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UNITED STATES DEPARTMENT OF LABOR
W . N. DOAK, Secretary

BUREAU OF LABOR STATISTICS
ETHELBERT STEWART, C om m issioner

BULLETIN OF THE UNITED STATES )
BU REAU OF L A B O R S T A T IS T IC S J • • • •
MISCELLANEOUS

•No. 561

SERIES

PUBLIC OLD-AGE PENSIONS AND INSURANCE
IN THE UNITED STATES AND IN
FOREIGN COUNTRIES

FEBRUARY, 1932

UNITED STATES
GOVERNMENT PRINTING OFFICE
WASHINGTON : 1932

For sale by the Superintendent o f D ocum ents, W ashington, D. C.

-

Price 25 cents

Contents
P&ftt

Introduction_________________________________________________________ _
Part 1.— Public old-age pensions in the United States_________________ _
Introduction_____________________________________________________ _
History of old-age pension legislation in the United States_________ _
Comparison of laws______________________________________________ _
Summary of provisions of laws__________________ #
________________ Analysis of various State pension laws___________________________ _
Operation of State laws__________________________________________ _
Text of laws as of December 31,1931______________________________
Part 2.— Old-age pensions and insurance in foreign countries____________
Introduction and summary________________________________________
Argentina_______________________________________________________ _
Railway employees’ insurance system________________________ Bank employees’ insurance system___________________________ _
Public-utility employees* insurance system_____________________
General act of 1923 (suspended)_______________________________
Provincial pension and insurance systems______________________
Province of Cordoba_____________________________________
Province of Mendoza_____________________________________
Australia_________________________________________ ^_______________
General pension systjm . ____________________________________
Austria___________________________________________________________
Salaried employees’ insurance system__________________________
Wage earners’ insurance system_______________________________
Agricultural laborers’ insurance system________________________
Belgium__________________________________________________________
Wage earners’ and independent workers’ insurance system_____
Salaried employees’ insurance system__________________________
Miners’ insurance system_ __________________________ _____ —
_
Bolivia___________________________________________________________
Bank employees’ insurance system___________________________ _
Brazil____________________________________________________________
Public-utility-company employees’ insurance system_ ________
_
Bulgaria__________________________________________________________
Wage earners’ and salaried employees’ insurance system-------- Canada__________________________________________________________ _
General pension system______________________________________ _
Canadian Government railway employees’ insurance system-----Voluntary insurance— Government annuities___________________
Chile................................................................................................................
Wage earners’ insurance system_____________________________ _
Salaried employees’ insurance system_____ _______ _____________

in

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IV

CO NTENTS
Page

Cuba_____________________________________________________________
Railroad and street-railway employees’ insurance system_______
Maritime workers' insurance system___________________________
Czechoslovakia___________________________________________________
Salaried employees' insurance system__________________________
Manual workers’ insurance system____________________________
State railway employees’ insurance system____________________
Miners’ insurance system_________________________ - ___________
State employees’ insurance system____________________________
Denmark_________________________________________________________
General pension system_______________________________________
Changes in old-age pension legislation contemplated by Danish
Parliament_________________________________________________
France____________________________________________________________
Seamen’s insurance system____________________________________
Registered seamen’s fund_________________________________
Cooks’ and stewards’ fund________________________________
Seamen’s welfare fund______________________________ _____
Voluntary insurance__________________________________________
Railway employees’ insurance system__________________________
Miners’ insurance system____ _________________________________
Regulation of private pension systems-------------------------------------Noncontributory pension system______________________________
Workmen’s and peasants’ insurance system__________________;_
General social insurance system_______________________________
Germany_________________________________________________________
Wage earners’ insurance system_______________________________
Salaried employees’ insurance system --________________________
Bank employees’ insurance system____________________________
National Federation of Miners’ insurance system______________
Great Britain_______________________________ ______________________
Voluntary insurance__________________________________________
Kinds of old-age pensions now in operation----------------------------Old-age pensions under acts of 1908 to 1924---------------------------Contributory insurance_______________________________________
Greece____________________________________________________________
Wage earners’ and salaried employees’ insurance system_______
Seamen’s insurance system____________________________________
Greenland________________________________________________________
General pension system_______________________________________
Guernsey, Isle of__________________________________________________
General pension system_______________________________________
Hungary__________________________________________________________
Wage earners’ and salaried employees’ insurance system----------Miners’ insurance system_________________________________
Iceland_____ _______ _____________________ _______ ____ _____________
General system_______________________________________________
Irish Free State___________________________________________________
General pension system_______________________________________
Italy______________________________________________________________
Voluntary insurance_________________________________________ General compulsory insurance system________________________ _

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CO N TEN TS

V
Page

Japan____________________________________________________________
Voluntary insurance— Post-office annuities-------------------------------Lithuania (Memel Territory)______________________________________
General insurance system_____________________________________
Luxemburg----------------------------------------------------------------------------------Wage earners' insurance system_______________________________
Salaried employees' insurance system__________________________
Netherlands______________________________________________________
Compulsory insurance for workers_____________________________
Voluntary insurance__________________________________________
Newfoundland____________________________________________________
General pension system_______________________________________
New Zealand_____________________________________________________
General pension system_______________________________________
Norway__________________________________________________________
General pension law of 1923__________________________________
Paraguay_________________________________________________________
Railway employees' insurance system_________________________
Poland___________________________________________________________
Salaried employees' insurance system__________________________
Manual workers' insurance system____________________________
Railroad workers' insurance system___________________________
Miners' insurance system________ - ___________________________
Portugal__________________________________________________________
Workers' insurance system— Law of 1919______________________
General insurance system— Law of 1928 (suspended)___________
Rumania_________________________________________________________
South Africa, Union of____________________________________________
General pension system_______________________________________
Spain_____________________________________________________________
Compulsory insurance________________________________________
Other forms of insurance______________________________________
Sweden___________________________________________________________
Compulsory insurance________________________________________
Supplementary voluntary insurance___________________________
Pension funds and aid societies____________________________________
Switzerland_______________________________________________________
Cantonal systems_____________________________________________
Canton of Neuchatel_____________________________________
Canton of Vaud__________________________________________
Canton of Glarus_________________________________________
Canton of Appenzell a/Rh________________________________
Canton of Bale-Ville______________________________________
Proposed Federal compulsory insurance system________________
Uruguay__________________________________________________________
General insurance system_____________________________________
Public-service employees' and wage earners' insurance system___
Bank employees' insurance system_____________________________
Limited-liability-company employees' insurance system________
Journalists and printers' insurance system_____________________
Yugoslavia________________________________________________________
Wage earners’ insurance system_______________________________
Index_______________________________________________________________ __

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BULLETIN OF THE

U. S. BUREAU OF LABOR STATISTICS
n o . 561

WASHINGTON

F e b r u a r y , 1932

PUBLIC OLD-AGE PENSIONS AND INSURANCE IN THE
UNITED STATES AND IN FOREIGN COUNTRIES
Introduction
This bulletin has been prepared in response to many requests, both
official and unofficial, for a brief review of the various old-age pension
and insurance plans in the United States and foreign countries.
Part 1 gives a brief history of public old-age pension legislation in
the United States, a comparative analysis of such laws, and a repro­
duction of the text of the 17 laws on the statute books, as well as the
results of studies of the Bureau of Labor Statistics on the operation
of these laws.
Part 2 deals with the public old-age pension and insurance systems
in 39 foreign countries. The descriptive reports for these countries
were prepared by the consular representatives of the United States
Department of State in the several countries concerned, in accordance
with an outline and a memorandum of instructions prepared by the
Bureau of Labor Statistics.
The subject of old-age pensions has of late years been receiving
more and more attention. Although, in the United States, the first
active step toward the passage of a State law providing public pen­
sions for aged citizens was taken as early as 1907, with the appoint­
ment of an investigative commission in Massachusetts, the actual
passage of such a law was not accomplished until 1915, when Alaska
enacted legislation on the subject. Then followed an interval of
eight years. In 1923, Nevada, Montana, and Pennsylvania passed
pension laws, but that of Pennsylvania was declared unconstitutional
and that of Nevada was repealed, leaving only that of Montana.
In 1925 the Nevada Legislature acted again on the subject, and Wis­
consin also passed a pension law. One law (that of Kentucky) was
passed in 1926, and two laws (those of Colorado and Maryland)
were enacted in 1927. The year 1928 elapsed without action except
in Massachusetts where what might be called a “ public bequest”
law was passed, providing for the payment of pensions out of any
gifts which public-spirited citizens might make for the purpose;
this law was never of any practical effect. Beginning with 1929,
legislative action in this field has been increasingly wide. In that
X

2

PU B LIC OLD-AGE PEN SIO N S AND IN SU RA N CE

year four pension acts (those of California, Minnesota, Utah, and
Wyoming) and in 1930 two acts (those of Massachusetts and New
York) were passed. In 1931 five additional States (Delaware, Idaho,
New Hampshire, New Jersey, and West Virginia) acted in this field,
while in Indiana a measure passed by the legislature was vetoed by
the governor. Thus there are now on the books old-age pension or
relief acts in Alaska and in 17 States, though not all of these States
have actually begun the payment of pensions.
In the United States in all but one of the acts passed thus far the
agency immediately responsible for the determination and payment
of pensions is the county, city, or town authorities, and in 11 States
(Colorado, Idaho, Kentucky, Maryland, Minnesota, Montana, Ne­
vada, New Hampshire, Utah, West Virginia, and Wyoming) these
officials are also the final authorities. In those States in whicn some
measure of State aid is given (California, Massachusetts, New Jer­
sey, New York, and Wisconsin) the State has some authority as to
the payment of pensions. In Delaware, where the entire cost is borne
by the State, the whole matter is in the hands of a State commission.
No Federal action has as yet been taken in the United States,
though several bills have been introduced into recent sessions oi
Congress.
All of the systems established under State laws in the United
States are straight pension plans, the entire cost being borne by the
public through taxation. Studjr of the experience abroad shows that
while a few countries have similar pension schemes, and some have
both pension and insurance plans, in the great majority the system
is conducted on an insurance basis, with (in most cases) the workers,
the employers^ and the State all contributing in fixed proportions.
Another point of difference is that Under the majority of the
earlier old-age pension laws in the United States the adoption of the
pension system is optional with the county or local authorities, while
most of the foreign laws make the pension or insurance plan compul­
sory for all citizens or certain classes. The trend in the United
States in the past few years, however, has also been toward the
mandatory form of law.

PART 1

PUBLIC OLD-AGE PENSIONS IN THE
UNITED STATES

Part 1.—PUBLIC OLD-AGE PENSIONS IN THE
UNITED STATES
Introduction
Although State legislation to provide assistance for indigent aged
citizens is of comparatively recent development in the United States,
the movement has gathered impetus during the past few years and
there were at the end of 1931 such laws in 17 States.1
In not all of these States has the actual payment of pensions be­
gun. At the end of 1930, an inquiry by the United States Bureau
of Labor Statistics showed, only nine States had actually put the
system into force. These were the States of California, Colorado,
Kentucky, Maryland, Montana, Nevada, Utah, Wisconsin, and Wy­
oming. In these States 10,307 old people were being given periodic
cash payments, at an average rate of $14.32 per month. Altogether,
the citizens of these States spent $1,714,388 in old-age pensions dur­
ing 1930.
Five counties in Minnesota adopted the pension plan, but none of
these paid any pensions in 1930.
New York began the payment of pensions January 1, 1931, and
data supplied to the Bureau of Labor Statistics by the New York
State Department of Social Welfare show that 42,021 persons were
receiving old-age relief in that State in August, 1931, and that dur­
ing the five months ending August 31, 1931, the sum of $5,138,582
was disbursed for this purpose. In Massachusetts, according to re­
ports, at the end of the first two months’ operation (July and Au­
gust, 1931) some 2,000 pensions had been granted. In Delaware, at
the end of August, 1931, pensions had been granted to 1,000 per­
sons. No data are available as to the operation of the act in Idaho.
The above figures indicate, however, that the old-age pension acts
have been the instrument of aid to more than 55,000 aged persons in
these 12 States.
The early old-age pension laws in the United States were nearly
all of the type which left the adoption of the system to the
option of the counties. A definite trend toward the mandatory form
is discernible of late years, however. Of the 13 laws on the books
at the end of 1930, 5 were mandatory. Of the five laws passed in
1931, four were mandatory, while the 1931 legislatures of Colorado
and Wisconsin changed tneir laws from the optional to the manda­
tory form.
Another definite trend is toward State aid, in increasing propor­
tions. At the end of 1928, of the six States with pension legisla­
1 California, Colorado, Delaware, Idaho, Kentucky, Maryland, Massachusetts, Minnesota,
Montana, Nevada, New Hampshire, New Jersey, New York, Utah, West Virginia, Wiscon­
sin, and Wyoming.

6

PU B LIC OLD-AGE PEN SIO N S IN T H E U N ITED STATES

tion, only Wisconsin provided for State aid (to the extent of onethird of the cost). At the end of 1930, of the 12 States with such
laws, 4 provided for State aid; one-half of the total cost was at
that time the maximum proportion met from State funds. In 1931,
of the 5 States passing new pension laws, 2 provided for State par­
ticipation in cost, 1 to the extent of three-fourths and the other the
entire cost. Of the 17 States now having such laws, 6 have the
State-aid plan, 2 bearing one-third, 2 one-half, 1 three-fourths, and
1 all of the cost.

History o f Old-Age Pension Legislation in the United
States
The first active step in connection with old-age pensions seems to
have been the appointment of a commission by Massachusetts in 1907
to investigate and report on the subject. Iso action resulted from
that report.
In 1914 Arizona made an attempt to provide a system of oldage pensions. An initiative act was passed (Acts of 1915, initiative
measures, p. 10) abolishing almshouses and establishing old-age and
mothers’ pensions. The act was so loosely worded that before it
could come into effect it was pronounced unconstitutional on the
ground of its vagueness, the constitutionality of its pension pro­
visions, if properly expressed, being left undiscussed. Alaska fol­
lowed with a law, passed in 1915, providing a pension of $12.50 a
month to those aged 65 and upward who met certain requirements as
to residence, need, and character. This law has been amended several
times but is still in operation.
The effects of the war renewed interest in the idea of provision for
the aged, and within the last decade a number of State commissions
have been appointed, and in some cases action has followed their re­
ports. In 1923 Nevada, Montana, and Pennsylvania enacted old-age
pension laws. In Ohio in the same year the question of establishing
an old-age pension system was submitted to a referendum vote and
was decided adversely by a vote of almost 2 to 1. In 1924 the Penn­
sylvania law was declared unconstitutional, the decision being based
largely on a clause in the State constitution prohibiting the legisla­
ture from making appropriations for charitable, benevolent, and
educational purposes.
The year 1925 saw much activity in regard to old-age pensions,
with varying results in different States. In both Nevada and Mon­
tana bills were introduced repealing the old-age pension laws, and in
Nevada the repeal was accomplished. A number of State commis­
sions brought in favorable reports, and by the middle of the year
bills were pending in Michigan, Illinois, Minnesota, Ohio, Maine,
New Jersey, and Indiana. In Texas and Kansas bills were reported
favorably but failed to pass either house of the legislature. In New
Jersey and Indiana they passed the lower house but were not acted
upon by the upper chamber. In Colorado, Minnesota, and Utah
commissions to study the subject were appointed. In Pennsylvania
the legislature created a new commission to study the question further
and passed a resolution providing for a constitutional amendment to
permit appropriations for old-age pensions. In Nevada a new law

H ISTO R Y OF PEN SION LEGISLATION

7

was enacted, differing in some respects from the former one. Wiscon­
sin passed an old-age pension law, which was signed by the governor,
and California passed one, which was vetoed.
In January, 1926, the legislature of Washington passed an old-age
pension act, but this was vetoed by the governor. Early in 1926 the
Virginia State commission brought in a favorable report recommend­
ing the adoption of an old-age pension system, and a bill to that effect
was introduced into the Virginia Legislature. In Massachusetts a
commission on the subject handed in a divided report. The majority
recommended a bill establishing a pension not to exceed $1 a day to
needy citizens aged 70 or over, but the legislature adjourned without
taking any action. In the spring of 1926 the legislature of Kentucky
passed an old-age pension law which became effective June 24 of that
year, Maryland and Colorado each passed one in 1927, and a year
later a law was passed in Massachusetts. Mention has been made
above of the report of the Massachusetts commission and its recom­
mendation. In the law which was finally passed, the report of the
majority of the commission was ignored and a suggestion made in one
section of the minority report was adopted instead. This law, which
could hardly be termed an old-age pension law but might more accu­
rately be called a “ public bequest ” law, was passed in 1928.
A joint legislative committee was appointed in New York in 1926
to make a survey and report upon the condition of the aged poor in
the State, with a view to legislative action.
The close of 1928 found old-age pension laws in effect in six
States (Colorado, Kentucky, Maryland, Montana, Nevada, and
Wisconsin) and Alaska, with bills pending in the legislatures of a
number of other States.
In 1929 the movement showed fresh impetus, and the States of
California, Minnesota, Utah, and Wyoming legislated in this field;
1930 was marked by the passage of a law in Massachusetts (supersed­
ing its “ public bequest law) and of one in New York.
Even greater activity was shown in 1931. The Old Age Security
Herald is authority for the statement that 100 pension bills were
introduced into the legislatures of 38 States. Of the States which
met in legislative session in 1931, five (Delaware, Idaho, New Hamp­
shire, New Jersey, and West Virginia) enacted new old-age pension
laws, while in nve others amendatory action was taken on laws
previously passed. Thus the Colorado and Wisconsin acts were made
mandatory upon the counties. Wyoming and Minnesota passed
amendments designed to facilitate the raising of funds to finance the
pension plans, and Maryland reduced from 15 to 10 years the period
of residence required and eliminated the property qualification. The
Pennsylvania constitution was amended to allow payment of pen­
sions; this measure must be repassed in 1933 and then submitted to
referendum. Thus the end of 1931 shows 17 States and Alaska with
such legislation.

Comparison o f Laws
The Alaska and Delaware laws are on a different basis from the
Jaw of the other jurisdictions which have legislated on the subject
s
of old-age pensions, since under these two laws the State or Terri­
tory not only has control, but also bears the expense of operation.

8

PU B LIC OLD-AGE PEN SIO N S IN T H E U N ITED STATES

In the other jurisdictions the pension is a county matter, and in all
of the States applications for pensions are filed with and passed
kipon by the county (through its board of county commissioners, its
county judge, its welfare board, etc.). And in all but six States the
whole cost of pensions paid under the law is borne by the county
adopting the system. In California and New York the county or
local welfare district is reimbursed by the State to the extent of onehalf of the cost of the plan, and in Massachusetts and Wisconsin
one-third of the cost. In New Jersey the State will bear threefourths of the cost and in Delaware the whole cost of the pensions.
Ten States (California, Idaho, Maryland, Minnesota, Montana,
Nevada, New Hampshire, New Jersey, Utah, and Wyoming) provide
administration by county boards, while four others (Colorado, Ken­
tucky, West Virginia, and Wisconsin) provide that the county
or circuit judge shall decide who will receive pensions. The Alaska
act provides that the board of trustees of the Alaska Pioneers5Home
shall administer the system. In Massachusetts and New York, ad­
ministration is through city or county boards of social or public
welfare, while the Delaware act is administered by a State
commission.
Benefits
Requirem ents fo r Pensions

Each law sets forth the conditions under which pensions will be
allowed. The Alaska law provides that the board of trustees of the
Alaska Pioneers’ Home shall investigate applications “ and if it
finds that his or her case is worthy and that he or she is in actual need
of such allowance, the said board shall enroll him or her as a
beneficiary under this act.” The California law provides that “ sub­
ject to the provisions of this act, every person residing in the State
of California, if in need, shall be entitled to aid in old age from the
State” and that it shall be the duty of the board of supervisors
to receive and act upon applications for aid. The Massachusetts law
states that “Adequate assistance * * * shall be granted,” while
the New York statute provides that “ old-age relief shall be given
by the city and county public welfare districts and by such other cities
as may elect to administer old-age relief.” The Idaho, Montana, and
Wyoming laws provide that “ there shall be established in each
county or the State ” an old-age pension commission which “ shall
perform all the duties imposed upon it by this act ” and that “ Every
person (man or woman, married or single) shall, in the discretion
of the old-age pension commission, while residing in the State
* * * be entitled to a pension in old age, subject- to the restric­
tions and qualifications hereinafter noted.” Practically the same
provision as the above with regard to the right of residents to receive
the pension is ffound in the laws of Nevada and New Jersey. The
Utah law provides that the board of county commissioners of each
county in the State “ shall have the power to provide funds in the
county treasury for the purpose of carrying out the provisions of
this act.” The Colorado law (as amended in 1931> provides that
the board of county commissioners in each county 6 shall establish

COMPARISON OF LA W S

9

a system of old-age pensions ” and “ shall annually appropriate
sufficient sums to carry out the provisions of the act.
Three States (Kentucky, Maryland, and Minnesota) provide op­
tional features in which it is definitely stated in the law that the
county may elect to adopt the old-age pension system. The States
differ in that they make it more or less difficult for the county to
adopt the system. The Minnesota and the West Virginia laws are
probably the most difficult, in that, while they authorize any county
m the State to establish a system of old-age pensions, “ before
so doing the proposition of the establishment of such a system
shall be duly submitted to the legal voters of the county at the ensuing general election to be held therein, and if a majority of the
legal voters voting at such election shall vote in favor of the estab­
lishment of such a system, then it shall be established in said county
pursuant to the conditions of this act.” The Maryland act provides
that “ The mayor and council of the city of Baltimore, or the county
commissioners of any county, are hereby authorized to establish a
system of old-age pensions in accordance with the provisions of this
article.” The Kentucky law provides that “ the fiscal court or county
commissioners of each of the counties of the State may, after first
adopting the provisions of this act; establish a system of old-age pen­
sions in accordance with the provisions provided herein.”
To be eligible for receipt of the pension, the applicant must have
attained a certain age—65 years in Alaska (women 60), Colorado,
Delaware, Idaho, Maryland, Nevada, Utah, West Virginia, and Wyo­
ming; 70 in California, Kentucky, Massachusetts, Minnesota, Mon­
tana, New Hampshire, New Jersey, New York, and Wisconsin. He
must usually be a citizen of the United States for 15 years and must
fulfill certain residence qualifications. Thus, residence in the State
for a specified period is required—5 years in Delaware; 10 years in
Idaho,2Kentucky, Maryland, Nevada, New York, and West Virginia;
15 years in California,8 Colorado, Minnesota,8 Montana,4 New
Hampshire, New Jersey, Utah, Wisconsin,8 and Wyoming; and 20
years in Massachusetts. Most of the laws also require residence in
the county or local welfare district—1 year in California, New
Jersey, and New York; 3 years in Idaho; 5 years in Utah and
Wyoming; 10 years in Kentucky, Maryland, and West Virginia; and
15 years in Colorado, Minnesota,8 New Hampshire, and Wiscon­
sin.8 The Alaska law provides that the applicant must have resided
in the Territory since 1906.
Most of the laws exclude certain classes from benefits, the most
common exclusions being persons with children or relatives able to
support them, family deserters, habitual tramps and beggars, and
inmates of certain public institutions. There are also certain prop­
erty qualifications m most of the laws. Thus, no person is eligible
for the pension who owns any property in West Virginia: has propertyvalued at $2,500 or over or has an income exceeding $400 a year
in Kentucky; has property worth over $2,000 in New Hampshire;
* Or, if not continuous, 15 years, 5 o f which immediately preceded date o f application
for pension.
• Or, i f not continuous, 40 years, 5 of which immediately preceded application for
pension.
4 Or, if not continuous, 25 years, 5 of which immediately preceded application for
pension.

10

P U B LIC OLD-AGE PEN SIO N S IN T H E U N ITED STATES

has property worth over $3,000 in California, Colorado, Minnesota.
Nevada, New Jersey, and Wisconsin; or has an annual income ox
more than $300 in Idaho, Montana, and Utah, or of more than $360
in Wyoming.
Am ount o f Pensions

The maximum pension payable under the law is set at an amount
which, when added to the other income, does not exceed $1 a day in
California, Colorado, Maryland, Minnesota, Nevada, New Jersey,
West Virginia, and Wisconsin; $7.50 a week in New Hampshire;
at $25 a month in Delaware, Idaho, Montana, and Utah; at $30 a
month in Wyoming; at $35 a month for men and $45 a month for
women in Alaska; and at $250 a year in Kentucky. No maximum
is set in either Massachusetts or New York, but in Massachusetts,
in fixing the allowance, consideration must be given to the appli­
cant’s resources, and the amount awarded must be sufficient to pro­
vide “ suitable and dignified care,” while in New York the pension
must be such as will “ provide adequately ” for his needs.

Summary o f Provisions o f Laws
The table following shows the main features of the plans.

T a b l e 1 .—

Old-age pension systems in the United States

Required period of—
State

Age

Maximum pension

15
15

Colorado________

65 ___ do..................

15

Delaware________

65 $25 a month_________

15

5

Idaho - . . . . . . . . . . _

65 ___. d o . . . . . —. . . _____

15

10

70 $250 a year__________

15

10

65 $1 a d a y . ...........__

15

10

Massachusetts__. .

70 No limit___________

Minnesota_____

70 $1 a day____________

<15

15

Montana________

70 $25 a m on th ........__

15

15

Nevada____ _____

65 $1 a d a y ........__ ___

15

10

New Hampshire...

70 $7.50 a week..__. . . __

15

15

New Jersey_______

70 $1 a d a y . . .. .. .. . .. .. ..
1 Females.

Citation

20

Years

N o o t h e r sufficient
means of support.

Board of trustees of Alas* Territory,.,.______ ___ Acts of 1929, ch. 65.
ka Pioneers’ Home.

1 Assets, $3,000 . . . . . . . . . . . County or city and
county boards of su­
pervisors.
15
County judge -

Half by county, or city Acts of 1929, ch. 530.
and county; half by
State.
County... . . . . . . _ Acts of 1927, ch. 143, as
amended by Acts of
1931, ch. 131.
State old-age welfare State . . . . . . . . . . . . . . . . . . Acts of 1931, ch. 85.
commission.
3 Income, $300 a year....... County probate judge County
.
.. Acts of 1931, ch. 16.
and county commis­
sioners.
10 Income, $400 a year; County judge_____ _
Acts of 1926, ch. 187.
assets, $2,500.
10
County commissioners.. County, or city of Balti­ Acts of 1931, ch. 114.
more.
County or city board of
public welfare.

Two-thirds by county or Acts of 1930, ch. 402.
city; one-third by
State.
15 Assets, $3,000 . . . . . . . . . . . County commissioners.. Payments by county. Acts of 1929, ch. 47, as
amended by Acts of
Cities, towns, and vil­
1931, chs. 72 and 138.
lages to reimburse
county.
Acts of 1923, ch. 72.
Income, $300 a year. __
do _____________ County.
Assets, $3,000....______ ___ do . . . . . . . . . . _____
15 Assets, $2,000_________ ____do_ ____________
_

.......do .......................... Acts of 1925, ch. 121.

Payments by county. Acts of 1931, ch. 165.
Cities and towns to
reimburse county.
1 Assets, $3,000_________ County welfare board. . . One-fourth by county, Acts of 1931, ch. 219.
15
three-fourths by State.
* Citizenship required but no period specified.
* Required period of residence in United States.

O LAWS
F

Kentucky..._____
Maryland.. . . . ___

’ Males*

Funds provided by—

O PROVISIONS
F

15

<
*)

Administered by—

State County

Years Years
Since
(»)
1906.

(*)

Maximum property
limitations

Residence

SUMMARY

r* 65 ($35 a month for males,
Alaska___ . . . . . . . . 1*60 • $45 a month for feJ
California---- - 70 $1 a d a y ............__

Citizen­
ship

T a b le

1. — Old-age pension systems in the United States— Continued

State

Age

Maximum pension

Citizen*
ship

15

15

West Virginia.......
Wisconsin_______

65 $1 a day____________
70

15
15

10
15

Wyoming_______

65 $30 a m onth.....__ . . .

15

15

Years
1 Wholly unable to sup­
port self.
5 Income during past year,
$300.
10 Any property or income 15 Assets, $3,000_________

City or county board of Half by city or county;
half by State.
social welfare.
Board of county com­
missioners.
County court_________
County judge---- --------- Payments by county.
State to refund onethird; city, town, and
village to refund twothirds.
5 Income, $360__________ County commissioners..

Acts of1930, ch. 387.
Acts of 1929, ch. 76.
Acts of 1931, ch. 32.
Acts of 1925, ch. 121, as
amended by Acts of
1929, ch. 181, and
Acts of 1931, ch. 239.
Acts of 1929, ch. 87.

I
N TH
E

* Citizenship required but no period specified.

Citation

PENSIONS

65 $25 a month_________

Utah___________

Funds provided by—

OLD-AGE

Years
10

70 No limit___________

Administered by—

State County

Years
(»)

New York...—-----

Maximum property
limitations

Besidence

PUBUO

Bequired period of—

UNITED
STATES

AN A L YSIS OF LA W S

13

Analysis o f Various State Pension Laws
Alaska.—Alaska has the distinction of being the pioneer among
the States now having old-age pension legislation, having passed its
first law on the subject in 1915.5 Practically every session of the
Alaska Legislature since that time made changes in the law, until
finally, in 1929, the act and its amendments were rewritten, and
the whole was passed as chapter 65 of the Acts of 1929.
The act, besides providing for the maintenance of the Alaska
Pioneers’ Home, at Sitka? makes the three trustees of the home ad­
ministrators of the pension fund also. An 6 aged pioneer” may
6
choose whether he will be cared for at the home or through the
pension.
To be eligible for the pension allowance, the applicant must be a
resident of Alaska since 1906, a citizen of the United States; must, if
a man, have attained the age of 65, or if a woman, 60 years; must
be “ worthy ” and “ in actual need of such allowance.” No maximum
amount of income is set, beyond which receipt of pension is barred,
the applicant being required only to show that he is “ dependent in
part upon an allowance from the Territory for a living and has no
other sufficient means of support.”
In fixing the allowance the board is to take into consideration the
necessities of the individual applicant and the cost of living in the
locality where he resides, but in no case may the allowance exceed
$35 a month for a man or $45 a month for a woman. If the appli­
cant proves to be incapable of handling his money wisely, the board
may appoint some one to disburse it for him so as to provide for his
maintenance.
The whole cost of both pension and home is borne by the Territory.
California.—In California the act (Acts of 1929, ch. 530) entitles
to aid any person 70 years of age or over who has been a citizen of the
United States for 15 years; who has resided in the State con­
tinuously for 15 years immediately preceding application for pen­
sion (or for 40 years, 5 of which immediately preceded appli­
cation), and in the county or city for 1 year; who has no children
able to support him; and who has not deserted his family within the
past 15 years. Inmates of public penal, correctional, or mental insti­
tutions are barred from pension. No pension may be paid to a per­
son whose property exceeds $3,000, nor may the aid granted exceed an
amount which, added to the other income, will equal $1 per day.
This law creates a State division of State aid to the aged, to
supervise the measures taken by the cities and counties under the law,
and provides that one-half of the cost of the system shall be borne
by the State. The act provides that the county’s share “ shall be
paid * * * in the same manner as other expenses of such county
or city and county are paid.”
Colorado.—The Colorado act (Acts of 1927, ch. 143) provided for an
optional county system. It was amended in 1931 (by ch. 131), mak­
ing adoption of the system mandatory upon the counties. The county
judge and the board of commissioners of the county are charged with
the administration of the act. Pensions under the act may not exceed
5 Arizona had passed such a law in 1914, but it was pronounced unconstitutional, on
the ground of vagueness, even before it had time to come into effect.

L4

PU B LIC OLD-AGE PENSION'S IN T H E U N ITED STATES

an amount which, when added to the other income, will total $1 per
day and may be granted only to persons 65 years ox age or over who
have been citizens of the United States for 15 years and have resided
in the State and county for 15 years immediately preceding date of
application.
No person shall be granted a pension (1) who is an inmate of an
infirmary, insane asylum, or any other public correctional institu­
tion, or of a private benevolent institution; (2) who has been im­
prisoned for a felony within the past 10 years; (3) who without
just cause has deserted wife (or husband) and children under 15
for six months or more during the past 15 years; (4) who has been
a habitual vagrant or beggar within the past year; (5) who has
children or others responsible for his support; (6) who has property
in excess of $3,000; or (7) who has deprived himself of property
in order to receive the pension.
If the pensioner is found incapable of taking care of himself or his
money, some one may be appointed to take charge of his finances.
Burial expenses, in an amount not exceeding $100, may be paid by
the county if the estate of the pensioner is insufficient to defray such
expenses.
The whole cost of the plan is borne by the individual counties; the
law provides that the board of county commissioners of the adopting
county shall appropriate annually a sum sufficient to carry out the
law but makes no suggestion as to how the money shall be raised.
Delaware.—The Delaware act (Acts of 1931, ch. 85) is unique
among the old-age pension laws thus far enacted,, for under it all
of the cost is borne by the State.
This act went into effect July 1, 1931.
A State old-age welfare commission is created under the act. The
membership of the original commission is appointed by the governor
and selected from each of the three counties (rural New Castle,
Kent, and Sussex) and the city of Wilmington; subsequent appoint­
ments are to be made by the chief justice of the State supreme court*
The members of the commission are to serve without pay but will be
entitled to an attendance fee of $5 for each meeting held and other
expenses in the performance of their duties.
To be eligible for benefits under the law the applicant must be
(1) 65 years of age or over, (2) a resident of the United States for
15 years and a resident of Delaware for not less than 5 years, and
(3) without children or other responsible persons to support him.
No one may receive assistance (1) who has disposed of any prop­
erty for the purpose of obtaining assistance, (2) who is an inmate
of any public reform or correctional institution or charitable or
benevolent institution, or (3) who has been a professional tramp or
begger one year prior to making application.
The amount of assistance allowed is dependent upon the circum­
stances in each case as shown by investigation by the commission
but is limited to $300 annually, including the applicant’s income
from property or other sources. No amount in excess of $25 per
month shall be allowed.
When the commission determines that a person is entitled to assist­
ance, a certificate is to be issued showing the^ amount of monthly
assistance granted. This certificate shall be valid for one year unless

A N A L Y SIS OP L A W S

15

revoked for cause and is renewable at the option of the commission.
The amount is payable by the State treasurer to the person named in
the certificate, but if he is incapable of receiving it (upon the testi­
mony of at least three credible witnesses) the money may be paid to
some other person for the benefit of the aged person.
The act also provides for the payment of funeral expenses, up to
a maximum of $100.
Pensioners are prohibited from receiving any other public assist­
ance except, in cases of extreme emergency, medical and surgical
treatment. The amount of assistance ceases and the certificate is
canceled upon the pensioner’s admittance to any charitable or
benevolent institution.
Belief granted under the act is not subject to assignment, execution,
sale, or charge, nor to fees allowed attorneys, etc., in bankruptcy
proceedings. The property of qualified persons under the act is
exempt from taxation and assessment for public purposes.
An annual appropriation of $200,000 is made by the act, and all
expenses and salaries are to be paid from this appropriation.
Idaho.—Under the Idaho act (Acts of 1931, ch. 16), which went
into effect April 12, 1931, a county old-age pension commission is
created in each county of the State. The membership of the com­
mission consists of the county probate judge and the board of county
commissioners. The commissioners serve without extra compensa­
tion and their duties are prescribed by the State department of public
welfare.
To be eligible for benefits under the law the applicant must be
(1) 65 years of age or over; (2) a citizen of the united States for
15 years; (3) a resident of Idaho for not less than 10 years (or 15
years, at least 5 of which immediately preceded date of application),
and a resident of the county for 3 years. An added qualification pro­
vides that during such resident period the applicant must have
pursued some useful occupation or profession as far as possible. No
person may receive a pension (1) who has been imprisoned during
the 10 years preceding the date of application • (2) during the same
period, has deserted his (or her) spouse or children; (3) who has
been a professional tramp or beggar within one year prior to making
application; (4) who has deprived himself of any property for the
purpose of obtaining a pension; (5) who has no child or other re­
sponsible person able to support him; or whose annual income
(including pension) exceeds $300.
The amount of pension allowed is determined by the commission
after an investigation of each case, subject to a maximum of $25
per month. Upon approval of the application and the establishing
of a rate of pension for the first year, a certificate is issued stating
the amount of the monthly pension. Annual renewal of certificates
is required. All pensions are paid monthly. If the beneficiary
is incapable of taking care of his money or himself (upon the testi­
mony of at least three reputable witnesses) the commission may
order the payment to a guardian of such person or may even entirely
suspend payment. Upon death of a beneficiary? if his estate is
insufficient to defray the funeral expenses, an additional allowance,
limited to $100, shall be made for this purpose.
Whenever a person receiving a pension becomes an inmate of a
charitable institution, payments accruing upon a certificate must be

16

PU B LIC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

paid to such institution. Pensioners are prohibited from receiving
any other public relief^ except for medical and surgical assistance.
Uld-age pension certificates granted under the act are not subject
to sale, assignment, execution, or attachment, nor may they pass to
any trustee in bankruptcy cases. Upon the death of a pensioner or
the last survivor of a married couple, the total amount of pension
plus interest at 5 per cent per year from the date of allowance shall
be a preferred claim against the estate of the deceased. Any amount
recovered is to be refunded to the county treasury to the credit of
the county poor fund.
Under the system the entire cost of the pension is borne by the
individual counties.
Kentucky.—The Kentucky act (Acts of 1926, ch. 187) provides that
in any county which accepts the provisions of the act, an old-age
pension may be granted to persons 70 years or over who have been
American citizens for at least 15 years and residents of the State and
county for at least 10 years. No person may receive the pension who
(1) has an income oi more than $400 per year or who possesses
property in excess of $2,500, (2) who is a professional beggar, (3)
who is an inmate of a public charitable institution, (4) who deprived
himself of property in order to obtain the pension, or (5) who has
children or relatives responsible for his support.
The amount of the pension is determined by the county judge, but
may not exceed $250 per year.
In this State, also, the cost of the pensions is paid by the counties
granting them, the county commissioners being authorized to “ levy,
collect, and disburse such sums of money as may be necessary.”
Maryland.—The old-age pension act of Maryland (Acts of 1931,
ch. 1146) also provides for a county system, whose adoption is optional
with the board of county commissioners and which may be abandoned
after one year’s trial. To be eligible for the pension the applicant
must be 65 years of age or over, have been a citizen of the United
States for 15 years, and a resident of the State and county for 10
years prior to applying for a pension.
The following are excluded from receipt of the pension: (1) An
inmate of an insane asylum or public reform or correctional insti­
tution ; (2) one who has been imprisoned for a felony at any time dur­
ing the past 10 years; (3) one who during the past 15 years has, for a
period of 6 months or more, deserted his wife or failed to support her
or his children under 16 years of age; (4) one who has been a pro­
fessional beggar or trariip within one year prior to application for
pension; (5) one having children or other relatives responsible for
his support.
The amount of pension plus any other income may not exceed $1
per day. If the pensioner proves to be incapable of disbursing his
lunds wisely, the county commissioners may appoint some responsible
person to administer the pension for his benefit.
Burial expenses, not to exceed $125, are allowed if the estate of the
pensioner is insufficient to defray these expenses.
The whole cost must be borne by the counties, but while the county
is directed to make an appropriation for the purpose each year, there
is no provision as to means of raising the money.
• Supersedes Acts o f 1927, ch. 538.

A N A L Y SIS OF LA W S

17

Massachusetts.—Massachusetts joined the ranks of the old-age pen­
sion States in 1930, although its law (Acts of 1930, ch. 402) is really
an extension of the former poor relier law of the State.
Each local board of public welfare is required to establish a bureau
of old-age assistance through which benefits are to be paid to deserv­
ing citizens 70 years of age or over, in need of relief and support, and
who have been residents of the State for at least 20 years prior to
reaching 70. In fixing the amount of the allowance, consideration is
to be given to the resources of the applicant and the ability of chil­
dren or others to support him. No limit is set upon the amount
which may be paid, but the amount must be sufficient to provide
“ suitable and dignified care.” No person is to be deemed a pauper
because of receiving assistance under the law.
One-third of the cost of assistance to needy aged is borne by the
State, which reimburses the town of residence to this extent. In the
case of a person without a legal settlement, the State pays the whole
cost. In the case of a person aided by one town but whose legal
settlement is in another town, the latter place is liable for two-thirds
of the amount.
Supervision of the working of the act is placed in the hands of the
State department of public welfare.
The act went into effect July 1,1931.
Mwmesota.—This law (Acts of 1929, ch. 47, as amended by Acts
of 1931, chs. 72 and 138), like most of the acts which preceded it in
other States, makes the adoption of its provisions optional with
the county. In this State, however, for acceptance a majority of all
the votes cast in the county, at a general election^ is necessary, but the
board of county commissioners may, by a majority vote, abandon the
system after one year’s trial. To obtain a pension the applicant must
have attained 70 years of age and have been a resident of the United
States, State, and county for 15 years (or in the State and county for
40 years, at least 5 of which have immediately preceded the applica­
tion). The property qualification is set at $3,000. The pension,
added to all other income, may not exceed $1 per day.
Funeral expenses, not to exceed $100, are also allowed if the pen­
sioner’s estate is insufficient to defray such expenses.
The following are barred from pensions: (1) Inmates of public
insane asylums, penal, or correctional institutions, or of private
charitable or benevolent institutions; (2) persons convicted of a fel­
ony within the past 10 years; (3) men who have for a period of 6
months or more during the past 15 years failed to support their
wives and children under 15 years; (4) habitual tramps or beggars;
(5) persons having children or others responsible and able to support
them; and (6) persons who have deprived themselves of property
in order to obtain the pension.
The system is administered by the board of county commissioners,
which may delegate its powers to the board of public welfare or the
poor commission of the county.
No State aid is provided under the act. The county boards are
directed to make annual appropriations to carry out the provisions
of the law and to collect from the cities, towns, and villages in the
county the sums spent as pensions for their residents. The cities,
towns, and villages are directed to levy a tax for the purpose or
paying their share of the cost.

18

PU B LIC OLD-AGE PENSION'S IN T H E U N IT E D STATES

Montana.—Under the Montana law (Acts of 1923, ch. 72) the
pensions are strictly county matters. The law directs the board of
county commissioners of each county to act as an old-age pension
board or commission. To be eligible for a pension the applicant
must be 70 years of age or over, have been a citizen of the United
States and a resident of the State for at least 15 years prior to appli­
cation, or have resided in the State for 25 years, at least 5 of winch
immediately preceded application.
The following are excluded from pensions: (1) Persons who have
been imprisoned in the State penitentiary during the past 10 years;
(2) a man who during the past 15 years has, for a period of 6 months
or more, deserted his wife or failed to support her or his children
under 15 years of age, or a wife who has deserted her husband or
failed to support such of her children as she was bound to support;
(3) persons who have been professional beggars or tramps within
one year preceding application for the pension; (4) persons who
have children or other persons responsible for their support; (5)
persons who have an annual income exceeding $300; and (6) persons
who have deprived themselves of property in order to become eligible
for the pension.
The amount of pension may not exceed $25 a month, and may
be less than that according to the conditions in each case.
Funeral expenses, not to exceed $100, may also be allowed if the
pensioner’s estate is insufficient to defray such expenses.
In this State, also, the cost of the system is borne by the adopting
county; there is no provision as to how the funds shall be raised.
Nevada.—The Nevada law (Acts of 1925, ch. 121) authorizes the
county commissioners to pay pensions to the aged poor who fulfill
the requirements of the law. The act specifically states that the
pension is established “ in recognization of the just claims of the
inhabitants mentioned upon the aid of society, without thereby
annexing the stigma of pauperism by legal definition.”
Applicants must be at least 65 and must have been residents of
the State for 10 years and citizens of the United States for 15 years.
Persons excluded from benefits are: (1) Inmates of insane asylums
or public reform or correctional institutions; (2) a man who during
the past 10 years has, for a period of 6 months or more, deserted his
wife or failed to support her and his children under 15 years of age.
or a wife who has deserted her husband or failed to support such ox
her children as she was bound to support; (3) persons who have been
professional beggars or tramps within one year preceding applica­
tion for the pension; (4) persons who have children or other persons
responsible for their support; (5) persons who have assets exceeding
$3,000; and (6) persons who have deprived themselves of property
in order to become eligible for the pension.
The pension must not exceed an amount which, when added to
the applicant’s income from all other sources, will bring the total
income to $1 a day. In case a pensioner is round incompetent to
handle his money wisely, a guardian may be appointed.
Funeral expenses, not to exceed $100, may also be allowed if the
pensioner’s estate is insufficient to defray such expenses.
The cost of the plan is paid entirely by the county. The law
authorizes the county commissioners to raise the funds necessary,
but fails to specify how this shall be done.

A N A L Y SIS OP LA W S

19

New Hampshire.-—'Ey an act (ch. 165) of the 1931 legislature,
New Hampshire became the seventeenth State to enact old-age pen­
sion legislation. Its law, which went into effect September 1, 1931,
provides for a system of assistance “ for the more humane care and
relief of aged and dependent persons.” Relief is to be extended by
the counties, with reimbursement by the city or town legally charge­
able for the assistance rendered.
To be eligible under the law the applicant must be (1) 70 years
of age; (2) a citizen of the United States for 15 years; and (3) a
resident of the State and of the county for 15 years. The following
are ineligible for the pension: (1) A person who is able to support
himself or has a child or other responsible person able to support
him; (2) who has property exceeding $2,000; (3) who has deprived
himself of any property for the purpose of obtaining a pension; (4)
who is an inmate of a correctional or charitable institution; (5) who
is in need of continued institutional care; (6) who has been impris­
oned for a felony during the 10 years preceding the date of applica­
tion; *(7) who (if a husband) has failed to support his wire and
children (under 16 years) for 6 months or more during the 10 years
preceding the application for relief; (8) who has been a habitual
tramp, beggar, or drunkard within one year prior to the date of
making application.
The amount of pension allowed is fixed according to the condition
of the applicant, subject, however, to a maximum of $7.50 per week
from all sources. Upon the death of a beneficiary an additional
allowance of $125 is made, provided the estate is insufficient to defray
the funeral expenses.
Pensioners are prohibited from receiving any other public relief,
except for medical and surgical assistance. Acceptance of any other
public relief operates as a revocation of old-age assistance.
If a pensioner is incapable of taking care of himself or his money
(upon the testimony of three disinterested and reputable witnesses),
the county commissioners may direct the payment to any responsible
person for the benefit of the pensioner or may suspend payment if
deemed advisable.
Old-age assistance is exempt from attachment and from any tax
levy of the State.
New Jersey.—Under the provisions of the New Jersey act (Acts
of 1931, ch. 219) the old-age pension system goes into operation Janu­
ary 2,1932, and payment of benefits begins July 1,1932.
A division of old-age relief is created in the department of insti­
tutions and agencies. The supervision of old-age relief and the
responsibility for the enforcement of the act are placed under the
chief of tfie division. All rules and regulations made by the division
of old-age relief are binding upon the county welfare boards acting
as the county bureaus of old-age relief. A director of old-age relief
is appointed in each county, and such other officers as are necessary
to carry out the provisions of the act.
To be eligible for relief the applicant must he (1) 70 years of age;
(2) unable to maintain himselx or have no one responsible for his
support; (3) a citizen of the United States; (4) a resident of and
domiciled in the State for 15 years; and (5) in the county where
the application is made for 1 year; and (6) not in need of continued

20

PU B L IC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

institutional care. No one may receive assistance (1) who has made
an assignment of property for the purpose of obtaining assistance;
(2) has been convicted of a felony or misdemeanor; or (3) possesses
property in excess of $3,000.
The amount and nature of assistance is determined by the county
welfare board according to the circumstances of each case, subject to
a maximum of $1 a day. The pensioner shall receive the relief in
his own or some other suitable family home. As a condition to the
granting of the relief it may be required that any property of the
pensioner shall be transferred to the county. Upon the death of a
beneficiary, an additional allowance where necessary may be paid,
not exceeding $100. A person receiving relief under the act shall not
be considered or classed as a pauper. Pensioners are prohibited from
receiving any other public relief, except for medical and surgical
assistance. Nothing in the act, however, shall prevent an aged per­
son 70 years of age, not under the act, from receiving public assist­
ance under any other law.
Amounts paid under the act are free from levy, sale, garnishment,
attachment, or any other process. Pension benefits are also tax
exempt by the State or any political subdivision, and in cases of
bankruptcy the pension assets of the aged poor person do not pass to
the trustee.
Each county must annually appropriate funds necessary for the
administration of the act, but three-fourths of the amount expended
is repaid by the State to each county. The State’s share of old-age
relief is provided from the revenue produced by an inheritance tax.
New York.—The New York law was passed in 1930 (Acts of 1930,
ch. 387), and it, like that of Massachusetts, is in the nature of a
relief law.
Administration is in the hands of city and county welfare boards,
subject to supervision by the State department of social welfare.
The law authorizes any city, forming part of a welfare district, to
elect to set up its own board and pay relief to its own residents di­
rectly instead of through the county board.
To receive assistance under the law the applicant must have
attained the age of 70, be wholly unable to support himself and with­
out relatives responsible for his support, be a citizen of the United
States, and have resided in the State for at least 10 years and in the
public welfare district at least 1 year immediately prior to appli­
cation. Persons barred from assistance under the act include (1)
those in need of continued institutional care because of physical or
mental disability, (2) inmates of public or private homes for aged or
of an institution of a custodial, correctional, or curative character,
and (3) those who have assigned or transferred their property for
the purpose of becoming eligible for relief.
As in Massachusetts, no maximum amount of relief is set, the
officials being instructed merely to “ provide adequately ” for those
eligible for relief under the law, “ with due regard to the conditions
existing in each case.” Wherever practicable the relief is to be in
money, but medical and surgical care and nursing may also be given.
One-half of the amount spent in relief is to be borne by the local
welfare district and the other half by the State, As to raising the
funds the law provides as follows:

AN A L Y SIS OP L A W S

21

The legislative body of the public welfare district shall annually appropriate
and make available to the order o f the public welfare official such a sum as may
be needed for old-age relief, together with a sufficient sum to defray adminis­
trative expenses to be incurred in connection therewith and include such sums
in the taxes to be levied in the territory responsible for such old-age relief.
Should the sum so appropriated, however, be expended or exhausted during
the year and for the purpose for which it was appropriated, additional sums
shall be appropriated by such legislative body as occasion demands to carry out
the provisions o f this article. In cities, such additional sums shall be paid
from unexpended balances not required by law to be expended for a specific
purpose, or from contingent funds where such exist Where such balances are
not available, or such funds do not exist, such moneys shall be raised by tem­
porary loans or notes, certificates of indebtedness, or other obligation* and the
amount necessary to pay such obligations shall be included in the next annual
tax levy. In counties, such additional appropriations shall be paid from funds
in the county treasury available therefor, except that if only part o f the county
constitutes a county public welfare district, only the funds o f such public wel­
fare district shall be appropriated, and then only to the extent of any excess
thereof not needed for the purposes of the public welfare district under other
provisions o f this chapter. Should there be no such county funds, or county
public welfare district funds available therefor, the county treasurer shall bor­
row a sufficient sum to pay such appropriations in anticipation o f taxes to be
collected therefor within the county public welfare district.

This law came into effect May 1,1930, but payments did not begin
until January 1,1931.
Utah.—The Utah law (Laws of 1929, ch. 76) authorizes the board
of county commissioners to pay old-age pensions to persons meeting
the requirements of the law. The applicant must be at least 65, must
have been a citizen of the United States for 15 years, have resided in
the State for 15 years and in the county for 5 years preceding date of
application, and be incapacitated from earning his livelihood.
The following are ineligible for benefit: (1) Persons convicted of
a felony or indictable misdemeanor within the past 10 years; (2)
husbands or wives who have during the past 15 years deserted their
spouses or their children under 15 years; (3) persons who have been
beggars or vagrants within the past vear; (4) those whose income
during the past year exceeded $300; (5) persons who have disposed
of their property in order to become eligible for benefit; ana (6)
persons with relatives responsible and able to support them.
No pension may exceed $25 a month.
Burial expenses not to exceed $100 may also be allowed if the pen­
sioner’s estate is insufficient to defray such expenses.
In this State the law is administered by the county commissioners,
and the cost of the system is paid by the county. The county boards
are authorized to raise the necessary funds (in a manner not
specified).
West Virginia.—The West Virginia act (Acts of 1931, ch. 32)
went into effect June 11, 1931.
A county system of old-age pensions is established. Authorization
to establish the system is given to every county court in the State.
Before the system may be established, however, it must be voted upon
by the people of the county at any general or special election and
must receive a majority of all votes cast at the election. Pensions
then become payable beginning with the next fiscal year, and shall
continue until changed by a vote of the people. After two years’
operation, the county court may, upon its own motion, and must

22

PU B LIC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

upon the petition of 500 taxpayers, submit to a vote of the people the
question of continuing the old-age pension system. Upon a majority
vote opposing the continuance of the system, it shall then be aban­
doned on the following June 30. The question then can not be again
submitted to the people until five years after the date of the last elec­
tion. In counties having a population of 35,000 or more a “ county
pension agent ” for the administration of the act may be appointed.
The salary of such agent is fixed at $250 a month. All records
relating to old-age pensions must be kept by the county court of every
county maintaining a pension system.
An ord-age pension may be granted only to an applicant who (1)
has attained the age of 65 years or more; (2) has been a citizen of
the United States for at least 15 years before making application for
a pension; and (3) has resided in the State of West Virginia and
the county in wnich he makes application continuously for at least
10 years immediately preceding the date of application. No person
may receive a pension: (1) Who is at the time of his application an
inmate of any public or private home for the aged, or any public
home, or any public or private institution of a custodial, correctional,
or curative character, except in the case of temporary medical or
surgical care in a hospital; (2) who is, because of his physical or
mental condition, in need of continued institutional care; (3) who,
during the period of 10 years immediately preceding application, has
been imprisoned for a felony; (4) who has, within one year preced­
ing application, been a habitual tramp or beggar; (5) who has a
child or other person responsible for his support and able to support
him; (6) who has property, income, or other means of support; (7)
who has disposed of or deprived himself, directly or indirectly, of
any property for the purpose of qualifying for the pension; (8) who
receives a pension from the United States or from any State or for­
eign government, or compensation under the laws of the State of
West Virginia.
The amount of the pension is fixed according to the circumstances
in each case, subject to a maximum of $1 a day. In the discretion
of the county court, relief may include medical and surgical care,
including nursing. Provision is made to extend the amount oi
regular relief whenever the pensioner is seriously ill and in actual
need of medical care. Whenever possible, relief must be provided in
the home of the pensioner or some other suitable family home. The
county court determines the amount of regular relief and issues a
certificate showing the amount of the monthly allowance.
In the event that the beneficiary under the act is possessed of prop­
erty (other than household goods and personal property not exceed­
ing $300) at his death, the county court has a prior lien upon such
estate, to the amount of the aggregate payments made plus 3 per
cent interest on such payments. The county prosecuting attorney is
delegated to collect from the estate any funds found to be due.
Upon the allowance of any pension relief by the court, the clerk of
county court must issue drafts on the last day of each month payable
to the beneficiaries.
All pensions are tax exempt and free from levy, sale, garnishment,
and attachment.

A N A L Y SIS OF L A W S

23

A county court of a county maintaining a system of old-age relief
must each year estimate the probable amount needed and levy a
special tax, not to exceed the sum of 5 cents on each $100 of assessed
valuation of property in the county.
Wisconsin.—The Wisconsin law (Acts of 1925, ch. 121, as amended
by Acts of 1929, ch. 181, and Acts of 1931, ch. 239) also throws upon
the county the primary responsibility for pensions, but gives the State
a measure of supervision based upon its contribution of one-third of
the amount thus paid out. Under the original act, any county could
adopt the measure by a majority vote of its board of commissioners
and abandon it after a year’s trial, but by the 1931 amendment* the
system becomes mandatory on all the counties July 1,1933.
Applications for pensions must be made to the county judge. Ap­
plicants must be at least 70, and must have been citizens of the
United States for 15 years, and residents of the State and county for
15 years (or for 40 years, at least 5 of which must have immediately
preceded the application for pension).
Persons excluded from benefit include deserters of families; habit­
ual tramps and beggars; inmates of correctional, charitable, or
mental institutions, or homes for the aged; felons; persons who have
deprived themselves of property in order to become eligible for the
pension; and persons having children or others responsible and able
to support them.
The property qualification is set at $3,000.
The amount of the pension, plus the applicant’s income from all
other sources, may not amount to more than $1 a day. Funeral ex­
penses, not to exceed $100, may also be allowed if the pensioner’s
estate is insufficient to defray such expenses.
A county establishing the system must appropriate annually
enough to meet its demands, and from this the county treasurer must
pay out the pensions upon the order of the judge of the county court.
This is to be repaid by the local units which are responsible for the
pensioner, each city, town, and village reimbursing the county for
all amounts of money paid in old-age pensions to its residents, less
the amounts received by the county from the State.
One-third of the cost is to be repaid to the counties by the State.
Wyoming.—The Wyoming statute (Acts of 1929, ch. 87) also pro­
vides for a county system. To obtain the pension the applicant must
be 65 years of age or older, have been a citizen of the United States
for 15 years, and a resident of the State for 15 years and of the
county 5 years.
The following are excluded from pensions: (1) Persons convicted
of a penitentiary offense within the past 10 years; (2) husbands who
have, without cause, deserted their wives or children under 15 for a
eriod of 6 months or more within the past 15 years, or wives who
ave without cause deserted husband and minor children during the
same period; (3) persons who have been professional tramps or beg­
gars within the past year; (4) persons with incomes of over $360 a
year; (5) persons who have deprived themselves of property in
order to become eligible for the pensions; and (6) persons with chil­
dren or others responsible and able to support them.

E

24

PU B L IC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

The pension may not exceed $30 per month. Funeral expenses,
not to exceed $100, may also be allowea if the pensioner’s estate is in­
sufficient to defray such expenses.
The act is administered by the county commissioners, acting as a
pension committee, and the cost is borne by the county adopting the
system, from the regular county poor fund, but the cost is limited to
the amount of a tax of one-fourth mill on property.

Operation o f State Laws
At the end of 1931, 17 States (California, Colorado, Delaware,
Idaho, Kentucky, Maryland, Massachusetts, Minnesota, Montana^
Nevada, New Hampshire, New Jersey, New York, Utah, West Vir­
ginia, Wisconsin, and Wyoming) had passed laws providing for
old-age pensions or relief. Of these, only nine (California, Colo­
rado, Kentucky, Maryland, Montana, Nevada, Utah, Wisconsin,
and Wyoming) had actually gone into operation at the end of 1930.
The adoption of the system in Minnesota was delayed by the
requirement of the law providing that the question of adoption must
be voted upon at a general election and must receive, for adoption,
a majority of all the votes cast. The matter did not, therefore,
come before the voters of any Minnesota county until November,
1930. At that time the pension plan was adopted in five counties,
but legal and other difficulties with regard to funds still further
delayed the operation of the system, so that no pensions were paid
in that State in 1930. In the other States the laws went into
operation in 1931, as follows: New York, January; Idaho, April;
West Virginia, June; Delaware and Massachusetts, July; and New
Hampshire, September. The New Jersey act does not go into effect
until January 1, 1932, and payments begin July 1, 1932.
In order to ascertain the actual extent of the protection of these
laws, inquiry was made by the Bureau of Labor Statistics, early in
1931, as to the experience in the nine States which had been operat­
ing at the end of 1930. The results of this inquiry and the avail­
able data as to the 1931 experience in Massachusetts, New York, and
Delaware are given in the following pages.
Data were received from each of the nine States whose system was
in force in 1930, covering 377 of the 461 counties. Of these 377
counties, 137 had adopted the pension plan and were, at the end of
the year, caring for more than 10,000 persons, at an expenditure for
1930 of some $1,700,000—an average of $14.32 per pensioner. This
is more than double the number of counties which had the system in
1928, more than ten times as many old people being cared for and
more than eight times as much being expended for their relief as in
1928. Analysis of the figures shows, however2that this increase was
due mainly to the spread of the plan to additional States and not to
any great growth m the original pension States. Practically no
headway has been made in Colorado, Kentucky, or Nevada. In
Maryland, two jurisdictions, one of them containing the largest city
in the State, have recently adopted the plan, and in Montana two

OPERATION OF STATE LAW S

25

additional counties have done so since 1928. The greatest gain over
1928 was shown in Wisconsin. Comparison of the data in the six
States covered in both 1928 and 1930 reveals the fact that in those
States the number of adopting counties increased by about one-ninth,
the pensioners about doubled in number, and the amount spent in
pensions increased about 50 per cent.
Certain defects in some of the State laws are revealed by the
reports. One weakness is the failure to specify means by which the
adopting counties may raise the necessary funds.7 The outstanding
feature revealed, however, is the weakness of the “ optional ” law,
especially where no measure of State aid is provided. Of the eight
States having laws whose adoption is optional with the individual
county, in only two do the adopting counties form as much as oneseventh of the total number of counties in the State, and in two
States, notwithstanding that the laws have been on the books since
1926 and 1927, respectively, they form less than 2 per cent of the
total. In Utah, 13 of the 29 counties, and in Montana 44 of 56 coun­
ties have put the pension system into operation. In Wisconsin, 8 of
the 71 counties had adopted the scheme in 1930 and a ninth has re­
cently joined them; in this State the county receives State aid to the
extent of one-third of the cost of the pensions.
A brighter side to the picture is seen in the fact that though only
a small proportion of counties have adopted the plan these are in
most instances the larger counties, so that their adoption carries with
it protection for a proportionately larger section of the State popula­
tion than their numbers would indicate.
The value of the mandatory plan has been recognized in Colorado
and Wisconsin, the 1931 sessions of whose legislatures have amended
their laws, making them mandatory instead of optional. However,
the relative development of the old-age pension system in such “ man­
datory ” States as Wyoming on the one hand and California and
New x ork on the other seems to indicate that, regardless of whether
the law is or is not mandatory, funds must be forthcoming before
pensions can be paid, and that State aid imparts a great impetus
toward the adoption and spread of the system.
The cost of the pensipn varies widely from State to State and
county to county. Absolute figures, however, mean little in this con­
nection. A better criterion is the annual per capita cost of pensions.
Here again a wide variation is shown, tne per capita cost ranging,
by States, from 4 cents to $1.35 per inhabitant. In three States the
cost was around 25 cents, while in the oldest pension State of all the
per capita cost was 37 cents.
That the amount of pension granted does not tend to approach the
maximum allowable is shown by the fact that in 1928 the average
pension was $17.37, while in 1930 it was $14.32. In the six States for
which data for both years are available the average pension fell from
$17.37 to $13.57.
7 This has been remedied in Wyoming by an amendment authorizing a tax on real
estate, and in Minnesota by an amendment authorizing the transfer of money from other
funds.

26

P U B LIC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

Summary data for 1980 are shown in Table 2; the 1931 experience
of those other States for which information is available is also
given.
T a b le 2 .—Summary o f operation o f State old-age pension laws
Counties in
State

Year and State

1930
California-.........................................
Colorado....... .....................................
Kentucky...........................................
Maryland...........................................
Montana............................................
Nevada...............................................
Utah........................ .........................
Wisconsin...........................................
Wyoming...........................................

Counties having pension system
Year
of pas­
sage of Total Num­
Number Average Amount
law
num­ ber re­ Num­ of pen­ pension
paid in
per
ber ported ber
sioners month i pensions
for

1929
1927
1926
1927
1923
1925
1929
1925
1929

1931
Delaware___________________-____
Massachusetts___________________
Minnesota___________________ ___
New York..........................................

1931
1930
1929
1930

58
57
67
10
55
13
25
71
21

58
1
2
2
44
2
13
<8
7

7,205
(*)
18
12
889
5
1,107
989
82

a$15.63
(8
)
5.39
12.00
14.09
25.00
7.37
13.19
13.21

$1,296,455
<)
3
1,164
1,800
149,100
900
95,780
156,510
12,679

461

Total.........................................

58
63
120
24
56
17
29
71
*23

377

137

10,307

14.32

1,714,388

87
62

87
62

5
62

26.65

»5,138,582

*1,000
®2,000
42,021

» Computed on basis of number of pensioners and amount spent in pensions.
•Average for 41 counties for which bureau has data as to number of pensioners and amount spent in

pensions; State office gives $22.56 as average pension for entire State.

8No pensions paid.
4A ninth county has adopted the system since the beginning of 1931.
•Not including Yellowstone Park.
•Approximate.
tExpended from April to August, inclusive.

Extent of Adoption of Pension System
The pension systems have met with varying degrees of success in
their acceptance by the people of the State. Table 3 divides the
States according to whether the law is voluntary or mandatory in
form, and shows for each State the proportion 01 the population in
those counties which had adopted the old-age pension system at the
end of 1930.
That it is mainly the larger counties which are voluntarily adopting
the system is shown in the three States of Maryland, Minnesota,
and Wisconsin. In Maryland, though only 2 of the 24 counties had at
the end of 1930 voted to accept the system, these contain slightly
more than half of the entire population of the State. The 5 adopt­
ing counties (of a total of 87) in Minnesota have more than twofifths of the population, and the 9 adopting counties (out of 71) in
Wisconsin have 37.3 per cent of that State’s population. In Mon­
tana (whose law has been on the statute books longer than that of
any other State) 44 of the 56 counties had adopted the old-age pen­
sion system at the end of 1930 and more than three-fourths of the
population of the State is under the coverage of the law. In Utah

27

OPERATION OP STATE L A W S

only 13 of the 29 counties had put the system into operation at the
close of 1930, but these contain nearly three-fourths of the whole
population of the State. Almost negligible progress has been made
in Colorado, Kentucky, and Nevada, although their laws have been
in effect since 1927,1926, and 1925, respectively. Some of the reports
from Colorado expressed the hope that more progress will be made
now that the law of that State has been made mandatory upon
the counties.
As would be expected, a much wider operation of the old-age pen­
sion system is found in the “ mandatory ” States. Nevertheless,
even among these the case of Wyoming shows that even though a
law may be said to be compulsory upon the counties, if the State
contributes nothing and the counties have no funds for the purpose,
the law remains inoperative. In Wyoming? however, an amend­
ment to the law has been passed which requires a specific levy for
pension purposes and this, it is expected, will , assist the spread of
the system there. General acceptance of the system is found in Dela­
ware, California, Massachusetts, and New York; in the last three
of these States part of the cost is borne by the State, while in Dela­
ware the State pays the whole amount.
T a b le 3 . —E xtent and coverage o f pension system in specified States at end o f

1930, iy type o f law

State and type of law

Counties having pension
system1
Num­
Population ber of
coun­
of State.
Per
1930
ties in Num­
cent of
Population State
State
ber
popu­
lation

Voluntary

Colorado__ _____ ___________
Kentucky...................................
Maryland...................................
Minnesota...................................
Montana........ ............................
Nevada.......................................
Utah...........................................
Wisconsin..................................

1,035,791
2,614,589
1,631,526
2,563,953
537,606
91,058
507,847
2,939,006

Mandatory
California..................................
New York...................................
Wyoming..................................

5,677,251
12,588,066
225,565

120
24
87
56
17
29
71

1
2
2
5
44
2
13
9

36,008
26,246
823,457
1,067,702
411,602
4,656
373,551
1,097,277

3.5
1.0
50.5
41.6
76.6
5.1
73.6
37.3

58
62
7

5,677,251
12,588,066
78,868

100.0
100.0
35.0

i Includes also those which, although they have adopted the system, have not yet put it into effect.

Average Amount of Pension Paid
In all States but New York and Massachusetts a maximum amount
of pension is set which may in no case be exceeded. Subject to this
limitation, the pension authorities fix the allowance on the basis
of other income and of the pensioner’s need.
The data collected show wide variation in the amounts actually
wanted. The most liberal State, from the point of view of the in­
dividual pension, appears to be New York, with Nevada coming
88360*— 32------ 3

28

P U B L IC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

second. California comes third. In Wisconsin and Wyoming the
amounts granted are almost identical, while Kentucky and Utah are
far behind.
Within the States, also, as Table 4 shows, there is a wide range
of amounts. The second half of the table shows the distribution of
the reporting counties in each State according to the size of the
average pension.
T a b le 4 .—Average and range o f monthly pensions, and distribution o f counties
by size o f pension paid, 19SO
Number of counties in which average
monthly pension paid was—

State

Average
pension
paid i

Range of
pensions
paid

California___ _______________ »$15.63 $5.00-$27.76
Kentucky____ _________________
5.39 5.00- 12.00
Maryland_____________________
12.00
12.00
Montana_____________________
14.09 8.72- 25.00
Nevada_______________________
25.00
25.00
New York5___ ________________
27.48 13.75- 33.91
Utah..............................................
7.37 4.00- 15.00
Wisconsin_____________________
13.19 9.78- 18.90
Wyoming_____________________
12.10 13.50- 16.66
Total__________ _________
Per cent______________________

$10 $15 $20 $25
Un­ and and and and $30
der under under under under or Total
$10 $15 $20 $25 $30 over
2
1
1
7
1

2
1
1
14

12

3
5
5
2

14

12

18

4

35
1
2
4

29

6
1
10

47
72
12
33
29
6.2 16.9 36.9 24.1 14.9

2

842
2
41
<43
31
79
13
8
6

2
195
1.0 100.0

t Computed on basis of number of pensioners and amount paid in pensions.
* Average for counties reporting; State office gives $22.56 as average pension for entire State.
» Not including 2 which paid no pensions.
* Not including 1 which paid no pensions.
* Data as of end of March, 1931.

Cost of Pensions
The details of number of pensioners and cost are shown, by county,
in Table 5. A wide range is shown both in average pension and in
per capita cost.
It is seen that in most cases the pensioners form a very small part
of the population of the county, usually less than one-half of 1 per
cent. In individual counties, however, the proportion runs up above
the general level, California even having two counties and Montana
having one county in which the pensioners form over 1 per cent of
the county population.
As regards per capital cost, the lowest State average is found in
Kentucky where, in 1930, old-age pensions (in the two counties which
had the system in operation) cost only 4 cents per inhabitant. At
the other end of the scale is Nevada (one county only) where the
cost was $1.35 per inhabitant. The cost in the three States of Cali­
fornia, Utah, and Wyoming was about 25 cents per capita, while in
Montana, where the system has been in operation long enough for
it to have become fairly stable, the per capita cost in 1930 was 37
cents. Certain counties show pensioners and costs out of all pro­
portion to the general picture, but these were undoubtedly caused
by special local conditions.

29

OPERATION OP STATE L A W S

T able 5 . —Number o f pensioners and cost o f pensions, 1980, by State and county
Pensioners
State and county

California

Contra Costa__ __ __________ __ _____ __

Mendocino____ ________________________

Nevada.____ _. . . . ________ -___________
Orange________________________________
Placer -_______ — __________________
Plumas__ _______ _____________________
Riverside_____-___________ . ___________
Sacramento__—. __________________ _____
San Benito______ ______________________
San Diego________ -___________________ Son T rftncisfiO _ _ _ _
T
_ ____
San Luis Obispo.
San Mateo_____
Santa Barbara—
Santa Clara
Shasta_______ — --__ - —— -____
Sierra.——. ——_____ -__________ -______
Siskiyou ___________________________
Solano________________________________
Bonorrta..
T T
r
________ .
Stanislaus___ __________________________
Tehama...—— — _-_________________
Tulare. ———————________________
Tuolum ne......—. . . . . . . ________________
VAntnra
______ ___ _
Total (44)
Colorado

Animas___

474,883
241
8,494
34,093
6,008
10,258
78,608
8,325
10,935
60,903
6,555
7,166
12,589
2,208,492
17,164
41,648
23,505
36,748
8,038
1,360
22,897
10,596
118,674
24,468
7,913
81,024
141,999
11,311
209,659
634,394
29,613
77,405
65,167
145,118
13,927
2,422
25,480
40,834
62,222
56,641
13,866
77,442
9,271
54,976

946
0
61
282
38
60
94
155
44
9
21
21
40
1,681
47
52
92
20
12
3
0)
68
115
110
19
68
450
12
350
861
80
80
82
307
250
11
70
66
136
94
59
113
60
66

0.20 $25.00
0
."72_ 15.00
.83 15.00
.63 20.00
.58 17.45
.12 23.00
1.86 20.00
.40 * 17.27
.01 25.00
.32 27.76
.29 20.00
.32 22.00
.08 25.36
.27 15.00
.12 21.00
.39 15.00
.05 18.00
.15 25.00
.22 26.00
0)
.64 •22.06
.10 20.00
.45 12.00
.24 18.00
.08 •24.26
.32 25.00
.11 23.80
.17 25.00
.14 •27.30
.27 25.00
.10 •5.00
.13 25.00
.21 22.50
1.79 20.00
.45 •9.90
.28 15.00
.16 21.30
.22 •17.32
.17 19.00
.43 10.00
.15 22.75
.65 15.00
.12 25.00

7,205

®15 * 15.63
.

Kentucky

Annijftl
cost per
capita
of pop­
ulation

$260,000.00
(0
4,050.16
28.725.00
2,178.00
5,825.66
20,622.60
27.460.00
7,599.19
1.590.00
3.912.00
5.293.00
4,084.92
*416,913.36
6,373.78
12,697.00
9,486. d0
1,022.35
300.00
650.00
(0
<12,000.00
18,398.64
« 24,511.00
4.100.00
10,000.00
44,433.00
3.426.00
•30,075.00
116.409.00
122.384.00
4,000.00
3,275.50
26,212.02
60,000.00
1.305.00
(8
)
10,478.21
•10,326.00
13,404.00
5,507.00
27,000.00
900.00
29,527.96
1,296,455.35

36,008

(“ )
01
)

$0.55
.48
.84
.36
.57
.26
3.30
.70
.03
.60
.74
.32
.10
.39
.37
.40
.03
.04
.48
1.70
.16
1.00
.52
.12
.31
.30
.29
.18
.64
.05
.05
.18
4.31
.54
.26
.33
.24
.40
.35
.10
.54
10.27

(“ >

36,008

Total (1)
_
_

Amount

4,993,332

Amador__. . . . . . . . ________ T ____ ___
Butte_______ -__________ -_____________
Calaveras..............r_________ ______

Callnwav
■M
artin

Pensions paid, 1930

Aver­
age
Popula­
Per
pen­
tion, 1930 Num­ cent of sion per
popu­ month
ber
lation

<)
“

_

Total (2)
Maryland

17,662
8,584

17
1

.10
.01

5.00
12.00

1,020.00
144.00

.06
.02

26,246

_

18

•.07

•5.39

1,164.00

10.04

.06

12.00

0)
1,800.00

.10

•.06 •12.00

1,800.00

10.10
X :-•
i !!*

Baltimore (citvY
Talhnt
_____

804,874
18,583

Total (2)

823,457

12

1

*No pensions paid in 1930.
* Computed on basis of number of pensioners and amount paid in pensions.
* Year ending in February, 1931.
« 8 months.
* Year ending Apr. 1,1931.
* 6 months.
? 15 months ending Mar. 1,1931.
1Not reported.
* Based upon counties reporting number of pensioners.
MBased upon counties reporting amount spent in pensions,
u System does not go into effect until Jan. 1,1932.

30

P U B LIC OLD-AGE PE N SIO N S IN T H E U N IT E D STATES

T a b le 5 . — Number o f pensioners <md cost o f pensions, 1930, by S tate and
county— Continued
Pensioners
State and county

Minnesota
_____
Blue Earth.. ....................... . . . . . .
TTftnnftpin__________________ _
- _____
Ramsay .............. ........... ......
_____
St, LOU ■
lS _______ '___.......... -r ______
Wflfthfpgton. 1 „Tr-,n , T -r - _________

Pensions paid, 1930

Aver­
age
Popula­
Per
pen­
tion, 1930 Num­ cent of sion per
ber
popu­ month
lation

33,847
517,785
286,721
204,596
24,753

Total (5)............................................... 1,067,702

0)
(i)
(l)

®u
C)
1
(i)
0)
11

Montana
Beaverhead..... -_________________ — ___
Big H o r n ........_______________________
TtJaino__. _________
C a rb o n ........__________ -_____________
C a rte r........._________________________
Cascade.... — . . . __- ____________________
Danins.,........... ......... ....
r
,
Dawson__. . . __________________________
D<y*rln<ige
___ T ___ _
._
Fallon___________ _________ __________
Flathead.__ —__________________________
G allatin.........________________________
Garfield_______________________________
Glacier________________________________
Golden Valley__________________________
Granite.......... .......... ................................ .
Hill.................................................................
Jefferson
^
--- - -____
Judith Biurfn. _ T .................. _ _ _ _ _ _ _
r
Lake..............................................................
Lewis and Clark________________________
Liberty________________________________
Lincoln________________________________
McCone._____________ . . . . _____________
Meagher_______________________________
Mineral________________________________
Musselshell____________________________
Park_____ _____ ___________ ____
Petroleum_____________________________
Powell_______________ ______ __________
Prairie________________________________
Ravalli...........................................................
Richland..... ...................................................
Roosevelt.. . . . ____________ _____________
Rosebud_______________________________
Sanders________________________________
Sheridan_______________________________
Silver Bow_____________________________
Stillwater.......................................................
Sweet Grass_______ ____________________
Toole___________ ______________ _____
Treasure____ __________________________
Valley.............................................................
Wheatland_____________________________

6,654
8,543
9,006
12,571
4,136
41,146
5,553
9,881
16,293
4,568
19,200
16,124
4,252
5,297
2,126
3,013
13,775
4,133
5,238
9,541
18,224
2,198
7,089
4,790
2,272
1,626
7,242
10,922
2,045
6,202
3,941
10,315
9,633
10,672
7,347
5,692
9,869
56,969
6,253
3,944
6,714
1,661
11,181
3.751

16
3
9
21
4
67
7
17
33
3
63
24
6
9
8
18
24
50
1
8
96
7
22
0)
10
15
19
12
7
24
6
55
3
3
12
24
16
107
10
5
15

Total (44)..............................................

411,602

889

Nevada
Nye.__________________________________
Storey_________ _______________________

3,989
667

Total (2)__________________________

4,656

1

1*18
11

)5

0

5

(*)
J )
0.24
.04
.10
.17
.10
.16
.13
.17
.20
.07
.33
.15
.14
.17
.38
.60
.17
1.21
.02
.08
.53
.32
.31

Amount

Annual
cost per
capita
of pop­
ulation

m
(i)
m
0)
0)
0)

______

$5,600.00
225.00
1,800.00
3,322.50
205.00
12,000.00
1,800.00
2.545.00
5.685.00
550.00
8.407.00
3,698.27
1.062.50
1.405.00
1.100.00
M2,855.00
3,510.00
6.957.50
300.00
1.350.00
16,056.00
2,000.00
4.327.00
(l)
.44 •18.54
2.225.00
.92 •8.72
1.569.00
2.600.00
.26 15.65
2,000.00
.11 15.00
/ 15.00
.34 \ 20.00 }
«
3.495.00
.39 15.00
.15 •14.25
1.025.00
.53 •11.182
7.036.00
272.00
.03 14.00
.03 25.00
900.00
3.240.00
.16 21.25
.42 15.00
4.252.00
2.500.00
.16 15.00
19,100.25
.19 15.00
.16 25.00
1.620.00
.13 15.00
845.00
3,275.00
.22 25.00
180.00
.06 15.00
»•4,690.00
».16 i» 21.70
.29 15.00
1,515.00

$0.84
.03
.20
.26
.05
.29
.32
.26
.35
.12
.44
.23
.25
.27
.52
.95
.25
1.68
.06
.14
.88
.91
.61

•.22 •14.09

149,100.02

1 ,37
0

<0

.75

(0
25.00

(*)
900.00

1.35

•.75

25.00

900.00

i«1.35

$25.00
15.00
15.00
15.00
10.00
20.00
14.00
•12.48
15.00
15.83
11.11
12.50
•16.00
20.00
3 11.46
•14.00
•12.19
12.50
25.00
14.52
13.94
25.00
18.00

*No pensions paid in 1930.
1 Computed on basis of number of pensioners and amount paid in pensions.
•Not reported.
•Based upon counties reporting number of pensioners.
1 Based upon counties reporting amount spent in pensions.
9
1 Year ending Jan. 31,1931.
8
* Year ending July, 1930.
•

.98
.96
.36
.18
.56
.26
.68
.03
.08
.44
.75
.25
.34
.26
.21
.49
.11
M
.42
.40

31

OPERATION OF STATE L A W S

T able 5 . -Num ber o f pensioners and cost o f pensions, 1980, by State and
county— Continued
Pensioners
State and county

New York
Albany.._______
Allegany________
Broome_________
Union_______
Cattaraugus_____
Cayuga................
Chautauqua.........
Dunkirk____
Jamestown___
Chemung_______
Elmira______
Chenango_______
Norwich_____
Clinton................
Plattsburg___
Columbia_______
Cortland________
Cortland_____
Delaware________
Dutchess________
Beacon______
Poughkeepsie.,
Erie____________
Franklin....... ............................
Fulton................................. .
Genesee........... ........................
Batavia..............................
Greene........... ..........................
Hamilton..................................
Herkimer.................................
Jefferson__________ ________
Lewis.......................................
Livingston...............................
Madison............. .....................
Monroe__. . . . . . . . . . . . . . . . . . . . . .
Montgomery________________
Nassau______ ______ _______
New York (greater New York).
Niagara......................... ..........
Lockport__________ ______
Oneida__________ __________
Sherrill............................... .
Onondaga__________________
Syracuse..............................
Ontario.................................... .
Ori
Orleans.,
Oswego.
Fulton—,
Oswego..
Otsego_____
Putnam..
Rockland.................. .
St. Lawrence_______
Saratoga.....................
Saratoga Springs..
Schenectady............. .
Schenectady....... .
Schoharie..________
Schuyler___________
Steuben...
Suffolk__
Sullivan...
Tioga___

Aver­
age
Popula­
Per
pen­
tion, 1930 Num­ cent of sion per
ber
popu­ month
lation

211,953
38,025
” 104,443
42,579
72,398
64,751
” 63,500
17,802
45,155
” 27,283
47,397
” 26,287
8,378
” 33,338
13,349
41,716
” 16,666
15,043
41,163
” 53,241

685
71
366
56
263
294
258
38
78
180
140
199
43
184
40
229
51
48
272
266
73
204
551
255
364
254
73
63
135

40,288
762,408
33.959
45,694
46.560
1 27,093
8
17,375
25,808
3,929
10
173
64,006
83,574
495
23,447
113
89
37.560
190
39,790
644
423,881
201
60,076
425
303,053
6,930,446 15,878
218
” 126,169
104
23,160
407
” 196,613
1
2,150
225
1*82,280
419
209,326
232
54,276
512
is 99,108
31,275
181
129
28,795
248
” 34,531
79
12,462
129
22,652
46,710
269
13.744
42
742
119,781
59,599
148
377
90.960
327
50,145
13.169
73
29,329
80
95,692
176
19,667
149
12,909
98
24,983
157
82,671
466
161,055
187
35,272
102
25,480
251

“ Population, exclusive of city or cities named.

