of course, most common, but veter- ans’ preference provisions of many Notes and Brief Reports civil-service systems mean that a Selected Sources of Money major support and 700,000 to supple- large proportion of retired govern- ment retirement or survivor benefits ment employees are likely to receive Income for Aged Persons, insufficient for their needs-and some veterans’ payments also. In addition, June 1959* of those who were dependent on chil- many Federal Government employees Substantially all aged men and 7 dren or private charity or supported have outside employment as well and in 8 aged women in the United States in a public institution. build up rights to old-age, survivors, had some cash income from emPlOY- The veterans’ programs and the re- and disability insurance benefits, and ment or a public income -mainte- tirement programs for railroad and many State and local government nance program in mid-1959 (table 1). government employees together pro- employees have dual coverage. A check for old-age, survivors, and vided income for about 1.8 million Private pensions under insured and disability insurance benefits went to persons who were not receiving old- noninsured group plans were paid to 68 percent of the men and 58 percent age, survivors, and disability insur- a not inconsiderable number of per- of the women aged 65 and over-g3/ ance and 1.1 million who were. Of sons aged 65 and over, an estimated million aged persons in all. In addi- the total of 2.9 million, about one- 11/amillion at the end of 1958-about tion, there were 1.4 million persons fifth had some earnings and about 6 i/4 million higher than the number a who could have drawn benefits except percent received both a veteran’s year earlier. Probably more than 1 for employment-about 1.1 million payment and a benefit under a re- million of these pensioners were old- insured workers and about 300,000 tirement program for railroad work- age, survivors, and disability insur- married women whose husbands had ers or Federal, State, or local govern- ance beneficiaries. not yet retired. ment employees, so that the undupli- In addition, at the start of 1959, Roughly 2 million of the benefici- cated total was less than 2.8 million. according to a special study con- aries are estimated to have had some Most veterans, for example, are likely ducted by the Institute of Life Insur- earned income as workers or wives of to earn insured status under a retire- ance,l there were 374,000 individual workers. Some of them were exempt ment program by virtue of their em- from the operation of the retirement ployment. Coverage under old-age, 1 See The Tally of Life Insurance Sta- test under old-age, survivors, and dis- survivors, and disability insurance is, tistics, September1959. ability insurance because they had reached age 72. Many beneficiaries Table l.-Estimated number of persons aged 65 and over in the United States with earnings, however, had only receiving money income from specified sources, by sex, June 1959 1 part-time or intermittent employ- ment. Of all aged persons with work Number (in thousands) Percentage distribution experience during 1958, only 2 in 5 Source of money income 1 worked at full-time jobs for at least Total 48 weeks during the year (table 2). 1. Population aged 65 and over, total ______15,520 7,030 8.490 160.0 100.0 100.0 About 3 million aged persons had 2. Employrnent.-...--.------..-.------. 3,920 2,2w 1,660 25.2 32.1 19.6 paid jobs in June 1959, and an esti- Earners..~~----.~.~..~~~~.-.---.~~~~~~~~~~-.-~--~. 3,030 2,260 770 19.5 32.1 9.1 Nonworkingwivesofearners...--.------..----. 890 . __ _. 890 5.7 ______._ 10.5 mated 900,000 women not themselves 3. Social insurance and related programs J.______. .-_-__ 11,390 5,600 5,790 73.4 79.7 68.2 Old-age, survivors, and disability insurance------. 9,720 4,800 4,920 “E 68.3 58.0 at work were married to men with Railroad retirement program...... ______--- ____ 610 310 300 kl 3.5 paid employment. Of this 3.9 million Qovernment employees’ retirement programs...-.. 930 460 470 6.0 5.5 Veterans’ compensation and pensions ______1,390 790 600 9.0 11:2 7.1 with income from employment, it is 4. Public assistance 4. . . ..