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(permission to run over the prescribed maximum was thereafter granted by the Chairman of the National Advisory Committee, making editing unnecessary).

As their final action, the Section delegates unanimously extended appreciation to their Chairman for his diplomacy, tact, courtesy, and patience in presiding over their deliberations.

III. RECOMMENDATIONS: THE SECTION'S PROPOSALS IN

DETAIL

THE STATEMENT of Policy with which this report opens is the essence of the Section's recommendations. Following are the detailed recommendations as approved by the Section.

Our Aged Population's Share in Expanding Productivity

1. It is a basic assumption that the individual will assume primary responsibility for self-reliance in old age. In our society, there are many groups and institutions which have responsibility for the assurance of dignity and well-being in old age.

2. The most satisfactory protection for the aging is the continuance of gainful and productive employment, whenever possible. Additional opportunities should be developed in all areas of employment through both governmental and private initiative. Further studies should be initiated on methods of effective elimination of discrimination in hiring based on age.

3. Encouragement should be given to the development and distribution of education programs assisting all of our citizens in preparing themselves for the financing of the period of their retirement.

4. It is reasonable that older people who have contributed effectively to the enhancement of national productivity during their working lives should share in the advantages of a further enhancement of national productivity occuring during the period of their retirement.

5. That, so far as Government intervention is necessary to protect the increasing number of aged persons in our population, it is better that such intervention implement to the fullest extent possible the principle of a self-reliant contributory contract between the whole people and their Government, for example through OASDI, than the principle of needs-test relief to dependent individuals.

6. In an economy characterized by rising wages and salaries it is necessary to give periodic review to the maximum amount of earnings subject to contributions and credited toward benefits under OASDI, since this maximum determines the proportion of the covered payrolls available to finance the program and is a major factor in determining the extent to which the program pays benefits reasonably related to the past earnings of the individual.

7. The level of benefits under OASDI should be reexamined periodically in the light of changing economic conditions with appropriate recognition of the impacts of any change upon the economy.

8. Old-Age Assistance should be continued and its administration constantly improved as a residual method of protection when other methods have not proved sufficient to meet the specific needs of the individual aged person.

OASDI: Benefit Levels, Coverage, Eligibility Requirements, and the Retirement Test

1. It is recommended that the Conference express strong support of the OASDI system as being constructed along fundamentally sound and desirable lines, including the principles of financing through employer and employee contributions and providing a basic floor of protection to be supplemented by individual savings and private pensions.

2. It is recommended that Congress should continue its practice of periodically reviewing the system to ensure that benefit levels and the soundness of the financing structure, including the earnings base, be adjusted in accordance with changing economic conditions, including changes in the wage level and living costs.

3. It is recommended that, on a transitional basis, all persons aged 65 and over at the present time who are not eligible for benefits under the OASDI system or any other Federal Retirement System established by law, and who were employed (or whose spouse was employed) for a substantial period in an occupation that is now covered by the OASDI system shall be eligible for the minimum benefit payment under OASDI. The cost of financing these proposed benefit payments shall be accomplished in such a manner as not to weaken the financial soundness of the OASDI system.

4. It is recommended that the benefit formula for widows be revised from 75 percent to 100 percent of the deceased workers' primary benefit.

5. It is recommended that the coverage of the OASDI system be extended to all areas of employment and self-employment remaining excluded: provided, That Congress take some account of the prevailing view of the groups involved and of the reasons for the present exclusions. (A motion to delete this recommendation was defeated by 86 to 72.)

6. It is recommended that when increases in benefits are adopted, the present minimum benefit of $33 a month should be increased to a greater proportionate extent than benefits generally.

7. It is recommended that, since some people are eligible for benefits from both OASDI and one or more other Government retirement and disability systems, Congress should provide for a study designed to determine the feasibility of coordinating OASDI and other governmental benefit systems.

8. It is recommended that careful consideration should be given to the experience which develops under the new "retirement test" of the Social Security Act. If, as a result of this experience, it appears that further changes along the lines of the 1960 revision are desirable, such changes should be made, with appropriate financing changes to keep the OASDI program on a financially sound basis.

Public Assistance for the Aging 1

It is proposed that assistance to needy aged people should continue as a Federal-State partnership. After 25 years of operation under the Social Security Act, too many OAA recipients are receiving too little assistance to insure a minimum standard of health and decency. To remedy this defect and to come closer to achievement of a decent healthful life and a maximum degree of dignity for public assistance recipients, the following recommendations are made:

Standards of Assistance

1. That the Federal Government continue to provide leadership to the States in developing and adopting adequate and proper standards for the amount of assistance and, for the purpose of assisting the States to achieve such standards, additional Federal matching funds be made available.

2. That the Federal Government maintain recommended standards of minimum living costs for persons in different age brackets geared to the costs, needs, and habits of various areas for use as standards for Federal evaluation of all income maintenance programs.

3. That Congress amend the Social Security Act to allow States, on a permissive basis, to establish a $50 monthly earned income deduction for each applicant for or recipient of Old Age Assistance.

4. That Congress amend the Social Security Act to provide for Federal participation in general assistance.

Relatives' Responsibility

5. That State provisions on relatives' responsibility in public assistance be equitable, practical, and designed to contribute to strengthen family life. The contribution required of the family should not be deducted from the assistance payment unless the relative actually pays it. If the relative does not pay, it should be the responsibility of the State to secure the payment.

1 See Minority Statement on Citizenship Requirements following those recommendations.

Residence Requirements

6. That the ultimate goal be the elimination of all residence requirements.

7. That the immediate goal be a reduction in maximum residence requirements to a period of one year and with the provision that for those applicants who do not meet such a year's residence requirement, 100 percent Federal funds be available to meet the costs of needed assistance.

8. That the formula for Federal participation in the cost of OAA and related services shall include a factor to offset increased costs beyond one year in those States experiencing an immigration of persons over 50 years of age which exceeds the immigration of younger age groups.

Personnel in Public Assistance

9. That the Congress make permanent the present authorization in the Social Security Act providing for the training of public assistance personnel and that the Federal Government pay 100 percent of the costs of such training in accord with the practice followed in other federally assisted programs.

10. That Congress make available funds to educational institutions and to States for the support of training programs.

Social Services for the Aged

11. That Federal matching funds be made available to State welfare departments to meet costs to develop, secure, or operate consultative, protective, and rehabilitative programs for the aged. These programs should not be limited to assistance recipients.

12. That to provide for effective casework services, Federal matching funds for administration be on the same variable basis as the assistance costs with a minimum of 50 percent Federal financial participation in such costs.

Relationship Between OAA and OASDI

13. That OASDI represent the basic income maintenance program, with OAA representing a supplementary income maintenance program for those not eligible for OASDI and for those with special needs which bring their total needs to more than OASDI benefit. To

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