Evening star., 1949-03-13


plan toward which some 10000.
00n Americans already have con.
tributed something by a per cent
payroll deduction.
Now. on top of the Truman plar
to extend this pension program as
part of the broadened social secur.
ity system, is the veterans pension
plan suddenly rammed through
the House Veterans Committee by
its Dixiecrat chairman, Repre-
sentative Rankin of Mississippi.
These two proposals. though not
directly linked, make this time
to consider the measures alone
with the whole theory of old-age
pensions and the general pension
situation today.
This was polntedly shown
by the recent testimony of Social
Security Commissioner Arthur :J
Altmeyer, He said payroll taxes
divided evenly on employees and
employers might ultimately
reach 10 per cent. This figure
would include deductions for the
proposed new health insurance
plan so bitterly opposed by the
American Medical Association. 1t
would be on top of present income
tax deductions.
A Republican, however, guessed
the figure would reach 20 per cent
rather than 10. 1t is practically
impossible to know what the fig
ure may come to or how much OF
the Federal budget may become
involved in such schemes-espe-
cially if the veterans pension plan
should become law.
Advised as Essential
Expenditures of the Federal
Government today are almost 2C
per cent of the entire gross ma
tional productive sum of every
thing the Nation produces in goods
and services. There obviously is
q point where any system of So
cial welfare benefits, if piled toe
heavily on other taxes, tends tc
defeat it's own ends.
An Advisory Council on Social
Security, composed of II business
labor and educational leaders. put
the theory of pensions this way in
a report to Congress last Decem-
ber 81:
Opportunity for the individual
to secure protection for himself
and his family against the eco
nomic hazards of old age and
death is essential to the sustained
welfare, freedom and dignity Of
the American citizen.
For some, such protection can
be gained through individual saw
ings and other private arrange
ments. For others, such arrange
ments are inadequate or too un-
certain.
Since the interest of the whole
Nation is involved, the people,
using the Government as the
agency for their cooperation
should make sure that all members
of the community have at least a
basic measure of protection
against the major hazards of old
age and death"
Some Inadequately Covered
These are the facts today:
/. About 2,300,000a Americans
retired workers over IS. wives OF
retired workers themselves IS or
more) widows with young chill
dren, aged dependent parents and
children of deceased or retired
workers are now DRAWN
monthly benefits from the Federal
old age and survivors insurance
fund. Nearly 100000 other
workers still on the job and not
yet IS have enough wage credits
Chased on pay deductions) to re-
tire and receive maximum bene-
fits when they are IS. About 49,
100000 persons have some credits
but millions of the credits are
negligible because the workers
have for only short periods held
Jobs where pay deductions were
made.
. About 3,250,000 veterans and
dependents of deceased veterans
gre drawing pensions or compen-
cation from the Government. Most
Ore for disabilities rather than age
snd the figures cannot be sepa-
rated. But, in general these pay
n1ents are form of pension.
Z 3. Nearly 100000 retired Gov
ernment employees and theil
widows and dependent children
are drawing pensions. About
100000 Government workers are
covered by the Federal employees
pension scheme and have 6 pei
cent of their pay deducted to &C
Into the pension fund.
States Have Plans
{ 4. About 100000 State anc
local government employees are
covered by pension schemes which
vary widely. Almost as many
other such workers are not GOV.
cred. Most of the schemes were
found to be inadequate in the
AGvisory Councils survey.
I 5. Private retirement scheme.
now are in effect in about 5000
business firms and about 350.00(
persons are drawing pensions
Through such programs.
( Now the Truman administra.
tion is proposing to broaden the
Federal old-age pension plan tt
cover these groups: Farmers ane
other self employed persons, agri'
cultural labor, domestic servants
workers in non-profit institutions
such as hospitals and churches
Federal employees not covered il
the present civil service program
State and local government EN-.
sployes provided the State makes
"a compact with the Federal Gov.
Eernment for such a PLAN, Amer
:icans working outside the United
Estates for American firms, civilian
semployes in military post ex-