______--- . ..______...___. 2,480 950 1,530 16.0 13.5 18.0 5. No money income or income solely from other sources. 1,090 50 1,040 7.0 .7 12.2 estimated that more than two-thirds __---__ received some support from a public 6. Income from more than one of sources in lines 2-4--. 3,360 OASDI and employment 5__.______._..______1,980 XE 1,530970 21.612.8 14.3 26.0 18.011.4 income-maintenance program - if Other programs and employment 5___.....______‘420 4.3 6.0 3.1 Old-age assistance and OASDI.-- ...... ______Eli 380 % 4.2 5.4 3.3 not old-age, survivors, and disability Other assistance and OASDI or related programs-. 40 20 29 .3 .3 .2 insurance, then another retirement I I I I Program or the pension and compen- * Data relate to the continental United States, employees and veterans are not entirely consistent sation programs for veterans. The to Alaska and , and to Puerto Rico and the with those published previously because of the Virgin Islands. Persons with income from sources availability of new data. Estimates of women others, most of whom were eligible to specified may also have received money income with benefits under these programs include the from other sources, such as interest, dividends, estimated number of beneficiaries’ wives not in draw benefits when they retired, in- private pensions or annuities, or cash contributions direct receipt of benefits. from relatives. 4 Old-age assistance recipients and persons aged clude the bulk of the most favorably 2 Because persons frequently have income from 65 and over receiving aid to the blind or to the situated among the aged. more than one of the sources specified, the sum of permanently and totally disabled; includes a small persons shown on lines 2-5 exceeds the total number number receiving vendor payments for medioal At the other extreme are the aged in the population (line 1). The estimates of persons carebut nodirect cash payment. with income from more than one source are devel- 6 Excludes a small number with income from Persons who were dependent on pub- oped from survey data and are therefore subject employment and OASDI and also a related program; lic assistance-1.7 million for their to sampling and reporting errors, as well as the the flgurea on line 3 have already been adjusted for error inherent in projecting survey tidings to overlap among the Insurance and related programs. -- additional population groups and different dates, Source: Estimated in the Division of Program errors that are relatively more significantfor small Research on the basis of published and unpublished * Prepared by Lenore A. Epstein, Divi- estimates. data from the Bureau of the Census, the Bureau of 8 Persons with income from more than one of the Labor Statistics, and agencies administering in- sion of Program Research, ORice of the programs listed are counted only once. Estimates Commissioner. of beneficiaries under programs for government come-maintenance programs.

Bulletin, 13 .annuities and 18 1,O0 0 annuities which the beneficiary did not pay Table 2.-Estimated number of per- elected as settlements under life in- was an item for 1 in 9 of the couples sons aged 65 and over in the conti- nental United States who worked in surance policies paying income to and 1 in 6 of the others. No informa- 1958, by extent of employment and persons aged 65 and over. No infor- tion was collected on the amount of by sex and age mation is available on the other types noncash income received. r [Soninstitutional population; in thousands] of income received by these annui- Monthly benefit payments under 1 tants. Only 1 to 2 percent of the aged the old-age, survivors, and disability I Persons aged 65 and over beneficiaries covered in the 1957 sur- insurance and railroad programs I with work experience vey of old-age and survivors insur- were up from $7.3 billion in 1958 to Total -- num- Part-time ance beneficiaries - generally those an annual rate of $8.4 billion by June ber Full-time sex aged jobs 1 jobs 3 who also had asset income in the 1959. The rise resulted in part from and age 65 Any form of interest, dividends, or rents- the steady increase in the number of :zet work ’ reported receipt of such annuities. beneficiaries but even more from the An owned home is, of course, an increase of about 7 percent in old- important resource of aged persons. age, survivors, and disability insur- According to the latest Survey of ance benefits, effective , Total.. 