0.32 $23.16
.19 17.61
.35 23.57
.13 20.89
.36 18.17
.45 14.94
.41 14.44
.2 22.18
1
.17 20.60
.66
19.45
.30 24.34
.76 15.46
.51 17.58
.55 15.31
.30 16.45
.55 23.03
.31 16.96
.32 21.44
.66
17.85
.50 18.85
.61 21.32
.51 25.77
.07 25.51
.75 18.18
.80 16.18
.55 18.48
.27 18.08
.36 18.94
.52 17.47
.25 27.00
.27 17.11
.59 16.48
.48 18.81
.23 16.96
.48 17.97
.15 28.25
.33 18.20
.14 26.36
.23 33.91
.17 20.09
.45 22.13
.2 21.83
1
.05 15.00
.27 21.18
24.37
.20
.43 15.06
.52 24.93
.58 19.92
.45 17.85
.72 17.21
.63 20.34
.57 23.64
.58 18.86
.31 30.14
.62 26.06
.25 25.17
.41 22.16
65 23.49
.55 18.00
.27 23.59
.18 27.36
.76 13.75
.76 21.51
.63 20.37
.56 15.58
.1 20.36
2
.29
.98 19.83

Pensions paid, 1930

Amount

Annual
costper
capita
of pop­
ulation

32

PU B LIC OLD-AGE PEN SION S AND IN SU RA N CE

T a b le 5 . —Number o f pensioners and cost o f pensions, 1930, by State and

county— Continued
Pensions paid, 1930

Pensioners
State and county

New Forft—Continued.
Tompkins......................................
Ithaca.......................................
Ulster.............................................
Kingston..................................
Warren...........................................
Gleas Falls...............................
Washington....................................
Wayne...........................................
Westchester______ _____ _______
Wyoming.......................................
Yates..............................................
Total (79 M
)........................ .

Aver­
age
Popula­
Per
pen­
tion, 1930 Num­ cent of sion per
ber
popu­ month
lation

20,782
20,708
52,067
28,088
15,643
18,531
46,482
49,995
520,947
28,764
16,848

116
357
127
100

55
244
277
348
109
127

0.47 $22.92
.56 27.13
.69 18.10
.45 24.34
.64 18.84
.30 22.96
.52 21.03
.55 19.06
.07 28.95
.38 15.28
.75 22.08
•.26

27.48

20
20

.39

11.50
15.00

$2,260.00
1.985.00

$0.44

*6.18
10.60
9.47
7.25

1.115.00
1.135.00
4,051.50

.24
.63
.47

.34
.25

7.50
4.00
9.51
9.00

1 54,282.13
7
270.00
w625.50
15,610.00
13,125.50

.05
.28
.08
.09
.32
.25

•.30

37.37

95,779.63

w.26

.09 2 14.14
.35 214.26
.18 214.15
.05 211.79
.2 2 14.34
2
.26 •18.90
.13 2 9.78
.16 2 16.94

9.995.00
32,517.36
6.454.00
» 54,772.86
23,931.50
5.217.00

.16
.60

11 222.00

.08
.38
.59
.15

13.19

156,509.72

10.15

.03
.25

16.66
13.50
15.00

460.00
9,012.55
1.780.00

.04
.08
.17

.04

"IB.Bo

.30

12.10

1.054.00

0).16

•.16 * 13.21

12,678.55

w.25

5,136
17,798
8,263
4,642
1,813
8,605
9,945
2,536
194,102
3,496
16,022
49,021
52,172

42
15
5
642
3
34
168
129

Total (13)..............................

373,551

1,107

Wisconsin
Douglas..........................................
Kenosha........................................ .
La Crosse.......................................
Langlade........... .............................
Milwaukee.....................................
Outagamie......................................
Sawyer...........................................
Winnebago......................... ...........
Wood.............................................

46,583
63,277
54,455
21,544
725,263
62,790
8,878
76,622
37,865

(,)85

Total (9)...............................

1,097,277

Total (7)...............................

Annual
cost per
capita
of pop­
ulation

12,588,165 32,437

Utah
Beaver............................................
Carbon. .........................................
Duchesne............. ..........................
Garfield......................................... .
Grand......... ...................................
Juab.............................................. .
Millard...........................................
Morgan..........................................
Salt Lake.......................................
San Juan....................................... .
Sanpete......................................... .
Utah...............................................
Weber............................................

Wyoming
Albany........................................ .
Big H orn.................................... .
Fremont.........................................
Laramie...... ................................. .
Platte.............................................
Teton.............................................
Uinta..............................................

Amount

4
15

10

190
38
* 387
•
139
23
96
61

10.00

.2
0

10.00
10.00

.33
.09

.2
1

2

12,041

11,222

10,490
26,845
9,695
2,003
6,572

.1
1

.05
.32
.55
.49
.15

(\

2

20

.1
0

15.00

0)

.

1 200.00
120.00

,

12,400.00

0)
372.00
P
)

.1
1
.12

~ 04
.‘

1 No

pensions paid in 1930.
1 Computed on basis of number of pensioners and amount paid in pensions.
•Based upon counties reporting number of pensioners.
10 Based upon counties reporting amount spent in pensions.
10 Number of county and city welfare districts.
17 Year ending November, 1930.
m5 months.
m Preliminary figures, subject to slight revision.

Table 6 shows for counties for which the bureau has comparable
data, the proportion of pensioners and the per capita cost in 1930
and in 1928 when the bureau’s previous survey was made.
Of the 45 counties covered by the table, in 33 the proportion of pen­
sioners had increased in 1930 as compared with 1928, in 8 it had

33

OPERATION OF STATE LAW S

decreased, in 2 there was no change, while in 2 counties no persons
were aided in 1930.
Per capita costs rose in 29 counties, declined in 11 counties, and
showed no change in 2 counties. In most cases the increase in costs
was very slight, but in 9 counties the cost more than doubled.
T a b le 6 . — Per cent o f pensioners and per capita cost of pensions, 1928 and 1980

State and county

Per cent
pensioners
formed of
population

Per capita
cost
State and county

1928 1930 1928
Kentucky: Calloway.
Montana:
Beaverhead........
Blaine.................
Carbon......... ......
Cascade________
Custer................
Daniels...............
Dawson..............
Fallon.................
Flathead.............
Gallatin..............
Glacier................
Golden Valley__
Granite...............
Hill.....................
Jefferson.............
Judith Basin.......
Lake...................
Lewis and Clark.
Liberty...............
Lincoln...............
Meagher.............
Mineral..............

1930

0.17 0.10 $0.41 $0.06
.21 .24
.04 .10
.21 .17
.12 .16
.31 0)
.07 .13
.13 .17
.04 .07
.15 .33
.14 .15
.06 .17
.47 .38
.63 .60
.05 .17
.82 1.21
.02 .02
.07 .08
.48 .53
.14 .32
.25 .31
.31 .44
.43 .92

.63
.08
.34
.27
.56
.16
.29
.10
.29
.24
.17
.51
.93
.10
1.23
.06
.12
.86
.41
.68
.92
.77

.84
.20
.26
.29
0)
.32
.26
.12
.44
.23
.27
.52
.95
.25
1.68
.06
.14
.88
.91
.61
.98
.96

Per cent
pensioners
formed of
population

Per capita
cost

1928 1930 1928 1930
Montanar—
Continued.
Musselshell............. 0.14
Park........................ .15
Petroleum________ .15
Powell______ _____ .21
Prairie_______ ____ .08
Ravalli___________ .30
Richland_______ -- .02
Roosevelt_________ .01
Rosebud__-______ .23
Sanders__________ .35
Silver Bow________ .18
Stillwater................ .03
Sweet Grass_______ .15
Toole............. ......... .09
Treasure— ............. .06
Valley..................... .18
Wheatland________ .19
Nevada: Nye_________ .28
Wisconsin:
La Crosse_________ .25
Outagamie..______ .15
Sawyer___________ .24
Wood____________ .10

0.26 $0.24 $0.36
.11 .31
.18
.34 .32
.39 .38
.56
.15 .17
.26
.53 .60
.68
.03 .05
.03
.03 .03
.08
.16 .59
.44
.42 .73
.75
.19 .35
.34
.16 .10
.26
.13 .27
.21
.22 .21
.49
.06 .11
.11
.16 .54
.42
.29 .34
.40
.42
.35
.22
.26
.16

.29
.18
.38
.11

>.60
>.38
>.59
>.33

i System discontinued.
* One-third paid by State.

Table 7 shows aggregate figures for those States whose pension
laws were in operation as early as 1928. It shows that the number
of adopting counties increased by about one-ninth in the 2-year
interval, the number of pensioners nearly doubled, and the amount
spent in pensions rose about 50 per cent.
T a b le 7 . — Comparative development o f old-age pension system s, 1928 and 1930,

by States
Number of
counties
with pen­
sion system

Number of
pensioners

1928 1930

State

1928

1930

1930

42
2
5

1
2
2
44
2
8

Total........................................

53

59 *1,003 •1,913 7208,624 *309,474

143 counties.
442 counties.

1
130

1928

Colorado________________________
Kentucky______________________ Maryland_ ______________ ____
_
Montana_______________________
Nevada________________ ________
Wisconsin ..... ^

11 county.
* 2 counties.

1
3

Amount spent in
pensions

666
111
295

Average month­
ly pension

1928

$120
$10.00
18
$1,164 20.00
>8,064
112
1 1,800
*889 ”132,575” <149,100 ””16.59*
i5
1 900
11,680
15.00
989
66,185 156,510 19.20

*50 counties.
•55 counties,

17.37

761 counties.
*54 counties.

1930

$5.39
12.00
14.09
25.00
13.19
13.57

34

PU B LIC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

Text o f Laws as o f December 31,1931
Alaska
ACTS OF 1929
C hapter 65
ARTICLE I
S ection 1. Creation of home.—The Territory shall maintain an institution
for the care of such needy persons as shall be entitled to the benefits thereof
under the provisions of this act, which institution shall be known as the
“ Alaska Pioneers* Home.” The institution (now situated at Sitka, Alaska,
and any other that may be established) shall be under the care, control, and
management of a board of three members to be known as the “ Board o f
Trustees of Alaska Pioneers* Home.** The governor shall be chairman and
member of said board and the other two members shall be appointed by the
governor, one of whom shall be appointed secretary of the board and receive a
salary of $75 per month, and the other member appointed by the governor
shall be treasurer and shall receive a salary of $50 per month, which salaries
shall be paid out of the biennial appropriation for the maintenance of the
said home.
Sec. 2. Powers of trustees.—The board of trustees shall have possession
of all property belonging to and constituting such home and keep it in readiness
for occupation, and shall have control of any funds appropriated therefor or
which may come into its hands for such purpose. The board may make con­
tracts in its name for the furnishing of the buildings and for the supplies
designed for use or consumption therein, but shall spend no money and incur
no indebtedness for such purposes beyond the appropriation previously made
therefor by the legislature, excepting in so far as it may have additional funds
derived from donations or from allotments made from that portion of the Alaska
fund which has been set aside by Congress for the relief of indigents in the
Territory of Alaska under the control o f the district judges. The board shall
appoint a superintendent o f the home, and such other officers as may be nec­
essary for the proper conduct of the institution, who shall serve during the
pleasure of the board. It shall adopt rules and regulations defining the duties
of the officers of the home, providing for the government of its inmates, and
fixing the terms and conditions of admission thereto, and the cause and manner
of expulsion therefrom. The board may require and take in its name and
security by way o f bond or otherwise from any person appointed or elected
by it, for the faithful performance of his duties, and have full accounting
for all moneys or property received by him for or on account of the board
of trustees or in the performance of such duties.
Sec. 3. Requirements for admission.—Every worthy person residing in Alaska,
and who shall have been a resident of the Territory continuously for more than
five years immediately preceding his application for admission, and who shall
be destitute and in need of the aid or benefit of said home in consequence of
physical disability or other cause, shall be entitled to admission thereto subject
to the conditions, limitations, and penalties prescribed by the rules and regula­
tions of the board. But no person shall be admitted as an inmate to the
Alaska Pioneers’ Home under the provisions o f this act, where the support and
maintenance of such person is imposed by law upon any relative or member of
the family of such person.
Sec. 4. Transfer of inmates.—Any person regularly admitted into the home
who is found to be insane may be transferred to the asylum or sanitarium pro­
vided for the care and custody o f insane persons fo'r the Territory o f Alaska and

TE X T OS' L A W S

35

In the same manner as provided by law for the admission o f other persons to
such asylum or sanitarium.
Seo. 5. Admission on payment.—Any citizen of the United States over 65
years of age who shall be a resident of the Territory and shall have been such
resident for not less than 10 years continuously immediately preceding his
application, but who may not be destitute, may on application be admitted to
the home upon his agreement to pay to the Territory such sum per day as the
board may deem sufficient to compensate the Territory for the cost o f care and
support o f such person at the home. When such agreement is entered into, the
board shall have authority to receive such security for the payments as the
board shall deem expedient.
Sica 6. Maintenance funds.—The legislature shall each session appropriate
the necessary funds for the maintenance o f the home to be expended by the
board of trustees, and said board is authorized and empowered to receive funds,
donations, and bequests from private individuals, societies, or organizations,
and funds derived by the Government of the United States from taxes on busi­
ness and trade or otherwise and apportioned or allotted to the said home for
the support and maintenance of said home or its inmates.
Seo. 7. Special funds.—Whenever a bequest or a donation shall be received
by the home the same may by the board be set aside as a permanent special
fund to be expended or used in the manner expressly indicated or probably
desired by testator or donor.
Seo. 8. Trustees' reports.— Such board shall on or before March 1 in years in
which the legislature meets, make to the legislature a detailed report o f all its
receipts and expenditures and of all its proceedings for the previous two
calendar years, with full estimates for the coming two years, verified by each o f
the members of such board.
ak ttcle

n

Seo. 9. Requirements for pension.—Any resident o f Alaska who is a citizen of
the United States and who has attained the age of 65 years or, if a woman, the
age of 60 years, and who shall have resided in Alaska continuously since
January 1, 1906, and is entitled to the free benefits of the Alaska Pioneers’
Home, may, in lieu o f an application to be received and cared for at such home,
make an application to the board of trustees o f said Alaska Pioneers* Home in
the manner prescribed in this* act for an allowance to be paid out of money
appropriated by the Territorial legislature for this purpose and thereupon said
board shall investigate the case of such applicant, and if it finds that his or her
case is worthy and that he or she is in actual need of such allowance, the said
board shall enroll him or her as a beneficiary under this act and issue a certifi­
cate accordingly, which shall not be transferable or descendible, and in con­
formity therewith an allowance shall be paid for his or her use, as provided to
sections 11 and 12 of this act, out of the appropriation for allowances to aged
pioneers: Provided, That if any person given an allowance under the provisions
o f this act shall be admitted to the Alaska Pioneers’ Home, any allowance
granted hereunder shall be suspended during the time such person shall be an
inmate of the home, and any inmate o f the home, who is eligible to receive an
allowance under the provisions of this act, may at any time make application
for such allowance in lieu of the support and maintenance provided for him In
such home.
Sec. 10. Applimtion form.— Said board of trustees shall cause blank forms
o f applications for such allowance to be prepared and printed and shall dis­
tribute them in sufficient quantities to the various commissioners for the several
precincts of Alaska. The application shall set forth the facts requisite to bring
the applicant within the provisions of this act, and shall state in detail the
periods and causes o f his or her disability for gaining his or her subsistence,
and his or her resources and circumstances and those o f his or her relatives
(if any) living in Alaska or elsewhere, and that applicant is dependent in part
upon an allowance from the Territory for a living and has no other sufficient
means of support Said application shall be signed by the applicant, and
witnesses, acknowledged and verified by his or her affidavit to the effect that the
statements contained therein are true. Said affidavit shall be sworn to before
any notary or other person authorized to administer an oath, and there shall
be appended to the application a certificate by such authorized person, and
supported by affidavits by two reputable persons resident within such precinct,
to tiie effect that he or they are personally acquainted with the applicant and
believe all the statements set forth in such application to be true. Any one

36

PU B LIC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

who, in any such affidavit knowingly makes a false statement shall be guilty
of perjury and shall be prosecuted and punished accordingly.
Sex?. 11. Amount of pension.— Each allowance granted shall be of such
amount, not exceeding $35 per month for men and $45 per month for women,
as said trustees in their discretion shall allow and specify in the certificate:
Provided, That nothing in this act shall affect the allowance of any person now
receiving any benefit or allowance from the Territory. The board of trustees
may at any time after an allowance has been granted demand of the bene­
ficiary a restatement of his or her disability for gaining subsistence, and his
or her resources and circumstances and the resources and circumstances o f
his or her living relatives. Such statement shall be signed and sworn to by
the beneficiary and be in such form as the board may prescribe.
Said trustees shall not establish any uniform allowance, but shall take into
consideration the necessities of each individual applicant and the cost of living
in the place where he or she resides, and after being granted, the allowance
may be discontinued or the amount may be diminished or increased by said
board. Each allowance shall be paid quarter yearly, and a warrant of said
trustees on the Territorial treasurer for the amount of the quarter payment,
payable to the beneficiary or order, shall be forwarded by said board to the
commissioner within whose precinct the beneficiary resides, in time to reach
such commissioner on or before the beginning of the quarter year for which
the same is payable, and shall be by the commissioner delivered on or after
the beginning of such quarter year, to the beneficiary upon his or her appearing
in person before the commissioner and exhibiting his or her certificate, and
such warrant or draft shall be paid in due course by the Territorial treasurer:
Provided, That in cases where it shall be impracticable by reason of slow or
interrupted means of communication or travel, for the quarterly payments to
reach the commissioner, or for the beneficiary to appear at the commissioner’s
office to receive such payment during a period of more than one quarter year,
said trustees may in their discretion transmit, with a quarterly payment,
another payment for the next following quarter, and said commissioner, if so
directed by said trustees, may deliver both payments at the same time: And
further provided, That in case the beneficiary is not able and can not appear
before the commissioner in person, within a reasonable time to receive such
allowance, the commissioner may forward the same to such beneficiary. I f the
funds provided by the legislature shall be exhausted, the Territorial treasurer
shall issue warrants to the beneficiary which warrants shall be an obligation
of the Territory of Alaska, payable out of the funds of the Territory as soon
as made available by an act of the legislature.
Sec. 12. Payment outside of Territory.—I f any such person, having been
granted an allowance, desires to take up his residence temporarily or perman­
ently elsewhere than in the Territory with the permission o f the trustees, such
allowance shall not cease, but the board of trustees shall prepare such addi­
tional regulations as may be necessary to carry out this provision so as to
properly safeguard the interest of the Territory.
Sec. 13. Payment in irresponsible cases.— Notwithstanding anything con­
tained in section 11 of this act, said trustees, in any case in which, either at
or after the time o f granting an allowance they shall become satisfied that
payments to a beneficiary will be subject to wasteful use or the diversion
from his or her means of sustenance, they may cause the money to be paid
into the hands o f the commissioner for the precinct o f the beneficiary’s residence,
or into the hands of any suitable and trustworthy person, to be paid out for
the beneficiary’s sustenance and benefit; and such depositary shall account
quarterly to said trustees for all funds so intrusted to him, showing when, to
whom, for what, and in what sums the same were disbursed.
Sec. 14. Medical certificate.—Any inmate of the Pioneers’ Home eligible to
receive allowance who wishes to apply for benefits under this act shall submit
with his application for allowance a certificate from a practicing physician
who is not connected with said home setting forth the state o f health o f the
applicant.
ARTICLE HI

Sec. 15. Powers o f governor, advisory board.—The governor is vested with
entire and exclusive superintendence of the poor, with authority to appoint an
advisory board in each judicial division of the Territory, composed of such
individuals as he may designate, the duties of the members of such advisory

TEX T OF LA W S

37

board to be such as may be prescribed by the governor under regulations to
be promulgated by him under the authority hereof.
Sec. 16. Reimbursement by relatives.—Every person without means who is
unable to earn a livelihood in consequence of immaturity, sickness, or physical
infirmity, shall be an indigent within the meaning of this article, must be
supported while living and when he dies be given a decent burial, by the
father, mother, grandfather, grandmother, children, grandchildren, brothers, or
sisters of such indigent person, if they, or either of them be o f sufficient
ability in the order named; and every such person who fails to support such
indigent relative when directed by the governor or some member of the advisory
board to do so, or fails to give such indigent a decent burial when he dies,
must reimburse the Territory or any municipality thereof for any funds
expended by them or either of them for the relief or burial o f such indigent,
not, however, to exceed the rate of $30 per month for support and $100 for
burial, and such sums with interest and costs may be recovered by the Terri­
tory or any municipality thereof in civil action: Provided, however, That
when any person becomes indigent as the result of intemperance or other vice
no other relative except parents and children shall be under obligation to
support or bury him.
Sec. 17. Temporary relief.—Whenever any such indigent as is described in
section 16 of this act is not entitled to the benefits of the provisions o f Article
I or II of this act, and has no relatives in the Territory liable for his support
pursuant to section 16 of this act, such indigent may receive temporary relief
from the Territory in an amount not to exceed $30 during any calendar month,
exclusive o f cost of medical attendance in case of sickness.
Sec. 18. Reimbursement for medical services.— The governor shall have power
to reimburse hospitals and physicians for expenses incurred and services
rendered for relief of indigents who have no relatives within the Territory
liable for his support. No charge for expense incurred under the provisions of
this section shall be in excess of the expenses actually and necessarily incurredv
and the following schedule of fees shall be the maximum paid by the Territory:
Medical attendance $1 per visit.
Minor operations $5.
Digital amputation $10.
Major operations $50.
Sec. 19. Proper burials.—The governor shall have authority to pfovide decent
burial for indigents who have no known relatives within the Territory liable
for such expense.
ARTICLE IV

Seo. 20. Appropriation expenditures.—The legislature may from time to
time appropriate money for the relief of the sick, unfortunate and needy in
the Territory o f Alaska to be expended under the direction o f the United
States district judges for the several divisions of the Territory. The money so
appropriated shall be expended for the aid and relief of the sick or unfortunate
in the Territory of Alaska who are in dire need o f assistance.
Seo. 21. Same, manner o f allocation.—The governor shall allot the money
appropriated under section 20 o f this act to the United States district judges
of the several divisions, according to their needs, but only one-half o f the
money appropriated shall be so allotted for each year o f the biennium. The
money so allotted shall be expended under the direction of said district judge
for the aid and relief o f persons in dire need in the Territory of Alaska, and
may be used for the purchase of food, clothing, or other necessary supplies, for
hospital services, medical attention, transportation, or in such other way as
the district judge may direct The money shall be expended upon vouchers,
signed by the person benefited and approved in writing by the district judge
under whose direction such expenditures are made, and paid by warrants
drawn on the treasurer. The form of the vouchers and manner o f payment
shall be prescribed by the governor and the treasurer o f the Territory.
a k t ic l e

v

Seo. 22 (as amended by Acts o f 1931, ch. 118). Rights against beneficiary.—
Any money paid to or any expense incurred for any person pursuant to the
provisions of Articles I, II, III, or IV of this act shall with Interest thereon

38

P U B LIC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

at rate o f 8 per cent per annum from date o f payment be an indebtedness owing
the Territory by the beneficiary and such indebtedness may be recovered dur­
ing the life of the beneficiary and shall be a first, prior and preferred claim
against the estate o f such beneficiary after his death, and after all just claims
for food, clothing, fuel, shelter, medical aid, or burial expenses have been paid.
That any moneys left in charge of the board of trustees by any deceased
inmate of the Pioneers’ Home may be used for the burial and funeral expenses
of such deceased inmate and for the improvement o f the burial plot o f the
Alaska Pioneers* Home.
Any clothing or any other personal effects left by any deceased inmate of the
home may be used by the board for the benefit o f other inmates, or may be
given to relatives or sold and the proceeds applied in the same manner as above
provided for moneys left.
Sec. 23. Claims against estate in Territory.—Whenever a beneficiary under
this act shall die leaving an estate in the Territory, the governor, or the board
o f trustees o f the Pioneers’ Home, shall file with the executor or administrator,
or with the probate court where such administration is had, the claim of the
Territory against such estate, and the attorney general shall take such steps
as may be necessary to enforce and collect the same. All moneys so collected
shall be paid into the treasury o f the Territory.
Sec. 24. Same, outside of Territory.—Whenever a beneficiary under the pro­
visions of this act shall die leaving property outside the Territory it shall be
the duty of the attorney general on direction of the governor or the board o f
trustees of the Pioneers’ Home to take such steps with respect to the same as
will protect and secure the rights of the Territory as a creditor.
Sec. 25. Certificate prima facie evidence.—A certificate by the governor to
the effect that a decedent was a beneficiary under this act and that by reason
o f that fact the Territory has a claim against his estate, shall be prima facie
evidence of such facts in any proceedings in the courts of the Territory.
ARTICLE VI

(Provides for mothers’ pensions.)
a r t ic l e

vn

Sec. 28. Act not applicable.—This act shall not inure to the benefit o f any

Indian or Eskimo resident of the Territory who is provided for by the Depart­
ment o f the Interior out of the funds of the Treasury of the United States or
to any ward of the Government of the United States.
Seo. 29. Definition of residence.—No one who has been absent from the
Territory 12 consecutive months or more shall be considered to have been a
resident of the Territory during such absence, and one who has left the Ter­
ritory without any definite intention of returning within a year shall be deemed
to have ceased to be a resident from the date of his departure.
(Approved and effective April 30,1929.)

California
ACTS OF 1929
C hapter 530
Section. 1. Persons entitled to add.— Subject to the provisions o f this act,
every person residing in the State of California, if in need, shall be entitled to
aid in old age from the State.
Sec. 2. Conditions.—Aid may be granted under this act to any person who—
(а ) Has attained the age of 70 years.
(б ) Has been a citizen of the United States for at least 15 years before
making application for aid.
(o) Resides in the State o f California and has so resided continuously for at
least 15 years immediately preceding the date of application, but continuous
residence in the State shall not be deemed to have been interrupted by period
of absence therefrom if the total of such periods does not exceed 3 years: or has
so resided 40 years at least 5 of which have immediately preceded this
application.

TE X T OF LA W S

39

(d) Resides in the county or city and county in which the application is
made and has so resided continuously for at least one year immediately
preceding the date o f application.
(e) Is not at the date o f making application for aid an inmate of any prison,
jail, infirmary, insane asylum or any reform or correctional institution.
{f ) I f married, has not during the 15 years preceding the date o f application
deserted the other spouse or without just cause failed to provide legal support
for such other spouse and the minor children, if any, o f such applicant.
(g) Has no children or other person able to support him and responsible
under the law of this State for his support.
Sec. 3. Amount.—The amount o f aid to which any such person shall be
entitled shall be fixed with due regard to the conditions existing in each case,
but in no case shall it be an amount which, when added to the income o f the
applicant from all other sources, including income from property as computed
under the terms of this act, shall exceed a total o f $1 per day.
Sec. 4. Persons not entitled to aid.—Aid under this act shall not be granted
or paid to any person the value of whose property, or, if married, the value of
the combined property of husband and wife, at the time of such application
exceeds $3,000.
Seo. 5. Other sources of income.—The income of the applicant at the time
of such application shall be computed on the basis o f an average income
during the 12 months next preceding the date o f such application; the annual
income of any property o f applicant which does not produce a reasonable income
shall be computed at 5 per cent o f the value of such property.
Seo. 6. Agency created.— (a ) There is hereby created in the State depart­
ment of social welfare a division to be known as the division o f State aid to
the aged. The duties of this division shall be to supervise and pass upon the
measures taken by county or city and county boards of supervisors for the
care of needy aged citizens, to the end that they may receive suitable care
in their old age and that there may be, throughout the State, a uniform
standard of record and method of treatment of aged persons based upon their
individual needs and circumstances.
The State department, through the division o f State aid to the aged, and the
board of supervisors of each and every county and city and county in the State
shall follow the policy of giving the aid provided for under this act to each and
every applicant in his own or in some other suitable home, in preference to
placing him in an institution.
(5)
The board o f supervisors o f each and every county and city and
county in the State, in addition to their other powers and duties in relation
to the care and support of the poor, as provided by law, are hereby authorized
and empowered, and it shall be their duty, to receive and act upon applica­
tions for aid under and in accordance with this act, and to provide funds in
their respective county or city and county treasury, and to do all other acts
and things necessary in connection with the same, for the purpose of carrying
out the provisions o f this act in so far as such provisions relate to such county
or city and county.
Sec. 7. Organization of same.—The division o f State aid to the needy aged
shall be administered by a chief. The director of social welfare, with the ap­
proval of the governor and the members of the social welfare board o f the
State department of social welfare, shall appoint and fix the compensation of
the chief of the division o f State aid to the aged, who shall be a person with
training and experience in relief work and familiar with the social and economic
conditions in California. The chief o f the division shall be responsible for the
investigation, determination, and supervision of State aid given under this
act and for the performance of such other duties as may be assigned to the
division by the director o f social welfare.
Sec. 8. Advisory boards.—The chief of the division, with the approval o f the
director of social welfare, may appoint in each county and city and county an
advisory board o f citizens whose duty it shall be to cooperate with the proper
State and county authorities in the investigation and supervision of aid given
to the aged under this act and to make report upon the same with recommenda­
tions to the board o f supervisors and to the department o f social welfare. In
counties or in any city and county where there is an existing county or city and
county department o f public welfare or board with similar functions in public
relief, this body shall be appointed as the advisory board.
Sec. 9. Property transfer.—I f the board of supervisors shall deem it neces­
sary, it may, with the consent o f the State department, require as a condition

40

PU B LIC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

to the grant or continuance o f aid in any case, that all or any part o f the
property of a person applying for aid be transferred to said board o f super­
visors. Such property shall be managed by said board of supervisors which
shall pay the net income thereof to such person; said board of supervisors shall
have power to sell, lease, or transfer such property or defend and prosecute all
suits concerning it and to pay all just claims against it and to do all things
necessary for the protection, preservation, and management thereof. If, in the
event such aid is discontinued during the lifetime o f such person, the property
thus transferred to the board of supervisors exceeds the total amount paid as
aid under this act, the remainder of such property shall be returned to such
person; and in the event o f his death such remainder shall be considered as the
property of the deceased for proper administration proceedings. The board
shall execute and deliver all instruments necessary to give effect to this section.
Sec. 10. Subsequent increase of income.— (a) If, at any time during the
continuance of aid, the recipient thereof or the husband or wife o f the re­
cipient, becomes possessed o f any property or income in excess of the amount
allowed by law in respect to the amount of aid granted, it shall be the duty of
the recipient immediately to notify the board of supervisors o f the receipt and
possession of such property or income and the board may, on inquiry and with
the approval of the State department, either cancel the aid or vary the amount
thereof in accordance with circumstances, and any excess aid theretofore paid
shall be returned to the State of California and be recoverable as a debt due
the State of California.
(6 ) If, on the death o f recipient of aid under this act, it is found that he
was possessed of property or income in excess of the amount allowed by law
in respect to the amount of aid, double the amount of the aid paid in excess of
that to which the recipient was legally entitled may be recovered by the de­
partment of social welfare as a preferred claim from his estate and upon
recovery shall be paid into the treasury of the State of California.
Seo. 11. Relief inalienable.—All aid given under this act shall be absolutely
inalienable by any assignment, sale, attachment, execution, or otherwise and in
case of bankruptcy the aid shall not pass through any trustee or other person
acting on behalf of creditors.
Seo. 12. Effect of subsequent legislation.—Any and all aid granted under
the provisions of this act shall be deemed to be granted and held subject to
the provisions of any law that may hereafter be enacted amending or repealing
in whole or in part the provisions of this act, and no recipient under this act
shall have any claim for compensation or otherwise by reason o f his aid being
affected in any way by any such amending or repealing act.
Seo. 13. Applications.—Every applicant for aid shall file his application in
writing with the board of supervisors of the county or city and county in
which he resides, in the manner and form prescribed by the State department.
All statements in the application shall be verified under oath, by the applicant.
Seo. 14. IwoestigaUom, etc.—The board of supervisors, directly or through
the advisory board or other authorized investigator, shall upon the receipt of
an application for aid promptly make the necessary investigation. It shall,
upon receipt of the report of the investigation, decide upon the amount of aid,
if any, and such decision shall be final; Provided, however, That in any case
where such application is denied by the board o f supervisors, the applicant,
upon filing a petition with the department of social welfare, setting forth the
facts in full as to the necessity of such aid, verified by five reputable citizens
of the county, shall have the right of appeal direct to said department of social
welfare, and if the appeal is sustained by said department the payments of aid
in the amounts determined by said department must be paid by the county or
city and county as herein provided. An applicant whose application for aid
under this act has been rejected may not again apply for such aid until the
expiration of one year from the date of the previous application. If the appli­
cation for aid be granted, the clerk of the board o f supervisors shall report the
fact to the auditor of the county or city and county. All payments of aid under
this act shall be made monthly by the treasurer of the county or city and
county in the manner provided by law for payment of claims against the
county or city and county. All aid under this act shall be renewed annually
on verified applications and after such further investigations as the board may
deem necessary, and the amount of aid may be changed if the board finds that
the recipient’s circumstances have been changed. It shall be within the power
of the board of supervisors to cancel and revoke aid for cause and it may for
cause suspend payments for aid for such periods as it may deem proper.

T E X T OP LA W S

41

Sbo. 15. R eports.— The clerk of the board of supervisors o f each county and
city and county shall report monthly to the said State department in such man­
ner and form as the latter may prescribe, the number of applications granted,
and the grants of aid changed, revoked or suspended under this act by the board
during the preceding calendar month, together with copies of all applications
received and a statement of the action of the board thereon, and shall report
the amount of aid to aged paid out under this act by said county or city and
county during said period. Claims for State aid granted under this act shall
be presented by the respective counties and city and county semiannually in
January and July of each year. Such claims shall be audited by the State
department of social welfare and the State comptroller and, when aproved, the
State comptroller shall draw the necessary warrants and the State treasurer
shall pay to the treasurer o f said county or city and county a sum equal to onehalf of the total amount o f payments made by said county or city and county
to aged citizens as aid under the provisions o f this act during the period for
which said claim is made.
Sbo. 16. Powers of State agency.—The State department of social welfare
shall have power to and shall prescribe the form o f application, the manner and
form of all reports and such additional rules and regulations as are necessary
for the carrying out of the provisions o f this act.
Sbo. 17. Payment of expenses.—All necessary expense incurred by county or
city and county boards o f supervisors and advisory boards, in carrying out
the provisions o f this act, shall be paid by the county or city and county in the
same manner as other expenses of such county or city and county are paid.
Sbo. 18. Improperly granted relief.—I f at any time the State department has
reason to believe that aid to the aged has been obtained improperly, it shall
cause special inquiry to be made and may suspend payment o f any installment
pending the inquiry. It shall notify the board o f supervisors and advisory board
of such suspension. I f it appears upon inquiry that the aid was obtained im­
properly, it shall be canceled by the State department, but if it appears that
aid was obtained properly, the supended payments shall be payable.
Seo. 19. Fraudulent acts.—Any person who by means of a false statement or
representation or by impersonation or other fraudulent device obtains or at­
tempts to obtain or aids or abets any person to obtain under this act:
(а) Old-age aid to which he is not entitled.
(б) A larger amount of aid than that to which he is justly entitled,
(e) Payment of any forfeited installment grant.
(d)
Or knowingly aids or abets in buying or in any way disposing of the
property of an applicant without the consent of the board o f supervisors, shall
be guilty of a misdemeanor and upon conviction thereof shall be punished by
a fine of not more than $500 or by imprisonment for not more than six months
or both such fine and imprisonment.
Sec. 20. Violations.—Any person who knowingly violates any provision o f this
act for which no penalty is specifically provided shall be guilty o f a misdemeanor
and upon conviction thereof shall be punished by a fine o f not more than
$500 or imprisonment for not more than six months or by both such fine and
Imprisonment.
Sbo. 21. Appropriation "by cotmty.—There is hereby appropriated out o f any
moneys in the State treasury not otherwise appropriated to each and every
county and city and county maintaining or supporting aged persons who come
within the provisions of this act, aid not in excess of $180 per annum fo r .
each such aged person maintained or supported by such county or city and
county. Payments of such aid shall be made in the manner provided in section
15 of this act.
Sbo. 22. Appropriation T State.—There is hereby appropriated out o f any
yy
moneys in the State treasury not otherwise appropriated the stun o f $20,000
for the expenses of the State department of social welfare in the administra­
tion of this act during the eighty-first and eighty-second fiscal years.
Sbo. 23. Construction of act.—Nothing in this act shall be construed as repeal­
ing any other act or part o f an act providing for the support o f the poor
except in so far as inconsistent therewith, and the provisions o f this act shall
be construed as an additional method of supporting and providing for the aged
poor. This act shall be liberally construed. I f any portion o f this act shall
for any reason be adjudged by any court o f competent jurisdiction to be
invalid or unconstitutional such judgment shall not affect, impair, or invalidate
the remainder o f this a ct

42

P U B U O OLD-AGE PEN SION S IN T H E U N IT E D STATES

Seo. 24. Effective date.— No aid granted under the provisions o f this act shall
be available or made payable before January 1, 1930.

(Approved May 28, 1929.)

Colorado
ACTS OF 1927
Chapter 143
Section 1 (as amended by Acts o f 1981, ch. 131). Establishment of system,—
The board o f county commissioners in each county or city and county o f this
State shall establish a system of Qld-age pensions in accordance with the
provisions of this act.
Seo. 2 (as amended by Acts of 1931, ch. 131). Persons entitled to aid, etc.—
Any person qualified as herein provided, while residing in a county or city and
county in this State, who shall comply with the provisions o f this act, shall
be entitled to an old-age pension as herein defined. The amount o f such
pension shall be fixed with due regard to the conditions in each case, but
in no case shall it be an amount which, when added to the income o f the»
applicant, including income from property, as computed under the terms o f
this act, shall exceed a total o f $1 per day.
Seo. 3 (as amended by Acts of 1931, ch. 131). Conditions.—An old-age pen­
sion or assistance may be granted only to an applicant who—
A. Has attained the age of 65 years or .upwards.
B. Has been a citizen o f the United States for at least 15 years before making
application for such pension.
0. Has resided in the State and county or city and county in which he makes
application, continuously for at least 15 years immediately preceding the date
of such application: Provided, further, That continuous residence in the State
and county shall not be deemed to have been interrupted by occasional periods
of absence therefrom, if the total of such periods of absence does not exceed
three years: Provided, further, That absence in the service of the State of
Colorado, or of the United States, shall not be deemed to interrupt residence
in the State or county, if a domicile be not acquired outside the State or
county.
D. Is not, at the date of making application, as [an] inmate of any prison,
jail, workhouse, infirmary, insane asylum, or any other public correctional
institution.
E. During the period o f 10 years immediately preceding such date, has
not been imprisoned for a felony.
F. I f a husband, has not deserted his wife or children, and has not, without
just cause, failed to support his wife and his children under the age of 15
years, for 6 months or more during the 15 years immediately preceding the
date of application for a pension.
G. If a wife, has not deserted her husband, or such of her children as are
under 15 years of age.
H. Has not, within one year preceding such application for pension, been an
habitual vagrant or beggar.
* I. Has no child or other person responsible, under the laws o f this State,
for his support and able to support him.
Seo. 4. Persons not entitled to aid.—No old-age pension shall be granted
or paid to a person—
A. While or during the time he is an inmate of and receives the neces­
sities of life from any charitable institution maintained by the State, or
any political subdivision of the State, or o f a private charitable, benevolent,
or fraternal institution, or home for the aged.
B. I f the value o f his property, or the value o f the combined property of
husband and wife living together, exceeds $3,000.
O. Who has deprived himself directly or indirectly o f any property for the
purpose of qualifying for old-age pension.
Seo. 5. Computation of income.— The annual income o f any property be­
longing to an applicant which is not so utilized as to produce a reasonable
income, shall be computed at 5 per cent o f its actual value.
Seo. 6. Amount deductible from estate.— On the death o f a person pensioned
pursuant to the terms and provisions o f this act, or o f the survivor o f a mar­

TE X T OP LA W S

43

ried couple, both o f whom were so pensioned, the total amount paid as
pension, together with the simple interest thereon at 3 per cent annually shall
be allowed and deducted from the estate o f such person or persons by the
county having jurisdiction to settle said estate. The amount so recovered
should be paid into the treasury of the county or the city and county con­
tributing to the pension received by the deceased or to the married couple o f
which the deceased was a survivor.
Seo. 7. Property transfer.—I f the county judge deems it necessary, he may
require as a condition to the grant of a pension certificate, that all or any part
of the property of an applicant for a pension be transferred to the board of
county commissioners o f the county where such applicant resides.
Such
property shall b& managed and controlled by said board o f county commis­
sioners and they shall pay the net income to the person or persons entitled
thereto. The board shall have power to sell, release, or transfer such prop­
erty, or to defend and prosecute all suits concerning it, and to pay all just
claims agains it, and to do all things necessary for the protection, preservation
and management of the property.
If, in the event that the pension is discontinued during the lifetime of the
pensioner, the property thus transferred to the board of county commissioners
exceeds the total amount paid as pension, with simple interest at 3 per cent
annually, the remainder of such property shall be returned to the pensioner,
and in the event of his death, such remainder shall be considered as the prop­
erty of the pensioner, to be disposed o f in accordance with the laws o f descent
and distribution in this State. The board o f county commissioners shall exe­
cute and deliver all necessary instruments to give effect to the provisions of
this section of this act.
The county attorney, at the request of the board of county commissioners,
shall take the necessary proceedings and represent and advise the board in
respect to any matters arising under this act.
Seo. 8. Application.—An applicant for a pension shall file his application in
writing, with the county judge of the county in which he resides, in such
manner and form as shall be prescribed by the board o f county commissioners.
All statements in the application shall be sworn to or affirmed by the applicant
as being true in every material point. No docket fee shall be required for such
filing.
S ec. 9. Investigations.— Immediately upon the filing of said petition or
application, the county judge shall promptly make, or cause to be made, such
investigation as he may deem necessary in order to determine the qualifications
of the applicant and the merit of said application. The county judge shall
decide upon the application and fix the amount of the pension with the approval
of the board o f county commissioners, if any, within 30 days after the filing of
said petition or application, and the decision of such court and board shall be
final. An applicant whose application for a pension has been rejected may not
again apply for a pension until the expiration o f 12 months from the date
o f the rejection of his previous application.
Seo. 10. Certificate.—The county judge shall issue to each applicant to whom
a pension is allowed a certificate stating the date upon which pension payments
shall commence and the amounts of each installment, which may be paid
monthly or quarterly as such judge may determine.
Each pensioner under the provisions o f this act shall file such reports with the
county judge as the board of county commissioners may, from time to time,
require. If it appears, at any time, that the applicant’s circumstances have
changed, the county judge may revoke or modify any pension certificate issued.
Any pension paid in excess of the amount due under the provisions of this
act shall be returned to the county and may be recoverable as a debt due the
county.
Sec. 11. Burial ewpenses.— On the death o f a pensioner, such reasonable
funeral expenses for burial shall be paid out of the pension funds as the
county judge may direct: Provided, That such funeral expenses shall not
exceed $100 in any case: And provided further, That the estate of the deceased
is insufficient to defray such expenses.
S eo. 12. Other sources o f income.—During the continuance of the pension no
pensioner shall receive any other relief from the State or from any political
subdivision thereof, or from the United States except for medical and surgical
assistance.
83360°—32------ 1

44

PTJBLIO OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

I f the pensioner is, on the testimony o f at least three reputable witnesses,
found incapable o f taking care of himself or his money or property the county
judge may direct the payment of the installments of the pension to any
responsible person or corporation for the benefit of the applicant, or may
suspend payments for such period as the judge shall deem advisable.
Seo. 13. Relief inalienable.—All pensions shall be exempt from any tax levied
by the State, or by any subdivision thereof, and shall be exempt from levy and
sale, garnishment and attachment, or any other process whatsoever and shall
be inalienable in any form.
Sec. 14. Improperly ffranted relief.—I f at any time the county judge has
reason to believe that a pension certificate has been improperly obtained he
shall cause special inquiry to be made and may suspend payment o f any install­
ment pending the inquiry. If, on inquiry, and after 10 days’ notice to the
pensioner, it appears that the certificate was properly obtained, the suspended
installment shall be payable in due course.
Seo. 15. Fraudulent acts.—Any person who by means o f a willfully false state­
ment or representation, or by impersonation or other fraudulent means o-r
device obtains, or attempts to obtain, or aids or abets any person to obtain—
A. A pension certificate to which he is not entitled;
B. A larger pension than that to which he is justly entitled;
O. Payments of any suspended or forfeited installment;
D. Or aids or abets in buying or in any way disposing o f the property o f
a pensioner without the consent of the county judge in whose county said peti­
tion is filed or to be filed
shall be guilty of a misdemeanor and upon conviction thereof, Shall be fined
in a sum not exceeding $500 or be imprisoned in the county jail for not more
than one year, or be punished by both such fine and imprisonment in the dis­
cretion of the court.
Seo. 16. Violations.—Any person who violates any provision of this act for
which no penalty is specifically provided, shall be deemed guilty o f a misde­
meanor and shall be subject to a fine not exceeding $500 or to imprisonment
not exceeding one year, or, in the discretion of the court, such person may be
punished by both fine and imprisonment.
W here a pensioner is convicted o f an offense under this act, the county judge
shall cancel the certificate.

Seo. 17. Pensions withheld.—I f a pensioner is convicted o f any misdemeanor,
felony, or other offense punishable by imprisonment for one month or longer,
payments o f pension shall not be made during the period of imprisonment.
Sec. 18 (as amended by Acts of 1981, ch. 131). Appropriation.—The Board
of county commissioners of each county or city and county shall annually appro­
priate a sum of money sufficient to carry out the provisions o f this act, so far
as the same relates to such county. Upon the orders o f the judge of the county
court, the county treasurer shall pay out the amounts ordered to be paid as
pensions pursuant to the terms of this act.
Seo. 19. Reports.—Not later than 30 days after the close o f each calendar
year the board of county commissioners of each county shall make a report for
the preceding year to the secretary of state, showing—
A. The amount paid by such county for pensions.
B. The total number of applications for pensions made during the preceding
calendar year.
C. The number o f pensions granted, number denied and the number canceled
during such year, together with such other information as may be required by
the secretary of state.
Sec. 20. Rules, etc., by county.—The board o f county commissioners shall,
from time to time, prescribe and promulgate rules and regulations to efficiently
carry out the provisions of this act, and shall publish such information as it
may deem advisable to acquaint aged persons and the public generally with
the old-age pension plan herein provided.
Seo. 21. Safety clause.— The General Assembly hereby declares that this act
is necessary for the immediate preservation o f the public peace, health and
safety*
Seo. 22. Effective date.—In the opinion o f the General Assembly an emergency
exists; therefore, this act shall take effect and be in force from and after its
passage.
(Approved March 19, 1927.)

TE X T OF L A W S

45

Delaware
ACTS OF 1931
C h apter

85

Section 1. Commission created*—There is hereby created the State old-age
welfare commission, consisting of 4 members—1 from the city o f Wilmington,
1 from rural New Castle County, 1 from Kent County, and 1 from Sussex
County.
Sec. 2. Appointment o f.—The first members o f said commission shall be
appointed by the governor, within 30 days after the approval of this act; 1
for one year, 1 for two years, 1 for three years, and 1 for four years. Vacancies
occurring in said commission, from any cause, shall be filled by the chief
justice. Appointments by the chief justice shall be only for the unexpired term
of a member o f the commission holding office under an original appointment;
but in every case where a vacancy shall occur, by reason of the expiration
of the full term of a member of the commission the appointment by the chief
justice shall be for the fuU term o f four years: Provided, That if a majority
of the commission shaU request the removal o f a member o f the commission,
the chief justice may, upon a full presentation o f the facts, remove such member
from the commission and fiU the vacancy thus created.
Sec. 3. Expenses of.—The members of said commission shall be duly sworn
or affirmed, according to law, to faithfuUy perform the duties of their office.
They shall serve without salary, but shall be entitled to receive a fee o f $5 for
attending each meeting o f the commission and, in addition, a reasonable allow­
ance for actual expenses incurred in the performance of their duties.
Seo. 4. Duties of.— It shall be the duty o f the said commission, and it is
hereby authorized and empowered, to grant assistance to old-age persons, under
the limitations and restrictions and in the manner hereinafter p rovided; and
fo r this purpose, "and generally for the exercise o f its powers and the perform ­
ance o f its duties, the said commission shall adopt such rules and regulations
as may be deemed advisable or necessary.

Sec. 5. Appomtment o f subordinate officers.—The said commission shall have
power to appoint subordinate officers, who shall hold office during the pleasure
o f the commission. The commission shall define the duties of such subordinate
officers and fix their salaries, which salaries shaU not exceed in any one case
$3,600 annually.
Sec. 6. Application o f act.—An old-age person, within the meaning and for
the purposes of this act, and under its limitations and restrictions, is hereby
defined to be a person, man or woman, 65 years of age or over, who has been
a resident of the United States for 15 years and who has resided in the State
of Delaware for not less than 5 years (temporary absence from the State not
being considered) ; who has no child or any other person capable and respon­
sible for the support o f such old-age person, without undue sacrifice on the
part of such child or other person, or his or her wife or husband, or his or
her chUdren; who has not deprived himself or herself, directly or indirectly,
of any property or income, for the purpose o f obtaining assistance from the
State, and who by assistance from the State can enjoy the essentials o f life,
of which he or she would be otherwise deprived.
Seo. 7. Investigation by commission.—The amount of assistance allowed in
each case of an old-age person shall be limited by the circumstances of such
case as ascertained, after fuU and complete investigation, by the said commis­
sion. The amount o f assistance aUowed in each case shall be determined by
the commission with due regard to the circumstances, but in no case shall it
be an amount which, when added to the income of the old-age person, including
income from property or other sources, as ascertained by the commission, will
be equal to or exceed $300 annually. In no case shall the amount of assistance
allowed exceed $25 monthly.
Sec. 8. Application form.—An old-age person desiring assistance from the
State shaU make appUcation in writing, under oath or affirmation, to the com­
mission in such form as the commission may prescribe, setting forth that the
statements in such application are just and true; and upon receiving such
application the commission shaU cause an investigation to be made to verify the
statements in said application and to ascertain all the circumstances surround­
ing the appUcant. In each case the commission shall include in its investiga­
tion careful inquiry as to every possible source of income o f the applicant.

46

PU B LIC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

In ascertaining the applicant’s income and determ inin g the amount o f assist­
ance to be allowed, the applicant’s income for the last year preceding the appli­
cation shall be deemed the annual income and the property owned at the end
of that year as the accumulated property of the applicant: Provided, That, if the
applicant should show to the satisfaction of the commission a decrease of
income the amount o f such decrease shall be deducted from the income of the
preceding year in determining the amount of assistance to be allowed. For the
purpose of such investigation the commission shall have power to compel, by
subpoena issued under its authority, the attendance and testimony o f witnesses
and the production o f books and papers. All witnesses shall be examined
under oath or affirmation, which may be administered by any member o f the
commission.
Sec. 9. Issuance of certificate.— Upon the determination by the commission
that the application of an old-age person should be granted, it shall cause a
certificate to be issued to such person, in form prescribed by the commission,
stating the amount o f assistance allowed, to be paid monthly, which said certif­
icate shall be good for one year from the date thereof, unless sooner revoked
for cause, and shall be renewable by the commission annually upon ascertain­
ing that the old-age person is entitled to such renewal. The commission shall
report to the State treasurer the granting of the application and the issuance
of the certificate, and the renewals thereof, and the State treasurer shall pay
to the person named therein the amount set forth in said certificate. If, how­
ever, the old-age person to whom assistance has been allowed shall be found
incapable of taking care of his or her money, or himself or herself, on the
testimony of at least three credible witnesses, not members of his or her im­
mediate family, the commission may direct the payment of the amount set
forth in said certificate to be made to a person of good reputation who will
expend the same for the benefit of such old-age person.
Sec. 10. Burial expenses.— Upon the death o f an old-age person, to whom a
certificate allowing assistance has been issued, further allowance fo r reasonable
funeral expenses, not exceeding $100, may be made by the commission, if
warranted by the circumstances o f the case, and the amount so allowed shall
be paid by the State treasurer, together with such unpaid installments as may
be due under said certificate, to the legal representative o f the deceased.
Seo. 11. No other aid allowable.— During the continuance in fu ll o f a certifi­
cate allowing assistance to an old-age person, such person shall not receive any
other assistance from the State, or from any political subdivision thereof,
except for medical or surgical treatment, and then only in extreme emergency.

Sec. 12. Possession of property.—I f at any time during the continuance o f a
certificate allowing assistance to an old-age person, the said old-age person, or
the husband or wife o f such person, shall become possessed o f any property, or
income, in excess of the amount of which he or she was possessed at the time
o f making application for assistance, the commission may either cancel the
certificate or vary the amount thereof during the period of such certificate; and
it shall be the duty o f such old-age person immediately to notify the commission
o f the receipt and possession of any such property or income.
Sec. 13. Improperly obtained certificate.—I f at any time the commission
shall have reason to believe that the certificate issued to an old-age person has
been improperly obtained, it shall cause special inquiry to be made, and, if
necessary, may suspend payments under said certificate; and if it should
appear that the certificate was improperly obtained, the same shall be canceled.
Seo. 14. Forfeiture o f certificate.— In case of forfeiture o f a certificate allow­
ing assistance to an old-age person, the person whose certificate is so forfeited
shall be disqualified from making application for another allowance until the
expiration o f one year from the date o f the forfeiture.
Sec. 15. Cancellation of certificate.—When an old-age person to whom as­
sistance has been allowed under this act, shall become an inmate o f any char­
itable or benevolent institution, the amount of assistance shall cease and de­
termine and the certificate issued to such person shall be canceled.
Seo. 16. Assistance not allowed.—No assistance shall be allowed to an oldage person who is an inmate of any prison, jail, workhouse, infirmary, insane
asylum, almshouse, or any public reform or correctional institution, or who,
during a period of one year prior to making application for assistance, shall
have been a professional tramp or beggar.
Sec. 17. Conviction of crime.—If any old-age person, to whom assistance has
been allowed under this act, shall be convicted of any crime, misdemeanor or

TEX T OF L A W S

47

felony, or other offense, punishable by imprisonment for one month or any
longer period, the commission shall direct that payments be not made during
such period.
Sec. 18. Allowance subject to amended act.—Every allowance to an oldage person o f assistance under the provisions o f this act shall be deemed to
have been allowed under and shall be held subject to the provisions of any
amending or repealing act that may hereafter be passed, and no old-age person
receiving assistance under this act shall have any claim for compensation by
reason of the allowance for assistance being affected in any way by any such
amending or repealing a ct
Sec. 19. Certificate not subject to assignment.—All certificates allowing as­
sistance to old-age persons shall be absolutely inalienable by any assignment,
sale, charge, execution or otherwise, and in case o f bankruptcy the assistance
allowed shall not be payable to any attorney, assignee, receiver or trustee act­
ing on behalf of the creditors o f such old-age person.
Sec. 20. Exempted property.—The property of old-age persons to whom as­
sistance has been allowed shall be wholly exempted from taxation and assess­
ment for public purposes by the State, or any political subdivision thereof,
whether county, hundred, city, or town, but such exemption shall be terminated
upon the discontinuance of the assistance allowed such old-age person.
Sec. 21. Violations.—Any person who by willful false statements, or misrep­
resentation, or other fraudulent device, obtains or attempts to obtain, or aids
or abets any other person to obtain a certificate allowing assistance to an
old-age person, to which he or she shall not be legally entitled, or a larger
amount then [than] he or she shall be legally entitled to receive, or the pay­
ment of a forfeited or forbidden installment under a certificate, or aids or
abets in the buying or in any way disposing of the property o f an old-age
person without the knowledge or consent o f the commission shall be guilty
of a misdemeanor and upon conviction thereof shall be sentenced to pay a fine
not exceeding $500 or to undergo imprisonment not exceeding three years, or
both in the discretion of the court.
Seo. 22. Expenses paid by State treasurer.—All expenses incurred by the
commission and all salaries fixed by the commission shall be paid from the
appropriation named in section 24 of this act as appropriated, by the State
treasurer, upon vouchers duly verified and presented by the commission.
Sec. 23. Reports.— The commissioner shall report annually to the governor,
within 90 days after the close o f each calendar year, all expenditures made by
it, or under its authority, and such other information regarding its procedure
as will fully and clearly set forth all the particulars of such procedure, in­
cluding the number o f old-age persons to whom certificates allowing assistance
have been granted, classified as to men and women according to their color,
the number of certificates canceled and the number o f applications deniecL
Seo. 24. Appropriation.—The sum of $200,000 annually is hereby appropriated
for the period of two years beginning July 1, 1931, out o f the general funds in
the State treasury for the purposes of this a c t
(Approved January 29, 1931.)

Idaho
ACTS OF 1931
C hapter 16
Section 1. Commission created.—There is hereby established in each county
o f the State of Idaho, a county old-age pension commission, hereinafter desig­
nated as the commission, consisting of the probate judge and the board o f
county commissioners o f the respective counties o f this State, who shall serve
as such without any additional compensation.
Seo. 2. Duties of.—The commission shall perform all the duties imposed upon
it by this act, relative to ascertaining the facts and determining who shall be
entitled to the benefits thereof, under such rules, forms and regulations for
applications, reports, affidavits and such other forms as the department o f
public welfare, of the State of Idaho, shall promulgate, prescribe, and determine
to the end that this act shall be uniformly interpreted, operated and carried into
effect throughout the several counties within the State.

48

P U B U O OLD-AGE PEN SION S IN T H E U N IT E D STATES

Seo. 3. Coverage of act.—Every person (man or woman, married or single)
shall in the discretion o f the commission, while residing in the State of Idaho,
be entitled to a pension in old age, subject to the restrictions and qualifications
hereinafter noted.
Seo. 4. Amount.—The amount o f said pension shall be fixed by the com­
mission, with due regard to the conditions in each case; but in no event shall
it exceed $25 per month.
Seo. 5. Application of act.—An old-age pension may be granted only to an
applicant who—
(a) Has attained the age o f 65 years or upwards.
(ft) Has been a citizen o f the United States for at least 15 years before
making application for a pension.
(c) Resides in the State of Idaho, and has so resided continuously for not
less than 10 years immediately preceding the date of application, and in the
county in which the application is filed three years next preceding the date
of the filing thereof, and who has during such period pursued some useful
occupation or profession to the extent of his or her ability: Provided, That
continuous residence in the State o f Idaho shall not be deemed to have been
interrupted by occasional absence therefrom where the total period of such
absence does not exceed one year; or by absence from the State while in the
employ or service of the State or United States: And provided further, That
person having a proper county residence as hereinbefore provided, who has
resided in the State of Idaho 15 years, at least 5 o f which have been immedi­
ately preceding the date of application, and is not at the date o f making
such application an inmate of any prison, jail, insane asylum, or any other
public reform or correctional institution, shall be deemed qualified in respect
to residence.
'
(d ) That during the period o f 10 years immediately preceding such date
he has not been imprisoned for any offense punishable by imprisonment in
the State penitentiary.
(e) That the claimant, if a husband, has not during the period of 10 years
immediately preceding such date of application for a pension, for a period
of 6 months or upwards, deserted his wife or without just cause failed to
provide for her with adequate means of maintenance, or neglected to main­
tain and provide for such of his children as were under the age o f 15 years,
or, if a wife, deserted her husband or such of her children as were under age.
(f ) That he has not been within one year preceding such application a
professional tramp or beggar.
Seo. 6. Property limitations.— (a ) The income of the applicant from all
sources at the date o f application shall not exceed the sum of $300 per annum,
and any pension granted hereunder, together with the applicant’s income shall
not annually exceed said sum.
(&) The applicant must not have deprived himself or herself, directly or
indirectly, of any property for the purpose of qualifying for a pension.
(c) The aged person must have no child or any other person responsible for
his or her support under the laws of this State, able to support the applicant.
(d) At the death of the person to whom the pension is granted or of the
last survivor of a married couple, so pensioned, the' total amount of such pen­
sion since the first allowance thereof, together with 5 per cent of interest per
annum from date of allowance shall be presented as a claim in said estate by
the prosecuting attorney of the county wherein said pension was granted and
shall be deducted and allowed by the proper courts out of the proceeds of his
or her property, including the homestead and other exempt property, as a
preferred claim against the estate of the person so pensioned, and refunded
to the county treasury to the credit o f the poor fund or the county current
expense fund, as the case may be, leaving the balance for the payment of debts
and distribution among the lawful heirs in accordance with la w : Provided,
That the commission may demand the assignment or transfer o f such prop­
erty upon the first grant of such pension. The commission shall establish suqh
rules and regulations regarding the care, transfer, management, and sale of
such property as it deems advisable, and shall, after reimbursing the county
for all sums advanced, provide for the return of the balance o f the applicant’s
property in its hands whenever the pension is withdrawn or the applicant
ceases to request it.
Seo. 7. Computation of property value.— (a) The annual income o f any prop­
erty inclusive of a homestead, shall be computed at 5 per cent of its determined
value.

TEX® OS’ L A W S

49

(&) In ascertaining an applicant’s income and the amount of pension, his
income for the last preceding year shall be deemed his annual income, and
the property owned at the end of that year as his accumulated property: Pro­
vided, That when the applicant shows to the satisfaction o f the commission
the loss of personal income derived from personal earnings, it shall be de­
ducted from income of the preceding year in considering the amount of pension
to be granted.
Sbo. 8. Application form.— ( a ) An applicant for a pension under this act,
shall file his or her application in writing with the probate judge of the county
in which the applicant resides in the manner and form prescribed by the com­
missioner of the department o f public welfare. All the statements in the appli­
cation shall be sworn to or affirmed by the applicant, setting forth that all facts
are true and correct in every material point.
(6) After proper investigation of said application by the probate judge, he
shall present the same to the county commissioners at their next meeting with
his recommendaion for their approval. In the event the commissioners, or a
majority thereof, approve the recommendation of the probate judge, their action
shall be final, unless the applicant shall, within 10 days after receiving notice
of such action, demand a hearing upon said application, in which event the
probate judge shall fix a date for the hearing thereof, which shall be attended
by the county attorney and a majority o f the county commissioners, with full
power of investigation. The applicant shall be notified, sufficiently in advance,
of the date of the hearing on which he may attend to support his application,
and after such hearing the decision of the probate judge, with the approval of
the county commissioners, shall be final.
(o)
For the purpose o f such investigation, the applicant or any member of
the board of county commissioners shall have the right to request the issuance
of subpoenas, or the probate judge on his own motion, may do so, compelling
the attendance of witnesses and the production of books and papers. All
witnesses shall be examined on oath or affirmation administered by the probate
judge, and their testimony may be taken in shorthand by the county stenog­
rapher and the county attorney shall examine or cross-examine the applicant
or any witness appearing on such hearing.
( d)
In the investigation of any application for a pension or any renewal
thereof, the commission shall investigate and make its decision and findings in
all cases by such means and in such manner as it deems proper.
Sbo. 9. Issuance of certificate.— (a ) When the application is allowed and
the rate of the first year’s pension fixed, the probate judge with the approval o f
the board of county commissioners, shall issue to the applicant an old-age pen­
sion certificate stating the amount of the monthly payment, which shall be
good for one year, except as otherwise provided in this act.
(&) Such certificate shall be required to be renewed or issued each subse­
quent year after satisfactory investigation.
Sbo. 10. Date of paying pension.— (a.) The pension shall commence on the
date named in the certificate, which shall be the first day o f the month within
which the certificate is issued: Provided, That where an application is allowed,
the certificate shall be issued not later than three months after application has
been made.
(6) All installments shall be paid monthly, the payments to be made in such
form and manner as may be ordered by the commission.
Sec. 11. Cancellation of certificate.— (a ) I f at any time during the currency
or continuance of an old-age pension certificate, the recipient or the wife or hus­
band of the recipient becomes possessed o f any property or income in excess
of the amount allowed by law in respect to the amount of the pension granted,
the commission shall either cancel the pension or vary the amount thereof dur­
ing the period of the certificate. And it shall be the duty of the recipient to
immediately notify the probate judge o f the receipt and possession o f such
property or income, and give him full and complete information with respect
thereto, and in the event such property or income is in excess of the amount
allowed by law for the allowance of a pension hereunder, then as to such
excess the commission shall have a lien thereon, prior to all other liens, except
general taxes, for the repayment o f all sums advanced, and in the event the
same is not paid within such time as the commission may fix, the county attor­
ney shall commence an appropriate action in the name of the commission to
enforce said lien and recover the amount so advanced, and the proceeds eft
such action shall be paid into the fund from which the pension was granted.

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P U B LIC OLD-AGE PEN SIO NS IN T H E U N IT E D STATES

(6) Whenever during the life, or upon the death of any recipient o f an oldage pension certificate, it is found that he or she was possessed of property
in excess of the amount allowed by law in respect to the amount of pension
granted, double the total amount of the relief granted in excess of that to which
the recipient was by law entitled, may be recovered by the commission as a
preferred claim from the estate so found in excess. The county attorney shall
institute and prosecute the necessary proceedings to recover such claim and
all property of the recipient, including homestead and other exempt property,
shall be liable therefor and the amount recovered shall be paid into the county
treasury, and credited to the fund from which the pension was paid.
Sec. 12. Burial expenses.— (a) On the death of a recipient of an old-age
pension, the commission shall pay such reasonable funeral expenses as are
necessary for the burial of such person: Provided, That these expenses shall
not exceed $100: And provided further, That the estate of the deceased is
insufficient to defray these expenses.
(b) And provided further, That these provisions for providing for old-age
pensions shall not be construed as a vested right in the pensioner.
Seo. 13. Payment to charitable institution.— (a) When an old-age pension
recipient becomes an inmate of any charitable or benevolent institution, pay­
ments accruing upon the certificate or such amount thereof as may be necessary
shall be paid to the governing authorities o f that institution, and shall be
applied toward defraying the actual expenses of such person in such institution:
Provided, That the commission has approved, and that it and its agents are
permitted freely to visit and inspect said institution. It shall not be lawful
for the authorities o f any charitable institution receiving public moneys, to
refuse admission as an inmate o f such institution or to refuse relief on the
ground that the person is an old-age recipient under this act.
(6)
During the continuance of the pension no recipient shall receive any
other relief from the State or from any political subdivision thereof, except
for medical and surgical assistance.
Sec. 14. Certificate net assignable.—No old-age pension certificate shall be
sold, assigned, or be subject to execution or attachment or other process, and in
case of bankruptcy the same shall not pass to or through any trustee or other
persons acting on behalf of creditors.
S ec . 15. Improperly obtained certificate.—I f at any time the commission has
reason to believe that any certificate has been improperly obtained, it shall
cause special inquiry to be made, and may suspend payment of any installment
pending inquiry. If, on inquiry, it appears that the certificate was improperly
obtained, it shall be canceled by the probate judge with the approval o f the
county commissioners, but if it appears that the certificate was properly
granted, the suspended installment shall be payable in due course.
Seo. 16. False representations.— Any person who by means o f a w illfu l false
statement or representation, or concealment o f facts relative to his property,
or by impersonation, or other fradulent device, obtains, or attempts to obtain
or aids or abets any other person to obtain—

(а) A pension certificate or any payment thereon to which he is not justly
entitled.
(б ) A greater allowance than that to which he is justly entitled.
(c) Payment of any forfeited installment certificate.
(d) Or aids or abets in the buying or in any way disposing of the property
of an old-age pension recipient, without the consent of the commission shall be
guilty of a misdemeanor and upon conviction thereof, shall be punished by a
fine not exceeding $300 or imprisonment in the county jail not exceeding 6
months, or both, in the discretion o f the court.
Sec. 17. Violations.— (a) Any person who violates any of the provisions o f
this act for which no penalty is specifically provided, shall be subject to a
fine not exceeding $300, or imprisonment in the county jail, not exceeding six
months, or both, in the discretion o f the court.
(6)
Where an old-age pension recipient is convicted of an offense under
this act, the commission shall cancel the pension certificate in respect to the
issuance of which the offense was committed.
Sec. 18. Conviction of crime.— I f any recipient under this act is convicted
of any crime, misdemeanor o f [or] felony, punishable by imprisonment for
one month or longer period, the commission shall direct that payments be not
made during such period. I f the recipient is found incapable o f taking care
o f his money or himself on the testimony of at least three reputable witnesses.

TE X T OF L A W S

51

the commission may direct the installment o f his pension to be paid to any
other reputable person for his benefit, or may suspend the same for such period
as it deems proper.
Seo. 19. Disqualification by forfeiture .— In case o f forfeiture o f a pension
certificate the person whose certificate is so forfeited shall be disqualified fo r
making any application fo r a new certificate until expiration o f one year from
the date o f forfeiture.
Seo. 20. Funds provided by county.—Funds for the administration o f this

act and the payment of pensions issued thereunder, shall be provided by the
several counties of this State from the poor fund or county current expense
fund, as the case may be, used by the county in caring for its poor.
Seo. 21. Reports.—Within 90 days after the close of each calendar year,
the commission for the several counties of this State shall make a report to
the department o f public welfare o f this State, stating—
( a) The total number of recipients.
(b) The amount paid in case [cash],
(c) The total number of applications.
(d) The number o f granted pensions, the number denied, the number can­
celed during that year and such other information as the department of public
welfare may deem advisable.
Seo. 22. Administration.—The primary and active administration o f the pro­
visions of this act shall devolve upon the probate judge, who shall keep a record
of each application and all proceedings had and taken thereon. It being the
intention to confer upon the board o f county commissioners such supervisory
power and control as may be necessary, to the end that the provisions o f this
act are not abused, nor any deserving person denied relief thereunder.
Seo. 23. Pension subject to amended act.—Every pension granted under the
provisions of this act shall be deemed to be granted and shall be held subject
to the provisions of any amending or repealing act that may hereafter be
passed, and no recipient under this act shall have any claim for compensation
or otherwise by reason o f his certificate being affected in any way by any
such amending or repealing a ct
Seo. 24. Gender.— That whenever in this act the masculine pronoun is used,
it shall be held to include the feminine pronoun also.
Sec. 25. Title of <ict.—This act shall be named and cited as the old-age

pension act of the State of Idaho.
(Approved February 12, 1931.)

Kentucky
STATUTES (CARROLL’S) 1930
A rticle X V
Section 9381-1. Establishment of system.— That the fiscal court or county
commissioners of each o f the counties of the State may, after first adopting
the provisions of this act, establish a system of old-age pensions in accordance
with the provisions provided herein and may levy, collect and disburse such
sums of money from the general funds o f their county as may be necessary
to comply with the provisions o f this act. After having operated under such
system for one year or more, any county may abandon such system.
Seo. 938i-2. Amount of pension.—Any person while residing in a county
which maintains a system of old-age pensions, who shall comply with the pro­
visions of this act shall be entitled to a pension in old age. The amount o f
such pension shall be fixed by the county judge with due regard to the condi­
tions in each case, but in no case shall it exceed $250 per annum.
Seo. 938i-3. Conditions.—An old-age pension may be granted only to an appli­
cant who has attained the age o f 70 years or upwards, and has been a citizen
of the United State [States] for at least 15 years before making application for
a pension and has resided in the State and county in which he makes appli­
cation for at least 10 years immediately preceding the date of application.
Seo. 938i-4. Persons not entitled to pensions.—That no person shall be entitled
to an old-age pension who is a professional beggar or who, by manual labor or
by his or her skill or knowledge in any profession, trade or craft is able to
earn any sum in excess o f $400 per annum or who receives a pension from the
United States or any State or foreign government [or] from any source which,

52

PTJBLJC OLD-AGE PEN SIONS IN T H E U N IT E D STATES

when added to his or her earnings, will exceed the sum of $400, or who possesses
property to the value of $2,500 or more, or who has an income from any
source, in excess of $400 per annum or who is an inmate of any State, county,
or charitable institution within this State or any other State or who had
deprived himself or herself, directly or indirectly, of any property for the purpose
o f qualifying for old-age relief or who has a child or other person responsible
under the laws of this State for his or her support and able to support such
applicant.
Seo. 938i-5. Amount deductible from estate.—On the death o f the person pen­
sioned under the provisions of this act or of the survivor of a married couple,
both of whom were so pensioned, the total amount paid as pension, together with
simple interest at 3 per cent annually shall be allowed and deducted from the
estate o f such person or persons by the court having jurisdiction to settle the
estate. The amount so recovered shall be paid into the treasury of the county
where said pension was paid and become a part of the old-age pension fund o f
said county.
Sec. 938i-6. Application, vrwestiffation, certificate, reapplication, revocation,
etc,—An applicant for a pension shall file his or her application by writing
with the county judge of the county in which he resides in such manner and
form as shall be prescribed by the fiscal court or county commissioners. The
county judge shall promptly make or cause to be made investigations as he
may deem necessary and shall decide upon the application and fix the amount
o f the pension, if any, and such decision shall be final. An applicant whose
application for a pension has been rejected may not again apply for a pension
until the expiration of 12 months from the date o f his previous application.
The county judge shall issue to each applicant, to whom a pension is allowed,
a certificate stating the date upon which pension payments shall commence
and the amount of each installment, which may be monthly or quarterly, as
the judge may decide. Each pensioner under the provisions of this act shall
file such reports with the county judge as requested by the fiscal court or
county commissioners. I f it appears at any time that the applicant’s circum­
stances have changed, the county judge may revoke any pension certificate
issued.
Seo. 938i-7. Fraudulent acts, violations, etc .— Any person, who by means o f
a w illfully false statement or representation or by impersonation or other
fraudulent device, obtains or attempts to obtain or aids or abets any person
to obtain a pension certificate, to which he is not entitled, shall be guilty o f
a misdemeanor and on conviction thereof shall be fined not more than $500 or
imprisonment in the county ja il for not more than one year or punished by
both such fine and imprisonment.

(Chapter 187 o f Acts of 1926, effective March 25, 1926.)

Maryland
ACTS OF 1927
C hapter 538 ( a s A mended 1931, C h . 114)
Section 1. Establishment of system.—The mayor and council o f the city o f
Baltimore, or the county commissioners of any county of the State o f Mary­
land, are hereby authorized to establish a system of old-age pensions in accord­
ance with the provisions of this article.
Seo. 2. Amount.—Any person while residing in a county or in Baltimore
city, which maintains a system of old-age pensions, who shall comply with the
provisions o f this article, shall be entitled to a pension in old age. The
amount of such pension shall be fixed with due regard to the conditions in
each case, but in no case shall it be an amount which, when added to the
income o f the applicant, including income from property, shall exceed a total of
$1 a day.
Sec. 3. Conditions.— An old-age pension may be granted only to an applicant
who—

(1) Has attained the age o f 65 years or upwards.
(2) Has been a citizen of the United States for at least 15 years before
making application for a pension.
(3) Has resided in the State and county or Baltimore City, in which he makes
an application—
*

T E X T OB’ I A W S

53

(a ) Continuously for at least 10 years immediately preceding the date o f
application; but
(b ) Provided, That absence in the service of the State of Maryland or of
the United States shall not be deemed to interrupt residence in the State and
county or Baltimore city if a domicile be not acquired outside o f the State and
county or Baltimore city.
(4) Is not at the date o f making application an inmate of any prison, jail,
workhouse, infirmary, insane asylum, or any other public correctional institu­
tion.
(5) During the period o f 10 years immediately preceding such date has not
been imprisoned for a felony.
(6) I f a husband, has not, without just cause, failed to support his wife and
his children under the age o f 16 years for 6 months or more during the 15 years
preceding the date o f application for a pension.
(7) Has not, within one year preceding such application for a pension been
a habitual tramp or beggar.
(8) Has no child or other person responsible, tinder the laws o f this State, for
his or her support and able to support him or her.
Seo. 4. Persons not entitled to pension.—No old-age pension shall be granted
or paid to a person:
(1) While or during the time he or she is an inmate o f and receives the
necessities of life from any charitable institution, maintained by the State or
any of the political subdivisions of the State, or of a private charitable,
benevolent or fraternal institution or home for the aged.
(2) Who has deprived himself or herself, directly or indirectly, o f any
property for the purpose o f qualifying for old-age relief.
Seo. 5. Application.—Any applicant for a pension shall file his or her
application in writing with the county commissioners o f the county in which
he or she resides or with the supervisors o f city charities if a resident of
Baltimore city, in such manner and form as shall be prescribed by the county
commissioners or the supervisors of city charities of Baltimore city. All
statements in the application shall be sworn to or affirmed by the applicant.
Seo. 6. Investigation.—The said county commissioners and the supervisors
o f city charities shall promptly make or cause to be made such investigations as
they may deem necessary. The county commissioners for the counties and the
supervisors o f city charities for Baltimore city shall decide upon the application
and fix the amount o f the pension, if any, and such decision shall be final. An
applicant whose application for a pension has been rejected may not again apply
for a pension until the expiration o f six months from the date of his or her
previous application.
t Sec. 7. Change o f pensioner’ s condition.—Each pensioner under the provisions
o f this article shall furnish such information as the county commissioners or the
supervisors of city charities o f Baltimore city may from time to time require.
I f it appears at any time that the circumstances of the pensioner have changed,
the county commissioners or the supervisors o f city charities may revoke or
modify any pension allowed.
Seo. 8. Burial expenses.—On the death of a pensioner, such reasonable funeral
expenses for burial shall be paid to such persons as the county commissioners
for the counties and the supervisors o f city charities for Baltimore city may
direct: Provided, That these expenses shall not exceed $125: And provided
further, That the estate of the deceased is insufficient to defray these expenses.
Seo. 9. Other relief prohibited; incapacity of pensioner.— (1) During the
continuance of the pension no pensioner shall rceive any other relief from the
State or from any political subdivision thereof except for medical and surgical
assistance.
(2)
I f the pensioner is, on the testimony o f at least two reputable witnesses,
found incapable of taking care of himself or his money, the county commis­
sioners for the counties and the supervisors o f city charities for Baltimore city
may direct the payment of pension installments to any responsible person or
corporation for his benefit or may suspend payment for such period as the
county commissioners for the counties and the supervisors o f city charities
for Baltimore city shall deem advisable.
Seo. 10. Relief inalienable.—All pensions shall be exempt from any tax levied
by the State or by any subdivision thereof, and exempt from levy and sale,

54

P U B L IC OLD-AGE PE N SIO N S IN T H E U N IT E D STATES

garnishment, attachment or any other process whatsoever and shall be inalien­
able in any form.
Seo. 11. Improperly granted relief.—I f at any time the county commissioners
for the counties and the supervisors of city charities for Baltimore city have
reason to believe that a pension has been improperly obtained, the said county
commissioners for the counties and the supervisors of city charities for Balti­
more city shall cause special inquiry to be made and may suspend payment of
any installments pending the inquiry. If upon inquiry it appears that the
pension was improperly obtained, it shall be canceled; but if it appears that
the pension was properly obtained, the suspended installments shall be payable
in due course.
Sec. 12. Fraudulent acts.—Any person who by means o f a willfully false
statement or representation, or by impersonation, or other fraudulent device,
obtains, or attempts to obtain, or aids or abets any person to obtain—
(a) A pension to which he or she is not entitled.
(&) A larger pension than that to which he or she is lawfully entitled.
(c) Payment of any forfeited installments.
(d) Or aids or abets in buying or in any way disposing o f the property of
a pensioner without the consent of the county commissioners for the counties
and the supervisors of city charities for Baltimore city, shall be guilty o f a
misdemeanor and upon conviction thereof shall be fined not more than $500,
or be imprisoned in the county or city jail for not more than one year, or be
punished by both such fine and imprisonment, in the discretion of the court.
Seo. 13. Violations.— (1) Any person who violates any provision o f this
article for which no penalty is specifically provided shall be subject to a fine
not exceeding $500 or to imprisonment not exceeding one year, or both.
(2)
Where a pensioner is convicted of an offense under this section, the
county commissioners for the counties and the supervisors of city charities for
Baltimore city may cancel or revoke the pension granted.
Sec. 14. Pensions withheld.— I f a pensioner is convicted of any misdemeanor,
felony, or other offense, punishable by imprisonment for one month or longer,
payments shall not be made during the period o f imprisonment.
Seo. 15. Appropriation.—The county commissioners of each county or the
mayor and city council o f Baltimore may annually appropriate a sum o f
money sufficient to carry out the provisions of this article. Upon the orders
of the county commissioners for the counties and the supervisors of city chari­
ties for Baltimore city, the county treasurer or the city comptroller, as the
case may be, shall pay out the amounts ordered to be paid as pensions, under
the provisions of this article.
Seo. 16. Urgent cases.— Should the fund or funds available be insufficient to
permit o f a pension to only a part of those coming within the provisions o f
this article, the county commissioners in the several counties or the super­
visors o f city charities of Baltimore city shall select in their discretion those
in most urgent need of such pension.
Seo. 17. Employment of clerks, etc.—The county commissioners for the
counties and the supervisors of city charities for Baltimore city shall have the
power to employ such assistant investigators and clerical help as they may
deem necessary, whose salaries shall be fixed and determined by the county
commissioners for the counties and by the board of estimates for the city of
Baltimore.
Seo. 18. Reports.—Each year a report of the total number of applications for
pensions, the number granted, the number denied, the number canceled and
the total amount expended for pensions, shall be submitted by the county com­
missioners to the governor and by the supervisors o f city charities in their
annual report to the mayor and city council of Baltimore and the governor.
Seo. 19. Promulgation of rules, etc.—The county commissioners for the
counties and the supervisors of city charities for Baltimore city shall from time
to time prescribe and promulgate rules and regulations to carry out the pro­
visions of this article, and shall publish such information as they may deem
advisable to acquaint aged persons and the public generally with the old-age
pension plans o f this State.
(Approved and effective April 6,1931. Bepeals original act (Acts of 1927, ch.
538), approved April 26, 1927.)

