7. SOCIAL SECURITY [Data in this section relate to continental United States, Alaska, and Hawaii, except as noted] GENERA! NOTE Old-age and survivors insurance.—Federal old-age and survivors insurance, administered by the Social Security Board under the Social Security Act as amended in August 1939, covers employment in industry and commerce. Specified employments are excepted, notably agricultural labor, domestic service in private homes, services for government and for certain types of nonprofit organizations, services for railroads and certain of their subsidiaries and affiliates, and self-employment. In January 1940, monthly benefits became payable to qualified workers at age 65 and also to certain dependents of beneficiaries and certain survivors of insured workers. Benefits are based on the legally defined average wage of the insured and are paid from the Federal Old-Age and Survivors Insurance Trust Fund, to which is appropriated annually an amount equal to the total taxes paid by employers and employees under the Federal Insurance Contributions Act. Employment security.—The Federal-State unemployment compensation program provides for pay- ments to insured industrial and commercial workers who are able to work but unable to find jobs. Contribu- tions, based on wages, are paid by employers, and in some States also by employees, to provide funds to be used solely for the payment of benefits, which are based on prior employment and wages. Under the Social Security Act the Social Security Board has two statutory responsibilities in administering the unemploy- ment compensation program. It certifies each year to the Secretary of the Treasury, for purposes of normal and additional credits under the provisions of the Federal Unemployment Tax Act, the State unemploy- ment compensation laws, which conform to the standards prescribed by the Social Security Act; it also certifies grants to defray necessary costs of administering State unemployment compensation laws for those States which, in law and administration, conform to the standards prescribed in title III of the act. Funds are certified in the amounts determined by the Board to be necessary for the proper and efficient adminis- tration of State unemployment compensation laws, including the administration of State employment services in connection with the payment of benefits. Nation-wide administration of the State employment services was assumed by the Social Security Board on Jan. 1,1942, and was transferred to the War Manpower Commission on Dec. 1, 1942. Public assistance.—Under the Social Security Act, the Federal Government shares with the States the costs of administration and money payments for special types of public assistance (aid to needy persons aged 65 and over, needy blind, and dependent children under the age of 16 who have been deprived of parental support, or under the age of 18 if regularly attending school). To receive a Federal grant under any one of these programs, a State must have a plan approved by the Social Security Board as meeting the basic requirements of the act. Social insurance and public aid.—For analysis of general problems of social security and comparison of social insurance and public assistance under the Social Security Act with other public provision for in- surance payments and public aid, the Social Security Board issues data obtained from Federal and State agencies on benefits and beneficiaries under selected social insurance systems, on earnings and persons employed on Federal work programs, and on payments and recipients under special types of assistance, and general assistance. NO. 187.—PAYMENTS UNDER SELECTED SOCIAL INSURANCE AND RETIREMENT PROGRAMS: 1936 TO 1942 [In thousands of dollars. Data represent payments to individuals and exclude cost of administration. Payments under Social Security Act (including retroactive payments) and payments under Railroad Retirement Act (including retroactive payments and excluding cancelations), and payments under Railroad Unemployment Insurance Act are amounts certified; payments under Civil Service Commis- sion and Veterans' Administration are disbursements minus cancelations. Data for State and local retirement systems and workmen's compensation are estimated. State unemployment insurance payments are checks issued by State agencies] 1937 1938 1939 1940 1941 1942 TotaL. 815, 752 892, 779 1,359,009 1,439,496 1,611,940 1, 562,310 1,659, 074 Federal retirement, disability, and survi- vor programs, total 458,765 499,532 575,814 608,094 654,040 726,631 780, 364 Monthly retirement and disability payments.