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State and Local Government Employment Under OASI, April 1956

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State and Local Government Employment Under OASI, April 1956 Table I.-Estimated progress of old-age and survivors insurance trust fund, This is an important reason for con- 2.4 percent interest sidering costs relative to payroll [In millionsl rather than in dollars. - The cost estimates have not taken Benefit Administra- Interest Fund at Calendar year C:ontributions 1 payments tive expenses on fund end of year into account the possibility of a rise -- in earnings levels, although such Actual data (excluding effect of railroad coverage) rises have characterized the past history of this country. If such an 1953 ___________________. assumption were used in the cost 1954-----.----.--.-.---- estimates, along with the unlikely 1955------.....--------- assumption that the benefit formula Actual data (including effect of railroad coverase) nevertheless would not be changed, the cost relative to payroll would, of course, be lower. If benefits are adjusted continuously and without any time-lag to keep pace with rising earnings trends, the year-by-year costs as a percentage of payroll would be unaffected. However, such an ad- justment would raise the level-pre- mium cost, since under these circum- stances the relative value of the Hlghcost estimate interest earnings on the trust fund would diminish with the passage of time. IntermediaWeost estimate State and Local Govern- ment Employment Under .- ._ OASI, April 1956* ,- ._ .- At the beginning of April 1956, - coverage of State and local govern- f Combined employer employee, and self-em- f Prelimlnsry; partially estimated. ment employees under old-age and ployed contributions. he combined employar- a Includes intarest transfer from railroad retire- survivors insurance through vohm- employee rate is 4 percent for 1955-59, 5 psreent for ment account to OASI trust fund ($11.6 million In 1969-64,6 percentfor P&35-69,7 percent for 1979-74 1954 and $7.4 million in 1966). tary agreements had reached 1.7 and 8 rcent for 1976 and after. The self-employed Note: The estimated figures 1x1this table are based pay 74 of these rates. on high-employment assumptions. million. This total is more than a quarter of a million higher than the insurance system of this expected 6.55 to 8.74 percent of payroll, de- coverage at the beginning of the change in the number of aged per- pending upon the combination of year, a considerably larger increase sons will be even greater than may assumptions selected. Table 3 shows than during the preceding 3-month at first appear, because 50 years the estimated contributions, beneflt period. hence a much larger proportion of payments, administrative expenses, The April estimate indicates that aged persons is expected to be eligible interest accumulations, and assets of 1 in every 3 State and local em- to receive benefits under the program the trust fund through the year 2000, ployees (other than those for whom than at present. The future financial under alternative combinations of as- coverage is compulsory) is now cov- soundness of this system, with its sumptions with respect to beneilt rising rate of disbursements, is of costs and levels of employment. * Prepared by Dorothy McCamman, Dlvi- the utmost importance to the mil- The estimates are based on level sion of Research and Statistics. Of&e of lions of persons who are already earnings assumptions (slightly below the Commissioner, from estimates devel- within its scope and to the Nation the present levels). If in the future oped in the Division of Program Analysis, as a whole. earnings levels should be considerably Bureau of Old-Age and Survivors Insurance. For similar data as of October 1955 and a The estimated cost of benefits as above that which now prevails, and summary of the 1954 provisions, see the a percentage of payroll through the if at the same time the benefits for Bulletin for February 1956. pages 15-17. More year 2050 and also the level-premium those on the roll are adjusted up- detslled data by State and type of govern- cost of the program-that is, the ward so that annual costs in relation ment appear in a quarterly statlstlcal re- level percentage of payroll which, in to payroll remain the same, then the port, State and Local Gevemment Employment Covered bg OASI Under Section 218 of the perpetuity, would be sufilcient to meet resulting increased dollar outgo will Social Securitu Act (Dlvlslon of Program the cost of the beneflts-ranges from offset the increased dollar income. Analysis 1. Bulletin, July 1956 21 ered through the voluntary agree- State, is subject to a number of employment for October 1955 and on ment provisions. This approximate qualifications, including the major covered employment estimates for a percentage, shown in table 1 for each one of being based on data on total different time period. (Data from the Bureau of the Census on employ- Table 1 .