the estimated gross amount of life It is interesting to note that the The 1954 Amendment insurance in force as survivor bene- amount in force under old-age and fits on various dates since 1940. The survivors insurance is nearly equal As a result of the 1954 amendment, steady increase during the 15-year to the aggregate amount in force in most employees of State and local period reflects the increasing cover- private insurance organizations. A governments (except policemen and age and benefits of the system and substantial proportion of the latter, firemen covered by a State or local the increasing proportion of workers however, is under “permanent” plans, retirement plan) may be covered un- who have achieved insured status. which provide a constant amount of der old-age and survivors insurance At the beginning of 1955, men ac- insurance during the lifetime of the if the State enters into an agreement counted for about 92 percent of the insured (or until attainment of a with the Secretary of Health, Educa- total insurance in force. While fixed age). In contrast, much of the tion, and Welfare for this purpose. women accounted for only 8 percent, insurance under the old-age and Under this agreement, the State con- the proportion was double that be- survivors insurance program is in the sents to make the necessary reports fore the 1950 amendments. The form of decreasing term insurance, and to pay the employer’s share of principal reason for the increase was being concentrated where it is most the Federal insurance contribution. the provision in the 1950 amend- needed-at the younger ages of the The old law excluded from cov- ments permitting the payment of insured workers, when they have the erage under such an agreement em- child’s survivor benefits on the basis greatest number of minor children. ployees in positions covered by a of the wage records of currently in- State or local retirement system sured married women, even though (other than the Wisconsin Retire- the husband is living, working, and ment Fund) on the date the agree- insured. State and Local Govern- ment was made applicable to the A rough comparison of the net ment Employment Under coverage groups to which they be- amount of life insurance in force long. The 1954 law permits States to under the old-age and survivors in- OASI, October 1955 * bring members of a State or local surance system with other life in- By the end of October 1955, an es- system under its coverage agreement surance is s,hown below. timated 11/4 million State and local if a referendum by secret written bal- government employees had been cov- lot is held among the system’s mem- [In billions] ered under old-age and survivors in- bers and a majority of those eligible $734 Total _--_-----_--__--______surance through voluntary agree- to vote cast their vote for coverage. Old-age and survivOrs inSuranCe_---- 345 Veterans Administration programs-- 43 ments. Coverage agreements had A State may cover without a refer- U. S. Government life insurance---- 2 been completed with 46 States, three endum employees who are in posi- National service life inSuntnCe----- 39 Territories, and 14 interstate instru- tions covered by a retirement system Veterans’ special term insurance mentalities; for two of the States, and service-disabled veterans’ In- but who are not eligible for member- surance -- ____--__- ______--_-_ 2 the agreements had been so recently ship and, before January 1, 1958, em- Private insurance _____-_-..___--_____ 346 executed that current estimates of ployees not currently under a retire- Ordinary, industrial. and group---- 334 coverage do not reflect them. ment system who could not have been Savings bank -_--_- ____------_____ 1 The full impact of the State and Fraternal ----__-__-__-_--___------10 covered when their coverage group Assessment life ----__------__-_-- 2 local coverage provisions of the 1954 was brought in because they had amendments to the Social Security then been under a retirement system. These amounts are based on a O-per- Act will not be known for some time. A State may hold a referendum cent interest rate and have been ad- Not only are new agreements or mod- among all the members of a retire- justed for the effect of employment ifications of agreements continually ment system, or it may treat any and payment of only the excess of bringing additional employees under political subdivision or any combina- the widow’s benefit over any old-age the Federal system, but the groups tion of political subdivisions as hav- benefit she may earn in her own brought in are often covered