1 Represents the face amounts of death claims incurred during the year, including amounts left to be paid under supplementary contracts.

2 Represents the total payments from accumulated insurance policy proceeds left to be paid in monthly installments, and withdrawals of dividend accumulations.

Source: Institute of Life Insurance, New York, N.Y., Life Insurance Fact Book. Data from U.S. Veterans Administration.

No. 457. NATIONAL SERVICE LIFE INSURANCE POLICIES IN FORCE, BY PLAN: 1950 TO 1972

[As of June 30 through 1965; thereafter, as of Dec. 31. This program, operated by the Veterans Administration, is for veterans of World War II and later conflicts]

Source: Through 1965, U.S. Veterans Administration, Annual Report of Administrator of Veterans Affairs; thereafter, Government Life Insurance Programs, annual, and unpublished data.

Veterans Training-Veterans Loans

281

No. 458. VETERANS VOCATIONAL TRAINING AND EDUCATION: 1950 TO 1972 [As of November 30. Includes data for beneficiaries of disabled and deceased veterans]

Source: U.S. Veterans Administration, Annual Report of Administrator of Veterans Affairs, and unpublished data.

No. 459. VETERANS GUARANTEED AND INSURED LOANS-NUMBER AND AMOunt of LOANS CLOSED, BY TYPE: TOTAL AND 1954 to 1972

(Number in thousands; money figures in millions of dollars]

Source: U.S. Veterans Administration, Loan Guaranty Highlights, monthly.

Source: U.S. Bureau of the Census. Data from U.S. Social Security Administration.

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 workmen's compensation, including black lung benefits, pension plans and funds, the American Red Cross, United Way campaigns, and philanthropic trusts and foundations.

There are several principal sources for these data. The monthly Social Security Bulletin, a publication of the Department of Health, Education, and Welfare, presents current data on many of the programs and summarizes 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 Statistics. Data on retirement and other benefits for railroad workers are published by the Railroad Retirement Board in its RRB Quarterly 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 protection against the cost of medical care during old age and disability. 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 survivors of an insured worker. Within 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 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 or she may elect reduced benefits up to 3 years earlier; his or her 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 dependents of an insured worker, including his aged or disabled widow or his widow at any age caring for his child under age 18 or totally disabled; his child under age 18, totally disabled, or a fulltime 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, health 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. Beginning July 1973, this program was extended to disabled beneficiaries of any age under certain circumstances and to persons with chronic kidney disease.

Retirement, survivors, disability, and hospital insurance benefits are paid for by the contributions of workers, employers, and the self-employed on annual earnings up to $10,800 ($12,000 in 1974 and thereafter, automatically adjusted to reflect increasing income levels). Currently workers and their employers each pay 4.85 percent, and the self-employed pay 7.0 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 selfemployed each pay 1.0 percent (see table 475). For persons 65 and over with specified amounts of social security coverage less than that required for cash benefit eligibility, the hospital benefits are financed out of Federal general revenues. The voluntary

medical insurance plan is financed by a $6.30 a month premium paid by persons age 65 and over and the disabled who choose to enroll in the plan, and by Federal Government contribution from general revenues.

Both unemployment insurance and the public employment (placement) service are administered through the Manpower Administration 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, unemployment assistance under the Disaster Relief Act of 1970 to individuals unemploued as the result of major disasters, workers assistance and relocation allowances under the Trade Expansion Act, and direct aid in the form of training and related cash allowances under the several manpower and adjustment acts. State unemployment insurance laws pay benefits to unemployed covered workers meeting the qualifications in those laws. 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 26 to 36 weeks among the States (most frequently 26 weeks); extended benefits are payable under a Federal-State program to workers who exhaust their regular State benefits during periods of high unemployment. Maximum weekly benefits without dependents' allowances range from $45 to $110. Ten States and the District of Columbia augment their allowances for dependents. Maximum augmented weekly benefits range from $65 to $138.

A 3.2-percent Federal tax (3.28 percent for 1973 only to finance the emergency benefits) is levied on the payroll of employers of 1 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 the balance of the tax out of which the Congress appropriates funds each year to cover employment security administrative costs and to finance the Federal share of the extended-benefit program. For 1973 only, a 3.28 percent tax is levied on subject employers, with a net tax of 0.58 percent being retained by the Federal Government.

Excluded from coverage are the railroad industry (see below) and most workers in domestic service and agricultural employment. A limited number of State and local government workers are covered, usually on an optional basis.

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 1972 the average contribution rate under State laws was estimated at 1.8 percent of the taxable payroll. The contribution is based on the first $4,200 paid to a worker during the year. In a few States, the rate applies to wages above $4,200. Contributions 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 and of 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. Wage credits of workers with less than 10 years of railroading are transferred to, and counted with, social security covered employment at retirement. Supplemental annuities have also been provided for career employees since 1966. In addition, Federal health insurance protection is available to railroad workers on the same basis as to workers covered by social security. Funds for the regular railroad retirement and survivor benefit program come primarily from a tax, divided equally between employer and employee, on the first $900 of each month's earnings ($1,000 in 1974 with automatic increases thereafter). The supplemental annuity program is financed by a special variable quarterly tax on railroad employers for each man-hour compensated.