1959 Amendments to the Railroad Unemployment Insurance

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1959 Amendments to the Railroad Unemployment Insurance differ much from the changes in 1954 of $0.2 million (10 percent) from June Conclusions or 1949, although the relative level of 1958. (In 1954 and 1949 the State’s There are many reasons explaining assistance in the fourth quarter of expenditures for general assistance the relatively minor impact of the 1958 remained below that of the 2 rose during the third quarter by more temporary unemployment compensa- previous recession years (table 4). than 15 percent.) Temporary unem- tion program on the general assist- During this period, the number of ployment compensation benefits in ance caseloads, even in those States persons receiving temporary unem- Pennsylvania during September that provide general assistance to un- ployment compensation benefits amounted to $9.8 million. employed persons. First, there are dropped consistently as the number many eligibility conditions other than of persons exhausting rights to the Supplemental Unemployment Benefits financial need that must be met, such temporary benefits rose sharply. Some as residence requirements and Prop- of those who exhausted their rights The supplemental unemployment erty limitations, and that may make under the temporary program were benefit plans, first introduced on a some persons or families ineligible for subsequently added to the general large scale in 1955, are another factor general assistance even though they assistance rolls. The Pennsylvania contributing to the decline in general need financial aid. Then there is the welfare agency, for example, reported assistance during the 1958 recession, important consideration of the avail- that by October the number of per- particularly in the 12 industrial ability of State and/or local funds. sons added to the general assistance States mentioned. At the beginning Practically all State and local govern- rolls because they had exhausted of the recession, some 2 million work- ments use “closed end” appropria- their benefit rights under the tempo- ers - principally automobile workers tions for general assistance. In other rary program exceeded the number and steelworkers - were covered by words, the dollar amount available removed from the assistance rolls be- these plans. In most instances, the for general assistance is determined cause of the receipt of these benefits. supplemental benefits plus the State in advance (annually or biennially) The gap widened in November and unemployment insurance benefits by specific appropriations. Occasion- again in December. provide 65 percent of an unemployed ally, some States have special funds It is important, however, to com- worker’s normal take-home pay. that can be made available to local pare the magnitudes of general as- Steelworkers could have received the governments in an emergency. sistance and temporary unemploy- supplemental benefits for a maximum Because of these limits on the dol- ment compensation expenditures. In of 52 weeks, and automobile workers lar amounts that State and local gov- September the temporary unemploy- could have received them for a maxi- ernments may spend on general as- ment compensation program paid $92 mum of 26 weeks (increased to 39 sistance, only persons most critically million in benefits, of which $74 mil- weeks in September 1958). After a in need can be added to the general lion was paid in the 12 States. Gen- worker exhausts his State unemploY- assistance rolls when there is a sharp eral assistance expenditures during ment insurance benefits, the amount rise in the number needing financial September in these States amounted provided by the supplemental unem- help. As a result, the amount of the to $16.8 million - $1.8 million less ployment benefit plans is increased to payment to the recipients on the rolls than in June. The size of the decline 65 percent of take-home pay, within must often be lowered in order to indicates that only a small proportion certain dollar maximums. permit the addition of other critically of the temporary unemployment com- Data showing total supplemental needy persons to the assistance rolls. pensation benefits may have affected unemployment benefits in 1958 or the Still other needy persons may receive the general assistance caseloads. Yet total number of persons receiving aid in the form of surplus foods and without the temporary unemployment these benefits are not yet available. occasionally some assistance to meet compensation programs, general as- The supplemental benefits amounted special needs, such as medical care sistance expenditures from June to to $25.0 million in 1957, compared and funeral expenses. September of 1958 might have in- with $5.0 million in 1956. The AFL- creased, possibly as much as they did CIO Collective Bargaining Report for in the 1949 and 1954 recessions. The December 1958 shows that supple- “real” decline in general assistance mental unemployment benefit plans expenditures from June to September at the three largest automobile manu- 1959 Amendments to the 1958 may therefore have been