Evening star., 1961-02-02

adequacy Of social security ben
efitS in relation to the needs Of
many present beneficiaries. The
average retired workers benefit
Is only $74 a month. A majority
of these beneficiaries have no
other significant income. The
basic principle Of our social in
Surance system is undermined
when q substantial number Of
retired individuals must seek
public assistance or else subSist
below minimum standards Of
health and comfort. We must
not permit the benefits Of re-
tired workers and their families
to lag behind rises in living
costs; we cannot decently ex-
clude our older population from
the general advances in stand
ards Of living by employed
workers.
I recommend that Congress
enact five improvements in
benefits, to become effective
April /. All are clearly justified
In equity and decency. They
will increase benefit payments
for between 4 and 5 million
people in the next IL months.
Besides meeting pressing social
needs, the additional flow Of
purchasing power will be a
desirable economic stimulus at
the present time. Early enact
ment will serve this end.
The Old-Age, Survivors, and
Disability Insurance program is
financed on q sound actuarial
basis. with insurance contribu-
tions adjusted to scheduled
benefit payments. The benefit
improvements I am proposing
can be covered by additions of
one-fourth OIL per cent each
to the employers and employees
contributions, beginning at the
next scheduled increase in con-
tributions on January l, 1858.
The five proposals are:
% Raise the m IN m u m
monthly benefit for the retired
worker from $33 per month to
S43 per month, increasing bene-
fits for more than 2.2 million
people, in the first IL months.
We wish it could be raised
higfer-but surely we cannot
continue benefits at such an
Internationally low minimum.
(2) Improve retirement pro-
lection by paying actuarilly
reduced benefits to men begin
ming ut age 81. Present law
does not permit q man eligible
for optional retirement benefits
before age IS although such
benefits are available to women
at age 50 on an actuarilly re-
duced basis. Provision for pay
ing reduced benefits to men
beginning at age 81 would make
benefits available to older un-
employed workers at compara-
lively little additional program
cost. The plight Of the older
unemployment man is particu-
larly serious in areas Of chronic
unemployment. However, the
difficulties older workers find
in re-entering the labor market
after losing their jobs Or. otter
periods Of illness exist In all
parts Of the country. FIRE.
quently. as persons approach
age 65 they find it difficult to
compete In their accustomed
occupations because Of physical
incapacity which may not how.
ever have progressed to the
point Of total disability. ProVi.
sion for acutarilly reduced
benefits at age 90 to men as
well as women will provide, In
come for 100000 people. some
Of whom would otherwise have
to turn to public assistance for
support.
(3l Provide Benefits for
170.OO0 Additional People by
LiberaliSing the Insured-Status
Requirement. At present q per-
son can receive benefits only
If before retirement he was
employed in jobs covered by
the social security program for
one out Of three quarters after
1850. The proposal is to reduce
the required coverage to one
quarter out Of every four. This
is only fair to our present gen.
Grafton Of older people. as it
brings their eligibility require
ment into line with the one
that present law contemplates
for future generations, 1. e., ten
years Of coverage out Of a work.
ing life Of about forty years.
~ Increase the Aged Wild
ow's Benefit from 75% to S5%
Of her Husbands Benefit
Amount, raising benefits for
1.550,000 widows. There is no
justification either in equity or
in the facts Of family consump-
ton for this size gap in the
level Of widows benefits.
~ Broaden disability in
surance protection. The social
security program Shnuld nrn.