TE X T OF L A W S

55

Massachusetts
ACTS OF 1930
Ghapteb 402
S ection 1. Providing relief.—Adequate assistance to deserving citizens in
need of relief and support, 70 years of age or over, who shall have resided in
the Commonwealth not less than 20 years immediately preceding arrival at
puch age, subject to such reasonable exceptions as to continuity o f residence as
the department of public welfare, in this chapter called the department, may
determine by rules hereinafter authorized, shall be granted under the super­
vision of the department Such assistance shall, wherever practicable, be given
to the aged person in his own home or in lodgings or in a boarding home, and
it shall be sufficient to provide such suitable and dignified care. No person
receiving assistance hereunder shall be deemed to be a pauper by reason thereof.
Sec. 2. Establishment of agency.—Each board of public welfare shall, for the
purpose of granting adequate assistance and service to such aged persons,
establish a division thereof to be designated as the bureau of old-age assistance.
In determining the need for financial assistance, said bureaus shall give con­
sideration to the resources of the aged person and to the ability o f children and
others to support such aged person. Separate records of all such aged persons
who are aided shall be kept and reports returned in the manner prescribed by
section 34 of chapter 41, and by sections 32 and 33 o f chapter 117.
Sec. 3. Reimbursement.— In respect to all aged persons in receipt of assist­
ance under this chapter, the town rendering the assistance shall, after and
subject to approval of the bills by the department and subject otherwise to
the provisions of section 42 of chapter 121, be reimbursed by the Common­
wealth for one-third of the amount of assistance given, or, if the person so
aided has no settlement in the Commonwealth, for the total amount thereof.
I f the person so aided has a legal settlement in another town, two-thirds of
the amount of such assistance given may be recovered in contract against* the
town liable therefor in accordance with chapter 117.
S ec . 4. Duties of department.—The department shall supervise the work
done and measures taken by the boards of public welfare of the several towns
in respect to persons aided and service given under this chapter; and for this
purpose may make such rules relative to notice and reimbursement, and such
other rules relating to the administration of this chapter, as it deems necessary,
and may visit any person aided, and shall have access to any records and other
data kept by the boards of public welfare or their representatives relating to
such assistance, and require the production o f books and papers and the tes­
timony of witnesses under oath.
(Approved May 28, 1930; effective July 1, 1931.)

Minnesota
ACTS OF 1929
C hapter 47
Section 1 (as amended by acts o f 1931, ch. 138). Establishment of system.—
Any county in this State is hereby authorized to establish a system o f old-age
pensions. Before so doing the proposition of the establishment o f such a sys­
tem shall be duly submitted to the legal voters o f the county at the next ensu­
ing general election to be held therein, and if a majority o f the legal voters
voting at such election shall vote in favor of the establishment o f such a system
then it shall be established in said county pursuant to the conditions o f this
act. A resolution submitting such proposition to the legal voters o f the county
must be duly adopted by the county board by a majority vote thereof before
such proposition shall be so submitted. After having operated under such
system for one year or more any county may abandon such system by a major­
ity vote of the county board voting in favor of such abandonment.
Seo. 2 (as amended by Acts o f 1931, chs. 72 and 138). Persons entitled to
pension; amount.—Any person who shall comply with these provisions shall
be entitled to a pension while continuing to reside in the county in which
such pension is granted. The amount of such pension shall be fixed with due

56

PU B LIC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

regard to the conditions In each case, as herein provided, bnt in no case shall
it be an amount, which, when added to the income o f the applicant, including
income from property, as computed under the terms o f this act, shall exceed a
total of $1 per day.
Sec. 3. Conditions.— An old-age pension may be granted only to an applicant
who—

(1) Has attained the age o f 70 years or upwards.
(2) Has been a citizen of the United States for at least 15 years before
making application for a pension.
(3) Has resided in the State and county in which he makes application—
(a) Continuously for at least 15 years immediately preceding the date o f
application, but continuous residence in the State and county shall not be deemed
to have been interrupted by periods o f absence therefrom if the total o f such
periods does not exceed 3 years, or,
( b) Forty years, at least five o f which have immediately preceded the
application;
(c) Provided, That absence in the service of the State o f Minnesota or o f
the United States shall not be deemed to interrupt residence in the State or
county if domicile be not acquired outside the State or county.
(4) Is not at the date of making application an inmate of any prison, Jail,
workhouse, infirmary, insane asylum, or any other public correctional insti­
tution.
(5 ) During the period of 10 years immediately preceding such date has not
been imprisoned for a felony.
(6) I f a husband, has not, without just cause, failed to support his wife and
children under the age o f 15 years for 6 months or more during the 15 years
preceding the date of application.
(7) Has not, within one year preceding such application, been a habitual
tramp or beggar.
(8) Has no child or other responsible person under the law of this State
liable for his support and able to support him.
Sijc. 4. Persons not entitled to pension.— No old-age pension shall be granted
or paid to a person—

(1) While or during the time he is an inmate o f and receives the necessities
o f life from any charitable institution maintained by the State or any o f the
political subdivisions o f the State, or of a private charitable, benevolent or
fraternal institution, or home for the aged.
(2) I f the value of his property or the value of the combined property o f
husband and wife, living together, exceeds $3,000.
(3) Who has deprived himself, directly or indirectly, o f any property for the
purpose of qualifying for old-age relief.
Seo. 5. Computation o f income.— The annual income o f any property w hich
is not so utilized as to produce a reasonable income shall be computed at 5
per cent of its value.
S ec . 6. Amount deductible from estate.— On the death o f a person pensioned,
or on the death of the survivor of a married couple, both of whom were so
pensioned, the total amount paid as pension, together with simple interest at
3 per cent annually shall be allowed and deducted from the estate o f such
person or persons, by the court having jurisdiction to probate the estate. The
amount so recovered shall be paid into the treasuries o f the county, town, vil­
lage or city, in the proportion in which they respectively contributed toward
the total of the pensions received by the deceased or by the married couple o f
which the deceased was the survivor.
S eo. 7 (as amended by Acts o f 1931, ch. 138). Property transfer.— (1) I f the
board of county commissioners deems it necessary, it may require as a condition
to the grant of a pension certificate that all or any part o f the property o f an
applicant for a pension be transferred to the county. Such property shall be
managed by the board of county commissioners, which shall pay the net income
to the person or persons entitled thereto. The board shall have power to sell,
lease or transfer such property or defend and prosecute all suits concerning it
and to pay all just claims against it and do all other things necessary for the
protection, preservation, and management o f the property: Provided, That the
property acquired by the county under the provisions hereof shall be sold, leased
or transferred only in the manner provided by section 638, General Statutes 1923.
(2)
I f in the event that the pension is discontinued during the lifetime o f the
pensioner the property thus transferred to the board o f county commissioners

TE X T OF L A W S

57

exceeds the total amount paid as pensions with simple interest at 3 per cent
annually, the remainder o f such property shall be returned to the pensioner;
and in the event o f his death such remainder shall be considered as the property
of the pensioner for proper probate proceedings. The board of cdunty commis­
sioners shall execute and deliver all necessary instruments to give effect to this
subsection.
(3)
The county attorney at the request of the board of county commissioners
shall take the necessary proceedings and represent and advise the board in
any matters arising under this section.
S eo. 8 (as amended by Acts o f 1931, chs. 72 and 138). Applications.—An ap­
plicant for a pension shall file his application in writing with the county auditor
of the county in which he resides in such manner and form as shall be prescribed
by the county attorney. All statements in the application shall be sworn to or
affirmed by the applicant, setting forth that all facts are true in every material
point. Upon the filing of such an application, the board of county commissioners
shall make an order fixing a time and place for the hearing thereon, which hear­
ing shall be not sooner than 30 days after the making of such order. The
county auditor shall forthwith upon the making o f such order mail a copy of the
same and of the application to the clerk or recording officer o f the city, town, or
village of which the applicant is a resident; a like copy o f such order shall
be mailed to the applicant.
S eo. 9 (as amended by Acts of 1931, chs. 72 and 138). Investigation*.— The
board of county commissioners shall promptly make or cause to be made such
investigation as it may deem necessary. The board o f county commissioners
shall decide upon the application, and fix the amount of the pension, if any, and
such decisions shall be final: Provided, however, That in a county having a
board o f public welfare as authorized by chapter 371, Laws o f 1929, the board
of county commissioners may delegate to such board o f public welfare, subject
to the supervision of the board o f county commissioners, such investigation,
decisions upon the applications and fixing the amounts of the pensions, if a n y :
Provided, That in any county having a poor commission authorized to admin­
ister poor relief with all the powers o f the county board in counties, having
the county system of administering such poor relief, the said poor commission
shall make or cause to be made by competent authority, such investigations, de­
cisions upon applications for pension, and the fixing of the amounts of pension,
if any, to be awarded hereunder; all subject to the final approval o f said poor
commission by resolution and order duly entered in its records, before any
such pension shall be paid by the county auditor. In any such county where
such poor relief is administered by and u nder the su p erv ision o f said poor com­
mission, it shall be the duty of said poor commission, and its secretary or clerk,
to carry out the provisions o f this act with the same powers, duties and obliga­
tions as are herein vested in the board o f county commissioners and the county
auditor respectively, and for that purpose said poor commission shall have
authority to employ such additional assistance as shall be found necessary:
Provided further, That in any county having a poor commission, it shall be
the duty of the poor commission to designate the deputy clerks o f court at such
places where regular terms o f court are held in said county as clerks for the
purpose of accepting applications for such pension. It shall be the duty o f such
clerks of court to aid and assist the applicant in making out his application for
such pension: Provided further, That in a county having an official investi­
gator appointed as provided in section 8676, General Statutes 1923, the board of
county commissioners may delegate such investigation to such official investi­
gator subject to the supervision of the board of county commissioners. An ap­
plicant whose application for pension has been rejected, may not again apply
for a pension until the expiration o f 12 months from the date o f his previous
application.
Seo. 10 (as amended by Acts o f 1931, ch. 138). Certificates.— (1) The board
of county commissioners shall issue to each applicant to whom a pension is
allowed, a certificate stating the date upon which pension payments shall com­
mence and the amount of each installment, which may be monthly or quarterly,
as the board of county commissioners may decide.
(2)
Each pensioner shall file such reports with the board of county com­
missioners as the said board o f county commissioners may from time to time
require. I f it appears at any time that the applicant’s circumstances have
changed, the board o f county commissioners may revoke or modify any pension
certificate issued. Any pension paid in excess of the amount due shall be
returned to the county and may be recoverable as a debt due the county.

58

P U B LIC OLD-AGE PE N SIO N S IN T H E U N IT E D STATES

S eo. 11 (as amended by Acts o f 1931, ch. 138). Burial expenses.— On the
death o f a pensioner such reasonable funeral expenses for burial shall be paid to
such person as the board of county commissioners may decide: Provided, That
these expenses do not exceed $100: And provided further, That the estate o f
the deceased is insufficient to pay these expenses.
S ec . 12 (as amended by Acts of 1931, ch. 138). Other relief prohibited; far
capacity of pensioner.— (1) During the continuance of the pension no pensioner
shall receive any other relief from the State or from any political subdivision
thereof, except for medical and surgical assistance.
(2) I f the pensioner is, on the testimony o f at least three reputable wit­
nesses, found incapable o f taking care o f himself or his money, the board of
county commissioners may direct the payment of the installments of the pen­
sion to any responsible person or corporation for his benefit or may suspend
payment for such period as the board of county commissioners shall deem
advisable.
Sec. 13. ReUef inalienable.— A ll pensions shall be exempt from any tax levy

by the State or by any subdivision thereof, and exempt from levy and sale,
garnishment, attachment, or any other process whatsoever, and shall be in­
alienable in any form .
S ec . 14 (as amended by Acts of 1931, ch. 138). Revocation of certificate.— I f
at any time the board of county commissioners has reason to believe that a
pension certificate has been improperly obtained, the board of county com­
missioners shall cause special inquiry to be made and may suspend payment
of any Installment pending the inquiry. I f on inquiry it appears that the
certificate was improperly obtained, it shall be canceled, but if it appears that
the certificate was properly obtained, the suspended installments shall be pay­
able in due course.
Sec. 15. Fraudulent acts.— Any person who by means o f a w illfully false state­

ment or representation, or by impersonation, or other fraudulent device, ob­
tains, or attempts to obtain, or aids or abets any person to obtain—
(1 ) A pension certificate to which he is not entitled;
(2) A larger pension than that to which he is justly entitled;

(3) Payment of any forfeited installment grant;
(4 ) Or aids or abets in buying or in any way disposing o f the property o f
the pensioner without the consent o f the district judge
shall be guilty o f a misdemeanor.
Sec. 16 (as amended by Acts o f 1931, ch. 138). Fraudulent acts.— (1 ) A ny
person who violates any provision fo r which no penalty is specifically provided
shall be guilty o f a misdemeanor.

(2) Where a pensioner is convicted of an offense under this section the board
of county commissioners may cancel the certificate.
Seo. 17. Pensions withheld.— I f a pensioner is convicted o f any misdemeanor,
felony, or other offense punishable by imprisonment fo r one month or longer,
payments shall not be made during the period o f imprisonment.

Sew. 18 (as amended by Acts of 1931, chs. 72 and 138). Appropriation.— (1)
The county board of each county shall annually appropriate a sum o f money
sufficient to carry out the provisions of this act. Upon the orders of the board
of county commissioners, the county auditor shall draw his warrant on the
proper fund in accordance with said order of said board and the county
treasurer shall pay out the amounts ordered to be paid as pensions, under the
provisions o f this act.
(2)
Each city, town, and village shall reimburse the county for all amounts
of money paid in old-age pension to residents, except that such reimbursements
shall not be required for persons who have not been residents thereof for at
least five years. The county auditor shall make a report to the county board
at its annual meeting showing in detail the amounts which under this sub­
section are chargeable to each city, town, and village, and the county board at
such meeting shall determine the amount to be raised and paid by each city,
town, and village, to reimburse the county. The county auditor shall charge
the amount so determined to such city, town, or village, and shall certify the
same to the city, town, or village clerk. Each city, town, or village shall annually
levy a tax sufficient to meet such charges, which shall be collected as are other
taxes, and paid into the county treasurer [treasury]: Provided, The foregoing
provisions o f this subdivision shall not apply in counties operating under a
county system of caring for the poor. In any county where the commission

TEX T OF L A W S

59

system o f caring fo r the poor is in operation, all sums paid as pensions under
the law shall be paid out o f the revenue fund o f said county.
Seo. 19. Reports .— W ithin 30 days after the close o f each calendar year, the
county auditor o f each county shall make a report fo r the preceding year to
the board o f county commissioners stating—

(1) The amount paid for pensions and to whom and in what amount paid.
(2 ) The total number o f applications fo r pensions and the name o f each
applicant.

(3) The number granted, the number denied, the number canceled during
that year, the name of each applicant and such information as the board of
county commissioners may deem advisable.
Seo. 20 (as amended by Acts of 1931, chs. 72 and 138). Rules and regula­
tions.—The board of county commissioners shall from time to time prescribe and
promulgate rules and regulations to efficiently carry out the provisions o f this
act and shall publish such information as it may deem advisable to acquaint
aged persons and the public generally with the old-age pension plan o f this
State.
Seo. 20A (as added by Acts of 1931, ch. 138). Validated acts.—In every case
where any district court or district judge has heretofore made and entered
an order for the payment of a pension under the terms of chapter 47, Laws
of 1929, the same shall be and hereby is in all respects validated and confirmed
and shaJl continue as a valid order for a pension under the terms of said act
and the board of county commissioners or poor commission of the county in
which such order has been so entered shall continue to pay the pension granted
in accordance with the terms of said order, subject to the limitations and pro­
visions of chapter 47, laws of 1929, and until modified or revoked by said
county board or poor commission as provided by said chapter 47, Laws of
1929, as by this act amended.
(Approved and effective March 1, 1929.)

Montana
ACTS OF 1923
C h apter 72
S ection 1. Establishment of system.—There shall be established in each county
of the State of Montana a county old-age pension board hereinafter called the
old-age pension commission, and the boards o f county commissioners o f the
respective counties of the State of Montana are hereby designated as the oldage pension commissions of their respective counties and to serve as such
without any additional compensation.
Sec. 2. Duties of commission.— The old-age pension commission shall perform
all the duties imposed upon it by this act and shall have authority to make
such rules and regulations consistent with the provisions hereof as are neces­
sary to carry out the provisions of this act. The old-age pension commission
shall meet at such times and places as shall be fixed by its rules.
Sec. 3. Persons entitled.—Every person (man or woman, married or single)
shall, in the discretion of the old-age pension commission, while residing in the
State of Montana, be entitled to a pension in old age subject to the restrictions
and qualifications hereinafter noted.
Seo. 4. Amount.— The amount o f said pension shall be fixed by the old-age

pension commission with due regard to the conditions in each case; but in no
case shall it exceed $25 per month.
Seo. 5. Conditions.— An old-age pension may be granted only to an applicant
who—

(a) Has attained the age o f 70 years or upwards.
(&) Has been a citizen of the United States for at least 15 years before mak­
ing application for a pension.
(c)
Besides in the State o f Montana and has so resided continuously therein
for not less than 15 years immediately preceding the date of the application for
a pension: Provided, That continuous residence in the State shall not be deemed
to have been interrupted by occasional absence therefrom where the total pe­
riod of such absence does not exceed three years; or by absence from the State
while in the employ or service o f the State or of the United States: And pro83360*—32------5

60

PU B LIC OLD-AGE PEN SION S IN T H E U N IT E D STATES

vided further, That a person who has resided in the State of Montana 25 years
at least 5 of which have been immediately preceding the date of the applica­
tion shall be deemed qualified in respect to residence.
( d) That during the period of 10 years preceding such date of application
he has not been imprisoned for any offense punishable by imprisonment in the
State penitentiary.
(e) That the claimant, if a husband, has not during the period of 15 years
immediately preceding such date of application for a pension, for a period of
6 months or upwards, deserted his wife or without just cause failed to provide
for her with adequate means of maintenance or neglected to maintain and pro­
vide for such of his children as were under the age of 15 years; or if a wife, de­
serted her husband or such of her children as were under age without cause.
if) That he has not been, within one year preceding such application for
pension, a professional tramp or beggar.
S ec . 6. Income, etc., refunds.— The income o f the claimant from all sources
at the date of application for relief shall not exceed $300 per annum.
(a) The claimant must not have deprived himself or herself, directly or
indirectly, of any property for the purposes of qualifying for old-age relief.
(&) The aged person must have no child or any other person responsible
legally for the support of the aged person under the laws of the State of
Montana fully able to support the applicant.
(c)
At the death of the person to whom the pension is granted, or o f the
last survivor o f a married couple, the total amount o f the pension since the
first grant, together with 5 per cent o f interest shall be deducted and allowed by
the proper courts out o f the proceeds of his or her property as a preferred claim
against the estate of the person so assisted, and refunded to the county treasury
to the credit of the poor fund, leaving the balance for distribution among the
lawful heirs in accordance with la w ; Provided, That the old-age pension com­
mission may demand the assignment or transfer of such property upon the
first grant of such pension. The old-age pension commission shall establish such
rules and regulations regarding the care, transfer, management, and sale o f such
property as it deems advisable, and also provide for the return of the balance
o f the claimant’s property into its hands whenever the pension is withdrawn or
the claimant ceases to request it.
S ec . 7. Computation of income.—The annual income of any property inclusive
of a homestead, shall be computed at 5 per cent of its determined value.
(a) In ascertaining a claimant’s income and the amount o f pension, his
income for the last preceding year shall be deemed his annual income, and the
property owned at the end o f that year as his accumulated property: Provided,
That when the claimant shows to the satisfaction o f the old-age pension com­
mission the loss of personal income derived from personal earnings, it shall be
deducted from the income o f the preceding year in considering the amount o f
pension to be granted.
Sec . 8. Application.—A claimant for an old-age pension under this act shall
deliver his or her claim in writing to the old-age pension commission of the
county in which the claimant resides in the manner and form prescribed by the
old-age pension commission. All statements in the application shall be sworn
to or affirmed by the applicant setting forth that all facts are true and correct
in every material point.
S eo . 9. Certificate.—When the claim is established and the rate of the first
year’s old-age pension is fixed, the old-age pension commission shall in the
manner it may prescribe certify the same to the county treasurer o f such county
and shall issue to the claimant an old-age pension certificate which shall state
the date of issuance, the claimant’s name, age, residence, and the amount of
monthly payment, which certificate shall be good for one year unless sooner
revoked.
(a) The old-age pension certificate shall be required each subsequent year, to
be renewed after satisfactory investigation.
Sec. 10. Commencement of pension.—The old-age pension shall commence on
the date named in the certificate issued to the claimant by the county treasurer.
(a)
All old-age pensions shall be paid in monthly payments by county war­
rants drawn on the county treasurer and on the poor fund thereof.
Sec. 11. Cancellation of.—I f at any time during the currency or continuance
o f an old-age certificate, the recipient or the wife or husband of the recipient
becomes possessed o f any property or income in excess of the amount allowed
by law in respect to the amount o f pension granted, the old-age pension com­
mission may, on inquiry, either cancel the pension or vary the amount thereof

TEXT OF LAWS

61

during the period of the certificate, and it shall be the duty o f the recipient
immediately to notify the old-age pension commission of the receipt and
possession of such property or income.
(a) I f on the death of any recipient of an old-age pension, it is found that
he, or she, was possessed o f property in excess o f the amount allowed by law
in respect to the amount of pension granted, double the total amount o f the
relief granted in excess of that to which the recipient was by law entitled,
may be recovered by the old-age pension commission as preferred claim from
the estate so found in excess. The attorney general or county attorney shall
take the necessary proceedings to recover such claim and the amount recovered
shall be paid into the county treasury of such county.
S ec. 12. Burial expenses.— On the death of a recipient of old-age pension,
the installment then accuring [accruing] and such other reasonable funeral
expenses as are necessary for the burial of such person shall be paid to such
person as the old-age pension commission directs: Provided, That these expenses
do not exceed $100: And provided further, That the estate of the deceased is
insufficient to defray the expenses.
(a) It is provided, further, That these provisions for providing old-age pen­
sions shall not be construed as a vested right in the pensioners.
Seo. 13. Receiving of other aid.— During the continuance o f the old-age pen­
sion no recipient shall receive any other relief from the State or from any poli­
tical subdivision thereof except fo r medical and surgical assistance.
Sec. 14. Assignability of pension.— All old-age pensions shall be absolutely
inalienable by any assignment, sale, attachment, execution or otherwise, and
in case o f bankruptcy the old-age pension shall not pass to any trustee or other
persons acting on behalf o f creditors.
S ec . 15. Improperly obtained pension.—I f at any time the old-age pension
commission has reason to believe that any old-age pension certificate has been
improperly obtained, it shall cause special inquiry to be made by the county
attorney and may suspend payment o f any installment pending the inquiry.
If, on inquiry, it appears that the certificate was improperly obtained, it shall
be canceled by the old-age pension commission, but if it appears that the cer­
tificate was properly obtained, the suspended installment shall be payable in
due course.
Sec. 16. Violation.—Any person who by means of a willfully false statement
or representation, or by impersonation, or other fraudulent device, obtains, or
attempts to obtain, or aids or abets any other person to obtain—
(а) An old-age pension certificate to which he is not justly entitled.
(б ) A larger amount o f assistance than that to which he is justly entitled.
(c) Payment of any forfeited installment grant.
(d) Or aids and abets in the buying or in any way disposing of the property
of an old-age pension recipient without the consent of the old-age pension com­
mission, shall be guilty of a misdemeanor and upon conviction thereof shall be
sentenced to pay a fine of not exceeding $500 or to undergo imprisonment not
exceeding six months, or both.
Sec. 17. Same.— Any p e r s o n who violates any provisions o f this act for which

no penalty is specifically provided shall be subject to a fine o f not exceeding
$500 or to undergo imprisonment not exceeding six months, or both.

(a)
Where an old-age pension recipient is convicted of an offense under this
section, the old-age pension [commission] may cancel the pension certificate in
respect to the issue o f which the offense was committed.
Sec. 18. Conviction of crime.— I f any recipient under this act is convicted
of any crime, misdemeanor, or felony, or other offense, punishable by imprison­
ment for one month or longer period, the old-age pension commission shall
direct that payment be not made during such period. Furthermore, if the re­
cipient is found incapable o f taking care of his money or himself on the testi­
mony of reputable witnesses, the old-age pension commission may direct the
installment of his pension to be paid to any other reputable person for his
benefit or may suspend same for such period as it deems fit.
Sec. 19. Disqualification.— In case o f forfeiture of any old-age pension certifi­
cate the person whose pension is so forfeited shall be disqualified from making
any application fo r a new certificate until the expiration o f one year from the
date o f forfeiture.
Seo. 20. Appropriation.— The funds fo r the payment o f the old-age pensions
shall be furnished by the respective counties and all expenses incurred in the

62

P U B LIC OLD-AGE PENSION'S IN T H E U N ITED STATES

administration o f this act shall be paid from the funds o f the several counties
and paid by the county treasurer from the poor fund o f such county.
Seo . 21. Reports.—Within 90 days after the close o f the calendar year the
old-age pension commission o f each county shall make a report of the preceding
year to the State auditor of the State o f Montana stating:
(a) The total number of recipients.
(b ) The amount paid in cash.
(c) The total number of applications.
id) The number granted pension, the number denied, the number canceled
during the year and such other information as the State auditor may deem
advisable.
S eo. 22. Procedure.— All methods o f procedure in hearings, investigations, re­

cording, registration, and accounting pertaining to the old-age assistance under
this act shall be in accordance with the rules and regulations as laid down
from time to time by the old-age pension commission.
Seo. 23. Vested rights.— Every old-age pension granted under the provisions o f
this act shall be deemed to be granted and shall be held subject to the pro­
visions o f any amending or repealing act that may hereafter be passed and no
recipient under this act shall have any claim fo r compensation or otherwise
by reason o f his old-age pension being affected in any w ay by any such
amending or repealing act.
Seo. 24. Gender .— That wherever in this act the masculine pronoun is used,
it shall be held to include the feminine pronoun also.
Seo. 25. Title of act.— This act shall be named and cited as the old-age
pension act o f the State o f Montana.
Seo. 26. Acts repealed .— A ll acts or parts o f acts conflicting with the provi­
sions o f this act are hereby repealed.
Seo. 27. Effective date .— This act shall take effect from and after its passage
and approval by the governor.

(Approved March 5, 1923.)

Nevada
ACTS OF 1925
C hapter

121

S e c t i o n 1. Establishment o f system.— Subject to the provisions, and under
the restrictions contained in this act, every person, while residing in and being
a resident of the State of Nevada, shall be entitled to a pension in old age.
Sec. 2. County funds.— The board o f county commissioners, and all officers

having to do with the assessment o f property, and the collection o f taxes in
each o f the counties o f this State may, and 'they are hereby empowered and
authorized to, provide funds in an amount sufficient to carry out the provisions
and requirements o f this act.
Sec. 3. Rules , etc., by county board.— The board of county commissioners,
hereinafter referred to as “ the board,” shall have authority to make such
reasonable rules and regulations as may be necessary to carry out the provisions
o f this act, not in conflict herewith.
Seo. 4. Amount of pension.— The amount o f pension shall be fixed with due
regard to the conditions o f each case, but in no case shall it be an amount
which, when added to the income o f the applicant, including income from
property as computed under the terms o f this act, shall exceed a total o f $1 a
day.
Sec. 5. Conditions.—An old-age pension may be granted to an applicant
who—

(a) Has attained the age o f 65 years or upwards.
( b) Has been a citizen of the United States for at least 15 years before
making application for a pension, and residing actually, corporeally and physi­
cally in the State of Nevada for a period of 10 years from and preceding the
application for pension.
(c) Is not, at the date o f making application, an inmate of any prison, jail,
workhouse, insane asylum, or any other public reform or correctional insti­
tution.
(d) For six months or more, during the 10 years preceding the date of
application for relief, if a husband, has not deserted his wife, or, without just

TEX T OF LA W S

63

cause, failed to support her and his children under the age of 15 years; if a
wife, has not deserted her husband, or, without just cause, failed to support
such of her children as were under age and she was bound to support.
( e ) Has not, within one year preceding such application for pension, been a
professional tramp or beggar.
(f ) Has no child or other person responsible under the law of this State for
his or her support, and found by the board to be able to support him or her.
Sec. 6. Persons not entitled to aid.— ( a) An old-age pension shall not be
granted to a person if the value of his or her property exceeds $8,000, or, if
married and not separated from husband or wife, if the value o f his or her
property, together with that o f such husband or wife exceeds $3,000.
(6 ). The claimant must not have deprived himself or herself, directly or
indirectly, of any property for the purpose of qualifying for old-age relief.
S ec . 7. Computation of income.—The annual income of any property which
does not produce a reasonable income shall be computed at 5 per cent of its
value as determined by the board.
S ec. 8. Amount deductible from estate.— (a) On the death of a person pen­
sioned under this act, or of the survivor of a married couple, both of whom were
so pensioned, the total amount paid as pensions, together with simple interest
at the rate of 3 per cent per annum, shall be allowed and deducted from the
estate by the court having jurisdiction to settle the estate, and paid into the
treasury of the county, and placed in the old-age pension fund.
(6)
I f the board deems it necessary to protect the interest of the county,
it may require as a condition to the granting o f a pension certificate that all
or any part of the property of the applicant for a pension be transferred to the
board. Such property shall be managed by the board, which shall pay the net
income therefrom to the person or persons entitled thereto. The board shall
have power to sell, lease, or transfer such property, or defend and prosecute all
suits concerning it, and to pay all just claims against it, and to do all other
things necessary for the protection, preservation, and management of the
property.
(c) The district attorney, at the request of the board, shall take all necessary
proceedings and represent and advise the board in respect to any matters aris­
ing under this section without any additional remuneration.
S ec. 9. Application.—All applicants for pensions under the provisions of this
act shall file with the clerk of the board of county commissioners a statement
verified under oath covering all of the facts set forth in sections 5, 6, and 7
hereof, and the board o f county commisisoners shall set a time when a hearing
on said application shall be had, and the applicant shall have the right to appear
at such hearing, either in person or by attorney, or both, and present the
testimony of witnesses and such other evidence as shall be material to such
application. The board shall make its investigation, hold a hearing on such
application, and either grant or reject the same within 60 days from the filing
thereof. The applicant shall be given at least 10 days’ notice of the time and
place of the hearing on any application, under the provisions of this section.
Sec. 10. Assistance of district attorney.— The district attorney shall be present
and advise and assist the board in making investigations and conducting
hearings.
S ec . 11. Record of hearings.—Upon the hearing the board shall cause to be
entered upon its records an order granting or rejecting the application, and, if
the application is rejected, the order shall contain the reasons for its rejection.
For the purpose o f any investigation, or hearing, the board shall have the
power to compel, by subpoena, the attendance and testimony of witnesses, and
the production of books and papers. All witnesses shall be examined on oath,
and any member of the board may administer such oath.
Seo. 12. Certificates.—The board shall issue to each applicant to whom a
pension is allowed a certificate, which shall be in full force and effect until
the further order of the board, stating the amount o f each installment, which
may be monthly or quarterly, as the board may decide. The amount o f the
pension may be changed if the board finds that the applicant’s circumstances
have changed.
Sec. 13. Bonarfide resident— (a) The pension, if allowed, shall commence on
the date the application was granted.
(&) No pension shall be paid under the provisions o f this act unless the appli­
cant is, at the time o f making application and during all the times when same is
being paid, an actual and bona-fide resident of the State o f Nevada and actually,

64

l-l.'B U O OLD-AGE PEN SIONS IN T H E U N ITED STATES

corporeally and physically present within the confines of said State ol! Nevada
during all such times.
Seo. 14. Reporting of excess income.— (a) If at any time, during the currency
or continuance of an old-age pension certificate, the recipient or the wife or the
husband of the recipient becomes possessed of any property or income in excess
of the amount allowed by law in respect to the amount of pension granted, it
shall be the duty of the recipient to immediately notify the board of the receipt
and possession of any such property or income, and the board may, on inquiry,
either cancel the pension, or vary the amount thereof, during the continuance of
such certificate, and any excess pension paid shall be returned to the treasury
of the county, and shall be recoverable as a debt due to the county.
(&) If, on the death of any pensioner, it is found that he was possessed of
property or income in excess of the amount allowed by law, in respect to the
amount of the pension, double the total amount of the pension in excess of
that to which the recipient was by law entitled may be recovered by the board
as a preferred claim from his estate, and paid into the treasury of the county,
and placed in the old-age pension fund.
Seo. 15. Burial expenses.— On the death of a pensioner, such reasonable
funeral expenses for burial shall be paid to such person as the board directs:
Provided, That these expenses do not exceed $100: And provided further, That
the estate of the deceased is insufficient to defray these expenses.
Seo. 16. Incapacity of pensioner.— (a) While a pensioner is an inmate of
any charitable, benevolent or fraternal institution within the State o f Nevada
the amount of the pension shall be paid to the governing authorities of that
institution, and shall be applied toward defraying the actual expenses o f such
persons in such institution: Provided, That the board has approved, and that
it and its agents are permitted freely to visit and inspect said institution: And
provided further, That any money remaining after defraying such costs shall
be paid to the recipient. It shall not be lawful, however, for the authorities
o f any charitable institution receiving public moneys to refuse admission as an
inmate of such institution, or to refuse relief on the ground that the person is
a pensioner under this act.
(b) During the continuance of the pension, no pensioner shall receive any
other relief from the State of Nevada, or from any political subdivision thereof,
except for medical and surgical assistance.
(c) I f the pensioner is, on the testimony of at least three reputable wit­
nesses, found incapable of taking care o f himself or his money, the board may
direct the payments o f the installments of the pension to be made to any re­
sponsible person or corporation for his benefit. It shall be within the power
of the board, for reasonable cause shown, to suspend payment for such period
as the board may deem proper.
S ec. 17. Belief inalienable.— A ll pensions shall be absolutely inalienable by
any assignment, sale, execution or otherwise, and in case o f bankruptcy the
pension shall not pass through any trustee or other person acting on behalf o f
the creditors.

Seo. 18. Improperly obtained certificate.— If at any time the board has
reason to believe that a pension certificate has been improperly obtained, it
shall cause special inquiry to be made, and may suspend payment of any or all
installments pending the inquiry. If, on inquiry, it appears that the certifi­
cate was improperly obtained, it shall be canceled; but if it appears that the
certificate was properly obtained the suspended installments shall be payable in
due course.
Sec. 19. Fraudulent act.— Any person, who by means o f a w illfu l false state­
ment or representation, or by impersonation, or other fraudulent device, ob­
tains, or attempts to obtain, or aids or abets any person to obtain—
1

{a) A pension certificate to which he is not entitled.
(&) A larger pension than that to which he is justly entitled.
(c) Payment o f any forfeited installment.
(<Z) Or aids or abets in buying, or in any disposition o f the property o f a
pensioner without the consent of the board, shall be guilty o f a misdemeanor,
and, upon conviction thereof, shall be sentenced to pay a fine not exceeding
$500, or undergo imprisonment not exceeding one year, or both such fine and
imprisonment, in the discretion of the court.
Sec. 20. Violations.— (a ) Any person who violates any of the provisions of
this act for which no penalty is specifically provided shall be subject to a
fine not exceeding $500, or to undergo imprisonment not exceeding one year,
or both, in the discretion of the court.

T E X T OF LA W S

65

(&) Where a pensioner is convicted of an offense under the provisions of
this act, the board shall cancel his certificate.
Sec. 21. Pensions withheld .— I f any pensioner is convicted o f any crime,
misdemeanor, felony, or other offense, punishable by imprisonment fo r one
month or longer the board shall direct that payment shall not be made during
the period o f imprisonment.
Sec. 22. Bight of appeal.— In each case where an old-age pension has been
allowed, refused or suspended, under the provisions o f this act, by the board
o f county commissioners, an appeal may be taken to the district court from
such decision by the applicant or by any tax-paying citizen, and such appeal
shall be subject to the rules o f procedure as in the case o f appeal from the
justice court.
Sec. 23. No vested right.—Every pension granted under the provisions of

this act shall be deemed to be granted and shall
visions of any amended or repealing act that may
recipient under this act shall have any claim for
by reason of his pension being affected in any
repealing act.
Sec. 24. Gender.— That wherever used in this

be held subject to the pro­
hereafter be passed, and no
compensation, or otherwise,
way by such amending or

act the masculine gender
shall include the feminine.
Sec. 25. Title of act.— This act may be cited as the “ old-age pension a c t ”
o f the State o f Nevada.
Seo. 26. Reports.—Within 30 days after the close of each calendar year,

the board of county commissioners of each and every county in this State
shall, through its clerk, make a report to the governor of the State, covering
fully the administration and operation of this act for the preceding year,
and shall particularly state therein:
(a) The total number of pensioners under this act.
(&) The total amount of cash paid out under its provisions, segregating
therein the amounts paid out for pensions and the amount paid for expenses
of administration.
(o) The total number of applications received during the year; and,
(d)
The number granted, the number denied, the number canceled during
the year, and such other and further information in regard to the operation
of the law as the governor may request.
Sec. 27. Void sections.—Each section of this act and every part of each
section are hereby declared to be independent sections and parts of sections,
and the holding of any section or part thereof to be void and ineffective
for any cause shall not be deemed to affect nor shall it affect any other section
or any part thereof.
Sec. 28. Construction of act.—This act shall be considered an act addi­
tional to all acts respecting poor persons and particularly an act entitled
“ an act for the support of the poor,” approved November 29, 1861, and shall
be construed as an exercise of power by the legislature under the provisions of
section 3 of article 13, Constitution of Nevada, in recognization [recognition]
of the just claims of the inhabitants mentioned upon the aid of society, with­
out thereby annexing the stigma of pauperism by legal definition.
(Approved March 18, 1925.)

New Hampshire
ACTS OF 1931
C h apter 165

Section 1. Establishment o f system.— For the more humane care and relief
of aged and dependent persons, a system of assistance is hereby established.
Such assistance shall be administered in each county by the county commis­
sioners as hereinafter provided, and the cost of such assistance, together with
the expense occasioned thereby, shall in the first instance be paid by the
county; but the county shall be reimbursed by each city or town legally charge­
able for such assistance rendered, together with the expense occasioned thereby.
Sec. 2. To whom applicable.—Old-age relief or assistance shall be given to
any person of the age of 70 years, who (a) is unable to support himself and has
no children or other persons of sufficient ability to pay and responsible for his
support under the laws of New Hampshire; (6) has been a citizen o f the

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PU B LIC OLD-AGE PEN SIO N S IJT T H E UN ITED STATES

United States for at least 15 years before making application for old-age
assistance; (c) has be^n a resident of the particular county in which he makes
application, for at least 15 years immediately preceding his application for
relief, but continuous residence shall not be deemed to be interrupted by periods
of absence therefrom if the total of such periods does not exceed three years:
Provided, Such applicant shall not have gained a legal residence out of the
State during the year previous to such application; and absence in military
service of the State or of the United States shall not be deemed to interrupt
residence in this State or any county thereof unless a domicile is acquired
outside the State or county.
Seo. 3. Persons excluded from act.— Such assistance shall not be granted
or paid to a person: (a ) While an inmate of, or receiving the necessities of life
from any charitable institution, maintained by the State or any of its political
subdivisions, or of a private, charitable, benevolent, or fraternal institution,
or home for the aged, except in the case of temporary medical or surgical
care in a hospital; (&) if on account o f his physical or mental condition he is
in need of continued institutional care; (c) if the value of his property, or the
value of the combined property, o f husband and wife living together, exceeds
$2,000; (d) who has deprived himself directly or indirectly of any property
for the purpose o f qualifying for old-age assistance; (e) who is at the time o f
making application or later an inmate of any prison, jail, or workhouse,
infirmary, insane asylum, or other public correctional institution; (f ) who
during the period o f 10 years immediately preceding such date has been
imprisoned for a felony; (g) who (if a husband) has without just cause
failed to support his wife and children under the age of 16 years for 6 months
or more during the 10 years preceding the date of application for old-age as­
sistance; (h) who has within one year preceding said application for such
assistance been a habitual tramp, beggar, or drunkard.
Seo. 4. Transfer of property.— The county commissioners may require as a
condition to the granting o f such assistance, that all or any part o f the prop­
erty o f an applicant be transferred to the commissioners o f such county as
trustees and such property shall be managed by said commissioners as trus­
tees aforesaid, who shall pay the net income to the person or persons entitled
thereto, after deducting all necessary expenses incurred in the management
thereof. As trustees they shall have the power to sell, lease, or transfer such
property or defend and prosecute all suits covering it, and to do all other
things necessary for the protection, preservation, and management o f the
property.

Sec. 5. Promulgation of regulations.—The commissioners shall from time
to time prescribe and promulgate rules and regulations necessary for the carry­
ing out of the provisions of this act to the end that such relief may be extended
in a humane and efficient manner. They shall make investigations and deci­
sions as to the amount to be granted, if any, and their decision shall be final.
Any applicant shall be entitled to a hearing and opportunity to present evidence
before any decision becomes effective, provided he files a petition for hearing
with the commissioners within 14 days after the date of application for aid.
The commissioners shall fix the date of any such hearing to be within seven
days after the petition is filed and notify the applicant and the applicant’s
guardian, if any, o f the time and place of hearing. The decision of the com­
missioners shall be made 14 days from the date of application or earlier, if
no hearing is asked, or within 7 days after the date of final hearing if hearing
has been asked. Any applicant whose application has been rejected or allow­
ance suspended or discontinued may not again apply for assistance until the
expiration of 6 months from the date of his previous application or discon­
tinuance. The commissioners shall also notify the selectmen o f any town, or
overseer of the poor or city clerk of any city in which such applicant resides,
o f any application for aid and shall give notice to such town or city official of
the time and place of any hearing and of any decision rendered. Any regula­
tions made by them shall be in addition to but not inconsistent with the fol­
lowing :
(a) Application.—An applicant must file written statement under oath, on
forms prescribed by the commissioners, to the truth of all facts required.
(b) Amount of aid.—The amount to which any person shall be entitled shall
be fixed with due regard to the conditions existing but in no event shall exceed
when added to the income o f the applicant from all other sources, the sum o f
$7.50 per week.

TEX T OF LA W S

67

(c )
Certificate.—The commissioners shall issue to each applicant to whom
such assistance is allowed a certificate stating the date upon which payments
shall commence and the date and amount of each installment, which shall
be weekly or monthly; and shall require reports from the beneficiary at such
times and in such manner as the commissioners shall determine.
($) Burial expenses.— On the death of the beneficiary such reasonable
funeral expenses for burial shall be paid to such person as the commissioners
may direct: Provided, That the expenses do not exceed $125: And provided
further, That the estate o f the deceased is insufficient to defray said expenses.
(e )
Aid exclusive.—During the continuance of such assistance no beneficiary
shall receive any other relief from the State or from any political subdivision
thereof, excepting medical and surgical assistance, and the acceptance of such
relief shall operate as a revocation of assistance under this chapter.
if) Payment to guardian.— If the beneficiary on the testimony o f at least
three disinterested and reputable witnesses, is found incapable of taking care
o f himself or his money, the county commissioners may direct payment of the
installments of such assistance to any responsible person, guardian or corpora­
tion for his benefit, or may suspend payment for such period as shall be deemed
advisable.
(g) Exemption from attachment.— Such assistance shall be exempt from
attachments under chapter 332 o f the Public Laws and from any tax levy of
the State.
(h) Revocation of aid.— Such assistance shall be revoked if a beneficiary
is convicted of any criminal offense or suspended or revoked if he fails to comply
with the terms of this act but shall be paid in due course if it appears that
such conviction was improperly obtained.
Sec. 6. Repayment of aid.— The administrator of the estate of any person
assisted under the provisions of this act shall pay as a debt of the estate to
the county, town, or city entitled thereto any sum paid for assistance to the
person or such person’s husband or wife together with 4 per cent interest, or
such part thereof as the funds o f the estate will permit, and any insurance
payable to the estate shall be subject to a lien therefor and for funeral ex­
penses not to exceed $125. I f the insured leaves dependents who may become
public charges, the county commissioners, as trustees, are authorized to waive
any such claim in behalf of the county, city, or town entitled thereto. I f the
property transferred to the county commissioners as provided by section 4
exceeds the total amount of assistance rendered, with simple interest at 4 per
cent, the remainder of such property or the proceeds thereof shall be returned
to the beneficiary or his estate after the death of the beneficiary or the dis­
continuance of such assistance. The county commissioners, as trustees, are
authorized to execute and deliver whatever instruments are necessary therefor.
Sec. 7. Legal counsel.— The attorney general or the county solicitor, at the
request o f the county commissioners, shall bring all necessary proceedings and
represent and advise said officials in respect to any matters arising under
this act.
Sec. 8. Violations.—Any person who, by means of willfully false statements

or representation, or other fraud, attempts to obtain or aids any person in
obtaining any assistance to which he is not entitled or in disposing of property
of the beneficiary without the consent o f the commissioners, or who violates
any other provision of this act shall be fined not exceeding $500 or imprisoned
not; exceeding one year or both.
Sec. 9. Disbursements.— Unless otherwise arranged with the proper officials
o f towns and State, the county treasurer shall pay the money as ordered by the
commissioners. Town and State officials whose duty it is to furnish assistance
to those in need are hereby authorized to make such agreements with the com­
missioners as shall make the purposes of this act effective.
Seo. 10. Keeping of records.—All records, papers and other documents per­
taining in any way to such assistance shall be maintained in a suitable and
proper manner by said commissioners, who shall retain the same in their cus­
tody, and which may be opened to inspection by any person interested at any
time.
Sec. 11. Reports.—On or before the first day o f February in each year, the
commissioners of each county shall make a written report for the preceding
year to the mayor and city council of each city, and to the board of selectmen
o f each town to residents of which assistance has been rendered, said report
to contain: (a) The total number o f applications for assistance; (b) the amount
paid out as assistance; (c) the total number granted, the number denied, the

68

PU B LIC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

number canceled, the number chargeable to the county, and to each city and
town, and such other information as may be deemed advisable. The names
of those receiving assistance shall not be printed but such amounts shall be
stated generally in any printed reports of town, county, or State, together with
such other information as may be deemed useful for the information of the
public.
S ec . 12. Annual audit.—The accounts of the commissioners as affected by
the provisions of this act shall be examined and audited annually by the
auditors of each county.
Seo. 13. Beneficiary's right to select.—No beneficiary shall be prevented
from choosing the assistance provided by chapters 105, 106, and 107 o f the
Public Laws or other laws of this State, in lieu of the assistance provided by
this chapter. No one receiving assistance under this chapter shall lose his
settlement while receiving such assistance.
(Approved May 7, 1931; effective September 1, 1931.)

New Jersey
ACTS OF 1931
C hapter 219
S ection 1. Persons entitled to relief.— Subject to the provisions of this act,
every deserving poor person, residing in the State o f New Jersey, 70 years
of age or upwards, shall, while in the State of New Jersey be entitled to
relief in old age from the State.
S eo. 2. Conditions.— Old-age relief shall be granted under this act to any
person who—
(a) Has attained the age of 70 years.
(&) Is unable to maintain himself, either in whole or in part, and has no
children or other persons able to support him or responsible under the laws o f
this State for his support.
(c ) Is a citizen of the United States.
(d) Is a resident of and domiciled in the State of New Jersey, and has so
resided and been domiciled therein continuously for at least 15 years immedi­
ately preceding the date of application, but continuous residence in the State
shall not be deemed to have been interrupted by occasional periods of absence
therefrom if the total of such periods of absence does not exceed 2 years, and
during the 5 years immediately preceding the date of application has not
removed from this State and remained therefrom for a period in the aggregate
of 1 year.
(e) Is a resident of and domiciled in the county in which the application
is made, and has so resided continuously for at least one year immediately
preceding the date o f application and has a legal settlement in a county o f the
State.
(f) Is not, because of his physical or mental condition, in need of continued
institutional care.
(g) Has not made a voluntary assignment or transfer o f property for the
purpose o f qualifying for such relief.
(h) Has never been convicted of a felony or high misdemeanor.
(i) I f any recipient of old-age relief is convicted o f any misdemeanor, or
other offense, and punished by imprisonment, payments shall not be made
during the period of imprisonment.
( ;) Does not possess real or personal property in excess o f $3,000.
S ec. 3. Agency created—There is hereby created in the department o f institu­
tions and agencies, in accordance with the provisions of chapter 76, Laws of
1921, a division to be known as the division of old-age relief. The division of
old-age relief shall be in charge of a qualified expert who shall be appointed by
and receive the compensation fixed by the commissioner, with the approval of
the State board, subject to appropriations made therefor. As chief o f the
division of old-age relief, such qualified expert shall be responsible for the
investigation, determination and supervision of old-age relief furnished under
this act. Said division of old-age relief shall prescribe a uniform system of
records and accounts in relation to old-age relief to be kept by the county
welfare board, and shall supervise the administration of old-age relief by said
county welfare board to the end that there may be throughout the State a

T E X T OF LAW S

69

uniform standard of record and method of treatment of aged poor persons, based
upon their individual needs and circumstances. The division of old-age relief
shall have the power to and shall prescribe a form of application, the manner
and form of all reports and such additional rules and regulations as are
necessary for the carrying out of the provisions of this act, subject to the
approval of the commissioner. All rules and regulations made by the division
of old-age relief under this act shall be binding upon the county welfare boards
as the county bureaus of old-age relief throughout the State.
Sec. 4. County agency.—In any county in this State in which there now is
or may hereafter be established a county welfare board said county welfare
board, in addition to their other powersi and duties in relation to the settlement
and relief of the poor, as provided by law, shall constitute the county bureau
of old-age relief, and in each and every other county until such time as a
county welfare board is established therein a county welfare board (for the
supervision of old-age relief) shall be appointed by the board o f chosen free­
holders and constituted and composed as follow s: Five citizens o f each said
respective county and not holding the office of freeholder, at least two o f whom
shall be women, to be appointed by the board of chosen freeholders, who, with
two designated members o f the board of chosen freeholders and the county
adjuster, when not serving as director of old-age relief, as ex-officio members
shall constitute the county welfare board. Members shall hold their offices
for five years, except that the first appointments shall be respectively for
one, two, three, four, and five years, which terms as to duration shall be in the
order o f appointments as made and indicated. Vacancies in such offices shall
be filled for the unexpired term only. The holding of any other office by any
member o f said county welfare board shall not constitute such holding as
incompatible with his office as member of such county welfare board. They
shall meet regularly once each month, and such other times as may be necessary
or as they may by rule provide; They shall receive no compensation for their
services, but shall be allowed their actual and necessary expenses, on the
approval of the director o f the board o f chosen freeholders, all of which shall
be audited and paid in the same manner as other expenses are paid in and for
such county. Said county welfare boards are hereby authorized and empowered
and it shall be their duty to receive and act upon applications for relief under
and in accordance with this act, and to do all other acts and things necessary
in connection with the same, for the purpose o f administering and carrying
out the provisions o f this act, as herein provided. Funds for the administra­
tion of this act, and the payment of old-age relief granted, thereunder, shall be
provided by the board of chosen freeholders o f each and every county as here­
inafter provided. Said county welfare board shall elect from among its mem­
bers a president, vice president, and secretary-treasurer. The director of oldage relief appointed as herein provided shall not be a member of the board,
and shall hold office for the term of five years or until appointment of his
successor, unless sooner removed for cause, after due notice and hearing. Said
county welfare board shall appoint such other officers, assistants, and employees
as may be necessary to carry out the provisions o f this act. They shall fix
the salaries of the director o f old-age relief and such officers, assistants, and
employees within the limits o f the appropriation made therefor by the board of
chosen freeholders, and such salaries shall be compensation in full for all
services rendered. The director of old-age relief, officers, assistants, and
employees shall be subject to such rules and regulations in the discharge o f
their duties as may be provided by said county welfare board. All employees
of the county welfare board shall hold their office or employment during good
behavior, and may be removed upon written charges and after a hearing, due
notice of which shall be given therefor by the county welfare board, for miscon­
duct, neglect, or incompetency.
Seo. 5. Appointment of director.— Said county welfare board shall appoint,
subject to the approval o f the board of chosen freeholders, a director of old-age
relief, who shall have the qualifications as herein provided. The county adjuster
when qualified may be appointed for this office, but when so appointed shall
not serve as an ex-officio member of the county welfare board.
The director o f welfare shall be the clerk of said bureau of old-age relief
and shall serve as such without additional compensation.
The director of old-age relief shall be a citizen of the State and of the United
States; such appointee shall be able to read and write the English language,
and be capable of making and keeping such records and reports as are lawfully
i equired of him, and shall have complete knowledge of the laws concerning old-

70

PU B LIC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

age relief and shall be a trained and qualified expert in the field of welfare
service, with administrative experience therein; the county welfare board may
appoint a deputy director of old-age relief, who shall have resided at least one
year in the State, and have other like qualifications as those necessary to the
appointment o f directors of old-age relief, and be under the direction of such
director of old-age relief, and be vested on approval of the county welfare
board with the same power as a director of old-age relief in the distribution of
relief, with like authority for the prosecution or defense in court proceedings
as is now vested in a director of old-age relief.
Sec. 6. Providing for relief.—It shall be the duty of the county welfare board
as the bureau of old-age relief to provide adequately for those eligible for oldage relief under the provisions of this act. The amount and nature of relief
which any such person shall receive, and the manner of providing it, shall be
determined by the county welfare board as the bureau of old-age relief with due
regard to the conditions existing in each case, in accordance with the rules and
regulations made by the division of old-age relief, but in no case shall it exceed
the rate of $1 a day. Whenever practicable relief may be granted in the form
of cash or a check. The relief granted under this act shall be provided for the
recipient in his own or some other suitable family home: Provided, That the
county in which such person has a legal settlement shall be chargeable for the
relief provided for in this a ct: And be it further provided, That where it ap­
pears that the legal settlement of the applicant is in a county other than the
one in which the application is made, it shall be referred to the county adjuster,
who shall refer it to the county in which the legal settlement of the applicant
appears to be, and the said county adjuster shall proceed in the same way and
manner to obtain the consent o f the said county to accept the chargeability for
the said applicant for old-age relief as is provided for in an act entitled “An act
concerning the charitable, correctional, reformatory and penal institutions,
boards and commissions, located and conducted in this State which are sup­
ported in whole or in part from county, municipal, or State funds,” approved
February 28, 1918, and the various amendments and supplements thereto. In
the event, however, the said counties can not agree as to the legal settlement of
the said applicant, then it shall be referred to the court having jurisdiction, in the
county wherein the application was made for a judicial finding as to legal set­
tlement in accordance with the procedure provided for in the said act afore­
mentioned and the said judicial finding shall be binding upon both counties.
Sec. T. Property transfer.—I f any county bureau o f old-age relief shall deem
it necessary, it may, with the consent of the division of old-age relief, require
as a condition to the grant of continuance of relief in any case, that all or any
part of the property, either real or personal, of a person applying for relief be
transferred to said county upon the order of the court of common pleas. Such
property shall be managed by said county bureau of old-age relief under the
direction of the board of chosen freeholders, which shall pay the net income
thereof to such person; said bureau of old-age relief under the direction of the
board of chosen freeholders shall have the power to sell, lease, or transfer such
property or defend and prosecute all suits concerning it and to pay all just claims
against it and do all things necessary for the protection, preservation, and
management thereof. If, in the event such relief is discontinued during the
lifetime of such person, the property thus transferred to the county bureau of
old-age relief exceeds the total amount paid as relief under this act, the
remainder of such property shall be returned to such person, and in the event o f
his death such remainder shall be considered as the property of the deceased for
proper administration proceedings. The county bureau of old-age relief shall
execute and deliver all instruments necessary to give effect to this section.
Sec. 8. Burial expenses.—If, on the death of the recipient of old-age relief, it
shall appear to the satisfaction of the county welfare board as the bureau o f
old-age relief that his estate is insufficient to pay his funeral expenses, the
county welfare board shall have the power to order the payment of the install­
ment o f old-age relief then accruing and such additional sum as may be neces­
sary, not exceeding the total sum of $100, to such person as the county welfare
board may direct for the funeral expenses o f the deceased aged poor person.
Sec. 9. Appropriation by county.— Subject to partial reimbursement by the
State, as hereinafter provided, each county welfare board shall furnish oldage relief provided for in this act to the persons eligible thereto who reside in
its jurisdiction. Each board of chosen freeholders shall annually appropriate
and make available to the order of the respective county welfare boards as
the bureaus o f old-age relief such a sum as may be needed for old-age relief,

TEX T OF L A W S

71

together with a sufficient sum to defray administrative expenses to be incurred
in connection therewith and include such sums in the taxes to be levied in the
territory responsible for such old-age relief. Should the sum so appropriated,
however, be expended or exhausted during the year and for the purpose for
which it was appropriated, additional sums shall be appropriated by such board
of chosen freeholders as occasion demands to carry out the provisions o f this
act from funds in the county treasury available therefor. Where such county
funds are not available or adequate, or should there be no such county funds,
such additional sums shall be raised by temporary loans or notes, certificates
of indebtedness, or temporary loan bonds, to be issued as otherwise provided
and limited by law for counties o f this State, and the amounts necessary to
pay such obligations shall be placed in the budget for the next ensuing fiscal
year.
S ec . 10. Reimbursement by the State.— The State shall reimburse each county
to the extent of three-fourths of the amount expended for relief for each aged
poor person which has been granted under the provisions o f this act and in
accordance with the rules of the division of old-age relief.
Seo. 11. Claims for same.— Claims for reimbursement under this act shall be
presented quarterly by the board of chosen freeholders of the respective counties
through the division of old-age relief to the comptroller o f the treasury in
January, March, July, and September.
S ec. 12. Approval o f same.— The approval o f such claims for said reimburse­
ment shall be made by the division o f old-age relief to the extent of threefourths of the payments made in accordance with the provisions of this act and
the rules of the division of old-age relief. The division of old-age relief shall
certify to the comptroller of the treasury the amount to which each county
is entitled. The amount so certified shall be paid from the State treasury upon
the audit and warrant of the comptroller to the fiscal officers of the respective
counties entitled thereto from moneys made available as hereinafter provided.
S ec. 13. Appropriation by State.—The governor shall fix and determine and
state in his annual budget message a sum sufficient to pay the estimated amount
of the State’s share of the old-age relief reimbursement, together with any
deficiencies, if any, incurred in any previous year. The legislature shall include
the amount so determined and stated in the annual appropriation bill. For the
payment of said amount there is hereby dedicated annually so much of the
moneys received under the provisions of an act entitled “ An act to tax the
transfer of property of residents and nonresident decedents, by demise, bequest,
descent, distribution by statute, gift, deed, grant, bargain and sell, in certain
cases,” approved April 20, 1909, and the several supplements and amendments
thereto hereinafter collectively referred to as the inheritance tax.
S eo. 14. Inheritance tax revenue.—For the payment of the State’s share of
old-age relief as herein provided, there is hereby further dedicated all moneys
hereafter received by the State treasurer pursuant to the aforesaid inheritance
tax after deducting therefrom annually (1) the amount annually determined
and stated by the governor as aforesaid, and (2) the sum of $12,000,000 per
annum which is hereby reserved for the general treasury funds of the State.
The surplus, if any, then remaining and thus dedicated shall constitute a sep­
arate fund which shall be invested and reinvested from time to time by the
statehouse commission in such securities as are lawful for investment by
trustees. The custody o f said fund and the income thereof shall be entrusted
to the State treasurer. The income from said fund shall be available for and
devoted to the payment o f the State old-age relief as provided in this act and
shall, to the extent thereof, be used for the payment of such relief in lieu of
the moneys to be annually determined and stated by the governor as aforesaid.
For this purpose the governor shall include in his budget message such a state­
ment of income and the same shall be deducted from mandatory appropriation
by the legislature as aforesaid: Provided, however, That if the income from
the said fund hereby created shall be sufficient to wholly defray the State’s
share of old-age relief, then such income shall be used for that purpose in the
first instance and any excess thereof shall become a part o f the corpus o f said
fund.
S ec . 15. Legislative intent.— It is the intent o f the legislature that the State’s
share of old-age relief, as provided in this act, shall be provided from the
revenue produced by the inheritance tax, and that the first moneys received in
any one year from that source shall be dedicated to that purpose, and that
after sufficient funds have been so accumulated then the sum o f $12,000,000,
i f so much further shall be received, shall be available for appropriations to

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PFBT.TC OT JV AOE PEN SIONS IN T H E U N IT E D STATES

general State purposes, and that any surplus of inheritance tax revenue then
remaining shall become a capital fund to be invested as herein provided, the
income from which shall be used in the first instance to pay the State’s share
of old-age relief pensions, and that such capital fund be accumulated until
such fund alone will yield sufficient income to pay all of the State’s share o f
such old-age relief.
Sec. 16. Application for relief.—An applicant for old-age relief shall make
his application therefor to the county welfare board as the bureau of old-age
relief for the county in which the applicant resides. The person requesting
relief may apply in person or the application may be made by another in his
behalf. The application shall be made in writing or reduced to writing, in
manner and form prescribed by the division of old-age relief. All statements
in the application shall be verified under oath by the applicant.
S ec. 17. Investigation of same.—Whenever the county welfare board as the
bureau of old-age relief receives an application for relief, an investigation and
record shall be promptly made of the circumstances o f the applicant. The
object of such investigation shall be to ascertain the facts supporting the
application made under this act and such other information as may be required
by the rules o f the division of old-age relief. Upon the completion of such
investigation the county welfare board shall decide whether the applicant is
eligible for and should receive old-age relief under this act, the amount and
nature o f relief, the manner of paying or providing it, and the date on which
such relief shall begin. It shall notify the applicant of its decision in writing.
The county welfare board shall at once report to the division of old-age
relief its decision in each case together with copies o f the application and
record of investigation. Such decision shall be final: Provided, however, That
where an application is not acted upon by the county welfare board within 30
days after the filing of the application or is denied or the grant is deemed
inadequate either by the division o f old-age relief or by the applicant the
applicant may appeal to the division of old-age relief by filing a petition with
the division o f old-age relief, setting forth the facts in full as to the necessity
of such relief, verified by five reputable citizens of the county, and if the
appeal is sustained by the division of old-age relief the payments of relief
in the amounts determined by said division must be paid by said county as
herein provided.
S ec. 18. Reapplication.—An applicant whose application for relief under
this act has been rejected may not again apply for such relief until the expira­
tion Of six months from the date of the previous application. I f the application
for relief be granted, the county welfare board shall report the fact to the
auditor o f the county. All payments of relief under this act shall be made
monthly by the treasurer of the county in the manner provided by law for
payment of claims against the county to the county welfare treasurer, who
shall disburse the relief herein provided, either in cash or by check, monthly,
semimonthly, or as otherwise provided by the regulations o f the welfare board.
All relief under this act shall be renewed every six months on verified appli­
cations, and after such further investigation as the county welfare board may
deem necessary, and the amount o f relief may be changed if the county welfare
board finds that the recipient’s circumstances have been changed. It shall
be within the power o f the county welfare board to cancel and revoke old-age
relief for cause, and it may for cause suspend payments for old-age relief for
such periods as it may deem proper.
S ec. 19. Improperly granted relief.— Any person who has knowledge that
old-age relief is being improperly granted or administered under this act may
file a complaint in writing with the division of old-age relief setting forth the
particulars of such violation. Upon receipt of such complaint the division
of old-age relief shall make an investigation of the allegations set forth in
such complaint, or if at any time the division o f old-age relief has reason to
believe that relief to the aged poor persons has been improperly granted it
shall cause an investigation to be made. It may suspend payment of any
installment pending an investigation. It shall notify the county welfare board
of any such proposed investigation. I f it appears as a result o f any such
investigation that the old-age relief was improperly granted, such old-age
relief shall be canceled by the division of old-age relief, which shall imme­
diately notify the county welfare board that it will not approve any pay­
ment made after such suspension, but if it appears as a result of such investi­
gation that relief was obtained properly the suspended payments o f relief
ehall be payable,

TEX T OF L A W S

73

Sec. 20. fraudulent acts.—Any person who by means of a false statement
or representation or by impersonation or other fraudulent device obtains or
attempts to obtain or aids or abets any person to obtain old-age relief to
which he is not entitled, or a larger amount o f relief than that to which he
is justly entitled, or payment of any forfeited installment grant; or knowingly
aids or abets in buying or in any way disposing o f the property o f an applicant
without the consent of the county welfare board, shall be guilty o f a mis­
demeanor and punished accordingly.
Seo. 21. Violations.—Any person who knowingly violates any provision o f
this act for which no penalty is specifically provided shall be guilty o f a
misdemeanor and upon conviction thereof shall be punished by a fine of
not more than $1,000, or imprisoned for not more than one year, or by both
such fine and imprisonment.
Sec. 22. Periodic reconsideration of relief.—All old-age relief under this
act shall be reconsidered from time to time, or as frequently as may be re­
quired by the rules of the division of old-age relief. After such further inves­
tigation as the bureau of old-age relief may deem necessary or the division
of old-age relief may require, the amount and manner of giving relief may
be changed or the relief may be withdrawn if such county welfare board
finds that the recipient’s circumstances have changed sufficiently to warrant
such action. It shall be within the power o f the county welfare board as
the bureau of old-age relief at any time to cancel and revoke old-age relief
for cause, and it may for cause suspend payments for relief for such periods
as it may deem proper, subject to review by the division of old-age relief,
as provided in section 14 of this act.
Seo. 23. Reports.—
-Each county welfare board as the bureau of old-age
relief shall report to the division o f old-age relief at such times and in such
manner and form as the division may prescribe, the number of applications
granted and the grants o f old-age relief changed, revoked, or suspended under
this act by such county welfare board, together with copies of all applications
and supporting affidavits received and a statement o f the action o f such
county welfare board thereon, and shall report the amount of relief to aged
poor persons paid out under this act by the county welfare board as the
bureau of old-age relief, and make such other reports as the division of oldage relief may require either by rules or requests in individual cases.
Sec. 24. Relief from other sources.—A person 70 years of age or more not
receiving old-age relief under this act is not by reason of his age debarred
from receiving public relief and care under the provisions o f any other law,
but no recipient of old-age relief, while receiving the same, shall receive any
other relief from the State or any political subdivision thereof except for
medical and surgical assistance.
Sec. 25. Relief inalienable.—All amounts paid as old-age relief shall be
exempt from any tax levied by the State or by any subdivision thereof, and
exempt from levy and sale, garnishment, attachment, or any other process
whatsoever and shall be inalienable in any form, and in case o f bankruptcy
shall not pass to the trustee or other person acting on behalf o f the creditors
of the aged poor person.
S eo. 26. Construction of act.—Nothing in this act shall be construed as re­
pealing any other act or part of an act providing for the settlement and relief
of the poor except in so far as inconsistent therewith, and that the provisions
of this act shall be construed as an additional method of supporting and pro­
viding for aged poor persons. This act shall be liberally construed. Any part
or parts of this act which may be found to be invalid or unconstitutional shall
be severable, and the remainder of the act shall stand and the provisions con­
tained in this act shall not be construed to be exclusive and shall not be con­
strued to repeal other provisions of the law not inconsistent herewith. Any
particular grant o f power contained in this act shall be held to be in specifica­
tion but not in limitation of general powers. Nothing in this act shall operate
to repeal or nullify the provisions of an act entitled “An act regulating the em­
ployment, tenure, and discharge o f certain officers and employees o f this State
and of the various counties and municipalities thereof, and providing for a
civil service commission and defining its powers and duties,” approved April
10, 1908, and the acts supplementary thereto and amendatory thereof.
Seo. 27. Pauperism.—No person receiving relief under this act shall be
deemed to be or classified as a pauper by reason thereof.

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P U B LIC OLD-AGE PEN SIO NS IN T H E U N IT E D STATES

Sec. 28. Effective date.—This act shall take effect January 2, 1932, but appli­
cations for relief thereunder shall not be made before April 1, 1932, and relief
shall not be granted to begin before July 1, 1932.
(Approved April 24, 1931.)

New York
CONSOLIDATED LAWS (CAHILL’S) 1930
C h apter 4Qy2
ARTICLE XIV—
A

Seo. 122. Establishment of relief.—The care and relief of aged persons who
are in need and whose physical or other condition or disabilities seems to ren­
der permanent their inability to provide properly for themselves is hereby de­
clared to be a special matter of State concern and a necessity in promoting the
public health and welfare. To provide such care and relief at public expense,
a state-wide system of old-age relief is hereby established, to operate in a uni­
form manner with due regard to the varying living conditions and costs of
living. As hereinafter provided, such old-age relief shall be given by the city
and county public welfare districts and by such other cities as may elect to
administer old-age relief, subject to partial reimbursement by the State and to
supervision by the State department of social welfare. When used in this arti­
cle, the terms “ public welfare district ” shall include any city forming part of
n county public welfare district electing to administer old-age relief and the
term “ State department ” shall mean the State department of social welfare.
Other provisions of this chapter, not inconsistent with this article, shall be ap­
plied and used in carrying out the provisions of this article. The provisions of
any city charter or other local or special act forbidding outdoor relief or which
are inconsistent with the provisions of this article shall not apply to the relief
provided for by this article, nor impair nor limit the state-wide operation of
this article according to its terms. The term “ relief” whenever used in this
article shall be construed to include assistance, aid, care, or support.
Seo. 123. To whom applicable.—Old-age relief shall be given under this article
to any person who—
1. Has attained the age of 70 years.
2. Is unable to support himself, either in whole or in part, and has no children
or other person able to support him and responsible under the provisions of
this chapter for his support.
3. Is a citizen of the United States.
4. Has been a resident of the State of New York for at least 10 years im­
mediately preceding his application for old-age relief.
5. Has resided in and been an inhabitant of the public welfare district in
which the application is made for at least one year immediately preceding the
date of application.
6. Is not at the time an inmate of any public or private home for the aged,
or any public home, or any public or private institution of a custodial, correc­
tional, or curative character, except in the case of temporary medical or
surgical care in a hospital.
7. Has not made a voluntary assignment or transfer of property for the
purpose of qualifying for such relief; and
8. Is not because of his physical or mental condition in need of continued
institutional care.
Seo. 124. Amount of relief.— It shall be the duty of public welfare officials
to provide adequately for those eligible for old-age relief under the provisions
of this article. The amount and nature of the relief which any such person
shall receive, and the manner o f providing it shall be determined by the publiewelfare official with due regard to the conditions existing in each case, in
accordance with the rules and regulations made by the State department.
Relief may include, among other things, medical and surgical care and nursing.
Whenever practicable relief may be granted in the form o f cash or a check.
The relief granted under this article shall, whenever practicable, be provided
for the recipient in his own or some other suitable family home.
Seo. 124-a. Application.—A person requesting relief under this article shall
make his application therefor to the public welfare official of the public welfare
district in which the applicant resides. An inmate o f a public or private home

TEX T OF LAW S

75

for the aged, or o f any public home, or of any public or private institution of
a correctional, custodial, or curative character may make an application while
in such a home or institution, but the relief, if granted, shall not begin until
after he ceases to be such an inmate. The person requesting relief may apply
in person, or the application may be made by another in his behalf. The
application shall be made in writing or reduced to writing, and it shall specify
that it is made for old-age relief under the provisions of article 14-a o f the
public welfare law.
Seo. 124-b. Welfare district.— Subject to partial reimbursement by the State
as hereinafter provided, each public welfare district shall furnish the old-age
relief provided for in this article to the persons eligible thereto who reside
in its territory. A city forming part o f a county public welfare district may, by
resolution of its legislative body adopted by majority vote of all of its members,
elect to furnish such old-age relief to the persons eligible thereto residing in
the city. A copy of such resolution shall be filed within 10 days after its
adoption with the clerk of the county in which such city is located and with the
State department. Such a resolution shall take effect on the 1st day of Sep­
tember following its adoption, and no relief granted pursuant thereto shall
begin before the 1st day of January after the resolution takes effect. Such a
city shall have all the powers and duties relative to old-age relief under this
article conferred on a public welfare district, including the right to partial reim­
bursement by 1lie State. On and alter such 1st day of January the county
public welfare district in which such city is located shall not include such city
in so far only as administration of such old-age relief and levying of taxes
therefor are concerned. Nothing contained in this chapter shall be construed
to authorize or require that any part of the amounts expended by a county
public welfare district for relief under this article shall be charged back to a
town or city.
Sec. 1 2 4 -c. Appropriation.— The legislative body of the public welfare dis­
trict shall annually appropriate and make available to the order of the pub­
lic welfare official such a sum as may be needed for old-age relief, together with
a sufficient sum to defray administrative expenses to be incurred in connec­
tion therewith and include such sums in the taxes to be levied in the terri­
tory responsible for such old-age relief. Should the sum so appropriated,
however, be expended or exhausted, during the year and for the purpose for
which it was appropriated, additional sums shall be appropriated by such
legislative body as occasion demands to carry out the provisions of this article.
In cities, such additional sums shall be paid from unexpended balances not
required by law to be expended for a specific purpose, or from contingent
funds where such exist. Where such shall be raised by temporary loans or
notes, certificates of indebtedness or other obligations and the amount neces­
sary to pay such obligations shall be included in the next annual tax levy. In
counties, such additional appropriations shall be paid from funds in the county
treasury available therefor, except that if only part of the county constitutes a
county public welfare district, only the funds o f such public welfare district
shall be appropriated, and then only to the extent o f any excess thereof not
needed for the purposes o f the public welfare district under other provisions
of this chapter. Should there be no such county funds, or county public
welfare district funds available therefor, the county treasurer shall borrow
a sufficient sum to pay such appropriations in anticipation of taxes to be col­
lected therefor within the county public welfare district.
Sec. 124-d. Reimbursement by State.—The public welfare official shall keep
such records and accounts in relation to old-age relief as the State depart­
ment shall prescribe. The State shall reimburse each public welfare district
to the extent of one-half of the amount expended for relief for each aged
person which has been granted under the provisions of this article and in ac­
cordance with the rules o f the State department The State shall also re­
imburse the public welfare district for one-half of the salary paid to and onehalf of the traveling expenses of any person employed by the public welfare
official for the purpose o f administering old-age relief under this article, pro­
vided the manner in which he has performed his duties conforms to the rules
of the State department. I f the department shall so determine in any case,
other expenses of a public welfare district may be allowed under this article
in such amount as the department may determine, and the State shall also re­
imburse the district to the extent o f one-half thereof. I f a person shaU be
83360°—32------6

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PU B LIC OLD-AGE PEN SIO N S IN T H E U N ITED STATES

employed only for part time in the administration of old-age relief, reim­
bursement shall be limited to one-half the salary for the time spent in
administration o f old-age relief.
S ec . 124-e. Claims for reimbursement.—Claims for State reimbursement
under this article shall be presented by the respective public welfare districts
to the State department semiannually, in January and July. For the pur­
poses of the annual departmental estimates for the executive budget, the
probable amount needed for expenditure by the State under this article shall
be regarded as financial needs o f the State department o f social welfare.
S eo . 124-f. Approval of claims.—The approval of such claims shall be made
by the State department to the extent of one-half of the payments made in
accordance with the provisions of this article and the rules of the State de­
partment. The State department shall certify to the comptroller the amounts
so approved by it, specifying the amount to which each public welfare district
is entitled. The amounts so certified shall be paid from the State treasury
upon the audit and warrant of the comptroller to the fiscal officers of tho
counties and cities entitled thereto, from moneys available therefor by appropriation.
S ec. 124-g. Investigation of applicant.—Whenever a public welfare official
receives an application for relief, an investigation and record shall be promptly
made of the circumstances o f the applicant. The object o f such investigation
shall be to ascertain the facts supporting the application made under this article
and such other information as may be required by the rules o f the State
department.
Seo. 124-h. Granting o f aid.—Upon the completion of such investigation the
public welfare official shall decide whether the applicant is eligible for and
should receive old-age relief under this article, the amount and nature of
relief, the manner of paying or providing it and the date on which relief shall
begin. He shall make an award which shall be binding upon the city 01*
county and be complied with by such city or county until modified or vacated.
He shall notify the applicant o f his decision in writing. The public welfare
official shall at once report to the State department his decision in each case,
together with copies of the application and record of investigation. Such de­
cision shall be final: P rov id ed , h ow ev er, That where an application is not acted
upon by the public welfare official within 30 days after the filing of the appli­
cation or is denied or the grant is deemed inadequate, either by the State de­
partment or by the applicant, the latter may appeal to the State department.
The State department shall upon receipt of such an appeal review the case.
The State department may also, upon its own motion, review any decision made,
or any case in which a decision has not been made by the public welfare official
within the time specified. The State department may make such additional in­
vestigation as it may deem necessary, and shall make such decision as to the
granting of relief and the amount and nature of relief to be granted the appli­
cant as in its opinion is justified and in conformity with the provisions of this
article. All decisions of the State department shall be binding upon the city
or county involved and shall be complied with by the public welfare official of
the public welfare district.
Sec . 124-i. Revocation, etc., of aid.—Any person who has knowledge that oldage relief is being improperly granted or administered under this article may
file a complaint in writing with the State department setting forth the par­
ticulars of such violation. Upon receipt of such complaint, the State depart­
ment shall make an investigation of the allegations set forth in such complaint,
or, if at any time the State department has reason to believe that relief to the
aged has been improperly granted, it shall cause an investigation to be made.
It shall notify the public welfare official of any such proposed investigation.
I f it appears as a result of any such investigation that the relief was improp­
erly granted, the State department shall immediately notify the public welfare
official, that it will not approve any payment made thereafter.
Seo. 124-j. Periodic review of aid.— All relief under this article shall be re­
considered from time to time, or as frequently as may be required by the rules
of the State department. After such further investigation as the public wel­
fare official may deem necessary or the State department may require, the
amount and manner of giving relief may be changed or the relief may be
withdrawn if such official finds that the recipient’s circumstances have changed
sufficiently to warrant such action. It shall be within the power of the public
welfare official at any time to cancel and revoke relief for cause, and it may

TEX T OF LAW S

77

for cause suspend payments for relief for such periods as it may deem proper,
subject to review by the State department, as provided in section 124-h.
Sec. 124-k. Reports.—Each public welfare official shall report to the State
department at such times, and in such manner and form as the department
may prescribe, the number of applications granted and the grants o f relief
changed, revoked or suspended under this article by such official, together with
copies of all applications and supporting affidavits received and a statement of
the action of such official thereon, and shall report the amount o f relief to the
aged paid out under this article by the public welfare district, and make such
other reports as the State department may require either by rules or requests
in individual cases.
Seo. 124-1. Administration.—The State department o f social welfare shall
supervise the administration o f old-age relief under this article by the public
welfare officials. The State department shall prescribe the form o f and print
and supply to the public welfare officials blanks for applications, reports, affi­
davits and such other forms as it may deem advisable. The State department
is hereby authorized to and shall make rules and regulations necessary for
the carrying out of the provisions of this article to the end that old-age relief
may be administered uniformly throughout the State, having regard for the
varying costs of living in different parts of the State and that the spirit and
purpose of this article may be complied with. All rules and regulations made
by the State department under this article shall be binding upon the public
welfare officials and the public welfare districts.
Sec . 124-m. Assignability, etc.—All relief given under this article shall be
inalienable by any assignment or transfer and shall be exempt from levy or
execution under the laws of this State.
Seo. 124-n. Expenses of act.—All necessary expenses incurred by a county
or city in carrying out the provisions of this article shall be paid by such
county or city in the same manner as other expenses o f such county or city are
paid, subject to partial reimbursement by the State from appropriations made
by the legislature for this purpose.
Sec. 124r-o. Violations.—Any person who by means of a false statement or
representation, or by impersonation or other fraudulent device, obtains or at­
tempts to obtain, or aids or abets any person to obtain old-age relief to which
he is not entitled, or a larger amount of relief than that to which he is justly
entitled, shall be guilty of a misdemeanor unless such act constitutes a viola­
tion of a provision of the penal law o f the State of New York in which case he
shall be punished in accordance with the penalties fixed by such law.
Seo. 124-p. Saving d a m e.— A person 70 years of age or more not receiving
an old-age relief under this article is not by reason of his age debarred from
receiving public relief and care under other provisions of this chapter.
(Approved, April 10, 1930.)

Utah
ACTS OF 1929
Chapter 76
S ection 1. Ftmds provided.—The board o f county commissioners of each
county, hereinafter called the “ board,” in addition to their other powers and
duties in relation to the support of the poor provided by law shall have the
power to provide funds in the county treasury for the purpose o f carrying out
the provisions of this act.
Sec. 2. Amount of pension.— The board shall have the power to grant a
monthly pension in such amount as the board shall determine, not to exceed
$25 per month, to be paid out o f the county treasury to any person who has
attained the age of 65 years, and is incapacitated to gain a livelihood, is and
for 5 years immediately preceding his application, has been an actual bona
fide resident of the county, provided the applicant shall establish to the satis­
faction of the board that he possesses the qualifications prescribed in the
next section.
Seo. 3. Qualification of applicant.—All applications for old-age pensions shall
be made in writing upon blanks to be furnished by the county auditor and
shall be signed and verified under oath by the applicant and supported by the
affidavits of two reputable citizens of the county to the effect that they are

78

PU B LIC OLD-AGE PEN SIO N S IN TH E U N IT E D STATES

acquainted with the applicant, stating the length of time they have known
him, and that they believe the statements made in the application are true.
The application shall show that the applicant:
(a ) Is, and for 15 years last past, has been a citizen o f the United States.
(&)
Is, and for 15 years last past has been a resident of this State, or has
been a resident o f this State for 25 years and has resided therein continuously
for 5 years last past : Provided, If 15 years’ residence is claimed, it shall not be
deemed to be interrupted by occasional absence from the State, if the total
period of absence does not exceed 3 years, or the absence occurred while the
applicant was in the employ of the United States or of this State.
(c) Has not during 10 years last past been imprisoned upon conviction of a
felony or indictable misdemeanor.
( d) I f a husband has not during 15 years last past deserted or without just
cause failed to provide adequate means for the support of his wife, or neglected
to maintain and provide for the support of such of his children as were under
15 years of age, for a period of 6 months, and if a wife has not during 15 years
last past deserted her husband or such of her children as were under 15 years
of age, without just cause.
( e ) Has not within one year last past been a vagrant or a beggar.
(f ) H as not during the year last past had an income exceeding $300 which
income shall be computed by adding to the actual income 5 per cent o f the fa ir
cash market value o f all property owned by the applicant.

