Evening star., 1950-01-17
A|tmeyer Testifies
lon Far Broader Plan
|For Social Security

Continued From First Page)
on only one day week" The
House bill covers only those do
mestics employed by the same
person on 26 days during a cal
endar quarter.
Increase for Present Annuitants.
4. Collect the old-age payroll
tax on the first $4,000 of annual
wages. Under present law the
tax is collected only on the first
$1,000, and under the House bill
on $4,000.
5. More liberal treatment for
the 100000 persons now draw
ing old-age benefit annuities. Mr..
Altmeyer pointed out that under
the House bill payments to these
annuitants will be increased con-
siderably less than for those who
retire after the new law becomes
effective. He said it would be
equitable. and involve fewer ad-
ministrative problems" if the
payments to present annuitants
be brought closer. on the aver
age. to the new benefit provisions.
The House bill was figured to
bring 100000 more individuals
into the old-age system. Mr..
Altmeyer did not estimate to what
extent his amendments would
boost that total. /
Until this year the payroll tax
for old-age retirement was l per
cent each on employer and en-
ploye. It went up January / to
112 per cent from each. The
House bill would cause 1t to go
up as follows: Two per cent each
from 1851 through 1859, 21a per
cent from 1860 to 1864, per cent
for 1865 to 1869 and 34 per cent
thereafter. These rates apply to
employees. The self employed
groups brought in by the House
bill would pay one and one half
times the rates for employees.
There are also special terms to
cover employees of non-profit Or
CARNATIONS who up to now have
been excluded from the system.
Professional Persons Excluded.
Mr.. Altmeyer testified that the
estimated level premium cost" Of
the House bill is $40 per cent of
payroll Counting both the en-
ploye and employer contribution)
With the further changes he sug-
gested today, he placed the esti-
mated level premium cost at 7.2I
per cent.
Mr.. Altmeyer told the Senators
they should give further consid-
Grafton to the exclusion of va
rious professional groups. either
to remove the exclusion from the
bill. or to limit 1t to fewer pro-
fessions."
This bill has nothing to do with
the controversial issue Of health
insurance, or socialized medicine.
It relates only to retirement,
either for age or physical dis
ability.
Mr.. Altmeyer told the commit
tee the great mass of older work.
ers newly covered under this bill
could not qualify for old-age bene-
fits until they had contributed
for at least five years. Many of
them will not be able to work that
long. he added. For that reason,
he recommended less restrictive
eligibility requirements. .
The Commissioner said the ad-
|sdition of disability benefits to the
old-age retirement system will be
an important addition to eco
nomic security. Under existing
law, he pointed out, an insured
worker who becomes permanently
and totally disabled before reach
ing retirement age receives no
benefits.
He recommended that the de-
pendents of those who retire for
disability get the same benefits as
dependents of those who retire
on age alone.
Federal Aid Plan Backed.
In discussing the cost of his
amendments to the House bill,
Mr.. Altmeyer said that, obviously.
higher benefits to more people
will result in larger total disburse-
ments. He argued, however, that
the taking in Of more persons and
raising the base for collection Of
the payroll tax to $4,000 will re-
suit in off-setting savings when
cost is calculated as q percentage
Of payroll"
He also predicted that, II the