themselves economically by their own efforts, and, hopefully, to regain their economic independence.

Recommendation No. 4. The Committee recommends that the amount of earnings which can be received by a recipient of old-age insurance benefits without loss of benefits be increased to a more realistic level, and that the present complex formula be eliminated.

Comment: Since the Social Security Amendments of 1961 (Public Law 87-64), the earnings limitations have been as follows: Maximum annual earnings permitted without loss of benefits____ Range of annual earnings within which $1 of benefits is lost for each $2 earned__

Amount of annual earnings above which $1 of benefits is lost for each $1 earned............

$1,200

1, 200- 1,700

1,700

Under this recommendation, a recipient would be permitted to earn more than $100 per month ($1,200 per annum) without loss of benefits. Above the new limit, there would be a loss of $1 of benefits for each $1 earned. As compared with the present complex formula, this would have the advantage of simplicity.

Adopting this limitation increase would be a logical extension of the trend in recent years toward permitting old-age insurance recipients to be more self-sufficient. The earnings limitation was liberalized successively in 1950, 1952, 1954, 1958, 1960, and 1961.

A number of bills have been introduced in the Senate and House of Representatives to liberalize the earnings limitation.

Testimony was presented at the subcommittee's hearings in California in favor of liberalizing this earnings limitation.13

Recommendation No. 5. The Committee recommends that a modest annual appropriation be authorized for use by the Bureau of Employment Security in assisting with the expenses of volunteer community efforts to find employment for older workers.

Comment: At its three hearings, the subcommittee was apprised of the activities of local groups which have spontaneously sprung up to assist older workers find employment. These include groups in Baltimore 14 and Montgomery County,15 Md., Pasadena, Calif., and San Francisco, Calif.17

16

The testimony indicates that although such volunteer organizations operate on very small budgets, they are effective in placing older workers. However, they should not be considered in any way in competition with Employment Service offices or a substitute therefor. These two types of activities supplement each other; each performs in an area in which the other cannot as effectively perform.

It appears that some of these organizations are seriously handicapped by lack of funds.18 The Bureau of Employment Security should be given a fund from which it can contribute on a matching basis to such organizations which it considers most effective in placing older workers and most cooperative with local employment offices.

There should be a requirement that such assistance be given on a matching basis only, not to exceed 50 percent of the organization's expenses. This will assure that the organization has sufficient local

13 Los Angeles hearing, p. 48 (Mr. McLain) and p. 69 (Mr. Richard Cartwright); San Francisco hearing p. 119 (Mr. Charles Rosenthal).

14 Washington hearing, pp. 15, 16, and 19 (Mrs. Margaret Schweinhaut).

15 Washington hearing, pp. 15, 16, and 20 (Mrs. Schweinhaut).

16 Los Angeles hearing, pp. 59 and 60 (Dr. Margaret E. Bennett).

17 San Francisco hearing, pp. 119 and 120 (Mr. Rosenthal).

18 Washington hearing, p. 16 (Mrs. Schweinhaut).

interest and support to be worthy of Federal assistance, and will also limit the Federal contribution needed.

A modest annual appropriation for this purpose-less than $100,000 could be spread thin among many local volunteer groups and might make the difference in many instances between the organization's success and its failure.

Recommendation No. 6. The Committee recommends that Congress enact a resolution designating a week in each year as "National Employ the Older Worker Week."

Comment: One of the most urgent needs in solving employment problems of older workers is for educating the public as to the true facts regarding their capabilities. An officially designated "National Employ the Older Worker Week" would provide opportunities for doing so which would not otherwise exist. Presumably the press and broadcasting media would be more cooperative in disseminating such information during an officially designated week.

A resolution to this effect, Senate Joint Resolution 68, has been introduced and is pending before the Senate Judiciary Committee. Since May has in recent years been designated "Senior Citizens Month," it would seem most appropriate that the week to be designated "National Employ the Older Worker Week" be a week during May.

38-351

A STAFF REPORT

PREPARED FOR THE

SPECIAL COMMITTEE ON AGING

UNITED STATES SENATE

OCTOBER 1964

Printed for the use of the Special Committee on Aging

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON: 1964

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20400 Price 15 cents

SPECIAL COMMITTEE ON AGING

GEORGE A. SMATHERS, Florida, Chairman

SUBCOMMITTEE MEMBERSHIP

(Senator Smathers, chairman, is a member, ex officio, of each subcommittee SUBCOMMITTEE ON HOUSING FOR THE ELDERLY