(g ) Has not directly or indirectly disposed or deprived himself of any prop­
erty for the purpose of reducing his computed income and qualifying for an oldage pension.
(h) Has no relative responsible for his support under the law who is able to
support him.
Sec. 4. Application form .— The application shall state the name o f the appli­
cant, the place and date o f his birth, and, if a naturalized citizen, the place and
date o f his naturalization; his present place o f residence and post-office address
and the length o f residence at such pla ce; the places o f his residence fo r 25
years last past and the length o f residence at each p la ce ; whether m arried or
single and i f single whether a bachelor, spinster, widowed, or divorced and the
length o f time widowed or d ivorced; an inventory o f all real and personal prop­
erty owned, with the value o f each item, and whether separate or com m unity;
the amount o f income fo r one year last past and the source th ereof; whether
ever imprisoned upon conviction o f a felony or an indictable misdemeanor and
if so w h en ; the name, age, and place o f residence o f husband or w ife, i f a n y ;
the names, ages, and places o f residence o f all children, grandchildren, brothers,
and sisters; his general state o f health and whether deaf, blind, crippled, or
otherwise incapacitated fo r his usual occupation, and the nature and extent o f
any incapacity claimed.
Sbo. 5. Filing of application.— The application shall be filed w ith the clerk
o f the board and shall come on for hearing before the board at the next ensuing
regular session. The board shall have the power to require the applicant to
appear in person at the hearing and testify under oath as to all matters con­
tained in the application and such other matters, touching his need fo r support
in the form o f a pension as it may deem necessary, and to subpoena and hear
the testimony o f witnesses in support o f or against the granting o f the applica­
tion, and may adjourn each hearing from time to time for not to exceed 60 days
from the date o f filing the application.
S ec. 6. Denial of application.— Upon the conclusion o f the hearing the board
shall enter an order in its minutes denying the application and the grounds
therefor, or granting a monthly pension to the applicant in such amount not
exceeding $25 per month, and fo r such length o f time not exceeding one year,
as to the board shall seem ju st and reasonable, and the board shall have the
power to impose as a condition to such grant that the applicant shall assign
and transfer to the county the whole or such portion o f his property as the
board shall deem adequate, as security fo r the repayment o f the amount paid
as a pension together with interest, as hereinafter provided.
Sec. 7. Order granting pension.— The order granting a pension shall state
the name, age, and place o f residence o f the applicant, the amount o f the
monthly pension, the date when such pension shall begin, and shall authorize
the county auditor to draw his w arrant upon the county treasurer fo r such
payments to the applicant, or to such person as the board may designate, fo r
the use o f the applicant, out o f the current expense fund o f the county.

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Sec. 8. Renewal.— On or before the expiration o f one year from the date
o f an order granting an old-age pension, and at the expiration o f each year
thereafter, unless the pension has been canceled by order o f the board or the
recipient has died, the board, after such hearing and investigation as it shall
deem necessary, shall have the power to enter an order renewing such pension
fo r the ensuing year, in which order the amount o f monthly allowance may
be decreased, or increased to any sum not exceeding $25 per month, as to
the board may seem just.
Sec. 9. Revocation.— I f at any time the recipient o f an old-age pension, or
the husband or w ife o f such recipient, shall become possessed o f any property
or income in excess o f that owned or being received at the date o f the applica­
tion, or if at any time any relative o f the recipient responsible in law fo r his sup­
port shall become able to support him in whole or in part, it shall be the duty
o f the recipient to immediately n otify the board in w riting o f the facts in
the case, and the board, upon such notification or upon learning the facts
from any source, shall have the power, and it shall be its duty, to investigate
the matter and cancel, or reduce, the amount o f the pension as the facts may
warrant.
Sec. 10. Recovery in case o f fraud.— I f at any time before or at the death
o f the recipient o f an old-age pension, it shall appear to the board that at
the date o f the application the applicant was possessed o f property or income
in excess o f that stated in his application, or that subsequently he became
possessed o f additional property income and failed to n otify the board thereof,
and that such excess or additional property or income was o f sufficient amount
to have prevented the granting or warranted the cancellation o f the pension,
the board shall have the right to recover from the recipient or his estate by
civil action in the name o f the county, double the total amount o f all pension
payments made by reason o f the fraudulent concealment.
Seo. 11. Burial expenses.— I f oh the death o f the recipient o f an old-age
pension, it shall appear to the satisfaction o f the board that his estate is
insufficient to pay his funeral expenses, the board shall have the power to
order the payment o f the installment o f pension then accruing and such
additional sum as may be necessary, not exceeding the total sum o f $100,
to such person as the board may direct fo r the funeral expenses o f the
deceased pensioner.
Sec. 12. Claim against estate.— A t the death o f the recipient o f an old-age
pension or the surviving husband or w ife o f the recipient, the county shall
have a claim against the estate o f the recipient or survivor fo r the amount
o f pension payments made, together with 5 per cent interest from the dates
o f payment, such claim shall be preferred to all claims against said estate
except taxes, expenses o f last sickness, and funeral expenses, which claim
when collected shall be paid into the country treasury.
Sec. 13. Receiving of other aid.— No recipient o f an old-age pension, while
receiving the same, shall receive any other aid from the State or any political
subdivision thereof except fo r medical and surgical assistance.
Sec. 14. Assignability, etc ., of pension.— Old-age pensions shall be inalienable
by voluntary or involuntary assignment, transfer, sale attachment, execution, or
otherwise, and in case o f bankruptcy shall not pass to the trustee or other
person acting on behalf o f the creditors o f the pensioner.
Sec. 15. False representations.— Every person who knowingly makes any false
statement or representation or impersonates another person, w ith the intent
to obtain or fo r the purpose o f obtaining an old-age pension or increase thereof
for him self or another, or obtains or attempts to obtain, or aids or abets in
obtaining an old-age pension or increase thereof fo r him self or another
by means o f any false statement, representation, or impersonation, or aids or
abets in the buying, selling, or in any w ay disposing o f any property belonging
to the recipient o f an old-age pension, without the consent o f the board granting
the pension, shall be guilty o f violating this section and his pension shall be
canceled and he shall be disqualified from applying fo r an old-age pension fo r a
period o f one year from the date o f the cancellation.
Sec. 16. Conviction of crime.— I f any recipient o f an old-age pension shall be
convicted o f a crime and punished by imprisonment, the board shall suspend
the payment o f the installments o f pension during such imprisonment.
Sec. 17. Payment to guardian.— I f at any time it shall appear to the satis­
faction o f the board by the testimony o f two or more reputable citizens that
any recipient o f an old-age pension is incapable o f caring fo r himself or his

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PUBLIC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

pension, the board shall have the power to order the pension to be paid to
some person designated by the board for the use o f the pensioner until his
disability is removed.
Seo. 18. Repealing clause.—Nothing in this act shall be construed as repeal­
ing any other act or part of an act for the support of the poor, but the provi­
sions of this act shall be construed as an additional method o f supporting
the poor of the county, and nothing herein shall be construed as vesting in
any person the right to an old-age pension or the continuance thereof.
Sec. 19. Gender.—Whenever in this act the masculine pronoun is used it
shall in a proper case be held to include the feminine.
Sec. 20. Title o f act.— This act shall be known and may be cited as “ the old
age pension law of the State of Utah.”
(Approved March 25, 1929; effective May 14, 1929.)

West Virginia
ACTS OF 1931
C hapter 32
Section 1. Establishment of system.—The care and relief of aged persons
who are in need and whose physical or other conditions or disabilities seems
to render permanent their inability to provide properly for themselves is hereby
declared to be a special matter of public concern and a necessity in promoting
the public health and welfare. To provide such care and relief at public
expense, a county system of old-age pension relief is hereby established to
operate in a uniform manner, with due regard to the varying living condi­
tions and costs of living. The terms “ pension re lie f” or “ relief” whenever
used in this article shall be construed to include assistance, aid, care, or sup­
port to the class o f persons affected thereby, and whenever the masculine
pronoun is used it shall be deemed to include the feminine gender.
Sec. 2. Method of establishing.—Every county court of the State of West Vir­
ginia is hereby authorized to establish a system of old-age pensions in accord­
ance with the provisions of this article; but before said county pension system
shall be established and placed into effect, the county court o f any county shall
submit to a vote o f the people of the county, at any general election held therein,
or at any special election called for the purpose, the question of whether or not
said system o f old-age pension relief shall be established. I f a majority o f the
qualified voters voting at any such election favor old-age pension relief, the
county court shall provide and maintain said relief, beginning with the next fiscal
year after the holding of said election. When old-age pension relief shall be
established in any county it shall continue therein until changed by a vote o f
the people. After it becomes effective in any county and has continued therein
for a period of two years, the county court thereof may, upon its own motion,
and shall, upon the written petition o f 500 taxpayers o f the county who are
legal voters thereof, submit to a vote of the people of the county, at a general
or special election therein, the question o f whether or not said system of oldage pension shall be continued. If a majority of the qualified voters voting
at such election shall vote against the continuance of said old-age pension relief,
then the county court shall discontinue said system as of the 30th day of June
next following the date of said election, and the rights of all persons receiving
the benefits of such relief shall cease and determine as of that date, and the
county court shall cause written notice, by due course of mail, to be given to
the beneficiaries of pension relief to the effect that the pension-relief system
has been discontinued by a vote of the people, and in addition thereto the county
court shall publish for two successive weeks in two newspapers published in
the county and representing opposite political parties, if there be such, a procla­
mation to the effect that the old-age pension system of the county has been dis­
continued by a vote of the people. I f there be but one political party repre­
sented in the county by a newspaper published therein, then said proclamation
shall be published in one of the papers o f said party. If there be no newspaper
published in said county, then same shall be published in some newspaper of
general circulation therein. If at any said election said county pension system
is discontinued by a majority of the voters thereof, the question of maintaining
a system of old-age pension relief shall not again be submitted to a vote o f the
people within a period of five years from the date of the last election at which
said question was submitted. But where the system is discontinued by a vote

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of the people of the county, the county court may, upon its own motion, and
shall upon the written petition o f 500 taxpayers o f the bounty who are qualified
voters therein, again submit the question of establishing an old-age pension
system to the voters o f the county after the expiration of five years from the
time said election was held in which said old-age pension system was discon­
tinued, and if reestablished by a vote o f the people it shall continue unless again
suspended as herein provided.
Seo. 3. Amount of pension.—Any person while residing in any county which
maintains a system of old-age pension relief, who shall comply with the provisions
of this article, shall be entitled to a pension in old age. The amount of such
pension shall be fixed with due regard to the conditions in each case, but in
no case shall it be an amount which shall exceed a total p f $1 per day.
Seo. 4. Conditions.—An old-age pension hereunder may be granted only to an
applicant who (1) has attained the age of 65 years or more; (2) has been a
citizen of the United States for at least 15 years before making application for
a pension; (3) has resided in the State of West Virginia and the county in
which he makes application continuously for at least 10 years immediately pre­
ceding the date of application, but continuous residence in the State and county
shall not be deemed to have been interrupted by periods of absence therefrom
if the total of such periods does not exceed three years. And absence in the
service of the State of West Virginia or the United States shall not be deemed
to interrupt residence in the State and county if a domicile be not acquired
outside of the State or county; (4) is not at the time of his application an
inmate of any public or private home for the aged, or any public home, or any
public or private institution o f a custodial, correctional, or curative char­
acter, except in the case o f temporary medical or surgical care in a hospital;
(5) is not because o f his physical or mental condition in need o f continued
institutional care; (6) during the period of 10 years immediately preceding
such date has not been imprisoned for a felony; (7) has not, within one year
preceding such application for pension, been a habitual tramp or beggar; (8)
has no child or other person responsible under the law o f this State for his
support and able to support him ; (9) has no property, income, or other means
of support; (10) has not disposed of or deprived himself, directly or indi­
rectly, of any property for the purpose o f qualifying for old-age pension relief;
(11) does not receive a pension from the United States or any State or foreign
government, or compensation under the laws o f the State of West Virginia.
S e o . 5. Administration.— It shall be the duty of the county court to provide
adequately for those eligible for old-age pension relief and who apply therefor
under the provisions of this article. The amount and nature o f the relief
which any such person shall receive and the manner o f providing it shall be
determined by the county court with due regard to the conditions existing in
each case, in accordance with reasonable rules and regulations made by said
court not inconsistent with the provisions of this article. Belief may include,
among other things, medical and surgical care and nursing, in the discretion of
the court. The relief granted under this article shall, whenever practicable,
be provided for the recipient in his own or some other suitable family home.
The court shall determine in each instance the amount of regular relief to
which the applicant is entitled and enter an order fixing the same, and issue
to the beneficiary thereof a certificate showing the amount of the monthly
allowance to which he is entitled during the continuance o f said relief allow­
ance. Where a pensioner under this article is seriously ill and in actual need
o f medical and surgical care and nursing, and the amount o f the regular relief
provided for him is not sufficient to provide for any such medical, surgical, and
nursing care, the county court may provide such additional allowance as may
be absolutely necessary to pay the expense thereof, and'shall enter an order
authorizing the payment o f such extraordinary expense.
Seo. 6. Application.—Any person requesting or applying for pension relief
under this article, shall make his application therefor to the county court of
the county in which he resides. The applicant may apply in person or the
application may be made by another in his behalf. The application shall be
made in writing, or reduced to writing, and it shall specify that it is made for
old-age pension relief under the provisions of this article. The application shall
be verified by the person making the same, or by some other reputable person
who is acquainted with the facts stated in the petition, and the petition or
application should be supported by other competent testimony if available. In
considering any such application, the commissioners o f the court may make a

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PU B LIC OLD-AGE PEN SIO NS IN T H E U N ITED STATES

personal investigation of the condition and circumstances of the applicant, or
the court may, in its discretion, appoint some reputable person to make such an
investigation in its behalf. Upon any such application being filed, as aforesaid,
any citizen or group o f citizens of the county may file with the court objections
to the granting of any old-age pension relief prayed for in the application, and it
shall be the duty o f the court to hear evidence offered either in support o f or in
opposition to the granting o f such relief. Any applicant or protestant feeling ag­
grieved by the action of the court may, as a matter of right, appeal to the circuit
court of the county for further relief. On any such appeal, the original papers
filed with the county court, including a transcript of the evidence taken therein,
shall constitute the record before the circuit court, and the court shall deter­
mine the case upon the original record thus presented; or, in lieu of the original
record, a complete transcript of the record in the county court certified by the
clerk thereof, may be used on appeal at the option of the appellant. The de­
cision of the circuit court shall be certified by the clerk thereof to the clerk of
the county court wherein application was made, and the original record, if
used, on appeal shall be returned to the clerk of the county court for its files;
and the judgment of the circuit court in any such appeal shall be final.
Sec. 7. Violations.— Any person who by means of willful false statement or
representation or by impersonation or other fraudulent device obtains or at­
tempts to obtain or aids or abets any person to obtain any old-age pension
relief, to which he is not entitled shall be guilty of a misdemeanor, and on
conviction thereof, shall be fined not more than $500, or imprisoned in the
county jail not more than one year, or be punished by both such fine and im­
prisonment. And if, upon the death of any beneficiary under this article, it is
ascertained that there is any property or estate of which the beneficiary died
seized or possessed, or to which he was otherwise lawfully entitled in his life­
time, other than household goods and personal property not exceeding in value
the sum of $300, the county court shall have a prior lien, second only to taxes,
upon such estate, if any, to the amount o f the aggregate payments made to
the beneficiary under this article, plus 3 per cent interest on payments so made.
In the event of the existence and discovery of any such estate upon the death
of any such beneficiary, it shall be the duty of the prosecuting attorney o f the
county to proceed, in the name and on behalf of the county court for the use
and benefit of the old-age pension relief fund, to collect from any such estate
any funds so found to be due.
Sec. 8. Improperly granted pension.—Any person who has knowledge that oldage pension relief is being improperly granted or administered under this article
may file a complaint in writing with the county court setting forth the particu­
lars of such violation. Upon receipt of such complaint the county court shall
make an investigation of the allegations set forth in such complaint; or if at
any time the county court has reason to believe that any such relief has been im­
properly granted or fraudulently obtained it shall cause an investigation to be
made. Upon the filing of any such complaint, or upon the determination o f the
court to make an investigation, it shall be the duty of the court to notify
the pensioner of the time and place of the hearing to be held by the court
thereon; and the petitioner, or the complainant, may appear in person or by
counsel at any such investigation and hearing. If it shall appear as result of
the filing of such complaint or investigation that the relief was improperly
granted or that the pensioner has come into the possession of property or
estate or other means of support and is no longer in need o f such relief, the
county court may revoke any certificate theretofore issued by it to the pensioner
and discontinue any further payments for old-age relief under this article and
make any other order that it may deem necessary in the premises. Either party
feeling aggrieved by the action of the court shall have the right of appeal to
the circuit court of the county in the manner and form provided in section 6
hereof.
Sec. 9. Records; discontinuance of pension; incapacity of pensioner.—The
county court of every county which maintains a system of old-age pension
relief under this article shall keep and maintain an accurate permanent record
of all proceedings relating to old-age pensions. The clerk o f the county court
shall do all necessary clerical work in connection with said pension system
and keep and preserve permanent and accurate records and accounts pertaining
to the same, and without any additional compensation therefor. Said records
and accounts, including the order book, shall be kept separate, distinct, and apart
from all other fiscal records and accounts of the office of the county clerk and

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shall be open to inspection during office hours by any citizen or taxpayer of
the county. In addition to the records and accounts and files of papers kept and
preserved by the county court in the clerk’s office thereof, it shall be the duty of
the clerk to keep and preserve a book of accounts in which he shall open a
separate account in the name of each person receiving old-age relief under
this article, and the clerk shall enter on the debit side of said account the
amount of each separate payment made to the beneficiary thereof together
with the date of the payment and the number of the draft, voucher, or check
issued for each payment. The account of each pensioner shall bear the number
of his pension certificate; and said book o f accounts shall be carefully indexed
by arranging the names of the pensioners in alphabetical order and giving the
page reference to the personal account of each. When pension relief has been
allowed by the court and proper orders entered directing the same, it shall be
the duty of the clerk of the county court to issue drafts or vouchers on the
last day of each month, payable to the beneficiaries thereof, and to deliver the
same. I f any beneficiary under this article is convicted of any crime, mis­
demeanor, or felony, or other offense, punishable by imprisonment for one month
or a longer period, the county court shall direct that payment be not made
during such period. Upon the conviction of any beneficiary o f old-age pension
herein provided of a heinous offense involving imprisonment for a period of more
than 90 days, his right to receive further relief shall, ipso facto, cease and
determine. Furthermore, if the beneficiary is found incapable of taking card
of his money or himself, on the testimony of reputable witnesses, the county
court may direct any installment or payment of pension relief to said beneficiary
to be paid to any reputable person for his benefit, or the court may suspend
payment for such period o f time as it deems fit.
Sec. 10. Relief inalienable.— A ll pensions provided fo r hereunder shall be
exempt from any tax levied by the State or any subdivision thereof, and ex­
empt from levy and sale, garnishment, attachment or other process whatsoever,
and shall be inalienable in any form .

Seo. 11. County pension agent.—In aid of the effective administration and
enforcement of the provisions of this article, the county court of any county
having a population, according to the last decennial census of the United
States, of 35,000 or mpre, may, in its discretion, appoint some reputable and
discreet person to be known as “ county pension agent,” and fix his salary in
an amount not to exceed the sum of $250 per month. Such county pension
agent shall hold said appointment at the will and pleasure o f the county
court, and may be removed at any time with or without cause. The county
court may allow reasonable actual expenses o f said agent incurred in and
about the performance o f his duties as such. The salary and expenses of
said pension agent shall be paid out of the old-age pension fund hereinafter
provided for. It shall be the duty of any such county pension agent to inves­
tigate, supervise and enforce the provisions o f this article under the direction
and authority of the county court.
Seo. 12. Reports.—The pension records and accounts of each county court
and the clerk thereof shall be subject to inspection, supervision and audit by
the tax commissioner of West Virginia in the same manner and with the same
effect as provided by law for other public funds; and the clerk of the county
court of each county maintaining a system- of old-age pension relief shall
annually make report to the tax commissioner of all receipts and disbursements
of the county pension relief fund, and in such manner and upon such forms as
the tax commissioner may require. Said report shall be made by said clerk
within a period of 30 days after the end of each fiscal year.
Seo. 13. Annual estimates of cost.—Every county court which maintains a
system of old-age pension relief under this article shall each year at the levy
estimate and levy period provided by general law for the making up of esti­
mates and the laying of levies, make up an estimate of the necessary and prob­
able amount needed for old-age pension relief, and lay a special levy sufficient
for said relief fund, not to exceed the sum of 5 cents on each $100 of assessed
valuation o f property in the county. The estimates and levies herein pro­
vided shall be published in the manner provided by law for general county
levies. Said special levy shall apply to all of the taxable property of the county,
including that in incorporated cities and towns. Said special levy shall be in
addition to all other county levies provided by general law. The fund aris­
ing from said special levy shall be known and designed as “ the old-age pension
fund,” and no part o f said fund shall be expended for any other purpose than

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PU B LIC OLD-AGE PEN SION S IN T H E U N IT E D STATES

that for which the same is provided. The sheriff-treasurer o f the county shall
keep and preserve said fund in a separate and distinct account from all other
funds, and shall not pay out of said fund any sum of money for any pur­
pose than the old-age pension relief system. The sheriff-treasurer and the
sureties on his bond shall be held responsible and account for this fund, and
the sheriff-treasurer shall make settlement and account therefor in the manner
provided by law for other funds in his hands.
(Passed March 11, 1931; effective June 11, 1931.)

Wisconsin
ACTS OF 1925
Chapter 121
Sec. 49.20 (as amended by Acts of 1929, ch. 181; and Acts of 1931, ch. 239).
Establishment of system.— (1) For the more humane care o f aged, dependent
persons a State system of old-age assistance is hereby established. Such system
o f old-age assistance shall be administered in each county by the county judge,
under the supervision o f the board of control, as provided in sections 49.28 and
49.39. The cost of old-age assistance shall in the first instance be borne by the
county, but the county shall be entitled to reimbursement from the State and
from the cities, villages, and towns of which the beneficiaries are residents as
provided in section 49.37.
(2)
Until July 1, 1933, the provisions of sections 49.20 and 49.39 shall apply
only to such counties whose county boards have made an appropriation to
carry out these provisions, but thereafter shall apply to all counties.
Sec. 49.21 (as amended by Acts o f 1929, ch. 181). Amount o f pension.—Any
person while residing in a county, which maintains a system of old-age assist­
ance, who shall comply with the provisions of sections 49.20 to 49.39, shall be
entitled to financial assistance in old age. The amount o f such old-age assist­
ance shall be fixed with due regard to the conditions in each case, but in no
case shall it be an amount which, when added to the income of the applicant,
including income from p rop erty , as computed under the terms of this act, shall
exceed a total of one dollar ($1) a day.
Sec. 49.22 (as amended by Acts of 1929, ch. 181; Acts o f 1931, ch. 109). Con­
ditions:—Old-age assistance may be granted only to an applicant who—
(1) Has attained the age of 70 years or upwards.
(2) Was born in the United States or has been a citizen o f the United States
for at least 15 years before making application for old-age assistance.
(3) Has resided in the State and county in which he makes application:
(<0 Continuously for at least 15 years immediately preceding the date of
application, but continuous residence in the State and county shall not be
deemed to have been interrupted by periods of absence therefrom if the total
of such periods does not exceed three years, or,
(5)
Forty years, at least five of which have immediately preceded the appli­
cation :
(c)
Provided, That absence in the service of the State of Wisconsin or of
the United States shall not be deemed to interrupt residence in the State or
county if a domicile be not acquired outside the State or county.
(4) Is not at the date of making application an inmate of any prison,
jail, workhouse, infirmary, insane asylum, or any other public correctional
institution.
(5) During the period o f 10 years immediately preceding such date has not
been imprisoned for a felony.
(6) I f a husband, has not without just cause failed to support his wife and
his children under the age of 15 years for six months or more during the 15
years preceding the date of application for old-age assistance.
(7) Has not, within one year preceding such application for old-age assist­
ance been a habitual tramp or beggar.
(8) Has no child or other person responsible under the law o f this State for
his support and able to support him.
Sec. 49.23 (as amended by Acts of 1929, ch. 181; and Acts of 1931, ch. 239).
Persons not entitled.— Old-age assistance shall not be granted or paid to a
person:
(1)
While or during the time he is an inmate of and receives the necessities
of life from any charitable institution maintained by the State or any of the

TE X T OF liA W S

85

political subdivisions of the State, or is an inmate o f a private charitable,
benevolent, or fraternal institution or home for the aged: Provided, That
application for old-age assistance may be made while the applicant is an inmate
of a county home, but if assistance is granted it shall not begin until be ceases
to be an inmate of such home.
(2) I f the value of his property or the value of the combined property of
husband and wife living together exceeds $3,000.
(3) Who has deprived himself, directly or indirectly of any property for the
purpose of qualifying for old-age relief.
Seo. 49.24. Computation of income.—The annual income o f any property
which is not so utilized as to produce a reasonable income shall be computed at
5 per cent of its value.
Sec. 49.25 (as amended by Acts of 1929, ch. 181). Deduction from estate.—
On the death of a person who has been assisted under sections 49.21 to 49.39
or of the survivor o f a married couple both of whom were so assisted the
total amount paid together with simple interest at 3»per cent annually shall
be allowed and deducted from the estate of such person or persons by the
court having jurisdiction to settle the estate. The amount so recovered shall
be paid into the treasuries of the State, county, town, village, or city in the
proportion in which they respectively contributed toward the total old-age
assistance received by the deceased or by the married couple of which the
deceased was the survivor.
Sec. 49.26 (as amended by Acts o f 1929, ch. 181; and Acts of 1931, ch. 239).
Transfer of property.— (1) If the county judge deems it necessary, he may
require as a condition to the grant of a certificate that all or any part o f the
property of an applicant for old-age assistance shall be transferred to the
county court, except that in counties having a population of 500,000 and having
a manager o f county institutions such property shall be transferred to such
manager of county institutions. Such property shall be managed by the county
court or said manager o f county institutions, who shall pay the net income
to the person or persons entitled thereto. The county judge or said manager
o f county institutions shall have power to sell, lease, or transfer such property,
or defend and prosecute all suits concerning it, and to pay all just claims
against it, and to do all other things necessary for the protection, preservation,
and management of the property.
(2) I f in the event that the old-age assistance is discontinued during the
lifetime of the beneficiary, the property thus transferred to the county court
or said manager of county institutions exceeds the total amount paid with
simple interest at 3 per cent annually, the remainder of such property shall
be returned to the beneficiary; and in the event of his death such remainder
shall be considered as the property of the beneficiary for proper administra­
tion proceedings. The county judge or said manager of county institu­
tions shall execute and deliver all necessary instruments to give effect to this
subsection.
(3) The district attorney at the request of the county judge or said manager
of county institutions shall take the necessary proceedings and represent the
county court or said manager of county institutions in respect to any matters
arising under this section.
Sec. 49.27 (as amended by Acts of 1929, ch. 181). Application.— An applicant
for old-age assistance shall file his application in writing with the county
judge of the county in which he resides, in such manner and form as shall be
prescribed by the board of control. All statements in the application shall be
sworn to or affirmed by the applicant, setting forth that all facts are true in
every material point.
Seo. 49.28 (as amended by Acts of 1929, ch. 181). Investigations, etc.—The
county judge shall promptly make or cause to be made such investigation as he
may deem necessary. The county judge shall decide upon the application and
fix the amount of the old-age assistance, if any, and such decision shall be
final: Provided, That the county board may at any time reduce or discontinue
entirely such assistance granted to any beneficiary. An applicant whose appli­
cation for old-age assistance has been rejected or whose allowance has been
stopped may not again apply until the expiration of 12 months from the date
o f his previous application.
Sec. 42.29 (as amended by Acts o f 1929, ch. 181). Certificate, revocation,
etc.— (1) The county judge shall issue to each applicant to whom old-age
assistance is allowed a certificate stating the date upon which payments shall

86

PU B LIC OLD-AGE PEN SIO N S IN T H E U N ITED STATES

commence and the amount of each installment, which may be monthly or
quarterly, as the judge may decide.
(2)
Each beneficiary under the provisions o f sections 49.20 to 49.39 shall
file such reports with the county judge as the board of control may from time
to time require. If it appears at any time that the applicant’s circumstances
have changed, the county judge may revoke or modify any certificate issued.
Any sum paid in excess of the amount due under the provisions of said sec­
tions shall be returned to the county and shall be recoverable as a debt due the
county.
Sec. 49.30 (as amended by Acts of 1929, ch. 181). Burial expenses.— On the
death of a beneficiary such reasonable funeral expenses for burial shall be paid
to such persons as the county judge may direct: Provided, That these expenses
do not exceed $100: And provided further, That the estate of the deceased is
insufficient to defray these expenses.
Sec. 49.31 (as amended by Acts of 1929, ch. 181). Receiving of other aid;
incapacity o f 'beneficiary.— (1) During the continuance of old-age assistance
no beneficiary shall receive any other relief from the State or from any
political subdivision thereof except for medical and surgical assistance.
(2)
If the beneficiary is, on the testimony of at least three reputable wit­
nesses, found incapable of taking care of himself or his money, the county
judge may direct the payment of the installments of the old-age assistance to
any responsible person or corporation for his benefit, or may suspend payment
for such period as the judge shall deem advisable.
Sec. 49.32 (as amended by Acts of 1929, ch. 181). Assignability of pension.—
All amounts paid as old-age assistance shall be exempt from any tax levied
by the State or by any subdivision thereof, and exempt from levy and sale,
garnishment, attachment, or any other process whatsoever, and shall be inalien­
able in any form.
Sec. 49.33. Improperly obtained pension.— I f at any time the county judge
has reason to believe that a pension certificate has been improperly obtained,
the county judge shall cause special inquiry to be made and may suspend pay­
ment of any installment pending the inquiry. . If on inquiry it appears that the
certificate was improperly obtained, it shall be canceled but if it appears that
the certificate was properly obtained, the suspended installments shall be pay­
able in due course.
Sec. 49.34 (as amended by Acts of 1929, ch. 181). Fraudulent acts.— Any
person who by means of a willfully false statement or representation, or by
impersonation, or other fraudulent device obtains, or attempts to obtain, or
aids or abets any person to obtain: (a) A certificate to which he is not entitled;
(&) a larger allowance than that to which [he] is justly entitled; (c) payment
o f any forfeited installment grant; ( d ) or aids or abets in buying or in any
way disposing of the property of a pensioner without the consent of the
county judge shall be guilty of a misdemeanor and upon conviction thereof
shall be fined not more than $500 or be imprisoned in the county jail for not
more than one year, or be punished by both such fine and imprisonment, in
the discretion of the court.
Sec. 49.35 (as amended by Acts of 1929, ch. 181). Violations.— (1) Any per­
son who violates any provision of section 49.21 to 49.39, inclusive, for which
no penalty is specifically provided shall be subject to a fine not exceeding
$500 or to imprisonment not exceeding one year, or both.
(2)
Where a beneficiary is convicted o f an offense under this section the
county judge may cancel the certificate.
Sec. 49.36 (as amended by Acts of 1929, ch. 181). Conviction of crime.— I f a
beneficiary is convicted of any misdemeanor, felony, or other offense, punish­
able by imprisonment for one month or longer, payments shall not be made
during the period of imprisonment.
Sec. 49.37 (as amended by Acts of 1929, ch. 181; and Acts of 1931, ch. 239).
Appropriation; reimbursement by municipality.— (1) The county board of
each county which operates under the State system of old-age assistance shall
annually appropriate a sum of money sufficient to carry out the provisions of
sections 49.20 to 49.39. Upon the orders of the judge of the county court,
county treasurer shall pay out the amounts ordered to be paid as old-age
assistance under the provisions of said sections.
(2)
The county board o f each county may cause each city, town, and village
to reimburse the county for all amounts of money paid in old-age assistance to
its residents, less the amounts received by the county from the State pursuant

T E X T OF LAW S

87

to subsection (3) o f this section. The county clerk shall make a report to
the county board at its annual November meeting showing in detail the amounts
which under this subsection are chargeable to each city, town, and village,
and the county board at such meeting shall determine if such amount shall
be so charged, and then determine the amount to be raised and paid by each
such city, town, and village to reimburse the county. The county clerk shall
charge the amount so determined to such city, town, or village and shall certify
the same to the city, town, or village clerk. Bach city, town, or village shall
annually levy a tax sufficient to meet such charges, which shall be collected
as are other taxes and paid into the county treasury.
(3) On the first day of January of each year the county treasurer shall
certify under oath, in duplicate, to the secretary of state and the State board
of control, the amount paid out by such county during the preceding year for
old-age assistance, and if the board of control shall approve the same and shall
cause its approval to be indorsed by the president and secretary of said board
on the certificate received by the secretary of state, the secretary of state
shall credit one-third of the amount so certified to be due such county on the
State taxes next due therefrom, and the State treasurer shall credit such county
with said one-third of such amount in his annual settlement with said county
for taxes due the State: Provided, That if the total amount payable to all the
counties under this section, as certified by the county .treasurers, shall exceed
the sum appropriated by subsection 13m of section 20.17, the secretary of state
and the State treasurer shall prorate the said sum among the various counties
according to the amount paid out.
(4) When necessary, the county board shall annually levy a tax sufficient
for the payment of old-age assistance to residents of the county who meet all
qualifications for assistance but do not have a legal settlement in any city,
village or town. Such tax levy shall be paid into a “ county-at-large old-age
assistance fu n d ” and no part of the payments made to such persons shall be
charged to any city, village or town, but the county shall be entitled to partial
reimbursement from the State as in other cases.
Sec. 49.38 (as amended by Acts of 1929, eh. 181). Reports.—Within 30 days
after the close of each calendar year, the county clerk of each county shall
make a report for the preceding year, to the State board o f control stating:
(a) The amount paid as old-age assistance.
(&) The total number o f applications for assistance.
(c)
The number granted, the number denied, the number canceled during
that year, and such other information as the board o f control may deem ad­
visable.
Sec. 49.39 (as amended by Acts of 1929, ch. 181). Administration.— The
board of control shall from time to time prescribe and promulgate rules and
regulations to efficiently carry out the provisions of sections 49.20 to 49.39. It
shall also publish such information as it may deem advisable to acquaint aged
persons and the public generally with the old-age assistance plan of this State.
(Approved and effective May 12, 1925.)

Wyoming
ACTS OF 1929
C hapter 87
Section 1. EstctblisJiment of system.—There shall be established in each
county of the State of Wyoming a county old-age pension board, hereinafter
called the old-age pension commission, and the boards of county commissioners
of the respective counties of the State of Wyoming are hereby designated as
the old-age pension commissions of their respective counties to serve as such
without any additional compensation.
Sec. 2. Duties of commission.—The old-age pension commission shall perform
all the duties imposed upon it by this act and shall have authority to make
such rules and regulations consistent with the provisions hereof as are neces­
sary to carry out the provisions of this act. The old-age pension commission
shall meet at such times and places as shall be fixed by its rules.
Sec. 3. Persons entitled to pension .— Every person (man or woman, married
or single) shall, in the discretion o f the old-age pension commission, while

88

PUBLIC OLD-AGE PENSIONS IN THE UNITED STATES

residing in the State o f Wyoming, be entitled to a pension in old age subject
to the restrictions and qualifications hereinafter noted.
Sec. 4. Amount.—The amount of said pension shall be fixed by the old-age
pension commission with due regard to the conditions in each case; but in no
case shall it exceed $30 per month.
Seo. 5. Conditions.—An old-age pension may be granted only to an applicant
who—
(а) Has attained the age of 65 years or upwards.
(б) Has been a citizen of the United States for at least 15 years before
making application for a pension.
(c ) Resides and has his or her domicile in the State of Wyoming and has
so resided and had his or her domicile continuously therein for not less than
15 years immediately preceding the date of the application for a pension; 5
years thereof immediately preceding the time of the making of said application
in the county where application is made: Provided, That continuous residence
in the State shall not be deemed to have been interrupted by occasional ab­
sences therefrom, where the total period of such absence does not exceed three
years; or by absence from the State while in the employ or service o f the State
or of the United States.
(d) That during the period of 10 years preceding such date of application
he has not been imprisoned for any offense punishable by imprisonment in the
State penitentiary.
(e) That the claimant, if a husband, has not during the period of 15 years
immediately preceding such date of application for a pension for a period of
6 months or upwards, deserted his wife, or without just cause, failed to provide
for her with adequate means of maintenance or neglected to maintain and pro­
vide for such of his children as were under the age of 15 years; or if a wife,
deserted her husband or such of her children as were under age without cause.
(f) That he has not been, within one year preceding such application for
pension, a professional tramp or beggar.
Sec. 6. Same; amount deductible from estate.— The income of the claimant
from all sources at the date of application for relief shall not exceed $360
per annum.
(a ) The claimant must not have deprived himself or herself directly or
indirectly, of any property for the purpose of qualifying for old-age relief.
(b) The aged person must have no child, or any other person legally respon­
sible for the support of the aged person under the laws of the State of Wyoming
fully able to support the applicant.
(c) At the death of the person to whom the pension is granted, or of the
last survivor of a married couple, the total amount of the pension since the
first grant, together with 3 per cent of interest shall be deducted and allowed
by the proper courts out of the proceeds of his or her property as a preferred
claim against the estate o f the person so assisted, and refunded to the county
treasurer to the credit of the poor fund, leaving the balance for distribution
among the lawful heirs in accordance with law : Provided, That the old-age
pension commission may demand the assignment or transfer of such property
upon the first grant of such pension. The old-age pension commission shall
establish such rules and regulations regarding the care, transfer, management,
and sale of such property as it deems advisable, and also provide for the
return of the balance of the claimant’s property into its hands whenever the
pension is withdrawn or the claimant ceases to request it.
Sec. 7. Computation of income.—The annual income o f any property, in­
clusive of a homestead, shall be computed at 3 per cent of its determined value.
(a) In ascertaining a claimant’s income and the amount of pension, his
income for the last preceding year shall be deemed his annual income, and the
property owned at the end of that year as his accumulated property: Provided,
That when the claimant shows to the satisfaction of the old-age pension com­
mission the loss of personal income derived from personal earnings, it shall be
deducted from the income of the preceding year in considering the amount of
pension to be granted.
Seo. 8. Application.—A claimant for an old-age pension under this act shall
deliver his or her claim in writing to the old-age pension commission of the
county in which the claimant resides in the manner and form prescribed by
the old-age pension commission. All statements in the application shall be
sworn to and affirmed by the applicant setting forth that all the facts are true
and correct in every material point.

TE X T O F LAW S

89

Seo. 9. Certificate.—When the claim is established, and the rate of the
first year’s old-age pension is fixed, the old-age pension commission shall, in the
manner it may prescribe, certify the same to the county treasurer of such
county and shall issue to the claimant an old-age pension certificate which
shall state the date of issuance, the claimant’s name, age, and residence, and
the amount of monthly payment, which certificate shall be good for one year
unless sooner revoked.
(a ) The old-age pension certificate shall be required each subsequent year;
to be renewed after satisfactory investigation.
Seo. 10. Commetwement of pension.—The old-age pension shall commence on
the date named in the certificate issued to the claimant.
(a ) All old-age pensions shall be paid in monthly payments by county war­
rants, drawn on the county treasurer and on the poor fund thereof.
Seo. 11. After-acquired property.— I f at any time during the currency or
continuance of an old-age pension certificate, the recipient, or the wife or
husband of the recipient, becomes possessed of any property or income in
excess of the amount allowed by law in respect to the amount o f pension
granted, the old-age pension commission may, on inquiry, either cancel the
pension or vary the amount thereof during the period of the certificate, and it
shall be the duty of the recipient immediately to notify the old-age pension
commission of the receipt and possession of such property or income.
{a) If, on the death of any recipient of an old-age pension, it is found that
he, or she, was possessed of property in excess of the amount allowed by law
in respect to the amount of pension granted, double the total amount o f the
relief granted in excess of that to which the recipient was by law entitled,
may be recovered by the old-age pension commission as preferred claim from
the estate so found in excess. The attorney general or county attorney shall
take the necessary proceedings to recover such claim and the amount so
recovered shall be paid into the county treasury of such county.
Sec. 12. Burial expenses.— On the death of a recipient of old-age pension,
the installments then accruing, and such other reasonable funeral expenses as
are necessary for the burial of such person shall be paid to such person or per­
sons as the old-age pension commission directs: Provided, That these expenses
do not exceed $100: And provided further, That the estate of the deceased is
insufficient to defray the expenses.
(a)
It is provided, further, That these provisions for providing old-age
pensions shall not be construed as a vested right in the pensioners.
Sec. 13. Receiving of other aid; removal from county.—During the con­
tinuance of the old-age pension no recipient shall receive any other relief from
the State, or from any political subdivision thereof except for medical and
surgical assistance. In case the recipient of a pension under the provisions of
this act shall be required, by reason of illness or other justifiable cause, to
remove from the county paying such pension to another county, within this
State, the county paying such pension at the time of such removal, shall con­
tinue to pay such pension until such time as said pensioner shall have qualified
to receive a pension from the new county in which he has located. The
provisions of this act, however, shall not apply in case o f the permanent
removal of the pensioner from the State.
Sec. 14. Pension inalienable.— A ll old-age pensions shall be absolutely in­
alienable by any assignment, sale, attachment, execution, or otherwise, and in
case o f bankruptcy the old-age pension shall not pass to any trustee or other
persons acting on behalf o f creditors.
Sec. 15. Improperly obtamed pension.— If at any time the old-age pension

commission has reason to believe that any old-age pension certificate has been
improperly obtained, it shall cause special inquiry to be made by the county
attorney and may suspend payment of any installment pending the inquiry. If,
on inquiry, it appears that the certificate was improperly obtained, it shall be
canceled by the old-age pension commission, but if it appears that the certifi­
cate was properly obtained, the suspended installment shall be payable in due
course.
Sec. 16. Fraudulent acts.— Any person, who by means of a willfully false
statement, or representation, or by impersonation, or other fraudulent device,
obtains, or attempts to obtain, or aids or abets any other person to obtain—
(a ) An old-age pension certificate to which he is not justly entitled.

90

P U B LIC OLD-AGE PEN SIO N S IN T H E U N IT E D STATES

(6) A larger amount o f assistance than that to which he is justly entitled.
(c) Payment o f any forfeited installment grant.
(d) Or aids or abets in the buying or in any way disposing of the property
of an old-age pension recipient, without the consent of the old-age pension
commission, shall be guilty of a misdemeanor and upon conviction thereof shall
be sentenced to pay a fine of not exceeding $500 or to undergo imprisonment
not exceeding six months, or both.
Seo. 17. Violations.—Any person who violates any provision of this act for
which no penalty is specifically provided shall be subject to a fine not exceed­
ing $500 or to undergo imprisonment not exceeding six months, or both.
(a) Where an old-age pension recipient is convicted o f an offense under this
section, the old-age pension commission may cancel the pension certificate in
respect to the issue of which the offense was committed.
Seo. 18. Forfeiture.— In case of forfeiture of any old-age pension certificate
the person whose pension is so forfeited shall be disqualified from making an
application for a new certificate until the expiration of one year from the
date of forfeiture.
Seo. 19 (as amended by Acts of 1931, ch. 35). Appropriation.— The funds
for the payment o f old-age pensions shall be furnished by the respective coun­
ties, and all expenses incurred in the administration of the act shall be paid
from the funds of the several counties and paid by the county treasurer
from the poor fund of such county. The commissioners of the several counties
shall for this purpose and in addition to all levies now authorized, levy a tax
not to exceed one-half mill on the total assessed valuation of the property
within the particular county paying out said old-age pension.
Sec. 20. Reports.—Within 90 days after the close of the calendar year the
old-age pension commission of each county shall make a report of the preced­
ing year to the State auditor of the State of Wyoming, stating—
( а ) The amount paid in cash.
(б ) The total number of recipients.
(c) The total number of applicants.
(d) The number granted pensions, the number denied, the number canceled
during the year and such other information as the State auditor may deem
advisable.
Seo. 21. Promulgation of rules, etc.—All methods o f procedure in hearings,
investigations, recording, registration, and accounting pertaining to the oldage pensions under this act shall be in accordance with the rules and regula­
tions as laid down from time to time by the old-age pension commission.
Seo. 22. No vested right.—Every old-age pension granted under the provisions
of this act shall be deemed to be granted and shall be held subject to the provi­
sions of any amending or repealing act that may hereafter be passed, and no
recipient under this act shall have any claim for compensation or otherwise
by reason of his old-age pension being affected in any way by any such amend­
ing or repealing a ct
Sec. 23 (as amended by Acts of 1931, ch. 35). Purpose of act.—Nothing in
this act shall be construed to authorize the county commissioners or the oldage pension commission to pay out during any one calendar year an amount
of money for old-age pensions which shall be in excess o f an amount o f money
represented by a levy of one-half mill on the total assessed valuation o f the
property within the particular county paying out said old-age pensions.
Seo. 24. Gender.— That whenever in this act the masculine pronoun is used, it
shall be held to include the feminine pronoun also.
Sec. 25. Title of act.—This act shall be named and cited as the old-age
pension act of the State of Wyoming.
Seo. 26. Repeal.—All acts and parts of acts conflicting with the provisions of
this act are hereby repealed.
Seo. 27. Effective date.—This act shall take effect and be in force from and
after June 1, 1930.
(Approved February 19, 1929.)

PART 2

OLD-AGE PENSIONS AND INSURANCE
IN FOREIGN COUNTRIES

91

---- f

83360*—32

Part 2.—OLD-AGE PENSIONS AND INSURANCE IN
FOREIGN COUNTRIES
Introduction and Summary
The bureau presents in this section of the report the measures
adopted in foreign countries to provide a competence for old age,
together with data, where obtainable, of the actual operation of the
various systems. The descriptive reports for these countries were
prepared by the consular representatives of the United States De­
partment of State in the several countries concerned, in accordance
with an outline and a memorandum of instructions prepared by the
Bureau of Labor Statistics. This study may therefore be regarded
as substantially complete, except as regards the Soviet Union, for
which country the bureau has no first-hand information.
The data show that in 39 countries (exclusive of the Soviet Union)
one or more systems of pensions or insurance for old age have been
established. These countries are enumerated below:
Argentina.
Australia.
Austria.
Belgium.
Bolivia.
Brazil.
Bulgaria.
Canada.
Chile.
Cuba.
Czechoslovakia.
Denmark.
France.
Germany.

Great Britain.
Greece.
Greenland.
Guernsey, Isle of.
Hungary.
Iceland.
Irish Free State.
Italy.
Japan.
Lithuania (Memel Territory).
Luxemburg.
Netherlands.
Newfoundland.

New Zealand.
Norway.
Paraguay.
Poland.
Portugal.
Rumania.
South Africa, Union of.
Spain.
Sweden.
Switzerland.
Uruguay.
Yugoslavia.

The following 16 countries have no system of old-age pensions
or insurance: Colombia, Costa Rica, Dominican Republic, Ecuador,
Estonia, Finland, Guatemala, Honduras, Latvia, Lithuania (ex­
cept in Memel Territory), Mexico, Nicaragua, Panama, Peru, Sal­
vador, and Venezuela. In Panama, however, there are retirement sys­
tems for certain classes of Government employees. In Latvia a com­
mission has been appointed to draw up a general old-age insurance
law, and 50 per cent of the contribution of the State to the sickness-insurance system is being set aside to form an old-age insurance re­
serve. It should also be noted that although there is no system of
old-age pensions or insurance in Colombia or Peru, in both of these
countries certain classes of workers are required to take out life
insurance for the protection of their families.

94

PEN SIO N S AN D IN SU RAN CE IN FOREIGN COUNTRIES

Types of Plans
The systems of old-age care are of three main types as regards
contribution and benefit:
(1) Voluntary insurance: In essence this is merely a system under
which the Government sells annuities under more favorable rates
than the private insurance companies.
(2) Compulsory insurance: Under this system contributions to
a general insurance fund are made by two or all of the three
parties concerned—the State, the employers, and the employees.
Usually, all three parties contribute, as in Great Britain, Germany,
and in France. This fund is managed by public authority and out
of it determined benefits are paid to each employee under the system
when he attains a certain age.
(3) Public pensions: Here the cost of the system is borne wholly
by the public, and pensions are paid to citizens reaching a certain
age, without other means of support, and without regard to whether
they are or have been employed workers.
Of these three types of systems, the first—voluntary insurance—
needs least comment. It has been introduced in only six countries
(Canada, France, Italy, Japan, Netherlands, and Switzerland), and
it has not succeeded, as a rule, in obtaining any large coverage.
As already indicated, the method of approach to the problem of
old-age dependency is very different under compulsory insurance
and under the public pension. The following points of difference
may be emphasized as of particular importance: Under a public
pension system aid is given only in case of actual dependency, and
then only in accordance with the need of the individual as established
to the satisfaction of the administrative agency. The theory under
the compulsory-insurance system is quite different. Under such a
system the aim is to accumulate, for all working citizens, against their
retirement from industry, an insurance fund which will support
them in their old age. The old-age benefits thus received by a
retired worker are therefore not dependent upon the degree of de­
pendency or upon proof of need. On the other hand, this system
provides only for persons who are or have been workers; it does not
cover dependent persons who, for various reasons, may have reached
old age without ever having had employment within the meaning
of the law.
The compulsory-insurance principle has at present by far the
greatest acceptance. In general, the public pension system is favored
by the British dominions and the Scandinavian countries and de­
pendencies (except Sweden). The compulsory-insurance system is
now in force in the principal industrial countries of Europe, such
as France, Germany, Great Britain, and Italy; of these, France and
Great Britain also have a pension system.

Coverage of System

Not all of the systems adopted are complete in their coverage.
Thus, in Switzerland only certain Cantons have adopted such sys­
tems, and in Brazil such legislation applies only to employees of
public utilities. Also it is to be noted that, in a few instances, sys­
tems of different character and coverage are in effect in the same
country.

INTRODUCTION AND SUMMARY

95

In the great majority of countries, however (including the prin­
cipal industrial countries of Europe, such as England, Germany,
and France), the systems in effect cover either the whole population
or the whole working population, subject to certain requirements
of income, residence, etc.
Public old-age insurance or pensions are intended for and applied
to the economically lowest groups of the population, principally
wage earners and low-salaried employees, but may include independ­
ent workers, including small employers (employing up to five or
six workers). In order to determine these insurable or pension­
able groups, the laws set certain economic limits on the basis of
earnings, income, or value of property owned. These economic
limits vary from country to country even more widely than the age
limits.
However, a number of countries, having introduced a public compulsory-insurance system for the low-income groups of the popula­
tion, have established a secondary, higher-income limit for voluntary
insurance; that is, persons whose earnings or incomes are above the
limit for compulsory insurance and below the secondary, higher
limit may come under the compulsory-insurance act if they so desire.
Experience shows that these classes do, to some extent, take advan­
tage of such a provision.

Age Limit

There is no generally accepted age limit at which old-age pen­
sions or benefits shall become payable. Not only does the age limit
vary from country to country, but often within the same country
different age limits are set for the sexes and for different occupa­
tional groups; in some insurance systems the age of retirement is
dependent on years of service and amount of contributions made.
In general, it may be said that the age limits in European countries
vary from 50 to 70 years, the prevailing limits being from 60 to 65
years. In the non-European countries the age limits, on the whole,
appear to be somewhat lower than in Europe.
The age limit for women is in many cases fixed five years lower
than for men.
For more hazardous occupations, such as transport and mining,
often a lower age limit is set than for other less hazardous occupa­
tions.
In general, the lowest age limits occur under voluntary-insurance
systems and the highest under straight pension systems, while the
compulsory-insurance systems occupy a middle position in this
respect.
The recent legislative tendency in regard to the age limit seems to
be toward flexibility, a certain amount of discretion being left to the
administrative authorities to fix age standards within the upper and
lower limits set by the law.

Contributions and Benefits
In case of compulsory insurance the contributions are made
either as a certain percentage of wages or salaries or as a definite

96

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

sum of money to be contributed either weekly or monthly. Public
contributions to insurance funds are either proportioned to the con­
tribution shares of the insured and their employers, or are in the
form of grants representing definite sums of money either per
insured or per beneficiary, or lump sums transferred periodically to
the insurance fund.
Some foreign countries have resorted to special taxation and
other special means of raising money for the benefit of the insurance
or pension funds. The European countries, however, seem to avoid
special taxation for public-insurance funds.
Old-age benefits or pensions are usually established at a point
which will provide merely the bare necessaries of life or a minimum
of comfortable subsistence. As this minimum varies from country
to country, from time to time, and even as between economic groups
in the same country, the amount of benefit or pensions paid in differ­
ent countries and for different groups of persons in the same country
varies greatly.
With a few exceptions, the benefits and pensions are considerably
lower than the wages or salaries earned before old-age retirement.
As a rule, in the case of insurance systems the amount of benefit is
based upon the amount of contributions made in behalf of the
insured, while the amount of contribution is based upon a certain
percentage of wages or salary, or of income in the case of independent
workers.
In order closely to relate earning ability with contributions, vary­
ing numbers of graded wage or income classes are often set up.
As, however, minute classification complicates administrative work,
there is a tendency either to decrease the wage classes to a smaller
number or to do away with them entirely, leaving only the upper
insurable or pensionable income limits.
In a number of European countries the ordinary or regular bene­
fits or pensions are rather small, especially in view of the increasing
cost of living and depreciation of money value, in postwar years.
Various increases and additional benefits have therefore been intro­
duced, usually termed “ bonuses,” “ allowances,” “ supplementary
benefits,” “ special grants,” etc.

Survivors’ Benefits
Most of the old-age insurance or pension systems make provision
for dependent survivors, such as widow or widower, orphans, par­
ents, etc.
Usually the amount of the widow’s benefit is one-half of the
benefit of her deceased husband.
Almost all insurance systems provide that the total benefit for
survivors may not exceed the benefit of the deceased.

Statistics of Operation
The table following shows, for each country for which data are
available, the number of persons covered by the various systems, the
number of beneficiaries, and the average benefit.

97

IN TROD U CTIO N AND S U M M A R Y
T able

1 .—Extent of coverage and benefits o f old-age pension and insurance
systems in specified countries

Country and system

Year to Number
which of persons
Population figures covered by
system
apply

Insured
Argentina:
Railway employees........................ .
Bank employees............................. .
Public-utility-company employees..
Australia: Pensions.............................. .
Austria: Salaried employees................. .
Brazil: Public - utility - company em­
ployees................................................
Canada:
Pensions.......... . . ............... .............
Voluntary insurance........................
Chile:
Wage earners.................................. .
Salaried employees......................... .
Cuba:
Maritime employees...................... .
Railway employees..........................
Czechoslovakia:
Salaried employees......................... .
Wage earners.................................. .
State railway employees................. .
Miners......................... .................. .
Denmark: Pensions...............................
France:
Seamen............................................
Ship's cooks, stewards, etc..............
Voluntary insurance........................
Railway employees....... .................
Miners.............................................
Noncontributory pensions...............
General insurance scheme................
Germany:
Wage earners.................................. .
Salaried employees..........................
Bank employees............ .................
Miners__. . . . . . . . _______________
Great Britain:
Noncontributory pensions...............
Contributory insurance...................
Greece: Wage earners and salaried em­
ployees................................................
Greenland: Eskimos* pensions.............
Guernsey, Isle of: Pensions....................
Hungary: Wage earners and salaried era-

Aver­
age
yearly
old-age
and
inva­
lidity
Survivors benefit

Number of
beneficiaries

143,843
9,205
41,908
5,495,734
228,882

122,408
1410
C
O
155,196
9,543

140,435

6,930

f 1931
} 9,934,500 \ 1930

(3
)
10,183

57,930
0

} 4,364,395 / 1931
\ 1930

1,203,500
80,220

663

/ 1929
} 3,607,919 \ 1931

50,000
45,000

877
2,569

787

f 1930
14,523,186 iI 1929
1929
I 1929
3,434,555 1929

359,374
2,305,959
132,888
129,644
3,434,555

14,314
605
62,773
84,760
99,461

17,608
2,451
(3
)
(3)

1930
1930
1930
1928
1929
1929
1930

170,000
36,000
(3
)
446,000
425,000
566,000
8,217,636

59,800
(3
)
800,000
170,000
(3
)
(8
)

7,500
(3
)
(3)
(8
)
(3)
(3)

f
•10,904,022 I
[
5,495,734
6,675,283
40,272,650

40,745,874

1929
1929
1929
1930
1929
(*)

f 1929
1930
•62,348,782 \ 1930
[ 1930

1 6 ^ 741“

i$440
1291
(3
)
242
354

3,867

366

(2
)
b
0
“

200
(«)
21

(3)
(3)
(8
)

14
98
57
160
129
(3
)

12
166
(3)
(3)

18,000,000 *2,049,000 1,178,000
185
3,500,000
125,576 100,790
1185
66,067
Ul,042
(2
)
U90
130
676,383
205,447 167,905 / •317
1 7

(3
)
[44,173,704 / 1930 816,500,000
1 1928

1,373,331
* 587,772

6,204,468 1927-28
•10,000 1929
40,529
(<)

191,925
<)
8
(*>

22,676
500
500

8,603,922 1929
Irish Free State: Pensions.................... . 2,972,802 1928
Italy: Compulsory insurance................. 41,168,000 1929
Japan: Voluntary insurance................... 62,938,200 1928-29
Lithuania (Memel Territory): Com­
pulsory insurance...............................
141,645 1929
Luxemburg: Wage earners.....................
285,524 1928
Netherlands:
1930
Compulsory insurance_____ _____
7,625,938 / 1929
Voluntary insurance._.......... .......... ►
\

*669,471
0
5,500,000
178,036

•114,709
174,588
(»)

11,284

*25,148
50,000

416
3,830

(3)
951

27
*20

133,257
223,080

______—

25,769

61

2,547,099 j
*179,264 i

i Includes those receiving survivors’ benefits also.
JIncluded with insured,
aNo data.
Present.”
« Data are for 1930.
•Wage earners.
7Salaned employees.
•Under health insurance acts; figures for old-age insurance slightly less.
•Estimated Eskimo population,
i®Under social insurance.
« Data are for 1928; includes those receiving survivors* benefits also
* Includes 41,504 miners.
>
•Includes 2,650 blind.

(3)
(3)

113
*127
(3)

27
78

107
33

(3)

60

98

PENSIONS AN D IN SU RA N CE IN FOREIGN COUNTRIES

Table X.—Extent of coverage and benefits of old-age pension and insurance
systems in specified countries— Continued

Country and system

Year to Number
which of persons
Population figures covered by
system
apply

Insured
264,089
Newfoundland: Pensions..................... .
New Zealand: Pensions..... .................. . 1,407,165
791,469
Paraguay: Railway employees............. .
Poland:
Salaried employees......................... .
Manual workers (former German
territory)..................................... .
Railroad workers (former German 30,212,962
territory)..................................... .
Miners (former Austrian territory)..
Portugal: Wage earners and salaried
employees.......................................... . 5,628,610
South Africa, Union of: Pensions_____
6,933,652
Spain: Compulsory insurance.............. 22,760,854
Sweden: Compulsory insurance...........
6,120,080
Switzerland:
Canton of Neuchatel___ . ___ ____
Canton of Vaud..................- ........._.
(3
)
Canton of Glarus........- ..................
(3
)
Canton of Appenzell a/Rh.............
(3
)
Uruguay:
General system................................
Public-service employees................ .
Bank employees.............................
1,850,129
Limited-liability-company employ­
ees........................................ ......
Journalists- . . . . . . . . . . . ___________

0

Aver­
age
yearly
old-age
and
inva­
lidity
Survivors benefit

Number of
beneficiaries

0

(\ l6

3,000
«26,909
95

1928

225,081

1,854

3,245

1147

1928

926,000

70,066

45,909

119

1928
1928

86,586
11,325

5,211
3,687

9,080
927

136

3,200

1931

0

,

364

0

3,395,212
3,728,000

1929
1929
1929
1928

11,523
52,503
19,055
38,604

1930
1930

200

11 2 000,000

1930
1929

1930
1930
1929

$50

0

0

51,500
1,787

157,900
4,100

120

i* 139
318,000
884
297

33,828
2,746
71
215

11

«86

0
0

43
106
40
31

33

n 124
is 99
594

0

1,141
428

1Includes those receiving survivors’ benefits also.
3No data.
‘Present.”
*Data are for 1930.
1 Estimated.
1
12 White,
i* Colored.
h Natives of Uruguay,
i* Foreign born.

Principal Features of Laws
The following table shows the main provisions of the laws in each
of the 39 countries having such systems.

T able 2.— Principal provisions of old-age pension and insurance systems in foreign countries
Contributions

Extent of system
Country, and
date of original Type or system
law
Argontina:
Law of 1919.. Compulsory
insurance.

Groups covered

Number of per­
sons covered

Wage earners and salaried employees 143,843 in 1929..
on railways.

Benefits
Conditions for receipt of benefits

Employer

Insured

5 per cent of wages up to 1,000 pesos ($425) 8 per cent of pay of employee Any deficit___
up to 1,000 pesos ($425)
per month; first month’s pay; first
per month.
month's increase in pay.
..do..

Survivors

Ordinary: Age, 50 years; 30 years' service; optional at Ordinary: Vary according to salary; minimum, average pay for last 5 years Half of benefit of deceased—mini­ National Fund for Retirement
45after 30years’ service, with reduced benefit. Volun­
up to 120 posos ($51) per month; maximum, 754 pesos ($320). Voluntary:
mum 100 pesos ($42)—of which
Annuities and Pensionsof Rail­
tary: Age, 50years; 10years’ service. Duty disability:
2 por cent of ordinary benefit for each year of service. Duty disability: 10
half to widow and remainder to
way Employees.
No age or service requirements.
per cent of ordinary benefit for each year of service up to maximum.
other dependent relatives.
Ordinary: Age, 50 years; 30 years’ service; optional at 45 Ordinary: Vary according to salary; minimum, 95 per cent of average pay for Half of benefit of deceased, of National Fund for Retirement
after 30years’ service,with reduced benefit. Voluntary:
last 5 years up to 100 pesos ($42) per month; maximum, 745 pesos ($316).
which half to widow, and re­
Annuities and Pensions.
Age, 50 years; 10 years’ service. Invalidity: 10 years'
Voluntary: 2 por cent of ordinary benefit for each year of servico. Inva­
mainder equally to children and
servico. Duty disability: No age or sorvice require­
lidity and duty disability: 5 per cent of ordinary benefit for each year of
parents if any, otherwiso all to
ments.
widow.
service.

ft age camera and salaried employees 41,908 in 1929..
s
of public utilities.

Law of 1929. .....d o ........

Employees of privately owned banks.. 9,205 in 1929..

From 5 por cent on monthly salaries up to 8 per cent of salaries.._____ None..............
500 pesos ($212), to 7 per cent on salaries
from 1,000 to 1,500 pesos ($425 to $637);
first month's pay; first month’s increase
in pay.

Ordinary: Age, 50 years; 30 years’ service; optional at 45 Ordinary: M in im u m ,______
___ do............................ ............ Bank Employees’ National Re­
after 30 years’ service, with reduced benefit. Volun­
($212); maximum, 975 pesos ($41-,. ____
tirement Fund.
tary: 20 years’ servico. Invalidity: 10 years' servico.
fit for each year of service. Invalidity: 3W per cent of ordinary benefit for
Duty disability: No age or service requirements.
each year of servico up to 30. Duty disability: 40 per cent of average pay
for last 5years, plus 2 per cent for each year of service up to 30.

Law of 1923.. .......do______

Wage earners and salaried employees Not yet in opera­
tion.
of industrial, mercantile, and print­
ing and publishing firms, and of
merchant marine.

5 per cent of pay up to 1,500 pesos ($637); 5 per cent of wages.
first month’s pay; first month’s increase
in pay.

Not decided..

Province of
Mendoza—
Law of 1924.. Compulsory
insurance.
Australia:
Law of 1903.. Pension..
Austria:
Law of 1926.. Compulsory
insurance.

All inhabitants......

..do.

All inhabitants except Asiatics, and
aborigines of Australia, Africa, New
Zealand, and islands of Pacific.
Salaried employees...

No data___

..do.

..do.

None.................................. Entire cost..

228,882 In 1929.... 4 per cent of basio pay (includes accident Same as from insured..
insurance also).

Agricultural laborers..

(.supersed­
ing law of
1925).

.......do.............

None..

4 per cent of wages..

3 months’ wages..

Bureau of labor protection
Department of Labor.

No data...

Board of 5—
Director of Depart­
ment of Labor, 2 members of
legislature, and 2 workers
elected by labor unions.
Commonwealth Commissioner of
Pensions, and deputy com­
missioner in each State.

10 times basic daily wage (maximum 43 schillings ($6.75) per month); pins
State grant. Invalidity: After 104 contributions, <H times basic daily
j
wage (maximum 32 schillings ($4.50) per month); after 500 contributions,
10 times basic daily wage (maximum 43 schillings ($6.75) per month); also
children's allowance and State grant.

Widow, half of benefit of do* Wage Earners* Insurance Insti­
ceased; half orphans one-fourth
tute.
and full orphans three-eighths
of benefit; also State grant.
-do..

District agricultural insurance
institutes.

According to age, from 50centimes to 1 Underground workers: Age, 55 yoars; 30 years’ service. 6,000 francs ($166.80) per year, plus 3,403 kilograms of coal (or cost of produc­
Surface workers: Age, 60 years; 30 years' service........ . tion thereof, in cash).
franc (2 to 3 cents) for each franc con­
tributed. Maximum, 258francs (58);
additional benefits; administrative
expenses.

Widow, 4,700 francs ($130.67) per National Miners' Pension Fund,
under Ministry cf Industry,
year, plus 3,400 kilograms of coal
Labor, and Social Welfare.
(or cash value thereof). Half
orphans, 360 francs ($10) per year
for first child and 450 francs
(12.51) for each additional child
up to 8; full orphans 720 franks
($20) each.

In general, 50 per cent of amount of Ago. men 65 years, women, 60; optional at earlier age,
l>onefit; maximum, 1,200francs ($34)
with reduced benefit.
per year per benefit.

Widow, not to exceed half of bene­ National Fund for Pensions to
fit of deceased. Orphans, 240
Employees; and General Sav­
francs ($6.67) per year, each.
ings and Retirement Fund
under Ministry of Industry,
Labor, and Social Welfare.

Wage earners (except miners) and in* No data...
dependent workers.

..do___ . . .

i Board of directors of social wel1 fare funds.

Age, men 65 years, wornen 60, after 5 years' contribu­ 35 per cent of basic pay up to 400 schillings ($56) per month, pins 1 per cent Widow, hairof benefit of deceased. Central Employees' Insurance
tions; 60 and 55years, respectively, after 10 years' con­
or basic pay for each contribution year. Total disability: Minimum, 75
Half orphans 12 per cent, and
Institute.
tributions. Invalidity: 5 years’ contributions.
per cent of basic pay.
full orphans 24 per cent of basio
pay. each. Maximum survi­
vors' benefit, full benefit of de­
ceased.

Age, 65 years; 500 weeks' contributions. Invalidity:
101 weeks' contributions.

Weekly contributions of 10 per cent of
basic daily wage.

Not decided..

Age, men 65 years (60 years in case of permanont dis­ Maximum, £52 ($253) a year, reduced b y £ l ($4.87) for each £10 ($49) of prop­ None....
ability), women 60; 20years' continuous residence; good
erty over £50 ($243), exclusive of home.
charactor; property not over £400 ($1,947).

>Grant of 6 schillings (84 cents) per Age,65 years; 500 weeks' contributions. Invalidity: 104 Old age: 10times basic daily wage (maximum, 84schillings ($11.82) per month),
month for insured and from 1.50 to 3
weeks’ contributions, of which 52 were during last 5
plus State grant. Invalidity: After 104 contributions, 6# times basic daily
years; loss of two-thirds of earning capacity.
schillings (21 to 42 cents) for sur­
wage (maximum, 56 schillings ($7.88) per month); after 500 contributions,
vivors.
sa-ue as for old age; also children's allowance and State grant. Total dis­
ability: Regular benefit plus 50 por cent.

Weekly contributions of 7 per cent of basic
daily wage.

-do__. . . . . . Miners.............. ............................... 457,867 beneficia­ 3 per cent of wages..
ries in 1928.

Law of 1930
(supersed­
ing law of
1921).

Age, 60 years; citizens of Argentina with 15 years' resi­ 30 pesos ($13) per month____
dence in Argentina or foreigners with 30 years' resi­
dence therein; 10 years' residence in Cordoba; income
not over 3Qpesos ($13) per month; not convicted of
any crime.

50 centavos (21 cents) per 50 centavos (21 cents) per month for Age, 65 years; citizens of Argentina with 15 years' con­ 50 pesos ($21) per month....
tinuous residence in Mendoza, or foreigner with 25
each employee by State and local
month for each employee.
governments, as employers; revenue
years' residence; no other source of income; not con­
from specified taxes.
victed of any crime.

Law of 1928..

Law of 1930

Entire cost...

Not decidod.................. ........ .............................................................. .....

.do.

Wage earners (except agricultural Not yet in opera*
tion.
workers).

Belgium:
Law of 1930
(supersed­
ing law of
1920).

None___

-do..

..do.

Law of 1927.. .......d o ....

..d o__ . . . .

N one.._________ . . . . _______ ...

None as yet—

Insured

Law of 1921.. ___ d o ........

P rovin ce of
Cordoba—
Law of 1920., Pension..

,.do.

By whom administered

Government

Wage earners: Vary according to wage Same as from insured.
class, from 2.50 to 12.50 frane3 (7 to 35
cents) per month. Independent work­
ers: 1.5 per cent of annual income tip to
12,000 francs ($334); minimum annual
contribution, 60francs ($1.67) for women,
120 francs ($3.34) for men. Higher rates
for hazardous industries.

Salaried employees...

3 per cent of annual salary up to 18,000 4 per cent of salaries; maxi­ Varies according to period for which
insured has contributed; maximum,
mum contribution 720
francs ($£00); maximum contribution,
1,200 francs ($34) per year per bene­
francs ($20) a year.
540 francs ($15) a year.
fit.

Age, men 65years, women 60; optional at 55 and 50with
reduced benefit.

Vary according to amount and period of contribution..

Widow, not to exceed half of bene­
fit of deceased.
83360*— 32.

General Savings and Retirement
Fund, and National Fund for
Pensions to Employees.
(Fact* p. 98.)

No. 1

T able 2.— Principal provisions of old-age pension arid insurance systems in foreign countries— Continued
Contributions

Extent of system
Country, and
date of original Type of system
law

Bolivia:
Law of 1928.

Compulsory
Insurance

Brazil:
Law of 1031 — .-do—
192

law of

Bulgaria:
of 1024.

Groups covered

Bank employees.. . . . . . . . . . . . . . . . .

Number of per­
sons covered

Insured

No data___ . . . . . 1 per cent of salary, plus fines or deduc­ 2 per cent of net profits, 20 None___
per cent of charges on pro­
tions for absence or bad conduct.
tested notes, 6 per cent of
penalty for overdue notes,
and extra contributions.

Employeesof public utility companies. 140,43$insured in 3 to 6 per cent of wages; first month’s l H per cent of gross income, Revenue from increase in existing
rates; fines paid by insured and
payable in monthly in­
wages; first month's increase in wages.
1930.
employers.
stallments at least equal
to contribution of insured.

All persons residing In Canada.__

10,183 contracts According to age and amount of annuity N o n e _ .......
in 1930.
desired.

Law of 1927 Pension-------

All British subjects residingin Canada. 67,930 pensioners Nona-

Law of 1
Compulsory
insurance.
(supersed­
ing law of
1907).

Employees of Government railways— No data— . . . .

Chile:
Law of 1924..

Law of 1925.

Survivors

20 years’ service. Duty disability: 10years' continuous Vary, according to years of service, from 70to lOOpercent of last salary. Duty From 6 months’ salary, after 5 Bank Employees' Retirement
or 16 years’ noncontinuous service.
disability: 60 per cent of last salary, plus 10 per cent for each 6 years*
years* service, to full benefit of
Annuities and Pension Fund.
service over 10; payable for 6 years.
deceased (for 6 years), after 30
years’ service.
,— . rs; 30 years' service; 6 years' contributions,
rotal disability: 5years' service.

_ for last 3 years; minimum 200milreis 50 per cent of benefit, if deceased Administrative council of 4 or 6
v*»): maximum, 3,000 milreis ($359) per month. Total disability: Onehad 5 years' service or more;
members, half representing
thirtieth of average pay for last 3 years, for each year of service. Also
lump sum, varying with contri­
employees and half employer.
medical treatment and medicines.
butions, if less than 5 years’
service.

Same as from insured___

Age, 60 years; 1,040 weeks' contributions; optional at Basic amount, varying with wage class, from 1,600 to 6,000leva ($11 to $43) per No data..
40. with reduced benefit Invalidity: 166 weeks' con­
year, plus 1lev (0.7 cent) for each week of contributions over 156. Invalidity:
tributions.
Basic amount same as for old age, plus 2 leva (1.4 cents) for each week of
contributions over 156.

Administrative expenses__

None________

From $10 to $5,000 per year..

Directorate of Labor and Social
Insurance, and Social Pensions

On death of insured before time Superintendent of Government
specified, annuity paid to de­
annuities, under Department
pendents.
of Labor.

3 per cent of pay for first month, 1M per
cent thereafter.

Half by Federal Government; other Age, 70 years; 20 years' residence in Canada; 6 years’
residence in Province; annual income not over $366.
half, and administrative expenses,
by Province.

Maximum, $240 per year; may be reduced by amount of private income over None_______________________ Provincial authorities and Do$125.
minion Department of Labor.

(As employer) same as from insured; Age, 65 years; 15 years' service. Invalidity: 60 years;
20 years' service. Duty disability: 10 years' service.
maximum $100,000 per year.

-----do_______________

1 per cent of highest average wage during any 10 consecutive years, for each
year of service; minimum, $25 per month.

No data..

Committee—7 officers of rail­
roads and 2 representatives of
railroad labor organizations.

Vary according to period and amount of contributions. Invalidity: Full wage 300pesos ($37) for funeral expenses;
if insured 10 years or more, 75 per cent if from 5 to 10 years, and 60 per cent
return of unexpended amount to
If less than 6 years; also medical treatment and medicines.
credit of deceased, If he so di­
rected.

Central Fund for Compulsory
Insurance and local tands.

..do..

Age, 60 years, or 30 years’ service..

Amount to credit in fund, with 5 per cent interest_ ___
_

Maritime wage earners and employees. About 60,000____ 3 per cent of pay up to $500per month; first 1H per cent of pay roll____
mo.nth’s pay or 2 per cent of daily pay

..do-

Czechoslovakia:
Law of 1906
(form er
Austrian
law).
Law of 1921..

Insured

Wage earners, Independent workers, 1,203,600 insured Wage earners, 2 per cent of wages; inde* 3 per cent of w ages..«— — For wage earners, 1 per cent of wages; Age, 65 years_____ _______ . . . _____ . . . — . —
for independent workers, etc., 3>£
pendent workers, etc., ZMper cent of av­
in 1931.
and tradesmen, with earnings or in­
erage income.
per cent of average income; revenue
come of not over 8,000 pesos ($974)
from special taxes.
per year*

Cuba:
Law of 1937.

Law of 1929
(supersed­
ing laws of
1921 and
1923).

By whom administered

Government

Employer

Wage earners and salaried employees.. 210,000 to 230,000 From L50 to 4leva (1 to 2.8 cents) per week, Same as from insured__
according to wage scale.
insured.

Canada:
Law of 1903- Voluntary in*
surance.

Benefits
Conditions for receipt of benefits

Ordinary: Age, 60 years, after 20 years' service; at any
age, after 25 years’ service. Voluntary: Age, 60 years;
10 years’ service.

Ordinary: Vary according to average pay of last 2 years; minimum, 75per cent If In need, benefit of deceased, Special board—
chairman, and 2
of average pay up to $100per month; maximum, $150per month. Voluntary:
half to widow, and half to
representatives each of employ­
children or parents, Ifany, other­
3 per cent of ordinary benefit for each year of service.
ers and of insured.
wise all to widow.

Wage earners and employees of rail­ 45,000 insured.... 3 per cent of pay; first month’s pay; first 2 per cent of pay roIL..___
month's increase in pay.
roads and street railways.

Ordinary: Age, 65 years, after 25 years' service; 60 years, Old age and disability: Vary according to pay of highest-paid year; minimum, None_____ . . . . . . . ____ .......
65 per cent on salaries of $100 or less per month; maximum, $200 per month.
after 30 years' service; at any age,after 35years' service.
Voluntary: 2 per cent of pay for each year of service.
Voluntary: Age, 60 years; 10 years' service. Duty dis­
ability: No age or servico requirements.

Salaried employees^......

Salaried employees...___

-do..

Denmark:
Law of 1927 Pension...
(supersed­
ing laws
dating back
to 1891).

Wage earners™.

80,220 insured in
1930.

6 per cent of pay; half of first month’s pay; 6 per cent of salaries......
first month’s increasein pay; 25 per cent
of profit-sharing bonus.

309,148 In 1930, Vary according to annual earnings; mini­ Same as from insured.....
tynri 60.226 Ip*
mum, 6crowns (18cents); maximum, 125
crowns ($3.70) per month.
sured with pri­
vate companies
under law.
2,305,959 in 1929.. Vary according to wage class; tninim^m>
..do..
1.30 crowns (3.9 cents); maximum, 4.20
crowns (12.6 cents) per week.

All citizens resident in Kingdom or 99,461 pensioners Noneu...
havinghad service on Danish vessels
in 1929.
for previous 6 years.

None___

..do_

Grant of600crowns ($12) for each bene­
fit.

Age. men 65years, women 60; 60 months' contributions. 3,600 crowns ($107) per year, plus supi
from 2 to 50 crowns ($0.06 to $1.48), plus
Disability: Age, men 60 years, women 66.
child.

, _ j, according to salary,
itn of total benefit, for each

100weeks' contributions. Disability: 100 650 crowns ($16) per year, plus supplement varying, according to wage class,
from 0.60 crown (1.8 cents) to 1.75 crowns (5.2 cents) for each week of con­
tributions, plus one-tenth of total benefit for each child, plus State grant.

Any unexpended balance to credit Welfare Board for Private Em­
of deceased.
ployees.

Do.

Widow, half of benefit of deceased1 General Social Insurance Insti­
,
half orphans one-fourth and full
tute.
orphans one-half of benefit.
Widow, If disabled or 65 years of
age or with 2 or more dependent
children, half of benefit of de­
ceased, for life; Ifable-bodied and
under 65, lump sum equal to 1
year's benefit. Half orphans
one-fifth and fall orphans twofifths of benefit of deceased,

State, seven-twelfths of cost; local Age, 65 years (62 years, If earning capacity reduced by Vary, according to district, sex, and marital status, from 378 to 1,296 crowns None___
($101 to $347) per year.
governments, remainder of cost and
one-third or more); not paupers or vagrants. For full
administrative expenses.
pension, private income not over 100 kroner ($27).

Do.

Local governments, tinder super­
vision of Minister for Home
Affairs.
83360°— 32.

(Face p. 98.)

No. 2

T able 2.— Principal provisions of old-age pension and insurance systems in foreign countries—Continued
Contributions

Extent of system
Country, and
date of original Type of system
law

France:
Law of 1850.

Voluntary in* All residents-------surance.

Law of 1005., Pension....

Law of 1908-

Groups covered

All citizen s.........

Compulsory Registered seamen.,
insurance.

Number of per­
sons covered

800,000 annui­
tants in 1930.

Benefits
Conditions for receipt of benefits

Insured

Government

Employer

Vary according to age and amount of None____
annuity desired. Minimum contribu*
tion 3 francs (11.7 cents).

566,000 in 1929___ None—. . . ___ .. . ______________ _—

-do..

3.5 per cent of wages__

170,000 in 1930.... 5 per cent of wages...

None—

Age, 50years...

Cost divided among commune, De­ Age, 70 years; citizen; permanent incapacity partment, and National Govern­
ment, according to length of resi­
dence of pensioner.
Remainder of cost__. . . . . . . . _______

----- do__

By whom administered

Insured

Survivors

Maximum 30,000 francos ($1,176) per year.,

Refund of any unexpended Special committee of 22members.
amount to credit of deceased, if
policy so provides.

30 to 60 francs ($1.18 to $2.35) per month, but pension added to resources must N o n e .........__. . . . . . . . . ______ Departmental or municipal au­
not exceed 2,400 francs ($94) a year.
thorities.

Ordinary: Age, 50 years; 300 months' service. Volun­ Basic amount varying, according to wage class, from 3,600to 7,200 francs ($141 Widow and/or children, half of National Disabled Seamen's In­
tary: Age, 50 years; 180 months' service or more, with
to $282) a year, plus supplement based on years of service, plus allowance for
benefit or deceased. Special
stitution.
reduced benefit. Disability: 180 months* service.
each child.
pensions of 460 francs ($18) a
year, In needy cases.
..do..
Basic amount, varying from 3,100 to 5,600 francs ($121 to $219) a year, plus sup­ No data____________________ :
Do.
plement based on years of service, plus allowance for each child.

Do........ . ___ do...

Cooks, stewards, and other unregister­ 86.000 In 1930...
ed ship’s personnel.

Do____ ....-d o .-.

Combined membership of 2 preceding 206.000 in 1930..
groups.

1 per cent of wages-----

4 per cent of wages....

-----do__

Permanent incapacity. Dependent relative of deceased No data_____________________________________. . . . . ________ . . . ____
insured who was permanently incapacitated.

Wage earners and salaried employees 446.000 in 1928..
on railroads.

5 per cent of pay; first month’s pay; first 15 per cent of pay roll.
month's increase in pay.

None___

Locomotive engineers and firemen: Age;. 50 years; 25 One-half of average pay of 3 highest-paid years, but not less than one-fiftieth of Widow and/or child
years’ service (or 15 years' service in that capacity).
average annual pay for each year of service.
benefit of c
Other employees: Age, 55 years; 25 years' service.
Invalidity: 15 years’ service. Duty disability: No age
or service requirements.

Law of 1909.

..d o...

Law of 1914.

..do---------- Workers in mines and quarries...

Law of 1923.

Germany:
Law of 1889..

__do...

Workers earning not over 18,000 francs 8,217,636 insured Vary, according to wage class, from 72 to
480 francs ($2.82 to $18.82) per year (in­
in 1930.
($706) per year.
cludes contributions for other types of
insurance also).

__do-

Wageearners(including domestic serv­ 18,000,000insured Vary, according to
marks (7.1 to 47.6 cenl
ants and home workers), crews of
in 1929.
German vessels, and assistants and
apprentices not eligible to salaried
employees' old-age insurance.

Law of 1923.

-do..

from 0.3 to 2 Sameas from insured, except
that in case of workers
per week.
earning less than 6 ranrire
($1.43) per week employer
also pays worker's snare.

-do..

Bank em ployees.........

66,067 insured In 45 per cent of cost...
1930.

,-do---------

Miners, salariedemployeesflarnfngless
than 8,400 marks ($2,000) per year,
and all wage earners.

British subjects for 12 years, with No data___
income of less than £49 17s. 6d.
($242.72) a year.

Age, 65 yesrs; 60 months' contributions. Disability: 60 Basic amount—480marks ($114) peryear—
plus 15per cent ofcontributions since Widow six-tenths and orphans Federal Insurance Office for Sala­
months' contributions; loss of half of earning capacity.
Jan. 1,1924, plus allowance for previous contributions. Disability: Same as
five-tenths of benefit of deceased,
ried Employees, under Minis­
for old age, plus 120 marks ($28.56) per year for each child.
exclusive of children's allowtry of Labor.

