Jackson advocate. [volume] (Jackson, Miss.) 1939-current, 1958-10-25
1858 Changes
In Your Social
Security
BY JOHN F. PATE

Social security nene1lt5 are in
tended to replace in part loss of
income brought about by the death,
disability, or old-age retirement Of
the worker. For this reason, they
are related to the average earnings
Of a worker in employment or self
employment covered by the social
security law. Obviously, social Sc
curity benefits are affected by
changes in the national economy.
Since the last benefit increase was
put into effect in 1854, wages have
increased by about IL percent and
prices by 8 percent. Congress felt
that adjustments in the benefits
scale were in order and voted m
across-the-board increase in the
amendments which the President
signed into law on August %, 1858.
These benefits become effective at
the beginning of 1859, and will be
included in all benefit checks Cor
January which will reach benefit
Charles early in February. AS !
said in the first article in this Sc
ries, it is not necessary to visit
your social security office to ap-
ply for these increases. They will
be made automatically.
The benefit increases for retired
workers amount to about 7 percent
over the levels provided in the old
law, with a minimum increase of
$500 in be benefits payable to
retired worker who come on the
rolls at or after age IS. Slightly
smaller increases will be shown on
the benefit checks of retired women
workers who elected to retire at
age 81 or at any age thereafter
before reaching age 65. Proper
tionate increases will be made in
benefits paid to beneficiaries who
are the dependents or survivors Of
retired or deceased workers.
For retired male workers now
getting benefit payments, the mon
thly payment, beginning with the
payment for Jan. will range from
$33 to s116, as compared with $50
to $108.50 under the old law. For
women workers now getting retire
ment benefits the increased checks
will range from $26.40 to $116 per
month. This slightly lower mini
mum benefit is due to the fact that
some women chose to retire before
age IS.
Another change in the law will
make possible larger maximum
benefit payments for many people
coming on the benefit rolls in the
future. This will be due to the
change in the so-called earnings
base" on which payments are fig
ured. Right now, only earnings up
to q total of $4,000 in a year can be
credited to a workers social secu-
rity account; beginning with 1859
earnings up to $4,000 in a year will
be Credited to a social security &C.
count. The largest monthly bene.
fit payable to retired worker with
average yearly earnings of $4,000
will be $127. However, the maxi.
mum benefit cannot be reached fol
many years.
Along with the increase in bene.
fits will come an increase in socia
security taxes. Beginning with
January, employed persons viii
have one-fourth of l percent add
tional taken out of their pay; thu
tax rate will be 2h percent each
for employee and employer. The
rate for self-employed people will
90 up from 8 3I8 percent to 8 3I4
percent on their 1859 net earnings
The old rate, however, will apply *
self-employment earnings for 1855
which must be paid when income
tax returns are filed early in 1869
In the first article Of this series
I discussed briefly changes in the
disability provisions of the socia
security law. In my next article,
snail explain how these changes
can mean payments to many people
who could not qualify for benefits
before the law was amended.
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