to
meet special expenses would be
payable on the death of every in
sured worker regardless of whether
monthly benefits are Immediately
payable.
Benefits to the first surviving
child and to surviving dependent
parents would be three -fourths of
the basic benefit rather than one
half, as at present.
To finance these enlarged bene-
fits, the Advisory Council would
advance the contribution rate from
l per cent, as at present, to IL per
cent, paid by both employe and en-
ployer when the enlarged plan be-
comes effective. The next stepup
to 2 per cent would come when the
11z per cent rate. plus the income
from the trust fund, would be
insufficient to meet outlays.
Rather than go above per cent,
the Advisory Council contemplates
Government contributions from
general taxes to balance income
with expenditures.
The Advisory Council was ap-