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Old-Age Assistance Recipients with Re- Individual States Was Not Used Old-Age Asszstance Recipzents: Reasons for Nonentitlement to Old-Age and Survivors by CHARLES E. HAWKINS* Even under the 1950 amendments to the Social Security Act, known to have had no employment there are many aged persons in this country who are not able of any kind after 1936. So that these to qualify for benefits under the old-age and survivors insurance interviews could be conducted with a program. Some of them, as their opportunities for employ- minimum expenditure of time and ment and ability to work decline, are forced to apply for old- travel, it was desirable that the recip- age assistance. Before the amendments, of course, the number ients chosen be those whom the of such persons tvas greater. The reasons that needy aged assistance agency personnel would be persons who were added to the old-age assistance rolls in April seeing for other reasons. In most 1949 were not getting insurance benefits are examined in the States, eligibility for old-age assist- following pages. ance is reviewed at 12-month inter- vals. Cases added to the rolls in April 1949, and not subsequently removed,. I’VE out of every 6 aged persons benefits were accordingly of great con- were accordingly generally due for added to the public assistance cern to public assistance agencies review in March or April 1950, and F rolls in April 1949 were not en- during this period. that time was selected for the inter- titled to old-age and survivors insur- Current factual data on the subject views. A sample was selected from ance benefits. The insurance provi- were needed both for immediate use the group who had been added in sions of the Social Security Act had in conjunction with the amendments April 1949. been in effect more than 12 years, but that were under consideration and The schedule was inevitably some- for one reason or another these per- for long-time planning. Accordingly, what detailed as it had to account for sons had not qualified for benefits. the Bureau of Public Assistance, the the recipient’s employment status in During 1949 an average of more than Bureau of Old-Age ,and Survivors In- each of the 49 calendar quarters that 45,000 persons a month were approved surance, and the State agencies had elapsed from the beginning of for old-age assistance. The old-age responsible for the old-age assistance 1937 until April 1, 1949. For this and survivors insurance beneficiaries programs jointly undertook a sample reason a sample of sufficient size to among them were receiving an aver- study in March 1950 of the status of provide statistically reliable detail for age monthly benefit of about $20. old-age assistance recipients with re- individual States was not used. The This amount with their other income, spect to old-age and survivors insur- sample chosen (6,711 cases-one-sixth if any, was insufficient to meet their ance. The study was limited to recip- of the 40,266 cases added to the rolls minimum needs, with the result that ients recently added to the rolls, since in April 1949 and remaining on the they required supplementary assist- this group had had the greatest oppor- rolls through March 1950) was large ance payments. tunity to engage in covered employ- enough to permit desired cross classi- Basic amendments to the coverage ment. Most of these recipients had fications of national data and a sub- provisions and to the benefit formula not been receiving public aid during stantial amount of detail by socio- in the old-age and survivors insurance all or part of the period during which economic regions. program established by the Social the old-age and survivors insurance The study was a joint undertaking Security Act were under consideration program had been in operation. of the Bureau of Public Assistance, during 1949 and 1950 and were enacted Among all old-age assistance recip- the Bureau of Old-Age and Survivors into law in August 1950 (Public Law ients, in contrast, there were many Insurance, and State and local public 734, Eighty-first Congress, second ses- who had been unable to engage in assistance agencies. The Bureau of sion) . One major purpose of the any employment in the years after Old-Age and Survivors Insurance amendments was to establish old-age 1936, when jobs were first covered by assisted in the initial planning of the and survivors insurance in its in- the insurance program. study’s content and of the schedules tended position as the major income- To obtain information for the and tabulations to be used, and it maintenance program for aged per- study, personal interviews were held tabulated the data after the schedules sons. The reasons that needy aged *with most of the recipients in the were completed. The sample cases persons were not getting insurance sample, excluding those who