Evening star., 1948-06-06

to Congress followed recommends
tions of the Social Security Board
Congress cleared the way for &C.
q. ton on the extended coverage plan
last week by passing another socia.
security bill adding $4,000, 900 an
nually to the benefits received by
$500 900 persons who fall in the
categories of dependent children
the aged and the blind. A maxi
mum of $50 a month would be set
for each aged and blind person and
s27 for a dependent child.
A Recognized Problem
This, however, is far short OF Mr.
Truman's request that 20,000,00 ad-
ditional persons, including the self
employed, farm workers and house
hold workers, be included in the
program. That would bring the
total participants to around 5o,ooo,-
900. This legislation may not be
dealt with until next session.
1t has been recognized as prob
lem for several years. All the pres
ent projects for revision recognize
the inadequacy Of coverage. And
the inadequacy of benefits, set dur
ing depression days, have been
made glaringly apparent by the ad-
vance of prices. Monthly retire
ment benefits at the end Of 1941
averaged s25.
The most comprehensive program
for revision is that recommended
by the Advisory Council which has
been making a study at the request
of the Senate Finance Committee
It has found three major deficien-
cies in the present program:
l. Inadequate coverage. Only
about three in five jobs are covered
by the program.
2. Unduly restrictive eligibility re-
nuirements for older workers. Only
about one in five of those IS or ovel
are either insured or receiving bene'
fits under the program.
3. Inadequate benefits.
Measures to meet these deficien'
cies were set forth in the Advisory
Councils first report. A second re-
port is expected to be made shortly
recommending an extended disabl'
ity insurance program tied In with
the old-age and survivors insurance
The Presidents Proposals
1t Is elementary that the payment
of. greater benefits means the collec-
ton Of more taxes--more out OF the
pay envelope Of the empbye, more
from the employer. Mr.. Truman
made the point that now, when en-
ployment and earnings are at the
highest levels on record, is the time
for working people to earn protec-
ton against the economic risks OF
the future.
He called for an increase of so
per cent in the present average paid
retired workers. Whereas the CELL
ing on earnings now taxed for Social
Security purposes is $4,000 a year
under his plan it would be $4,000
The present annual maximum de-
duction from pay envelopes OF $3C
a year would be increased to s4S.
He recommended that the date
for increasing the tax rate from
per cent to IL per cent be moved
forward from January l, 1850, to
next January l. The maximum tax
therefore, would be increased from
s48 to $72.
In addition, he called for sweep
ing expansion of the coverage to
take in 20,000,000 more workers. The
number covered Is now about 3d.
100000. He also would provide pro-
lection against loss of earnings due
to disability of six months or more,
and he urged financial inducements
to the States to provide insurance
against loss of income during tenn
porary illness or disability.
The Council Looks Ahead
The Advisory Councils program
looks forward to the time when
virtually all persons in the United
+ States will have retirement or sur
! vivorship protection under the old
age and survivors insurance pro-
gram.
f. eff insurance benefits are of rea-
sonable amount" the council said,
"public assistance will then be nee
essary only for those aged persons
and survivors with unusual needs
and for the few who. for one reason
or another, have been unable to
earn insurance rights through work.
Under such conditions the Federal
expenditures for public assistance
can be reduced to small fraction
of its present amount"
The Social Security Act provides
for seven types of old-age and sur
pltOES UtIlcllto. ~ Vic WUl hC1 WIN
retires at IS; to the retired worker
who is IS or over and his wife (this
averaged s39 a month at the end
of 1946); to the workers widow at
65; to children under 18: to widows
with such children (the average
benefit for a widow with two chill
dren at the end Of 1946 was $48. .20) !;
to surviving dependent parents at
IS If there is no widow or child
entitled to benefits, and q lump
sum, payable on the death Of the
insured worker. If there are no
monthly. benefits payable.
That is the background of benefits.
The Advisory Council would ex-
tend the coverage to practically
every one who works for a living,
including the self-employed, farm
workers and household workers,
Federal retirement systems and the
railroad retirement system would be
adjusted so that those systems and
the Old age and survivors insurance
combined would at least equal the