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Federal Social Security and Related Legislation, 1953

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Federal Social Security and Related Legislation, 1953 Federal Social Security and Related Legzslation, 1953 by WILBUR J. COHEN* HE first session of the Eighty- studies that relate to or may affect programs and on necessary legislation third Congress, which ad- the social security program. in the health and medical fields. T journed on August 3, 1953, en- A private relief bill concerning the Section 4 of the Plan provides for acted legislation affecting various as- payment of retroactive benefits under the appointment of a Commissioner pects of the social security program. old-age and survivors insurance was of Social Security by the President Early in the legislative year-on vetoed by President Eisenhower. The with the advice and consent of the April II, 1953-the President’s Reor- President also sent to Congress two Senate. He “shall perform such func- ganization Plan No. 1 of 1953 became messages recommending changes in tions concerning social security and effective. The Plan created the De- old-age and survivors insurance. In public welfare as the Secretary may partment of Health, Education, and one he urged extension of coverage; prescribe.” Welfare, of which the Social Security in the other he asked that the sched- Section 8 abolishes the position of Administration is a part, and estab- uled rise in the contribution rate be Commissioner for Social Security. lished a new position-Commissioner postponed. The position had been created by ad- of Social Security. ministrative action in 1946 under the Two of the new laws amended the Department of Health, Educa- general authority of Reorganization old-age and survivors insurance pro- tion, and Welfare Plan No. 2 of 1946, which among visions of the Social Security Act. One Reorganization Plan No. 1 of 1953, other things abolished the Social Se- extended through June 30, 1955, the creating the Department of Health, curity Board. In 1950, Congress period in which wage credits are pro- Education, and Welfare, became ef- amended section 701 of the Social Se- vided for military service; it also ex- fective on April 11, 1953. President curity Act to provide that there tended, to cover deaths occurring be- Eisenhower had transmitted the plan should be a Commissioner for Social fore July 1955, the provision govern- to Congress on March 12.1 House Security in the Federal Security ing the time in which claims can be Joint Resolution 223, which provided Agency, appointed by the Adminis- filed for lump-sum payments based for the plan to take effect 10 days trator, who would perform such func- on the death of servicemen who die after enactment of the resolution, was tions relating to social security as the overseas and are reburied in this coun- approved by the House of Repre- Administrator should assign to him. try. The other amendment permits sentatives on March 18 and by the In recommending the Plan, Presi- State and local government employees Senate on March 30. dent Eisenhower stated that its pur- in Wisconsin who are covered under The Plan provides for the Depart- pose was “to improve the administra- the State retirement plan to be cov- ment to be headed by a Secretary, tion of the vital health, education, ered also under old-age and survivors assisted by an Under Secretary and and social-security functions now be- insurance. two Assistant Secretaries. It provides ing carried on . by giving them de- Among the legislative actions af- for a Special Assistant to the Secre- partmental rank. Such action is de- fecting the operation of the social se- tary (Health and Medical Affairs), manded by the importance and mag- curity program were (1) a provision appointed by the President by and nitude of these functions, which affect extending for 2 years the period for with the advice and consent of the the well-being of millions of our citi- exempting certain Mexican agricul- Senate from among persons who are zens. There should be an unremit- tural labor from old-age and survi- recognized leaders in the medical field ting effort to improve those health, vors insurance; (2) ratification of a with wide nongovernmental experi- education, and social-security pro- supplementary agreement with Italy ence. The Special Assistant has the grams which have proved their that provides, subject to further legis- responsibility of reviewing the health value.” lation, for arranging for coordination and medical programs of the Depart- of coverage periods under the old-age ment and advising the Secretary with Amendments to the Social and survivors insurance programs of respect to the improvement of those Security Act Italy and the United States; and (3) a Extension of credits for military provision permitting coverage under 1H. Dot. 102, 83d Cong., 1st sew. See service.