were in were selected by the State agency or *Division of Program Statistics and receipt of old-age and survivors in- local agencies in accordance with a Analysis, Bureau of Public Assistance. surance benefits and those who were uniform plan. Identifying informa- 4 Social Security tion, including data on whether old- tially identified as receiving old-age employment before January 1951 ex- age and survivors insurance benefits and survivors insurance benefits, the cluded agricultural employment- were being received, was then recorded study schedules were sent directly to whether as an operator or for wages- on the ‘schedules. the field offices of the Bureau of Old- domestic service in a private home, For recipients who were not insur- Age and Survivors Insurance, where nonfarm self-employmznt. railroad ance beneficiaries, the schedules were detail on benefits was entered. employment, and emplo.yment for routed through the State agencies and At the time of the study, in order to’ government agencies or nonprofit or- the central office of the Bureau of have insured status, an individual gani2ations.l Public Assistance to the Bureau of aged 65 or over had to have earned at Of the 40,266 recipients who were Old-Age and Survivors Insurance, least $50 in covered employment in at placed on old-age assistance rolls in where quarters of covered employ- least half the number of quarters April 1919 and who continued through ment were identified and entered on elapsed after 1936 and before the quar- March to receive assistance payments, the schedules. These entries not only ter in which his sixty-fifth birthday -~ showed accurately the periods of occurred, with a minimum of 6 quar- IThe 1950 amendments made it possible covered employment but provided val- ters. This requirement meant that for anyone who was then aged 65 or who would attain age 65 by the middle of 1954 uable benchmarks to which non- old-age assistance recipients who had to qualify for &d-age and survivors in- covered employment could be related attained age 65 just before their surance benefits at any time after the in the subsequent personal interviews. approval for assistance in April 1949 attainment of age 65, on the basis of 6 During the interview the recipient’s needed 24 quarters of coverage to quarters of covered employment acquired at any time after 1936. The definition of employment history-as complete as qualify for old-age and survivors in- covered employment was extended to in- possible-was reconstructed for the surance benefits. Those recipients clude, for 1951 and subsequent years, most years from 1937 to 1949. State and who were over age 65 needed fewer self-employment other than that on farms, local assistance agency personnel con- quarters of coverage, since the G-quar- certain farm workers and domestic work- ers. certain Federal Government employ- ducted the interviews and filled in ter minimum was applicable for per- ees, and, under special agreements, State schedule items. For those old-age sons whose sixty-fifth birthday and local government employees and em- assistance recipients who were ini- occurred before July 1940. Covered ployees of nonprofit organizations. Chart 1.-Old-age assistance recipients* not receiving old-age and survivors insurance benefits, by agricultural em- ployment and by other noncovered employment, 1937-49 _ .NORTHWEST AND SOUTHWEST I-* Added to the old-age assistancerolls in April 1949and remaining on the rolls 1 Excludes recipients who were receiving old-age and survivors insurance through March 1950. Data derived from sample representing one-sixth of these benefits. recipients. Bulletin, July 1952 5 7,050 were also old-age end-survivors were not old-age and survivors insur- ranked next in importance to agricul- insurance beneficiaries whose incomes ance beneficiaries and who had had ture in the work histories of recipients were insufficient to meet their needs. some employment after 1936, there who were not old-age and survivors The remaining 33,216 were not en- were 8,022 who had had part or all of insurance beneficiaries.’ Among the titled to insurance benefits, and all their employment either as farm oper- nonentitled recipients with any em- but a small group (1.2 percent of the ators or as farm laborers (see chart). ployment, 23.1 percent had some total), who apparently had enough This number substantially exceeded self-employment. More than half of covered employment to qualify, were the number of recipients (6,870) who this group had been self-employed established as ineligible for insurance had engaged in covered employment for 7 years or more after 1936, end benents at the time of the study. No of all types. almost 2 out of every 10 had been so effort was made to obtain an employ- Thirteen out of every 14 recipients employed for at least 10 years.
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