-i Social Security Act 2 21,075 55,141 80, 304 Railroad Retirement Act 683 40,001 96, 766 107, 282 114,166 119, 913 122,806 Veterans' Administration 3 299,001 299, 660 301, 277 307, 512 317, 851 320, 561 325, 262 Civil Service Commission ^ 51,630 53, r- 56,118 58, 331 62,019 64, 933 68,115 Survivor payments: Monthly: Social Security Act« 7,784 25, 454 41,702 Railroad Retirement Act 444 1, 383 1,451 1, • 1, 559 1,603 Veterans' Administration ® 96, 370 101, 492 109,192 105, 696 111, 799 111, 196 Lump-sum: Social Security Act ^ 1, 278 10, 478 13,896 11,736 13, 328 15,034 Railroad Retirement Act 291 1,926 2, 49; 3, 421 4,114 Veterans' Administration » 3, 395 3j 3,405 3, 553 3, 960 4, 352 4,120 Civil Service Commission ^ 4,062 4,401 4,604 4,952 5,810 6,170 6,108 For footnotes, see next page. 175 176 SOCIAL SECURITY No. 187.—PAYMENTS UNDER SELECTED SOCIAL INSURANCE AND RETIREMENT PROGRAMS: 1936 TO 1942—Continued [In thousands of dollars] PROGRAM 1936 1987 1938 1939 1940 1941 \m State and local retirement systems __ 137, 000 144, 000 151, 000 157,000 163, 000 175, 000 9 194, 000 Workmen's compensation 216, 992 243, 636 235, 083 236, 491 257, 034 297,208 328,000 Unemployment insurance payments. 131 2,132 393, 786 435, 065 534, 589 358, 856 350,353 State unemployment compensation laws 10- 1--- 131 2,132 393, 786 429, 298 518, 700 344, 321 344,084 Raihroad Unemployment Insurance'Actn 5,767 15,889 14, 535 6,269 Refunds under Civil Service Com- mission to employees leaving service 2,864 3,479 3, 326 2,846 3,277 4,616 6,357 1 Old-age retirement benefits under all acts, disability retirement benefits under Railroad Retirement and Civil Service Retirement Acts, and disability payments to veterans. 2 Represents primary and wife's benefits and benefits to children of primary beneficiaries. Partly esti- mated. 3 Veterans' pensions and compensation payments. * Represents principally payments from civil-service retirement and disability fund but includes also payments from Canal Zone retirement and disability fund and Alaska Railroad retirement and disability fund administered by Civil Service Commission. Data for 1936-39 estimated on basis of fiscal-year data. « Represents widow's, widow's current, parent's, and child's benefits. Partly estimated. ® Payments to widows, parents, and children of deceased veterans. 7 Represents survivor payments with respect to deaths of covered workers under both the 1935 and 1939 acts; payments to covered workers at age 65 totaling $9.9 million, which are not survivor payments, are included for the period January 1937-August 1939. ® Payments for burial of deceased veterans. 9 Preliminary estimate. Adjusted for voided benefit checks. Data adjusted for underpayments and recoveries of overpayments. Source: Federal Security Agency, Social Security Board, Bureau of Research and Statistics. Data appear periodically in Social Security Bulletin. No. 188.—OLD-AGE AND SURVIVORS INSURANCE—NUMBER AND AMOUNT OF MONTHLY BENEFITS, BY TYPE: 1942 [Data represent total benefits awarded after adjustment for subsequent changes in number and amount of benefits, and terminations cumulative from January 1940] Widow's Par- Total Primary Wife's Child's Widow's current ent's STATUS OF BENEFIT AND ACTION NUMBER In force, Dec. 31, 19411 483,679 231, 310 63,873 123,164 16,162 48,076 1, 994 Current-payment status 433, 722 199, 966 57, 060 117, 410 14,963 42, 339 1,984 All other 3 49,857 31, 344 6,813 5, 754 199 5,737 10 Actions during 1942: * Benefits awarded 258,116 99,622 33, 250 77, 384 14, 774 31,820 1,266 Entitlements terminated » 50,069 17, 457 8,304 14, 785 975 8,328 220 Net adjustments _. -9 9 9 -43 5 6 5 In force, Dec. 31, 1942 ^ 691,617 313,484 88,828 186, 720 28,966 71, 574 3,045 Current-payment status 598, 342 260,129 76,634 172, 505 28,631 57, 435 3,008 All other 3 93, 275 53, 355 12,194 13,215 335 14,139 37 MC•NTHL Y A MOUNT CHOUSANDS 0 In force. Dec. 31, 19411 $8,786 $5,248 $772 $1,497 $307 $936 $26 Current-payment status 7,815 4,539 691 1, 432 302 826 26 All other 3 971 708 81 65 6 111 (') Action during 1942: < Benefits awarded 4,656 2,355 414 950 296 622 17 Entitlements terminated 5. 884 409 102 188 19 163 3 Net adjustments « 17 6 1 7 O 4 C) In force, Dec. 31,1942 ^ 12, 674 7,199 1, 086 2, 266 684 1,399 40 Current-payment status 10, 782 5,989 941 2,112 577 1,124 39 All other 3. 1,793 1, 210 145 154 7 276 1 Corrected to Feb. 7,1942. 2 Benefit is subject to no deduction or only to deduction of fixed anount which is less than current month's benefit. 3 Benefit is subject to deduction which equals or exceeds current month's benefit. < Corrected to Feb. 16, 1943. s Benefits are terminated when a beneficiary dies or loses entitlement to benefits for the reasons specified in 1939 amendments, sec.