retro- ing a separate retirement system. right. They exclude an estimated actively, Agreements negotiated any Each public institution of higher $lO-$15 billion of life insurance in time before the end of 1957 may pro- learning may also be considered as force as survivor benefits under the vide, if the State wishes, for retro- having a separate retirement system. civil-service retirement program; active coverage to the beginning of Special provision is made for cover- other public retirement systems have 1955. The figures as of October 1955 ing under an agreement, at the option perhaps $2 billion more. There is thus understate the total number of of the State, civilian employees of also a considerable amount of sur- State and local government em- State national guard units and cer- vivor protection in force under pri- ployees who will eventually receive tain inspectors of agricultural prod- vate pension plans (mostly in the old-age and survivors insurance wage ucts. The 1954 law also provides form of potential refunds of employ- credits for the fourth quarter of 1955. specifically for the coverage of em- ee contributions), even though their ployees of certain educational insti- *Prepared by Dorothy McCamman, Dl- primary purpose is providing retire- vision of Research and Statistics, 05ce of tutions in Utah and retroactive cov- ment benefits. The estimate for the the Commissioner, from estimates deVelOped erage of members of the Arizona private insurance plans does not in- in the Division of Program Analysis, Bu- Teachers’ Retirement System. clude death beneflts under annuities, reau of Old-Age and Survivors Insurance. Employees made eligible for cov- Bulletin, February 1956 1.5 J?able l.-Rough estimates of State and local government employment covered erage by the 1954 amendments could under old-age and survivors insurance through voluntary agreements and not, in general, be covered before of dual coverage, by State, as of October 1955 January 1, 1955. Coverage may be [Continental United States] made retroactive to the beginning of 1955 for employees coming under the Covered by old-age and survivors Number with dual coverage 3 State agreement at any time in 1955, insurance _. - - 1956, or 1957. This provision avoids -i- penalizing employees in States where Approxi- mate per- legislative action cannot be com- state cent of Covered all state Previous NO under pleted until 1957. Nun ber ’ and local Total system previous referen- gorern- dissolved system dum ment 1xovisions Coverage Estimates employ- ment 2 The estimate of li/4 million State -- -_ I- and local government employees cov- Total ______’ 1,257,8W 26 529,860 347,640 152,150 ered as of October 1955 represents Alabama.. ______70, ooa 90 38,960 150 employment for which coverage has -4rizona ___.....__.______27,100 94 15,920 68,920 Arkansas--...... ------47 140 been approved, regardless of the CnliIornia ______-- ______3% 520 4; effective date. It includes an estimate Colorado ______.______14: 700 2i Connecticut _...______11 73: i of the number of employees recently Delaware .__.._._.______-- _____ xz?l ii F,5M) s~6,5Cil District of Columbia 7______._____ -I..- _._.___--.______. _. .I_. covered but not yet included in Florida _._____.____ -_- ______10, io0 10 tabulated wage reports. Although Oeorgia...... ------13,2cQ 15 1, :z 61: employment figures derived from Idaho....--..--.--.------15,6tHl 74 wage reports are more complete and Illinois. ______----. 6,706 4 9: i Indiana ___.______47,706 4: 15,500 0 f.15,500 accurate in the long run, they con- Iowa _____ ._..._..______82,400 91 79, OCKI “78,930 0 Iiansas.----...------~--- 54, loo 24,100 6,590 ‘17,266 sistently understate current coverage Kentucky ______37,200 :i 280 Louisiana _._...______13,800 15 7,E 1,4ci levels because of the time required Maine __._._..______5,300 17 24 for preparation and processing of the Maryland...... ______4, QQO 7 4”: i Massachusetts ______200 (9 0 0 : first reports for new coverage groups. The current estimate is more than Michi&an ______._ 16,100 7 3,260 0 3,070 Minnesota 9. . ..______.__. __ _ _. -. __ __-_--_-_-. _ _ _ _ - _ - _ - - a quarter of a million higher than Mississippi ..__.______8.3 40, ool ‘2Q,cao Missouri __..._..______59 6cm 0 0" the estimated number covered at the Montana-- _ .__.______2 0 end of 1954. It represents approxi- Nebraska ______-___ 52 4,690 94 3,770o Nevada ____. -- ______4 0 mately one-fourth of the total num- NewHampshire..---..------i 3; New Jersey _.___-.__.______ii 72,% ‘72,500 0 ber of State and local government New Mexico ‘0______. ______employees to whom the voluntary New York.