55 per cent of cost________ ----- do..

Basic amount—840 marks ($199) per year—
plus, for each month of contribu­
tions, an amount varying, according to wage class, from 30 to 1,100 pfen­
nigs ($0.07 to $2.62).

Wage earners about 5.1 per cent and sala­ For wage earners 3.4 per 75,000,000 marks ($17,850,000) in 1929... Age, 65 years, or permanent incapacity; optional, at 50,
cent, and for salaried em­
ried employees from 6 to 7.9 per cent of
after 300months' contributions.
ployees 4 to 5.3 per cent
pay.
of pay.

None..

None..

half of Railroad pension funds, under
supervision of Minister of Pub­
lic Works.

Age, 55 years; 30 years' service. Invalidity: Two-thirds 5,000 francs ($196) per year, plus 60 francs ($2.35) for each year of service above Widow,from 750to2,500francs($29 Council of 6 representatives each
incapacity; 10 years* service.
30. Invalidity: 3,600 francs ($141) per year.
to $98) per year. Orphans, from
of employers, insured, and the
200francs ($7.84) per year, if 1, to
State.
300 francs ($11.76) if 3 or more.
Subsidy based on estimated needs..... ________ j, but may be ,
_______ „ __________ 40per cent of average annual pay, at age 60 to 65years; proportionate reduction Death benefit: Lump sum equal to Ministry of Labor*
contributions. Voluntary: Age 55 years; 25 years' con­
at age 55. Invalidity: 40 per cent of annual pay, plus 1 percent for each year
20 per cent of average annual
tributions. Invalidity: 2 years’ contributions.
of service over 30; maximum 50 per cent of pay.
pay; minimum, 1,000 francs
($39); maximum, two-thirds of
average annual pay.
Annual bonus for each benefit; admin­ Age, 65years; 200weeks' contributions. Invalidity: Loss Basic amount—168marks ($40) peryear—
plus 20per cent of contributions since Widow, If 65 years of age or dis­ District insurance offices under
istrative expenses.
of two-thirds of earning capacity.
Jan. 1,1924, plus allowance for previous contributions, plus fitate bonus; also
abled, six-tenths of basic benefit
Provincial governments; Fed­
medical treatment and medicines.
of deceased, plus 12 per cent of
eral Insurance Office.
contributions, plus State bonus.
Orphans, five-tenths of basic
benefit, plus 10 per cent of con­
tributions, plus State bonus.

3,500,000 Insured Vary, according to salary, from 1 to 15 Same as from insured, except None..
that in case of employees
marks ($0.24 to $3.57) per month.
in 1930.
earning less than 50 marks
($12) per month, employer
also pays worker's snare.

-Great Britain:
Laws of 1908 Pension..__
to 1924.

Do.

4M par cent of wages..

Salaried employees earning not <
8,400 marks ($2,000) per year.

Law of 1911.

Do..

Same as from insured.

425.000 in 1929___ 5H per cent of wages-

..do.

Entire cost___

Widow six-tenths and orphans Bank Employees' Insurance As­
five*tenths each of benefit of
sociation.
deceased; total survivors' bene­
fit not more than full benefit of
deceased.

Wageearners: Basic amount—168marks(,
of contributions, plus 120 marks ($28.56)
Salaried employees: Same as for wage earnt
marks ($9.52) per month. Also medical treat

Widow, three-fifths of benefit of National Federation of Mine
deceased. Orphans of salaried
Workers.
employees, one-half of benefit of
deceased; orphans of wage earn­
ers, one-fifth of old-age benefit or
one-half of invalidity benefit
each.

ntage
Ate grant.
tis40

Age, 70 years; income less than £4917s. 6d. ($242.72) a 1 to 10s. ($0.24 to $2.43) per week, according to income..
year.

Law of 1925.* Comp«Jsory All wage earners 16 years and over, 16,500,000 under Men, 9d* (18 cents) per week; women, For men, 9d. (18 cents) per £4,000,000 ($19,466,000) a year, for 10 Age, 65 yean..
6d. (12 cents) per week. (Includes con­
week: for women, 7a. (14
years from 1926-27.
and nonmanual workers earning not
insurance.
health insur­
cents) per week. (Includes
tributions for health insurance also.)
over £250 ($1,217) per year.
ance acts in
contributions for health
1928.
insurance also.

10s. ($2.43) per week to insured; same amount to wife of insured between 65
and 70 years of age.

None________ _______________ Customs commissioners.
Widow, 10a. ($2.43) per week, plus Ministry of Health.
5s. ($1.22) for first child and 3s.
(73 cents) for each other child.
Fullorphans,7s.6d. ($1.83) per

83360*—32.

(Face p. 98.) No. 3

T a b le 2.— Principal provisions of old-age pension and insurance systems in foreign countries— Continued
Contributions

Extent of system
Country, and
date of original Type of system
law
Greece:
Law of 1922.

Compulsory
Insurance.

Law of 1923. ___ do___
Greenland:
Law of 1928.

Pension...

Guernsey, Isle of:
Law of 1923. -----do-----Hungary:
Law of 1928.

Iceland:
Law of 1909.

Compulsory
insurance.

-do..

Groups covered

Registered seam en.......__.«

Number of per­
sons covered
Nodata~

3 to 30 drachmas (3.9 to 39 cents) a month, Same as from insured.
according to class, plus assessment of
150 to 1,000 drachmas ($1.95 to $13.00)
in case of marriage.

All Greenlanders (except white per­ 10,000 Eskimo None..
population in
sons).
» No data~..__

—
-.-d o ..»«

All citizens, except those with annu­ 500,000 In 1931..
ities of at least 150 kroner ($40) per
year.

In capacity of citizen: Men, 1.50kroner (40 In capacity of citizen only..
cents), women, 0.75 krone (20 cents), per
year.

114,709 pension­ N o n e .....
ers in 1928 (in­
cludes 2,650
blind).

w of 1898.. Voluntary in­ Classes covered by compulsory in­ No d a ta .......... Minimum, 18lire (95 cents) a year___ . . .
surance, independent workers, and
surance.
members of liberal professions.

Japan:
Law of 1926.

- — do...........

Wage earners (including home workers 627,967 in 1929. To general fund, including other insurance Same as from insured..
and domestic servants) and salaried
an d 41,504
also: Wage earners, 1.714286 per cent;
salaried employees, 2.142857 per cent of
employees earning up to 6,000 peng5
miners.
1
---------*
pay. Mini-----— -------- * **™
($1,019) per year*
salaried —

Irish Free State:
Law of 1903. Pension..___ All citizens.......

Law of 1919.

None..

No data.

Survivors

________ _______ r ____________._____________________ Invalidity: Widow, 70 per cent of benefit of Seamen's Invalidity Fund.
Total, one-half of basic amount, plus one-thirtieth thereof for each year of
deceased, plus 10 per cent for
service over 10; partial, one-third of basic amount, plus two forty-fifths thereof
each child; orphans, 55 per cent
for each year of service over 10. Duty disability: One twenty-fifth of
of benefit of deceased, plus 15
basic amount for each year of service.
ger^cent for each orphan after
Amount set by special board..

_
Amount set by special board_ Ministry of National Boonomy.

State: 100 kroner ($27) if single and Age, 55 years; unable to support self; of good character__ Amount set by district council; average in 1929 was 102 kroner ($27) per year.. None..
150 kroner ($40) if married. District
council, remainder of cost.

District councils.

Entire cost_____ . . . . _________ ..... Age, 70 years; residence in Isle for 12 yeaxs after age 50, if Vary, according to pensioner's means, from 1 to 8s. ($0.24 to $1.95) per week..
native, and for 20 years after age 45, if naturalized;
yearly income not over £40 ($195).

States Old Age Pension Author­
ity.

0.50 krone (13 cents) for each taxable Age, 60 years; unable to provide for self..
person.

Vary, according to means and need, from 20 to 200 kroner ($5.36 to $53.60) per N on e.......
year.

Grant of not over 100 lire ($5.26) per Ace, men 60 years, women 55 years; 10 years’ insurance. Vary with age at which Insured and amount of contributions---------- -------- In case of death of insured before National Fund for Social Insurbeginning to draw benefit, re­
year for each benefit. Invalidity:
Invalidity: 6 years' insurance.
fund of contributions.
Not over 120 lire ($6.31) per year for
each benefit.

None..

Administrative expenses...

Same as from insured____

Grant of 961its ($9.60) for each benefit.. No data..

-do._____

No data.
Revenue commissioners, under
Department of Finance.

Age. 70 years (50 years, if blind); residence in British Vary, according to private income, from l to 10s. ($0.24 to $2.43) per week____
isles for 12 years after age 50, if native, or 20 years, if
not native; means not over £39 5s. ($191) per year.

Voluntary In­ All persons between 12and 80 years of 178,030 contracts Vary according to contract.....--------age.
surance.
in 1928-29.

Wage earners and salaried employees 25,148 insured in 2 per cent of pay.,
over 14 yeaxs of age.
1930.

...d o ....

Subsidy of 4,000,000 pengS ($699,600) Age, 65 years; 400 weeks’ contributions. Invalidity: 120 peng5 ($21) a year, plus 19 per cent of annual contribution for salaried em­ Widow, If 65 or a
Hungarian National Social In­
for 1933-34, increasing 5 per cent a
200 weeks' contributions; loss of earning capacity—
ployees and 24per cent for wage earners: also 5 percent of totalbenefit for each
valid, half of beneBt of _
surance Institute and Private
wage earners two-thirds, salaried employees one-half.
otherwise, lump sum equal to
year for next 50years; administrative
child up to maximum of 20 per cent. Miners: 20 per cent of basic pay (after
Employees' Insurance Insti­
expenses.
Miners: Age 65 years; optional at 60 after 40 years’
his annualbenefit; half orphans,
10 years' contributions), plus 2 per cent for each year of contribution over
tute.
10; maximum, 80 per cent after 40 years' contributions.
contributions or 25 years' service underground.
15percent of benefit of deceased,
each; tall orphans, 30 per cent
each. Miners: Widow, 50 per
cent of benefit of deceased; or­
phans. 15 Der cent: T
naxiirmm
survivors' benefit, full benefit of
deceased.

In case of death of insured before
beginning to draw benefit,
widow or orphans 50lire ($2.63)
per month for 6 months.

100 lire ($5.26) per year for each bene­ Age, 65 years; 240biweekly contributions; optional at 60,
fit; administrative expenses.
with reduced benefit. Invalidity: 120 biweekly con­
tributions; loss of two-thirds earning capacity*

of 1923.. Compulsory
Insurance.

Law of 1931..

None..

service. Invalidity: 10 years'
;y: No age or service require-

Compulsory All employees between 15 and 65 years About 5.500,000 Vary, according to earnings, from 0.50 to Same as from insured.
of age in industry, trade or profes­
3 lire (2.6 to 15.8 cents) biweekly.
Insured in 1929.
sions, including domestic service,
home work, agriculture, and publio
service.

Lithuania
(Memel Terri-

Luxemburg:
Law of 1925
(supersede
ing law of
1911).

Insured

Receipts from sale of printed matter Age, 65 years; 25
service. Duty
and fees for licenses, etc.
ments.

None------ . . . . . -----------.... Entire cost_______...

....-d o . »

By whom administered

Government

Employer

Insured

Wage earners and salaried employees 191,925 insured From 3 to 6 per cent of pay, as fixed by .....d o .
in 1927-28.
in industrial, handicraft, and com­
board (covers other types of insurance
mercial establishments, building,
also).
and transportation.

British subjects for 10 years....

Benefits
Conditions for receipt of benefits

Immediate annuities: Age, 40 to 80 years. Deferred Under installment-contrlbution plan: Minimum, 120
2,400 yen ($1,198). Under single-payment plan:
annuities: Age, 50, 55, 60, and 65 years as stipulated
maximum, 2,400 yen* per year.
in contract.

> maximum, No data.......
;
12 yen ($6);

168llts ($16.80) per year, plus 15 per cent of capital paid In, plus State grant...

DO.

Post office.

Widow, half of full benefit of de­ Special board—3 representatives
each of employers and workers.
ceased; orphans, one-fifth each;
maximum survivors’ benefit,
150 per cent of basic benefit of
deceased.

Wage earners and salaried employees 50,000 unde r __..d o .— —..
over 16 years of age earning not over
social insurance
10,000 francs ($278) per year.
in 1928.

.....d o .

Grant of varying amount, of which Age, 65 years: 2 ,4 00 working-days' insurance. Invalidity: Basic amount, 25 per cent of average annual earnings, plus supplement of 6per Widow, if 55, invalid with 3 chil­ Old-Age and Invalidity Insur­
dren or 1 child totally incapaci­
ance Institute.
cent for each year of insurance over 4, plus State grant, plus children’s allow­
1,200 working-days’ insurance; loss of two-thirds of
commune pays 20 per cont.
tated, half of benefit of deceased;
ance. Invalidity: Same as above, except that supplement is at rate of 8 per
earning capacity.
orphans, one*fifth of benefit;
cent.
maximum survivors* benefit,
full benefit of deceased.

All salaried employees under 25 years Not yet in oper­ 6 per cent of pay.....
of age not under law of 1925.
ation.

----- do--------

Grant varying, according to amount Age, 66 yeaxs; 60 months' contributions.....--------- -—
of benefit, from 250 to 500 francs ($7
to $14) per benefit; half of cost of
administration.

3,600 francs ($100) per year, plus 14 per cent of total contributions, plus 1,200 Widow, six-tenths of benefit of Commission—at least 5 repre­
sentatives each of employers
deceased; half orphans, twofrancs ($33) for each child, plus State grant; maximum, five-sixths of highest
and workers and 1 of State.
tenths; full orphans, four-tenths;
annual earnings.
maximum survivors’ benefit,
full benefit of deceased.
S33C0*— 32. (Face p. 08.) No. 4

T a b le 2.—Principal provisions of old-age pension and insurance systems in foreign countries— Continued
Contributions

Extent of system
Country, and
date of original Type of system
law
Compulsory
Netherlands:
Law of 1913. J insurance

Groups covered

Wage earners over 14 years of
earning not over 2,000 florins '
per year.

Number of per­
sons covered
2,547,099 insured N one....______
in 1930.

All citizens resident in Norway or sail* Not yet in opera­
tion.
ing under its flag at least half of time
since reaching 16 years of age.

Paraguay: _
Laws Nos. Compulsory Railway e m p lo y e e s ...............
641,842, and insurance.
1076.
Poland:
Old Prussian
law.

916 Insured...

Government

Employer

Insured

Law of 1019.. Voluntary In* All Netherlander, wherever residing.. 179,264insured in Vary according to age at which insured,
1930.
and amount of contract.
surance.
Newfoundland:
Law of 1911.. Pension....... All residents of Newfoundland for 20 3,000 pensioners. None_______
years.
New Zealand:
,995
----- d o .........
All residents of New Zealand for 25
Law of 1898.
continuous years, exceptcertain Ma­
oris, aliens, and Asiatics.
Norway:
Law of 1923.

Benefits
Conditions for receipt of benefits

N o n e .« .................* ...i

..do..
..do..

31,600,000 florins ($12,703,000) per year. As provided In contract..
Entire cost............ .
..do..

5 per cent of earnings up to 6,000 pesos 2 per cent of pay roll and None_________________ ____ ____
amount equal to 2 per cent
($136); first month's pay; first month’s
on all freight transported.
increase in pay.
No data___

Old Gorman
law.

Common laborers on railroads (former 86,586 in 1928...
German territory).

Half of required contribution......

Half of required contribu­ ----- do. . ....
tion plus 25 per cent of
total contributed.

Old Austrian
law of 1889.

Miners (former Austrian territory).

-d o -

Portugal:
Law of 1919.

Law of 1928

11,325In 1928------ Subject to by-laws of association, but not No data__
less than 6.20 zlotys (70 cents) per
month.

No data__. . . . _
_

.do..........

Salaried employees between 16 and 60 225,081 insured Vary, according to salary, from nothing to Vary, according to salary, None...
from two-fifths to all of 8
three-fifths of 8 per cent of salary (covers
in 1928.
years of age.
per cent of salary (covers
other types of insurance also).
other types of insurance
also).
All persons between 15and 65 years of No data...— . . . .
age earning less than 900 escudos a
year.

All persons (Including domestic ser­
vants) between 15 and 65 years of
age earning not over 9,000 escudos a
year.

per cent of earnings up to 900 escudos 6 per cent on wages or sal­
per year.
aries up to 900 escudos
per year.

Estimated at 2,- 2Hper cent of earning^....,

Same as from Insured.

None__ . . . . . . . . . . . . . . . . .

Widow, one-fifth more than basic National Insurance Bank, Insur­
benefit of deceased; orphans the
ance Board, and State labor
boards.
No data..

Do.

Widow, same pension_____ _

Age, men, 65 years; women, 60; but if 2 or more children Maximum, £45 10s. ($221) per year (reducible in accordance with income and None..—
under 15, men 60 years, women 55; income of less than
value of property), plus maximum of £13 ($63) if 2 or more dependent chil­
£97 10s. ($474) per year if single and £143 ($696) if
dren.
married.

No data,......— .* ...........____________________
___ do.
...... do........ .

Age, 65 years; or men 60 years, 480 months' contribu­
tions, women 55 years, 420 months’ contributions.

Department of Finance.
Pensions Department

60 per cent of difference between income and basic sum (1. e., such sum that Death benefit 80 kroner ($21)..
60 per cent thereof secures the necessaries of life).

Ordinary: Age, 45 years; 25 years’ service; optional at Ordinary: Average annual pay for last 5
earlier age, after 25 years' servico, with reducedbenefit.
ordinary benefit. Disability: 40
Voluntary: At over 45 years, after 10 years’ service.
ity: 60 per cent of ordinary
Disability: 10 years' service. Duty disability: No age
or service requirements.

13.33 escudos for each soldier recruited; Age, 70 years; 1*410 weeks' contributions...
administrative expenses.

temnotb
yetIn

As provided in contract; maximum, 20 florins ($8) per week.... . . . .. . . . . . .

Age, 75 years; 20 years* residence; pension necessary for $50 a year.___. . . . ___. . . . . _______________________ __________. . .
support.

Half by State (maximum, 300 kroner Age, 70 years.
($80) if single and 450 kroner ($121) if
married), and half by local govern­
ments.

■d o ..... . . . . . . . . . ......
.

No data..

Law of 1928.

Survivors

From 0.25 to 0.60 florin (10 17,623,000 florins ($7,084,446) per year- Age, 65 years. Invalidity: 150 weeks’ contributions___ Basic amount—260 times total contributions, divided by number of weeks’
to 24 cents) weekly per
insurance—
plus 11.2per cent of total contributions, but not less than one-fifth
employee, according to
of basic amount; also medical treatment.
sex and age.

Manual workers (in former German 926,000 in 1928..
territory only).

..do_

By whom administered

Insured

State Insurance Institute and
local committees.

Voluntary: 20 per cent of Total survivors’ benefit, 50 per Board— representatives each of
2
benefit. Duty disabllcent of benefit of deceased.
employers and workers, and
chairman appointed by Presi­
dent.

Nodata^
..do.
Subject to by-laws, but not less than 240 zlotys ($27) per year....

No data....

No data.

.d o ....,

Do.

Widow, half of benefit of deceased; Miners* associations, under su­
full orphans one-half, half or­
pervision of Ministry of Labor
phans one-iburth of such benefit;
and Social Welfare.
maximum survivors’ benefit,
full benefit of deceased.

40per cent of basic salary, plus one-sixth of 1per cent for each month of contribu­ Widow, three-fifths of benefit of Association of Fund Offices and
deceased; half orphans one-fifth
tions over 120; maximum, three-fifths of basic salary.
local funds.
and full orphans two-fifths of
such benefit each.
Full benefit, total amount of annual earnings___

Age, 65 years; 480weeks’ contributions. Invalidity: 240 90 per cent on first 240contributions, plus 60 per cent on next 240 contributions,
plus 18 per cent on all subsequent contributions.
weeks’ contributions.

In case of death of insured before National Institute of
beginning to draw benefit, or­
and Welfare.
phans 10 escudos per month for
6 months, widow (without chil­
dren) 10 escudos per month for
5 months.
No data____ . . . . _____________

Do.

operation.

Hmwnnfn?

Law of 1912.

South A frlo a ,
Union of:
Law of 1928.. Pension......
Snain:
jLawof 1919.. Compulsory

Old Kingdom and Bessarabia: Speci­ Average of 620,000 Vary from industry to industry..
fied trades or professionsand workers
insured.
In industry, mines* and quarries.
Transylvania: Workers in commerce, industry, and mining. Bukowina: Workers in commerce or
industry.
All white residents of South Africa;
also colored (except Asiatics, Afri­
cans, Hottentots, Bushmen, Korannas, and American Negroes).

loners N on e...*.----- . — *------------

.do.

None...

___ ; 1,200 weeks’ contribuVary according to condition of national Old Rumanian law: Ag
budget.
tions. Invalidity: *' ) weeks’ contributions.

Entire cost..

Old Rumanian law: A fixed proportion of invalidity benefit; cost-of-living
bonus. Invalidity: 150lei, plus 0.10 leu for each week of contributions over
200; cost-of-living bonus.

Central insurance authority la
each section of country.

..do~

Age, 65years; income not over pension schedule; 15years* Vary according to private Income and whether white or colored, from £3 to £30 I'Tone....... . . . .. . . . . . . . . .. .
($15 to $146) per year.
residence in Union; British subject for 5 years.

Wage earners between 16and 65 years 3,395,212 Insured None, If under 45 years of age; if over that 3 pesetas (58 eents) monthly 1 peseta (19.3'cents) per month for each Age, 55, 60, or 65 years, according to typo of Insurance Maximum, 3,000 pesetas ($579) a year under alienated capital plan and 5,000 As provided in contract...
per worker, under 45years,
age, contributions vary according to
of age, earning not over 4,000 pesetas
in 1930.
pesetas ($965) under reserved capital plan.
worker under 45 years of age; over
chosen.
benefits desired; minimum contribution,
($772) a year.
m service at least 1 month
that age 5 per cent of worker's con­
1 peseta (19.3 cents) per month.
and 10centimes (1.9 cents)
tributions; maximum contribution
3 pesetas (58 cents) per worker per
year.

83360°—*32.

Commissioner of Pensions and
district pensions officers.
National Provident Institute.

(Face p. 98.)

No. 5

T a b le 2.—Principal provisions of old-age pension and insurance systems in foreign countries— Continued
Contributions

Extent of system
Country, and
date of original Type of system
law

Sweden:
Law of 1013.. Compulsory
insurance

Groups covered

Number of per*
sons covered

..do-

Canton of Glarus—
Law of 1916. Compulsory
Canton of App en zell
(Ext.)—
Law of1925__
Canton of BaleVille—
Law of 1930..
Uruguay:
Law of 1919.

Citizens between 17and 67years of age. 3,728,000 insured Vary, according to annual assessed in­ None..
come, from 3to 33 kroner ($0.80 to $8.84)
in 1929.
per year.

£2,503 insured Is
1929.

Vary according to benefits desired_____

All persons between 17 and 60 years of 19,055 insured In 6 francs ($1.16) a year..
age.
1929.

insured—plus supplement for low incomes. Averagebenefit fl929) 1 6 0 kronor
($43) per year. Invalidity: Basic benefit, plus supplement for low incomes,
plus children’s allowance.

-d o...

From 6 to 12francs ($1.16 to $2.32) per Age, 60 to 65years. Invalidity: Any age____
year, according to amount of benefit.

Vary according to amount of contributions; minimum, 6 francs ($1.16) plus
State grant; maximum, 3,000 francs ($579) per year. Invalidity: Vary
according to age and amount of contribution.

____do..

All persons between 20 and 60years of No data..__
age, resident in Canton for 2 years.

Vary according to sex and income, from ----- do________
60.40 to 112 francs ($9.73 to $21.62) per
year.

..do..

All natives; also foreigners and natural* 33,828 pensioners
ized citizens, with 15years' residence
in 1930.
in Uruguay.

-do-.

Unpaid contributions, by local govern­ Age, 67 yean. Invalidity: Any age...
ment; three-fourths of supplemen­
tary benefits by State and one-fourth
by communes and county councils.

Maximum, 300 francs ($58) a month.....

-do..

Do____

By whom administered
Insured

For old-age annuity: From 1.32 to 2.76 Age, 60yean™ ..
francs (25 to 63 cents) per monthly
benefit of 10francs ($1.93). according
toage. For death benefit: From 19
to 48 centimes (4 to 9 cents) per 100
francs ($19.30) of capital insured,
according to age. Also administra­
tive expenses.

10 francs ($L93) a year*

Law of 1928..

Yugoslavia:
Law of 1922.

-d o -

Government

..do______

All persons between 18 and 64 yean of 88,601 Insured in
age.
1928.

Do____

Law of 1925.

Employer

Insured

Switzerland:
Canton of Neuchatel—
Law of 1893. Voluntary in­ Residents of Canton and natives resi­ 11,623 insured In Vary according to ageat which insured—
1929.
dent elsewhere.
surance.

Cant on of
V audLaw of 1907.

Benefits
Conditions for receipt of benefits

..do..

8urvtvors

N one.....— ,

Death benefit: Lumpsum—mini­ Cantonal Insurance fond and
mum, 100 francs ($19.30); max­
local insurance committees.
imum, 10,000 francs ($1,930).

None_ _
_

Inva- From 180 to 300 francs ($35 to $58) a year. Invalidity: From 150 to 300 francs
($29 to $58) a year.

,.do_

1.50 francs (29cents) per inhabitant by Age, 65yearsCanton and 50 centimes (10 cents)
per inhabitant by local governments
per year.

Men, from 200 to 400 francs ($39 to $77) a year; women, from 150 to 300 francs
($29 to $58) a year.

..do..

Vary according to salary group and Age, men 65 yean, women 6 0 family responsibilities.

V&ry according to yean of contribution—
men, from 180 to 720 francs ($36 to
$139); women, from 150 to 600 francs ($29 to $116).

85,000 francs ($16,405) a year, and ad­
ministrative expenses, by Canton,
and 1 franc (19.3 cents) per inhabi­
tant by local governments.

20 centeslmos (20.7 cents) Revenue from special taxes..
per month for each wage
earner.

Royal Pensions Board and
local insurance committees.

Cantonal Insurance fund.

Cantonal Insurance fund and
local insurance committees.

Do.

Widows, death benefit of 500 Cantonal department of Inte­
rior and special committee.
francs ($97). Orphans, from 300
francs ($58), if 1 child, to 1,000
francs ($193) if 6 or more.

Age, 60 yean, or entirely disabled and in abject poverty.. Minimum, 96 pesos ($99) a year; maximum, 120 pesos ($121) a year— . . . . .. . . . None____

State Insurance Bank, General
Board of Direct Taxes, and
National Labor Office.

Publio-servioe employees and wage 61,600 insured In 4 per cent of pay; first month’s increase in 8 per cent of pay r o ll......... Revenue from special tax; any deficit. Ordinary: 30yean* service. Voluntary: 60 yean, after Ordinary: Vary according to income class; minimum, full pay, if wages are In order, widow, children, depend­ Board-3 representatives each of
employers, workers, and Gov­
earners.
ent parents, and dependent un­
193a
50 pesos ($52) or less per month. Voluntary and invalidity: One-thirtieth
pay, if pay is over 60 pesos ($52).
10 yean’ service, with reduced benefit, invalidity:
ernment*
married sisters, half of benefit of
of ordinary benefit for each year of service.
10 yean’ service. Duty disability: No service re­
deceased.
quirement.
Do.
Wage earnersandemployees ofUmlted- 157,900insured in 6 per cent of pay; first month’s Increase In 9 per cent of pay roll and 0.3 None_
..do..
..do..
Ordinary: 30 years’ service. Voluntary: 50 years, after
liability companies.
1930.
pay.
per cent of gross sales.
10yean’ service, with reduced benefit. Invalidity:
10yean’ service.
Do.
Journalists and printers__ .. . . .. . . .
..do4,100 insured In
-d o___do..
6 per cent of pay r o ll........ Revenue from special tax on foreign
-do_
193a
newspapers.
Bank and stock-exchange employees.. 1,787 insured in To general fund, Including other insurance To general fund, Including None__. . . . . . . . . . __. . . ____ ____ __ Full benefit, age 60years, 30years' service; deduction el Vary according to average annual salary of last 6 yean up to 960 pesos ($993); AfterlOyean’ service: Death bene­ Council—2 representatives each
of employers and worken and
fit of half of benefit of deceased,
average salary above that amount reduced 16 per cent; maximrnn benefil
1929.
also: 6 per cent of salary; first month’s
other insurance also: 12
1 year from age limit for each year of service over 30;
1 of Government.
plus 10per cent for each orphan;
Increase In salary.
400 pesos ($414) per month.
per cent of salaries; tax on
optional after 10 yean* service, with reduced benefit.
maximum, full benefit; bonus
amounts loaned by bank.
of 6 months’ salary. Less than
10 yean’ service: Total sur­
vivors’ benefit, lump sum of 1
month’s salary for each year of
service.
Ministry of Social PoHey*
All wage earners (except agricultural Not yet In opera­ 1H per cent of basio daily wage_________ Same as from Insured.
Average «mimi contribution multiplied by 8, If 200 to 500 weeks? contribu­ No data-........................ —
No dataAge, 70 years. Invalidity: workers and miners) earning not
tion.
tions, and by 12 If 600 weeks? contributions or more.
over 48 dinars ($9.26) per day.

83360*—32. (Face p. 08.) No. 6

Argentina
By R a lph M iller , American Vice Counsel, Buenos Aire*

Argentina has as yet no old-age pension or insurance system cover­
ing all classes of workers. There are, however, old-age insurance sys­
tems, established by Federal legislation, for three classes of workers—
namely, railway workers, employees of public utilities other than
railroads, and bank employees. In addition, the Provinces of Cor­
doba and Mendoza have old-age pension systems for all resident
citizens.
In 1923 a Federal act was passed providing for a compulsory con­
tributory old-age insurance system for the country as a whole, but
owing to certain administrative difficulties its operation was sus­
pended by Congress.
An account of each of the above systems is given below.

Railway Employees’ Insurance System
The law of June 21,1915, provided for a national fund for retire­
ment annuities and pensions for railroad workers, but it was not
until April 24, 1919, that the organic law which made operative the
present system of compulsory insurance for railway employees was
passed. This law was clarified by the law of September 29, 1921,
and by the law of November 24,1923.
Coverage of System

The following classes of workers must insure under the law: Per­
manent employees and workers on railroads under national jurisdic­
tion, including State railroads; those of port and warehouse enter­
prises of the Republic which have railways on their property, what­
ever their function; those of the central fruit market; those of cable
railway enterprises, and of the fund created by this law; physicians,
dentists, and other employees of mutual-aid societies connected with
the enterprises and to whose support the latter contribute or have
contributed, and who render or have rendered services to the same;
employees of confectioners’ shops, whether the latter are carried on
directly by the railway enterprises or by third parties; and the
employees of the railroad information bureaus.
Contributions

Employees covered by this law must contribute 5 per cent of their
monthly earnings or salaries up to 1,000 paper pesos ($424.50)1* for
salaries above that amount the contribution will be on the basis of
1 Conversions into United States currency on basis of paper peso equals 44 per cent of
gold peso (par value, 96.48 cents), or 42.45 cents.

99

100

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

1,000 pesos ($424.50). An employee entering the railway service
for the first time, or reentering after a period of absence, must con­
tribute the amount of his first month’s salary, payable in 24 monthly
installments. When an employee’s salary is increased he must con­
tribute for the first month the difference between the increased
monthly salary and his former monthly salary. The railway com­
panies must contribute 8 per cent of the total salaries of all their em­
ployees receiving not over 1,000 pesos ($424.50) per month; salaries
of more than 1,000 pesos per month are counted as 1,000 pesos per
month for the purpose of contribution. The companies must also
contribute all excess sums paid by the public and not claimed within
one year. Any deficit is paid by the State.
Benefits

The law provides for three types of benefits: (1) Ordinary benefits,
(2) disability benefits, and (3) voluntary retirement benefits.
Ordinary benefits.—Ordinary retirement annuities are granted to
employees who have had 30 years’ service and have reached the age
of 50. When an employee has had 30 years’ service and is over 45
years of age but not yet 50, he may retire on an annuity 25 per cent
less than he would receive had he reached the age of 50.
The amount of the ordinary retirement annuity is calculated on
the basis of the average monthly wage or salary received by the
employee during his last five years of service, according to the fol­
lowing scale: For average wage or salary up to 120 pesos ($50.94),
the amount of the average wage; for average wage or salary between
120 pesos ($50.94) and 300 pesos ($127.35), 120 pesos ($50.94) plus
80 per cent of the difference between the wage or salary and 120
pesos ($50.94); for average wage or salary between 300 pesos
($127.35) and 1,000 pesos ($424.50), 264 pesos ($112.07) plus 70 per
cent of the difference between the average wage or salary and 300
pesos ($127.35). Average wages or salaries of over 1,000 pesos
($424.50) are counted as 1,000 pesos for the purpose of determining
benefits.
Disability benefits.—Benefits are granted, after five years’ service,
for physical or mental disability. They are granted without regard
to length of service when permanent disability was incurred in line
of duty. This benefit is calculated at the rate of 10 per cent of the
ordinary benefit for each year of service up to the maximum.
Voluntary retirement.—If any employee has had more than 10 but
less than 30 years’ service, a benefit may be granted, when he has
reached the age of 50, amounting to 2 per cent of the ordinary bene­
fit for each year of service.
Survivors’ benefits.—Survivors’ benefits are granted to the sur­
vivors of railway employees who at the time of death are receiv­
ing or are entitled to a benefit under this law, or who, having had
10 years’ service, die while in active service. The survivors’ benefit
amounts to 50 per cent of the ordinary benefit, the minimum benefit
being 100 pesos ($42.45) per month. Widows, invalid widowers,
dependent children, dependent parents, and unmarried sisters are
eligible to receive this benefit. One half of the benefit goes to the
widow or widower and the other half is distributed equally among
the other dependent relatives.

A R G E N T IN A

101

Administration

The administration of this system is in the charge of the National
Fund for Retirement Annuities and Pensions of Kailway Employees,
created by the law. The board of directors of the fund consists
of a chairman appointed by the President of the Republic, four
representatives of the employers, and four representatives of the
insured employees. The term of office of the board of directors is
four years. The chairman acts as the executive head of the board
and casts a vote in case of a tie. The board submits annually its
budget of expenses of administration, which must not exceed 3 per
cent of the total receipts, and of the benefits to be paid, which must
be approved by the President before going into effect.
Statistics of Operation

The number of persons covered by the law as of December 31,
1929, was 143,843, and the number receiving benefits, 22,408. The
average benefit received was 1,036.58 pesos ($440.03) per year.
During 1929 the receipts were 64,504,295.48 pesos ($27,382,073.43),
the expenditures 63,957,794.99 pesos ($27,150,083.97), and the admin­
istrative expenses 1,194,922.77 pesos ($507,244.72).

Bank Employees’ Insurance System
Coverage of System

A law of October 9, 1923, provided for the establishment of a
national fund for retirement annuities and pensions for bank em­
ployees, but the organic act under which this fund now operates
was not passed until December 5,1929. It provides for compulsory
insurance of the employees of all privately owned banking enter­
prises in Argentina. Official and semiofficial banks of the Provinces
and municipalities may also receive the benefits of this law upon the
application of the majority of their employees.
Contributions

To provide the capital of the retirement fund the following com­
pulsory monthly deductions from the salaries of all persons covered
by the law are made: On salaries up to 500 paper pesos ($212.25), 5
per cent; on salaries over 500 to 1,000 pesos (over $212.25 to $424.50),
6 per cent; on salaries over 1,000 to 1,500 pesos (over $424.50 to
$636.75), 7 per cent. Salaries above 1,500 pesos ($636.75) are con­
sidered as 1,500 pesos for the purposes of the deduction. An em­
ployee must also contribute the total amount of his first month’s
salary on entering any banking organization covered by the law,
but the contribution may be made in 20 monthly installments.
When an employee receives an increase in salary, he must contribute
the difference between his first month’s salary on the new basis and
his previous salary. The banks covered by the law make a monthly
contribution of 8 per cent of the total salaries paid to their person­
nel. The retirement fund also receives the fines imposed for the
infringement of its regulations and interest on its investments.

102

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

According to the law, 50 per cent of the resources of the fund are
to be invested in securities either of the Argentine Government or
guaranteed by the Government. The remaining 50 per cent is to
be invested in loans to persons covered by the law, for the purpose of
building houses.
Benefits

The law provides for three types of benefits: (1) Ordinary bene­
fits, (2) disability benefits, and (3) voluntary retirement benefits.
Ordinary benefits.—The ordinary benefit is granted to all em­
ployees who have worked 30 years with banking concerns and have
reached the age of 50. The amount of the benefit is based on the
average salary received during the last five years of service up to a
maximum of 1,500 pesos ($636.75), and is determined according to
the following scale: For salaries up to 500 pesos ($212.25), 75 per
cent; for salaries over 500 to 1,000 pesos (over $212.25 to $424.50),
70 per cent; for salaries over 1,000 to 1,500 pesos (over $424.50 to
$636.75), 65 per cent.
Employees who are credited* with 30 or more years’ service with
banking concerns, and who are over 45 but under 50 years of age,
are allowed benefits at the above rates minus 5 per cent for each
year which they lack of being 50.
Employees who continue in the banking service after they have
reached the age of 50, and who have had 30 years’ service, are entitled
to a bonus of 1% per cent of the ordinary benefit for each year they
continue in the service, up to a maximum of 90 per cent.
Invalidity benefits.—Invalidity benefits are granted to employees
who, after 10 years’ service in banking institutions, are found to be
physically or mentally unfit for the continuation of such work or
for any other work suited to their ability and training. Companies
falling under the provisions of this law are prohibited from dis­
charging men claiming such a benefit until the claims have been in­
vestigated by the retirement fund. After the examination of such
a claim, the benefit either will be granted or the banking institution
in question will be required to retain the services of the employee,
paying him his usual salary.
These benefits are computed on the basis of the regular benefit and
amount to 3y2 per cent of the latter for every year of service, up to
a maximum of 30 years.
Employees who become disabled before having completed 10
years’ service in banking institutions are entitled to as many months’
average salary as the number of years in which they contributed to
the retirement fund.
A special benefit is granted to employees who are permanently
disabled as a result of an accident in the ordinary course of em­
ployment. This benefit amounts to 40 per cent of the employee’s
salary during his last 5 years’ service plus a bonus of 2 per cent for
every year of service, up to a maximum of 30 years.
Voluntary retirement.—Employees who have worked for banking
institutions for a period of over 20 years, but who have not served the
necessary length of time to entitle them to an ordinary benefit, are
granted a special benefit amounting to 2 per cent of the ordinary
benefit for every year of service.

ABGEKTTOA

103

Swrvivors' benefits.—In case of the death of a bank employee who
has been granted, or who has a right to, any of the above-mentioned
benefits, tne following survivors have the right to apply for a bene­
fit: The widow; the widower if unable to work; the children, or in
their absence, the parents; or, in the absence of any of the above, the
unmarried sisters of the deceased who have been supported by him.
The amount of this benefit is equal to 50 per cent of the benefit
the deceased was receiving or had a right to receive and is distributed
as follows: One-half to the widow or disabled widower and the
remainder equally among the children or parents of the deceased.
In the absence or children or parents the whole benefit goes to the
widow or widower.
A special benefit is granted to the family of a bank employee
who dies after working for less than 10 years with banking institu­
tions, amounting to as many months5average salary as the number of
years the employee has contributed to the retirement fund.
Administration

The administration of the Bank Employees’ National Retirement
Fund is in charge of a board of directors, consisting of a chairman
appointed by the President of the Republic, two representatives of
the banks, and two representatives o f the employees. In the elec­
tion of the representatives of the banks, each bank has a number
of votes proportionate to the funds contributed by it to the retire­
ment fund during the previous year, but the two bank representa­
tives can not be members of the same bank. The representatives
of the employees are elected by secret ballot. The term of office of
members of the board is three years.
Statistics of Operation

On December 81,1929, there were 9,205 people covered by the law,
and 410 persons were receiving benefits aggregating 280,980.37 pesos
($119,276.17).
During the year 1929 the receipts of the pension bureau were
6,215,889.13 pesos ($2,638,644.94) and the operating expenses were
145,074.61 pesos ($61,584.17), or 2.33 per cent of the receipts.
Public-Utility Employees’ Insurance System
Coverage of System

The law of February 11, 1921, established a national fund for
retirement benefits for permanent wage earners and salaried em­
ployees of private street-car, telephone, telegraph, gas, electricity,
and radiotelegraph enterprises.
Contributions

The insured contribute 5 per cent of their wages or salaries up to
1,000 pesos ($424.50) per month, the amount of one month’s wages of
each of the permanent employees, the first month’s wage or salary
of each person who becomes a permanent employee, and the amount
of the first month’s increase in wages or salaries. Employers con­

104

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

tribute 8 per cent of the wages or salaries of all their employees,
rovided the wage does not exceed 1,000 pesos ($424.50) ; in case it
oes, the contribution is only on that amount. The amount of the
contribution of the State is to be determined after a census of
workers. Up to the present no contribution has been made by the
State.
In accordance with the law, 50 per cent of the funds received as
contributions will be invested in securities of the Argentine Govern­
ment. The remaining 50 per cent will be used for the purpose of
making loans to employees covered by the law, under regulations pre­
scribed by the law.

S

Benefits

The full ordinary retirement benefit is granted after 30 years’
service at the age of 50 years, and the ordinary benefit, reduced by
5 per cent for each year of age which he lacks of 50, is granted to
an employee who has rendered 30 years’ service, is over 45 years of
age, and wishes to retire.
The amount of the old-age benefit is calculated on the basis of the
monthly average wage or salary during the last 5 years’ service, as
follows: (1) For wages not exceeding 100 pesos ($42.45), the benefit
amounts to 95 per cent of the wages; (2) for wages between 100
pesos ($42.45) and 300 pesos ($127.35), the benefit amounts to 95
pesos ($40.33) plus 80 per cent of the difference between 100 pesos
($42.45) and 300 pesos ($127.35); (3) for wages between 300 pesos
($127.35) and 1,000 pesos ($424.50), the benefit amounts to 255 pesos
$108.25) plus 70 per cent of the difference between 300 ($127.35) and
1,000 pesos ($424.50).
A voluntary retirement benefit, calculated at 2 per cent of the
ordinary retirement benefit for each year of service, may be granted
to workers 50 years of age who have 10 and less than 30 years’ serv­
ice. A disability retirement benefit, calculated at 5 per cent of the
ordinary retirement benefit for each year of service, is provided for
workers who after 10 years’ service are incapacitated for work.
There is no service requirement for workers permanently incapaci­
tated in the line of duty.
The survivors’ benefit amounts to 50 per cent of the benefit of the
deceased. One half of it goes to the widow and the other half to
the children or parents; in the absence of either children or parents
the entire benefit goes to the widow.
Administration

Administration of the retirement annuity and pension fund is in
charge of a board of directors composed of a chairman appointed by
the President, a representative of the employers, and a representa­
tive of employees in each one of the public services coming under
this law, the following being declared for the purposes of this pro­
vision to be separate services: Street cars, telegraphs and radioteleg­
raphy, telephones, gas and electricity, water works, and sanitary
service.

ARGENTINA

105

Statistics of Operation

On December 31, 1929, there were 41,908 persons covered by the
law, and in the preceding year there were 41,481.
The benefits granted m 1929 amounted to 4,908,322.53 pesos
($2,083,582.91). an increase of 540,505.24 pesos ($229,444.47) over
those granted during the preceding year.
During 1929 the employees and workers of the several enterprises
made 62 applications for loans to be used for the purchase of dwell­
ings, which represented an expenditure of 417,506.78 pesos ($177,231.63).

General Act of 1923 (Suspended)
Coverage of System

The law of November 22, 1923, provided compulsory insurance
against old age for wage earners and salaried employees in the Ar­
gentine merchant marine, in industrial establishments, the printing
and publishing industry, and mercantile establishments. Wage
earners and salaried employees of mutual-benefit societies and tradeunions were permitted to enter the system, provided such societies
and unions paid the employers’ contributions.
Wage earners under the age of 18 years and home workers were
excluded from the insurance. No upper wage limits were set by the
law, nor did the law specify the amounts of the benefits or the exact
conditions under which the benefits were to be granted, as these were
to be determined later by a technical committee.
Contributions

The contributions by the workers and employees and their employ­
ers were fixed as follows: (1) Contribution by the insured of 5 per
cent of his monthly wages up to 1,500 pesos ($636.75) ; (2) contribu­
tion of the first month’s wage or salary by the insured upon entering
employment in an industry under the insurance act; (3) contribution
of the first month’s increase of wage or salary by the insured; (4)
contribution by the employers of 5 per cent of the total wages and
salaries paid to their permanent workers and employees.
The funds were also to be increased by the interest on the capital
invested, by fines, unclaimed benefits, and other special sources pro­
vided by tne law.
Benefits

The law provided for four kinds of benefits: (1) Ordinary old-age
benefits, (2) disability benefits, (3) benefits for disability due to the
employment, and (4) survivors’ benefits.
Administration

A special independent fund was formed for each group of em­
ployees. A board of directors of social welfare funds was to be in
charge of the insurance. The board consisted of a president ap­
pointed by the President of the Republic and 8 members, of whom

106

PENSIONS AND INSUB AN OE IN FOBEIGN COUNTBIES

4 were representatives of the workers and employees and 4 were
representatives of the employers.
This board was to fix an annual budget, to be approved by the
President of the Republic. All money transactions were to be super­
vised by the State general accounting department. The amount of
benefits to insured persons was to be determined on an actuarial basis
by a special committee appointed by the board of directors. The
cost of the administration of the system was to be met from the gen­
eral reserve capital, and, according to the law, the cost was not to
exceed 3 per cent oi the reserve capital.
Suspension of System

As the contributions by the employees and their employers were
rather large, and the time when the benefits would be received and
the exact conditions for receiving them were indefinite, the applica­
tion of the act met with insurmountable difficulties.
During the first year the aggregate amount of the contributions
was 30,000,000 pesos ($12,735,000), and the number of insured persons
was about 100,000. Both employees and employers protested, and a
large number of the employers refused to make contributions. The
board of directors instituted legal proceedings against them, but
early in 1926 the Supreme Court of the Republic decided the cases
against the board, for the reason that the administration of the insur­
ance system was incompletely constituted and the act itself was vague
in a number of particulars. The National Congress finally suspended
the operation of the system until Congress either modifies it or adopts
another law. During the latter part of the year 1930, the pension
bureau created by this law started to return the money which had
been contributed to it, and it was announced that all contributions
would be returned.

Provincial Pension and Insurance Systems
Province of Cordoba

Coverage of system.—The law of January 7,1920, provides an oldage pension system for all the inhabitants of Cordoba under the
following conditions: (1) Age, 60 years; (2) Argentine citizen with
15 years’ residence in Argentina, or a foreigner with 30 years’ resi­
dence in Argentina, and in both instances a 10 years’ residence in the
Province of Cordoba; (3) an income not higher than 30 pesos
($12.74) per month; ana (4) not convicted of any crime.
Contributions.—This is a noncontributory system. To provide the
funds for the administration of the law a special bureau was created
which was empowered by law to run a lottery and a public savings
bank.
Benefits.—The pension amounts to 30 pesos ($12.74) per month.
When a worker dies or becomes disabled, his dependents are entitled
to a sum amounting to three months’ wages in case of death and to
two months’ wages when he is disabled. In case he dies during
unemployment his survivors receive two months’ wages. There is
also a provision for maternity benefit.

ARGENTINA

107

Administration.—The law is administered by the bureau of labor
protection of the department of labor of the Province.
Statistics of operation.—No statistics are obtainable regarding the
present operation of the law. It is believed, however, that very few
benefits are being granted under it.
Province of Mendoza

Coverage of system.—The law of 1924 grants benefits to all
persons under the following conditions: (1) Age, 65 years; (2)
Argentine citizen with 15 years’ continuous residence in the Prov­
ince, or a foreigner with 25 years’ residence in the Province; (3)
must have no other source of income; and (4) must never have been
convicted of any crime.
Contributions.—The cost of the pensions is provided by a monthly
contribution of 50 centavos (21 cents) per employee, paid by all
employers and by the provincial and municipal governments as
employers; a property tax on all values exceeding 200,000 pesos
($84,900); a tax on all uncultivated land; and a tax of 5 centavos
(2 cents) per quintal (220 pounds) of grapes.
Benefits.—The pension paid is 50 pesos ($21.23) per month.
Administration.—The administration consists of a board of di­
rectors under the chairmanship of the director of the department of
labor of the Province. The board is composed of one deputy and
one senator elected by the provincial legislature and two representa­
tives of the workers, elected by labor unions.
Statistics of operation.—No statistics are obtainable regarding the
present operation of the law. It is believed, however, that very few
oenefits are being granted under it.
S ources foe A rgentina : Leyes del Trabajo, Nacionales y Provinciates, con sus Decretos
Reglamentarios, rectfpiladas por Carlos Moret (N .), tercera edici6n (n. p.), 1927, Editorial
“ La Vanguardia ” ; Ley 11289 sobre JubilaciOn de Empeados y Obreros de la M'arina
Mercante Argentina, de los Establecimientos Industriales, del Periodismo y de las Artes
Gr&ficas de los Establecimientos Mercantiles, segunda edition, Buenos Aires, January, 1924;
Ley No. 11575, Caja Nacional de Jubilaciones Bancarias, Buenos Aires, 1930; Caja Nacional
de Jubilaciones y Pensiones de Empleados Ferroviaros, Balances, gr&ficos y cuadros
estadisticos, Afios 1927, 1928, 1929, Buenos Aires, 1930; Caja Nacional de Jubilaciones
Bancarias, Memoria y balance correspondiente al afio 1929, Buenos Aires, 1930; Caja
Nacional de Jubilaciones y Pensiones de Empleados y Obreros de Empresas Particulares
de Servicio Publicos, Memoria y balance corerspondiente al afio 1929, Buenos Aires, 1930.

83360°—32------8

Australia
By R oger C ulver T readw ell , American Consul General, Sydney

General Pension System
In Australian old-age pension schemes, the State of Victoria led
the way in January, 1901, and in August of the same year pensions
were introduced in New South Wales. In July. 1908, Queensland
followed the example of the southern States. Tnese were the only
States to introduce the system. In the meantime, however, the
Commonwealth Government had appointed a royal commission on
the subject. As a result of the recommendations of this commission,
an invalidity and old-age pensions act was passed by the Common­
wealth Parliament in 1908, and on July 1, 1909, payment of pensions
throughout the whole of Australia under the provisions of this act
commenced. The pensions which were being paid in the States
referred to were taken over by the Commonwealth as from the
same date.
Coverage of System

The principal qualifications for old-age pensions are:
(a)
Age of 65 years in the case of a man or 60 years in the case
of a woman. A man who is 60 years of age may, however, receive
an old-age pension if he is permanently incapacitated for work.
(5)
Continuous residence in Australia for at least 20 years. This
residence need not be immediately prior to the date of the claim.
For instance, if a person resided in Australia from 1900 to 1920
and then went abroad, returning to Australia in 1924, he would be
eligible for a pension so far as residence is concerned.
(c) Residence in the Commonwealth at the date of claiming
pension.
(d) Good character.
(e) The claimant must not have deserted wife (or husband)
or children for 12 months or upward during the 5 years immedi­
ately preceding the date of the claim.
(f) Property belonging to the claimant must not exceed £400
($1,947) in value.
(g) The claimant must not have deprived himself of income
or property, either directly or indirectly, in order to qualify for a
pension.
The following are disqualified from receiving the old-age pension:
(a) Aliens; (b) Asiatics (except those born in Australia or Indians
born in British India), or aboriginal natives of Australia, Africa,
the islands of the Pacific, or New Zealand.
Pensions for invalidity are provided by the same act. In general,
the conditions for receiving these are permanent incapacity for work
108

AUSTRALIA

109

or permanent blindness, residence in Australia at the date of the
claim and at the time the incapacity or blindness developed, age of at
least 16 years, and inability of the claimant or relatives to maintain
the claimant adequately. Conditions as to property and income are
the same as in the case of old-age pensions.
A person who is receiving an old-age pension can not also receive
an invalidity pension, and vice versa.
Contributions

The Commonwealth invalidity and old-age pensions scheme is non­
contributory. The whole cost of the pensions, as well as the expense
of administration, is borne by the Commonwealth, the money being
appropriated by Parliament as required from time to time. The
Commonwealth does not make any demand on the pensioner himself
or his relatives for a contribution toward the cost ox his pension. On
the contrary, a special act was passed in 1912 to provide that moneys
which pensioners receive by way of gift or allowance from their
children, grandchildren, stepchildren, or adopted children should not
be allowed to affect the rate of the pension.
Similarly, no claim is made by the Commonwealth on any property
possessed by the pensioner, ana a pensioner on his decease is free to
dispose of his property as he wishes.
Benefits

The maximum amount of pension payable under the act is £52
($253.06)2 per annum—£1 ($4.87) per week. The rate which may
be paid in any particular case is defined in the act. Provided the
claimant is qualified in other respects, the amount of pension is based
on his income and property, the principal provisions being as
follows:
A pensioner’s income, together with pension, must not exceed
£84 10s. ($411.22) per annum. In the case of husband and wife,
except as hereinafter specified, the income of each is held to be halt
the total income of both. When a claimant receives free board and
lodging, it is counted as an addition of 12s. 6d. ($3.54) per week to
his other income.
The following do not constitute income and are not taken into
account in determining the rate of pension: (a) Payments by way of
benefit from any friendly society; (b) payments during illness, infirm­
ity, or old age from any trade-union, provident society, or any society
or association; (c) gifts or allowances from children, stepchildren,
grandchildren, or adopted children; (d) war pension to any person
who is a dependent of a member of the forces within the meaning
of the war pensions act, 1914r-1916, or of the Australian soldiers5
repatriation act, 1920-1922; (e) payments by the Commonwealth to
any person by reason of his dependence on a member of the forces
within the meaning of the war pensions act, 1914-1916, or of the
Australian soldiers* repatriation act, 1920-1922; and (/) in connec­
tion with the claims for old-age pensions only, war pensions to any
person who is a member of the forces within the meaning of the war
3 Conversions made on basis of pound equals $4.8665; shilling, 24.33 cents; penny, 2.03
cents.

110

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

pensions act, 1914-1916, or of the Australian soldiers’ repatriation
act, 1920-1922.
The table following shows the operation of the income provisions.
T able 3 .—Amount o f pension fo r single and married persons m Australia ,

according to specified incomes
[Conversions into United States currency on basis of pound—
$4.8665; shillings24.33 cents]
Single or widowed pensioner
Pension

Annual income

British cur­
rency

£169 ($822.44)...
£104 ($506.12)...
£84 10s. ($411.22).
£65 ($316.32)___
£52 ($253.06)___
£3210s. ($158.16).
£26 ($126.53)-----

*
19
32
52
52

Total income and pension

United
States cur­
rency

i.
0
0
0
10
10
0
0

$94.90
158.16
253.06
253.06

United
British cur­ States cur­
rency
rency
£
169
104
84
84
84
84
78

s.
0
0
10
10
10
10
0

$822.44
506.12
411.22
411.22
411.22
411.22
379.59

Husband and wife—Only one a pensioner
Share of each

Pension of one

Total income
and pension

United
United
United
British States British States British States
currency cur­ currency cur­ currency cur­
rency
rency
rency

£169 ($822.44)...
£104 ($506.12) —
£84 10s. ($411.22)
£65 ($316.32)----£52 ($253.06)— £32 10s. ($158.16)
£26 ($126.53)-----

£ 8.
84 10 $411.22
52 0 253.06
42 5 205.61
32 10 158.16
26 0 126.53
16 5 79.08
13 0 63.26

£

8.
0
32 10 $158.16
42 5 205.61
52 0 253.06
52 0 253.06
52 0 253.06
52 0 253.06

£
169
136
126
117
104
84
78

8.
0 $822.44
10 664.28
15 616.83
0 569.38
0 506.12
10 411.22
0 379.59

Husband and wife—Both pensioners
Combined pensions
United
British cur­ .States cur­
rency
rency
£

£169 ($822.44)....
£104 10s. ($506.12)
£84 10s. ($411.22).
£65 ($316.32).......
£52 ($253.06).......
£32 10s. ($158.16)-.
£26 ($126.53).......

8.
0
65 0
84 10
104 0
104 0
104 0
104 0

$316.32
411.22
506.12
506.12
506.12
506.12

Total income and pensions
British cur­
rency
£ 8.
169 0
169 0
169 0
169 0
156 0
136 10
130 0

United
States cur­
rency

$822.44
822.44
822.44
822.44
759.17
664.28
632.65

In the following cases the income is not divided equally between
husband and wife: (a) When the parties are living apart pursuant
to a decree, judgment, order, or deed of separation; (&) In any case

AUSTRALIA

111

in which the commissioner of pensions is of opinion that the income
should not be divided. In such cases each party’s income is regarded
as the separate income of the particular person.
Property.—When a claimant’s property is less than £50 ($243.33),
the pension is not affected. When, however, husband and wife are
both pensioners, the property exemption is £25 ($121.66) each, instead
of *50 ($243.33). When a claimant’s property exceeds £400
($1,946.60), no pension is payable. In the remaining cases, i. e.,
when property is over £50 ($243.33) but under £400 ($1,946.60), a
deduction is made from the maximum pension at the rate of £1
($4.87) per annum for every complete £10 ($48.67) by which the net
capital value of the property exceeds £50 ($243.33), or, in cases in
which husband and wife are pensioners, £25 ($121.66).
The following provisions govern the valuation of property:
(a)
All real and personal property owned by the claimant is held
to be his accumulated property. This includes house and land
property, money in bank, money owing to claimant, shares in com­
panies, investments, etc.
(&)
A home in which a pensioner resides does not constitute
property and is exempt from the calculation.
(o)
Charges and encumbrances lawfully and properly existing on
property, other than the home, are allowed as a deduction from the
value of the property.
In the case of husband and wife, the property of each is held to
be half the total property of both, except in the cases given above
in which income is not considered as equally divided.
Method of payment.—Pensions are paid in fortnightly install­
ments. On being granted a pension every pensioner is furnished
with a “ pension certificate.” This document sets out the rate of
pension and the place of payment. Payment may be made at any
post office in the Commonwealth, the pensioner being allowed to
choose the office. The place of payment may be changed at the
request of the pensioner.
Oh presentation of the certificate each fortnight the amount of the
fortnightly installment, as shown on the certificate, is handed to the
pensioner, who gives a receipt for the money. Payment is made
only to the pensioner himself or to a person authorized in writing by
the deputy commissioner.
An installment of pension may be applied for at any time within
21 days after its due date, and payment will be made on demand. If
the installment is not collected within 21 days, it is forfeited; but
under certain conditions the forfeiture may be waived, if applied
for within a further period of 60 days. If no application is made
within that time, the installment is irrevocably forfeited, but this
does not prejudice the payment of subsequent installments. When a
pensioner is unable, on account of age, infirmity, distance to be
traveled, or other satisfactory reason, to collect nis pension, the
deputy commissioner may authorize payment to some other person on
the pensioner’s behalf.
Arrangements also exist for the payment of pensions by means of
certified checks posted to the address of any pensioner who desires
payment to be made in this way. Comparatively few pensioners

112

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

(less than 3 per cent of the total number receiving pensions) have
availed themselves of this privilege.
A pension is absolutely inalienable whether by way or in con­
sequence of sale, assignment, charge, execution, insolvency, or
otherwise.
Administration

The administration of the pension act is vested in the commis­
sioner of pensions who, subject to the control of the Minister of State
administering the act, is responsible for the general administration.
In every State there is a deputy commissioner of pensions who,
subject to the control of the commissioner, has certain powers con­
ferred on him by the act and is responsible for the general admin­
istration of the act within his particular State.
Each State is divided into districts. In every such district there
is a registrar, who is generally the clerk of the local court of petty
sessions. The registrar receives the claim, collects preliminary evi­
dence, and submits it to a magistrate (usually a police magistrate)
for hearing. After hearing the claim the magistrate indorses his
recommendation on the papers, which are then referred to the deputy
commissioner of the State, and the claim is examined bv the deputy
commissioner or by his officers under his control, and the case is
decided.
In order that claims may be fully investigated, the commissioner,
deputy commissioners, registrars, and magistrates are vested by the
act with wide powers to summon witnesses, receive evidence, ana call
for reports and production of papers.
In any case where a pensioner is convicted of certain offenses, or is
of drunken or disreputable habits, or is misspending his pension in
any way, the deputy commissioner may reduce, suspend, or cancel
the pension.
The act also gives power to deal with persons who make willfully
false statements or representations to obtain a pension or to deceive
any officer in the performance of his duties.
Persons who refuse to supply information regarding the pension­
ers when called on to do so are also liable to punishment.
Statistics of Operation

The amount paid by the Commonwealth in invalidity and old-age
pensions during the 12 months ending June 30,1930, was £10,633,979
($51,750,259). In addition an amount of £157,346 ($765,724) was
paid to benevolent asylums and hospitals for the maintenance of pen­
sioners in those institutions, making a total expenditure of £10,791,325
($52,515,983). The present liability is assessed at approximately
£11,500,000 ($55,964,750) per annum. The total paid since the insti­
tution of the system in 1909, including payments to benevolent
asylums and hospitals, amounts to a little over £106,000,000 ($515,849,000).
The following statistics, relating to old-age pensions only, are
from the annual report of the commissioner ox pensions for the year
ending June 30, 1930.

113

AUSTRALIA

During the year 1929-30, pensions were awarded to 22,585
applicants.
The following table gives some data as to the number of claims
granted since the system went into operation, the present number
of pensioners, and the average fortnightly pension:
T able

4 . — Old-age

pension claims in Australia, 1909 to 1930, and pensioners
and average pensions, June 30, 1930, by States

[Conversions into United States currency on basis of pound=$4.866o; shilling=24.33 cents;
penny=2.03 cents]
Old-age pension claims,
July 1, 1909, to June Num­ Average fortnightly
pension
30, 1930
ber of
pen­
T
sioners,
United
June
Can­ 30,1930 British cur­ States
Granted Deaths celed
cur­
rency
rency

State

d.
3.06
3.79
2.58
5.94
2.58
8.66

$9.31
9.32
9.30
9.12
9.30
9.18

351,795 164,208 32,391 155,196 1 18 2.03

9.29

New South Wales............................... ....... ......... 135,101 63,211 13,452
Victoria................................................ ... .......... 105,149 51,169 8,485
Queensland______ _______ ____________ _____ 44,931 20,629 3,904
South Australia_____________ ________ ____
31,599 14,708 2,617
Western Australia............ .............
.......
18,152 7,005 2,234
16,863 7,486 1,699
Tasmania........... .........................-__________
Commonwealth.

................ ....... ...........

58,438
45,495
20,398
14,274
8,913
7,678

£
1
1
1
1
1
1

s.
18
18
18
17
18
17

The maximum pension payable is 40 shillings ($9.73) a fortnight,
so it is evident that the average comes pretty close to the maximum.
Another view of the situation is given in the following table, which
shows, by States, the number and per cent of pensioners receiving
the maximum allowance:
T a b le 5 . —Number and per cent of old-age pensioners receivm g maximum

pension in Australia, June 30, 1930

State

Number re­ Per cent re­
Number of ceiving maxi­ ceiving maxi­
pensioners mum pension mum pension

New South Wales____________ ______ ______ ___ ______
Victoria_____________________________________________
Queensland__________________________________________
South Australia________ _____________ ___ ______ ______
Western Australia___ -_____________________________ __
Tasmania______________________________ _________ __

58,438
45,495
20,398
14,274
8,913
7,678

46,897
36,624
16,023
10,372
7,074
5,725

80.25
80.50
78.55
72.66
79.37
74.56

Commonwealtli_____ „___ _____________ __________

155,196

122,715

79.07

S o u r c e s f o r A u s t r a l i a : Invalid and old-age pensions act 1908-1928, C. 4174, Mel­
bourne; Regulations under invalid and old-age pensions act 1908-1926, C. 15242, Mel­
bourne ; Commissioner of pensions, Invalid and old-age pensions, statement for the 12
months ended June 30, 1930,. C. 8700, Melbourne, 1930.

Austria
By

E rn est

L.

H

a r r is ,

American Consul General, Vienna

During the years 1926 and 1928 the sickness, accident, and oldage pension system for civilian wage earners and salaried employees
in Austria was placed on a new legal basis. While most salary and
wage earners were already subject to compulsory insurance against
sickness, the accident insurance was limited to those who were em­
ployed in establishments involving special hazard and the invalidity
and old-age insurance to salaried employees and miners. The new
legislation is laid down in three basic laws: The salaried employees’
insurance law (AngesteTlten Versicherungs Gesetz) of 1926, which
was amended in 1928; the wage earners’ insurance law (Arbeiter
Versicherungs Gesetz) of 1927, which was amended in 1929, and the
agricultural laborers’ insurance law (Lrnidarbeiter Versicherwngs
Gesetz) of 1928 which was amended in 1929.
These laws reorganized the entire social insurance system and
greatly expanded its scope so that the scheme now covers, with a
few minor exceptions, all wage earners and salaried employees in
private employment in Austria. At the same time the laws con­
siderably increased and enhanced the value of the benefits. Hand
in hand with these provisions naturally goes a large increase in the
amount of contributions required.
While the provisions of the salaried employees’ insurance law have
been in effect since August 1, 1928. the wage earners’ insurance law
and that part of the agricultural laborers’ insurance law referring
to the invalidity and old-age insurance are still in abeyance and
will go into effect only when financial conditions in Austria will per­
mit the additional expense. In the meantime, the old regulations
referring to the sickness and accident insurance of wage earners have
remained in force, and only certain transitory provisions and re­
organizing features have become effective. Among the transitory
provisions, the most important is the provisional old-age allowance
for aged laborers who are in need of support pending the going into
effect of the old-age and invalidity benefits of the wage earners’ and
agricultural laborers’ insurance laws.
There is no reason to believe that the full provision of these two
laws will become effective in the near future. Their text, however,
has been taken as a basis for the following description of invalidity
and old-age insurance in Austria. Additional reference is also made
to the provisional old-age allowance for wage earners in effect at
present.
Type of law.—The three social insurance laws under discussion
have the following characteristics in common: They provide ipso
jure insurance against sickness, accident, old age and invalidity for
all salary and wage earners who come within their jurisdiction
irrespective whether or not the latter were duly enrolled or whether
114

AUSTRIA

115

the contributions were actually paid. The responsibility for enroll­
ment and for the remittance of the contributions lies, with the excep­
tion of the cases of voluntary insurance, with the employer exclu­
sively, and he is severely fined in case of delinquency. He is held
liable to the insurance institutions and funds for all damages which
may result thereby. The insurance begins automatically on the day
on which a person begins work, subject, of course, to the provisions
of the compulsory insurance. Certain exceptions with regard to the
old-age and invalidity insurance are noted under the sections on
“ benefits.”
Salaried Employees’ Insurance System
Coverage of System

The salaried employees’ insurance law provides compulsory sick­
ness, accident, invalidity, and old-age insurance for salaried em­
ployees in Austria engaged in the following types of work:
(1) Management of establishments and their departments.
(2) Inspection and supervision of high-grade technical, commer­
cial, or clerical work of others, including the duties of higher em­
ployees in agriculture, horticulture, and deer keeping.
(3) Correspondence, bookkeeping, accounting, cashier’s work, filing, typing, drawing, and other clerical work in banking and insur­
ance establishments (not, however, messenger service).
(4) Buying, selling, and warehousing which, due to the nature
and scope of the business, requires a certain degree of training and
skill.
(5) Artistic work, irrespective of its artistic value.
(6) Teaching.
(7) Auxiliary work of a scientific or medical nature in so far as
it requires schooling or professional training.
(8) Education of children or social work requiring schooling or
professional training, provided that it is not limited to mere physical
care.
(9) Finally, all services which require a general education con­
siderably above the standard of elementary schools. Subject to the
provisions of the salaried employees’ insurance law, furthermore, are
all salaried workers who fall under the employees’, actors’, and real
estate employees’ law.
Exclusions.—Concerning these classifications the law makes cer­
tain exceptions, among which may be mentioned: (1) Housewives,
if they are engaged in an occupation which would otherwise con­
stitute compulsory insurance and provided they are not employed
for more than 50 hours per month and do not receive any salary in
excess of 80 Austrian schillings a ($11.26); and (2) the children, par­
ents, wife or husband of the employer. Also excluded are the per­
manent employees and officials (Pragmatische Beamte) of the Fed­
eral, provincial (State) or municipal governments or of other public
enterprises, Army officers and soldiers, employees of the Austrian
National Bank (Note Bank), the parish priests, monks and nuns, as
•Conversions into United States currency on basis of schilling equals 14.07 cents.

116

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

well as the railroad employees, all of whom are provided for by spe­
cial rules and regulations.
An important further exception which refers, however, to the
invalidity and old-age insurance only, is the fact that salary earners
under the age of 17 are exempt from compulsory invalidity and oldage insurance.
Dependents.—The dependents of salaried employees may also re­
ceive benefits under the old-age and invalidity insurance, provided
they are not subject to insurance on their own account.
Those who may be regarded as dependents under the law, are:
(1) The wife of the insured if there has been no divorce or separa­
tion attributable to her; (2) legitimate or legitimized children and
illegitimate children of insured females up to the age of 18; (3)
stepchildren of legitimate birth and legitimate grandchildren of the
insured, provided they live in his household and are chiefly sup­
ported by him, until the age of 18; (4) in consecutive order, the
parents and grandparents come under the same conditions as those
mentioned under paragraph 3; (5) the life companion (housekeeper)
of an insured male if living under the same roof with him, provided
she kept house for him for at least eight months, without financial
remuneration.
Voluntary insurance.—In addition to compulsory insurance, the
law provides a voluntary insurance for certain groups of individuals.
They are:
(1) Persons who have left an employment in which they were
subject to compulsory insurance for at least 60 months may apply
within a month for a continuation of the insurance on their own
account in order not to forfeit the premiums previously paid.
(2) Corporations whose employees are covered by special insur­
ance, such as communities, may, with the consent of their em­
ployees, insure the latter with a salaried employees’ insurance
institution instead of the specific institutions provided for them
under special regulations.
(3) Private teachers, who as a rule, do not fall under compulsory
insurance.
Contributions

Contributions are based upon the monthly salary of the employee,
within the salary range of from 80 schillings ($11.26) to 400 schil­
lings ($56.28) a month. For newspaper, agricultural, and forestry
employees the upper limit is extended to 800 schillings ($112.56),
and for pharmaceutical employees to 600 schillings ($84.42). This
means that, although the higher-salaried employees, such as man­
agers of business concerns, banks, etc., are subject to compulsory
insurance, the amount of their salaries which exceeds the above
upper limit referred to is left out of consideration when figuring
the contributions for, and the benefits to be derived from, the
insurance.
The contribution for the invalidity and’old-age insurance amounts
to 8 per cent,3 which contribution, however, also includes the con­
tribution for the accident insurance. The contributions are col« Previous to Jan. 1, 1931, it was 7% per cent.

AUSTRIA

117

lected at the same time as the contributions for sickness and unem­
ployment insurance (totaling from 15 to 15.28 per cent) from the
employer, who may deduct one-half of the amount from the em­
ployee’s salary.
Benefits

The following benefits are provided under the law: Invalidity
benefits, old-age pensions (including survivors’ benefits), and dowry
allowance.
A peculiarity of the system is the requirement that the employee
must have been insured for a certain period of time before becoming
eligible to benefit. For salaried employees, the law requires a quali­
fying period of 60 months of actual insurance which, however, should
represent at least three-fourths of the time since the entry of the
insured into insurance. By the term “ months of actual insurance v
is understood only months during which the insured was duly
enrolled with the insurance fund (irrespective of whether or not
contributions were paid) or months for which contributions were
actually paid. Retroactive contributive payments are only accepted
within six years and oan not shorten the qualifying period by more
than 24 months.
Old-age and invalidity benefits.—The invalidity benefit provided
by the employees5insurance law may be either permanent or tempo­
rary. The first is granted if the insured becomes permanently dis­
abled for performing the duties of the position which he last held
or of some other position which would be appropriate to his prac­
tical training or education. The second is granted to those who are
but temporarily disabled for discharging their duties during a
period exceeding the time for which sick benefit is paid.
The benefit amounts to 35 “ benefit units5 {Renteneinheiteri), plus
5
as many benefit units as the years during which the employee was
insured. The term “ benefit unit5 is used as meaning 1 per cent of
5
the employee’s average salary 4 during the last three years. Thus,
a salaried employee who becomes an invalid after 27 years of insured
service receives 62 per cent of his salary, subject to a maximum of
248 schillings5 ($34.89) per month. In addition, the invalid re­
ceives for each child a child’s benefit (Kinder Zuschuss) of 6 units.
If the invalid needs constant care or assistance, his benefit is in­
creased by 50 per cent and must amount to at least 75 units. In
any case, however, the benefit can not exceed 100 benefit units.
All insured male employees who have reached the age of 65, or
who have had at least 120 months of insurance and have reached the
age of 60, are entitled to old-age benefits. For female employees
the corresponding ages are 60 and 55 years. A condition for draw­
ing the benefit, however, is that the beneficiary no longer is in an
employment subject to this law.
Widows* and children's benefits.—The salaried employees’ insur­
ance law grants survivors’ benefits to the widow and children of the
insured. The widow’s benefit amounts to one-half of the benefit to
which the insured husband would have been entitled at the time of
4 Within the upper limits previously mentioned.
6 That is, 62 per cent of 400 schillings (which is the upper limit of salary used in the
insurance calculations).

118

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

his death, except in cases in which the widow needs permanent care
and assistance, when the benefit must amount to at least 30 benefit
units. No widow’s benefit is paid—
(1) if, at the time of the death of the insured the marriage had
not been in force for three months or if the insured, when marrying,
had already reached the age of 50 and the marriage had not been in
force for three years, and provided that the death of the insured was
not caused by an accident or that children were not born during, or
legitimitized through this marriage, or that the widow was not
pregnant when the husband died.
(2) If the insured took out insurance only after having reached the
age of 55 and had subsequently married.
(3) If the marriage was contracted at a time when the insured
was already entitled to an invalidity or old-age benefit and the mar­
riage had been in force for less than three years.
(4) If the marriage was dissolved by divorce or separation due to
the iault of the wife, or if there is a widow from a prior marriage,
entitled to the benefit.
(5) If the widow was found guilty of having deliberately caused
the death of the insured.
If the widow remarries she receives in lieu of further benefit a
lump-sum payment amounting to three years’ benefit. This pay­
ment bars all further claims.
A widower who was chiefly supported by his wife’s earnings is en­
titled to the same benefits as a widow, provided and only so long as he
is physically or mentally disabled from earning his living and is
in need of financial assistance.
Half orphans receive 12 benefit units and full orphans 24 benefit
units per month, but in no case less than 15 schillings ($2.11) and
30 schillings ($4.22), respectively. This benefit is paia until the
orphan has reached the age of 18.
Widow and orphans together, however, may not receive more
than the amount of the invalidity benefit plus the children’s allow­
ance to which the insured would have been entitled at the time of
his death. Their combined benefits may also not exceed 85 benefit
units, unless the widow is a complete invalid or more than 55 years
of age in which case the limit may be extended to 100 benefit units.
A lump sum, instead of the regular survivors’ benefit, is paid—
(1) To the widow of an insured who, at the time of her husband’s
death had not yet completed the qualification period, or to the
children of the insured. In this connection the payment amounts to
the widow’s benefit for three years, figured on 60 months’ insurance.
(2) To a widow otherwise entitled to benefit but excluded on the
ounds enumerated in paragraph (1) of the above-listed exceptions.
ere the lump sum amounts to the widow’s benefit for 1y2 years.
(3) To the life companion (housekeeper) of a male insured person,
the sum amounting to one year of widow’s benefit.
(4) To the children over 18 otherwise unprovided for, the mother,
invalid father, grandparents, orphan brothers and sisters of the in­
sured, provided that they lived as dependents in his household and
provided that he left no widow or children. Of these relatives, the
nearer exclude from benefit the more remote in relationship. In

g

AUSTRIA

118

this instance the lump sum amounts to the widow’s benefit for V/2
years, but not less than 360 benefit units.
Dowry allowance.—Benefits are also paid to female salaried em­
ployees who have been insured for the period required to qualify
for benefit, provided they resign from work within two years after
marriage, or marry within two years after retiring from work. They
may claim, in full settlement of their benefit, an allowance which
amounts for each of the first 120 months of actual insurance to 5
benefit units and for each further actual insurance month to 2 benefit
units; thus, for example, after 12 years’ insured employment the
allowance would be 548 benefit units, which would represent about
6y2 months’ salary.
Administration

The organizations which administer the insurance systems of
Austria are established by law: they are autonomous bodies with
individual by-laws which are subject to the approval of the Federal
Ministry of Social Welfare. The members of the board of directors,
committees, etc., are elected by the employers and the insured.
The old-age and invalidity insurance of salaried employees is ad­
ministered by the Central Employees’ Insurance Institute, in whose
jurisdiction also falls the accident insurance of employees. In order
to simplify the administrative part of the routine work (such as the
enrollment of the insured), the collection of the contributions, etc.,
is intrusted to the local salaried employees’ insurance funds which
primarily administer the sickness insurance. There is one of these
salaried employees’ insurance funds for each of the nine Federal
States of Austria, with the exception of Vienna which has four
funds, one for commercial employees, one for bank employees, one
for industrial employees, and one for voluntary insurance. Besides
the Central Employees’ Institute there are individual institutes
dealing with invalidity, old-age, accident, and sickness insurance for
employees engaged in agriculture and forestry, journalism, and
pharmaceutical work; these three institutes, as well as the Central
Employees’ Insurance Institute, have jurisdiction over the entire
territory of the Republic and have their main offices in Vienna.
On the central committee and board of the salaried insurance
funds, the insured and employers have representation in the ratio of
four-fifths to one-fifth; this proportion, however, is reversed in the
supervisory committee which supervises not only all operations of the
“ funds,” but also has a deciding voice in investments and in the ap­
pointment of the higher officials of the funds. The departments
in the Central Employees’ Insurance Institute, as well as in the spe­
cial institutes above referred to, are equally distributed among em­
ployers and employees. The general benefit committees which pass
upon the individual claims, are composed of three members each,
one representing the employers, one the insured, and one the Central
Employees’ Insurance Institute.
Statistics of Operation

The figures quoted below are taken from the annual report of the
Central Employees’ Insurance Institute for the year 1929.
On December 31, 1929, the institute had 240,840 insured members.
However, since salaried employees under the age of 18 are subject

120

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

to sickness and accident insurance only, the number of those insured
against invalidity and old age is somewhat less, being on December
31, 1929, only 228,882 persons.
The table following shows the number of beneficiaries at the end
of the year 1929 and the monthly amounts paid for each type of
benefit. In addition, the institute paid 934 dowry allowances and
440 lump-sum benefits to dependents not entitled to regular pension.
T able 6 . — 'Number of beneficiaries and monthly amount paid in benefits o f each

type under Austrian salaried employees9 insurance system , 1929
[Conversions into United States currency on basis of schilling=14.07 cents]

Number
of benefi­
ciaries

Benefit class

Persons receiving—
Invalidity benefits_____ _______ _______ _____ __ ____
Old-age pensions__________________________________
Widows’ benefits____ _________________________ ____
Orphans’ benefits_______ -__________ ______ _______

3,825
5,718
7,748
2,993

Monthly arnount spent
in be:nefits
Austrian
currency

United States
currency

Schillings
591,115.19
1,080,173.19
721,401.80
120,220.06

1$83,169.91
*151,980.37
101,501.23
16,914.96

i Including 414 extra benefits to invalids requiring permanent assistance and care, totaling 38,820 schillings
($5,461.97) per month, and 1,292 children’s benefits, totaling 18,042.79 schillings ($2,538.62) per month.
* Including 204 extra benefits to invalids requiring permanent assistance and care, totaling 18,954.59
schillings ($2,666.91), and 513 children’s benefits, totaling 7,038.91 schillings ($990.37) per month.
T able 7 . —Receipts and expenditures o f Austrian salaried em ployees* insurance

system , 1929
[Conversions into United States currency on basis of schilling™ 14.07 cents]
Amount
Item

Receipts

Austrian
currency

United
States
currency

Balance carried over............... .............................................................. ......
Contributions...............................................................................................
Transfers from other institutes..................................................................... .
Revenues from invested capital.................................................................... .
Gain on securities......................................................................................... .
Miscellaneous receipts....................................................................................

Schillings
41,965,332.70
54,186,971.25
2,441,333.26
3,253,701.28
17,775.41
161,582.86

$5,904, §22
7,624,107
343,496
457,796
2,501
22 ,735

Total receipts.......... . . .................................................................. ......

102,026,696.76

14,355,156

Benefits paid:
Invalidity and old-age pension............................................................... .
Widows’ invalidity and old-age ben3 tits..................................................
Orphans' benefits................................................................................... .
Accident compensation............................................................................
Widows’ pensions and accident insurance...............................................
Orphans’ pensions and accident insurance..............................................
Benefits to other dependents and accident insurance............................. .
Lump-sum payments for invalidity and old age...................... ............. .
Dowry allowances______________ . . . . . .... .......................................... .
Other subsidies to dependents............. .... ...............................................

24,032,135.75
10,683,613.83
1,677,342.37
108,223.42
21,259.53
6,973.27
3.064.00
724,773.90
1,088,067.00
1.500.00

3,381,322
1,503,184
236,002
15,227
2,991
981
431
101,976
153,091

Total benefits...................................................................................... .

38,346,953.07

5,395,416

Payments to the health fund 1...................................................................... .
Sickness-insurance contributions for invalidity or old-age beneficiaries......... .
Old-age allowance for employees who reached age of 60 prior to Dec. 31,1928,
but did not fulfill requirements for regular pension............. ......................

2,220,064.30
1,367,759.40

312,363
192,444

489,748.37

68,908

Total expenditure for insurance and benefits____ _________________

42,424,525.14

5*969,131

Transferred reserves to other invalids-----. . . . . . ________________________

637,336.82

89,673

Expenditures

1

Fund used to defray expenses of temporarily disabled in sanatoriums, health resorts, etc.

211

121

AUSTRIA.

