cases and most, types of disability. ments, State funds for 26 percent, occurring after March 31, 1956, and Twenty-seven States and the District and self-insurers for 12 percent. This set July 1,1957, as the beginning date of Columbia increased the maximum distribution has not changed much for payment of such an annuity. The weekly benefits payable for tempor- since the early 1950’s, except for a widow of any Member of Congress arytotal disability by 10 percent or slight drop in self-insurance pay- who died in the 6 months April- more on the average. In some juris- ments. In 1956, however, for the first September 1956 could therefore begin dictions the maximum percentage of time since 1951, payments made by drawing the annuity for July 1957,. weekly wages used in computing bene- private carriers increased at a faster even though she was under age 50. fits was increased or the total time rate than State fund disbursements Public Law 85-65 (June 29, 1957) or money limit on payments was ex- -10.0 percent as against 8.6 percent. affects those Federal workers who are tended. Many of the 1955 changes Medical and hospital benefits prob- reemployed after separation from the were first reflected in 1956 calendar- ably account for as much as $350 service and who desire to make a year operations. million of the total of $1,003 million. deposit, for noncontributory service Increased payments occurred in all While the greatest liberalizations in rendered or who want to redeposit, States, though the rate of increase workmen’s compensation laws have contributions previously withdrawn. was uneven, ranging from 27 percent been made in the area of cash bene- The 1956 amendments required PaY-- in Indiana to less than 1 percent in fits, the higher costs of providing ment of interest both for periods of Washington, South Dakota, and Ghese benefits have been matched by service and for periods in which the Rhode Island. Regionally, the Mid- the increased cost of medical services employee had no service under the western States showed the greatest rendered to injured workmen. The system. The 1957 amendments ex- relative advance, with the South- estimated distributions by type of clude from the requirement payment eastern States a close second. The payment are shown below; data for of interest for any periods of non- smallest percentage gains were scored 1956 are preliminary and those for service that began before October 1, in the New England and Middle At- 1955 have been revised. 1956. lantic States. The survivorship option for retired Despite increased benefit payments, [In millions] Members of Congress who were sep- employers continued to spend about, Type of payment 1956 1955 arated from service before October 1, the same proportion of their payrolls , 1956, is also affected by Public Law to insure or self-insure their risks Total ______.____. $1,603 $915 85-65. Formerly the annuity to the under workmen’s compensation pro- Medical and hospitalization ______. 350 325 widow of a retired Member of Con- grams. Slightly more than $1.6 bil- Compensation, total ______.. 653 590 gress was payable when she reached Disability ______578 520 lion is estimated as having been spent, Survivor.-.. ______75 70 age 50. The new legislation removes by employers in 1956; this amount, the age restriction if the Member of represented about 93 cents per $100 Congress dies after December 31, of covered payroll, compared with 94 1956. The beginning date of the an- cents in 1955. The 1956 total con- nuity is June 1, 1957, or the first, day sists of (1) $1,169 million in premi- of the month in which death oc- ums paid to private insurance car- curred, whichever is later. riers; (2) $325 million in premiums Civil Service Retirement Public Law 85-177 (August 28, paid to State funds (for the Federal Act Amendments, 1957 * 1957) provides, in general, that a Fed- employees’ program, which is fi- eral employee who leaves his position nanced through congressional appro- During the first session of the for employment with the Interna- priations, these “premiums” are the Eighty-fifth Congress, three laws tional Atomic Energy Agency shall sum of the benefit payments and the were enacted amending the Civil retain for 3 years his status under cost of the administrative agency) ; Service Retirement Act. The modifi- the civil-service retirement program and (3) about, $135 million as the cations, which are of a relatively and the program of group life in- cost of self-insurance (benefits paid by minor nature, are summarized below. surance for Federal employees. If self-insurers, with the total increased Public Law 85-58, signed June 21, the worker is separated from the 5-10 percent to allow for administra- 1957, relates to annuities payable to Agency and wants to obtain retire- tive costs). the widows of Members of Congress. ment. credit under the civil-service Of the total premiums of $1.6 bil- Before the 1956 amendments to the program for his Agency service (UP lion, the benefit payments of $1,003 Civil Service Retirement, Act, the an- to but, not in excess of 3 years), he million represented 62 percent-a nuity to the widow was not payable must, within 90 days from the date slight increase from the 60 percent (if there were no minor children) of separation, pay the deductions of the preceding year. The loss ratio until she attained age 50. Legisla- that would have been made from his of private carriers likewise experi- tion in 1956 had removed the age salary and the matching depart- enced an increase-from 52 percent restriction if the death should occur mental contributions for coverage un- to 53 percent. These loss ratios were after September 1956. The 1957 law der the Civil Service Retirement Act. among the highest recorded in the made the change effective for deaths To retain group life insurance cover- last decade. age, the worker must make his pay- Private carriers were responsible * Prepared by J. A. Lazerson, Division ments concurrently with his Agency for 62 percent of total benefit pay- of the Actuary, Office of the Commissioner. employment. Bulletin. December 1957 23