The Sidney herald., 1960-08-31

er of benefits to a person then
on the rolls. To this end, the max
lmum monthly benefit to a retired
worker was increased to $50: the
largest benefit payable to an aged
retired couple was raised to S12O
a month. The minimum MONTHLY
benefit to a retired aged worker
was doubled. These new payments
went into effect at the beginning
of 1851.
About this time, however. a
study of beneficiaries conducted
in Philadelphia and Baltimore
showed that social security bene-
fits for many of the aged re-
suited in retirement income be-
meath the local public assistance
level. Consequently, while the
1850 benefit increases under So
cial security momentarily COM
penSated for increases in con-
sumner prices since 1899, these in
creaseS did not correct the made
quacy of the original benefit lev
ell. In fact, in the year following
the 1850 increases, further adj
vanceS in the prices of food, cloth
ing, and other necessities again
reduced the purchasing value of
social security benefits below the
level established when benefits
first became payable in 1910.
There was now a double need.
First, to restore the purchasing
power Of the benefit dollar by
bringing it into line with the
commodity dollar; second, to relate
the benefit amount more reals
tically to the earnings of the COW
cred worker.
In testimony before C-ongression-
al committees during their con-
sideration of further amendments
to the social security law in 1854,
the Secretary of Health, Educa-
ton, and Welfare said: "Old-age
and survivors insurance benefit
levels were originally fixed in the
mid-1930s, during a depression
economy. Benefit increases enact
ed by Congress since then have
done little more than keep pace
with the inflationary trend our
Nation has heretofore experienced.
In my opinion, a readjustment of
benefits to take into account the
improved standard of the basic
elements of living for the Ameri-
can worker is necessary.
A REIMBURSEMENT" did take
place. The 1854 amendments to
the law raised the minimum
monthly benefit to a retired aged
worker to $50 (three times the
original amount); the new maxi
: mum benefit to a worker became
$100.50 a month and the largest
benefit payable to a family was
raised to $500.
By 1858, the national economic
picture had changed again. Wage:
had increased by about IL per-
cent and prices by 8 percent. Con.
gress felt that adjustments in tht
social security benefit scale We're
once more in order and voted al
I acroSs-the4board increase. Bene,
fits to retired workers were in,
creased by about 7 percent owe.
the old levels. Beginning witt
n January 1859, monthly payment
to retired workers ranged from
a low of $33 TO a high of $116. T.
women workers electing to retir
at age 81, the new minimum be
came $26.40 a month.
Another change in the law a
the same time made possible larg
er maximum payments to peopl
who had since come on the benefi
rolls and to those who will com
on the rolls in the years ahead
This is due to the change in tn
So-called earnings base" ON whic
payments are figured. Before 1876!
only earnings up to a total {
$4,000 in a year could be credit
ed to a workers social security aC
count; now, earnings up I
$4,000 in a year are credited |
his social security account. AS
result, the lowest benefit pay
Il able to a worker retiring at as
II 65 is now $33 (for a woman WORK
er retiring at 62 the amount,
had been mentioned, lis slight.
leSs-) a retired workers MONTH
benefit can now be as much
$120. Under the present law, tn
maximum will steadily increa.
for workers retiring in the futu,
until it reaches a high of 81:
monthly.
1t is evident that old-age, SUI
vivors, and disability insurance
not and cannot be a static pr,
gram. AS the Director of the b
reau of Old-Age and Survive
Insurance has expressed it: So
remain effective, the old-age an
survivors insurance program mu
keep pace with the social and &c
nomic changes that take place
a dynamic society like that of t
United States"
If you have a particular soci
security problem of your ow
please feel free to contact N
Chester v. Buchanan, your lo<
representative who visits Sidn
twice a month. The time a
place of his visits may be fou
by checking the calendar he h
posted in the local post office.