No. 399. VETERANS VOCATIONAL TRAINING AND EDUCATION: 1950 TO 1966 [As of November 30. Includes data for beneficiaries of disabled and deceased veterans]

Source: Veterans Administration; Annual Report of Administrator of Veterans Affairs, and unpublished data.

No. 400.

VETERANS GUARANTEED AND INSURED LOANS-NUMBER AND AMOUNT OF
LOANS CLOSED, BY TYPE OF LOAN: TOTAL AND 1951 To 1966

Section 10

Social Insurance and Welfare Services

This section presents data related to governmental programs for old-age, survivors, disability, and health insurance (OASDHI); public and railroad employee retirement; unemployment and temporary disability insurance; aid to the needy; and maternal, child, and other welfare services. Also included here are selected data on private pension plans and financial data on corporate pension funds, the American Red Cross, United Fund campaigns, and philanthropic trusts and foundations.

There are several principal sources for these data. Social Security Bulletin and Welfare in Review, monthly publications of the Department of Health, Education, and Welfare, present current data on many of the programs and summarize annual data in statistical supplements published each year. Current data on employment security activities are published monthly in the Department of Labor's Unemployment Insurance Review, Employment Service Review, and their statistical supplements. Data on retirement and other benefits for railroad workers are published by the Railroad Retirement Board in its Monthly Review and Annual Report.

Social insurance under the Social Security Act.-Social insurance programs established by the Social Security Act provide protection against wage loss resulting from old age, prolonged disability, death, or unemployment and, since July 1966, protection against the cost of medical care in old age.

The old-age, survivors, disability, and health insurance (OASDHI) program provides monthly cash benefits to retired or disabled insured workers and their dependents and to the survivors of an insured worker. Within the specifications of the law, retirement benefits are payable to an aged insured worker; to his aged spouse or his spouse at any age caring for his child who is under age 18 or totally disabled; and to his child who is under age 18, totally disabled, or a full-time student, age 18 to 21. An aged worker becomes eligible for full benefits at age 65, although he may elect reduced benefits up to 3 years earlier; his spouse is under the same limitations. Special benefits are also provided the aged 72 and over who do not meet the insured status requirements. Under certain conditions, survivor benefits are payable to some dependents of an insured worker, including his aged widow or his widow at any age caring for his child who is under age 18 or totally disabled; his child who is under age 18, totally disabled, or a full-time student, age 18 to 21; and aged parents. Disability benefits are payable to an insured worker under age 65 with a prolonged disability that meets the definition in the Act and to his dependents on the same basis as dependents of retired workers. A lump sum benefit is also payable on the death of an insured worker.

Beginning July 1966, medical insurance has been provided under two coordinated plans for nearly all people age 65 and over: A hospital insurance plan which covers hospital and related services and a voluntary supplementary medical insurance plan which covers physicians' services and related medical services.

Retirement, survivors, disability and hospital insurance benefits are paid for by the contributions of workers, employers, and the self-employed on earnings up to $6,600. Currently workers and their employers each pay 3.9 percent, and the selfemployed pay 5.9 percent of covered wages for retirement, survivors and disability insurance. The special benefits for noninsured persons age 72 and over are financed from general funds. For hospital insurance, workers, employers, and the self-employed cach pay .5 percent (see table 419). The rates are scheduled to increase gradually. For persons 65 and over currently not insured under social security the hospital benefits will be financed out of Federal general revenues. The voluntary medical insurance plan is financed by a $3 a month premium paid by persons age 65 and over who choose

to enroll in the plan, and by an equal contribution by the Federal Government from general revenues. The money collected is deposited in Federal trust funds.

Both unemployment insurance and the public employment (placement) service are administered through the Bureau of Employment Security of the Department of Labor and each State's employment security agency. Under agreements with the Secretary of Labor, the State agencies also administer unemployment compensation for eligible ex-servicemen and Federal employees, and direct aid in the form of training and related cash allowances to persons being trained under the Manpower Development and Training Act.

State unemployment insurance laws pay benefits to unemployed covered workers meeting the qualifications in the State law. In most States, a waiting period of 1 week must be served before payments begin. Benefits are payable for a maximum number of weeks, ranging from 22 to 39 weeks among the States; maximum weekly benefits without dependents' allowances range from $30 to $66. In 10 States and the District of Columbia, maximum allowances ranging from $11 to $24 for dependents raise the range of maximum benefits to $43 to $80. Massachusetts pays $6 for each dependent up to an unspecified amount. In Puerto Rico, benefits are payable for a maximum of 12 weeks; the maximum weekly benefit is $20.

A 3.1-percent Federal tax is levied on the payroll of employers of 4 or more workers in industries covered by the Act and is used to finance the Federal-State program. Employers subject to the Federal law are allowed a credit of 2.7 percent of taxable payrolls for contributions paid to State agencies under State unemployment insurance laws; the Federal Government retains 0.4 percent of the tax out of which the Congress appropriates funds each year to cover employment security administrative costs.

