Evening star., 1950-06-04
about million Of the Ills million
now 65 or older.

+ about o million Of the lis million
now 65 or older.
Presumably, the remaining 2.5
million include those who are liv-
ing on savings, private pension
plans, income from investments
or help from relatives and friends.
There is no reliable current in
formation on the number in these
categories, the Senate Committee
was told.
The exact scope of the new law
remains unsettled. 1t is almost
certain, however, to add between
10 and ii million workers to the
IS million now in covered jobs.
1t also is certain to make substan-
tial increases in the monthly
benefit payments.
Exclusions Listed
Both the House and Senate YER
sions for the first time would
make self-employed persons eligi-
BILE, except farm owners, doctors,
lawyers, dentists, practitioners of
the other healing arts and profess
slonal engineers. The Senate also
excludes certified public ac-
countants and architects.
The House gives coverage to
borderline agricultural workers,
including packing and processing
on the farm. The Senate bill
takes in regularly employed farm
hands.
Both bills extend coverage to
some. but not all domestic work.
ers in private homes. The House
requires work for a single en-
ployer for rs days in a calendar
quarter at wages of at least $25
for the quarter. The Senate bill
calls for only "a days, but re-
quireS at least $50 wages for the
quarter. Both bills bring in some
employees of non-profit organiza.
tions. some Federal, State and To-
cal government workers not other
wise covered; American citizens
employed outside the country by
American employers; certain en-
ployes on American airlines. and
employment in Puerto Rico and
the Virgin Islands.
Major differences are there:
The Senate eliminated the
House proposal to establish a new
Federal plan Of retirement for
disability, on the ground it needs
more study.
The Senate bill freezes the
payroll taxes at the present rate
OF Ia per cent each on employe
and employer until 1856, whereas
the House voted to let the tax 70
up to 2 per cent on each on Jan
uary !. 1851. The Senate COM
mittee decided the existing re-
serve fund, plus the increased
collections from broader cover
age. would be ample for the next
five years.
Ihe Senate bill would continue
to base the tax and benefit pay
mentS on the first $4,000 of an
nual wages. while the House
boosted it to $4,000. President
Truman wanted the tax collec-
tions and benefits computed on
$4,000.
The Senate Finance Committee
also adopted a new alternative
formula for computing benefits
which would make it easier for
persons now approaching age IS
to become eligible for social Sc
curity retirement.
Eligibility Changes
The House bill made eligibility
slightly more liberal by requiring
20 calendar quarters of coverage
In 10 years. The Senate bill has
been amended so that any person
who Is 81 or over when the bill
becomes law would be fully in
sured at IS If he had at least six
quarters of coverage acquired at
any time. The Senate commit
tee explained that those now 81
, would need only eight quarters;
those so would need 10 quarters;
those So IL quarters, etc., with
the maximum requirement for
fully insured status never exceed
ing the 40-quarter provision of
existing law.
The Senate committee believes
its new six-quarter rule would
enable 100000 additional persons
to be paid retirement benefits in
the first year of operation, and
thereby reduce the need for pub
lie assistance expenditures out of
State and Federal treasures.
Senator Byrd, Democrat, of Vir-
ginia seriously questions the wis
dom Of reducing the eligibility re-
quirement to six quarters in some
cases. He emphasized that he IA
vors the contributory system of
old-age insurance, but feels that
the Senate formula is approach
ing a dole"
He pointed out that if a person
earning $100 a month could be-
come eligible by working in a COW
cred job for six quarters 18
months). his payroll tax at the
present rate would be only $27,
and at 65 he would be eligible for
a pension, with q life expectancy
Of IL years.
Senator Byrd said he would not
object to it If he thought 1t would
take any one of the State relief
rolls, but his fear is that the
States would raise their relief
standards to let recipients get
: these supplementary benefits.
Benefits Increased
Under the Senate bill, monthly
benefit payments to those retired
under social security would be
raised more than 100 per cent in
the lowest brackets, to 60 per cent
, in the top bracket, for an overall