------.-_--_------15 0 coverage provisions apply. This ap- North Carolina ._-______11 z 0 North Dakota I’_.______. -______--______. _ proximate percentage, shown in Ohio ii ______. _____--______. _- - - table 1 for each State, is subject to Oklahoma ______34,300 2,410 10 Oregon----.---.--.------48,150 5’44,cc?o a number of qualifications, includ- Pennsylvania __.______!$E 2, 520 1,290 Rhode Island _.__. _- ______0 ing the major one of being based South Carolina .______55: 500 5z% 0 on data on total employment for ______South Dakota _____.______21,800 (4 one year and on covered employment Tennessee--- ______18,300 0 for a year later. Data from the Texas-. __ ___. .______33,400 4.64 i 4,626 Utah------.---.------%=Q 11,770 6 11,770 0 Bureau of the Census on employment Vermont ____.___-._____ -__- _____ 0 0 Virginia____-.-.--.------83Z 50,5z 5 0 50,540 ('9 by type of government are collected Washington____------a:700 0 only for October of each year and West Virginia ______IQ, 800 : : ~~isconsin.-.....--_------39, QOQ 5 1335, MM : are not published until the follow- Wyoming _____.... --_-___- ______12,400 “i$E ‘“8,ooo 0 - j ing spring; hence, the current esti- mate relates coverage in October 1 Current estimate of employment for which coy- included because States are not required to report wage has been approved, regardless of effective dates. information of this type. 1955 to employment in October 1954. Includes, in addition to employment shown in wage 4 Includes 300 employees of biter&ate instrument- Of the estimated ll/q million cov- reports, data on employees recently covered but not alities not distributed by State. yet represented in tabulated wage reports. 5 Includes State employees. ered employees, somewhat more than 2 Approximate percent of all State and local gov- 6 Includes public school teachers. ernment employment (other than that under corn- 7 Not included in statutory definition of State for a fourth are State employees, 22 pulsory old-age and survivors insurance coverage) purposes of agreement. percent are county employees, and that is actually covered. Based on data from the a Less than 50 employees or less than 0.5 percent. Bureau of the Census for total State and local gov- 9 Agreement not executed until Aug. 29, 1955. the remaining half are employed by ernment employment as of October 1954 (latest lo Agreement not executed until Sept. 29, 1955. available). *I No agreement. local governments--cities, townships, 8 Based on estimates furnished by the State or 11Some coverage under the referendum provisions, made by the Bureau of Old-Age and Survivors In- but no estimate of number covered is available. independent school districts, other surance at the time the groups were brought under *J Special Federal legislation made dissolution of special purpose districts, and all old-age and survivors insurance rather than on wage previous system unnecessary. reports. (Employees with dual coverage are not other political subdivisions and in- identified in wage reports.) Some retirement sys- Source: Estimates by Division of Program Ansly- tems. particularly the smaller ones, may not be sis, Bureau of Old-Age and Survivors Insurance. strumentalities that are not State or county governments. 16 Social Security The coverage is appreciably more sary for the Wisconsin Retirement Anniversary. Washington: U. S. complete for county government em- Fund to resort to this device. Govt. Print. Off., 1955. 32 pp. 30 ployees than for those employed by A small group (estimated at cents. other types of government. The 30,000-two-thirds of whom were BUREAU OF OLD-AGE AND SURVIVORS rough ratios indicate that 46 per- Mississippi State employees) had INSURANCE. Handbook of Old-Age and Survivors Insurance Statistics: cent of all county employees but only had no previous protection but were Employment, Wages, and Insurance 26 percent of State employees and 20 brought under a new retirement Status of Workers in Covered Em- percent of local employees are cur- system after they had been covered ployment, 1951-52. Washington : rently covered. In each of 16 States, under old-age and survivors in- U. S. Govt. Print. Off., 1955. 290 90 percent or more of all county surance. pp. $1.75. employment is covered. In only 14 An estimated total of 152,000 had BUREAU OF OLD-AGE AND SURVIVORS States are as many as 40 percent already obtained dual coverage by INSURANCE. DIVISION OF PROGRAM of the local employees covered. October 1955 under the referendum ANALYSIS. State and Local Gov- The following tabulation shows the provisions of the 1954 amendments. ernment Employment Covered by number of States by the approximate States contributing sizable numbers OASZ Under Section 218 of the So- cial Security Act. Baltimore: The percentage of employment covered, to this total were Alabama and South Bureau, Oct. 1955. 