T a b le 7 .—Receipts and expenditures o f Austrian salaried employees* insurance
system , 1929— Continued
Amount
Item

Austrian
currency

United
States
currency

Schillings
1,056,572.66
18.601.43
40.821.43
813,532.63
1,423,796.27
20,224.96

$148,660
2,617
5,744
114,464
200,328
2,846

Total cost of adm inistration....._______________________________

3,373,549.28

474,658

Losses on securities and exchange____________________________________

196,517.09
12,608.62

27,650
1,774

Sinking fond:
Uncollectible contributions______________________________________
Furniture__- __ - _____- ________________________________________

147,449.16
2,333.75

20,746
328

Total sinking fund___________________________________________

149,782.91

21,074

5,509.22
55,226,867.68

775
7,770,420

Total e x p e n d it u r e s ............................_________ . . . . . . _. . . . 102,026,696.76

14,355,156

Cost of administration:
Current expenses of the institute.. . . . . . . . . _______________ __ __ ____
A rbitrations.....__. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _______ . . . . . . . . . . . . .
Benefit con trol...._____ . . . . . . . . . . . . . . . . . . . . . . . . . . . . _. . . . . . . . . . . . . . . . .
Investments for the offices, etc___________________________________
Reimbursements to insurance funds intrusted with part of routine work..
Fees for Government supervision_________________________________

Subsidy fu n d ........_. . . . . ________________________________________
Reserves . . . . . . . . . . . . . . . . . . . . . . . _-_. . . ____. . . . . ________________ _____

The average per capita cost of administration amounts to about
14 schillings ($2) per annum or to about 6 per cent of the annual
contributions.
In the above figures those employees are not included who are in­
sured with the Salaried Employees5 Insurance Institute for the
Press, Pharmacies, Agriculture and Forestry. The insured enrolled
with the three special institutes, however, number only 13,733 and
are therefore of but minor importance.
Wage Earners’ Insurance System
Coverage of System

Similar to the salaried employees5 insurance law, the wage earn­
ers5 insurance law provides compulsory sickness, accident, and oldage insurance for all persons who are working for wages on the basis
ox work, service, or apprenticeship agreement, provided that they
are not covered by the salaried employees5insurance law or the agri­
cultural laborers5 insurance law.
Exclusions.—Persons exempted from the provisions of the wage
earners5 insurance law include: (1) Wage earners who are
employed by the Government and are insured in the sickness insur­
ance funds for Federal employees; (2) persons employed on the
public railroads and by the Austrian National Bank, as well as sev­
eral other minor groups of wage earners provided for by special reg­
ulations; (3) wives, children, and parents of the employer; (4) char­
women, nurses, washerwomen, and seamstresses who work in private
households for not more than 24 hours per week and derive an in­
come therefrom not exceeding 40 schillings ($5.63) per month.

122

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Vohmtary insurance.—The wage earners’ insurance law also pro­
vides for voluntary insurance for those who have left a job subject to
compulsory insurance, provided the same lasted for at least 26 weeks
during the last 12 months and that their application for voluntary
continuation of their insurance is filed within 2 weeks after termina­
tion of the compulsory insurance.
Contributions

Contributions vary according to the daily wages of the insured, as
follows:
Class
Class
Class
Class
Class
Class
Class
Class
Class
Class

I ----------------------------------------------------------Up to 1.20 schillings (17 cents)
II_______________________________ 1.20 to 1.80 schillings (17 to 25 cents)
III______________________________ 1.80 to 2.40 schilUngs (25 to 34 cents)
I V --------------------------------------------- 2.40 to 3.00 schillings (34 to 42 cents)
V ----------------------------------------------- 3.00 to 3.60 schillings (42 to 51 cents)
V I ______________________________ 3.60 to 4.80 schillings (51 to 68 cents)
V I I _____________________________4.80 to 6.00 schillings (68 to 84 cents)
V III__________________________6.00 to 7.20 schUlings (84 cents to $1.01)
I X ______________________________ 7.20 to 8.40 schillings ($1.01 to $1.18)
X ____________________________8.40 schillings and over ($1.18 and over)

The total weekly contributions amount to 70 per cent of the basic
daily earnings of the wage class to which the individual workman
belongs, not less, however, than 0.56 schilling (6.5 cents). In other
words, it is as follows: In Class I, 0.56 schilling (6.5 cents) per
week; in Class II, 0.84 schilling (11.8 cents); in Classes III, IV,
and V, 0.42 schilling (5.9 cents) more than in the preceding class;
and in Classes VI to X , 0.84 schilling (11.8 cents) more than in the
preceding class. By the time the tenth wage class is reached, the
contributions amount to 5.88 schillings (83.7 cents) per week. This
percentage can, if found necessary, be changed by a decree issued
by the Federal Ministry for Social Welfare.
Of this contribution of 70 per cent of the basic daily wage, 45 per
cent is designated for sickness insurance, 5 per cent for accident
insurance, and 20 per cent for invalidity and old-age insurance.
The employer pays the entire contribution, but may deduct one-half
of the amount from the wages of the workman.
Benefits

The wage earners’ insurance law requires a qualifying period of
104 weeks before becoming eligible for the invalidity pension. Of
this time, however, 52 weeks of compulsory or 73 weeks of voluntary
insurance must fall within the last 5 years. For the old-age benefit
the qualifying period amounts to 500 weeks. In the case of an
employment subject to compulsory insurance, it is immaterial
whether the worker was duly enrolled and whether the contributions
were actually paid. In the case of voluntary insurance, however,
only contribution weeks are counted.
Invalidity benefits.—Permanent invalidity benefits are paid to
insured who are permanently disabled either physically or mentally
and can not earn at least one-third of the amount which they would
normally be able to earn in an employment reasonably appropriate

AUSTRIA

123

to their training and former occupation. Temporary invalidity
benefits are paid to insured temporarily disabled to the above-men­
tioned extent, provided the disablement has lasted for a longer period
than that for which sick benefits are paid.
If the invalid has been insured for at least 500 weeks, his monthly
benefit amounts to ten times the basic daily wage of the wage class
or classes to which he belonged during the last 104 weeks, but if he
has been insured for less than 500 weeks he is entitled only to 6%
times his basic daily wage. An insured of wage class X , for instance,
receives 84 schillings ($11.82) or 56 schillings ($7.88) per month,
depending on whether he was insured for more or less than 500
weeks. On the average the invalidity benefit therefore amounts to
about 40 per cent of the full wages. If the insured is disabled to
such an extent that he needs constant assistance and care, the benefit
is increased by 50 per cent.
For each child under 16 the invalid receives a children’s allowance
amounting for the first child to one-tenth and for each additional
child to one-twentieth of his pension, not less, however, than 12
schillings ($1.69) per month. This benefit is extended up to the
age of 18 if the child is either physically or mentally unable to
provide for himself.
Old-age benefits.—The old-age benefit falls due at the age of 65,
provided that the insurance has lasted for 500 weeks. The amount
is the same as with the invalidity benefit (ten times the basic daily
wage) and is paid irrespective of whether or not the insured retires
from work. If the insured postpones the drawing of his pension, the
latter is increased by three-fourths of his basic daily wage for each
year of postponement.
Widows’ and orphans’ benefits.—Survivors’ benefits are paid to the
widow (or widower6) who is entitled to one-half, and orphans under
18, who are entitled to one-fourth or three-eighths (depending as to
whether one or both parents are dead) of the benefit to which the
insured would have been entitled at the time of his death. The
combined survivors’ benefits, however, may not exceed the full bene­
fit to which the insured would have been entitled. Unless the widow
is an invalid, or has reached the age of 65, or has to provide for more
than two children under 18, her benefit is payable, however, for only
12 months.
The widow is excluded from the widow’s benefit if, at the time
the marriage was consummated, the insured had reached the age of
55 or was already an invalid, provided his death was not caused by
an accident or that children were not born or legitimized during
the marriage, or that the widow was not pregnant at the time of
the death of the insured. She is, furthermore, excluded from bene*
fit if the marriage was legally dissolved through her fault or if there
is a widow from a prior marriage who is entitled to the benefit.
If the widow, who is an invalid or over 65 years of age, should
remarry she receives a lump sum in the amount of three years’
benefits, instead of further benefits. If the insured left no widow but
6
The conditions under which a widower is entitled to the widower’s benefit are the
same as those under the salaried employees* insurance system.

83360°—32------9

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PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

a life companion (housekeeper), the latter is entitled to a widow’s
benefit up to 12 months.
The dowry allowance is paid to insured females who have been
insured for 104 weeks. This allowance amounts to four times the
monthly benefit to which they would have been entitled if they had
become invalids by that time, plus a fixed amount of 24 schillings
($3.38). The minimum benefit is 72 schillings ($10.13), the maxi­
mum 360 schillings ($50.65). This dowry allowance is paid irre­
spective of possible further claims for insurance benefits. In the
salaried employees’ insurance system the dowry allowance is con­
sidered as final payment.
Government grants.—Since the public poor funds will be consid­
erably relieved by the invalidity and old-age insurance it is pro­
vided that as soon as this insurance becomes elective the Government
shall grant a monthly subsidiary allowance to the beneficiaries.
These grants were fixed as follows: 6 schillings (84 cents) for each
invalid and old-age beneficiary, 3 schillings (42 cents) for the
widow, 1.50 schillings (21 cents) for a child who has lost one
parent, 2.25 schillings (32 cents) for a child who has lost both
parents, and 1 schilling (14 cents) for each child of an old-age or
invalid beneficiary.
Administration

The legal structure for the administration of workmen’s insurance
is similar to that of the salaried employees.
By the time the invalidity and old-age insurance of salary earners
goes into effect administration will be concentrated in the Wage
Earners’ Insurance Institute, which will also administer the accident
insurance. This institute will have jurisdiction over the whole
territory of Austria and will have its offices in Vienna. As under
the salaried employees’ insurance system, certain routine work will
be delegated to the local workmen’s insurance funds. At present
there is a large number of these funds in existence of the following
types: Establishment sickness insurance funds (BetriebskrankenJcassen), organized by an employer for the workmen of his indi­
vidual firm; labor-union sickness insurance funds (Genossenschaftsfcrankenkassen) , organized by the trade-unions for their apprentices
and journeymen; associations of sickness insurance funds (Vereinskrankenkassen) , organized by workmen’s associations; miners’ insur­
ance funds (Bunaeslade) ; or regional sickness insurance funds
{GebietsJcrankenkassen) , established for workers not yet insured in
any of the organizations named above. The present tendency is to
reduce the number of these local funds as much as possible and to
fuse the different small organizations into larger and consequently
financially stronger institutions. The wage earners’ insurance law,
therefore, also provides that in the future no new establishment, labor
union, or association sickness insurance funds may be established and
that all those who do not reach a certain minimum number of mem­
bers will have to be liquidated. In time there will only be terri­
torial regional sickness insurance funds (Gebietskrankenkassen) as
local workers’ insurance funds.
For the local wage earners’ insurance funds the wage earners’ in­
surance system provides that insured and employers shall be repre-

AUSTRIA

125

sented on the central committee and the board of directors in the
ratio of four-fifths to one-fifth. It reverses the proportion, however,
with regard to the supervising committees. In the Wage Earners’
Insurance Institute, whose president is appointed by the Government,
the representatives on the central committee are distributed equally
among employers and insured; on the board of directors the em­
ployers and insured are to be represented by 20 delegates each, and
the Government by 8. The benefit committees’ representation is the
same as that provided in the salaried employees’ insurance system—
one of its three members representing the employers, one the insured,
and the third the Federal institute.
Pending the going into effect of the invalidity and old-age benefit
system, the provisional old-age allowance is administered by the
wage earners’ accident insurance institutes, of which there exist
(until the Wage Earners’ Insurance Institute is established) one in
Vienna, one in Graz, and one in Salzburg.
Provisional Status of Old-Age Insurance

When passing the wage earners’ insurance and the agricultural
laborers’ insurance laws in 1927, the legislators realized that under
the existing economic depression Austrian trade, industry, com­
merce, and agriculture would, for the time being, be unable to bear
all additional burdens connected therewith.7 It was, therefore,
stipulated that the invalidity and old-age insurance introduced by
these two laws, as well as most of the other features of the wage
earners’ insurance law creating additional expenses in regard to the
already existing accident and sickness insurance of wage earners,
should be held in abeyance until the number of unemployed had
dropped to an average of 100,000, and until the combined effects of
increased exports, internal transportation, and agricultural produc­
tion should so improve the economic situation that the additional
social burden could be carried. The prolonged economic depression,
however, has kept the improvement from materializing as was ex­
pected. An amendment was therefore passed in 1929, providing
that, irrespective of economic conditions, the Government, with the
approval of the central committee of the National Council, should
decree the complete enforcement of the wage earners’ insurance
system as appropriate tax reductions were effected. Pending the
going into effect of the regular invalidity and old-age insurance
system, as has already been pointed out, provisional old-age allow­
ances have been provided.
Provisional old-age attowance.—Th§ provisional old-age allow­
ance is payable to all Austrian citizens who have reached the age
of 60 and who either were entitled to the emergency unemployment
benefit—that is, they had drawn unemployment benefits for more
than 30 weeks—or who were excluded from unemployment benefit
merely on account of being physically or mentally disabled for work.
Until the beneficiary reaches the age of 65, no provisional benefits
are paid while the beneficiary is in an employment subject to sickness
insurance. The payment of the allowance stops upon the death of
7 The additional expense for the invalidity and old-age pensions of wage earners is
estimated at 60,000,000 schillings ($8,442,000) per year, of which 45,000,000 schillings
($6,331,500) will be disbursed to wage earners and the rest to agricultural laborers.

126

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

the beneficiary, or when the regular old-age or invalidity benefit
goes into effect.
The monthly benefit amounts to twenty times the daily unem­
ployment benefit, but not less than 18 shillings ($2.53). On the
average it amounts to 56 shillings ($7.88) a month.
The funds necessary for the provisional old-age allowance are
being advanced by the Federal Government, which, however, will
ultimately bear only two-twelfths of the cost, since the rest has to
be refunded to it through contributions on the part of the employer
(three-twelfths), wage earners (three-twelfths), and Province
(State) of which the beneficiary is a resident (four-twelfths). The
contributions of the employer and the wage earner amount to 20
per cent of the sickness insurance contribution.
Special provisions for domestic servants and miners.—Domestic
servants, while subject to the wage earners’ insurance law, are ex­
cluded from the benefits provided for in the unemployment law.
Since the provisional old-age allowance is based upon the latter, the
domestic servants would consequently also be excluded from the pro­
visional old-age allowance. A special law was therefore enacted on
December 27,1927, providing that Austrian citizens who have reached
the age of 60 and who, during the last six years, have been employed
for at least two years as domestic servants, are unemployed, and in
need of financial support, are entitled to a monthly allowance of 30
schillings ($4.22).
The necessary contributions for this allowance amount to 20 per
cent of the sickness insurance 8 contributions and are borne half by
the employer and half by the servant.
As far as miners are concerned, compulsory invalidity insurance
was introduced by the mining law of 1854. The provisions referring
to the social insurance of miners were subsequently replaced by the
law of 1889. During and after the war, the miners’ insurance was
reorganized by several laws and decrees. At present, the law of
November 23, 1927 provides that invalid miners shall receive an
invalidity benefit of 600 schillings ($84.42) per year, widows of
miners 300 schillings ($42.21), orphans who have lost one parent 168
schillings ($23.64), and orphans who have lost both parents 204
schillings ($28.70) per year; widow and orphans together, however,
not more than 600 schillings per year.
The same law also introduced a provisional old-age allowance
for miners who have reached the age of 65 and have no other income
by which they can support themselves. Since 1928 the age limit has
been reduced to 60 years. The provisional old-age allowance is the
same as the invalidity benefit of miners referred to above. The in­
validity benefit is administered by the miners’ insurance funds and
the provisional old-age allowance by the wage earners’ accident
insurance funds.
By the time the wage earners’ regular invalidity and old-age in­
surance goes into effect, the special provisions for miners will be
abolished, and the latter will then be subject to the general provisions
of the wage earners’ insurance fund.
8 At present the sickness insurance contribution for servants amounts, as a rule, to 1.35
schillings (19 cents) per week.

127

AUSTRIA

Assistance granted through 'provisional old-age allowance.—The
provisional ( ld-age allowance introduced by the wage earners’ in­
o
surance law covers, in round numbers, 1,100,000 wage workers (in­
cluding miners) and 150,000 domestic servants.
At the end oi the year 1929 the beneficiaries included 42,700 wage
earners, 1,600 miners, and 2,300 domestic servants.
The receipts and expenditures under the old-age allowance were,
in 1929, as shown in the table following :
T able 8 . —Receipts and expenditures for provisional old-age allowances in

Austria, 1929
[Conversions into United States currency on basis of schilling=14.07 cents]
Amount
Receipts
Austrian
currency

United
States
currency

Amount
Expenditures
Austrian
currency

United
States
currency

Schillings
Benefits paid to—
Wage workers______ 21,856,808.41 $3,075,253
940,736.87
132,362
Miners......................
656,163.54
92,322
Domestic servants__

Schillings
Reserves at end of 1928__ 4,372,831.73 $615,257
Contributions from em­
ployers and insured___ 19,979,317.93 2,811,090
C o n trib u tio n s from
States.......................... 7,914,990.05 1,113,639
Contributions from Fed­
eral Government_____ 3,957,445.02
556,813

Total benefits........ 23,453,708.82 3,299,937
Cost of administration.. 1,036,633.34
145,854
Reserves at end of 1929.. 11,734,222.57 1,651,005

Total receipts-____ 36,224,584.73 5,096,799

Total expenditures. 136,224,584.73 5*096,799

i Not the exact sum of the items, but as given in the report.

It is seen from the above table that the cost of administration
forms some 4.4 per cent of the amount paid out in allowances.
Agricultural Laborers’ Insurance System
Coverage of System

The agricultural laborers’ insurance law provides compulsory sick­
ness, accident, invalidity, and old-age insurance. These branches of
insurance cover all persons who, on the basis of work, service, or
apprenticeship agreement, are employed in agriculture, forestry, non­
commercial horticulture, with agricultural associations or organiza­
tions (dairies, agricultural warehouses), or as domestic servants in
rural households. The following are excluded: The wife (husband)
of the employer, as well as other members of his family, provided he
has obligated himself to provide for them in case they should fall
ill or meet with an accident or become invalids; and wage earners
who perform the work mentioned above merely as a side job and
receive therefor a compensation which does not reach a certain
rninimnmT
At the suggestion of the principal agricultural and forestry organ­
izations and of the individual provincial Governments, also iarm
owners and tenant farmers as well as their wives, may, by Govern­
ment order, be brought under compulsory insurance against acci­
dent or invalidity and old age. In several Provinces this has already
been done, at least as far as accident insurance is concerned.

128

PENSIONS AND INSURANCE IN FOBEIQN COUNTRIES
Contributions

The contributions under the agricultural laborers’ insurance, also,
are based on the wage-class system, which is fixed as follows:
Daily earnings, including payment in kind

Class
Class
Class
Class
Class
Class
Class
Class
Class

I----------------------------------------------------------- Up to 0.80 schilling (11
II-----------------------------------------------1.20 to 1.80 schillings (17 to 25
III--------------------------------------------- 1.20 to 1.80 schillings (17 to 25
I V --------------------------------------------- 1.80 to 2.40 schillings (25 to 34
V -----------------------------------------------2.40 to 3.00 schillings (34 to 42
V I --------------------------------------------- 3.00 to 3.60 schillings (42 to 51
V I I --------------------------------------------3.60 to 4.80 schillings (51 to 68
V I I I 9---------------------------------------- 4.80 to 6.00 schillings (68 to 84
IX •
-----------------------------------------------More than 6.00 schillings (84

cents)
cents)
cents)
cents)
cents)
cents)
cents)
cents)
cents)

Whereas the contributions for the sickness insurance are fixed by
the local sickness insurance funds under the supervision of the pro­
vincial government, the weekly contributions for the accident insur­
ance are fixed at 5 per cent and those for the invalidity and old-age
insurance at 20 per cent of the basic daily wage of the wage class to
which the insured belongs. The percentage is subject to change by
ministerial decree if found necessary. The contributions are col­
lected from the employer, who may deduct half of the contributions
from the wages of the employee. The employers of forestry work­
ers must, in addition to the above contributions, pay an extra-risk
contribution to the amount of four-tenths of the basic wage. A
peculiarity of the agricultural laborers’ insurance law is, that upon
demand of the main agricultural organizations of a Province, the
Ministry for Social Welfare can decree that contributions for acci­
dent, old-age, and invalidity insurance may be assessed in a lump
sum based on the real-estate tax, revenue, and pay roll of the red
estate on which the workman is employed. In this case it has to be
borne by the employer. Up to the present this assessment has been
adopted in one Province only, and there only with regard to accident
insurance.
Benefits

Invalidity benefits.—The agricultural laborers’ insurance law re­
quires the same qualifying period for the invalidity benefit as the
wage earners’ insurance law, namely 104 weeks. It is immaterial
whether the laborer was duly enrolled and the contributions actually
paid, provided that he was engaged in an employment subject to
compulsory insurance.
The requirements which entitle one to the benefits of this law are
identical with those stipulated in the wage earners’ insurance law,
with the exception, however, that persons with deficiencies from birth
are excluded from the benefits.
If the invalid has been insured for at least 500 weeks his monthly
benefit amounts to ten times the basic daily wage. If he has been
insured for less than 500 weeks, his monthly benefit amounts to 6%
times the basic daily wage of the wage class to which he belonged
during the last 104 weeks. In the highest wage class which agricul­
tural and forestry laborers (with the exception of sawmill employees)
9 In Classes VIII and IX can be enrolled (with the exception of seasonal workers) only
wage earners who do not live in the home of their employer; Class IX is exclusively
reserved for sawmill and forestry workers.

AUSTRIA

129

can reach, the benefit in case of 500 weeks’ insurance amounts to 48
schillings ($6.75) and in case of less than 500 weeks’ insurance to 32
schillings ($4.50) per month?which is considerably less than the bene­
fits under the wage earners’ insurance law. The increases in case the
invalid needs permanent care and assistance, as well as the children’s
benefits, are the same as provided in the wage earners’ insurance law.
Old-age benefits.—The requirements for the old-age benefit are the
same as under the wage earners’ insurance law. The old-age benefit
is payable at age 65, alter 500 weeks’ insurance. The amount of bene­
fit is the same as that granted to invalids who have been insured for
more than 500 weeks. If the insured postpones the drawing of the
old-age benefit, the latter is increased by three-fourths of 1 per cent
of his basic wage for each year of postponement.
Widows’ and orphans'* benefits.—Survivors’ benefits are paid to the
widow (or widower) who is entitled to one-half, and orphans under
18, who are entitled to one-fourth or three-eighths (depending as to
whether one or both parents are dead) of the benefit to which the
insured would have been entitled at the time of his death. The com­
bined survivors’ benefits, however, may not exceed the full benefit to
which the insured would have been entitled. Unless the widow is an
invalid, or has reached the age of 65, or has to provide for more than
two children under 18, her benefit is payable for 12 months only.
The widow is excluded from benefit if, at the time the marriage was
consummated, the insured had reached the age of 55 or was already
an invalid, provided his death was not caused by an accident or that
children were not born or legitimized during the marriage, or that the
widow was not pregnant at the time of the death of the insured.
She is, furthermore, excluded from benefit if the marriage was legally
dissolved through ner fault or if there is a widow irom a prior
marriage who is entitled to the benefit.
If the widow, who is an invalid or over 65 years of age, should
remarry she receives a lump sum in the amount of three years’ bene­
fits, instead of further benefits. If the insured left no widow but a
life companion (housekeeper), the latter is entitled to a widow’s
benefit up to 12 months.
The dowry allowance amounts to four times the invalidity benefit,
plus a fixed amount of 24 schillings ($3.38).
Government grants.—The additional grants from Government
funds are fixed as follows: 12 schillings ($1.69) for each invalid or
old-age beneficiary, 3 schillings (42 cents) for the widow, 1.50 schill­
ings (21 cents) for a child who has lost one parent, and 2.25 schillings
(32 cents) for a child who has lost both parents.
Administration

The invalidity and old-age insurance systems for agricultural
laborers is administered by an agricultural laborers’ insurance insti­
tute for each individual State or for a group of several States.
Such district institutes are now established in Vienna, Linz, Klagenfurt, Graz, and Innsbruck. Under this system, also, part of the
routine work is left to the.local agricultural laborers’ insurance

130

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

funds. On© of these has been established for each Federal State,
primarily for the purpose of administering the sickness insurance.
On the board of directors of the local insurance funds, as well as
on the central committee of these, employers and insured are repre­
sented in the ratio of two-fifths and three-fifths; on the supervising
committee, however, the proportion is reversed. On the central
committee of the district agricultural laborers5 insurance institutes,
employers and insured have equal representation, while on the board
of directors there are 10 representatives of the employers, 10 repre­
sentatives of the insured, and 4 representatives of the Government.
The benefit committees are composed of three members, one repre­
senting the employers, one the insured, and one the insurance
institute.
Provisional Old-Age Allowance
The provisional old-age allowance is payable to agricultural la­
borers over 60 years of age who are resident citizens of Austria (1)
who were formerly beneficiaries under the emergency unemployment
allowance,1 as well as those who were excluded from the latter
0
allowance merely on account of being physically or mentally disabled
for work; and (2) who, during the last six years have, for at least
two years, been engaged in some employment subject to compulsory
sickness insurance under the agricultural laborers5 insurance law,
provided they are out of work and in need of financial support at
the time when filing their claim.
For the first group the provisional old-age allowance amounts to
twenty times the unemployment allowance, but not less than 18
schillings ($2.53) per month. In the second group it amounts to
6% times the basic daily wage of the wage class to which the in­
sured belonged, plus 6 schillings (84 cents).
As explained m the section on wage earners5 insurance, the funds
necessary for the provisional old-age allowance are being advanced
by the Federal Government, which, however, will ultimately bear
only two-twelfths of the cost, since the rest has to be refunded
through contributions by the employer (three-twelfths), the wage
earners (three-twelfths), and the State of which the beneficiary is a
resident (four-twelfths). The contributions of the employer and
the wage earner amount to 20 per cent of the sickness insurance
contributions.
Provisional old-age allowances paid.—At the end of 1929 the num­
ber of persons insured aggregated 305,000, and the number of per­
sons drawing allowances 14,346. Since that time the number of
beneficiaries has increased to about 20,000, as not all the claims were
filed or could be passed upon during 1929, which was the first year
in which the allowances were extended to agricultural laborers.
The receipts during the year 1929 amounted to 5,400,000 schillings
($759,780), the allowances paid to 3,502,000 schillings ($492,731),
and the cost of administration to 316,000 schillings ($44,461). For
M Under the provisions.. o f the unemployment law only very few classes of agricultural
laborers, such as sawmill employees and laborers. employed by agricultural associations,
are entitled to unemployment allowance.

AUSTRIA

131

the year 1930, about 6,000,000 schillings will be necessary to cover
the expenditures for allowances.
As yet there is no sufficient basis on which to compute the cost of
administration per capita or in relation to benefits.
S o u r c e s f o r A u s t r i a : Reichsgesetzblatt, No. 127, 1889; Staatsgesetzblatt, No. 196,
1920; Bundesgesetzblatt, Nos. 125, 338, and 368, 1927, Nos. 232, 235, and 256, 1928,
and Nos. 247 and 253, 1929; Hauptanstalt fur Angestellten versicherung, Jahresbericht
und Rechnungsabschluss, 1929; Versicherungsanstalt ftir Pharmazeuten, Taetigkeitsbericht
und Rechenschaftsbericht, 1929; Bundesministeriums ftir Soziale Verwaitung, Mitteilungen, 8 /1930; Grundriss des oesterreichiscben Sozialrecbtes, by Max Lederer.

Belgium
By W alter S. K e in eo k , American, Consul, Antwerp

Wage Earners’ and Independent Workers* Insurance System
Coverage of System

The law of December 10, 1924, on insurance against old age and
premature death, amended by the law of July 19, 1927, was revised,
and the new law, published on July 14,1930, provides for compulsory
insurance for (1) wage earners of either sex employed in Belgium
and connected with an enterprise having its headquarters in Bel­
gium, and (2) independent workers whose professional income does
not exceed 18,000 francs ($500.40) a year.1
1
The following are exempt from the provisions of the law:
(1) Miners, for whom there is a special old-age insurance system.
(2) Seamen, provided for by the special fund for assistance to
seamen, affiliation to which is compulsory.
(3) Salaried employees subject to the specific law relating to the
old-age insurance of salaried employees.
(4) Persons in the employ of the State, Provinces, communes,
public institutions or public utilities, entitled to annuities under
other laws. %
Persons not subject to the provisions of the present law and over
six years of age may insure at will. A special decree to be issued
later will establish the conditions under which children of independ­
ent workers, employed by their parents, will be affected by the provi­
sions of the law.
Contributions

Wage earners* contributions.—Contributions must be made each
month by the wage earner and the employer jointly, such contribu­
tions being calculated on the basis of the wages received by the
wage earner at the first pay day in that month. For the purpose of
the contributions, the following eight wage classes are established:
T able 9 . — W age classes established under old-age insurance system in Belgium
[Conversions into United States currency on basis of franc® 2.78 cents]
Amount of wages—
Wage
class
Per week
Class 1__
Class 2__
Class 3__
Class 4__
Class 5__
Class 6__
Class 7__
Class 8__

Per 10 days

Per fortnight

Under 50.00 fr. ($1.39)----------50.01-75.00 fr. ($1.39-$2.09)____
75.01-100.00 fr. ($2.09-$2.78).—
100.01-125.00 fr. ($2.78-$3.48)—
125.01-150.00 fr. ($3.48-$4.17)__
150.01-175.00 fr. ($4.17-$4.87)—
175.01-200.00 fr. ($4.87-$5.56)—
Over 200.00 fr. ($5.56)________

Under 70.00 fr. ($1.95).............
70.01-105.00 fr. ($1.95-$2.92)___
105.01-140.00 fr. ($2.92-$3.89)
140.01-175.00 fr. ($3.89-$4.87)—.
175.01-210.00 fr. ($4.87-$5.84)-_.
210.01-245.00 fr. ($5.84-$6.69)__
245.01-280.00 fr, ($6.69-$7.78)_
Over 280.00 fr. ($7.78)________

Under 100.00 fr. ($2.78).
100.01-150.00 fr. ($2.78-$4.17)
150.01-200.00 fr. ($4.17-$5.56).
200.01-250.00 fr. ($5.56-$6.95).
250.01-300.00 fr. ($6.95-$8.34).
300.01-350.00 fr. ($8.34-$9.73).
350.01-400.00 fr. ($9.73-$11.12).
Over 400.00 fr. ($11.12).

n Conversions
132

into United States currency on basis o f franc equals 2.78 cents.

133

BELGIUM

The monthly contributions for the workers in industries offering
no special health hazard and for those in unhealthful industries are
as follows:
T able 1 0 .— M onthly contributions required under old-age insurance system in

Belgium
[Conversions into United States currency on basis of franc=»2.78 centsj
Ordinary industries

Wage class

Wage earners' Employees'
contributions contributions

Total con­
tributions

Unhealthful industries
Wage earners’ Employers*
contributions contributions

Total con­
tributions

Bel­ United Bel­ United Bel­ United Bel­ United Bel­ United Bel­ United
gian States gian States gian States gian States gian States gian States
cur­ cur­ cur­ cur­ cur­ cur­ cur­
cur­ cur­ cur­ cur­ cur­
rency rency rency rency rency rency rency rency rency rency rency rency
Francs Cents Francs Cents Francs Cents Francs Cents Francs Cents Francs Cents
7.0
8 22.2
7.0 2.50
5 13.9
4 11.1
4 11.1
______ 2.50
Class 1—
Class 2_______ 3.50
8.0
6 16.7
12 33.4
8.0 3.50
7 19.5
6 16.7
8 22.2
Class 3_______ 5.00 13.9 5.00 13.9
16
44.5
10 27.8
8 22.2
10 27.8
10 27.8
20 55.6
13 36.1
Class 4_______ 6.50 18.1 6.50 18.1
Class 5_______ 8.00 22.2 8.00 22.2
24
12 33.4
12 33.4
66.7
16 50.0
14 38.9
14 38.9
Class 6_______ 9.50 26.4 9.50 26.4
28
77.8
19 52.8
90.0
Class 7_______ 11.00 30.6 11.00 30.6
22 61.2
16 44.5
16 44.5
32
18 50.0
25 69.5
18 50.0
36 100.1
Class 8_______ 12.50 34.8 12.50 34.8

The Government is authorized to fix special rates when the above
scale is not applicable. Such rates will be calculated as follows:
For workers in ordinary industries, at the rate of 1.33 per cent of the
wages, with a maximum contribution per year of about 150 francs
($4.17) by the wage earner and the employer, respectively; for
workers in unhealthful industries, at the rate of 2 per cent, with a
maximum contribution of 200 francs ($5.56) by wage earner and
employer.
Contributions by independent workers are fixed at a minimum of
1.50 per cent of their annual professional income up to a maximum
of 12,000 francs ($333.60) per year. The contribution may not,
however, be less than 60 francs ($1.67) per year for female workers,
and 120 francs ($3.34) for male workers.
The contributions of the workers must be made until the age of
65 is reached.
The employer’s contribution must be paid for all wage earners in
his service; contributions for workers who have passed the age of
65 are paid into the fund for widows and orphans, instead of to the
insurance organization.
If the insured wage earner is out of work as a consequence of an
industrial accident, his contributions are deducted, until he is able
to resume work, from the indemnity paid him under the workmen’s
compensation law. The employer’s contributions must be paid dur­
ing such time by the employer in whose service the injury was sus­
tained. If the employer has a contract for the payment of such
compensation with an insurance organization duly recognized by
the Government, the latter deducts the wage earner’s contribution
from the compensation payable and sends this amount every month
to the employer.

134

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

System for collecting contributions.—The employer deducts the
amount of the wage earner’s contribution from his salary and remits
such amount, at the same time as his own contribution, directly to
the insurance fund or to a mutual-benefit society which is authorized
to act as intermediary. A decree will stipulate the conditions under
which such remittances are to be made.
Contributions made by independent workers or by persons volun­
tarily insured are remitted to the insurance fund or to a mutualbenefit society duly authorized to act as intermediary under the
conditions to be fixed by decree.
Regulations will be issued later governing the payments for work­
ers who are paid wholly or partially in kind or whose remuneration
consists wholly or partially of tips, whether these are paid directly
to the employee or to the employer; workers employed by the job
or on piecework, whether in a workshop or at home, in the service
of several employers; workers who are not paid periodically; and
workers occupied intermittently in the service of one or many
employers.
State contribution.—The State contributes, in general, 50 per cent
of the annual old-age benefit, this contribution beginning when the
annuity becomes payable to the beneficiary for the normal periods,
i. e., for those born after 1884. For those born before that year
the State contribution is fixed as follows:
Males bom during period—
Percent
1867 to 1874__________________________________________
100
1875 to 1879__________________________________________
75
1880 to 1884__________________________________________
60
Females born during period—
100
1872 to 1874__________________________________________
1875 to 1879__________________________________________
75
60
1880 to 1884----------------------------------------------------------------

When the annuity begins at the age of 65, the maximum annual
amount contributed by the State is 1,200 francs ($33.60); if benefit
begins at an earlier age the State contribution is reduced according
to a scale to be fixed by decree.
Provided the contributions required by the law have been made
regularly, the State contribution is granted also on annuities to (1)
the widow of an insured person; (2) the beneficiaries of a female
insured person; (3) the wife of any person voluntarily insured, his
legitimate children under 18 years of age, or the person having
charge of his children; (4) any person voluntarily insured whose
annual income does not exceed 24.000 francs ($667.20), and to his
wife and legitimate children from 6 to 18 years of age.
The State contribution is not granted to insured persons of foreign
nationality unless the country of origin of such foreigners provides
for equal advantages to Belgians.
Benefits

Ordinary benefits.—Contributions made in conformity with the
provisions of the present law are destined to insure old-age an­
nuities to the following:
(1) Married males under 18 years of age.

BELGIUM

135

(2) Married males over 18 years of age; also to their widows,
provided the marriage occurred before the husband reached the pen­
sionable age. The widow’s benefit varies with the respective ages
of husband and wife at the time of the husband’s death, but may not
exceed 50 per cent of the husband’s benefit. Upon the authorization
of the superior council for old-age pensions, and provided the hus­
band’s death occurred before he commenced to draw his old-age
annuity, the widow’s benefit may be commuted to a lump sum not
exceeding one-half of the capitalized value of the annuity to which
she is entitled.
(3) Unmarried, widowed, or divorced males over 18 years of age.
Should the insured die before beginning to draw benefit, half of
the funds credited to his account are remitted to his descendants (or
to his ascendants in the absence of descendants under 16 years of
age), and the other half is turned over to the fund for widows and
orphans.
(4) Females under 18 years of age.
(5) Unmarried and married females over 18 years of age. Such
a person may elect that, in case of death before beginning to draw
benefit, the annuity shall be paid to designated persons whom the
insured female supported or to her husband; the survivors’ annuity
in such cases may not exceed 30 per cent of the benefit to which the
insured would have been entitled.
Annuities become payable at ages of 65 and 60 to male and female
beneficiaries, respectively. At option and by giving 12 months’
notice, this may be advanced to 60 and 55 years or 55 and 50 years,
but in such cases the amount of annuity is reduced proportionately.
In the case of wage earners in unhealthful industries, the annuity
becomes payable at 55 for males and 50 for females.
The annuities vary in amount according to the length of time dur­
ing which contributions have been made. As already shown, the
State assumes the major part of the cost of the pensions of those
born during the earlier years, its share diminishing thereafter in pro­
portion as the employers’ and workers’ contributions have accum­
ulated.1
2
Increased benefits.—Increases in the regular pensions are granted
to insured persons of Belgian nationality and foreigners whose coun­
try grants similar rights to Belgians who were born between the
years 1867 and 1907, if their regular premiums have been paid.
These increases range from 50 francs (fl.38) per year for persons
in the first wage class to 250 francs ($6.95) per year for persons in
the eighth class, and from 60 to 120 francs ($1.67 to $3.34), accord­
ing to the sex of the insured, for independent workers. Others not
ordinarily entitled to this increase, including persons taking out vol­
untary insurance, may receive this increase if their actual annual
income does not exceed a certain fixed sum. Additional allowances
are granted to widows born prior to 1907 and an allowance of 240
francs ($6.67) is paid for each child under 16 years of age. In
18 A table compiled by the committee reporting the law to the Chamber o f Deputies gives
the amount o f the pension o f a married man at the age o f 65 in 1934 as 3,304 francs
($91.85), and at the same age in 1982 as 3,879 francs ($107.84) ; o f an unmarried man
a t the same age as 2,204 francs ($61.27) and 3,879 francs ($107.84), respectively; and
o f a widow aged 65 who was the same age as her husband 678 francs ($18.85) in 1937
and 1,723 francs ($47.90) in 1977.

136

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

case of the death of the surviving husband or wife of the insured
person, this amount is increased to 420 francs ($11.68) paid to the
organization or person having charge of the children.
The maximum amount of increase is 3,200 francs ($78.96) to a
married beneficiary and 2,100 francs ($58.38) to an unmarried,
widowed or divorced beneficiary.
Administration

The general savings and retirement fund administers the insur­
ance system, under the supervision of the Minister of Industry,
Labor, and Social Welfare.
The superior council for old-age pensions, instituted in the Min­
istry of Industry, Labor, and Social Welfare, decides upon all mat­
ters relating to the interpretation and execution of the present law,
and upon the applications made by widows of the insured for annui­
ties. This council is aided by a subcommission.
The expenses incurred by this council are covered by the annual
budget of the Ministry of Industry, Labor, and Social Welfare.
To cover administrative expenses an annual subsidy will be
granted to authorized mutual benefit societies which will act as in­
termediaries between the insured and the general savings and retire­
ment fund. The amount of such subsidy and the conditions under
which granted will be fixed by a royal decree.
A special fund, the endowment fund for the payment of increases
of old-age annuities, provides for the increased benefits. Its funds
are made up of the proceeds of the annual allowance of 525,000,000
francs ($14,595,000) allotted for this purpose in the State budget,
as well as, eventually, special additional funds requisitioned from
the legislative body.
Increases of widows’ annuities and allowances to orphans are paid
from the fund for widows and orphans.
Salaried Employees’ Insurance System
The law of March 10, 1925, relating to insurance against old age
and premature death of salaried employees was revised by the law
of June 18, 1930. The conditions for the execution of the new law
were fixed by decree, and the law itself does not become effective
until six months after the date of the publication of that decree.
Coverage of System

The law provides for compulsory insurance by persons of the
following classes:
(1) Persons of either sex, of Belgian nationality, in the employ,
in Belgium or abroad, of a Belgian firm or the branch of a foreign
firm established in Belgium, and whose services are paid for by such
concerns.
(2) Employees of either sex, of foreign nationality, who are
working in Belgium for a Belgian firm or the branch of a foreign
firm established in Belgium and whose services are paid for by such
concerns.

BELGIUM

137

(3) Persons of either sex, in the employ of the State, Provinces,
communes, of public institutions, or of public utilities, who are not
otherwise provided for under systems entitling them to an old-age
annuity or providing benefits for their widows and orphans under
18 years of age, in the event of their death.
(4) Professional journalists.
(5) Members of the teaching profession employed in private
educational establishments, to whom the specific laws relating to
pensions to persons exercising such profession are not applicable.
(6) Operatic and dramatic artists or musicians (instrumentalists)
exercising their profession in Belgium, in consequence of a contract
for services with the manager of an enterprise for a period of at
least one month.
The present law exempts from its provisions employees of either
sex, of Belgian nationality, working in Belgium for a foreign con­
cern having no branch office in Belgium, and employees residing in
Belgium and working abroad for a foreign concern having no branch
office in Belgium, ouch employees may, however, elect to come
under the law and make the prescribed contributions, in which case
they become entitled to its benefits.
Contributions

Employees’ and employers' contributions.—Contributions must be
made by the employee at the rate of 3 per cent of his salary up to a
maximum of 18,000 francs ($500.40) a year. The maximum contri­
buted by the employee is 540 francs ($15.01) a year.
The employer’s contribution is fixed at 4 per cent until 1960, with
a maximum of 720 francs ($20.02); 4y2 per cent from 196i to 1975,
with a maximum of 780 francs ($21.68); 4% per cent from 1976 to
1990, with a maximum of 840 francs ($23.35); and 5 per cent from
January 1,1991, a maximum of 900 francs ($25.02).
The term “ remuneration5 covers any sum paid to an employee as
5
the result of a contract for services, namely, salaries at fixed rates,
cost-of-living bonuses, commissions, percentages, allowances for
an extra month, dismissal wage, and payments in kind.
Contributions must be made by men up to the age of 65 and by
women up to the age of 60.
The employer’s contribution is due for each employee in his
service, even for an employee hired on trial, and must be made at the
periods fixed for the payment of such contributions.
The employee’s contribution is deducted from his salary by the
employer. The procedure for the remittance of the employee’s as
well as the employer’s contribution to the insurance organization is
to be determined by decree.
State contribution.—The contribution of the State is due when the
insured person begins to receive his old-age annuity. It varies ac­
cording to the length of time during which the insured person has
been paying contributions, but the maximum amount of the State
contribution is fixed at 1,200 francs ($33.36). No payment is made
by the State for insured foreign workers unless their native country
grants the same privileges to Belgians.

138

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Benefits

Annuities are payable to the following:
(1) A married male employee; also to his widow, provided the
marriage occurred before he began to benefit from the old-age
annuity. The amount of life annuity paid to the widow varies with
the respective age of husband and wife at the time of the husband’s
death and may not exceed 50 per cent of the husband’s old-age benefit.
Upon the authorization of the superior council for pensions to em­
ployees, and upon condition that the husband’s death occurred before
beginning to draw benefit, the widow’s benefit may be commuted to a
lump sum not exceeding one-half of the capitalized value of the
annuity of which she is the beneficiary.
(2) An unmarried, widowed, or divorced male employee. In
case such employee dies before* benefiting from his old-age annuity,
three-sevenths of the capital to his credit is turned over to his de­
scendants or ascendants, or in the absence of either descendants or
ascendants, to the persons designated by him as beneficiaries of his
estate. The balance (four-sevenths) is remitted to the fund for al­
lowances to employees. In the absence of heirs or beneficiaries, the
total amount is turned over to the aforementioned fund. In case
such employee had begun to draw benefit before his death, the total
amount of the capital is turned oyer to the fund for allowances to
employees. However, the beneficiary of an old-age annuity may
obtain the conversion of three-sevenths of ,such capital into an an­
nuity for his own benefit, and in such case only the balance of the
capital is remitted to the fund. Should the beneficiary of the oldage annuity marry or remarry and die before his wife, the fund
for allowances to employees provides for a life annuity to the widow.
In case the beneficiary is not married at the time of his death and
has not requested the conversion above referred to for his own bene­
fit, the capital turned over to the fund for allowances to employees
is allotted to the descendants «or ascendants of the deceased or to the
beneficiaries of his estate designated by him. If the conversion has
been requested, the capital remitted to the fund for allowances to
employees remains in the possession of such fund.
(3) A female employee. Upon the approval of the superior
council for pensions to employees, she may elect that in case of her
death before benefiting from the old-age annuity the funds in her
account shall be used for a life annuity to persons whom she sup­
ported, but not to exceed in amount 30 per cent of her old-age an­
nuity. A female employee who has made the prescribed contribu­
tions may, at the time the annuity becomes payable, elect to have the
annuity commuted to a lump sum not to exceed three-sevenths of the
capitalized value of her annuity.
The benefits under the system begin at the age of 65 for males
and 60 for females; the beneficiary may advance these years to 55
and 50, respectively, but in that case the benefits are reduced
proportionately.
The amount of the annuity varies with the period and amount of
the contributions.
Supplementary allowances.—Supplementary allowances are paid
(1) to pensioned employees (male and female) who were born dur­

BELGIUM

139

ing a specified period prior to January 1, 1895, and have made the
required contributions, (2) to their widows, provided the difference
between the ages of husband and wife is less than 20 years, pro­
vided the marriage did not take place after the husband began to
draw his annuity, and provided the widow does not remarry, and
(3) to the children under 18 years of age.
The amount of the allowance to beneficiaries under (1) may not
exceed 50 per cent of the average annual pay during the last 5 yearns;
and in case of beneficiaries under (2) may not exceed 25 per cent
of the husband’s average annual salary during that period. The
amount of the children’s allowance is to be fixed by decree.
Up to the time when the laws relating to compulsory insurance in
case of invalidity will be effective, the fund grants to insured em­
ployees who have become totally and permanently incapacitated an
allowance the amount of which and the conditions under which
granted are to be fixed by royal decree.
Administration

The insurance system for employees is administered by the fol­
lowing organizations: The National Fund for Pensions to Em­
ployees; the General Savings and Retirement Fund; and insurance
establishments duly recognized by the Government upon the recom­
mendation of the superior council for pensions to employees. Such
insurance establishments consist of (a) the autonomous insurance
organizations established in the commercial, industrial, or financial
enterprises, (6) common insurance organizations instituted by the
heads of enterprises, and (< insurance companies legally con­
?)
stituted.
The organizations described under (a) and (b) are administered
by a council comprising an equal number of employers’ and of
employees’ representatives. The National Fund for Pensions to
Employees, in the Ministry of Industry, Labor, and Social Welfare,
is under the control and guaranty of the State and is governed by a
board of directors and by a general managing director. The board
of directors is composed of 5 employees’ representatives, 5 em­
ployers, and 5 representatives of the Minister of Industry, Labor,
and Social Welfare, among whom are the managing director and
the “ actuaire ” of insurance and social welfare, and the director of
the department of old-age pensions.
With the exception of the aforementioned functionaries who are
ex officio members, the members of the board are designated by the
King for a period of six years. Every three years one-half of the
members go out of office.
The managing director of the national fund for pensions to em­
ployees is designated by the King and may never be a member of
the board of directors.
The regulations relating to the functioning of the national fund
are to be fixed by decree.
The employee may choose the insurance organization to which he
wishes to be affiliated and to which his contributions, as well as those
of the employer, shall be paid. Employees must be affiliated to the
83360°—32------10

140

PENSIONS AND INSUBANCE IN FOREIGN COUNTRIES

National Fund for Pensions to Employees if they are not affiliated to
another insurance organization.
It is the duty of the superior council of pensions to employees in
the Ministry or Industry, Labor, and Social Welfare to decide upon
requests for the official recognition or repeal of insurance organiza­
tions, appeals against decisions by the fund, applications for the
annuity made by widows of insured employees, and all matters per­
taining to the interpretation and execution of the present law.
The fund for allowances to employees is a solidarity fund under
the control of the Ministry of Industry, Labor, and Social Welfare.
It decides upon applications for and payments of old-age allowances
to employees, allowances to widows of employees, allowances to
orphans of employees, and allowances to employees for invalidity.
it is administered by a board of directors and by the managing
director of the National Fund for Pensions to Employees.
Its funds consist of the following:
(1) Contributions made by all employers, the annual amounts of
such contributions being fixed, per employee on December 31, at
120 francs ($3.34) until 1960, 80 francs ($2.22) for the years 1961 to
1975, and 40 francs ($1.11) for the years 1976 to 1990. If the em­
ployee works for several employers, each employer must contribute,
unless the employee’s salary is less than 3,500 francs ($97.30). In
this case the contribution is only half of the above-mentioned sums.
(2) Contributions made by employees bom before January 1,
1895, that is to say by all employees who, in view of their age, are
entitled to an old-age pension. The amounts of such contributions
are: 90 francs ($2.50) for employees bom before January 1, 1875, 75
francs ($2.09) for employees born between 1875 and 1879, 60 francs
($1.67) for employees born between 1880 and 1884, 45 francs ($1.25)
for employees born between 1885 and 1889, and 30 francs ($0.83) for
employees born between 1890 and 1894.
(3) Funds remaining in the accounts of unmarried, widowed, or
divorced male contributors (see p. 138).
A royal decree will establish the regulations relating to the organ­
ization and functioning of the above-mentioned fund, as well as the
procedure to be followed for examining applications for and pay­
ment of allowances.
Failure on the part of the employer or his representative to comply
with the provisions of the law will be punished by imprisonment or
fines (see under wage earners’ system of insurance against old age
and death, etc.).

Miners’ Insurance System
The detailed description of this system was received too late for
inclusion here. For summary data see paster following page 98.
S o u r c e s f o r B e l g iu m

: Laws o f June 18 and July 14, 1930.

Bolivia
By S heldon T. M il l s , American Vice Consul, La Paz

There is no old-age pension or insurance system in force in Bolivia
which applies to the civil population in general. There is, however,
the law of December 7, 1926, which applies solely to bank employees.

Bank Employees’ Insurance System
The law of December 7, 1926, provides compulsory insurance
against old age for bank employees in Bolivia.
Contributions

The employees’ insurance fund is made up as follows: (1) Two
per cent of the net profits of the banks, as a minimum, and contribu­
tions by shareholders or owners; (2) 20 per cent of the sums charged
for protested notes; (3) 5 per cent of the total interest received by
the banks as penalties for overdue, attached, and protested notes ana
drafts; (4) extra contributions by the bank in special cases when
approved by the general board of directors and by the owners; (5) a
deduction of 1 per cent from the salaries of the employees; (6) fines
or deductions imposed upon employees for absence or other fault.
Benefits

The benefit of the insured amounts to 70 per cent of the last
month’s salary after 20 years’ service, 85 per cent after 25 years’
service, and the full salary after 30 years’ service.
Disability arising out oi the occupation after 10 years’ continuous
or 15 years’ noncontinuous service entitles an employee to a benefit
for 5 years of 50 per cent of his last salary plus 10 per cent for each
5 years’ additional service.
The survivors’ benefit amounts to 6 months’ salary after 5 years’
continuous service, 1 year’s salary after 10 years’ continuous service.
18 months’ salary after 15 years’ continuous service, and 3 years’
salary after 20 years’ continuous service. If the employee dies after
30 years’ continuous service, the heirs shall receive the amount he
would have received as an annuity for 5 years.
Administration

The National Department of Labor may be appealed to in certain
cases where an employee disagrees with the findings in his case by the
board having jurisdiction.
141

142

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Statistics of Operation

The following information on the operation of the law for em­
ployees of the Banco Central de Bolivia was supplied by the bank in
question:
Number of beneficiaries during operation of law_________________________
159
Amount paid in pensions, Dec. 7, 1926, to June
30, 1930______________________________________ Bs. 62,551.5c1 ($22,831.30)
3
Income of pension fund, Dec. 7, 1926, to June 30,
1930 _________________________________________ Bs. 265, 674.72 ($96,971.27)
Expenditures to June 30, 1930:
Annuities__________________________________Bs. 36,451.50 ($13,304.80)
Pensions-----------------------------------------------------Bs. 18,900.00 ($ 6,898.50)
Pensions for widows and orphans---------------- Bs. 7,200.00 ($ 2,628.00)
T ota l-----------------------------------------------------Bs. 62,551.50
Balance in fund on June 30, 1930--------------------- Bs. 203,123.22

($22,831.30)
($74,139.97)

The bank reports that there is no cost for administration, as the
fund is managed by the bank gratuitously.
'No data are available as regards the old-age pension funds of the
other two leading banks of Bolivia.
u Conversions into United States currency on basis o f boliviano equals 36.5 cents.

Brazil
By C iau de I. D aw son , American Consul General, Rio de Janeiro

There is no general old-age pension or insurance system in Brazil,
but an old-age insurance system for employees of public-utility com­
panies has been established by Federal legislation.
Up to 1931 the old-age insurance system in Brazil had covered
railway employees and port workers and had been governed by
three laws. The first of these was the legislative decree of Decem­
ber 20, 1926, extending the provisions of the decree of January 23,
1923, to others besides railway employees; and the other two decrees,
both of October 11, 1927, denned the mode in which the legislative
decree of December 20, 1926, should apply to railway and other em­
ployees. The decree of October 1, 1931, superseded all previous
legislation and extended the coverage to all employees of all types of
public utilities.

Public Utility Company Employees’ Insurance System
Coverage of System

The following classes of workers are covered: All employees and
day laborers of railways and port companies and of public-utility
companies supplying light, power, gas, telephone and telegraph
service, water, sanitary services, etc., who have rendered effective
service for more than 30 consecutive working days, whether they
are employed on the basis of monthly salaries or day wages, or are
paid by piecework; employees and officials of the pension organiza­
tions; technicians, administrative employees, etc., when employed
as part of the permanent staff of the company; and school-teachers
employed or subsidized by the companies to teach the children of
their employees.
Contributions

The contributions are as follows:
(1)
From the employees {a) an entrance contribution amounting
to one month’s wage or salary, payable in 24 monthly installments;
(b) a percentage of the wages, monthly, varying according to the
proportion that the expenditures from the fund to which they belong
form of the revenues, as follows: 3 per cent when the expenditures
are less than 50 per cent of the revenues, 4 per cent when they reach
50 per cent, 5 per cent when they reach 70 per cent, and 6 per cent
when they reach 80 per cent of the revenues; and (< the first month’s
?)
increase of wages, payable in a lump sum. The employees’ contri­
butions are deducted from their wages each month by the company.
143

144

PENSIONS A N » INSURANCE IN FOREIGN COUNTRIES

Teachers and employees of the funds hired in the future will be re­
quired to pay contributions at double the rate; present employees
are exempted from this provision.
(2) From the companies an annual contribution of V/2 per cent of
their gross income, payable in monthly installments equal to the
monthly contributions of the employees.
(3) From the public the sum produced by an increase in the ex­
isting rates charged for the products or services of the companies.
C Fines paid by the employees or the companies.
4T
(5) Gifts and legacies to the fund.
(6) Interest on accumulated funds.
(7) Wages or salaries not claimed within two years.
(8) Retirement allowances not claimed within five years after
becoming due.
(9) Discounts from pensions. (See under benefits.)
Benefits

The amount of the old-age benefit is calculated on the average
monthly wages received during the last three years’ service, and the
percentage of wages to be paid as benefits may not fall below 70 nor
exceed 100. The funds are directed to submit recommendations to
the National Council of Labor, every three years, as to what this per­
centage should be. For the present the percentage is set at 85. The
minimum benefit is set at 200 milreis ($23.92) and the maximum
benefit at 3,000 milreis ($358.80) monthly. The retirement allow­
ances over 600 milreis ($71.76) per month are subject to a discount
(on the amount by which the pension exceeds 600 milreis), as
follows:
Rate o f discount

Monthly benefit:
(percent)
601-700 milreis ($71.88-$83.72)___________________________ 3
701-800 milreis ($83.84-$95.68)___________________________ 5
801-900 milreis ($95.80-$107.64)_________________________ 8
901-1,000 milreis ($107.76-$119.60)_______________________ 10
Over 1,000 milreis ($119.60)______________________________ 15

To obtain the full annual benefit for ordinary retirement the em­
ployee must have had at least 30 years’ service, have attained the
age of 50 years, and have made 5 years’ contributions. In case of
especially hazardous or unhealthful industries, which lower the vital­
ity of the worker, the required period of service may be reduced to
25 years and the age to 45 years. An employee who is over 50 years
old and has had more than 30 years’ service, or who is over 60 and
has had more than 20 years’ service, may retire, receiving one-thir­
tieth of the average annual wage for each year of service, subject
to a maximum of 85 per cent of wages. Retirement is compulsory
at 65, provided the employee has served at least 10 years, the benefit
in this case also being calculated on the basis of one-thirtieth of the
full benefit for each year of service. The company may also retire,
compulsorily, an employee who has attained the age of 55 but whose
period of service is insufficient for ordinary retirement and who is
shown by medical examination to be incapable of performing his
normal duties; in such cases the company must pay both its own

BRAZIL

145

and the employee’s contributions for the remaining period necessary
to complete the years of service required for ordinary retirement,
and the retirement allowance shall correspond to the period of serv­
ice rendered plus a life income calculated on the amount of the
anticipated contributions with interest at 6 per cent. A benefit is
also paid, on medical certificate, in case of total disability after five
years’ service, amounting to one-thirtieth of the average pay for the
last three years for each year of service; the minimum monthly
benefit is fixed at 200 milreis ($28.92).
An interesting provision of the law is that the maximum benefit
shall be payable except when this is impossible because of “ reasons
of actuarial, economic, and political order.”
Survivors' benefits.—In case of the death of an insured having
more than five years’ service, the following are eligible for benefit
(in the order indicated) provided they were totally dependent on
the deceased: (1) The surviving wife, invalid husband, and children
(legitimate, legitimated, or legally adopted); (2) invalid father or
widowed mother; and (3) single sisters. On the death of a widow
or widower, their share reverts, in equal parts, to the minor children
and unmarried daughters.
Survivors’ benefits may not exceed 50 per cent of the benefit to
which the insured was entitled. If the deceased had less than five
years’ service, the heirs may receive a lump-sum payment calculated
in accordance with the contributions made.
Right to the benefit is lost (1) by the widow, in case of remar­
riage; (2) by the sons when they become 18 years old unless incapaci­
tated by physical defects; (3) by the daughters and sisters when they
marry; (4) by the beneficiary himself if he becames a lawbreaker.
Medical, etc., benefits.—The funds are directed to maintain medi­
cal, hospital, and pharmaceutical services but are limited, in their
expenditures for this purpose, to 8 per cent of the total annual
revenue.
Administration

Each benefit fund is to be managed by an administrative council
composed of four or six unpaid members, serving for three years
each, half of the members being designated by the company, half
elected by the insured employees, and the chairman being chosen by
the members of the council. In the case of companies having less
than 5,000 employees the council is to be composed of four members,
and in case of those having 5,000 or more, six members. These new
councils take office January 2, 1932.
In case the council denies a claim, appeal may be taken to the
National Department of Labor.
Each fund is required to submit to the National Council of Labor
a budget showing the'estimated details of its operation and financial
condition. Three per cent of the contributions are to be paid into
the National Treasury, to be used for the expenses of the National
Council of Labor.
Provision is made by law that the moneys accumulated under the
old-age insurance system may, under certain safeguards, be used for
mortgage loans for the construction of houses for the members of
the benefit funds (caiam).

146

PEN SIO N S AND IN SU RA N CE IN FOREIGN CO U N TRIES

Statistics of Operation

There has, of course, been no experience under the decree of Oc­
tober 1, 1931. The former system covers 130,163 railway employees
and 10,272 port workers, and the following are receiving benefits:
Railway employees, 10,469 (6,702 retired and 3,767 survivors); port
workers, 328 (228 retired and 100 survivors). The benefits paid, cost
of administration, and revenue are shown in the following table:
T a b le

1 1 .—Total "benefits paid, revenues and expenses, and cost o f administra­
tion of benefit funds in Brazil, in specified periods
[Conversions into United States currency on basis of milreis=11.96 cents]
Item

Retirement
benefits

Revenues of
funds

Survivors*
benefits

Expenses of
funds

Cost Of
administration

Brazilian currency
Railway employees:

Milreis

Milreis

Milreis

Milreis

1929................................. 21,217,347.964 2,817,971.142 62,914,437.828 32,547,954.114
1923-1929........................ 60,100,548.768 7,248,923.534 233,133,627.134 101,797,532.657

Port workers:

1929................................
1928-1929--------------------

632,561.680
829,155.839

59,161.862
75,718.829

5,890,209.608
11,156,420.031

1,355,623.554
2,063,515.578

Milreis

2,449,290.819
6,933,840.635
169,803.300
346,48a 150

United States currency
Railway employees:

1929................................. $2,537,594.82
1923-1929........................ 7,188,025.63

$337,029.35
866,971.25

$7,524,566.76
27,882,781.81

$3,892,735.31
12,174,984.91

$292,935.18
829,287.34

75,654.38
99,167.04

7,075.76
9,055.97

704,469.07
1,334,307.84

162,132.58
246,796.46

20,308.47
41,439.03

Port workers:

1929................................
1928-1929_____________

S o u r c e s f o r B r a z il : Decreto n. 5109 de 20 dezembro de 1926; Decreto n. 17940 de 11
de outubro de 1927; Decreto n. 17941 de 11 de outubro de 1927— Rio de Janeiro, 1928;
Conselho Nacional do Trabalho, Decreto n. 17940 de 11 de outubro de 1927, Regulamento
das Caixas de Aposentadoria et Pensoes dos Portuarios, Rio de Janeiro, 1927; Conselho
Nacional do Trabalho, Decreto n. 17941 de 11 de outubro de 1927, Regulamento das
Caixas de Aposentadoria e Pensoes dos Ferrorviarios, Rio de Janeiro. 1927.

Bulgaria1
5
The social insurance system of Bulgaria (providing for insurance
for accidents, sickness, maternity, invalidity, and old age) was es­
tablished by Decree No. 7, of March 6, 1924. as amended by Decree
No. 4, of January 17,1929, Decree No. 13, oi July 10, 1929, and Act
of April 4, 1931.
Whereas the social insurance systems in the principal European
countries originated as a result of the strong organization of labor,
with only a partial governmental control, the system in Bulgaria
was created directly by the Government, the part played by the
workers’ and employers’ representatives being simply consultative.
The system was apparently adopted in this manner on account of
the unpreparedness of workers and employers alike for such a task.
Originally created under the name of workers’ insurance,” the
system gradually developed and spread throughout the country. In
1924 its scope and methods were enlarged, according to the special
law of March 6 of the same year, the name being changed to “ social
insurance.” Further important amendments in the law were made
on January 17, 1929, and on April 4,1931.
Although the social insurance system is in operation and contribu­
tions are being paid into the fund, benefits are not yet being paid for
old age or invalidity.
Wage Earners’ and Salaried Employees* Insurance System
Coverage of System

The law is an inclusive one, covering both wage earners and
salaried employees—“ all persons hired for work, irrespective of
their sex, age, race, the nature of work, and the manner of payment.”
It provides for the compulsory insurance of all such persons be­
tween 15 and 60 years of age, except those already covered by other
pension systems, and those temporarily employed.
The employer is made responsible for seeing that his employees
are properly insured.
An insured who, after having paid at least 156 contributions,
changes his occupation to one not compulsorily covered by the law,
may continue his insurance by keeping up the payment of the weekly
contributions (including those formerly paid by his employer).
Voluntary insurance under the act is permitted to independent
artisans, merchants, farmers, and persons in the liberal professions,
whose annual income does not exceed 50,000 leva ($360) ;1 also to
6
State and municipal employees, if their retirement system provides
benefits less liberal than those under the social insurance law.
u Data furnished by Thomas F. Sherman, American Consul, Sofia.
“ Conversions into united States currency on basis o f lev equals 0.72 cent.

147

148

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Foreign workers residing in Bulgaria may insure under the law,
if the country of which they are nationals provides equal privileges
for Bulgarian citizens.
In the calculation of the right to benefit, time spent in military
service, in compulsory labor, or in illness, is credited at the rate of
40 weeks to 1 year.
Contributions

For purposes of the law the workers are divided into five classes
according to their average daily wages, as follows :
Average daily wage

Class 1____________________________________ 15 leva (10.8 cents)
Class 2_____________________________16-30 leva (11.5-21.6 cents)
Class 3_____________________________31-45 leva (22.3-32.4 cents)
Class 4_____________________________ 46-60 leva (33.1-43.2 cents)
Class 5------------------------------------- Over 60 leva (over 43.2 cents)

Contributions are made weekly, one-third being paid by the insured,
one-third by the employer, and the remaining third bv the State.
The total so contributed is, by wage classes, as follows:
Total weekly contribution

Class 1___________________________________ 4.50 leva
Class 2----------------------------------------------------- 6.00 leva
Class 3___________________________________ 7.50 leva
Class 4___________________________________ 9.00 leva
Class 5___________________________________ 12.00 leva

(3.3 cents)
(4.3 cents)
(5.4 cents)
(6.5 cents)
(8.6 cents)

An exception to the foregoing is made by a 1931 amendment to the
law, providing that building contractors working on public build­
ings shall contribute at the rate of 3 per cent of the wages paid to
their employees, the amount of the contribution being deducted from
the amount due the contractor.
In the case of persons voluntarily insured, the total amount of the
weekly contribution is the same as for those compulsorily insured,
but two-thirds are paid by the insured himself and one-third by the
State.
For apprentices, the employer is responsible for the payment not
only of his own contribution but also that of the apprentice, the
weekly amount being 3 leva (2.2 cents).
In the case of State and municipal employees covered by the law,
the contribution is at the rate of 3 per cent of the salary, one-halt
paid by the employer and one-half by the worker.
The contributions of workers and employers must be made for the
whole of any week in which the worker has employment.
Payment of contributions is evidenced by the entry of insurance
stamps in a booklet which must be procured for the purpose from
the labor inspectorates. The value of the stamps is forwarded to the
National Bank of Bulgaria for the Social Insurance Fund.
Other income of the fund consists of the capital left by dissolved
mutual-benefit associations of workers, the fines imposed for viola­
tions of orders of the labor inspectorate and of other laws, and all
donations and bequests.
Benefits

The law provides for the payment of—
(1)
An invalidity annuity in the case of an insured person, re­
gardless of age, when his working capacity has been permanently

149

BULGARIA

reduced to less than half of normal, provided this did not occur as
the result of an accident and provided he has paid contributions for
156 weeks or more. A person who has paid 156 contributions and
has been ill uninterruptedly for 9 months without being permanently
disabled may be granted the invalidity benefit for the duration of
his illness.
(2)
An old-age annuity in case of an insured person who has
reached the age of 60 years, provided he has paid 1,040 weekly
contributions.
The right to invalidity benefit lapses if the insured fails to make
at least 24 weeks’ contributions in any subsequent year, but is re­
gained when the number of contributions again amounts to 156.
The invalidity benefit becomes payable on the day the application
therefor is received by the insurance fund; the old-age benefit, on
the first day of the month following the sixtieth birthday.
The annuity may be granted to persons between 50 and 60 years
after having made 26 contributions during the past year and a total
of 260 contributions; and to those between 40 and 50 years after
having made 520 contributions (but the remaining required con­
tributions up to 1,040 will be deducted from the benefit).
Persons who have reached 60 years of age at the time the law
goes into force, may be granted the basic old-age pension of the
lowest class, after making 156 contributions, only if they have no
income at all and if their working capacity is reduced by at least
one-third.
Amount of benefit.—The basic invalidity benefit varies in amount
according to the average daily wage class of the insured, as follows:
Annual benefit

Class
Class
Class
Class
Class

1_____________________________________
2_____________________________________
3_____________________________________
4_____________________________________
5____________________ - _______________

1,500
2,400
3,600
4,800
6,000

leva
leva
leva
leva
leva

($10.80)
($17.28)
($25.92)
($34. 56)
($43.20)

This basic benefit is increased by an amount equal to 2 leva (1.4
cents) for each week of contributions in excess ox the minimum of
156 weeks.
The annuity for old age consists of the same basic amount as for
invalidity, increased by 1 lev (0.72 cent) for each week of contribu­
tions in excess of 156.
The contributions of an insured person who dies before beginning
to draw benefit are refunded to his minor children or his wife, or to
his parents if their annual income does not exceed 6,000 leva ($43.20).
No old-age benefits have as yet been paid.
Administration

The administration of the whole social insurance system was
originally intrusted to the Ministry of Commerce, Industry, and
Labor, acting through the Bureau of Social Insurance, specially
created in the labor section of the ministry. By a 1931 amendment
this bureau will be absorbed by a Directorate of Labor and Social
Insurance, which will also include the whole labor section of the
ministry, thus concentrating all labor matters in one body.

150

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

The law created also a Social Pensions Commission which is
charged with the special duty of granting, refusing, revising, or
stopping the pensions granted under the law. This commission is
composed of the chief of the labor section (acting as president),
the chief and accountant of the Bureau of Social Insurance, the
inspecting physician of the labor section, two physicians of the
High Medical Council, two representatives each of employers and
workers, and a judge of the appellate court. Appeal may be taken
from the decisions of the commission to the High Administrative
Court, through the Minister of Commerce, Industry, and Labor,
within one month after the commission’s decision is rendered.
The High Council of Labor and Social Insurance, created by the
law on hygiene and security of labor, is directed to act in an advisory
capacity as regards the application of the social insurance law.
The social insurance law is enforced locally by the labor inspec­
torates, which are under the control of the central administration.
Local authorities are required to cooperate with these inspectorates
and eventually must create a special service for this purpose.
The accounts of the various branches of the social insurance are
kept separately by the Bureau of Social Insurance and are audited
each year by a commission composed of one representative each of
the Ministry of Commerce, Industry, and Labor, the Ministry of
Finance, the State Audit Office, the National Bank of Bulgaria, the
chambers of commerce, and the workers.
Statistics of Operation

The total number of persons covered by the social insurance system
of Bulgaria is not definitely established.
According to the census of December 31, 1926, the total number
of persons who have declared themselves as workers (employed or
unemployed) was 306,603, inclusive of 29,000 workers in the so-called
model farming estates but not including any other farm laborers.
The total number of workers engaged in work, however (men,
women, insured and uninsured), as established by the organizations
of the ministry in 1927, was 195,378, of whom 12,218 persons were
without the required insurance stamp booklet. The number of stamp
books issued during the same year was 217,760, of which 1,101 were
for voluntarily insured persons. The excess of insurance booklets
over the actual number of workers does not indicate that all workers
are insured, according to a report of the chief of the labor section.
On the contrary, a considerable number of workers in agricultural
establishments, mines, quarries, construction industry and liberal
professions are not insured. The excess of booklets over the number
of workers recorded is therefore explained in the following way:
(1) A number of workers engage in work for a short time, become
insured, and after leaving their work are lost; (2) several booklets
may have been issued to the same person, particularly in cases
where a worker has changed from one to another line of production,
moved from one district inspectorate to another, etc.; (3) some in­
sured workers who are unemployed nevertheless continue to keep
their booklets in order although not engaged in work at the time.

151

BULGARIA

On the basis of these facts it is stated that the number of irregu­
larly insured is about 50,000 and that the total number of regularly
insured persons is between 160,000 and 180,000.
The development of the insurance system may be seen from the
number of insurance booklets issued from 1919 to 1927, as follows:
Number of
stamp books

191
192
192
192
192

9
0
1
2
3

34,720
62, 364
97,564
112,242
125,680

Number of
stamp books

192
192
192
192

4
5
6
7

167,220
.____________ 241,143
221,372
217,760

Since the old-age and invalidity insurance is an integral part of the
general social insurance scheme, it is difficult to segregate the data
for this one phase of insurance. The reports of the social insurance
fund show, however, that during the fiscal year 1927-28 the contri­
butions for this type of insurance amounted to 27,065,071 leva
($194,869). There were no disbursements for either invalidity or
old-age annuities. The following is a summary of the account for
this type of insurance:
Receipts!
Balance, Apr. 1, 1927___________
Contributions_________________
Interest_:_____________________

83,165,839 leva ($598,794)
27,065,071 leva ($194,869)
4,538,955 leva ( $32,680)

Total_________________________ 114,769,865 leva ($826,343)
Expenditures: Administrative ex­
penses____________________________
3,034,000 leva ( $21,845)
Balance in fund Mar. 31, 1928______ 111,735,865 leva ($804,498)

S ources for B ulgaria . Decree of Mar. 6, 1924, Decree of Jan. 17, 1929. Act of Apr. 4,
1931; Social Insurance Regulations; and 1930 Yearbook of Bulgarian Ministry o f Com­
merce, Industry, and Labor

Canada
B y Ir v in g N. L i n n e l l , American Consul General, Ottawa

General Pension System
In 1924 a special committee was appointed by the Canadian
Parliament to study the old-age security problem and to make
recommendations. In its report this committee unanimously pro­
posed a system whereby one-half of the pension payable would be
borne by the Federal Government and the other half by the adopting
Province, the administrative expenses being borne by the provinciju
governments. After an interval of several years an act embodying
the recommendations of the committee was passed and became a law
on March 27,1927.
The law makes the adoption of the system optional with the
Provinces. All the Provinces except Quebec and New Brunswick
have now accepted the law.
Coverage of System

The act as adopted covers all British subjects in Canada.
Contributions

The system is a noncontributory one. The cost of the pensions is
borne equally by the Provinces and the Federal Government.1
7
Benefits

The pension becomes payable at the age of 70 years, provided the
applicant (a) is a British subject, or if a widow, who is not a
British subject, was such before her marriage; (&) has attained the
age of 70 years; (< has resided in Canada for the 20 years immedi­
?)
ately preceding the date of application; (d) has resided in the
Province in which the application for pension is made for the five
years immediately preceding the said date.
Indians, as defined by the so-called Indian act, are debarred from
pension, as are also persons having an income of $365 or more a year,
and persons who have assigned or transferred their property for
the purpose of qualifying for the pension.
The maximum pension payable amounts to $240 per annum, which
is subject to reduction by the amount of the income of the pensioner
in excess of $125 a year.
It is provided that if a pensioner, after the grant of a pension,
transfers his residence to some place outside, of Canada, his pension
17 The Dominion Government is pledged to the raising of the Federal Government’ s share
of the cost from 50 to 100 per cent. No legislation has yet been adopted to this end, but
the recent budget submitted by the Premier made allowance for the payment o f 75 per
cent o f the cost by the Dominion Government.

152

153

CANADA

ceases until he reestablishes his residence in Canada. The pension
is not subject to alienation or transfer by the pensioner, nor to
seizure in satisfaction of any claim against him.
Administration

The administration of the act and regulations thereunder are
vested in the Minister of Labor. The system in the Provinces is
administered by provincial officials. The Dominion Department of
Labor pays quarterly to each Province one-half of the total amount
of the pensions paid by the provincial pension authorities during
the preceding three months.
Statistics of Operation

Table 12 shows the number of pensioners on the rolls March 31,
1931, and the amount spent in pensions in specified periods, for the
Northwest Territories and the five Provinces in which the system
was in operation on that date. The Provinces of Nova Scotia and
Prince Edward Island have recently passed acts authorizing the
adoption of the pension system, but nave as yet had no experience
under the system.
T able 1 2 . —Financial summary of old-age pensions in Canada as of March

SI, 1931

Date act
became
effective

Province

Alberta.....................................
British Columbia___________
Manitoba...................... ..........
Ontario.....................................
Saskatchewan...........................
Northwest Territories________

Aug.
Sept.
Sept.
Nov.
May
Jan.

1,1929
1,1927
1,1928
1,1929
1,1928
25,1929

Total...............................

Amount paid in pensions—
Number Average
of pen­ monthly
First
sioners pension quarter of Year end­ Since adop­
ing Mar. tion of act1
19311
31,19311
3,287
5,557
5,834
37,334
5,913
5

$19.53
19.03
19.25
19.15
19.37
19.83

$683,641
1,213,927
1,340,551
7,068,422
1,252,189
1,563

$951,061
3,263,564
2,989,847
9,324,111
2,572,132
2; 120

2,786,443 11,560,293

57,930

$185,459
324,749
345,334
1,578,841
351,592
468

19,102,835

i One-third paid by Dominion Government.

Table 13 shows the relative proportion of pensioners in the popula­
tion in each Province, as of March 31,1931.
T a b le 1 3 . — Relative proportion of pensioners in population of Canada as of

March SI, 19S1

Province

Alberta__________ . . . . . . . . . __ _______________ ____
British Columbia_____________________________ __
Manitoba_______ ___ . . . . . . ______ „_________ . . . ___
Ontario________________________________________
Saskatchewan________ . . . ______ ______________ __
Northwest Territories__________________ __________

Total num­
ber of
pensioners

3,287
5,557
5,834
37,334
5,913
5

Per cent pensioners
form of—

Per cent all
persons
aged over
70 form of
Total
Population total popu­
population aged over 70 lation
0.50
.93
.87
1.13
.67
.05

42.58
50.53
51.49
32.32
57.56
4.46

1.17
1.84
1.68
3.48
1.17
1.17

154

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

The conjugal status of the old-age pensioners is shown in Table 14:
T able 1 4 .— Marital status of old-age pensioners in Canada as o f March 81,1981
Married

Single

Widowed

Living apart

Province
Males Females Males Females Males Females Males

Females

Alberta..................................
British Columbia..................
Manitoba..............................
Ontario.................................
Saskatchewan........................
Northwest Territories___ __

950
1,300
1,813
8,723
1,948
3

425
652
1,021
4,739
997

249
819
289
2,487
273

53
175
126
2,659
60

648
896
891
5,948
1,028
1

881
1,427
1,657
12,556
1,554
1

62
208
27
124
36

19
80
10
98
17

Total............................

14,737

7,834

4,117

3,073

9,412

18,076

457

224

The countries of origin of the pensioners are given in Table 15:
T able 1 5 . — Countries of origin of persons receiving old-age pensions in Canada,

March 31,1931

Country of origin

Canada........______________
England__________________
Scotland___________________
Ireland _ ___________________
United States_______________
Austria____________________
Poland_____________________
Germany___________________
Russia....._____ ___________
Iceland____________________
Sweden____________________
Norway __ _ ___________
France_____ _______________
Hungary __________________
Italy.........................................
Rumania- _________________
Newfoundland______________
Wales
__________________
Belgium___________________
Denmark___________________
Finland____________________
Netherlands..............................
British West Indies__________
Czechoslovakia______________
Switzerland_________________
Australia___________________
India______________________
Channel Islands_____________
South Africa________________
Yugoslavia_________________
Turkey____ ___ ____________
Syria______________________
Greece_____________________
British East Indies__________
Isle of Man_____ ___________
Gibraltar____. . . ____________
Luxemburg______ ______ ____
Bulgaria____ ______________
Malta........................................
New Zealand_______________
Bahamas_________________ . . .
British Guiana______________
Isle of St. Helena____________
Japan_____________ ________
Labrador...................................

North­
British
Alberta Columbia Manitoba Ontario Saskatch­ west Ter­
ewan
ritories
1,532
525
194
86
326
102
104
78
55
8
75
89
17
5
5
15
4
10
6
21
5
4
1
4
7
3
1

2

2,497
1,545
596
248
242
15
10
59
2
10
82
55
17
2
40
2
26
1
13
19
18
11
5
4
2
8
6
1
3

2,598
838
351
169
100
374
464
46
170
391
87
35
59
12
4
26
2
9
42
11
3
11
5
5
5
2
2
1
1

2
1
1
1
2
1

2

1

1
I

2
1
2
1

27,412
5,171
1,350
1,545
680
46
81
383
133
54
24
35
5
102
21
99
51
6
14
16
6
16
6
10
9
9
15
7
6
4
2
4
1
3
1
2
1

1
1

1
1
1

2,505
685
313
104
307
595
299
132
276
54
133
160
35
133
3
74
4
17
14
16
16
4
1
7
2

4

1

•11
...............
i
I

10
1
2
1
2 ...............
2 .............
1 ...........
1 1..........
i

1

Total

3(y 548
8,764
2,804
2,152
1,655
1,132
958
699
636
463
431
363
163
157
154
138
135
88
81
81
58
36
28
26
26
22
18
17
12
10
9
8
6
5
5
4
4
3
3
3
2
2
2
2
2

155

CANADA
T

able

1 5 . — Countries

of origin o f persons receiving old-age pensions in Canada,
March 81,1981—Continued

Country of origin
Latvia______ ____________
Lithuania_____________ __ __
Persia____ _______ __________
Peru___ ___________________
Algeria_____________________
Arabia u u
......
Chile...................................: __
China________ _____________
Madeira_____ . . . ___________
Samoa Islands__________ ____
Spain____ ____________ _____
Total_____________ . ___

NorthBritish
Alberta Columbia Manitoba Ontario Saskatch­ west Ter­
ewan
ritories
2
2
2
1

3,287

1

1
1

5,557

2
2
2
2

2

1

Total

1
1
5,834

37,334

5,913

5

57,930

Canadian Government Railway Employees’ Insurance System
Coverage of System

Under the present law and regulations, employees of the Canadian
National Railways, the railways owned by the Canadian Government,
are entitled to pensions on retirement. Under previous legislation
(1907) a provident fund was established for the employees of the
intercolonial and Prince Edward Island Railway and in the same
year an act of Parliament authorized the directors of the Grand
Trunk Railway to provide for the payment of pensions to employees
of that carrier. In 1929, in order to place all employees of the Cana­
dian National Railways system on the same basis as regards pensions,
an act was passed amending the Grand Trunk act of 1906-7 with
respect to pensions, making it the Canadian National Railways pen­
sion act, and authorizing the company to establish a “ Canadian
National Railways pension fund ” for the payment of allowances to
employees after leaving the service. The act also provides that all
rules and regulations for this fund may be made applicable to officers
and employees of any company or corporation which is or may be
owned or controlled by the Dominion of Canada, upon the request
of the directors of such company. Railway or undertaking in this
clause includes “ the lines of railway undertakings, steamship, tele­
graphs, properties and works which any such company or corporation
has authority to construct, maintain or operate.”
Contributions

Under the plan the employees contribute 3 per cent of their wages
for the first month and V/2 per cent thereafter.
The Dominion Government contributes an equal amount, up to
$100,000 per year.
83360°—32------11

156

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Benefits

Annuities are payable at the rate of 1 per cent for each year of
service, calculated on the highest average wage received during any
10 consecutive years of service. Such pensions are granted to—
1. Employees retiring at 65 years of age or over who have had 15
or more years of service.
2. Employees between 60 and 65 years of age, having had 20 or
more years of service, who are permanently disabled physically or
mentally.
3. Employees who, after 10 or more years of service, are incapaci­
tated for service by injuries received in course of employment, pen­
sion to continue only while incapacity lasts.
4. Employees 50 years of age and upwards, with 15 years of service,
who are discharged for reasons other than misconduct.
Except in cases of joint employment, the minimum rate of benefit
is $25 per month.
While, as explained in the rules and regulations of the system, “ it
is the intention that all employees shall be retired from the pompany’s
service on reaching the age of 65 years,” an employee may be retained
in service after that age, provided the head of the department in
which he is employed recommends it and the pension committee
agrees.
Administration

The plan is administered by a pension committee consisting of nine
members, seven of whom are officers of the Canadian National Kail­
way Co. (i. e., those in charge, respectively, of pensions, legal affairs,
maintenance and operation, traffic, finance and purchases and stores,
and the chief medical officer), and the other two members are elected
by the railroad labor organizations.
This committee makes and enforces the regulations for the opera­
tion of the plan, determines the eligibility of applicants, fixes the
amount of the benefits, and prescribes the conditions under which
benefits are granted.