14,870 4,090 1,670 Consumer Finances, 66 percent of all and the lo-percent increase in rail- Men..--. 6.750 2,930 1,310 65-69 ___..__ 2,640 1,6M nonfarm families with head aged 65 road retirement benefits, effective in 70andover., 4,llOj 1,310 and over owned their homes early in June. Public assistance to the aged 1959.2 increased also, from $1.7 billion to an The extent of home ownerership annual rate of almost $1.9 billion, partly as a result of changes made by among old-age and survivors insur- 1 Work at any time during the year on part-time ance beneficiaries and its relation to the 1958 amendments to the Social or full-time basis. 2 Jobs providing 35 hours or more a week in a the money-income level were ana- Security Act in the provisions for majority of the weeks worked in the year. lyzed in a recent BULLETIN article.3 Federal matching. Total payments 3 Jobs providing less than 35 hours B week in a majority of the weeks worked in the year. Data that have recently been sum- to aged veterans undoubtedly in- Source: Bureau of the Census, Czlrrel~t Population Reports, Labor Force, Series P-50, No. 91, “Work marized on receipt of noncash in- creased as more and more World War Experience of the Population in 1958” (, come round out the picture some- I veterans reached age 65. It is not 1959). what. On the assumption that home- feasible at this time to estimate the ownership is always “profitable,” it change in rate of payments under sents 75-85 percent of the actual could be said that in 1957 about four- this or the public employee retire- aggregate rather than 80-90 percent fifths of the beneficiary couples and ment programs or in other types of as previously assumed. three-fifths of the nonmarried aged income of aged persons. It seems Estimates based partly on reports beneficiaries had some noncash in- highly probable, however, that the on earnings covered under old-age, come-defined to include homeown- rate of increase in the aggregate in- survivors, and disability insurance ership, other housing furnished with- come of the aged from all sources was indicate that in 1958 earnings of aged out cost, food raised or received as a less than that in payments under the persons probably aggregated $9.5- gift or Pay, gifts of clothing in signifi- social security and railroad worker $10.5 billion. Payments under pri- cant amounts, and medical care pro- programs. vate pension plans and individual vided free or at the expense of some In 1958 the aggregate cash income annuities to persons aged 65 and over agency or person other than the of aged persons probably exceeded aggregated roughly $1.5 billion. beneficiary. Actually, about 80 per- $25 billion and may have been close In summary, the money income of cent of the homeowners reported a to $30 billion. An earlier estimate of aged persons was distributed by net gain for the Year in the sense that $24-$27 billion was calculated on the source roughly as follows in 1958: the estimated rental value exceeded assumption that the average total in- Amount their current housing expenses. come of aged persons was the same Source (in billions) Only 12 Percent of the couples and in 1958 as in 1957 and that an aggre- Total _----_---_------_ $25.0-30.0 about one-fourth of the other aged gate income figure based directly on Social insurance and related beneficiaries had noncash income survey data of the Bureau of the programs -_~~--~-~ ____~_ 8.8-9.3 OASDI -~~~-_--.-.._~.