-Rough estimates of State and local government ems tloyment covered under old-age and survivors insurance through voluntary agpeements and of ment by type of government are, col- dun1-__-_ cnuerafle.--.-.- _-, hv-_r -_-_-,-_State. as of_ _____-___And 1956 lected only for October of each year and are not published until the fol- ‘~wtinental,““’ United States] lowing spring.) Covered by old-age In this as in the preceding quarter, and survivors I Number with dual coverage 3 insurance the increase in coverage was pri- marily attributable to the results of Approxi- referendums among employees of Inate per- NO etiremcnt state Previous system State governments and among teach- cent Of system previous nembers all state system ers under retirement systems in all Number 1 and local Total d$;;lTd (added covered gl,“ernmenl t under three types of government. In these employ- xinstat,cd ferendum ment 2 lrovisions first 3 months of the year the ap- proximate proportion of State gov- Total ____________________--. 4 1,655,700 _- 33 799,400 347,640 30,070 421,690 ernment employees covered rose from Ak3SCGIk3__...._.___________.____ 71,900 39,790 150 6 6 39,630 34 percent to 42 percent, in contrast Arizona....---...--..----------- 28,400 15.920 58,920 6i.ooo Arkansas __...___._____._______ 24.600 3,480 3,380 to an addition, for county employees Cal!fornia . .._ ._._.___ __.___._. _ 24,800 4,120 42: 3, fioo and for other local government em- Colorado.........--.-.~.--~-~-~. 16,500 960 Connecticut-...... ._... --.-.-._ 7,300 El fl ployees, of only a few percentage Deln~are--.-.-.--.---.-----.--- 6,ZJN ‘06,500 ii District of Columbia i-.. _._._ -_ _ ___. !.!? _. -- _.__..._.. ______.... points that brought their coverage Florida-_-.-..---..------------- 12.300 0 Georgin............. _._.... -.-.. 15,400 I,:“, 0 proportions up to 49 percent and 23 percent, respectively. Idaho .._..._._._ ______._._._.. ._ 15,700 0 0 Illinois ..__._._._____________ ._ ._ 110 9i 0 During the quarter the number of Indiana....-.-...-----.-.---.-.- 5!lz 25, oin 625,ooO IOWa.......-.-.-.-..----...--..- Ri: Ooo 79,090 56 78,93i States in which fewer than one-fifth Kansas-----...-.~~.~.~.~~~.~-.- 60,400 24,750 6,590 6 17,9: of all government employees were Kentucky.... _____________.__.__ 39,2w 300 Louisiana _._____________________ 23,6Cil 11,830 1,4Oi 4,Ei covered by old-age and survivors in- Maine.. .___ .___.___ __.______ -__ 0 2l3l Maryland.. _ ___ _ _ _ ___ _ _ __ ___ % :z surance dropped from 19 to 14. The Massachusetts -.--------.----- ___ ‘2w 0 i following tabulation shows the num- Michigan ._._ -.- .._. -.--...-._-. 71,400 35,620 5 35,430 ber of States distributed by the pro- Minnesote...---.-..----.-.-.--. 2, loo 960 Mississippi . ..____________._. -.. 49, m 40,iEl 0 portion of employment covered in Missouri.. _..._._.______________ - 65,600 600 n Montana-.-..w-.- ____________._ 9,7w 8,606 April. Nebraska-....-....-.-.~...~-.-~ 49,800 2$Z 625,770 Nevada....~.~..........~~~~~~~. New Hampshire- . .._ -.._- _____. 4,3G 30: 3: NewJersey-.~~--.-.--.~~~.~~~~- 129,500 120,700 648.200 New Mexico-.......... _._._____ 1,6oc 1,130 1,130 Number of States Approximate I__ New York----_---.-.-...------- percent of North Carolina _________________ 65,OOi i ~665,d emplo~ent Type of government North Dakota--.---.--.-_-_---- 0 c 0 covered Total Ohio 9. ..________________- ______ ___ ______-___ .__._____-_ Oklshoma__----.-_--_-----.-.-- 4,870 1C 4,860 State Count3 LO& “I~~“II...--n..“..?.- ________ ____ -___-___ 43,150 6’44,cnx 4,150 Pennsylvania .___ ______ ________ 2,520 1,M 0 I- Rhode Island ___________________ 2,630 2,630 Total ________ 48 48 147 48 South Carolina __________--_- ___. 53,110 E 6 0 53,110 -- South Dakota- __________________ 390 c 390 None or Tennessee _____. ________________ 22,loc 1: Texas __.______._________________ 101,sM: 48,07Z E 648,07: 15 Utah _____.____..________________ 29, lcu 11,900 611,77c 130 Vermont ______. _- ___________ ____ 1,410 6 1,400 i Virginia _______ _. _____ __ ___ __ __ __ 93E 51,290 ( 650,54E Washington _____________________ 28: 1oC 17,840 C 17,z 5 West Virginia ___________________ 20,3oc 4 Wisconsin------_-_------------- 41, ax 35,d 6'0 35,d 11: Wyoming ___.._________________ 12,m 8, WQ 6’8,OlX ” * Rhode Island has no county governments. 1 Current estimate of employment for which cover- wage reports.) SIxne retirement systems, particu- age has been approved, regardless of effective dates. larly the smaller o nes, may not be included because Dual coverage.-The great majority Includes, in addition to employment shown in wage States are not required to re port information of this reports,r&&b on e~p~lqm~~I-” .“II”yy..,r~c.an+l” M.ILl?duy.u.u.u hilt--” --”nnt tvna“.,rY.
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