Milford chronicle., 1954-10-15
Changes In You're
Social Security
By MYRON MILBOUER


! spent an enjoyable hour with
a 68-year-Old yesterday. He told
me that the increase in his month
~ benefit checks was going to mean
a lot to him and his wife. / agreed
with him when he observed that
the increase brought about by the
1854 Amendments to the Social Sc
I curity Act would help the men and
women already getting their month
" payments as well as those who
would be getting them in the fu-
ture.
But knew that there was
something else on his mind, and
was right. He had heard that the
test for earning without loss Of
benefits had been changed. OF
course, he realized that the test
/ has a purpose. Without it, the
cost Of the social security program
would be greatly increased. And
people who weren't able to work
at all wouldn't be able to get the
higher benefits which help them
TO meet tOday's living costs.
Still, for some of the benefici-
aries who do have part-time Jobs
during the holiday seasons, it is
important to know what that test
is and how it will affect them" nv
visitor remarked. Then he Illus
trated his comment by telling me
this story:
Il work part-time for the com
pany by which I was regularly
employed before was 65. Thev
call me in when they are rushed
on an order. Last winter they were
behind on their Christmas orders.
ano / worked for them for about
three months. In those three
months / made more than SIS a
month that a retired person can
earn without losing a check. This
caused me to lose the rights, to
my checks for three whole months.
i didn't think that this earning
test was quite fair when I learned
that my brother could have net
income up to $500 in a year when
he works for himself and not lose
any OF his retirement benefits. In
addition, he could have earnings
OF as much as $500 a year in COW
cred employment Tell me, does the
new law change that in any Way?"
was quick to assure my elderly
friend that under the new law, his
brother would total his net self
employment and employment in
come over the year. And the 68-
year-Old gentleman would have the
same yearly earning test as his
brother. The test has been made
the same for both the EMPLOYED
and the self-employed beneficiary.
Under the new test no one will lose
months benefits for each month
in which he earns above a specified
amount. Beneficiaries who are wage
earners are now permitted to add
their wages over the year in the
same way that the self-emplOyed
people did before the change.
And the earning test is now ST.
zoo a year instead Of $500. Under
the new law, this means that all
self-employed AND employed bene-
hciaries may work throughout the
year at S106 a month and lose oplv
one months check. The old law
would have caused the employed |
workers to lose an 10 checks for
that year. Or they may earn S4OO
IN each OF three months and lose |
nothing, whereas before, the en-
pioyed workers would have lost |
three months payments.
explained to my friend that |
when he does make over $1,000 in /
a year, he will lose his right to one /
check for each $50 or frac-
ton of $780, For example. he will
lose two checks when. he makes as
much as $1,281 in a year. But un-
der the new law, he will lose no |
check for anyamOnth in which he 4
neither earned more than $50 as 4
an employed person nor rendered
substantial services as a self-em- 4
ployed person.
My 68-year-old friend asked me
i the new earnings test applied
only to jobs covered by social Sc
curity as it had under the old law.
told him that the law had been
changed on that point. The $1,000 l
limitation on earnings for bene-
1eiaries applies to all earnings
rom employment or self-emplOv-
nent whether from work covered
Dy social security or not.
thought that II was a good
line to tell him that the law had
the age when the earnings
test was no longer effective. The
new amendment has q provision |
"hlcn places no test on the amount
lI a persons earnings when he is
Y or over, no matter what lob he
las. Under the old law, this age
vas IS.
There are other advantages for
PARTIALLY retired people under the
lew law. I'm going to explain them
n one Of my later articles. The
Gentleman promised to read about
ne other provisions that might
meet him. He had one other uues-
ion for me before he hurried home
% tell his wife about the new law
mo how it would affect them. n
When does this earnings test be-
'Ome effective?"
1T will be applied to your earn
ngs beginning January /, 1866"
answered.
We're going to circle those
iates on our calendar Octo-
Der, when I get my first increased
'enefit check, and January 1, 1856.
when the new earnings test will
-ppiy to me. He was smiling when
le walked out Of the Office, and