-__~-_ 6.7 Only from sources other than home- Census represented about 80-90 per- Railroad retirement ------.6 ownership. A fourth of the couples cent of the actual aggregate. The Veterans’ programs and gov- and less than half as many of the revision takes account of earnings ernment employees’ re- other aged beneficiaries had some estimates and the fact that data now tirement _--~_----__--_ 1.5-2.0 Public assistance _----~_----_ 1.7 home-produced food. Clothing gifts suggest some rise from 1957 to 1958 Private pension plans and indi- were negligible, but medical care for in the average income of aged per- vidual annuities ------_. 1.5 sons. Furthermore, analysis of the Employment __------___-_ 9.5-10.5 Other1 ------______3.5-8.0 2 Federal Reserve Bulletin, September Internal Revenue Service tabulations 1959. of 1956 individual income-tax returns 1 Residual ; includes i n t e r es t, dividends. 3 See Lenore A. Epstein, “Money In- for persons aged 65 and over suggests rents, and contributions. come of Aged Persons: A lo-Year Review, 1948 to 1958,” Social Security Bulletin, that an aggregate income figure Social insurance programs by their June 1959, page 8. based directly on survey data repre- nature make payments that are lim-

14 Social Security ited in amount. Thus, despite the fact Estimates of workmen’s compensation payments, by State and type of insur- that the number of aged persons with ance, 1958 and 1957 1 income from earnings was only one- [In thousands] third the number receiving PSYXHentS under social insurance and related 1958 I 1957 - __ Per- programs, the earnings of employed centage persons were larger than payments InSur- Insur- chanse ante ance in- under such programs and almost as 10sses state Self- 1OSSOS stnte self- total large as total payments under all State paid by C;wd insur- paid hyl C;t~d insur- Pay- Total private ante Total private ance merits, pub 1i c income - maintenance pro- insur- burse- PRY- insur- burse- Pay- 1958 ance mentsr merits’ ance ments 3 merits* from grams, including public assistance. car- 1957 riers 2

Total ______I t-4.8 Alabsma ______-__ 6,307 5,047 .-.-...- 1,260 5,550 4,4401.-...... Arizona ______.____. -._-. Q.IRi 229 8,600 253! 8,099 Arkansas ._.___ -_--. _____ 6,703 5,% 2’” 1,210 6,370 5,[email protected].. 1,156 Workmen’s Compensation California--.-.---. _____ 119,087 78,985 27,772 12,330 107,200 71,361 24,739 11,100 Colorado...... ~~~ 8,896 2,936 5,150 810 8,039 2,891 4,413 730 Payments and Costs, 1958* Connecticut...... _._ 17,n44 16,059' .__._... 1,765 16,35+...v 1,315 Delaware.--.--.--- ______/ 1,651 1,321 ______330 1,234,-ww.ew. 320 District of Columhia~~... 3.757 3,477 ___.____ 3.186;...... w 290 Payments for wage loss and medi- Florida -.----_- .____.. 26;709 24,534 ______2,E 22,017/.-....-d 1,975 cal benefits under workmen’s com- Georgia-..-.----...-~~... 10,334 8,834 ______1,5Oil 8,3041--....-. 1,410 pensation programs continued to rise Idaho~..-..----..-.-.-... 4,406 2,892 999 515 4,084 2,8X1 791 475 Illinois.-- --- ._._ ___. 58,125 47,753 -._____- 10,372 46,340i . . . ..__. 10,204 in 1958, against a backdrop of con- Indiana---.-.---.- ._.___ 16,860 14,300 -.___.-. 2,500 14,217 .__.___. 2,475 flicting economic developments. As Iow-a-...------..-.-.--.. 7,869 6,294,..-.-.-- 1) 575 6,394 __.___ -- K!HX3%S ._._.___.____._.._ 10,308 E,24Xi-.-...-. 2,060 7,850~~..~.... Es the economy dipped downward, (1) Kentucky-.....~...... 11,617 1,902ie.e.eee. 3,715 7,m..-.- 31670 Louisiana~...... _ ___, 28,700 24,320,..-...-. 4,380 22,129 _._.____ 3,985 the number of workers covered by Maine-.-- ...... _._._. 2 771 2,411 -.-...-~ 360 2,294 ___._.__ 345 workmen’s compensation in an aver- MWYidIld... ..-. .- ._____, 16:X93 12,779 1,774 2.34Oi 2,030 Massachusetts.. ._.___ ~. 37,858 35,053,..-..... 2,805 2,805 age week dropped an estimated 11/2 Michigan -...--I 40,081 10,995 38,287 25,3!u 2,576 10,319 million to a total of 401/2-41 million; Minnnsota...... -.-~- .I 19 ) 202 3,230 li.501 14,561,...-.-e. 2,940 -$i::: (2) covered payrolls declined a little Mississippi ...... _-_ _. / G,200 5,660,.....--. 540 5,673 5,149 ..-.--. 534 +9.1 Missouri...... I 20,258 17,4631--.....m, 19,502 16,727 ..-.--. 2,775 t3.9 more than 1 percent to an estimated MOllt:Xl a...... _._ ... 5,403 1,211~ 3,173; %;~I 5,332 994 +.6 Nebraska ...... 3,976 3,864,...... 3,675 105 +a.2 $183 billion; and (3) the number of Nirwda ...... _._.. 