Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-01-30
SECURITY FOR YOU
New Claims
Raised Cost
Of Benefits

Associated Press star writer
Secretary Of Welfare Folsom
says the Social Security system
Ii IN sound financial condition
and no one need worry about
getting the payments due him
NOW or IN the future.
The statements appeared In
my last column In q question
and answer interview with Mr..
Folsom. the chief Social 6ecur-
ity officer.
But. Mr.. Folsom also says
the total Of the payments has
been running higher than ex-
pected and the system may
pay out more than II collects
In the next year or two. TOday's
column takes up this point in
further questions and answers.
Mr.. Secretary. why 10 the
Social Security system pay
Ing out more In payments
than u expectedf
''As you know. Congress ex-
tended Social Security In 1854
and 1885 70 cover 10 million
people In occupations that were
not previously covered. We have
received more claims from older
workers In these occupations
particularly farmers--than had
been expected. This can't hap
pen again because almost all
Workers-iiine out of i0-are al
ready covered now. Although
additional payments resulting
from these claims affect our
short term financial situation,
They have little or no import
ance when compared to ex-
penses over many years. They
certainly have no effect ON the
long range financial soundness
of the system"
Just how much on base
were your estimates on these
claims?
"Abaut 3is per cent. Shortly
after Congress passed the 1856
amendments. we figured that
payments would total 90 billion
In the ~ months before June
80. 1887. Actually. the pay
ments amounted to s6.5i5. 000,-
600"
How about the income from
Social Security tax? II II
running according to sched-
ule?
Very close. For the IL
months before June so. 1857.
We had estimated that the tax
income would be S6.740. 900. 900.
The actual income was s6.S40.-
100000. So. We overestimated
our income for that period by
about ; per cent. Our estimate
for the year ending next June
Is $7.3i5.o00.0 900. We still think
this Is about right"
In other words, during the
1887 fiscal year you under
estimated the total payments
you'd make By 31S per cent
and overestimated your tar
income By . per cent. Isn't
this cause for alarm?
mo. At least not as far as
the overall financial soundness
Of the system Is concerned since
these are relatively small diff
ferences. Both are temporary
and viii be more than COM
pensated for when the next
schedule raise In Social Secur-
ity tar goes into effect In 1850"
In some Of the articles I've
read. les been reported that
during some recent months
the total Of the payments was
far greater than the social
security tar collected. Is this
true?
Yes. But. Il has no meaning.
The income from month-to-
month always fiuctuates great
~ because Of the way the social
security tax Is collected. For
example. self-employed people
pay their tax only once q year.
Naturally. during the time
when this tax Is being collected
the income always exceeds out
go. The only realistic way In
come and outgo can be figured
is on q year-by-year basis. not
month-by-month."
How about these new dis
ability payments for disabled
persons between 50 and IS
years old? AREN'T they going
20 be an additional drain ON
the social security trust fund?
mo, they are not. Disability
payments are paid out Of q sep
arate disability insurance trust
fund. established by Congress
in 1856 when the disability pro-
gram was added 10 social Sc
curity. With this change. Con-
gress added q special disability
tax to pay for the disability
benefits. BY july /. 1857.
fYou may iCrite Ray Henry
In care OF The Star about your
Opn Social Security or retire
ment problem. Please inclose a
slammed seff-dddyeSsed enref-