Voluntary Insurance—Government Annuities
Chapter 7 of the Revised Statutes of Canada, 1927, based upon
an act of 1908 and amendments thereto, authorizes the issuing of
Government annuities for old age. The cost of administration is
borne by the Dominion Government and no charge is made on this
account against the annuitant. The annuities purchasable on the
life of one person or two persons jointly are from $10 to $5,000 per
annum, payable in quarterly or monthly installments for life or for
a specified number of years provided the annuitant lives that long.
Annuities may be purchased by persons for themselves, by employ­
ers for employees, or associations for members thereof. They are of
two classes, deferred and immediate, the first of which may be
purchased by the payment of annual, semiannual, quarterly, monthly,
or weekly premium deposits, or by the payment of a lump sum,
while the latter may be purchased only by the payment of a lump

CANADA

157

sum, the annuity to commence three months or one month from the
date of the payment.
The 1929-30 report of the Government Annuities Branch of the
Canadian Department of Labor states that the interest of the Ca­
nadian people in this form of insurance appears to be steadily in­
creasing. On March 31, 1930, there were 10,183 contracts in force,
and the value of annuities purchased was $20,720,895. The amount ox
premium received during the year ending on that date was $3,156,475.
S ources for Canada : Dominion old-age pensions act (ch. 156, R. S. C., 1927); Old-age
pensions regulations, as of Dec. 31, 1928; Department of Labor, Report of the adminis­
tration of old-age pensions in Canada for fiscal year ending Mar. 31, 1931; Canadian
National Railways, pension department, Rules and regulations effective Aug. 1, 1929;
Government old-age annuities act (ch. 7, R. S. C., 1927) ; Department of Labor, Govern­
ment Annuities Branch, Twenty-second report, for fiscal year ending Mar. 31, 1930.

Chile
By Thom as D. Bowman, American Consul General, Santiago

The old-age pension and insurance law of Chile is divided into two
plans, one making provision for laborers or manual workers and
the other for so-called “ private employees,” who are defined as “ all
persons, irrespective of age or sex, who are engaged in work which
is more of an intellectual than physical nature.
The wage earners’ system provides insurance against both old-age
and ill health, that of the salaried employees old-age insurance only.

Wage Earners* Insurance System
Coverage of System

Chilean Law No. 4054 makes old-age and health insurance com­
pulsory upon all individuals, irrespective of sex, “ under 75 years
of age who ordinarily have no other income or means of subsistence
other than wages or salary paid by an employer,” provided that such
income does not exceed 8,000 pesos ($974)1 per annum. Apprentices
8
and artisans, craftsmen, small merchants and peddlers, who work
independently, are also included in the provisions of this law. In
practical application, therefore, every employee and independent
laborer or small merchant coming under the act is required to insure.
Exceptions are provided for on behalf of members of approved
mutual-aid societies which provide benefits equal to those under the
law. Although this law makes no exceptions in favor of “ intellec­
tual ” workers, another act providing for this class (discussed on
p. 160) provides such exception.
Insured persons whose income increases so as to exceed the limit
of 8,000 pesos ($974) may voluntarily continue their insurance under
this law until their income exceeds 16,000 pesos ($1,947). In addi­
tion, any individual not over 45 years of age, who is not required
to carry this insurance but whose income is not over 8,000 pesos
per annum, may voluntarily subscribe to the provisions of this law
provided he or she can pass a required medical examination.
Contributions

The contributions are payable weekly, by affixing revenue stamps to
a book specially provided, in the following proportions: 3 per cent
of the weekly wage by the employer and 2 per cent by the employee.
For each such contribution the Government obligates itself to pay an
additional 1 per cent. The employer is held responsible for the
proper payment of these contributions and it is customary for him to
1 Conversions into United States currency on basis of peso equals 12.17 cents.
8

158

CHILE

159

affix the stamps for both his share and that of the employee and to
deduct the employee’s 2 per cent from the latter’s wages.
Independent workers must pay Sy2 per cent of the average weekly
income and the Government makes an equal contribution.
The contribution of apprentices and persons employed on proba­
tion is calculated on the lowest wage paid for the kind of work for
which employed, but in this case the employer must also pay the
insured’s portion of the contribution.
Additional sources of income provided for the insurance fund are:
Fines assessed for violation of the law itself and for certain other
offenses; interest upon the capital funds accumulated; legacies and
donations that may be received; and certain special taxes.
Benefits

An insured is entitled to a retirement pension after he reaches the
age of 55 years, but he may, by declaration at the time of registration,
defer the pension until he reaches the age of 60 or 65 years.
There are two retirement pension options. One provides for ordi­
nary retirement; the other offers a so-called wreserved” provision,
paying a larger pension. These pensions are worked out on an actu­
arial basis, taking into consideration the age, length of insurance,
amount of contributions paid, etc.
If the insured dies before reaching the retirement age and is not
receiving an invalidity pension, his contributions are paid to his
heirs, unless he has chosen the “ reserved ” option mentioned above.
Any insured who is incapacitated by accident or chronic illness,
not attributable to his own negligence or fault and not indemnified
under the liability laws, is entitled to an invalidity pension as fol­
lows: Full rate of pay if he has been insured 10 years or more; 75
per cent if he has been insured for 5 years or more; and 50 per cent
if he has been insured less than 5 years.
The insured under this law are entitled to free medical service
and medicines, including hospitalization up to 26 weeks. If the in­
sured has a family living with and dependent upon him (or her)
for support he is entitled to receive, during the period of illness,
the following subsidy in cash: The full amount of his salary, wages,
or income oi the week prior to the illness for the first week; one-hali
of this amount for the second week, and one-fourth for succeeding
weeks. Government employees, however, are paid only 25 per cent
of their wages from the beginning. If the insured has no dependents
he is entitled to receive only one-half of the respective amounts as
stated above.
A pregnant woman is entitled to receive one-half her wages for
two weeks prior to and two weeks subsequent to the birth of the child,
and 25 per cent thereafter until the child is weaned, but in no case to
exceed eight months.
The sum of 300 pesos ($36.51) is paid for funeral expenses of any
insured who dies.
Administration

There is a central administrative organization called the Fund
for Compulsory Insurance (Caja de Seguros Obligatorios), and va­

160

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

rious local boards. The central organization is under Govern­
ment control; the local boards are composed of 9 persons—3 chosen
by the insured, 3 by employers, and 3 appointed by the President of
the Republic.
Statistics of Operation

According to figures furnished by the general administration, the
total number of insured on May 8, 1931, was 1,203,500. There are
now 443 old-age pensioners who have been paid, up to the present
time, a total of 88,667 pesos ($10,791). The total number of in­
dividuals receiving invalidity pensions is 220, and the average
amount of these pensions is 100.79 pesos ($12.27) pier person per
month. A total of 79,318,143.26 pesos ($9,653,018) has been ex­
pended since June 1, 1928, tor sick benefits.
The following table shows the receipts and expenditures of the
fund in 1929 and 1930.
T a b l e 1 6 . —Receipts

and expenditures of Chilean wage earners' old-age insur­
ance fund, 1929 and 1980

[Conversions into United States currency on basis of peso=12.17 cents]
1929
Item

Chilean cur­
rency

1930
United
States
currency

Chilean cur­
rency

United
States
currency

Gross receipts......................... ..........................

Pesos
Pesos
96,271,958.08 $11,716,297 371,230,227.53

Expenditures:
Administration............... ...........................
Pensions_______ -_____________________
Health benefits...........................................

6,334,817.51
51,696.88
33,947,244.52

770,947
6,292
4,131,380

7,548,475.86
76,545.76
32,906,002.34

Total______________________________

40,333,758.92

4,908,618

40,531,023.96

4,932,626

Balance_____ . . . . . . . . . . ___________________

55,938,199.16

6,807,679 330,699,203.57

40,246,093

$45,178,719
918,650
9,316
4,004,660

Salaried Employees’ Insurance System
Coverage of System

The law of April 14, 1925, provides compulsory old-age insurance
for “ all persons, irrespective of age or sex, who are engaged in work
which is more of an intellectual than physical nature.5 This covers
’
practically all nonmanual workers, such as clerks, bookkeepers, and
similar office workers, as well as technical men, and applies to salaried
employees who are 18 years of age and not over 50 years of age;
and who earn 3,000 pesos ($365) per annum or more.
Contributions

The system of contributions is simple. The employer withholds
from the salary of the employee the latter’s share of the contribu­
tion, adds to it his own proportion, and accounts therefor to the
appropriate authorities.

CHILE

161

The contribution required of the employer is 5 per cent of the em­
ployee’s monthly salary.
The employee, in addition to 5 per cent of his monthly salary, must
pay one-half of his first month’s salary, the total amount of the first
month’s increase in salary in case of promotion, and 25 per cent of
any bonus that may be granted. In addition, every employee within
the age limits of 18 to 50 years, whose salary is 4,800 pesos ($584)
or more must carry life insurance to the amount of 5,000 pesos
($609).
The Government makes no contribution.
Benefits

Upon attaining the age of 50 years, or after 30 years of service,
the insured are entitled to recover the amount of the contribu­
tions with interest at 5 per cent, worked out on an actuarial basis.
Another provision of the law is that whereby an employee may
borrow up to 50 per cent of the amount to his credit for certain pur­
poses, such as for building a house. In such cases the money must
be secured by mortgage and must be repaid. By a recent special de­
cree, designed as an emergency measure to relieve unemployment,
and valid only for one year, an employee may, if he is unemployed,
borrow up to the full amount of the contribution. This includes the
5 per cent paid by the employer which is credited to the employee’s
account.
In case of death all or any part of the employee’s unconsumed
balance due him goes to his heirs.
There is no health benefit under this system, the benefit being
confined to old-age pension.
Administration

The contributions are paid into the Savings Bank (Gaja de
Ahorros), a Government institution which guarantees the interest
thereon. But the administration and enforcement of the law is
intrusted to a special Government commission known as the Welfare
Board for Private Employees.
Statistics of Operation

According to information furnished by the administrative board
under date of April 22, 1931, a total of 80,220 persons had been in­
sured under this law on October 31, 1930. No payments of benefits
are reported, as the minimum period of five years has barely elapsed.
The administrative expenses for the 6-month period, May 1 to
October 31, 1930, were stated to have been 1,203,747.98 pesos
($145,496).
S o u r c e s f o b C h i l e : Ley de Seguro Obligatorio de Enfermedad e Invalidez (No. 4054,
Jan. 22, 1926) ; C a ja d e Seguro Obligatorio, Quinta Memoria, correspondiente al afio
1929; and Acti6n Social, November and December, 1930, and January, 1931.

Cuba
By W

il l ia m

B. M u r r a y , American Vice Consul, Havana

There is no general old-age pension or insurance system in Cuba.
Special provision of this character, however, is made by legislation
for two classes of employees in private industry, namely, railway
employees and maritime employees.
A bill has been introduced in the Cuban Congress which, if sanc­
tioned, will oblige all industries in Cuba employing more than 200
workmen to have a retirement fund. The fund would be supervised
by two delegates, one representing the workmen and the other the
employer. It would be apportioned by the National Industrial
Association of Cuba, under the supervision of a person appointed
from the executive body.
Railroad and Street-Railway Employees* Insurance System
Retirement benefits for railroad employees were provided in the
law of November 24,1921, which was superseded by the law of Octo­
ber 9, 1923. This latter law, which became effective July 14, 1924,
was amended on December 2, 1924, and, as amended, applied to rail­
road and street-railway wage earners and employees. Again, on
October 4,1929, a new law was enacted which supplemented all pre­
vious legislation and nullified provisions in conflict with its terms.
Coverage of System

The law covers employees and workmen of public railroads, street
railways, land transportation companies, employees and workmen
engaged by public or private organizations handling express or
devoted to the transportation of freight and baggage in connection
with public-service companies, and all employees and workmen of
any organization rendering service to the public-service companies
mentioned.
Contributions

Wage earners and employees contribute 3 per cent of their wages
or salaries, a sum equal to the first month’s salary or wages payable
in 36 consecutive monthly payments, and also the increment in the
first month’s salary when the employee is promoted to a higher posi­
tion or receives an increase of wages, provided the promotion lasts
for three months. The railway companies contribute 2 per cent of
the total amount of salaries and wages (this may be reduced to iy2
per cent). Other sources of income are: Sales of articles abandoned
on the railways and not claimed within one year, fines, interest, dona­
tions, legacies, the obligatory deduction of 10 per cent on retire­
ment annuities and pensions paid, unclaimed wages, the 20 per cent
reduction of retirement allowances of persons living in a foreign
country, etc.
Benefits

In the case of regular retirement the benefit is calculated on the
average monthly pay during the highest-paid year. On an average
162

163

CUBA

monthly pay of $1001 or less the benefit is 65 per cent; on a monthly
9
average greater than $100, the rate of benefit is 65 per cent of the
first $100, and 60 per cent of the remainder.
Regular retirement annuity may be granted for 25 years’ service
at the age of 55 years, for 30 years’ service at the age of 50 years,
or for 35 years’ service at any age, and also for disability incurred
in the line of service. The maximum benefit is $200 per month.
A worker may retire voluntarily at the age of 60 years after
having served for at least 10 years but not long enough to become
eligible for the regular benefit. The benefit in case of voluntary
retirement is based on the number of years of service and amounts to
2 per cent of the annual remuneration for each year of service.
Compensation after retirement begins from the day on which the
interested party no longer receives salary or wages from the com­
pany. The retirement pay is calculated and paid after a lapse of 90
days from the date of application for pension.
Administration

Administration is in the charge of a directorate, elected for four
years, consisting of a chairman, 2 representatives of the employers,
2 representatives of the employees (1 in active service and 1 retired),
and a delegate appointed by the President of Cuba.
Statistics of Operation

The law at present protects about 45,000 persons, and 3,000 persons
are receiving benefits. The total railway retirement fund at present
is approximately $2,000,000.
During the fiscal year ended June 30, 1931, the commission ex­
pended a total of $1,256,974.87 in pensions, of which $1,007,518.46
was paid to workers, $245,749.72 was paid to families of workers,
and $3,706.69 was paid as return of deposits made by workers.
At the end of June the commission made the following statement,
showing the amount expended monthly for different kinds of
pensions:
T able 1 7 . —Average number of beneficiaries and average amounts paid per

month under railroad and street-railway employees* insurance system as of
June, 1931
Paid to workers

Paid to workers*
families

Type of benefit
Num­
ber
Ordinary retirement.. - . _. . _——_—__ —_________ _______
Voluntary retirement. . . . . __ _______ _______. . ___________
Partial disability_______________________________________
Total disability........................................................................
Suspensions by reduction of personnel.......——— — — ——
Paid to discharged workers________ ________ _________ ___
Paid for other separations_____ . . . ___ ____________________
Total_________________ ___________ ______________
* Cuban peso equals $1.

Amount

Num­
ber

Amount

1,236 $40,125.96
195
3,185.13
120
1,637.45
430 10,066.78
588 12,779.89

239
72

$5,970.38
1,255.93

437
12
13
14

8,156.85
225.04
240.42
179.34

2,569

787

16,027.96

67,795.21

164

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

On account of reductions in personnel, there was a tendency toward
an increase in the number of pensioners separated from service by
reason of economies in administration; otherwise Table 17 is repre­
sentative, showing that approximately 24 per cent was paid for total
or partial disability.
Maritime Workers’ Insurance System
Insurance and pensions for maritime workers was provided by a
law of July 4, 1927, modified by the law of June 14, 1929. New
regulations for execution of the law were published in Presidential
Decree No. 1134 of July 17,1929.
Coverage of System

The law provides compulsory insurance for wage earners and
employees engaged in the maritime shipping industry.
Contributions

Each worker contributes 3 per cent of his wages or salary up to
$500 per month (if the salary exceeds $500 per month, he may also
be required to contribute, at the same rate, on the amount over $500,
if such contribution is deemed necessary), and his first month’s
salary or 2 per cent of the daily pay until the sum of $75 is reached.
The contributions by the workers may be later increased, up to 5
per cent.
The employer contributes 1% per cent of the total wages and
salaries, this percentage fluctuating with the contributions by wage
earners and employees; and in case of salvage, 1 per cent of the share
of the crews of the ships and 3 per cent of the share of the companies.
Other sources of funds are fines, interest, and profits on the benefit
fund, grants, legacies, and donations.
Benefits

Calculations for retirement are made in accordance with the aver­
age of salaries and wages received during the two years of service
prior to the date of presentation of request for pension by the appli­
cant. Benefits are 75 per cent of the wage or salary up to $100 per
month, or 65 per cent of the wage or salary from $100 to $200. For
those receiving from $200 to $500, compensation is calculated as fol­
lows : The first $100 at 65 per cent, the second $100 at 60 per cent, and
any remainder between $200 and $500 at 55 per cent, the result of the
three percentages being the total retirement pay. The maximum
annuity payable under the act is $150 per month.
Benefits are payable after 20 years’ service at the age of 50 years or
after 25 years’ service at any age.
An employee who is 50 years of age and has rendered 10 years’
service or more but not sufficient service for the regular annuity may
voluntarily retire, in which case he receives benefits equal to 3 per
cent of the ordinary pension for each year of service.
In case of the death of an annuitant, his dependents, if they are in
want, may continue to receive the benefit, one-half being paid to the

CUBA

165

widow and one-half to the children and parents; if there are no
children, parents, or sisters, the widow is to receive the entire
pension.
Administration

The system is administered by a board composed of two members
elected by the maritime employers, one elected by the manual workers
and journeymen, and another by the officials and office employees of
shipping companies.
Under article 3 of the regulations of June 14, 1929, the chairman
is appointed by the President of Cuba.
Statistics of Operation

Employees of shipping companies, shipping agencies, shipyards
and shops, and other classes of maritime organizations are covered.
In the last official census of Cuba there were 147,854 workers in the
transportation industry, and it is estimated that at least one-third
were engaged in maritime employment. Allowing for the increase
of population since the census, it is estimated that the pension law
covers about 50,000 workers.
Up to December 31, 1929, there were 9,877 claims for benefit,
877 of which had been decided. The total expenditure for benefits
of all kinds by the Maritime Commission amounted to $31,300.91
from December 1, 1929, to November 30, 1930, of which $20,798.51
was paid for disability. The total amount expended for pensions
during this period was $22,834.54.
S o u b c h s f o r C u b a : Presidential decree 1134 (July 17. 1929), regulations for the mari­
time retirement law ; and railway retirement law (Oct. 4, 1929).

Czechoslovakia
By John W. B a i l e y , Jr., American Consul, Prague

Old-age insurance in effect in Czechoslovakia at the present time
is of two types, covered by two different sets of laws and regulations.
The first old-age insurance put into effect in the present territory of
Czechoslovakia was for salaried employees and was provided for in
the Austro-Hungarian law of December 16, 1906, put into effect in
1909. This law remained in effect, with some changes made in
1918 and 1920, until 1929, when it was replaced by the Czechoslo­
vak law of February 21, 1929. Insurance for manual workers
was first provided by Czechoslovak law of October 9, 1924, which
went into effect on July 1, 1926, covering sickness, invalidity, and
old age. This law was supplemented and completed by the law of
November 8, 1928, and the law as revised was published November
17, 1928. In addition to the old-age and disability insurance now
in effect for these two classes, the law of June 10, 1925, provides for
sickness, disability, and old-age insurance for all persons engaged
in independent trades, professions, and agriculture. However, the
administrative details and regulations of this law have not yet been
worked out and insurance for these classes is not now in effect.
Inasmuch as the Czechoslovak insurance laws cover both old
age and disability, many applications of the law refer to both con­
tingencies, and consequently the following summary includes infor­
mation on disability insurance where this can not easily be separated
from the old-age insurance.
Salaried Employees’ Insurance System
Coverage of System

The law of February 21, 1929, provides for compulsory insurance
against old age and disability for salaried employees, and applies
to the following classes of employees: Employees engaged in the
preparation of documents, such as office workers, clerks, and secre­
taries; technical employees; employees in trade administration;
commercial clerks and travelers; persons employed by editorial and
administrative departments of newspapers and periodicals; em­
ployees in theaters and amusement houses; overseers, foremen, and
other persons engaged in supervision; educational employees. It
applies to all employees over 16 years of age in the above and kindred
lines, irrespective of sex, nationality, or income.
The exemptions under this law are as follows: (1) Employees
who have not attained 16 years of age; (2) persons in subordinate
or secondary employment, working for wages only; (3) students
attending higher schools and universities who are also employed in
any of the above-mentioned lines; (4) State employees and emIW

167

CZECHOSLOVAKIA

ployees of religious organizations (provided they have recourse to
some pension which will equal the benefits provided by this act);
(5) employees of the national bank and employees of foreign com­
panies, in so far as they have no office in Czechoslovakia; (6) em­
ployees of foreign representative offices in Czechoslovakia and
persons enjoying extraterritoriality, in so far as they are citizens of
foreign countries; and (7) persons receiving old-age benefits.
Contributions

The insured are placed in 11 classifications, depending upon the
amount of salary received annually. Persons receiving no salary,
such as apprentices and learners, are placed in class No. 1. The 11
classes, with the salary ranges and contributions paid, are given
in the table following.
T able

1 8 . —Salary

Glasses and monthly contributions under Czechoslovak
salaried employees' insurance system

[Conversions into United States currency on basis of crown=2.96 cents]
Yearly salary

Monthly contri­
butions

Salary class
Czechoslovak
currency
Crowns
Class 1........ .........................................................
Class 2 ....._. . . . . . . . . . . . . . __ . . . . . . . . . . . . . . . . . _
Class 3______________ _____. . . . . . . . . . . . . . . . . . .
Class 4 . . . . . . . . . . . . . . . ______________ _ . . . . . . . . . .
Class 5_. . . . . . _—_______________ . . . . . . . . . . . _
Class 6 . . . . . . . . . . . ________________. . . . . . . . . . . . . .
Class 7._. . . . . . . . . . . ___ __ __________. . . . . . . . . _
Class 8 . . . . . . . . . ____ ______________ . . . . . . . . . . . . .
Class 9 ______________________ . . . . . . . . . . . . . . .
Class 1 0 . . . . . . . . . . . . . . __ - __ . . . . . . . . . . . . . . . . . . . . .
Class 1 1 ........ ....______— _- ____ __ . . . . . . . _

6, ooo

6.000- 9,000
9.000-12,000
12.000-15,000
15.000-18,000
18.000-24,000
24.000-30,000
30.000-36,000
36.000-42,000
Over 42,000

United States
currency

Up to $88.80
$88.80- 177.60
177.60- 266.40
266.40- 355.20
355.20- 444.00
444.00- 532.80
532.80- 710.40
710.40- 888.00
888.00-1,065.60
1,065.60-1,243.20
Over 1,243.20

Czecho­ United
slovak
States
currency currency
Crowns
12
36
66
96
120
150
170
190
210
230
250

$0.36
L07
LOS
2.84
3.55
4.44
5.03
5.62
6.22
6.81
7.40

All new employees in the classes mentioned above must be reported
by the employer within 14 days after their engagement. In the
same way, salary changes or separations must be reported within
14 days. Every employer must keep on file the salary receipts for
the preceding three years, or some other record which will enable
inspectors to verify the annual salary of the employees.
The employer and the employee each pay half of the contribu­
tions. The contributions must be paid during the entire period of
the working contract. All contributions must be paid at the end
of the month, and 5 per cent interest is charged for delayed pay­
ments. No statement of account is sent by the insurance organiza­
tion, as the employers are required to send each month the contribu­
tions arising from the original contract with the employees. The
employers guarantee the payment of all contributions.
Benefits

Benefits become payable only after a “ qualifying period ” of 60
months during which contributions have been paid.

168

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Benefits become payable upon permanent or continued disability
of the insured, making it impossible for him to carry on his profes­
sion, provided the disability was not incurred voluntarily. Old-age
benefits are paid when the insured, if a man, reaches the age of 65
or if a woman, reaches the age of 60. If the insured, because of
disability, is not employed or engaged in any occupation under the
compulsory insurance act, or if he has completed 480 months’ con­
tributions, the benefits begin, in the case of a man, at the age of 60,
and in the case of a woman, at the age of 55. The disability and
old-age benefits are as follows: A basic annual payment of 3,600
crowns ($106.56) per year, plus an annual payment of the amount
indicated below for each class and for each month of contribution
made. For example, a person in class 2 who has contributed for
400 months would receive an annual benefit of 3,600 crowns plus
400 times 6, or a total of 6,000 crowns ($177.60).
T able 1 9 . —Supplementary benefit in each salary class under Czechoslovak

salaried employees' insurance system
[Conversions into United States currency on basis of crown=2.96 cents]
Amount per con­
tribution month
Salary class
Czecho­ United
slovak
States
currency currency

Class 1 . . . . . . . . . . . . . . . . . . . . . __
Class 2____ _____ . . . . . . . . . . .
Class 3____ _______________
Class 4______ _____________
Class 5...________ . . . . . _____
Class 6..—________________

Crowns
2
6
10
15
20
25

$0.06
.18
.30
.44
.59
.74

Amount per con­
tribution month
Salary class

Class 7 . . . . . . . . . . . . . . . . . . . . . . . .
Class 8___ ________ . . . . . . . . .
Class 9______ ____ . . . _. . . . . .
Class 10..—. . . . . . . . . . . . . . . . . . .
Class 11._. . . . . . . . . . . . . . . . . . . .

Czecho­ United
slovak
States
currency currency
Crowns
30
35
40
45
50

$0.89
1.04
1.18
1.33
1.48

An educational benefit of one-eighth of the benefit accruing under
the above is given to the insured for each child under 18 years of age.
The widow’s and widower’s benefit is the amount of one-half of
the benefit of the deceased, but the benefit must not be less than 3,000
crowns ($88.80) per year. Furthermore, if the widow or widower
is completely incapacitated—unable to live without outside assistance
and care—the benefit is increased by one-half of the amount to which
she or he is entitled under the above. The benefit to the widow or
widower ceases upon remarriage, with the payment of three times
the annual amount which he or she was receiving at the time of
marriage.
Orphans under the age of 18, or under 24 in case they are students
or infirm, receive one-half of the benefit due to the deceased if full
orphans, or one-fourth if half orphans. If both parents were in­
sured, the orphan receives one-halx of the higher benefit. In no case
can the income of a half orphan be less than 1,500 crowns ($44.40)
per year, and of a full orphan less than 3,000 crowns ($88.80) per
year, and in no case can the total benefits amount to more than the
full benefit of the deceased. In cases in which the widow and or­
phans would be entitled to a larger amount than the full benefit of
the deceased, the benefits of the orphans are reduced proportionately.

CZECHOSLOVAKIA

169

Any insured woman who has completed 60 contributing months re­
ceives on her marriage a dowry, equal to the yearly amount to which
at the time of her marriage she would have oeen entitled in case of
disability. Funeral benefits amount to one-fifth of the yearly bene­
fit that the insured received or upon which he had claim, out not
more than 4,000 crowns ($118.40). If the insured dies before the
expiration of the 60 contribution months but has contributed for at
least 6 contribution months, his heirs are entitled to a lump sum of
150 per cent of the yearly disability benefit accruing to his class.
In case the insured has been receiving disability or old-age benefits
and leaves no widow or widower or children^ then the parents of the
deceased have the right to the income, provided they can show that
they were dependent upon the deceased.
Adm inistration

The insurance covered by this law is carried by the General Social
Insurance Institute, with several subordinate organizations, and by
a few smaller similar organizations, all under the control of the Min­
istry of Social Welfare. Governing bodies for the administration
of the act are composed of members of the General Social Insurance
Institute, which includes insured and employers.
The governing bodies consist of a board of directors and a board
of auditors, each composed of representatives of the employers, rep­
resentatives of the employees, and Government social insurance ex­
perts. These bodies have distinct duties which are limited by law.
The committee is composed of a president and 3 vice presidents,
who are appointed by the President of the Republic, and 34
members, of whom 14 are elected by the employers and 14 by the
employees, with 6 appointed by the State. They are appointed for
6 years. The board of directors is made up of a president and 3 vice
presidents and 10 members, 4 elected by the employers, 4 by the em­
ployees, and 2 social insurance experts appointed by the State. The
board of auditors is composed of 3 members, 1 of whom is appointed
by the State. The positions on these governing bodies are honorary,
and payment is given only for specific or special services.
The managing directorate is composed of 17 members—a presi­
dent and 2 vice presidents appointed by the Ministry of Social Wel­
fare, 7 members elected by the employers, and 7 members elected
by the employees. The administrative commission is composed
of 4 members, 2 elected by the employers and 2 appointed by
the State. The auditing and benefits commissions are composed of
2 members each, 1 of whom is an employer. All of these bodies have
limited duties prescribed by law, and the members are elected for a
period of 6 years by secret ballot from lists of candidates.
Statistics o f Operation

Nwnher of persons inswred.—According to the official statistics of
the General Insurance Institute, 309,148 persons were insured in
some way under the provisions of the law for insurance of salaried
employees on July 1,1930. Of this number, 302,469 were compulso­
rily and regularly insured; 2,339 were voluntarily and regularly in­
sured ; and 4,340 were persons whose employment status had changed

170

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

so that they were no longer required to be insured, but who had
elected to keep alive the insurance paid, up to the change in status,
by the payment of a fee of 25 crowns (74 cents) per year. In ad­
dition to this number, 40 private companies operating under the
provisions of the law carry insurance for 50,226 salaried employees.
The Government through the General Insurance Institute is gradu­
ally taking over this insurance and expects to carry all the insur­
ance for this class within 15 years.
Number receiving benefits and amount of benefit per person.—
On July 1, 1930, benefits of all kinds were being paid to 31,922
ersons under the provisions of this law by the General Insurance
nstitute. (Benefits accruing under the insurance carried by the
private companies mentioned above are not included.) The fol­
lowing table shows the various classes of benefits being paid and the
number of persons in each class.

?

Number o f

C lass o f b en efit:

persons

Disability benefit______________________________________ 9,365
Old-age benefit________________________________________ 4,949
Widows’ benefit_______________________________________ 9,563
Orphans’ benefit----------------------------------------------------------4,934
Educational additions_________________________________ 3,047
Widowers’ benefit_____________________________________
2
Parents’ benefit_______________________________________
62
Total______________________________________________ 31,922

A detailed balance sheet showing the distribution of the various
classes of benefits paid out during 1929 is not yet available, and con­
sequently it is not possible to calculate the benefits per person in
each of the classes of benefits. The balance sheet showing the
financial operations during 1928 was not published in a consolidated
form. A separate balance sheet was made for compulsory and volun­
tary insurance, and adjustments made necessary by amendments to
the law, particularly addition of 300 per cent to the basic benefit to
compensate for the high cost of living, were not included in the
balance sheet, these payments having been made from reserve as­
sets. Below are given all payments in the form of benefits, whether
annual benefits or lump-sum payments of various types.
T a b l e 2 0 . —Payments

for 'benefits under Czechoslovak salaried employees’ in­
surance system, 1928

[Conversions into United States currency on basis of crown *2.96 cents]
Amount disbursed
Type of payment

Disability benefits............ .... . . . —_______ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Old-age benefits.............................. .....................................................................
Additional beneflto............ . - ____ —
- ___
,
Educational benefits------ --------------------------------------------------- ----------------

Czechoslo­
vak cur­
rency
Crowns
9,897,421
1,746,098
207,482
43%26ft

United
States
currency

$292,964
51,685
6,141
1%795

171

CZECHOSLOVAKIA

T a b le 2 0 . — Payments for "benefits under Czechoslovak salaried employeesf in­

surance system, 1928—Continued
Amount disbursed
Type of payment

Czechoslo­
vak cur­
rency

United
States
currency

Crowns
3,759,160
1,291,996

$111,271
38,243

Total, annual benefits___. . . . . . __________________ . . . . . . . . . . . . . . . . . . . . . 17,334,412
62,477,324
Additional
benefit payments for high cost of living... . . . . .

513,099
1,563,329

69,811,736

2,066,427

Orphans’ benefits*. .

1-11111-1111111111.— I—___.......____ ...... ___
II—

Other payments—lump-sum or treated as such:
Lump-sum indemnification for uncompleted qualifying p eriod ......—
. . 1,021,478
642,721
Funeral expenses...____________________ ____________________________
Amounts paid upon surrender of insurance after completion of qualifying
period—
Returned contributions and surrender value (principally dowries)......... 18,216,654
Transferred c o n t r i b u t i o n s . . . . . . . . . . . . . . . __ ___ . . . . . . . . . __ ___ 17,992,821

539,213
532,588

Total, lump-sum payments.... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _ 37,773,674

1,118,101

30,236
16*065

1 Cases in which the insurance contract is canceled, but the insured, by the payment of a nominal fee,
continues the insurance at its value at the time of cancellation.

During 1928, the total number receiving benefits in the form of
annual payments was reported to be 23,410, from which must be sub­
tracted 99 persons with Government-guaranteed payments who were
transferred to the Austrian insurance company as a result of the
division after the war, leaving 23,311. By dividing this number into
the total amount of annual benefits paid, i. e., 69,811,736 crowns
($2,066,427), the figure of 2,995 crowns ($88.65) is obtained as the
average annual benefit paid to each person. Reference to the fore­
going distribution of annual benefits paid will show that these pay­
ments are of six classes and made to tour different types of benefici­
aries (the small additional benefits and the educational benefits being
made to these four classes). Consequently, the average benefit re­
ceived per person for each class will differ greatly from this figure;
old-age benefits will be greatly in excess and, to a smaller degree,
disability benefits and benefits to widows and orphans will be corre­
spondingly reduced.
Receipts and expenditures.—The following balance sheet of the
General Insurance Institute gives a distribution of the receipts and
expenditures for the operation of the insurance under this law for
the calendar year 1928. This balance sheet is a combination of two,
one for compulsory and one for voluntary insurance, and does not
include the additional benefits provided by an amendment to the law
enacted during the year.
83360°—32------12

172

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

T a b le 2 1 ,—Balance sheet o f Czechoslovak salaried employees9 insurance fund

for 1928
[Conversions into United States currency on basis of crown*2.96 cents]
Czechoslovak
currency

Item

Receipts
Balannn from last year
...
, Contributions________________________ . . . . . . . _____ _________ . . _____
Transferred shares of contribution reserves____________________________
Reimbursingcapital _ __
„
_____ ______ _
,

United
States
currency

Crowns
1,491,740,606 $44,155,522
252,890,770
7,485,567
26,653,949
788,957
8,844
298,793

Profits from invested capital:
Interest from bank deposits___. . . . . . . ____________________________
Interest from securities_________________________________________
Interest from loans.
n
______ ___ ______
......... ................ .................. ........
Interest from debtor?*
Interest from charges for delay............. ...........................................„ „, „
Other interest___ _____ ___________________________ ___________
Net profit from real estate_______________________________________

8,149,680
74,975,833
44,093,776
415,061
6,549,700
599,068
879,710

241,231
2,219,285
1,305,176
12,286
193,871
17,732
26,039

Total.....................................................................................................

135,662,829

4,015,620

Increment on sales of securities___ __________________________________
Other income_______________ ___ . . . _______________________________

504,956
3,180,826

14,947
94,152

Grand total .............................. .

.......r.„ ................ .

1,910,932,728

56,563,609

Expenditures
Disability benefits_________________ _____ ___ _____ ______ _________
Old-age benefits____ . . . . . . _________________________________________
Additional benefits_ . . . . . . . . _______ . . . . . __________________________
_
Educational benefits___________ ___________________________________
Widows' benefits_____________. ____________________________________
Educational contributions____________________ _____________________
Funeral expenses__________________________ _______________________
Lump-sum indemnification......___________________________________

9,897,421
1,746,098
207,482
432,265
3,759,150
1,291,995
542,721
1,021,478

292,964
£1,685
6,141
12,795
111,271
38,243
16,065
30,236

Total.......................... .... ......................................... ...........................

18,898,611

559,399

Amounts paid upon surrender of insurance:
Returned contributions and surrender value_______________________
Transferred contribution reserves......... .................. .................. ..........

18,216,654
17,992,821

539,213
532,587

Total....................................................................................................

36,209,475

1,071,800

Administrative expenses___________________________________________
Interest_________________________________________ ________________
Depreciation__. . . . . . . . . . . __________________________________________
Other expenses..........___________________________________________
Balance______ . . . . . . . . . ___________________________________ . . . _____

21,241,923
5,882,929
3,083,758
19,157,160
1,806,458,872

628,761
174,135
91,279
567,052
53,471,183

1,910,932,728

56,563,609

Grand total__ . . . . . . . . . . . . . __________________ _________________

Cost of administration.—The cost of administration for 1928 was
21,241,923 crowns ($628,761). On the basis of the total number
of persons insured, including voluntary and surrendered insurance,
the per capita rate is 68.70 crowns ($2.03). On the basis of the total
number of persons receiving annual benefits (not including persons
receiving lump-sum payments or surrendering their insurance), the
per capita rate is 911 crowns ($26.97). The cost of administration,
as stated in the balance sheet, is equal to 8.4 per cent of the value
of the total annual contributions and 23.7 per cent of the total bene­
fits and lump-sum payments made during the year.
Manual Workers’ Insurance System
Coverage of System
This law provides for compulsory insurance against sickness, old
age, and disability for all persons in Czechoslovakia performing

173

CZECHOSLOVAKIA

work or rendering services on the basis of a contract for work or
service or apprenticeship. The basic condition for putting com­
pulsory insurance into operation is that there must be an agree­
ment by one party to perform work or services for another. The
insurance is compulsory for these classes, and every employer is
required by law to apply for insurance for every employee coming
within the scope of the law. The insurance does not become effective
for any person until an application has been made. If the em­
ployer does not apply for insurance for an employee, the employee
can make application himself. An employer is defined as any per­
son, legal or physical, on whose account work is done, regardless of
whether the work is economically beneficial. Children of an em­
ployer working in the same business as their parent are exempt
from the insurance unless an apprenticeship agreement exists. The
exemptions mentioned in the law are: Government employees; em­
ployees of foreign States and countries who are foreigners; per­
sons covered by mining insurance. These exemptions are valid only
in so far as the persons exempted have recourse to one year’s wages
in case of sickness or disability or are otherwise insured so that
they will receive payments equal to those contemplated by this law.
Other exemptions are persons working for wages in a secondary
or subordinate employment, persons over 60 years of age, persons
coming under insurance for salaried employees, and persons receiv­
ing old-age or disability benefits.
Contributions
For the purpose of assessing contributions for compulsory in­
surance under this act, wage earners are divided into five classes, ac­
cording to the daily, weekly, or monthly wages received (weekly
wages are figured on the basis of 6 working days and monthly
wages on the basis of 25 working days). Under the term “ wages’’
is considered all the income received for contract work. Wages for
piecework are figured on the average earnings for a number of weeks
or upon the basis of daily income received for similar work by an­
other worker in the same branch. The following are the five classes
into which wage earners are divided, with the daily, weekly, and
monthly wages for each class, and the amount of the weekly con­
tributions.
T able 2 2 .— Wage classes and weekly contributions under Czechoslovak manual

workers' insurance system
[Conversions into United States currency on basis of crown=2.96 cents]

Daily wages
Wage class

Class Aa_____
Class Ab_____
Class B ..____
Class C______
Class D______

Czecho­
slovak
currency

United
States
currency

Weekly wages

Czecho­
slovak
currency

United
States
currency

Monthly wages

Czecho­
slovak
currency

Crowns
Crowns
Crowns
Up to 10 Up to $0.30 Up to 60 Up to $1.78 Up to 260
$0.30-. 41
60-84 $1.78-2.49
260-360
10-14
2.49-3.91
84rl32
360-660
14-22
.41-. 66
3.91-5.06 550-712M
.66-. 84 132-171
22-28H
.84-1.02 171-207
5.06-6.13 712M-862M

Weekly contri­
butions

United
States
currency

Czecho­ United
slovak States
cur­
cur­
rency rency

Up to $7.40
$7.40-10.36
10.36-16.28
16.28-21.09
21.09-25.53

Crowns
2.60
3.60
5.10
6.60
8.40

Cents
7.7
10.6
15.1
19.5
24.9

174

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

The law provides for higher rates when wages are higher than
34.5 crowns ($1.02) per day, to be figured out on an unchangeable
basis and to amount to 4.3 to 4.8 per cent of the average daily wage.
However, the rates for higher wages than 34.5 crowns have not yet
been worked out, and consequently wage earners receiving more than
the above amount at the present time are placed in class D. Appren­
tices are placed in class Aa.
The employer is required to report the name of all new employees
within six days of tneir engagement. Likewise he is required to
report within six days the separation of a worker from his employ;
otherwise he will be held liable for all weekly contributions during
the time elapsing between the separation of the employee from his
service up to the date of the report. If the employer fails to report
within six days the engagement of an employee, he is liable to a fine
of 5,000 crowns ($148), or if unable or unwilling to pay the fine, to
imprisonment up to one month. The insurance bureau can collect
from the employer insurance up to 10 years for any employee who
has not been reported; that is, the employer is liable for the payment
of his employees’ back insurance for 10 years, with an additional
charge of 5 per cent interest.
Contributions are paid one-half by the employee and one-half by
the employer. The employer must pay the entire contribution to the
insurance bureau, but has the right to deduct one-half of this amount
from the employee’s wages. All contributions must be paid by the
employer within 14 days after the date due. In case of delay, 5 per
cent interest is charged.
Benefits

A “ qualifying period” of 100 contribution weeks is required
before payment of benefits begins.
Old-age and disability benefits.—The basic benefit to the insured
under this law is 550 crowns ($16.28) a year. To this amount is
added an annual sum depending upon the wage class of the insured
and upon the number of weeks of paid-in contributions. These addi­
tional benefits are as follows:
T a b le 2 3 . — Supplementary 'benefit in each wage class under Czechoslovak

manual workers' insurance system
[Conversions into United States currency on basis o f crown= 2 .96 cents]
Benefit per week of
contribution
Wage class

Class A a ... . . . . . . __. . . . . . . . . . . . . . . . . . . . .
Class Ab____ ______________________
Class B .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Class C__ . . . . . . . _____ . . . . . . . . . . . . . . . . .
Class D _______ _____________________

Czecho­ United
slovak
States
currency currency
Crowns
0.60
.85
1.15
1.40
1.75

Cents
1.78
2L52
3.40
4.14
5.18

In addition to these payments, the State makes an annual contri­
bution of 500 crowns ($14.80) for old age or disability. I f the

CZECHOSLOVAKIA

175

insured has children, he is given an additional amount equal to
one-tenth of the benefit, not including the State contribution.
Disability benefits become due upon the day that disability begins,
and old-age pensions upon reaching the age of 65, provided that
the insured does not continue to work in any branch that comes under
the compulsory insurance provision of this law.
Survivors' benefits.—Widows’ or widowers’ benefits, provided the
widow or widower is disabled for work, has reached tne age of 65,
or is supporting two or more children eligible to receive orphans’
benefits, amount to a life benefit equal to one-half of the benefit
of the deceased. If a widow or widower is able-bodied, under 65
years of age, and has fewer than two children, a lump-sum payment
of one year’s benefit is made. Orphans’ benefits are given to children
up to 17 years of age and amount to two-fifths of the benefit of the
deceased for a full orphan and one-fifth for a half orphan.
The total amount of all orphans’ benefits may not exceed the benefit
which the deceased received or to which he was entitled, together
with the bonuses. If it exceeds this sum, the individual orphans’
benefits shall be proportionately reduced.
In addition to these payments, the State makes an annual contri­
bution of 250 crowns ($7.40) to widows and widowers, 100 crowns
($2.96) to half orphans, and 200 crowns ($5.92) to full orphans.
Dowry benefits are paid to a woman who has completed the quali­
fying period and has filed application for the dowry payment within
two years after her marriage. She receives a basic payment of from
400 to 600 crowns ($11.84 to $17.76), depending upon the class in
which insured, and in proportion to the amount to which she would
have been entitled in case of disability at the time of her marriage,
plus a State contribution of 250 crowns ($7.40). She can, at the
same time, retain her insurance by paying 10 crowns (30 cents) a
month. If the insured dies before the expiration of the 100 contri­
bution weeks, his heirs are entitled to a lump-sum payment, which
is determined according to the class in which insured, the amount for
class A being 150 crowns ($4.44), and in the succeeding classes is
increased by 50 crowns ($1.48) up to class D, where it amounts to
750 crowns ($22.20).
Administration
The General Social Insurance Institute also carries all disability
and old-age insurance provided in the law relating to manual work­
ers. It has the right, however, to divide the insurance among other
organizations which it is authorized to form. The administrative
organization of the General Social Insurance Institute is composed
as follows: A president and three vice presidents, appointed by the
President of the Republic; a committee of 40 members, 12 of whom
are elected by the employers and 12 by members of tne association
(that is, the insured), and 16 are appointed by the Ministry of Social
Welfare, usually social insurance experts; a board of directors com­
posed of a president and 10 members, 3 of whom are elected by the
employers, 3 by the members of tne association, and 4 experts
appointed by the Government.
The powers of the committee are defined in the charter of the social
insurance act of 1906 which applied only to salaried employees. The

176

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

board of directors represents the General Social Insurance Institute
in all matters that are not designated by law or reserved thereby to
subordinate organizations.
The managing directorate is composed of three members appointed
and subject to dismissal by the committee, with the consent of the
Ministry of Social Welfare. This directorate decides on all impor­
tant questions of everyday work, and especially makes suggestions to
the board of directors and the committee. The Ministry of Social
Welfare carries out the law and supervises the work of the General
Social Insurance Institute and all other subordinate organizations.
Statistics o f Operation

Number of persons insured.—According to the official statistics of
the General Social Insurance Institute, 2,035,959 persons were in­
sured under the provisions of this law on December 31, 1929.
Number receiving benefits and amount of benefit per person.—The
following table, compiled from statistics of the General Social In­
surance Institute, shows the number of persons receiving benefits,
according to the kind of benefit, on December 31,1929, with the total
amount of benefits paid out in each class and the average amount of
the benefit to each person in the class during 1929.
T able 2 4 . —Number receiving benefits and total and average benefits paid under

Czechoslovak manual workers’ insurance system in 1929
[Conversions into United States currency on basis of crown* 2.96 cents]

Kind of benefit

Total benefits
Benefit per
paid
person
Number
receiv­
ing
benefit Czecho­ United Czecho­ United
slovak States slovak States
currency currency currency currency

Disability benefits___________________________ . . . . . _
Old-age benefits__ ___ __ ______________ __. . . . . . . . . _
Widows' benefits____ __ __________________________
Orphans* benefits.. . . . . . . . . . . __________________ . . . . . .

Crowns
604 284,589
1
1,359
1,007 253,591
1,444 315,029

$8,424
40
7,505
9,325

Crowns
471
1,359
252
218

$13.94
40.23
7.46
6.45

Total_______________________________________

3,056 854,568

25,295

322

9.53

The small amount of these benefits is explained by the fact that
this law has been in effect only since July 1,1926, and by the result­
ing restricted time of contributions, upon which part ox the benefit
depends.
In addition to the above payments classified as benefits—that is,
annual payments—lump-sum payments were made during the year
which amounted to several times the value of the so-called benefit
payments. These lump-sum payments were of two classes and were
distributed as follows: During 1929, dowries in the amount of
10,743,200 crowns ($317,999) were paid out to 22,238 insured women
upon marriage, or an average of 483 crowns ($14.30) per person.
During the same period lump-sum payments for uncompleted quali­
fying periods—that is, for dropped insurance where the status of

177

CZECHOSLOVAKIA

the insured was changed so that insurance was no longer compul­
sory—were made to 5,706 persons in the amount of 4,044,270 crowns
($119,710), or 709 crowns ($20.99) per person.
Receipts and expenditures.—The following balance sheet of the
General Social Insurance Institute for December 31, 1929, shows the
distribution of the receipts from all sources and the expenditures
for all purposes during the year. It will be noted from these figures
that the surplus is mounting rapidly. Present payments for bene­
fits are comparatively insignificant, and during the first 3% years’
operation of the law a surplus of 2,366,176,635 crowns ($70,038,828)
was accumulated. It is estimated by the insurance organization
that in 30 years the surplus will amount to approximately
16,000,000,000 crowns ($473,600,000).
Table 2 5 .—Balance sheet of Czechoslovak manual workers' insurance system
for 1929
[Conversions into United States currency on basis of crown ==2.96 cents]

Item

Receipts

Balance from last year........... -

Czechoslovak
currency

Crowns

_____________ „...... .................... ................. 1,691,139,895

United
States
currency

$50,057,741

Prescribed contributions:
Compulsory insurance_______ ___ _________________________ . ___ _ . . .
_
Voluntary insurance___ _____ ________________ __________________
Soldiers’ insurance_____ . . . _____ ________ *
______________________ . . . . .

638,382,679
95,040
8,884,803

18,896,127
2,813
262,990
19,161,931

T ota l.. . . . . . . . . . . . . . . . . . . . _. . . . . ___________ . . . __ ___________ . . . . . _

647,362,522

Transferable amount received__ . . . —____ - - _____________ __________. . . . . _
Income on assets:
Interest on bank deposits.. . . . . _____________________________________
Interest from securities______ - ________________________________ . . . __
Interest on collateial_____________________________________________ __
Interest on State and communal loans..______________________________
Interest on mortgage loans. ____ __ ____ _____________ __. . . . . . . . . . . . . .
Interest on indirect loans___________________________________. . . ___ . . .
Interest on loans to hospitals__ . . . . . _____ ____________________ __. . . . .
Other interest__________________ ______________________________ ___
Income on nonliquid assets______________ ____________________ ___ __

1,499,863

44,396

18,594,673
44,538,186
7,516,043
19,955,124
5,574,938
4,644,931
4,645,780
135,812
309,547

550,402
1,318,330
222,475
590,672
165,018
137,490
137,515
4,020
9,163

Total...................... ............................................- .......................................

105,915,033

3,135,085

Other receipts:
State assistance
_ . . . . . ___ _ _______________. . . . . ___ ____________
Acknowledgment fees ____________________ _________________ ______
Manipulation fees for loans
____________________________________
Indemnities ____
__________________________________________ _
Security fund for loss through benefit papers__ _____ ___ ’__ __ _. . . . . . . .

530,995
3,570
4,018,397
1,476
3,778,353

15,717
106
118,945
44
111,839

Total______ . . . . . . . . . ______________________________ —____ - ____ __

8,332,792

246,651

Grand total_. . . . . . . _. . . ______________ _____ . . . . _________. . . __ ___ 2,454,250,105

72,645,803

Expenditures
Benefits:
Invalidity__ . . . . . . . . . . . ___________________________________________ _
Old age___________________________________________ * _______________
_
Widows and w id o w e r s .........____ __ __ ___________. . . . . . ___________
Orphans
________ __ . . . . . __ ._____. . . _. . . . __ . . . ____ ___ ___ ____ _
State assistance. _- __ . . . . . . . . _____________ - _____ . . . . _____ . . . . . . __
D ow ries..__________ _______________________ _________. . . . . ___ _____
Lump-sum payments for uncompleted qualifying period_______________

Toted

. . . . . . ______ . . . . . . ____ ________________________________

Sickness fund: Individuals____
Transferable amount expended.................................-

_

284,589
1,359
253,591
315,029
530,995
10,743,200
4,044,270

8,424
40
7,506
9,325
15,717
317,999
119,710

16,173,033

478,722

19,008,654
571,693

562,656
16,922

178

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

T able 2 5 . —Balance sheet o f Czechoslovak manual workers'* insurance system

for 1929— Continued

Item

Czechoslovak
currency

United
States
currency

Expenditures—Continued
Administrative expenditures:
Personnel________________ ___ _____ _________ __________________
Overhead______________________________________________________
Banking expenses................................................................... ....... ..........
Other expenses (hospitalization and medicine for insured)____. . . . . . . . . . .

Crowns
7,474,375
3,325,522
532,807
30,937,731

$221,242
98,435
15,771
915,757

Total__________________ . . . . . . . . . ______________________________

42,270,435

1,251,205

Loss on assets: In securities—
Government bonds_____ ________________________________________
Other.............................. ...........................................................................

2,163,063
1,615,290

64,027
47,813

3,778,353

111,839

568,859
251,061
3,951,381

16,838
7,431
116,961

___ ________________ u
.
Depredations
Inventory_______________ _________ ____________ ________________
Nonliquid assets______________________ _________________________
Uncollectible insurance____ . . . . . ___________________________ _____

4,771,302

141,231

Other expenditures:
1,500,000
Fund for insurance of employees of General Social Insurance Institute...
Balance___________________________________________________________ 2,366,176,635

44,400
70,038,828

Grand total..... ......... ....... ............... ...................... ........ ..................... 2,454,250,105

72,645,803

Total________________________________________________________

Cost of admmistration.—Exact administrative expenditures of
this insurance are somewhat difficult to figure. From the foregoing
financial statement it will be seen that the administrative expendi­
tures for personnel, overhead, and small banking expenses amount to
11,332,704: crowns ($335,448), or 4.915 crowns (14.55 cents) per per­
son based on the total of 2,305,959 insured. Included in the total
administrative expenditures for 1929 is an item of 30,937,731 crowns
($915,757), almost three times the personnel, overhead, and banking
expenditures, described as “ administrative expenses given to the
sickness insurance societies for services rendered to the Invalidity and
Old Age Pension General Social Insurance Institute.” An official
of the insurance organization has explained that the administration
is adopting a policy of providing for and encouraging all possible
treatments for the prevention ancl removal of disabilities in order to
reduce to a minimum the disability benefits. The treatments under
this plan are given by the organizations of the sickness insurance
societies (sickness insurance is compulsory but is separate and dis­
tinct from the old-age and disability insurance and is administered
by a different organization), but payment therefor is made to the
sickness insurance societies by the General Social Insurance Institute.
If this charge is included in the administration expenditures, the
total is increased to 42,270,434 crowns ($1,251,205), or 18.33 crowns
(54 cents) per person.
The total cost of administration, as stated in the balance sheet, is
equal to 6.5 per cent of the value of the total annual contributions.
A calculation of the cost of the administration of the insurance on a
benefit basis is deemed impracticable on account of the varied char-

CZECHOSLOVAKIA

179

acter of the benefits and lump-sum payments, and also because such a
calculation would be misleading as the law has been in operation for
only a short time and benefits are correspondingly unimportant.

State Railway Employees’ Insurance System
The type of insurance provided under this system is identical
with that provided by the law under which the General Social
Insurance Institute operates. The law establishing this system
provides that it must pay benefits at least equal to tnose provided
under the general insurance system.
Statistics of Operation

The following statement gives summary data of statistics of
operation for 1930:
Number of persons insured_________________________________________ “ 132,888
Number receiving benefits------------------------------------------------------------------- 62,773
Amount received in contributions___________ 100,265,817 crowns ($2,967,868)
Amount paid in benefits----------------------------- 531,414,855 crowns ($14,729,880)
Additional benefit to cover high cost of living- 135,256,073 crowns ($4,003,580)

Miners* Insurance System
This system also operates on the same basis as the general insur­
ance scheme.
Statistics of Operation

Summary data showing the operation of the miners’ insurance
system in 1929 are given below:
Number of persons insured__________________________________________ 129,644
Number receiving benefit_____________________________________________ 84,760
Total income------------------------------------- -------- 152,144,193 crowns ($4,503,468)
Income from contributions-------------------- 135,348,336 crowns ($4,006, 311)
Total expenditure--------------------------------------- 168,810,153 crowns ($4,996,781)
Amount paid in benefits_______________ 163,230,744 crowns ($4,831,630)

State Employees’ Insurance System
The total income from contributions under this system in 1930
amounted to 96,521,000 crowns ($2,857,022), while the total expendi­
tures were 796,912,000 crowns ($23,588,595).
S o u r c e s f o r C z e c h o s l o v a k i a : Sbfrka z&konii a naftzenf statu deskoslovenskSho, No.
221, 1924, No. 184, 1928, and No. 26, 1929; International Labor Office, Legislative Series.
1924, Czechoslovakia 4.

2 Average, 1929.
1

Denmark
By E. Gje s s in g , American Vice Consul, Copenhagen

General Pension System
The law of 1891 established a noncontributory old-age pension sys­
tem for aged poor citizens of Denmark. In 1908 another old-age
ension law was passed, which was superseded by the law of August
, 1922. This law aimed to promote thrift and permitted payment
ox the maximum old-age pension to persons who had a certain limited
private income, amounting to a little over one-half of the maximum
pension. This broadening of benefit, however, made the expenses
of the State increase so materially that, for economic reasons, the
law was superseded by the law of July 1, 1927, which is at present
in force. By this law the old-age pension varies with the income,
being set at an amount which, when added to the income, will not
exceed the maximum pension allowable under the law.

P

Coverage o f System

All citizens of Denmark over 65 years of age, without income de­
rived from private means or from pensions other than old-age pen­
sion, are entitled to old-age pensions under the law. Exception is
made in favor of persons whose earning capacity has been reduced
by one-third, who are entitled to old-age pensions at the age of 62.
The applicant for pension must have had a fixed legal residence in
Denmark or must have sailed with Danish ships for the last five years
preceding his application for an old-age pension. Exceptions to this
may be granted m specially meritorious cases, however.
The following are debarred from the benefits accruing under this
law:
(1) Persons sentenced for the commission of acts that are odious
in public opinion, unless such persons have been reinstated in their
civic rights.
(2) Persons who have squandered their means or have impov­
erished themselves for the purpose of becoming eligible for pension.
(3) Persons who have received public charity or poor relief three
years prior to application. Hospital or medical care at public ex­
pense is not considered poor relief in this connection.
(4) Persons who, during the five years prior to application, have
been found guilty of vagrancy, of having solicited alms, or of having
led a dissolute life through overindulgence of intoxicants, etc.
T y p e o f Law

The old-age pension law of July 1, 1927, like its predecessors, is
a straight pension law and contains no insurance features, The law
180

181

DENMARK

aims to establish the principle that poor persons are without ques­
tion entitled to old-age pensions when they have reached the age limit
fixed by law.
Contributions

No contributions are required of recipients of old-age pensions,
either before the age limit has been reached when old-age pensions
can be granted, or afterwards.
Benefits

The following table shows the annual maximum benefits payable
under the law to various classes of persons residing in various local­
ities where the cost of living differs:
T

able

2 6 . —Maximum

pensions payable under Danish old-age pension system

[Conversions into United States currency on basis of krone* 26.8 cents]
Copenhagen and
surrounding
districts
Class of pensioner

Urban districts

Danish United Danish United
States
States
cur­
cur­
cur­
cur­
rency
rency
rency
rency

Rural districts

Danish United
States
cur­
cur­
rency
rency

Married couples:
Kroner
Kroner
Kroner
Where both are over 65 years........................
1,008 $270.14
804 $215.47
600
Where one is over66 years................ .................................
882 236.38
1,104 295.87
660
67 years..................................................
720
1,200 321.60
960 257.28
68 years or more......................................
1,296 347.33
1,038 278.18
780
Single men or couples where the man only is
over65 years..................... ...................................
402
678 181.70
540 144.72
444
594 159.19
744 199.39
66 years........................................................
67 years________________________ ______
810 217.08
648 173.66
486
68 years or more............................................
702 188.14
876 234.77
528
Single women or couples where the woman only
is over65 years______________________________
378
642 172.06
510 136.68
564 151.15
66 years____ ____________ ________ _____
420
708 189.74
67 years................................... .....................
774 207.43
462
618 165.62
504
672 180.10
68 years or more...................................... —
840 225.12

$160.80
176.88
192.96
209.04
107.74
118.99
130.25
141.50
101.30
112.56
123.82
135.07

For persons with private incomes exceeding 300 kroner ($53.60)
a year for married couples and 100 kroner ($26.80) a year for single
persons, corresponding deductions are made in the old-age pensions
granted, in such manner that income plus the pension granted shall
not exceed the maximum old-age pension payable under the law.
The local authorities in mixed urban and rural districts classify
the old-age pensioners as to urban or rural residence and fix the
amount of pension according to their status.
Administration

The law is administered by local or municipal authorities, under
supervision of the Minister for Home Affairs, to whom appeals
from decision by local authorities can be brought.
The local authorities, whose duty it is to classify the pensioners
as to residence, are authorized to withhold pensions to helpless aged
che

182

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

persons and place them instead in old-age homes, provided the care
and comforts they receive in such homes are at least as good as, or
better than, what could be obtained for them with the cash pension
payments.
Old-age pensions are paid one month in advance on the first day
of the month.
The cost of administration is borne by the municipalities or local
authorities, which also bear the cost of five-twelfths of the old-age
pensions paid in their respective districts. The State contributes
the remaining seven-twelfths.
Statistics of Operation

Number of versons receiving benefits.—The following table shows
the number of pensioners of each class during the fiscal year ending
March 31, 1929:
T able 2 7 . —Number o f pensioners of each class under Danish old-age pension

system, by districts, year ending March 31, 1929, and two preceding years

Class of pensioners

Married couples, both over 65 years________ -_______
Man only over 65 years:
Single______ _____ _____. . . . . . . . . ____. . . . . . . ___
Married______________ —. . . __
Woman only over 65 years:
Single__. _____ -_____. . . . . . . _-_______________
Married_____ . . . . . . . . ___________________ -__ —

Copenhagen
and sur­ Urban dis­ Rural disrounding
tricts
* tricts
districts

Total

2,880

4,703

11,354

18,937

3,628
806

5,235
1,380

12,329
3,346

21,192
5,532

15,748
208

14,515
323

22,041
965

52,304
1,496

Total, 1928-29______________________________

23,270

26,156

50,035

99,461

1927-28____________________________________
1926-27.____________ ______________________

23,480
23,929

26,454
27,544

50,501
53,155

100,435
104,628

During the same three years the number of pensioners placed in
homes for aged was: 1926-27, 5,451; 1927-28, 5601; 1928-29, 5,723.
According to the Danish census of 1925 the population of Denmark
was at that time 3,435,000. If the population in 1929 be estimated, in
round figures, at 3,500,000, the old-age pensioners formed approxi­
mately 2.84 per cent of the entire population in that year.
The year 1928-29 is the last year for which statistics are available.
It is also the only one of the three years mentioned during which
pensions were distributed according to the law of July 1,1927. Dur­
ing the preceding year, 1927-28, pensions were distributed for several
months according to the law of August 7, 1922, and later according
to the law of July 1, 1927, and during the year 1926-27, entirely
according to the law of August 7,1922.
A comparison, therefore, between the number of pensioners in the
two years 1926-27 and 1928-29 shows how the two laws of August 7,
1922, and July 1, 1927, operated. In the year 1926-27 there were
5,167 more pensions than in 1928-29. This decrease was due to the
fact that a number of persons with small private incomes who, under
the law of August 7, 1922, were entitled to old-age pensions were
eliminated from the list of pensioners by the law of July 1,1927.

183

DENMARK

Amount paid in benefits.—The following amounts were expended
in Denmark for old-age pensions:
Kroner

1923-2 4
1924-25
1925-26
1926-27
1927-28
1928-2 9

72,000,000
74,300,000
73,000,000
66,900,000
61,600,000
____________________________ 59,400,000

($19,296,000)
($19,912,400)
($19, 564,000)
($17,929,200)
($16,508,800)
($15,919,200)

Since 1924-25 the public expenditures for old-age pensions hare
steadily decreased. This is in part due to the fact that the Danish
community was suffering from the economic crisis which had swept
the country prior to 1923, the ill effects of which showed themselves
during the following years until normalcy was reached, about 1926.
The material decrease in expenditures during the last two years is
due, of course, to the law of July 1,1927.
The following table shows the expenditures by the municipalities
and by the State during the years ending March 31,1927, 1928, and
1929:
T abus 2 8 . — Expenditures by municipalities and State under Danish old-age

pension system during years ending March 81,1927, 1928, and 1929
[Conversions into United States currency on basis of krone=26.8 cents]
Amount of expenditure in-

Source of contribution

1926-27
Danish
currency

United
States
currency

1927-28
Danish
currency

United
States
currency

1928-29
Danish
currency

United
States
currency

Kroner
Kroner
Kroner
Municipalities________ ____ 26,000,000 $6,968,000 24.200.000 $6,485,600 25,000,000
State_____________________ 40,900,000 10,961,200 37.400.000 10,023,200 34,400,000

$6,700,000
9,219,200

Total__________. . . . . _ 66,900,000 17,929,200 61,600,000 16,508,800 59,400,000

15,919,200

The State contributions mentioned in the above table are the
amounts received by the municipalities from the Minister of Home
Affairs during the fiscal year and are amounts due from the State
for seven-twelfths of the municipalities’ total expenditures during
the previous year.
There are no statistics available regarding the actual cost of ad­
ministration of the old-age pension law, but the cost is quite negli­
gible. A machinery for the administration of other social insurance
laws, such as those providing for sickness, invalidity, and unemploy­
ment benefits, and workmen’s compensation, exists in all parts of
Denmark, on which the administration of the old-age pension law
also devolves.

Changes in Old-Age Pension Legislation Contemplated by
Danish Parliament
The Minister for Home Affairs has recently announced that a bill
for the codification and reform of all Danish social law will be

184

PENSION'S AND INSURANCE IN FOREIGN COUNTRIES

introduced in Parliament during the present session, which began
on October 1, 1930. The contemplated bill contains the proposal
that invalidity and sick benefits, workmen’s compensation benefits,
and old-age pensions be distributed and administered under one law
and not under separate laws as heretofore. Under the proposed sys­
tem the rates of State and municipal contributions would be
increased and certain additional taxes would be imposed on private
persons. The expenses under the proposed social reform bill, it is
estimated, would amount to 187,000,000 kroner ($50,116,000), as
against 160,000,000 kroner ($42,880,000) under the present laws. Of
the 187,000,000 kroner, the State would contribute 100,000,000 kroner
and the municipalities 75,000,000 kroner, and employers’ additional
taxes 12,000,000 kroner. At present the contribution of the State is
about 73,000,000 kroner per annum and the contribution of the
municipalities 88,000,000 kroner per annum.
Whether or not the proposed reform bill will become law de­
pends on the attitude of the Upper House of the Danish Parliament
(Landstinget). It is probable that both houses will pass the social
reform bill, with some modifications, and it is expected that oldage pensions will be increased.
S o u r c e s f o r D e n m a r k : Lov (Nr. 347— 1922) Till®gs-Bekendtg0relse til Indenrigsmin*
isteriets Bekendtg0relse af 13 July 1922 vedr0rende Udbetaling a f ekstraordinaer Arbejdsl0shedsunderst0ttelse i Henhold til Lov Nr. 529 af 22 December 1921 m. v . ; Lov. (Nr.
134— 1927) om Aldersente, den 1 Juli 1927, and reports of Danish Social Insurance Office.

France
By

A lfbed

D.

Cam eeon,

American Consul, Paris

Retirement for invalidity and old age has been provided in
France for many years through the institution of various insurance
funds serving different classes of workers and special groups. The
earliest of these funds was the pension and retirement fund for
registered French seamen which was established about 1673. The
funds for special classes of workers include, in addition to seamen,
railway employees and miners, while general funds include the
National Old-Age Retirement Fund—a voluntary fund established
in 1850 in which any citizen may purchase an annuity—the Work­
men’s and Peasants’ Fund established in 1910, and the noncontribu­
tory pension system established in 1905 which provided either pen­
sion or asylum for every French citizen who was without adequate
resources and unable to work. Private pension systems of all kinds
inaugurated by employers, employees, trade-unions, or other groups
have been subject, also, to State regulation through a series of laws
and decrees. The comprehensive social insurance law which became
effective July 1, 1930, provides for the eventual unification of these
different systems while utilizing to some extent the machinery which
has been developed for their administration.
Seamen’s Insurance System
A naval invalid’s fund for all French registered seamen, including
officers, was established as early as 1673. By the law of January 1,
1930, the retirement fund was separated from the special fund for
premature invalidity; a second retirement fund was set up for doc­
tors, cooks, and stewards; and the fund for premature invalidity, in­
augurated in 1905 for registered seamen only, was extended to cover
the insured under both of the retirement funds.
The three funds are administered by the National Disabled Sea­
men’s Institution, which also manages two other special funds (warprize fund and seamen’s deposit fund) and numerous other services
connected with the welfare of both naval and merchant seamen.
The institution was granted, on January 1, 1930, civil personality
and fiscal autonomy. It ceased to be part of the Ministry of Mer­
chant Marine and was placed under the immediate supervision of
a committee of 30 members, of whom 10 represent the Government
and Parliament, 10 the shipowners, and 10 the insured persons.
The management of the institution draws up annually the pro­
posed budget of each fund and service, accompanied by forecaste of
receipts and expenditures of the insurance funds for the next 30
years. The committee adopts this series of budgets, with such
modifications as it deems advisable and possible, and presents it to
the ministerial Departments of Merchant Marine and Treasury.
185

186

PENSION’S AND INSURANCE IN FOREIGN COUNTRIES

When these departments reach an agreement with each other and
with the committee the series of budgets is published as a presi­
dential decree countersigned by the two ministers.
The revised budget for 1930 shows that slightly more than twothirds of the management expenses are met by contributions from
the three insurance funds. The remainder comes principally from
fees for temporary fishing concessions and the sale of crew-list
forms.
The basic law relating to the institution and its various funds is
that of July 14, 1908, which codifies all previous laws on the sub­
ject. This has since been amended by a number of temporary meas­
ures and by two recent pieces of permanent legislation—the law of
January 1, 1930, and article 107 of the law of April 16, 1930.
Permanent regulations, published in the form of presidential de­
crees or departmental orders, have not been codified. Most of them
are obsolete and have been replaced, for the time being, by a circular
instruction dated January 13, 1930.
Registered Seamen’s Fund

This pension and retirement fund was established for the benefit of
French registered seamen in 1673 and has since been continued with­
out interruption. All registered seamen of French nationality are
members and eventual beneficiaries.
While it is nominally an insurance plan, the combined contribu­
tions of employers and employees met only one-sixth of the expenses
in 1930, and will form continually smaller proportions in subsequent
years.
Contributions.—Seamen of French nationality employed on ocean­
going vessels and in distant fishing and those signed on by the
month or by the voyage on coastwise trading vessels are required to
contribute 5 per cent of their combined wages and profits. The
employers5 contribution is seven-tenths of the employees’ contribution? or 3.5 per cent of wages and profits. Employers are required to
pay in both contributions, or 8.5 per cent, in the case of seamen of
foreign nationality.
Because of the difficulty in calculating real wages and profits, the
seamen employed on a profit-sharing basis on vessels engaged in
coastwise trade, in inshore or deep-sea fishing, or on pilot vessels
contribute fixed sums according to the class of employment. These
sums vary from 4.80 francs (18.81 cents22) a month for cabin boys
and apprentices to 57 francs ($2.23) a month for masters. The em­
ployers’ contribution is seven-tenths of the employees’ contribution,
plus both employers’ and employees’ contributions for foreign sea­
men.
Benefits.—Since the 1908 schedule will be in effect to some extent
for many years to come, it may be mentioned in passing. The oldage benefit, for persons retiring at or after 50 years of age and after
300 months’ service, was from 3,600 francs ($141.12) to 7,200 francs
($282.24) per annum, the seamen being divided into six classes for
this purpose. The minimum benefit is payable to ordinary seamen
* Conversions into United States currency on basis of franc equal 3.92 cents.

FRANCE

187

and the maximum to masters of ocean-going vessels and to first en­
gineers. These full benefits under the law of July 14, 1908, as
amended to April, 1930, are retained as the basic or fixed element
of calculation under the new law of 1930.
A seaman retiring under the law of 1930, after attaining the age
of 50 years and after service of 300 months, draws supplementary
benefits (granted by the law of January 1, 1930) for service in 1930
and subsequent years. When these supplements have come into
full effect an ordinary seaman retired after 300 months5 service at
an average annual wage of 9,000 francs ($352.80) will receive a sup­
plementary benefit of 1,200 francs ($47.04); a master in the mer­
cantile marine whose average salary was 25,000 francs ($980) a sup­
plement of 2,830 francs ($110.94) a year; and a master of an ocean­
going vessel whose average salary was 36,000 francs ($1,411.20) a
supplement of 5,580 francs ($218.74) a year.
Proportional benefits may be obtained upon reaching the age of
50 years, with service of 180 months or more, being such proportion
of the full basic benefit as the number of full months’ service bears
to 300. Supplements accrue for such portion of the service as is
accomplished in and after 1930.
Proportional benefits, after service of 180 months or more, and
without regard to age, are payable from this fund to insured per­
sons who are absolutely and definitely incapacitated for continuing
the calling of seaman. Supplements accrue for service in and after
1930. This is distinct and separate from the Seamen’s Welfare Fund
benefits, but the benefits from the two funds may accrue to the same
person if the incapacity results from accident or illness in line of
duty.
In addition to the basic and supplemental benefits, which are
straight insurance features, there are supplemental allowances
amounting to 300 francs ($11.76) a year for each child under 16
years of age.
Widows and orphans (together, if both survive) are entitled to
one-half of the benefit which the deceased received, or to which he
would have been entitled if he had reached the age of 50 years. The
widow’s benefit ceases upon remarriage or death, and that of the
children upon reaching the age of 16 years.
Another service maintained by this fund, but without insurance or
actuarial features, is the granting of fixed pensions of 460 francs
($18.03) a year to needy widows (not entitled to insurance pensions)
of seamen who die at sea, regardless of length of service, or who die
either on land or at sea after 180 months of service. Variable pen­
sions, in such amounts as are justified by circumstances and by com­
parison with insurance benefits, are granted to such former merchant
or naval seamen, or to their widows, orphans, or aged parents as
are found to be in dire need.
Statistics of operation.—The number of insured under this fund,
being the average number of French registered seamen during the
current year, is about 170,000.
Beneficiaries, other than the insured, included in 1930,7,500 widows
and orphans receiving fixed pensions of 460 francs ($18.03) a year,
and 12,000 noninsurea seamen or relatives receiving varying amounts
83360°—32------13

188

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

of aid, averaging 103 francs ($4.04) a year. The insured beneficiaries
numbered 59,800 in 1930, and drew pensions averaging 3,287 francs
($128.85). The budget does not distinguish between those drawing
full benefits and those retired on proportional pensions.
Receipts and expenditures balance in 1930 at 220,790,000 francs
($8,654,968). The share of this fund in the administrative expenses
of the institution is 2,103,715 francs ($82,466). This is slightly less
than 1 per cent of the benefits expended and reserves set aside dur­
ing the year, and an average of $1.04 per beneficiary (insured or
uninsured) or of 48 cents per contributing worker.
T able

2 9 .—Receipts and expenditures of French Registered Seamen’s Fund,

mo

[Conversions into United States currency on basis of franc** 3.92 cents]
Receipts
Item

French
currency

United
States
currency

Francs
Contributions of seamen
and shipowners.............. 35,500,000 $1,391,600
Fees imposed upon owners
of pleasure boats and li­
360,000
14,112
censed carriers........... . . .
3.155.000
Interest on reserves...........
123,676
Funds created by article 59
3.280.000
128,576
of law of Dec. 27,1927......
State subsidy..................... 178,495,000 6,997,004
Total........................ 220,790,000 8,654,968

Expenditures
Item

French
currency

United
States
currency

Francs
Pensions............................ 196,557,000 $7,705,034
48,608
1.240.000
Renewable aid...................
Widows’ benefits...............
4.344.000
170,285
11,760
300,000
Refunds on deposits..........
Addition to reserves.......... 16,245,285
636,815
Share of fund in expenses
of administration............
2,103,715
82,466
Total........................ 220,790,000 8,654,968

Cooks’ and Stewards* Fund

Prior to the law of January 1, 1930, the unregistered personnel
of French vessels, notably ships’ doctors, cooks, stewards, and other
employees not directly engaged in navigation, were required to belong
to the National Pension Fund. They are now included in the general
system of seamen’s insurance, but under a special autonomous fund.
Only persons of French nationality may be members of this fund.
Contributions.—Contributions by employers and employees are on
the same basis as for registered seamen.
Benefits.—Basic and supplementary benefits are calculated in the
same manner as those for registered seamen, but the basic benefit
is somewhat less, varying from 3,100 francs ($121.46) a year for
unskilled help to 5,600 francs ($219.41) a year for pursers and
doctors.
Statistics of operation.—The insured number about 36,000. There
will be few beneficiaries at the end of 1930, first year of the law’s
operation, and their pensions, payable for account of the calendar
year 1930, are estimated at only 100,000 francs ($3,918).
The budget for 1930 balances at 6,750,000 francs ($264,465).
Nearly two-thirds of the receipts come from employers’ and em­
ployees’ contributions. Ninety-four per cent of the expenditures go
to the building up of reserves and 1.4 per cent to the institution as
this fund’s share in the administrative expenses.

189

PRANCE

T a b le 3 0 . —Receipts and expenditures of French Cooks* and Stewards’ Pension

Fund, 1930
[Conversions into United States currency on basis of franc« 3.92 cents]
Receipts
Item

French cur­ United
States
rency
currency

11

Francs
Contributions of employees
and shipowners.............. | 4,250,000
Interest on reserves.............
State subsidy...................... 2,500,000
Total.........................

6,750,000

264,600

Expenditures
Item

French cur­ United
States
rency
currency

Pensions.............................
Renewable aid....................
Share of fund in expenses of
administration.................
Addition to reserves...........

Francs
100,000
20,000

$3,920
784

95,000
6,535,000

3,724
256,172

Total.........................

6,750,000

264,600

Seamen’s Welfare Fund

The principle of this fund was adopted in 1905, but the fund was
given separate identity by the law of January 1,1930. Its members
are those of the two preceding funds, averaging, during 1930, some
206,000 persons.
Contributions.—Resources are derived from employees’ contribu­
tions of 1 per cent of wages and profits, and employers’ contributions
amounting to 4 per cent.
Benefits.—Benefits are granted for permanent incapacity resulting
from accident or illness in line of duty; to widows and orphans in
case of death following such accident or illness; to aged parents of
the decedents; to seamen or their dependent relatives in case of
shipwreck; to temporarily incapacitated seamen during a period of
four months from the date of accident, illness, or shipwreck.
Statistics of operation.—The budget of this fund tor 1930 balances
at 36,891,000 francs ($12445,390). The State contributed about onethird of the receipts. Overhead expense was estimated at less than
1 per cent of total expenditures.
T a b le 3 1 . —Receipts and expenditures of French Seamen's Welfare Fund, 1930
[Conversions into United States currency on basis of franc=3.92 cents]
Receipts
Item

French
currency

Francs
Contributions of seamen
and shipowners................ 16,000,000
Reserved from the transac­
tions of the marine______ 4.500.000
Interest on reserves............. 3.400.000
Fund created by article 59
of law of Dec. 27, 1927___
820,000
State subsidy...................... 12,171,000

United
States
currency

$627,200
176,400
133,280
32,144
477,103

Total......................... 36,891,000 1,446,127

Expenditures
Item

French
currency

United
States
currency

Francs
Pensions.............................. 30,130,000 $1,181,096
Daily benefits..................... 1.150.000
45,080
Renewable aid.................... 1.100.000
43,120
Indemnity for loss of per­
sonal effects.....................
200,000
7,840
Indemnity for shipwreck...
10,584
270.000
Share of fund in expenses of
administration.................
12,544
320.000
Addition to reserves............ 3,721,000
145,863
Total................... . . . . 36,891,000 1,446,127

190

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Voluntary Insurance
The National Old-Age Retirement Fund (Caisse Nationale des
Retraites pour la VieUlesse) was established by the law of June 18,
1850, amended by laws of July 20,1886, and March 8, 1928.
Coverage of System

According to the terms of the law, any person residing in France
may purchase annuities from the fund, which is a semiautonomous
subsidiary of the Treasury. Residents who are not French citizens
or subjects may not, however, participate in any of the insurance
features which are not covered by their own premium payments.
Type of Law

The system set up by this law is a straight insurance system. If
the annuitant alienates or abandons the capital to the fund, the bene­
fits are restricted to life annuities. If he reserves the capital, the
amount of the annuities is somewhat smaller, but the premiums
actually paid in are reimbursed to his estate without interest.
The great majority of annuitants take advantage of the law of
July 20, 1886, which allows them to make premium payments at
any time they see fit, and in any amount. The other types of annui­
ties, authorized by the law of March 8, 1928, have not yet become
popular, although it seems possible that they may be responsible
tor the extraordinary increase in the total number of annuitants
since 1928.
Contributions and Benefits

Contributions are in any amount from 3 francs (11.7 cents) up­
wards, and may be made by the beneficiary himself or by any other
person. Contributions are impersonal, except that in the case of
reserved capital the reservation is in favor of the beneficiaries
designated by the annuitant.
Yearly benefits may not exceed 30,000 francs ($1,176) to any
individual annuitant under all of the laws in force, of which not
more than 6,000 francs ($235.20) is free of stamp and registry taxes.
Under the law of July 20, 1886, the maximum annuity is 6,000
francs ($235.20).
At the time of paying the premium the annuitant may ask for the
annuities to begin at any age between 50 and 65 years. He may,
upon the approach of the age he has chosen, postpone his annuities
to another age; or, if he desires that the annuities begin at some
earlier age than that chosen originally, this may be done provided
that the new age chosen be not less than 50.
Life insurance purchased from the National Life Insurance Fund
(Caisse Nationale d*Assurance en Cos de Deces) may be transformed
into annuities under the National Old-Age Retirement Fund at the
request of the insured.
Some of the examples given in the fund’s announcement may be
regarded as typical:
What would be the single premium payable, with abandonment o f the pre­
mium to the fund, by a father on the head of his child aged 9 years so that

FRANCE

191

the child might, npon attaining the age o f 60, receive a life annuity o f 4,000
francs ($156.80) under the law o f 1886?
The single premium is 60.71 per cent. The premium for 4,000 francs is 2,428
francs ($95.18).