Principal industries excluded from coverage are domestic service, nonprofit organizations, and railroads (see below). A limited number of agricultural and State and local government workers are covered.

The standard rate of contributions payable by employers in all but 8 States is 2.7 percent of the taxable payroll. However, employers with favorable unemployment experience may be assigned a lower rate (except in Puerto Rico); in 1965 the average employer contribution rate under State laws was 2.1 percent of the taxable payroll. In most States, the contribution is based on the first $3,000 paid to a worker during the year. In 18 States, the rate applies to wages ranging from $3,300 to $7,200. Contributions collected by States are deposited to State accounts in the Federal Unemployment Trust Fund, from which States withdraw amounts needed for benefit payments.

Social insurance for railroad workers.-The social insurance programs administered by the Railroad Retirement Board cover employees of railroads or companies and organizations affiliated with railroad transportation. The Railroad Retirement Act provides retirement annuities for aged and disabled workers and for wives of retired employees, and benefits to survivors of deceased workers. Supplemental annuities are also provided for certain retired employees under a 5-year plan established in November 1966. Also, Federal health insurance protection is available to railroad workers on the same basis as workers covered by social security. Funds for the regular railroad retirement and survivor benefit program come primarily from a tax on the first $550 of each month's earnings. The tax, which is payable under the Railroad Retirement Tax Act, is divided equally between employer and employee. The rate for 1967 is 17.3 percent, including 1.0 percent for hospital insurance benefits. The supplemental annuity program is financed by a special tax on railroad employers of 2 cents for each hour for which compensation is paid.

The Railroad Unemployment Insurance Act provides benefits for unemployment and sickness, including maternity. The unemployment insurance program is financed by contributions from covered employers, paid directly to the Board. The contribution rate for 1967 is 4 percent (applicable to earnings not in excess of $400 a month).

Social insurance for Federal Government employees.-One contributory retirement system for Federal civilian employees and two small noncontributory systems for special classes of employees are administered by the Civil Service Commission. In addition, there are separate retirement systems in operation for the uniformed services (supplementing OASDHI under which they are covered on a contributory basis) and for special classes of Federal employees.

The Civil Service Retirement Act provides for age, optional, disability, deferred retirement, and discontinued service annuities for employees in the executive, judicial, and legislative branches of the U.S. Government and in the District of Columbia government if not subject to another retirement system or excluded by statute or by administrative order. It also provides annuities for the widows and minor children of deceased employees, and under certain conditions to the survivors of deceased annuitants. The employee contribution rate is 61⁄2 percent, computed on base pay. Employing agencies pay into the Retirement Fund amounts equal to employee contributions.

Workmen's compensation.-All States have programs providing protection against work-connected injuries and deaths. Federal workmen's compensation laws cover Federal Government employees, private employees in the District of Columbia, and longshoremen and harbor workers. Most State workmen's compensation laws exempt such employments as agriculture, domestic service, and casual labor; the majority exempt employers who have fewer than a specified number of employees. Оссираtional diseases, or at least specified diseases, are compensable under most laws.

In most States total payments to injured workers or to survivor families are limited as to time, amount, or both. All compensation acts require that medical aid be furnished to injured employees; in almost one-fourth of the laws there are either duration or cost limitations-or both on the amount of medical benefits provided. Public assistance.-Six programs, all administered by the States and localities, provide public assistance. Payments to four groups-the aged, the blind, the permanently and totally disabled, and children whose need arises from certain causesare financed in part from Federal funds granted to States under the Social Security Act. The States may also receive grants for medical assistance to those aged persons not receiving old-age assistance and not able to take care of their medical bills themselves. Beginning 1966, the States may also receive grants for medical assistance to younger people not receiving assistance under the other Federally-aided programs who cannot meet their medical expenses. The Welfare Administration's Bureau of Family Services handles the Federal aspects of these programs. Aid to other needy persons is furnished mainly through general assistance, toward which the Federal Government makes no contribution.

To receive a Federal grant for assistance payments and administrative expenses under any Social Security Act program, a State must have a plan approved as meeting the requirements of the Act. Each State establishes the conditions under which needy people may receive assistance and determines how much they shall receive.

Health and welfare services.-Programs providing health and welfare services are aided through Federal grants to States for maternal and child health services, services for crippled children, maternal and infant care projects, projects for comprehensive health services for children of pre-school and school age, child welfare services, vocational rehabilitation, and public health services (including water-pollution control, hospital survey and construction, community health centers, and control of specific diseases). The Children's Bureau, a part of the Welfare Administration, administers the first five of these programs; the others are administered by the Vocational Rehabilitation Administration and the Public Health Service.

Historical statistics.-Tabular headnotes provide cross-references, where applicable, to Historical Statistics of the United States, Colonial Times to 1957. See preface.