Jackson advocate. [volume] (Jackson, Miss.) 1939-current, 1958-09-27
1858 Change In
Your Social
Security
By JOHN F. PATE
Manager of the Jackson Social
Security District Office
Article No.

Some important changes have
been made in the old-age and sur
vivors insurance program as a re-
suit Of the Social Security Amend
ments Of 1868 which President
Eisenhower signed into law on
August %, 1853.
All Of the changes, directly or
indirectly, affect the American
public as whole. Working per-
sons-employed and sef-employed
to know about them; their
families need to know about them.
In the articles to. follow l shall
describe the changes singly and in
detail; today, / shall restrict my
self to summary of the most i'm
portant changes designed to streng-
then this Federal social insurance
system which provides partial pro-
lection against loss of earned in
come upon retirement, death or
total disability by the worker.
Most important, because it af-
fects practically all working peo-
pie and their families, is the in
crease in benefit amounts. This ap-
plies to those now getting benefit
payments and to those who will be-
come beneficiaries in the future.
Most monthly benefit checks will
be about 7 percent higher, with a
minimum increase of at least $500
in the amount payable to a worker
who retired at age IS or later.
Women workers who began to
receive benefits at any time be-
tween age 81 and age IS will re-
ceive slightly smaller increases)
The maximum monthly payment a
family may receive is increased
from 5000 to 1854 a month. Fami-
lies now receiving maximum mon
thly benefits under the law will re-
eceive increases from $3.50 to $54
depending upon the decreased
workers average monthly wages.
Right here I want to point out
that people now on the beneficiary
rolls do not have to get in touch
with the social security office to
obtain these benefit increases. The
larger amounts are effective with
January and will show up on bene-
fit checks for that month which
will go in the mails early in Feb
ruary.
AS you know, benefit amounts
are figured from a working per-
sons average earnings. Right now,
only earnings up to total of $4,-
200 in year can be credited to a
worker social security account.
Beginning with 1859, however,
earnings up to $4,000 will be credit
able and taxable for social security
purposes.
Social Security taxes will be in
creased beginning with 1859. An
employed person will have PA per-
cent taken out of his pay instead
of the present 2A percent; his en-
ployer will contribute 21s percent
also. The self-employment social
security tax will be increased B of
l percent and will become 81 per-
cent of net earnings up to $4,000
in the year. Self-employed people
will pay at this increased rate for
the year 1859 with the tax return
they make early in 1860.
Important changes have been
made in the disability Insurance
provision in the law. If a worker,
age 50-64, is getting monthly dis
ability benefits because he is too
disabled for further substantial
gainful work, payments can be
made to his dependents just like
the payments made to old-age in
surance beneficiaries. Moreover,
person entitled to social security
disability benefits no longer has
the amount Of his benefit reduced
or withheld because he is receiving
disability payments from some
other Federal or State source.
The amended law also makes it
easier for people whose disability
develops gradually to qualify for
either cash disability benefits or
the disability freeze. This is
brought about through change in
the work requirements. 1t is no
longer necessary that the worker
have at least III years of social
security credit out of the 3 years
before he became disability. The
standards for determining disabili-
ty remain the same. A person must
still be unable to perform sub
stantial, gainful work. The new
requirements is that the worker be
fully insured and have 20 quarters
of coverage out of the 40 calendar
quarters before he became disabled.
Other changes have been made
in the social security law, includ-
ing several relating to benefits for
dependents. shall discuss the lat
ter in my next article.