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Diagnoses in Disability Freeze Allowances, July 1955–December

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Diagnoses in Disability Freeze Allowances, July 1955–December employment trust fund-a fund of tober, and to $200,000 in November, in 1957, and interest earned $224 mil- essentially different character and where it remained at the end of lion. Benefits of $645 million were purpose from the old-age and survi- 1957. paid during 1957. The administra- vors insurance trust fund. The form Marketable public issues were first tive expenses of the civil-service re- ula remained the same as the “old” acquired for the disability insurance tirement program are chargeable not formula for the old-age and survivors trust fund in September 1957, when to the fund but to the General Treas- insurance trust fund. The unemploy- $10 million was invested in 4-percent ury. At the end of the year the in- ment insurance trust fund therefore Treasury certificates of indebtedness vested assets of the fund totaled acquired special obligations in 1956 and $5 million in 4-percent Treasury $7,703 million. at the same rates as the old-age and notes. In October, $5 million was At the end of 1957, all types of survivors insurance trust fund invested in the Treasury 4-percent special Government obligations out- through October. Obligations ac- bonds of 1969; $7 million in 33/4-per- standing amounted to $45,799 million, quired from November 1956 through cent notes was added in November 17 percent of the outstanding inter- September 1957 carried 2%~~percent and $5 million in the Treasury 37/8- est-bearing Federal debt. Together, interest, in October none were ac- percent bonds of 1974 in December. the three social security funds held quired, and the acquisitions in No- None of these acquisitions were dis- 59 percent of all special obligations, vember and December carried a 27/8- posed of during 1957. about the same proportion as in 1955 percent rate. The net total acquired Investments of the unemployment and 1956. Most of the remainder was in 1957 amounted to $58 million less trust fund in other than special is- held by related trust funds, including than the year’s redemptions of spe- sues must bear interest at rates at the civil-service retirement fund (16 cial issues; the difference, plus the least equal to the rates payable on percent), the several veterans’ in- bulk of the annual increment to the special obligations. From November surance funds (15 percent), and the fund, was invested in public market- 1953 when this fund held $964 railroad retirement account (7 per- able issues (table 1) . Of the total millions in Treasury bonds, through cent). investments of $31,276 million in the March 1957, the fund made no fur- portfolios of the three funds at the ther acquisitions of public issues. In end of the year, $27,137 million or the last 3 quarters of 1957, however, 86.8 percent was invested in special the fund added $95 million in Treas- Diagnoses in Disability obligations-$19,099 million at the ury public marketable obligations at Freeze Allowances, July al/z-percent interest rate, $7,817 mil- interest rates of 31/2 percent ($10 1955-December 1956 * lion at 2% percent, and $221 million million), 3% percent ($15 million), at 27/8 percent. 33/4 percent ($15 million), 37s per- The Social Security Amendments of The old-age and survivors insur- cent ($5 million), and 4 percent ($50 1954 included the provision that a ance trust fund acquired a net total million) (table 1). worker who has a severe impairment of $442 million of public marketable The Treasury also manages several that results in “inability to engage obligations in 1957;s $63 million was other social insurance and related in any substantial gainful activity” added in Treasury bonds and $405 trust funds. The principal ones are may have his social security account million in Treasury notes. Holdings the railroad retirement account and “frozen.” This provision makes it of Treasury certificates of indebted- the civil-service retirement fund. In possible, in determining eligibility for ness (not to be confused with Treas- 1957 total receipts of the railroad re- and the amount of benefits payable ury special certificates of indebted- tirement account amounted to $721 at retirement or death, to disregard ness) were reduced by $33 million million-$610 million in contributions extended periods in which a worker during the year. In August, for the and $111 million IO in interest, Rail- had little or no covered earnings be- first time in its history, the fund ac- road retirement benefits of $693 mil- cause of a disability