Indianapolis Times, Indianapolis, Marion County, 27 October 1936 — Page 2
Security Act Explained by Questions and
By Scripps-Howard Newspaper Alliance - WASHINGTON, Oct. 27.—Just what does the Social Security Act provide, in regard to old-age pensions? Manufacturers’ associations | and Republican propagandists are | . frying to tell workers that this act ~-hailed by organized labor as the greatest thing the
ers—is a swindle. Here are some of the questions asked by workers since propaganda attacks on the measure started, with answers taken from the act itself: Q—What will the worker have to pay? A—For the next three years he pays 1 per cent of his wages. The
amount increases until 1949 when |
it reaches 3 per cent, and that is what he pays thereafter. In other
words, if he earns $100 a month he |
pays $1 a month now; $3 a month at the end of 12 years. Q—Does the employers pay anything? A—Yes, he plays the same amount the workers pays. ' _@Q—What does the worker get for his money A—He gets a pension for starting when he is 65.
Employer Gets Nothing
life,
Q—What does the empioyer get? |
A—Nothing, except relief from the obligation, recognized by some, of establishing private pensions for his own workers. Q—How is the workers’ contribution collected? A—The law requires employers to deduct it from the pay of workers and turn it over to the government. Q—Where does it go then? A—Into the United States Treasvry. Q—Can the government spend the worker's dollar for other purposes? A—Some employers are trying to make you think so, and technically it is true. The Supreme Court has ruled that everything collected by
the government must go into the | the Social |
general fund. Actually, Security Act sets up an old-age re-
serve account and makes permanent |
provision for putting into it each Year an amount which will make the old-age insurance account actuarily sound. This amount will be mueh larger, each year,
fund shall per cent: ernment ponds. 5
Actually Not Tax
Q—Does this act provide for a “tax on wages”? A—The act calls it a tax in order
collect
Roosevelt Ad- | ministration has done for the work- |
than the! amount to be paid out in benefits. | The act provides that the rest of the |
shall be invested in gov- |
to meet constitutional requirements {laid down by the Supreme Court. [Maal it is no more a tax than the money you put in your savings ac- | count. It is, and remains, your i money, laid aside by you to provide | security in old age. Q—What workers have to pay? A—All workers except those on {farms or domestic labor in homes, | casual labor, employes of the Federal, state, and local governments, jand employes of institutions operated for religious, charitable, scien- | tific, literary or educational pur- | poses. | Q—Do these
other workers get | pensions? ’
A—They do not. Only those who |
per cent of his wages the payment he makes is from 1 to 3 per cent. | Family May Be Helped Q—What happens if a man dies’ a few months after reaching 65? | A—His family gets a lump sum amounting to 3% per cent of the wages he earned after 1936, less arfy monthly pension payments made to" him. Q—Will some workers pay more. into the fund than they get out? A—Never. No matter how young the worker is when he starts paying snd no matter how high his | wages are during the time he pays, | | his benefit payments are always | higher, because they are based on the amount earned. Q—Couldn’t a worker do as well
| pay into the fund are entitled 0 | through a private insurance com-
| benefits.
Q—What happens moves from one state to another?
if a worker |
pany? A—No, Q—Does the plan apply to work- |
A—There is no change in his ers getting large salaries as well as |
status. This is a Federal insurance |
fund and it applies to a man or |
woman no matter where he works, lif he is otherwise eligible.
Pay Only When Working
Q—What happens if a man is dis- |
charged or becomes too sick to work, or if a woman marries and working? A—When you stop working you stop paying into the fund, but you don't lose your right to money already paid in. who is out of work for a time, for any cause whatever, starts
into the fund again when he gets a |
job. He has no back payments to make up. He pays only while work-
ing. After he is 65 he draws bene- | fits based on every week he worked |
| between Jan. 1, 1937, he became 65. For instance if a young woman works for five years and then marries and never returns to work, she ic entitled to a pension when she
| becomes 65, based on the amount of
wages she earned in those five years.
Q—What happens if a man or woman changes from a job covered by the law to one which is not?
A—He or she stops paying into
| the insurance fund, but is still en- | titled to a pension, at 65, based on
the amount earned on the job covered by the law.
Q—What happens if a worker dies |
interest at 3 Pefore becoming 65?
stops
A man or woman |
paying |
and the time |
i small ones? { A—It does, but only the first $3000 | of a worker's yearly salary is counted. If you earn more than that | | neither you nor your employer pays | ‘on it and only that sum is counted | in figuring your benefits. Q—How large will the pensions | be? i A—They depend entirely on your | earnings. The minimum is $10 a month, the maximum $85. The figure depends on how much you earned and how steadily you worked.
Administering Cost Low
Q—Will the cost of administering | this system eat up a large portion of | the funds, say the entire employer | contribution? A—It will not. The 3 per cent interest earned annually by money | lin the - fund probably will cover all
| costs, . Q—Why do some employers say workers will have to pay 4 per cent of their wages? A—If they do they are not telling the truth. Three per cent is the largest payment ever made and that | does not go into effect for 12 years. |
- L
A—A lump-sum payment is made
to his family. It equals 3%
worker, for While it RIMOounts to 3% |
[few can you lend
The .Household Finance
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Your Honesty — Our Security
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than, the |=
| | | | |
The rate even may be reduced before then. a pergon draw benefits
| Q—Can when he becomes 65 even if he owns
property and has other savings? A—He can. He receives benefit payments just as he would receive them from a life insurance company, with no questions asked as to his income or possessions. Q—What does the Republican | candidate offer instead ot. this Roosevelt plan? _A—He believes only destitute old
Friday
FOR SESSIONS HERE Bamana
Ways in wiiich pursing care may be improved are to be discussed : : : When the Jadians State Nurses As- § , sociation ann convenother words he would do away with | tion Thursday through Saturday at the contributory insurance system ! he Severin. and provide a “dole” for persons| Private duty, public health and forced, in their old age, to take the administrative problems aiso are to pauper’s oath. be discussed. :
i
CHURCH WOMEN TO M Sr . The semi-annual meeting of the Council of Women of the Reformed {| ™™* bigot $31. 30 wp Church is to be held at 10:45 a. m. | | por Hom optee steer AL
in the First* Reformed Church, BE. 10th-st and Oakland-av. INDIANAPOLIS NORGE SALES 40m EN Washington i QE. sine
Mrs, Marion Gallup, Indiana E
Norge Oil Burning
Women's Prison matron, is to speak.
pa
ee ip wh 5 SE Ir a————
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70x80 Plaid
318
(Weight, 4 Lbs.)
Double Blankets
Plenty of Length—Weight Without Bulk
‘Sale! “Jumbo” BLANKETS 39
PAIR
Why shiver and freeze when you can buy one of these marvelous blankets at a low sale price? The extra length, 72x90 inches, gives you ample tuck under room, so your toes won't freeze, and the weight without bulk will keep you warm all night long. Made with heavy twill weave "with In lovely plaid colors of blue, rose, gold, green and lavender.
3 “Red- Hot" Blanket SALES!
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Bumper Band
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ELECTRIC VACUUM
SWEEPER
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only 3 a go n % B Tes ' seierion
Cleans by
ni None Sold for Cash Noné¢ Sold to Dealers
Hb lt
143 ny
AYRES per FTE
per | Um: 000 |cent of the wages he earned after |= (1936. In other words, this lump sum | is greater, at all times,
| amount paid into the fund by the | u | :
RO SS
SE FASSCSOSS
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reine
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