The potters herald. [volume] (East Liverpool, Ohio) 1899-1982, 1950-02-16
Boss Favors Only
Minimum Aid In
Social Security

VCOs0a OSVU1say
Washington NPA) - What one
Senator called the "first high brass
employer" to tell the Senate Fin
ance Committee his views on social
security extension was heard Jan.
81, when Treasurer Marion b. Fol
som Of Eastman Kodak Co. appear
ed before the group.
Expressing the views Of most
employers, Folsom urgently ap-
pealed for quick action to raise old
age and survivors insurance bene-
fits, but attacked ether provisions
Of the House-approved HR 5000.
He proposed that industry and
government together aim at pro-
viding "a combined annuity from
government and private plans" Of
about so per cent Of pay for lower
income workers, around'45 per cent
for middle income workers, and
Clover percentages for the higher
salary groups" The House bill
would provide for about that level,
he said, and "would go long way
toward meeting the pension pro-
blem of companies located in some
sections of the country and in small
cities and towns where living costs
are lower"
However, he conceded tn a t
unions will still have to bargain for
pensions, since "in large industrial
centers, supplementary benefits for
the higher paid factory worker will
be necessary" Folsom said the
government annuities should cover
only minimum protection to pre-
vent dependency" Even the Bri-
tish Labor governments program
goes only that far, he observed,
leaving the rest to employers.
When Sen. Milliken Or, Colo) said
raising benefits might just lead to
a new series of strikes for higher
pensions, Folsom indicated he
thought unions would turn to other
demands because companies would
MT agree to more costly pension
plans now.
Most older employer pension
plans are non-contributory, ques-
tioning brought out, though social
security experts say that only l12
to 2 million workers were covered
by such plan until about a year
ago. Since then, and in current ne
gotiations, some 8 to 10 million
workers are involved. Most Of these
newer contracts would relieve the
employer of part Of the burden, II
federal insurance benefits were
raised, which explains the employ
er spokesman's emphasis on speed
in passing HR COCO.
Here are Folsom's proposals on
old age and survivors insurance:
b1-Extend coverage to all those
gainfully employed who are not
now covered.
2-Make it possible for workers
now reaching the retirement age
to get benefits even though they're
mot now eligible because of changes
in the law.
/ 3-Keep the base for taxes to be
paid, and benefits calculated, at
$1,000 instead of $1,000. Organized
labor asks for a base even higher
than $4,000.
/ 4-Recalculate the benefit for
mula so that the benefits are more
related in amount to past earnings
to avoid resentment Of higher-paid
workers who'd get less for their
payroll tax than would lower-paid
workers.
5-That recipients of annuities
be allowed to earn up to 500 a
month without losing benefits;
earnings over $50 would be deduct
ed from benefits. No such earnings
test after age 70.
6-Contrary to recommendations
of organized labor, postponement
of the effective date of the tax in
crease to per cent from Jan. l,
1851, to Jan. l, 1855.
To discourage using old age
assistance payments instead OF m
surance benefits, no increase in the
formula for federal grants in aid
to the states for old age help.
The Eastman Kodak official OPP
posed any system of insurance for
workers permanently disabled.
Echoing the insurance companies
arguments, Folsom said such pro-
grams aren't "actuarially sound
and lead to malingerng. Sen.
Francis Myers Cd, Pa pointed out
that younger disabled workers, the
ones who need such benefits be-
cause their families are still de-
pendent on them, can often be re-
habilitated. Myers supports a pro-
gram Of permanent and temporary
disability insurance, like that de
manded by the unions aRG'Dy Pres
ident Truman.
Union spokesmen will be heard
Feb. IA through II, when AFL and
CIO will each have two days to
present their views.
Green, Murray Ask Truman
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