that made it im- quired a total of $11 million in Treas- lion were paid in 1957; administra- possible for him to work. Before this ury bills, the shortest-term Govern tive expenses were $8 million. At amendment was adopted, such peri- ment security. Treasury bills are usu- the end of the year the total assets ods of disability could result in loss ally of go-day maturity; the two of the account were $3,660 million, of of insured status or a reduction in series in which the fund invested, which $3,596million was invested and the benefit amount. however, had maturities of just over $64 million was undisbursed cash Before a worker can have his ac- and just under 8 months, respective- balance. The interest rate for this count frozen he must have worked ly. Of the first, a tax-anticipation fund’s investments is set by law at in covered employment for at least series, the fund acquired $6 million, a minimum of 3 percent. 5 years out of the 10 years immedi- which it still held at the end of the Contributions to the civil-service ately preceding the beginning date year. The fund’s original acquisition retirement fund totaled $915 million of the disability; at least li/2 years of $5 million of the second series was of covered employment must have increased to $22 million in Septem- s This amount does not include $1 mil- been within the 3 years immediately ber, dropped to $20 million in OC- lion of unamortized premium, before the beginning date of the dis- 10 This amount excludes $2 million trans- ability. The disability must have ferred to the old-age and survivors insur- s The total includes accrued interest ance trust fund under the financial inter- l Prepared in the Division of Program purchased and net unamortized premium change provisions of the Railroad Retire- Analysis, Bureau of Old-Age and Survivors and discount. ment Act. Insurance. 20 Social Security lasted at least 6 months. For the final action on 399,000 applications does not automatically constitute dis- purpose of the freeze, disability is for the freeze; 207,000 persons were ability. He must also meet the same defined as (1) “inability to engage found to have met the requirements. work requirements as for the dis- in any substantial gainful activity by Under the disability insurance pro- ability freeze and, in addition, be reason of any medically determinable visions adopted in 1956, cash benefits fully insured.1 Most of the 118,000 physical or mental impairment which were first payable for July 1957 to can be expected to result in death disabled workers aged 50-64. By De- 1 Through 1960, all workers qualifying or to be of long-continued and in- cember 31, 1957, such benefits had for the disability freeze will be fully in- definite duration,” or (2) “blindness.” been awarded to 179,000 persons. To sured. Beginning in 1961, however, a By December 31, 1956, when the be eligible for cash benefits, the worker will generally need more than 5 provision had been in operation for worker must meet the same definition years of covered employment to be fully insured, and therefore some workers who 18 months, the Bureau of Old-Age of disability used for the freeze, ex- qualify for the freeze will not meet the and Survivors Insurance had taken cept that statutory blindness in itself work requirements for disability benefits. Table 1.-Disability freeze allowances: Percentage distribution of workers for whom a period of disability was allowed, by diagnostic group and primary diagnosis and by age 1 and sex, July 1955-December 1956 Male Inter- Diagnostic group and primary diagnosis nation al eodl Undei 65 am Unde 65 am Total Under 65 and Total 50 50-64 over Total 50 aHi over 50 over ___--_ Totalnumber-----..--._..-.-.~.~.-~~.~~------_~~-~-~ 37,044 43,344 17,518 46,182 76,971 36,3E ml,607 40,061 3O,Oi3 7,041 16,911 6.121 Total percent --____________----__-..--.-.------ ___-_-_ 100.0 100. f 100.0 100. ( 100.0 100.f 100.0 100. f 100.0 1OO.C 100.0 10Q.O Infective and parasitic diseases ___________-__-___ 001-133 11.9 22. c 10.6 5.i 13.0 23.5 11.8 5.3 12.7 3.3 2.2 Pulmonary tuberculosis- _____________._.. ________ 002 7.9 16. C 6.6 3.3 17.E 7.4 3.5 9.8 1.7 1.1 General paralysis of insane-- _ __._._ - _._.___.______ 2.c 1.3 ::: .9 Other _____.______________-----..... --_.-- _.________ ..!!I- i:$ 3.1 2.7 1:: 2.9 ;:i i:o” 1:: 2.C 1:: :i Neoplasms ._.__________________________ -- .__..__ la-239 4.4 3.2 5.4 2.E 4.2 3.1 5.1 5.9 4.3 7.2 4.2 Allergic, endocrine system, metabolic, and nutritional diseases _________________-_- _.____ 24(t289 2.8 1.4 2.9 3.8 2.5 1.4 2.6 3.5 4.4 1.6 5.0 5.8 Diabetes mellitus ___________._._._.
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