20 pp. Pro- separately for total employment and Carolina (in each of which the cessed. each type of government: referendum provision had been used A marterly statistical report. to bring in State employees and pub- Limited free distribution: apply to lic school teachers as well as local the Bureau of Old-Age and Survivors Number of States nonschool employees), Indiana, and Insurance, Social Security Adminis- Approximate Kansas. tration, Baltimore 2, Md. perc!ent Of employment Type of government Not reflected in the estimates of BUREAU OF PUBLIC ASSISTANCE. covered Total table 1 is the dual coverage to be Characteristics of Families Receiv- State County Local ing Aid to Dependent Children, ---- expected from favorable referendums held before the end of October on November 1953. Washington: The I Total.---...- 48 48 I ’ 47 I 48 Bureau, 1955. 37 pp. Processed. which agreements had not been None or un- A biennial release. Limited free known-.-..~ executed. Such referendums included distribution; apply to the Bureau of Less than 2i..- 20-39- ______. those held in Texas earlier this year Public Assistance, Social Security Ad- 40-59. ______. _ as well as the following held in ministration, Washington 25, D. C. m-79. ______. 80OrUlOR?~~~.... October: the Michigan State Em- BUREAU OF PUBLIC ASSISTANCE. DI- m-39. ______. 9Oormore..-.- ployees Retirement System, with a VISION OF TECHNICAL TRAINING. membership of more than 23,000; Current Practices in Staff Train- 1 Rhode Island has DO county eovnmments. the North Carolina Teachers and ing; Illustrations From State Pub- State Employees Retirement System, lic Assistance Agencies: IX-Staff Dual Coverage Participation in the Evaluation of with 65,000 members; the North Caro- Policy on Case Recording. Wash- It has been roughly estimated that, lina Local Governmental Employees ington : U. S. Govt. Print. Off., by the end of October 1955, there Retirement System, with 8,000 mem- 1955. 98 pp. 50 cents. were 530,006 employees covered un- bers: and the New Jersey Teachers A sequel to Process in the Develop- der both old-age and survivors in- Pension and Annuity Fund, with ment and Teaching of a Policy on surance and a State or local retire- more than 36,000 members.l Case Recording. ment system. The group with dual MEDICAL ADVISORY COMMITTEE. Re- coverage represented more than two- port and Recommendations on the fifths of the total with old-age and Recent Publications* Administration of the OASI Dis- survivors insurance coverage. ability Freeze Provision: Preserva- Social Security Administration tion of Rights of Individuals with An estimated 348,000 had this dual Extended Total Disability-Social coverage as a result of the dissolu- BUREAU OF FEDERAL CREDIT UNIONS. 1954 Report of Operations. 20th Security Amendments of 1954. tion of a previous retirement system Washington : U. S. Govt. Print. and its reinstatement after old-age * Prepared in the Library, Department of off., 1955. 10 pp. and survivors insurance coverage was Health, Education, and Welfare. Orders for A report of the Committee ap- items listed should be directed to pub- secured-procedures necessary before lishers and booksellers: Federal publica- pointed to advise the Social Security the 1954 amendments. The States tions for which prices cre listed should be Administration on the medical as- i accounting for the bulk of this type ordered from the Superintendent of DOCU- pects of administering the disability of dual coverage were Iowa, Missis- merits. U. 8. Government Printing Offme, freeze provision in old-age and sur- Washlngton, 25, D. C. vivors insurance. sippi, New Jersey, Oregon, and Vir- ginia (the first State to achieve dual 1 American Federation of State, County General coverage through this method). Al- and Municipal Employees (A.F. of L.), De- BAKER, ALTON W. Personnel Manage- though Wisconsin is included as hav- partment of Civil Service. OASI: A Compila- ment in Small Plants: A Study of tion of State and Territorial Enactments for ing dual coverage through temporary Small Manufacturing Establish- the Uses of Old Age and Survivora Ineumnce dissolution of its system, special for Public Employees, and of Actions bu ments in Ohio. Columbus: Ohio Federal legislation made it unneces- Referenda, Nov. 1. 1955. (Continued on page 24) Bulletin, February 1956 17