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.