4,333 41 4,124 205 4,326 205 New Hampshire.- .____., 2,671 2,F21!...-..e- 50 2,795' 2,74&?!!"~ disabling work injuries-compensable Ncw Jcrscy~.-- . . .._ -__. 54,113 47,551/.--..-.- 6 562 49,287 6,3ii and noncompensable - reported by NW Mexico-...... ____.. 5,959 5,554;--e.-.ee '405 5,511 5,136 I ______375 42,959 ___._ ._. / the Bureau of Labor Statistics was Nen York __...... ______‘g$;I 95,4m 40,0911 19,757 151,948 93,302 39,319 19,327 North Carolina- ___. 10,093 ______2,120 11,698 9,593 --.-_-.- 2,015 some 4 percent less than the 1957 North Dakota _._.______.. 2:ml 10 2,150. 2,072 estimate, in part because of an im- Ohio--...-.-.-.-.-...---- 70,064 103 66,053 9,908 75,502 9,m Oklahoma....--...... -.-- 15,466 12,213 2,123 1,130 15,019 1,265, +3.0 provement in accident rates. Oregon.--~...----..~~~~~. 22,092 2,114 19,978 _.__...-- 19,323 .__. __ +14.3 Pennsylvania -.- _.___._. 43,281 28,340 3,720 11,221 43,963 11,732 -1.6 These recession effects were offset Rhode Island- ._____.__.. (5,538 6,227 _.___. -. 311 6,470 370 +1.1 when (1) average wages, on which South Carolina . .._._.__.. 6,471 5,306 ___-_._- 1,165 5,698 1,065 +13.6 cash benefits are based, went up 3 South Dakota...... _.__.. 1,349 1,134 _____._. 215, 1,106 175 t-22.0 TlSlll~SSW _.___._...... _. 13.138 10,536 _.______2,600 12,512 percent from 1957 to 1958; (2) medi- Texas-.-.---.---.....-.-. 59,727 59,727 _.______-_..- 58,423 cal care prices advanced 5 percent, Utah .___.______..._._... 3,300 1,167 1,533 550 3,250 Vermont ._.______.. --._. 1,665 1,515 _.______150 1,655 according to the consumer price in- Virginia.._..-_._-.------. 10,868 8,873 ___.____ 1,895 10,101 Washington ______-_-_. __ 21,996 567 21,069 360 20,877 dex of the Bureau of Labor Statistics; West Virginia-..... ___.__ 13,966 56 13,023 3,:: 13,715 and (3) four States enacted legisla- Wisconsin.. ..-. _-_-___ _ 18,634 15,500 _._...-- 18,637 Wyoming--..-.-.-._--.-. tion increasing cash benefits for all 1,32i 1 1,326 ______1,386 Federal workmen’s com- types of disability, and in a third of pensation: Civilian employees 5- _. the States the full force of liberal- Other6 ______-_- izing amendments passed in 1957 was first felt in 1958. 1 Data for 1958 preliminary. Calendar-year funds; compiled from State reports (published and The net effect of these counteract- figures, except that data for Montana and West unpublished) and from the Spectator; estimated Virginia, for Federal workmen’s compensation, and for some States. ing influences was a rise of $51 mil- for State fund disbursements in Maryland, Nevada, 4 Cash and medical benefits paid by self-insurers, lion in w o r km en ’ s compensation North Dakota, Oregon, and Utah represent fiscal plus the value of medical benefits paid by employers years ended in 1957 and 1958. Includes benefit carrying workmen’s compensation policies that do benefit payments to a total of $1,113 payments under the Longshoremen’s and Harbor not include the standard medical coverage. Esti- Workers’ Compensation Act and the Defense Bases mated from available State data. million in 1958. Aggregate benefits Compensation Act for the States in which such s Payments to civilian Federal employees (in- as a proportion of covered payroll payments are made. &ding emergency relief workers) and their r Net cash and medical hene5ts paidby private dependents under the Federal Employees’Com- reached 0.61 percent-the highest insurance carriers under standard workmen’s pen&ion Act. compensation policies. 1957 data primarily from 6 Includes primarily payments made to depend- the Spectator: Insurance by Statea of Fire, Marine, ents of reservists who died while on active duty in * Prepared by Alfred M. Skolnik, Divi- Casualty,, Surety and Miscellaneous Lines, 86th the Armed Forces, to individuals under the War annual issue. For 1953, unpublished data furnished HazardsAct, War Claims Act, and Civilian War sion of Program Research, Office of the by Chilton Company, publisher of Spectator. Benefits Act, and to cases involving Civil Air Patrol Commissioner. sNet cash and medicalbenefits paid by State personnel.

Bulletin, December 1959 15