more facturing companies paid $33.7 mil- Railroad Unemployment than the $1.8 million that is shown in lion in benefits during the first 8 Insurance Act* table 4. months of 1958. The steelworkers, One State assistance agency - reporting on all their supplemental Public Law 86-28) signed May 19, Pennsylvania - reported that the unemployment benefit plans com- 1959, included provisions amending third-quarter decline in general as- bined, estimate that benefits totaling the Railroad Unemployment Insur- sistance expenditures was attribut- $45 million were paid from September * Prepared in the Office of the Director able primarily to the temporary un- 1957 to June 1958. Altogether, the of Research, Railroad Retirement Board. employment compensation program. AFL-CIO estimates that more than 1 For a summary of the provisions General assistance expenditures in 300,000 unemployed workers received affecting the Railroad Retirement Act, see “1959 Amendments to the Railroad Retire- that State during September 1958 supplemental unemployment benefits ment Act,” Social Security Bulletin, July amounted to $1.8 million, a decline in 1958. 1959. Bulletin, August 1959 19 ante Act. The legislation increases benefits are retroactive to at least Publication No. 373-1959.) Wash- benefit rates for both unemployment July 1, 1958. For 10 -year -service ington: U. S. Govt. Print. Office, and sickness, provides additional un- beneficiaries who exhausted benefit 1959. 269 pp. $1. employment benefits, raises the quali- rights in 1957-58, they are retroactive Papers presented at two institutes. fying earnings requirement, and im- to January 1, 1958, and for less-than- Includes chapters on ecology of men- tal health, origin and development of proves the financing provisions. The lo-year beneficiaries, temporary ex- mother-child relationships, the family increases in daily benefit rates, aver- tended benefits may be paid tat the health clinic, social work consultation aging about 20 percent, result from a old rates) for unemployment occur- in public health, and mental health combination of a revised rate sched- ring as early as June 19, 1958. consultation. ule and a change in the rate guaran- Effective with the start of the 1959- CHILDREN’S BUREAU. The Changing tee. The law provides that, retro- 60 benefit year, creditable base-year Scene in Child Welfare. Report of active to July 1, 1958, the benefit rate compensation of at least $500 (rather a Conference with State Welfare is not less than 60 percent (rather than $400) is required to qualify for Administrators and Child Welfare than 50 percent) of the employee’s unemployment or sickness benefits. Directors. (Child Welfare Reports, daily rate of pay for his last railroad The maximum on creditable and tax- No. 9.) Washington: The Bureau, employment in the base year, subject able compensation is raised from $350 1959. 61 pp. to a new maximum of $10.20. Thus, a month to $400, effective June 1,1959 Includes The Children’s Bureau at the maximum rate, benefits for a -a change corresponding to that for and the Welfare of Children, by Katherine B. Oettinger, and A Blue- full 14-day period of unemployment the retirement program. Also effective print for Re-Tooling for Child Wel- or sickness now amount to $102, or June 1,1959, the schedule of employer fare, by Mildred Arnold. Limited free $51 a week, Two provisions raise contribution rates (which relates distribution; apply to the Children’s unemployment payments (subject to these rates to the balance in the rail- Bureau, Social Security Administra- the maximum limits for the year) ; road unemployment insurance ac- tion, Washington 25, D. C. one removes the restrictions on cred- count) was revised to provide a maxi- iting Sundays and holidays as days mum rate of 33/4percent (rather than General of unemployment, and the other elim- 3 percent) . Contributions are now inates the distinction between first payable at the new maximum rate. BARCLAY, GEORGE W. Techniques of Population Analysis. New York: and subsequent unemployment claims The Railroad Retirement Board esti- John Wiley & Sons, Inc., 1958. 311 periods, making all days of unemploy- mates, however, that retroactive pay- PP. $4.75. ment in excess of four compensable ments will total more than $90 mil- Includes discussion of questions in the earlier period on the same basis lion, and the balance in the railroad that can be answered by censuses and as in the later period. What was, in unemployment insurance account had vital statistics. effect, a l-week waiting period for fallen to less than $50 million even CANADA. DEPARTMENT OF LABOR. Sur- unemployment benefits is thus wiped before the amendments became effec- vey of Married Women Working for out; no corresponding change was tive. It will be necessary, therefore, Pay in Eight Canadian Cities. Ot- made for sickness benefits. for the Railroad Retirement Board to tawa : Edmond Cloutier, Queen’s Extended unemployment benefits use the authority contained in the Printer and Controller of Station- are provided on a permanent basis amendments that permits the rail- ery, 1958.
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