-Under old-age and survivors Joint Hearings before the Committees on insurance, individuals who have State unemployment insurance laws Government Operations of the House of of seamen employed by the Federal Representatives and the Senate of the served in the active military or naval Government. Congress also adopted United States (Subcommittee on Reor- service of the United States at any legislation authorizing four important ganization), Mar. 16, 1953, and Hearing time since September 16, 1940, are, in before the Subcommittee on Reorganiza- certain circumstances, given wage -- tion of the Committee on Government * TechnicaL Adviser to the Commissioner Operations, United States Sen,ate, Mar. 23, credits of $160 a month for each of Social Security. 1953. month (or part of a month) of such Bulletin, December 1953 3 service. These credits are provided Act, which prohibits coverage under and local coverage, and this decision without any payment of taxes or old-age and survivors insurance for was sustained by the Conference appropriation of funds to the old-age employees who are in positions that Committee.3 and survivors insurance trust fund. are covered by a State or local retire- The 1953 amendment to the law ment system at the time coverage un- 0 ther Legislation (Public Law No. 269) extends the pe- der the Federal program is extended Mexican agricultural labor.-Pub- riod of miltary service coverage to the coverage group to which they lit Law No. 237, approved August 8. through June 30, 1955. Persons in belong. The amendment permits extended for 2 years-through De- service will get social security wage members of the Wisconsin retirement cember 31,1955--certain provisions of credits for each month of active duty fund, while retaining the protection the Agricultural Act of 1949. Among until that date. The previous law did of that fund, to be covered by old-age these provisions was the amendment not provide for wage credits for serv- and survivors insurance if the State to that act adopted in 1951, which ex- ice after December 31, 1953. so desires. The retirement fund covers cluded from the old-age and survivors The amendment also extends the most employees (other than teachers) insurance program service performed provision protecting the survivors of of the State and its political subdivi- by foreign agricultural workers under men and women who die outside the sions. contracts entered into in accordance continental United States while they The 1950 amendments to the So- with title V of the 1949 act.* are in the active military or naval cial Security Act included a provision Under the terms of the 1951 legisla- service and whose bodies are returned permitting old-age and survivors in- tion the exclusion was embodied in for burial or reburial to any one of surance coverage, under Federal- section 210 (a)(l)(C) of the Social the 48 States, Alaska, the District of State agreements, of State and local Security Act and the comparable pro- Columbia, Hawaii, Puerto Rico, or the employees not covered by a State or vision of the Internal Revenue Code. Virgin Islands. Lump-sum payments local retirement system. For some The legislation applies only to work- under old-age and survivors insur- years before 1950, as well as since that ers from Mexico. ance may be made when the death time, the Wisconsin retirement law Italian treaty.-On July 21, 1953, occurs in active service abroad before has contained a clear indication of the Senate ratiiled, by a vote of 86 to July 1955, if application for payment the State’s intention that its system 1, a supplementary agreement to the is made within 2 years of the date of be coordinated with the old-age and Treaty of Friendship, Commerce, and burial or reburial in this country. The survivors insurance system when pos- Navigation with Italy. Article VII of provision formerly applied only in sible, thereby providing its employees the supplementary agreement em- cases of deaths occurring before Jan- and the employees of its subdivisions powers the United States to enter in- uary 1,1954. with protection under both systems. to arrangements with Italy for com- Over the long run, potential bene- At the time of the enactment of the bining coverage periods under the At disbursements arising from the 1950 amendments, Congress indicated old-age and survivors insurance sys- amendments giving military service that it was of the opinion that no ac- tems of the two countries. The ratifi- credits for the years 1940-55 are esti- tion should be taken that might jeop- cation by the Senate was conditioned mated by the Chief Actuary of the ardize the continuance of existing on the understanding that the ar- Social Security Administration to State and local retirement systems. rangements entered into would be amount to $750 million. The cost is The Wisconsin retirement system is made by the United States only in currently borne by the trust fund; unique in that it specifically provides conformity with provisions of stat- Congress did not authorize appropri- for integration with the social secu- ute.5 Article VII provides as follows: ations for this purpose in the 1950, rity system.
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