Evening star., 1950-06-04


The social security retiremen
system is only Is years old ant
millions of workers have not beer
covered up to now.
Authorities on the subject be.
leve substantial outlays for direct
relief will continue to be necessary
for another 10 or 20 years fol
those who have not been able, ol
eligible, to earn an old-age pension
through payroll taxes.
The pending bill does not take
the whole step to universal COW
erage. 1t does not go as far as
the administration wanted to go
But 1t goes a long way and is al
most certain to pass this year.
The House passed the bill last
year, but the Senate Finance Com
mittee has made major changes in
that version. The Senate draft
is more liberal than the House in
some respects. less liberal in
others. There are two widely
divergent minority viewpoints
toward the revised measure.
Two Viewpoints
One viewpoint lis expressed by
administration floor managers
Majority Leader Lucas of Illinois
and Democratic Whip Myers OF
Pennsylvania. They praise the
Senate committee for the steps 1t
took to make the bill more liberal,
but they reserve the right to make
o floor fight to restore liberal
House features the Senate Finance
group struck out.
Another minority viewpoint is
expressed by Senator Butler, Re
publican, of Nebraska, and goes to
the opposite extreme. He asks
the Senate to defeat the pending
bill and set up an independent re-
search body to survey the posi-
bility Of a universal f1at-rate pen
sion system which could be
financed on a strictly pay-as-you.
go basis. He questions the equity
and soundness of the present sys-
TEN because, he says, it provides
pensions for only a small percent
age Of those already old. He ad-
mits the social security system has
been able to pay the promised
amounts to those in covered jobs
who have reached retirement age,
but he questions whether it can
keep its long-range promises 20 or
80 years from now. when a larger
proportion Of the aged will be
eligible for pensions.
No one seriously expects the
Senate to sidetrack the bill pend
ing a study of an entirely new sys-
tenn. In fact. Senator Butler
states in his minority report that
he is not advocating a flat-rate
system today because he does not
have sufficient statistical materia,
on which to base a judgment. But
he believes 1t should be looked
into.
Senator Taft of Ohio, chairman
Of the Republican Policy Commit.
tee, also is a member of the
Finance Committee, and is sup.
porting passage of a bill liberaliz.
ing the present system at this ses.
sion.
More Oldsters in 1875
With medical science constantly
improving the expected life span
the number Of persons living be.
yond the retirement age of 65 Il
steadily increasing. When the
first Social Security Act passed il
1885, there were rs million mer
and women 65 or older. Toda.
there are lis million, and the ex'
perts predict that in 1875 ther,
may be between II and 20 million
citizens of retirement age.
These figures prompted the Sen.
ate committee to recommend
passage of a new liberal social Sc
curity bill as a means of gettin.
more Of the old people under th'
contributory retirement system
where they can help through tht
payroll tax to meet the cost o.
their own pensions. and prevent
further expansion of direct relief
which must be financed Jointly
from the general revenues of Fed.
eral and State governments.
Lets take a look at how the H.:
million old persons living today
are provided for:
The Social Security Old Age
and Survivors Insurance System
is paying pensions to 1.9 million
retired workers and their wives
This figure includes widows of de.
ceased beneficiaries. When Other
dependents are added, the totaI
drawing social security benefits
becomes about 2.8 million.
The Federal Government and
the States, jointly. are making
direct old-age assistance grants to
.2.7 million. These public assist.
ance rolls are handled by the
States, but of the first $50 month
ly payment, the Treasury puts ur
$50 and the State $40. Any pay.
ment above $50 is made entirely
by the State.
1t is estimated that 3.6 millior
OF those past IS are still EN-.
ployed.
Other Plans Cover Some
A comparatively small proper
ton of aged persons no longer EN-
ployed are provided for by thes'
other plans: Railroad retirement
253.000; Federal civil service
$1,000; other Federal retired work
ers. $4,000; State and city govern
ment retirement plans. 174, 900
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