Under the foregoing example the child becomes the annuitant. If
no other annuities be settled on him in the meantime he may pur­
chase on his own account 2,000 francs a year, making a total oi 6,000
francs, the maximum under this plan.
Immediate life annuity on one risk (law of March 8, 1928): What would be
the premium, abandoned to the fund, for an annuity of 1,000 francs ($89.20)
to an annuitant aged 70?
The premium in this case is 684.78 per cent. The annuity o f 1,000 francs
would cost 6,847.80 francs ($268.43).

It is the evident intention of the foregoing example, and of other
examples cited in favor of the “ immediate annuity on one risk,” that
persons who have reached the age of retirement will take advantage
of it. However, there is no age limit, the table citing all ages up to
102. If the capital (premium payments) be reserved, the cost per
unit (1 franc) of annuity is 22.5938 francs.
Immediate life annuity, reversible on a second risk (law of March 8, 1928):
What immediate life annuity could a person aged 65 buy with 30,000 francs
($784), capital abandoned, if his annuity is reversible at death upon another
person presently aged 60?
The premium for this type of annuity is 1,131.13 per cent. A payment of
20,000 francs would procure an annuity of 1,768 francs ($69.31).

In the following example with reserved capital the cost per unit
is 22.5938 francs.
Annuity in case of survival (law o f March 8, 1928): I f a person aged 35,
insurable after medical examination, wishes to buy for his mother aged 60
a life annuity o f 3,000 francs ($117.60), payable in case the insured should
die before the beneficiary, what premium would he have to pay?
One premium of 3,757.80 francs ($147.31), or annual premium o f 437.10
francs ($17.13).

The law of March 8, 1928, also provided combinations based upon
the principles of the law of July 20,1886 (first example cited above),
but not subject to its limitations regarding the age of the annuitant
and the amount of the annuity. These are, briefly, a contract for
the purchase of annuities to run, not from 50 to 65 years, but from
any age from 5 to 45 years after the payment of each premium;
and, secondly, a temporary contract for the purchase of a limited
number of annuities. This last form of contract is in the nature
of life insurance if the capital be reserved in such fashion as to
become payable only after death of the annuitant occurring before
the expiration of the contract; in this case, medical examination is
required. It is also of the nature of endowment insurance if the
capital be wholly reserved.
Additional benefits.—Annuitants, either French or foreign, may
have their annuities paid to them at any age if they become, through
accident or premature infirmity, totally incapacitated for work. The
annuity is not that which would normally become due at the age
of 50 or more, but that which would have become due for the age
when infirmity occurred if the contract had provided for payments
from that age.

192

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

French annuitants who are worthy and indigent may, upon reach­
ing the age when their annuities commence to run, have them in­
creased to a certain extent, not to exceed the trebling of the annuity.
This is a substitute for the noncontributory pensions provided for by
the law of 1905.2
3
Adm inistration

The administration of the law is supervised by a committee of 22
members, of whom 4 are elected by Parliament from among its mem­
bers, 2 are selected from the State council, 10 represent labor organi­
zations and other private interests, and 6 are national officials ex
officio. The committee reports annually to the President of the
Republic through the Ministry of Labor.
The headquarters staff of the fund is not, however, employed by
the Ministry of. Labor. It is a part, variable according to require­
ments, of the personnel of the Government Deposit and Consignment
Fund (Gaisse des Depots et Consignations), a branch of the treasury
handling funds which, although in Government custody, are neither
receipts nor expenditures of the State itself.
Agents of the fund are virtually all receivers and disbursers of
public funds, notably tax collectors, Government fiscal agents, and
postmasters.
Statistics o f Operation

The number of annuitants at the end of 1930 somewhat exceeds
800,000, as compared with less than 400,000 at the end of 1913. The
number of prospective annuitants, who have already entered into
contracts but are not yet beneficiaries, could not be ascertained, but
it is learned that this number has increased rapidly as the result of
the amendments to the law in 1928.
The fund lost a large number of adherents by the transfer of
pensions built up by merchant seamen to the Registered Seamen’s
Pension Fund already described. The social insurance law, how­
ever, has so far had no effect on the fund’s activities. It seems
safe to conclude that the number of individual annuitants, present
and prospective, now greatly exceeds 1,000,000.
The number of annuitants at the end oi 1929 was about 765,000,
receiving about 230,000,000 francs ($9,016,000) in the course of the
year. This was an average of 300 irancs ($11.76) each, being only
one-twentieth of the authorized maximum. Of course, this result
is due principally to the fact that present annuitants made the larger
part of their payments before the old franc (valued at 19.3 cents)
had become substantially depreciated.
In addition to individual accounts, 2,771,611 premium payments
were made for the account of employees of public administrations,
being independent of and in addition to the regular retirement plan
based on deductions from salaries; 644,000 for the account of em­
ployees of private enterprises (led by department stores, public
utilities, banks, metallurgical enterprises, railways, and steamship
28See under “ Noncontributory pensions.*’

FRANCE

193

companies, in the order named); and about 1,317,000 for other ac­
counts, subdivided as follows:
Scholastic societies--------------------------------------------------------- 595,000
Mutual-aid societies_____________________________________ 58,000
State subsidies---------------------------------------------------------------- 653,000
Transfers from other funds_____________________________
11,000

It is believed by the administration of the fund that the social
insurance law, with its compulsory-retirement feature for lowsalaried employees, will gradually eliminate the group contracts.
However, a large proportion of these will doubtless be transformed
into individual contracts in the course of the next few years.
Receipts of the fund in 1927 were 1,723,276,000 francs ($67,552,419), of which 478,249,000 francs ($18,747,361) were not
premiums. Expenditures were 1,702,893,000 francs ($66,753,406), of
which 1,462,990,000 francs ($57,349,208) were for purchases of Gov­
ernment bonds.
The cost of administration was 16,584,000 francs ($650,093), being
3.5 per cent of net premiums, or 7.9 per cent of benefits and bonuses
paid. These are the figures for the calendar year 1927, the latest
available.
Railway Employees* Insurance System
Some arrangement for the retirement of superannuated railway
employees has been in existence almost as long as the railways them­
selves, that is to say, nearly a century. However, the first law form­
ally requiring the companies to provide retirement schemes for their
employees was that of 1869. This law was overhauled several times,
but was finally superseded by the laws of July 21, 1909, and Decem­
ber 28, 1911.
The law of 1909 obliged all trunk-line railway employees to join
a retirement fund. The funds already existing were not abolished,
but could not enroll new members. Funds formed prior to 1909 were
numerous, one of the trunk-line systems having no less than six
different funds for its various classes of personnel. The extinction
of these funds, by the death of the last beneficiary thereunder, may
not be expected for about 25 or 30 years from now.
The law of 1911 provided that the personnel not affiliated with
any fund prior to January 1,1911, was to be given retirement at the
rate of one-eightieth of the final base pay for each year of non­
affiliation and one-fiftieth for each year of affiliation.
The principles laid down in these laws are still in force, but the
figures have been amended several times. The distinctive principle,
peculiar to the railway retirement plan and requiring a heavy con­
tribution by the employers, is that the retired pay is based on the
average of the three “ best years5 or years of highest pay during the
5
entire service. While this is due specifically to the frequent occur­
rence, among locomotive engineers, of premature superannuation,
it is extended to all other employees as well for the sake of
uniformity.
Coverage of System

The retirement funds cover all persons receiving salaries or wages
from the railway companies. Male employees are obliged to affiliate

194

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

when, after the performance of military service, they have been
employed continuously by the company for a period of one year.
However, the employee who is refused by the army as unfit for
military service is not allowed to affiliate at an earlier date than
those of his military class accepted for service.
Female employees may not affiliate before attaining their legal
majority, 21 years of age.
Contributions

The employee’s contributions amount to 5 per cent of wages, the
entire first month’s wages after affiliation, and one-twelfth of every
increase in annual wages. The proportion of contribution to the
entire pay roll averages 3y2 per cent.
The companies’ contributions equal 15 per cent of the pay roll.
Benefits

Normal retirement benefit is due, in the case of locomotive en­
gineers and firemen, after 25 years’ service (or 15 years’ service in
that capacity alone), and upon reaching the age of 50; in the case
of all other employees, after 25 years’ service and on reaching the age
of 55. The company may retire any person upon his attaining this
minimum service for retirement purposes.
Invalidity benefit is granted after 15 years of service if the em­
ployee is found physically unfit for railway service by either the
company itself or a special medical committee.
When either the company or the committee finds that any em­
ployee has become incapacitated as the result of some incident or
accident in line of duty, he may be retired without regard to the
length of service.
An employee having served 15 years or more may leave the em­
ploy of the company without losing his right to retirement at the
age of 50 or 55, as the case may be. The benefit payable to him
does not begin to run until he has reached the required age, but
the principal to his credit bears interest in the meantime.
The normal benefit is one-half of the average pay of the three
highest-paid years, but not less than one-fiftieth of the average
annual wage for each year of service.
An employee leaving the company before 15 years of service is
reimbursed for his contributions, plus accrued interest.
The minimum normal benefit is, with unimportant exceptions,
5.000 francs ($196) a year. For persons drawing average pay of
40.000 francs ($1,568) or less, the maximum is three-fourths of the
average salary during the three best years. There is a sliding
scale, in descending proportion of average pay, for persons who
have earned more than 40,000 francs a year on an average, during
the three best years.
Keceipt of invalidity or old-age benefit granted by the railways
does not bar receipt of any benefits to which the employees may be­
come entitled by reason of the law of April 8, 1898, concerning
industrial accidents.

FBANCR

195

Widows* and orphans* "benefits.—One-half of the annual benefits
received or receivable by an employee reverts to the widow or orphans
or both. Orphans5benefits cease at the age of 18 years.
Widows may also receive their own active or retired pay, if they
themselves are present or former employees of the company.
A female employee of the company does not leave a benefit to her
husband, but her benefit is payable directly to the orphans.
Administration

Each of the seven trunk-line railways, as well as each of the sec­
ondary systems, has its own pension fund administration, composed
of 10 members, responsible to the Minister of Public Works to whom
it renders an annual statement and a detailed report of operations
over 5-year periods.
Each fund is autonomous, except that each purchase or sale of
assets held as investments must be specifically approved by the
Minister of Public Works.
The personnel of each fund is paid by the fund itself. The com­
panies furnish free of charge the necessary office room. They also
furnish such services as handling receipts and disbursements at points
where the pension-fund activities are not sufficiently developed to
warrant the maintenance of the fund’s own personnel.
Statistics of Operation

The number of railway employees actually in service, and obliga­
torily affiliated to the pension funds, is about 446,000. The number
of individual pensions paid is about 165,000, to which should be
added 5,000 pensions paid from funds set up prior to the present
law.
During 1928 the combined receipts of the pension funds were
1.500.647.000 francs ($58,825,362), while their disbursements were
719.133.000 francs ($28,190,014) for pensions and 29,000,000 francs
($1?
136,800) for overhead. The overhead cost was about $2.50 per
capita.
Invested reserves increased from 6,144,000,000 francs ($240,844,800) to 6,880,000,000 francs ($269,696,000) during the year 1928.
On the face of the annual nnancial reports of the pension funds, no
increase in the amount of contributions by the companies will be
needed for some years to come. However, any general increase in the
wages of railway employees, or any sharp decrease in the interest
rates .on the funds’ present investments, would undoubtedly call for
upward revision of the companies’ contributions.
Miners’ Insurance System
By the law of June 29, 1894, miners and quarrymen were obliga­
torily insured in the National Old-Age Retirement Fund, the retire­
ment and invalidity annuities being purchased by means of contri­
butions amounting to 4 per cent of the wages or of such part of
the wages as did not exceed 5,000 francs ($965) a year. The em­
ployers could, at their option, require the workmen to bear not more
than one-hali of the total contribution; they might also, if they

196

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

wished to increase the annuities payable to their retired personnel,
make additional voluntary contributions.
This legislation was replaced by the law of February 25, 1914,
instituting an autonomous fund for miners5pensions.
Coverage of System

All workmen in mines and quarries situated in France and certain
delegates of the management and of the personnel are members of
the pension fund, but foreign workmen are excluded from such
part of the benefits as accrue from the State’s contributions unless
there be a treaty of reciprocity with their own countries. Treaties
of reciprocity have been negotiated with Belgium, Italy, and Poland,
but that with the last-named country has not yet been ratified by
the French Parliament.
Contributions

The total contributions by employers and employees amount to 11
per cent of the wages. The entire schedule of contributions is as
follows:
Insurance fu n d :
Per cent
Miners under 30 years old------------------------------------------2 .5
4.0
Miners over 30 years old--------------------------------------------Special fund:
Miners under 30 years old------------------------------------------8.5
Miners over 30 years old----------------------------------------------7.0
State’s contribution----------------------------------------------------4.5

Benefits

The basic benefits consist of a pension of 5,000 francs ($196) a year
to retired miners, increased by 60 francs ($2.35) for each year of
service in excess of 30 performed before attainment of age 55; pro­
portional retirement pensions to miners who have more than 15 but
less than 30 years of service (a year being not less than 264 workingdays); monthly invalidity benefits of 300 francs ($11.76) for tem­
porary disability, or permanent invalidity pensions of 3,600 francs
($14L12) a year xor prolonged invalidity; and fractional benefits to
widows and orphans.
That part of the benefit paid from the insurance fund is pure
insurance, on an actuarial basis, similar to that which can be pur­
chased from the National Old-Age Retirement Fund. The capital­
ized premiums are credited to individual accounts at their actuarial
value, regardless of the length of service of the insured. The part
paid from the special fund, including the contributions by the State,
is reserved exclusively to workmen with 15 or more years5service.
A miner who has received, during six consecutive months, medical
assistance from his aid society and who, at the expiration of this
period, is incapacitated to the extent of two-thirds may receive cer­
tain benefits if his total service has been 2,640 days (10 years) in­
cluding absence for sickness or injury, of which not less than 500
actual working days must have been in the two years preceding the
beginning of his illness or accident. These benefits are as follows:
(1) During the five years after expiration of the sixth month of

FRANCE

197

illness, a monthly allotment of 300 francs ($11.76), paid by the aid
society subject to reimbursement from the fund to the extent of 230
francs ($9.02); and thereafter if the beneficiary has not attained
the age of 55 years, an annual pension of 3,600 francs ($141.12) paid
entirely by the special fund. These payments are not payable in
addition to pensions granted under the law of 1898 concerning acci­
dents, nor in addition to military pensions. They are not made to
persons who become infirm through their own intentional or willful
fault or neglect, nor to those who became ill or injured while doing
some unlawful act, such as a crime or misdemeanor.
*
Widows’ and orphans'* benefits.—Orphans aged less than 16 years
at the time of the father’s death are granted, in case the miner has
served at least 15 years, annuities amounting to 200 francs ($7.84) a
year for one orphan, 250 francs ($9.80) for two, and 300 francs
($11.76) for three or more orphans. In addition, there is a small
allotment for the education of half or full orphans.
The widows of miners who were themselves receiving or entitled
to benefits are granted annuities varying from 750 francs ($29.40)
to 2,500 francs ($98) a year.
Administration

The fund is administered by a council of 18 members—6 represent­
ing the employers, 6 representing the insured, and 6 representing
the State. The fund is entirely autonomous, but its council is re­
sponsible to the Ministry of Labor for its actions.
Statistics of Operation

The number of miners and quarrymen fluctuates considerably, not
only year by year but season by season, inasmuch as many miners
have a second occupation in odd seasons of the year. The normal
number of employees in French mining and quarrying enterprises
is about 330,000, but the number of workmen making contributions
in 1929 was 425,000. The total number of individual accounts on the
books of the fund is nearly 1,100,000.
Persons receiving benefits in 1929 were as follows:
Number of
pensioners

Insurance fund, old age---------------------------------------------------------------------- 37,677
160
Insurance fund, invalidity------------------------------------------------------------------Special fund, increased annuities---------------------------------------------------------- 80,988
Special fund, invalidity---------------------------------------------------------------------171
Monthly allotments, invalidity------------------------------------------------------------811
Monthly allotments, orphans-------------------------------------------------------------- 4,150

It would be inaccurate to add all of these classes together, inas­
much as the majority of those receiving old-age pensions from the
insurance fund receive pensions from the special fund as well.
The average amount of insurance-fund benefits in the 16 years,
1914 to 1929, for retired workmen still living at the end of this
period, is shown in the table following. The first column should be
read in connection with the statistics of the special fund, which show
the average increases over the insurance-fund benefits at the end of
1929.

198

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

T a b le 3 2 . —Average pensions o f specified type granted during period 1914-1929

and during calendar ybar 1929 under French miners* insurance system
[Conversions into United States currency on basis of franc“ 3.92 cents]
1914-1929
Insurance fund
Type of benefit

1929

Special fund

French United
cur­ States
French United French United rency
cur­
cur­ States cur­ States
rency
cur­
cur­
rency rency rency rency

Francs
Old-age pensions:
After 30 years’ service........... - ..............................
166
132
After 15-29 years’ service.......................................
59
Less than 15 years’ service.....................................
Invalidity pensions......................................................
48
Pensions for widows of—
*
Miners with 30 years’ service__________________
Miners with 15-29 years’ service_______________

$6.51
5.17
2.31

Francs
Francs
314
4,906 $192.32
205
90.79
2,316

1.88 " 3, 424" 134.22"
2,536
1,237

68

115

$12.31
8.04
2.67
4.51

99.41
48.49

Total premium receipts of the miners’ pension fund in 1929 were
275,000,000 francs ($10,780,000), of which 32,000,000 francs
($1,256,400) was contributed by the State. With the addition of
interest and other receipts, the gross income was 394,000,000 francs
($15,444,800). Expenditures from both funds (insurance and spe­
cial) aggregated 251,000,000 francs ($9,839,200) or substantially less
than the premium receipts.
Available reports do not show the overhead cost of the institution.
Regulation of Private Pension Systems
Legislation of permanent character is to be found in the following
laws and decrees not relating to any particular category of workers
nor to any standard scheme of insurance but to private pension
systems of all sorts, whether managed by employers, employees,
trade-unions, mixed committees, or mutual-aid societies: The law or
December 27,1895, concerning the funds for pensions, aid, or savings
set up for the benefit of workmen or employees; the decree of Octo­
ber 14,1897, which is a general administrative order for enforcement
of that law; the law of April 1,1898, relative to mutual-aid societies;
and the decree of May 2, 1899 (amended by many subsequent de­
crees) , which is a general administrative order concerning the repre­
sentation of mutual-aid societies in the mutual-aid council.
The law of December 27, 1895, constituted a safeguard for the
workers by providing that the sums withheld from pay or contrib­
uted by employers should form a fund irrevocable by the employers
and not liable to attachment by creditors. The contributions were
to be deposited with the Government Deposit and Consignment
Fund, or transformed into annuities under the National Old-Age
Retirement Fund, or placed in autonomous funds authorized by the
Ministry of Finance and subject to its inspection.
The law of April 1, 1898, required mutual-aid societies to invest
the contributions, made by their members, with a view to building
up retirement pensions, in annuities of the National Old-Age
Retirement Fund.

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199

Under both of these laws, the contributions invested in annuities
might be placed under either individual or collective contracts.
Noncontributory Pension System2
4
The law of 1905, administered by departmental and municipal
authorities, provides for either pension or asylum for every French
citizen without adequate permanent resources and unable to earn
his living by work, either upon reaching the age of 70 or upon
becoming incapacitated through permanent infirmity or incurable
disease.
The number of persons affected by this legislation was, in 1929,
about 566.000, of whom only 59,000 were in institutions. The appro­
priation tor the State’s share of the pensions in 1930-31 was 324,999,000 francs ($12,739,960), under chapter 50 of the budget for the
Ministry of Labor. A like sum has been proposed for 1931-32
under chapter 35 of the budget for the Ministry of Public Health.
Application for Pension

Pensions are granted only upon individual application. The ap­
plicant must file papers which, with summary examination of the
case by the local authorities, will show—
(1) That he is more than 70 years old, or infirm or incurable
within the meaning of the law.
(2) The amount of contributory pension which he is drawing
under the social insurance law or its predecessor, the old-age retire­
ment law.
(3) The amount, if any, of direct taxes paid by him in the pre­
ceding year.
(4) The resources which, as a matter of common knowledge at­
tested by the mayor of the commune, are at his disposal annually.
(5) A complete list of the persons liable for his support undei
the Civil Code, with their addresses, occupations, and annual
resources.
(6) The manner in and the extent to which these persons dis­
charge this obligation, or the reasons why they do not discharge it;
this to be attested by the mayor.
One month before the first session of the municipal council in
each year the Welfare Office (Bureau de Bienfaisance) draws up the
list of applicants and advises the action to be taken with reference
to each. The applicant may not be put into a home for the aged
unless he expressly requests such action.
The list drawn up is voted upon by the municipal council by
secret vote in executive session. A copy of the list as voted is sent
to the prefect of the Department, while another copy remains on
file for 20 days in the city hall, where it is available to any inhabit­
ant or taxpayer of the commune who has reason to propose the addi­
tion of other names or the elimination of those unduly assisted.
The prefect has the same rights as an inhabitant or taxpayer of the
commune.
*Law of July 14, 1905, as amended.

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PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Disputed cases are referred to a committee in each canton ®which
must render a decision within eight days of the appeal to its juris­
diction by any competent party. A central committee of the Gov­
ernment at Paris decides finally any appeal from the cantonal
jurisdiction.
The pension runs from the date of application, if the application
be timely and acceptable.
Causes for Rejection or Diminution of Pension

The principal reason for rejection of pension applications is found
in article 205 of the Civil Code, which reads: * Children are re­
quired to support their father and mother or other ascendants who
are in need.’
This requirement is known as the “ dette alimentaire,” and this
debt, like other forms of debt, may be recovered in the civil courts
when the debtor is recalcitrant. Aged parents sometimes find the ap­
plication for a pension, with the attendant inquiries and publicity,
a safer and more expeditious means of making their children ful­
fill their obligations than a suit in the civil courts.
The amount of resources known to be available to the applicant
during the year is deducted from the amount of pension allowable.
Such of these resources as have been built up through the applicant’s
own savings, notably the contributory pension, are not deductible
unless they exceed 400 francs ($15.68) a year in ordinary cases or
600 francs ($23.52) a year in the case of a person who has reared
three children to the age of 16 years. The excess is deductible to
the extent of one-half. Thus, an applicant coming within the 400
francs limitation but possessing contributory pension resources of
800 francs, would have his noncontributory pension reduced by 200
francs, being one-half of the excess of 800 francs over 400 francs.
The noncontributory pension, plus the certain resources, may not
exceed 2,400 francs ($94.08) a year.
Fixed income from private charity is counted for one-half, with
no exemption at the base. Thus, an income of 800 francs a year
from private charity would reduce the pension by 400 francs a year.
Pension and income from charity combined may not exceed 2,400
francs a year.
Income from the work or personal efforts of an applicant aged
more than 70 years is not deductible from the pension nor is it in
itself a reason for denial of the pension application.
Amount and Payment of Pension

The pension is calculated at present on a monthly basis, and or­
dinarily must fall between 30 francs ($1.18) and 60 francs ($2.35) a
month, the exact figure being determined by the municipal council
and approved by the departmental council. If, for exceptional rea­
sons, such as living costs, the pension is set at a figure more than
60 francs ($2.35) but less than 80 francs ($3.14) a month, approval
of the central Government is necessary. When the Government is
willing to approve only a figure of 60 francs or less, any excess
• I. e., a group of communes or part of a large commune having a justice of the peace.

FBANOE

201

must be borne entirely by the local authorities. Similarly, if the
Government approves 80 francs a month but the local authorities
vote more than that figure, the excess must be met entirely out of the
local budgets.
The domicile of the pensioned person is the commune in which he
resided for 5 years or more immediately prior to invalidity or to the
attainment of the age of 70. If the pensioner had not resided in the
commune for 5 years but had lived for that length of time in the
Department, the domicile of the pensioner is held to be the De­
partment, and payment must be met out of the departmental budget.
If the 5 years5residence was distributed oyer more than one Depart­
ment, the national budget supports the entire pension.
Within the limits already mentioned, a fairly large share of the
cost of this system to communes and Departments is met by the
central Government.
Special Provisions

Since April, 1930, the aged or infirm requiring the special or
exclusive attention of another adult person may, if they do not desire
to go to a home or hospital, receive an additional pension equal to
the unit cost of hospitalization in the home or hospital which they
would be entitled to enter, depending upon the place of domicile
(municipal, departmental, or national) under the law of 1905.
Invalid or dependents’ pensions under the military pension law of
April, 1919, are not counted among the deductible resources of the
applicant.
The budget of 1930-31 provided a uniform increase of 20 francs
(78 cents) a month over the established pension rates (from 30
to 80 francs a month) for all pensioners under the law of 1905, this
increase to be borne entirely by the national budget.
Plans for Future

The basic pension and the national supplement will doubtless be
consolidated into a new unified system by the committee now engaged
in drawing up a new code of local finances.
Article 59 of the social insurance law provides that the insured
(whether under the new law or the prior retirement law merged
into it) benefiting by noncontributory insurance under the law of
1905, shall be given medical and pharmaceutical attention, 80 per cent
of the expense being borne by the social insurance funds and 20 per
cent by the authorities of the “ relief domicile.” This arrangement
will ultimately lighten the burden thrown by the law of 1905 on both
local and national budgets.
Workmen’s and Peasants5Insurance System
The law of April 5,1910, instituted a fund under the above title,
to which there was obligatory affiliation of wage earners or salaried
employees of commerce and industry whose annual wages did not
exceed 3,000 francs ($576). This limit was later increased to 10,000
francs by an amendment voted in 1922, this sum being roughly
equivalent to $400 on ia average during the last five years the fimd
n

202

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

was in existence (1925-1930). The accounts of the fund were trans­
ferred to the social insurance system on July 1,1930.
Optional affiliates of the fund were wage earners of the same
classes as the obligatory affiliates, but earning from 10,000 to 12,000
francs ($400 to $480) a year; artisans and other small employers
habitually working with only the members of their family and not
more than one employee; farm managers, tenant or share farmers,
small farmers, and farm hands; and the unsalaried wives or widows
of the insured, whether obligatory or optional.
Type of Law

This was a straight insurance law, of the life annuity type, based
on normal mortality tables and, as an inducement to affiliation, hav­
ing a fixed additional benefit covered by a bonus paid into the fund
by the State.
Contributions

Annual contributions were as follows: (1) By employees—males
9 francs (35 cents), females 6 francs (24 cents), and minors under
18 years of age 4.50 francs (18 cents); (2) by employers the same
rates; and (3) by the State, such sums as might be necessary to con­
stitute the additional benefits payable to the insured upon retirement.
Benefits

Benefits included : (1) Old-age benefit at the age of 60 years, being
the mathematical life annuity resulting from the contributions, plus
100 francs ($3.92) the annual bonus guaranteed by the State for
persons who had contributed for 30 years and a second annual bonus
of 10 francs (39 cents) if the insured has reared three or more chil­
dren; (2) a reduced annuity, payable at 55 years instead of 60, and
a proportionate bonus, at the rate of one-thirtieth of the normal
bonus for each year of actual contributions, provided in both cases
that the contributions have been paid for not less than 15 years; (3)
invalidity benefit, resulting from the anticipated liquidation of the
life annuities purchased up to the time of incurring invalidity, plus
the normal State bonus; and (4) widows’ and orphans’ benefits,
50 francs ($1.96) a month—for 3 months if there are no children,
for 4 months if there is one child, for 5 months if there are two
children, and for 6 months if there are three children under 16 years
of age.
Administration

The fund was administered by the Government Deposit and Con­
signment Fund, under the supervision of a council making annual
reports to the Ministry of Labor. Individual accounts were kept for
capitalization purposes, on the books of the National Old-Age Re­
tirement Fund.
The law also provided for five separate classes of autonomous
funds: (1) Mutual-aid societies, (2) departmental or regional pen­
sion funds, (3) employers’ association or trade-union funds, (4)
mutual guaranty funds of employers granting pensions to their

FRANCE

203

workmen, and (5) pension funds of professional societies. These
funds were required to purchase annuities calculated as life annuities
at age 65, and to publish frequent statements of their financial
condition.
Statistics of Operation

According to the Annuaire General de la France, 1925, which
seems to be the latest report giving detailed statistics concerning the
operation of this law, the number of persons known to be subject to
obligatory affiliation at the end of 1922 was 7,415,651. However,
during the calendar year 1922 only 1,561,833 cards of obligatory
insured were exchanged for new cards, as compared with 2,700,646
in 1913.
The same report points out that approximately 11,000,000 persons
were presumably subject to obligatory affiliation, while 6,000,000
could be optionally insured. The number of optionally insured was
577,283 at the end of 1917, and only 286,297 at the end of 1922.
The number of cards showing payment of contributions was
1,728,461 in 1922, and the amount of contributions received in that
year was 30,706,000 francs (about $2,500,000 at the exchange rates
then prevailing).
From 1922 to 1930 the number of insured steadily declined and it
became necessary, in order to incorporate the former insured in the
new social insurance system, for the State to assume a heavy finan­
cial burden, so as to revalorize the annuities purchased by present and
former adherents of the Workmen’s and Peasants’ Pension Fund.
General Social Insurance System
The social insurance law was published on April 5, 1928, and was
to have taken effect on February 5, 1930. However, at that date
the Government and Parliament had agreed not to transform the
workmen’s and peasants’ pension plan into the more elaborate social
insurance plan before July 1,1930, for deferred risks, and October 1,
1930, for current risks.
The necessity for amendment and postponement of the plan had
arisen from various reasons: (1) The agricultural interests, the med­
ical corps, and the mutual-aid societies protested against the provi­
sions affecting them, and the legitimacy of these protests was recog­
nized by Government and Parliament alike; (2) the financial re­
sponsibility of the State for the successful working of the plan was
not only vaguely defined but likely to be a greater burden than the
budget could bear without increasing rates of taxation; and (3) the
general administrative order, because it had to conform to the lan­
guage of the law itself, contained hundreds of complicated phrases
which could be simplified into clear and workable ideas only by
legislative overhauling.
Amendments, so far as they could be worked out in advance of
actual contact with concrete problems, were embodied in the law of
April 30,1930.
83360°—32------14

204

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

On November 18, 1930, the Minister of Labor announced to the
Senate that a number of new amendments, dictated by experience,
would soon be introduced as a Government bill.
Coverage of System

The system provides for the compulsory insurance of all resi­
dents of France who, being workers or earning an income from
their own efforts (other than agricultural tenants or owners who
are considered as employers), have annual remuneration or earned
income (including payments in kind) not exceeding 15,000 francs
($588). This limit is raised to 18,000 francs ($705.60) for persons
residing or employed in cities of more than 200,000 and certain spec­
ified industrial centers.
Voluntary insurance is open to the following classes: (1) Agri­
cultural workers not covered by compulsory insurance, intellectual
workers who are not wage earners, and in general all persons of
French nationality who live principally from the product of their
own efforts, are in good health, and aged less than 50 years; (2)
ersons formerly covered by compulsory insurance but whose salary
as passed the legal limit; (3) voluntarily insured persons whose
income is above the limit (but the continuance of such optional in­
surance is restricted to capitalization risks); (4) persons formerly
voluntarily insured under the Workmen’s and Peasants’ Pension
Fund; and (5) war veterans. There is also a special optional insur­
ance for the nonsalaried wives of salaried insured.
Persons excluded from the system are employees of the State, De­
partments, or communes, railway and street-car employees, miners
and quarrymen, and merchant seamen. Employees covered by spe­
cial institutions granting the benefits of social insurance2 are not
5
excluded but are provisionally excused from compliance with the
new law. These institutions must, however, prove within one year
from July 1, 1930, that their operations are fully coordinated with
the social insurance law, failing which their membership will be en­
rolled under the official insurance system.
Resident foreigners, who at the time of their application have had
a real and permanent residence in France and have been employed
regularly for at least three months, may be insured against all risks
excepting illness.

P

Contributions

The employer deducts the contribution of the insured from his
salary and affixes to a card, issued for the purpose, stamps represent­
ing the contributions of both employer and employee.
Large employers need not have their employees provided with
cards, but may pay both contributions by note. In such cases, if an
employee is discharged, he is given by tne employer a set of current
cards with all current stamps affixed. The employer then deducts
the amount of this duplicate payment (since payment has already
been made by note before affixing the stamps) from the next
payment.
8 See under “ Regulation of private pension systems.”
5

205

FRANCE

The insured are divided into five annual wage classes. The
classes and the annual rate of contributions (both employers’ and
employees’ contributions, each being one-half of the total) are:
T able 3 3 . — Yearly contributions under French social insurance system
[Conversions into United States currency on basis of franc=3.92 cents]
Annual pay
Salary class
French currency

Class 1_____ ___________ ________________
Class 2...............................................................
Class 3......................... ....................................
Class 4...............................................................
Class 5___________________ __________ ___

Francs
1-2,399
2,400-4,499
4,500-5,999
6,000-9,599
9,600 and over

United States
currency

$3.92-$94.04
94.08-176.36
176.40-235.17
235.20-376.28
376.32 and over

Rate of contribu­
tions per year
French United
States
currency currency
Francs
144
288
432
576
960

$5.64
11.29
16.93
22.58
37.63

The employer’s half of the basic contribution and the employee’s
half are lumped together in the primary funds formed for all
risks. However, one-half of the total basic contributions is retained
for capitalization purposes (deferred risks) while the other half
insures the current payments.
Invalidity risks are covered by the Augmentation and Solidarity
Fund, the principal resource or which is a special and additional
contribution by the employers. The amount, to be fixed annually
by decree, may not be less than one-third nor more than two-thirds
ox what the employer would have to pay for the account of insured
persons receiving a total annual remuneration of 18,000 francs
($705.60). It is applicable to all insured personnel earning more
than the limit for obligatory insurance—15,000 francs ($588) in
general or 18,000 francs ($705.60) for persons residing in large
cities or industrial centers—but less than 25,001 francs ($980).
Voluntary insurance, in amounts not exceeding limits to be
fixed by a decree, may be purchased by employers or employees
who desire greater benefits than those offered by the standard plan.
Benefits

Old-age benefits.—The old-age pension is paid normally at the
age of 60 years, on the basis of standard mortality and annuity
tables. During the transition period (60-65-year pensions), con­
tributions must have been made for at least five years before the
pension may be paid; thus, a person becoming insured in 1930 at
the age of 59 could not be retired before 1935.
Eeceipt of the pension may be postponed, under the same con­
ditions as under voluntary insurance. On the other hand, a reduced
annuity may be obtained as early as 55 years of age provided that
contributions have been made for a period of 25 years calculated
from the time the insured was 16 years old. War veterans are
exempted from this last requirement.
The full life annuity may not be less than 40 per cent of the average
annual basic wage for persons retiring at 60 or 65 years after making

206

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

at least 30 full years of contributions, covering at least 240 days’
labor each year. This pension is increased by 10 per cent for tht
insured who has reared three children to the age of 16, but if both
father and mother are entitled to life annuities, this 10 per cent is
added only to the larger of the two annuities.
For persons retired during the transition period before the lat
v
becomes fully effective, those years with contributions for a minimum
of 240 days are counted for one-thirtieth of the normal pension.
The minimum proportional pension is 600 francs ($23.52) a year.
Persons aged 60 to 65 at the time the law took effect, and subject
to the law, may come under the act by paying the total amount of the
annual premium for all risks for their class. After making con­
tributions for five years covering not less than 240 days each, they
become entitled to a pension of not less than 500 francs ($19.60)
a year.
The insured may request liquidation on either the alienated or the
reserved-capital plan of life annuities. In the former case he has two
additional options: (1) To use the capital to purchase land or house
or both, subject to the approval of his insurance fund; or (2) to
reserve such part of the capital as may be necessary to settle one-half
of his own annuity on surviving spouse aged not less than 55.
A separate system is set up for wage earners in agricultural and
forestry occupations whose earnings do not exceed those for the
different classes of workers in industry and commerce. Included
among those subject to insurance, in addition to regular farm or
forestry workers, are wage earners employed by rural artisans and
contractors for threshing and other agricultural operations; the
staffs of farmers’ associations, cooperative societies, and other agri­
cultural associations; and tenant farmers (metayers) who usually
work alone or with the help of members of tneir family, and who do
not own any part of the livestock at the time they enter into the
agreement. The owners of property thus rented are considered as
employers. The members of the family of a farmer who work with
him and for him regularly without receiving remuneration in cash
are not liable to compulsory insurance. The contribution, half of
which is paid by the insured and half by the employer, proprietor,
or tenant, consists of two parts, the contribution covering the risks
of sickness, maternity, and death amounting to 10 francs per month,
equally divided between the employer ana the insured, while the
contribution covering the old-age risk amounts to 2 per cent of the
basic wage. For the purpose of fixing the latter contribution agri­
cultural workers are divided into the same wage classes as workers
in commerce and industry. A special bonus fund administered by
the General Guaranty Fund covers the old-age risk. In order to
be eligible for the old-age benefit an insured person must have paid
his contributions for at least five years.
Invalidity benefits.—Eventual invalidity is considered as illness,
up to six months, as provisional invalidity for five years thereafter,
and as permanent invalidity if there is no recovery during these
periods.
Persons who become members of the fund before age 30 receive
not less than 40 per cent of the average annual salary. This rate is

FRANCE

207

increased, up to 50 per cent, by 1 per cent for each year of service
exceeding 30 years.
For persons who become members of the fund after age 30, the
basic rate of 40 per cent is reduced by one-thirtieth per year or
fraction of year between that age and the age at entrance. Six
years’ payments of not less than 240 days a year are necessary in
order to qualify under this clause.
In general, as a permanent measure, the insured must have been
affiliated to the social-insurance system for at least two years prior
to injury or sickness in order to claim invalidity benefits.
The person receiving permanent invalidity pension has his oldage annuity reduced to that payable at the age attained at time of
such permanent invalidity, so that both annuities are consolidated
into one pension.
Death benefits—A lump sum equal to 20 per cent of the average
annual wage is paid to the legal representatives of the insured imme­
diately after his death. The minimum payment is 1,000 francs
($39.20) and the maximum not more than two-thirds of the real
salary earned by the insured at the time of his death.
Current or “ Distribution9 Risks
9

The various benefits payable out of current funds, not held for
capitalization, are: Sickness, maternity, and maintenance of insur­
ance during unemployment. In addition, there are special provisions
for family charges, applying to all of these risks and to certain
deferred risks as well.
Flexible Provisions

In article 33 of the law are various provisions against failure of
any of the funds because of inadequate resources. In case of threat­
ened shortage of a temporary nature, advances may be made from the
general funds to the particular funds involved. In case of shortage
from permanent causes, such as a fall in the interest rates which the
funds can earn on their investments, adjustment may be made (1) by
reducing the benefits, either from one or from several or all of the
funds, in amounts not exceeding 20 per cent, or by rendering more
rigorous the conditions required for obtaining particular benefits, (2)
by increasing, in fractions not exceeding one-xourth in all, the rates
of employers’ and employees’ contributions.
There is also a general provision in article 12, paragraph 8, to the
effect that the total contributions, now calculated at 8 per cent of
the salaries subject to the law, shall be increased to 9 per cent on
April 1, 1934, and by one-eighth additional (it is understood that
this will work out to 10 per cent without a fraction, for the sake of
simplicity) on April 1, 1940.
Another provision of like import, which does not appear so clearly
in any particular phrase of the law but pervades the entire system,
is that the State’s contributions, when subject to violent fluctuations
from one year to another, may be#
reduced to perpetual annuities cov­
ered by uniform budget appropriations.

208

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Administration

The administration of the law, which was, by the original text of
1928, to have been placed in the hands of an autonomous office, is
entirely in the hands of the Ministry of Labor. This department
does not, however, handle the actual cash. Cash transactions are
made by the various local funds, the grouped reinsurance funds, the
central funds, and the section of the treasury known as deposit and
consignment office.
The insured may choose to affiliate with any one of a number of
primary funds operating in each department of France. These
funds (except those of labor organizations) may not retain the con­
tributions to be capitalized but only those for current risks.
Primary funds may be organized by any society of natural or legal
persons complying with the law of April 1, 1898, regulating societies
or associations in general; by professional syndicates or associations
thereof, regulated by the law of March 21, 1884; or by insurance
societies (mutual insurance companies) or agricultural mutual rein­
surance societies, regulated by the law of July 4, 1900. Such socie­
ties exist in all parts of France, but some of them are reluctant to take
up social insurance because of the amount of bookkeeping involved.
New primary funds, without any reference to existing institutions,
may be formed by a substantial number of insured, under regulations
published by the Ministry of Labor. Upon their formation, they
become subject to the law of April 1, 1898.
In addition to these optional primary funds there is a general
primary fund obligatorily set up in each department, to which are
affiliated all insured who have not chosen membership in some par­
ticular fund. The Departments of Seine and Seine-et-Oise com­
bined, forming the Paris industrial district, have one fund. For
the greater part these general primary funds are built around the
partly dormant funds of the workmen’s and peasants’ insurance
system, taking over their duties, personnel, and records.
All of these funds are subject to the approval of the Minister of
Labor before commencing their operations under the law. They,
like all of the higher funds, are endowed with civil personality, may
sue members or third parties or similar or higher funds, to be sued
by them. Like a person, they may become insolvent in case of short­
age of money, but unlike a person they may not be rehabilitated
after failure once their business has been liquidated. Funds and
their officers, managers, or employees may be revoked for cause.
Expenditures of primary funds for overhead, salaries, and all
other administrative purposes are limited to 3.5 per cent of the con­
tributions received by them.
A General Guaranty Fund provides for reinsurance and also for
supervision and control of the primary funds. The Augmentation
and Solidarity Fund provides for invalidity pensions, family charges,
and unemployment guarantee.
The annuity business, consisting of all capitalization other than
that for members of labor-organization funds, is conducted by the
National Old-Age Retirement Fund2 in a separate section of its
6
2 See under “ Voluntary insurance.”
8

FRANCE

209

establishment, the separation being made so that the experience of
the social insurance system, as distinguished from the general vol­
untary insurance system, may be available to Parliament each year
when considering appropriations for the department of labor.
The central administration consists of a bureau of the Ministry
of Labor, housed in a building which is the property of the State but
which is occupied mainly by the primary fund of Seine and Seineet-Oise.
Including the 86 departmental directors, the total permanent per­
sonnel of the bureau numbers 531, exclusively recruited from among
the war administrations in process of liquidation. There are also
1,854 temporary auxiliary employees, recruited among war pen­
sioned, recently pensioned civil employees desiring active work, and
similar sources not conflicting with the requirements of either public
or private enterprises for clerical help.
The present number of employees of the interdepartmental pri­
mary fund of Seine and Seine-et-Oise appears to be approximately
double that of the bureau, but this fund has probably more than
2,000,000 members.
The present number (December, 1930) of authorized local funds
is 795 distribution funds and 42 primary capitalization funds. The
distribution funds may be classified as follows:
Departmental funds____________________________________________ 86
Mutual-aid society funds----------------------------------------------------------- 510
Societies other than mutual aid_______________________________ 72
Miscellaneous___________________________________________________ 127
Total------------------------------------------------------------------------------- 795

Of the 42 primary capitalization funds, 29 are organized by unions
of mutual-aid societies (presumably these are funds of first rein­
surance of current risks as well), 10 by individual mutual-aid socie­
ties, and 3 by authorized labor organizations.
Statistics of Operation

The law is too new (having gone into effect on July 1, 1930, for
premium payments and on October 1, 1930, for the first indemnity
on account of current risks) to discuss logically its present
operation.
However, the obligatory recruitment of low-salaried employees
has been completed in a very satisfactory manner. The Minister of
Labor announced to the Senate on November 18, 1930, that, aside
from agricultural employees optionally insured, 8,217,636 persons
had become affiliated, of which 2,167,378 were in Seine and Seine-etOise. Additional applications, to the number of 800,000, had been
received up to November 9, on which it had been found impossible
to grant immediate affiliation, although some of these may be
admitted after investigation.
The number of agricultural employees obligatorily insured was
about 400,000, included in the total affiliations of more than 8,000,000
above mentioned. Those optionally insured were about 260,000, not
included in the total.
The highest cost of administration is to be expected in the primary
funds, namely, 3.5 per cent of contributions. The reinsurance and

210

PENSIONS AND INSUEANOE IN FOREIGN COUNTRIES

general funds are expected to operate on a much more economical
basis, because of the large number of insured and the small number
of individual accounts they will have to open, since their accounts
are only with funds rather than with individuals.
The management of capitalized contributions will fall in perfectly
with the present administration of voluntary insurance. The volume
will be such that it ought to reduce the management cost below the
figure of 3.5 per cent of contributions reported by the Old-Age
Retirement Fund.
S o u r c e s f o e F r a n c e : Loi portant reorganisation des services d’assurance des marins
frangais (Journal Officiel, 3 janvier 1930) ; Loi du 16 avril 1930; M’inistfere de la Marne
Marchande, Circulaire et instruction pour l’application de la loi du 1 janvier 1930 portant
rGforme du regime des pensions des marins du commerce; Caisse des DSpdts et Consigna­
tions— Caisse Nationale des Retraites pour la Vieillesse, Rentes immSdiates, Rentes
diff6r€es viag&res, Rentes de survie viag&res, 1 juillet 1930; Caisse des Depdts et Con­
signations— Caisse Nationale d’Assurance en Cas de DScfcs, Assurance sur la vie, As­
surances de dotation, 1 juillet 1930; Loi du 21 juillet 1909; Loi com plian t les dispositions
de la loi du 21 juillet 1909, relative aux conditions de retraite du personnel des grands
r g s e a u x de chemins de fer d’intSrSt g€n6ral; Chemins de Fer de l’fitat, Statut des
retrains applicable & partir du 1 janvier 1929; Chemins de Fer de I’l&tat, Rgglement
concernant le personnel affilte au regime de retraites de 1911, Paris, 1929; Direction des
Chemins de Fer de l’lStat, Ordre du jour No. 2 (1930) ; Caisse Autonome de Retraites
des Ouvriers Mineurs, Lois, decrets, conventions Internationales et documents divers
r^latifs au regime de retraites des ouviers mineurs, Paris, 1929; Mlnistfcre du Travail,
Notice sur les assurances sociales, Paris, 1930; Ministfcre du Travail et de la Pr6voyance
Sociale, Les avantages de la loi des assurances sociales, Quelques exemples, Paris, 1930;
Code du Travail avec supplement, Librairie Dalloz, Paris; Colin, Codes et Lois, Paris,
1925; Annuaire GSnSral de la France, 1925; and Journal Officiel, issues of Nov. 23,
1926, Mar. 13, 1928, Oct. 10, 1929, Apr. 17, 1930, and Nov. 19, 1930.

Germany
By W illiam E. B eitz, American Consul, JBerlm, Germany, with the assistance of
I lse P eters and W olfgang B bueckmann

Wage Earners’ Insurance System
Wage earners5 invalidity and old-age insurance (InvaZidenversicherung) was established by the act of June 22, 1839, though with
very small benefit, which was somewhat increased by the act of July
13, 1899. Under the consolidated Federal social insurance laws
(Reichsversicherungsordnung) of July 19, 1911, certain deficiencies
of the system were eliminated and the scope ox insurance was ex­
tended to cover survivors; that is, widower, widow, and orphans.
After the inflation period the entire system was recodified by the act
of December 15,1924.
The prerequisite for wage earners with respect to this insurance
is that they engage in remunerative occupation. No minimum age
limit is set; neither is it of any importance whether the occupation
is a principal or subsidiary one.
Coverage of System

Invalidity and old-age insurance is compulsory for the following
classes of workers: (1) Laborers, journeymen, domestic servants;
(2) homeworkers; (3) crews of (German vessels employed in ocean
traffic and inland shipping, except the ship’s master, mates and engi­
neers, supercargo or purser and his assistants, and any employees in
similar superior or higher positions; and (4) assistants and appren­
tices in so far as they are not eligible for salaried employees’ old-age
insurance or are exempt therefrom under the law.
In addition, the Federal Minister of Labor may, in agreement
with the Federal Council, extend the coverage to include small
tradesmen and other tradespeople with no employees, or with only
one, covered by old-age and invalidity insurance.
Exemptions.—The following are exempt from the provisions of
the system: (1) Persons employed only to a limited extent, espe­
cially casual workers; (2) persons receiving free maintenance by
way of compensation; (3) invalids, or persons drawing benefit under
the invalidity and old-age insurance or widow’s benefit under the
salaried employees’ old-age insurance system; (4) all employees of
the Federal Government, States, local governments, and certain
other public establishments; and (5) any other persons to whom
equivalent invalidity and old-age and survivors’ benefit of some kind
is already assured.
211

212

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Contributions

Formerly, contributions, irrespective of actual financial require­
ments, were fixed at such high rates that they not only covered cur­
rent expenditures, but also permitted the accumulation of extensive
surpluses. The purpose of the system was to avoid subsequent in­
crease in contributions commensurate with the gradual swelling of
benefit payments.
The schedule of contributions in effect to-day came into force in
1927 and is calculated on the assessment basis (so-called “ Umlageverfahren,” i. e., allocation among the total membership of the sum
total of all estimated yearly expenditures including additions to re­
serves). These rates were expected to cover the average annual
expenditures for a 5-year period (until 1932), but the adverse eco­
nomic development of the last few years has upset all previous
calculations. The Federal Government pays a contribution to each
benefit amounting in 1929 to 72 marks ($17.15) 2 per annum for
7
invalidity and widow’s benefit, respectively, and 36 marks ($8.57) for
orphan’s benefit. Each contribution of an insured person covers a
claim to benefits for himself and his survivors.
The contributions, which are graduated according to a scale of
wage groups, are made by wage earners and employers in equal
shares, except as regards persons earning 6 marks ($1.43) or less
> r week. The contributions required for the latter are paid entirely
e
y the employer. The contributions are made by way of stamps
affixed to cards provided for that purpose, and canceled by the
employer. The stamps are purchased at the various post offices.
T able 3 4 . — W eekly contributions of specified wage groups in Germany
[Conversions into United States currency on basis of mark=*23.8 cents]
Weekly wages in speci­
fied group
Wage group
German
currency

Group I______________ ____________ _______ _____
Group I I - _____________________________________

Ornnp TTT _____________________________________

Group IV_________ __________-..................... ..........
Group V_______________________________________
Group VI______________________________________
Group VII_____________________________________

Marks
Up to 6
6-12
12-18
18-24
24-30
30-36
36

United
States
currency

Up to $1.43
$1.43- 2. 86
2.86-4.28
4.28- 5.71
5.71- 7.14
7.14- 8.57
8.57

Weekly contributions

German
currency
Marks
0.30
.60
.90
1.20
1.50
1.80
2.00

United
States
currency
Cents
7.1
14.3
21.4
28.6
35.7
42.8
47.6

The law permits certain classes of persons to participate in in­
validity and old-age insurance voluntarily; they must, however,
decide to do so prior to the age of 40 and must pay the whole amount
of the contributions, including the employer’s share. Such volun­
tary participants include: (a) Small tradespeople who as a rule
employ no wage earners liable to invalidity and old-age insurance,
or not more than two; and (&) persons exempted from liability
3 Conversions into United States currency on basis of mark equals 23.8 cents.
7

GERMANY

213

to insurance on account of their receiving free maintenance instead
of monetary compensation in that amount.
Furthermore, an insured person may continue to make contribu­
tions after having ceased to perform remunerative work, in which
case, also, he must pay the full amount of the contributions from
his own funds.
Benefits

Payment of benefits is contingent upon payment of a minimum
number of weekly contributions—200 if at least 100 weeks5 contri­
butions were made while the insured performed remunerative work
subject to invalidity and old-age insurance, and 500 in the case of
persons voluntarily insured.
Full calendar weeks, during which the insured is unable to work,
up to a total of one year, are considered as weeks of contribution
even though no contributions may have been made during that
period.
The benefits paid include invalidity, old-age, and survivors’ bene­
fits; in addition, the insured may be accorded free medical treat­
ment or cures in watering places or other health resorts.
Invalidity and old-age benefits.—The invalidity benefit is designed
to compensate the insured for loss of his working capacity. Hence
it is paid to any insured person, irrespective of age, who has be­
come an invalid on account of sickness or any other kind of ailment.
The term “ invalid ” is defined under the law to mean a person who
is unable to earn one-third of the wages habitually paid to physi­
cally sound persons of his class and o f similar training in the same
locality, for work performed in accordance with his strength and
ability and which can be reasonably expected of him in view of his
training and previous occupation.
If the invalidity is permanent, payment of benefit commences at
once; otherwise not until after 26 weeks. Until the invalidity bene­
fit falls due the insured is dependent upon benefit paid from the
health insurance funds.
Old-age benefits are paid to all persons having reached the age of
65, whether or not they are incapacitated. These benefits are paid in
addition to the wages, if any, of the recipients, but are not increased
if the insured subsequently become invalids.
If the beneficiary has any children, the invalidity or old-age bene­
fit is increased by a children’s allowance amounting to 120 marks
($28.56) a year for each child until it reaches the age of 15 years (21
years if it is receiving school or trade education).
Survivors' benefits.—Survivors’ benefit is paid if the deceased at
the time of his death has made the requisite minimum number of
weekly contributions and if his title to benefit has been maintained.
Persons entitled to survivors’ benefit are the insured person’s widow,
the widower, and the orphans.
The widow is accorded benefit if she has attained the age of 65,
or if she is permanently incapacitated or has been incapacitated un­
interruptedly for more than 26 weeks. Widows capable of earning
a living, i. e., who are able in the same measure as unmarried women
to provide for themselves, do not receive any benefit. If they have

214

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

children they receive a contribution to household expenses by way of
the orphan’s allowance. If a widow remarries she receives a lump
sum equal to her annual benefit.
A widower is paid benefit only under exceptional circumstances,
namely, if he is incapable of earning a living and is indigent, and
if his deceased wife has supported the family wholly or predomi­
nantly from her earnings. The amount of benefit is the same as that
paid a widow.
The children receive the orphans’ allowance up to the age of 15
years, and, if afflicted with an ailment, beyond this time limit. The
term “ children ” is defined by the law to include legitimate children,
children declared legitimate, adopted children, the illegitimate chil­
dren of the insured female or male parent provided the fatherhood
has been established, also stepchildren and grandchildren if they
were supported predominantly by the insured person before the pre­
sumption of claim to benefit payment arose.
Amount of benefits.—Benefits consist of a basic amount, plus a
percentage of contributions made after specified dates, plus a fixed
State contribution. If the beneficiary is residing abroad the State
contribution is withheld. The basic amount is fixed at 168 marks
($39.98) annually, for all wage classes. The additional benefit con­
sists of 20 per cent of all contributions made since January 1, 1924,
plus a certain allowance for contributions made in paper marks prior
to January 1,1924 (by way of revaluation).
Since October 1, 1929, the average annual benefits have been as
follows:
T a b le 3 5 . — Average annual benefits under wage earners9 insurance system in

Germany
[Conversions into United States currency on basis of mark™23.8 cents, pfennig™2.38 cents]
Survivors’ benefit
Item

Old-age and invalidity benefit
Widows or widowers

Orphans

36 marks ($8.57).
State contribution— 72 marks ($17.13)........................... 72 marks ($17.13)
Basic amount-------- 168 marks ($39.98)......................... 0.6 of basic amount of 0.5 of basic amount of
invalidity benefit.
invalidity benefit.
Additional amount. 20 per cent of contributions made 0.6 of a ddi t i o nal 0.5of additional amount
since Jan. 1, 1924; and for each
amount to which
to which insured
weekly contribution made in
insured would have
would have been
wage Classes I-V up to Jan. 1,
been entitled.
entitled.
1924,4, 8, 14, 20, and 30 pfennigs
respectively (0.95, 1.90, 3.33,4.76,
7.14 cents).

Medical treatment.—Aside from the statutory benefit, other spe­
cific benefits may be granted; the insured, however, has no claim
thereto. Such benefit consists in the first instance of free medical
treatment of the insured and his survivors in order to prevent per­
manent invalidity or to restore the working capacity; if the insured
refuses to take treatment he may be compelled to do so by with­
holding from him the invalidity benefit for a certain period. This
phase of activities on the part of the insurance administration has
gained enormously in importance in recent years and has become a

215

GERMANY

vital factor in the fight against tuberculosis and venereal diseases.
In addition, the insurance offices may appropriate funds, subject
to the consent of the supervisory authority, for the purpose of pre­
venting premature invalidity or improving sanitary conditions
among the insured. Thus, considerable funds have been invested in
housing relief, land settlement, the construction of hospitals and
convalescent homes, public bathing establishments, and other facili­
ties in the interests of public health. The insurance administration
may also place beneficiaries in invalids’ or orphans’ homes and may
use for this purpose all or part of the amount of benefit due them.
The total number of insured who were accorded medical treat­
ment from 1897 to 1925 (1923 and 1924 being omitted because in­
flation years) was 2,700,000, of whom about 840,000 were treated for
tuberculosis of the lungs and larynx. In 1913 the number of in­
sured under treatment was around 154,000; in 1925, 210,500; in 1926,
268,069; in 1927, 306,607; and in 1928, 371,844.
In 1926 more than half of the total expenditures were disburse­
ments for treatment of c o n s u m p t i v e s . After a decline in 1927, both
the number of persons treated for tuberculosis and the proportion­
ate cost of treatment rose in 1928.
Figures showing the extent and cost of medical treatment in 1913
and 1926 to 1928 follow:
T able 3 6 . —Number o f persons treated and cost of treatment under German

wage earners9 insurance system in specified years
[Conversions into United States currency on basis of mark*=23.8 cents]
Number of persons taking treatment
Continuous treatment

Year
Total

1913...................................................................
1926...................................................................
1927...................................................................
1928...................................................................

101,955
114,242
120,853
147,080

For tuber­
culosis
52,534
49,039
43,410
44,273

For venereal
diseases

13,627
13,497
18,131

Intermittent
treatment

51,681
153,827
185,754
224,764

Cost of treatment
1913...................................................................
1926............................................: .....................
1927...................................................................
1928...................................................................

$7,563,878
9,961,490
11,114,124
14,014,154

$4,928,980
6,147,778
6,125,168
7,125,244

$235
269,416
404,362

$751,128
1,974,686
2,434,978
3,147,074

The average cost of treatment per person was 222 marks ($52.84)
in 1918,186 marks ($44.27) in 1927, and 194 marks ($46.17) in 1928.
Of the total cost in 1928, namely 72,100,000 marks ($17,159,800),
only 50,300,000 marks ($11,971,400) was expended from invalidity
and old-age insurance funds, the balance of 21,800,000 marks
($5,188,400) being paid from other social insurance funds.
The combined workmen’s insurance organizations (State insur­
ance offices, the National Mining Federation and Federal railroad

216

.PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

workers’ insurance offices) now own more than 114 sanatoriums and
homes for the treatment of the sick, with sleeping accommodations
for 15,513 persons (as against 9,163 in 1913). Besides, they may
avail themselves of sleeping accommodations in 1,060 other estab­
lishments in health resorts.
Administration

The insurance
1
self-governing district insurance offices
which have jurisdiction
over local districts and are attached to the State or local govern­
ments. They are under the supervision of the Federal Insurance
Office {Reichsversicherungsanstalt). There exist in all, 29 State
insurances offices (Landesversicherungs-Anstalten) and 6 special
offices. Each State office is managed by a board and a committee.
The managing board legally represents the insurance office and con­
ducts the current business. It has the character of a public authority
and consists partly of official members and partly of honorary mem­
bers representing employers and insured. Its decisions depend upon
a majority of the votes of the honorary members. The committee
consists in equal proportion of representatives of employers and
insured, elected on the principle of proportionate representation.
Capital investments by the insurance offices are subject to statutory
regulations and are confined to designated kinds of investment. The
investment must be made at interest and as far as possible in a man­
ner to insure stability of value.
Statistics o f O peration

The actual number of persons covered by the invalidity and oldage insurance system is not known. It is estimated that the number
at the end of 1929 was around 18,000,000, of whom about 10,800,000
were males and 7,200,000 females.
During the year ending December 31, 1929, about 3,227,000 per­
sons were paid benefit. The number of persons receiving benefit in
given years during the period 1914 to 1930 was as follows:
T able 3 7 .— 'Number of persons receiving benefit under German wage earners1

insurance system in specified years, 191k to 1980
Number of beneficiaries
Year
Widows
1914.
19201924.
19281929.
1930.

1.152.000
1.865.000
2.095.000
2.972.000
3.096.000
3.250.000

998.000
962.000
1.230.000
1.767.000
1.888.000
1.998.000

87,000
233,000
137,000
66,000
59,000
51,000

12,000
82,500
157.000
334.000
389.000
487.000

» This is not the sum of the items, but the total number of beneficiaries under the system.

Orphans
38,000
38,000
483,000
483,000
525,000
510,000
736,000
691,000

217

GERMANY

The average amount of benefit per person per month for specific
years has been as follows:
T a b le 8 8 . — Average amount o f monthly benefits under German wage earners’

insurance system , 1926 to 1929
[Conversions into United States currency on basis of mark® 23.8 cents]
Invalidity benefit
including chil­
dren’s allowance

Widows’ benefit

Orphans’ benefit

Year
German United German United German United
States
States
States
currency currency currency currency currency currency

1926............................................................
1927-..........................................................
1928............................................................
19291
.........................................................

Marks
24.92
27.45
31.63
33.54

$5.93
6.53
7.53
7.98

Marks
14.27
16.84
20.75
21.70

Marks
10.02
11.68
13.75
14.17

$3.40
4.01
4.94
5.16

$2.38
2.78
3.27
3.37

i For the first half year, showing upward trend.

Receipts and expenditures.—Receipts and expenditures for the year
ending December 31,1929, showed a net surplus of 305,000,000 marks
($72,590,000) as against 396,000,000 marks ($94,248,200) in 1928.
Detailed statistics concerning receipts and expenditures in 1913 and
for each year from 1926 to 1929 follow:
T able 3 9 . —Receipts and expenditures under German wage earners1 insurance

system, 1913 and 1926 to 1929
[Conversions into United States currency on basis of mark**23.8 centsj
Receipts
Total

Amount received from—
Contributions

Year
German cur­
rency

1913.__
192 6
192 7
192 8
19291...

Marks
419,300,000
960,000,000
1,211,000,000
1.522.000.000
1.605.000.000

United States
currency

$99,722,714
228.480.000
288.218.000
362.236.000
381.990.000

German cur­
rency

Federal grants

United States
currency

Marks
290,000,000
659.600.000
875.200.000
1.076.000.000
1.098.000.000

German cur­
rency

$60,020,000
156,843,428
208,250,476
256.088.000
261.324.000

United States
currency

Marks
58,500,000
184.500.000
210.600.000
320,300,000
392,000,000

$13,923,000
43,793,190
49,981,428
76,160,714
93,296,000

Expenditures
i
Total

Year

Amount spent for—

Benefits
United
German cur­ States
rency
currency German cur­ United
States
rency
currency

Marks
1913___ 243,000,000
192 6
802.400.000
192 7
917.900.000
192 8 1,126,200,000
19291... 1,300,000,000
1Provisional figures.

Marks
$57,834,000 188,200,000
190,876,952 709.400.000
218,248,142 812.300.000
267,988,476 991.900.000
309,400,000 1,160,000,000

$44,744,476
168,742,952
193,256,714
235,860,142
276,080,000

Voluntary services

Administrative ex­
penses

German
currency

United
States
currency

German
currency

United
States
currency

Marks
29.900.000
50.500.000
60.100.000
78,200,000
88,000,000

$7,116,200
12.019.000
14,303,800
18,611,600
20.944.000

Marks
24.400.000
37.600.000
43.400.000
52.200.000
52,000,000

$5,807,200
8,948,800
10,329,200
12,423,600
12,376,000

218

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Figures for 1930 are not yet available except for total contribu­
tions and total benefits for the period January to September amount­
ing to 741,100,000 marks ($176,382,800) and 933,600,000 marks
($222,196,800), respectively.
Net assets on December 31, 1928, aggregated 1,278,000,000 marks
($304,164,000) and on December 31, 1929, 1,568,000,000 marks
($373,184,000). #
Of the administrative expenses for the year ending December 31,
1929, totaling 52,000,000 marks ($12,376,000), wages and salaries
account for 32,000,000 marks ($7,616,000), equipment and supplies
for 7,000,000 marks ($1,666,000), and legal proceedings for settle­
ment of appeals or complaints ior 1,600,000 marks ($380,800).
Figured on the basis of an assumed total number of insured of
18,000,000, the per capita administrative expenses in 1929 amounted
to 2.90 marks (69 cents). Administrative expenses formed about
4.3 per cent of the total receipts during that year. Similar calcula­
tion for the year 1930 is not possible as the administrative expenses
for that year are not yet published.
The following tables show the proportionate share of the govern­
ment and the insurance system in the total cost of benefits during the
years 1924 to 1929.
T a b l e 4 0 . —Share

o f Government and insurance system in total cost o f benefits
granted under wage earners' insurance system in Germany, 1924 to 1929
[Conversions into United States currency on basis of mark=23.8 cents]
Cost borne by insurance
system
Year
German
currency

United
States cur­
rency

Marks

1924..................................
1925..................................
1926..................................
1927..................................
1928 ................................
19291
................................

275.000.000 $66,450,000
427.000.000 101,626,000
575.000.000 136.850.000
662.000.000 157.556.000
750.000.000 178.500.000
845.000.000 201.110.000

Amount borne by Gov­
ernment
German
currency

United
States cur­
rency

Marks

96,000,000 $22,848,000
162,000,000 38.556.000
185.000.000 44.030.000
210.000.000 49.980.000
320.000.000 76.160.000
380.000.000 90.440.000

Total cost of benefits

German
currency

United
States cur­
rency

Marks

371.000.000
689.000.000
760.000.000
872.000.000
1.070.000.000
1.225.000.000

$88,298,000
140.182.000
180.880.000
207.636.000
254.660.000
291.550.000

* Provisional figures, partly estimated.

Salaried Employees’ Insurance System
Salaried employees’ old-age insurance (Angestelltenversicherung)
was established by the law of December 20,1911, effective January 1,
1913, and recodified in the law of May 28, 1924, which in turn has
been amended at various times in subsequent years. The system is
similar to that of wage earners’ invalidity and old-age insurance; it
is compulsory for all groups of salaried employees with annual sala­
ries up to 8,400 marks ($2,000), the maximum limit having been 6,000
marks ($1,428) until September 1, 1928.

GERMANY

219

Coverage of System

The following are covered by the system: (1) Salaried employees
in leading positions; (2) shop superintendents, foremen, and other
employees in similar superior positions; (3) office clerks and other
commercial employees, provided they are not engaged exclusively in
messenger work, cleaning up, etc., including office apprentices and
workshop clerks; (4) practitioners and assistants in drug stores;
(5) actors and actresses and musicians, irrespective of the artistic
value of their performances; (6) persons employed in professions
connected with education, tuition, care of the sick, and public welfare
work; (7) ship’s masters, mates and marine engineers, supercargoes
or pursers and their assistants, and other members of the crews of
German seagoing vessels and of the crews of German vessels em­
ployed in river and canal shipping, holding similar superior or higher
positions; (8) independent teachers, governesses, and musicians prac­
ticing their profession without the help of any assistants.
In addition, the following classes of persons may participate volun­
tarily in the insurance but can exercise this right only up to the age
of 40: (1) Persons carrying on for their own account work of a
nature similar to that performed by salaried employees liable to in­
surance; (2) persons who normally would be liable to insurance but
are exempt for the following reasons: (a) If their annual salary ex­
ceeds the maximum salary limit for compulsory old-age insurance,
8,400 marks ($2,000) ; (&) if they receive only free board and lodging
as compensation for services rendered; (c) if they are being employed
only temporarily; or (d) if they are doing remunerative work as part
of their professional training.
If an insured person ceases to perform remunerative work sub­
ject to insurance, and if he has made compulsory contributions for at
least four months and is not incapacitated, he may continue making
contributions from his own funds in order to maintain his claim to
benefit. In that case he need not adhere to the rate of contribution
corresponding to his previous salary class but may pay a rate apply­
ing to a lower or the lowest salary class. In order to maintain his
claim to insurance benefit the insured must make not less than eight
monthly voluntary contributions each year during the second to
eleventh calendar years of the contributed period and not less than
four monthly contributions during any ensuing calendar year.
Exemptions.—Aside from the exemptions stated above under (2),
persons who would otherwise be liable to insurance are exempt if
they are incapacitated or draw old-age, widowers’ or widows’ benefit
under salaried employees’ or workmen’s old-age insurance, and if
they start remunerative work after having reached the age of 60.
Contributions

The contributions are calculated on the basis of the so-called
allocation of estimated annual expenditures (Umlageverfahren)
among the total membership, including amounts turned into reserves.
The rates are not revised each year but are calculated so as to meet
estimated requirements for a number of years. The contributions
apply to all persons alike, whether male or female, married or single,
83360°— 82-------15

220

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

old or young. They are graduated according to monthly salaries as
follows:
T a b le 4 0 a

.— Salary classes and monthly contributions under German salaried
employees9 insurance system
[Conversions into United States currency on basis of mark=23.8 cents]

Monthly salary
Salary class
German
currency

United States
currency

Marks

Monthly con­
tributions
Ger­
man
cur­
rency

United
States
cur­
rency

Marks

Up to 60
60-100
100-200
200-300
300-400

Up to $11.90
$11.90- 23.80
23.80- 47.60
47.60- 71.40
71.40- 95.20

2
4
8
12
16

$0.48
.95
1.90
2.86
3.81

400-600
Class F ...................................................................................
500-600
Class G __ - ___________________________________________
Class H ___ - __________________________________________ 600 and
over.
Class J 1- _ . ___________________________________________
Class K 1
________________________________ - ____________

95.20-119.00
119.00-142.80
142.80 and
over.

20
25
30

4.76
5.95
7.14

40
50

9.52
11.93

Class A _______________________________________________
Class B ________—_____________________________________
Class C _______________________________________________
Class D ______________________________________________
Class E ______________________________________________

* Classes J and K are open for voluntary contributions only.

The contributions are made jointly by the insured and employers
except as regards persons drawing a monthly salary of not more
than 50 marks ($11.90) and apprentices whose contributions are
paid entirely by the employer. As in the case of wage earners, the
contributions are made by way of stamps, which must be canceled
by the employer and pasted on cards issued for each employee.
A minimum number of monthly contributions is required before
the insured can claim benefit. The statutory number of “ contributed
months 5 is normally 60. If less than 30 compulsory contributions
5
were made, the period is extended to 90 contributed months.
Contrary to the practice in wage earners’ insurance, periods of ill­
ness during which no contributions were made are not taken into
account in computing the months of contribution.
Refund of contributions.—Contributions made by an insured fe­
male can be refunded in accordance with statutory regulations under
the conditions and within the limits stated below:
(a) If an insured female marries after having made the required
number of contributions and if she would be, within three years
from the date of her marriage, automatically exempted from the
obligation of participating in the insurance by giving up her work,
she is entitled to a refund of one-half the total amount of contribu­
tions made by her from January 1, 1924, to the date on which she
became exempt from the obligation to participate in the insurance.
(b) If an insured female dies after having fulfilled the contribu­
tion requirements but before becoming eligible for old-age benefit,
and no claim to survivors’ benefit exists, the relatives in the follow­
ing order—husband, children, father, mother, sisters, or brothers—
may claim a refund of one-half the amount of contributions made by
the deceased between January 1, 1924, and the date of her death,

GERMANY

221

rovided
relatives concerned
E the the deceased or havehave been members of the same
ousehold as
been supported substantially by

her.

Benefits

Old-age benefit.—Old-age benefit is paid to the insured upon
reaching the age of 65 or in case of disability, provided the required
number of contributions (60) have been made and the claim to
benefit maintained. Under an amendment dated March 7, 1929,
old-age benefit will be paid until the end of 1933, also to persons 60
years of age who have been unemployed for at least one year, such
persons being under the law considered as disabled. Disability, as
applied to salaried employees, is construed to mean a decline of
earning capacity, either through bodily ailment or an impairment of
physical and mental faculties, to less than one-half2 of that of a
8
physically and mentally sound insured of similar professional train­
ing and equivalent knowledge and experience. The law distinguishes
between permanent and temporary disability. As regards the
former, benefit is paid immediately; and as regards the latter, benefit
is paid only if the disability has lasted over 26 weeks, payment being
made beginning with the twenty-seventh week. If the beneficiary
has any children, the amount of benefit is increased by an allowance
of 120 marks ($28.56) annually for each child up to the age of 15
(2L if the child is receiving school or trade education).
Survivors* benefit.—Payment of survivors’ benefit is contingent
upon the deceased having made contributions for the statutory min­
imum period and having maintained his claim up to the time of his
death. Survivors’ benefit is paid to the widow, to the widower under
certain conditions, and to the children. The widow receives benefit
upon her husband’s death, irrespective of whether she is still capable
of earning a living or whether she has not yet reached the age of 65.2
&
If she remarries she receives a lump sum equal to three-fourths of
the amount of her annual benefit. The widower receives benefit if he
is disabled and needy and if his wife has provided for the family,
wholly or predominantly, from her earnings.
Orphans’ benefit is paid up to the age of 15, or, if receiving school
or trade education, up to the age of 21; in case of illness, benefits
are extended beyond this age limit.
Medical treatment.—The Federal Insurance Office (Reichsversicherungsanstalt) may, at its discretion, accord the insured free
medical treatment in order to prevent disability from sickness, or
if it can be reasonably expected that such treatment will restore the
working capacity of a person already incapacitated. The insured,
however, has no legal claim to such benefit. This phase of insurance
is built up on lines similar to the wage earners’ insurance.
In 1929, 117,131 applications for treatment were filed, including
applications for part of the cost of dental operations, etc. Of the
remaining applications, 63.2 per cent were granted for treatment
28 As compared with less than one-third, under the wage earners’ insurance system.
29 Contrary to the practice in wage earners’ insurance where widows still able to provide
for themselves do not receive any benefit.

222

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

of consumptive and other patients in health resorts and watering
places. Since 1928 free treatment in health resorts has been granted
also to the insured’s consumptive wife or husband who otherwise
does not participate in the insurance; in 1929, treatment was granted
in 576 such cases. In addition, 5,164 applications (out of a total
of 7,366) for part payment of children’s treatment were approved
during that year.
The Federal Insurance Office for Salaried Employees (Reichsversicherungsanstalt fur Angestelite) now has at its disposal, for
the treatment of consumptives alone, accommodations in 65 sana­
torium^ and similar establishments; and for the treatment of other
diseases or ailments 50 sanatoriums in health resorts and bathing
facilities in 9 watering places.
Amount of bemfit.—All benefits consist of a basic rate and sup­
plementary amounts, but, unlike the practice in the wage earners’
insurance system, the State neither makes a contribution nor pays
the administrative expenses. The basic amount is set at a standard
rate of 480 marks ($114.24) per annum for all salary classes alike.
The supplementary benefit consists of 15 per cent of all legal contri­
butions made since January 1, 1924, and (by way of revaluation of
the depreciated paper mark contributions) a fixed small portion of
the contributions made between January 1, 1913, and July 31, 1921.
How the system works out may be seen from the following table:
T a b le 4 1

.— Average annual old-age benefits1 under German salaried employees1
insurance system
[Conversions into United States currency on basis of mark—23.8 cents]
Average annual benefit1
After 10 years' contributions

Salary
class

Unmarried
persons

Married per­
sons with 2
children

After 20 years’ contributions
Unmarried
persons

Married per­
sons with 2
children

After 30 years’ contributions
Unmarried
persons

Married per­
sons with 2
children

Ger­ United Ger­ United Ger­ United Ger­ United Ger­ United Ger­ United
man States man States man States man States man States man States
cur­
cur­
cur­
cur­
cur­
cur­
cur­
cur­
cur­
cur­
cur­
cur­
rency rency rency rency rency rency rency rency rency rency rency rency
Marks

516 $122.81
A ..............
552 131.38
B ..............
624 148.51
C..............
D ..............
696 165.65
768 182.78
E ..............
840 199.92
F .........
930 221.34
G ..............
H .............. 1,020 242.76
J................ 1,200 285.60
K _____ 1,380 328.44

Marks

600 $142.80
792 188.50
864 205.63
936 222.77
1,008 239.90
1,080 257.04
1,170 278.46
1,260 299.88
1,440 342.72
1,620 385.56

Marks

552 $131.38
624 148.51
768 182.78
912 217.03
1,056 251.33
1,200 285.60
1,380 328.44
1,560 371.28
1,920 456.96
2,280 542.64

Marks

600 $142.80
864 205.63
1,008 239.90
1,152 274.18
1,296 308.45
1,440 342.72
1,620 385.56
1,800 428.40
2,160 514.08
2,520 599.76

Marks

588 $139.94
696 165.65
912 217.05
1,128 268.46
1,344 319.87
1,560 371.28
1,830 435.54
2,100 499.80
2,640 628.32
3,180 756.84

i Including basic benefit and 15 per cent of all contributions made since Jan. 1, 1924.

Marks

600 $142.80
936 222.77
1,152 274.18
1,368 325.58
1,584 376.99
1,800 428.40
2,070 492.66
2,340 556.92
2,880 685.44
3,420 813.96

QfiBMANt

223

To the above rates are added the following specified rates per
monthly contributions made from January 1, 1913, to July 31, 1921,
as follows:
Marks

Class A ________________________________________ 0.50 ($0.12)
Class B___________________________________________ .75 ($0.18)
Class C___________________________________________ 1.00 ($0.24)
Class D___________________________________________ 1.25 ($0.30)
Class B___________________________________________ 2.00 ($0.38)
Class F___________________________________________ 2.50 ($0.59)
Class G___________________________________________ 3.00 ($0.71)
Class H_________________________________ __________ 4.00 ($0.95)
Class J ___________________________________________ 5.00 ($1.19)

Widows’ and widowers’ benefit amounts to six-tenths and orphans’
benefit to five-tenths, each, of the old-age benefit, exclusive oi chil­
dren’s allowance.
Administration

The system is administered by the Federal Insurance Office for
Salaried Employees, which has a legal status. It has the function
of a public authority and is under the supervision of the Federal
Ministry of Labor. The organs of the insurance office are the board
of directors, the administrative board, and confidential agents.
The board of directors represents the Federal Insurance Office,
handles all current matters of administration, except in so far as the
advisory board cooperates in the management. It consists of a presi­
dent, a vice president, one other official member, and three repre­
sentatives each of the insured and employers acting as honorary
members. The board of directors meets once in a fortnight. The
president and other official members of the board of directors, as
well as the officials of the regular staff} are appointed for life by the
President of Germany, at the proposal of the Federal council and
after consultation witn the administrative board. They have the
same rights and duties as civil employees. The other officials and
employees are appointed by the board of directors. On December
31, 1929, the officials and employees numbered 1,146, against 1,032
the previous year.
The administrative board decides upon the budget estimate, except
as regards the pay roll for higher-class officials. It approves the
annual financial statement and the balance sheet and has the right
to verify receipts and expenditures and any documentary evidence
connected therewith; it elects the honorary members of the board of
directors and the coadvisers of the insurance offices—the superior
insurance office (Oberversicherungsamt) and the Federal Insurance
Office (Reichsversicherungsanstalt). The administrative board con­
sists of the president of the board of directors, or his representative,
who acts as chairman, and of at least 12 representatives each of
the insured and their employers. The representatives of the insured
are selected on the principle of proportionate representation from
lists of names submitted by economic organizations of employers and
employees. The management is regulated by a business schedule
drawn up by the administrative board in agreement with the Federal
Ministry of Labor.
The confidential agents represent the honorary outside organiza­
tions. They elect the members of the advisory board. They can

224

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

also be called upon to assist the Federal Insurance Office and other
insurance offices in the performance of their duties.
^Statistics of Operation

In 1929 there were 3,400,000 insured salaried employees (estimated
figure), and in 1930, 3,500,000. The number of persons receiving
benefit and the amount of benefit per person on specified dates were
as follows:
T a b l e 4 2 . — Number of beneficiaries and average monthly benefits under Ger­

man salaried employees' insurance system on specified dates
[Conversions into United States currency on basis of mark=23.8 cents]
Item

Dec. 31,1927

Number of beneficiaries:
Old-age pensions_______. . . . . . . _______
Widows’ pensions____ _______________
Orphans’ benefits___________________
Average monthly benefits:
Old-age pension, excluding children’s
allowance________. . . . . . . . . . . _______
Widows’ pension..... ..............................
Orphans’ oenefit.. . . . . . . . . . . . . . . . . . . __

Dec. 31,1928

Dec. 31,1929

74,787
46,792
30,767

101,516
55,845
34,910

62,293
39,727
27,542
Marks

Marks

Dec. 31,1930

125,576
63,557
37,233
Marks

Marks

1 68.00 ($16.18) 82.60 ($19.66) 83.20 ($19.80) 81.45 ($19.39)
138.00 ($9.04) 45.15 ($10.88) 47.25 ($11.25) 48.74 ($11.60)
132.00 ($7.62) 37.50 ($8.93) 39.35 ($9.37) 40.62 ($9.67)

i Data are as of Mar. 31, 1928.

The decrease in the average old-age benefit in 1930 was due to the
increased number of beneficiaries who reached the age of 60 and
had been without employment for at least one year. This class of
persons, according to the law of March 7, 1929, is considered as “ dis­
abled ” and prematurely entitled to the old-age benefit.
The monthly amount of old-age benefit paid under the law of
March 7, 1929, to persons 60*years of age who have been without
employment uninterruptedly for at least one year is considerably
lower than the normal amount of benefit, averaging on December
21,1929, 69.23 marks ($16.48).
The following table shows receipts and expenditures for 1928 and
1929:
T a b l e 4 3 . — Receipts and expenditures of German salaried employees9 insurance

system , 1928 and 1929
[Conversions into United States currency on basis of mark= 2 3 .8 cents]
192$
Item

German
currency

United
States cur­
rency

Marks

Receipts__ ________________________________ 406.500.000
Contributions................................................... 317.180.000
Expenditures
_______________________ 138.200.000
Benefits ,..,
,
- ___
- _______ 101.040.000
19,000,000
Medical treatment and sanitary measures—
Lump-sum compensation and other nonre­
4,000,000
curring expenditures.....................................
11,300,000
Administrative expenses..................................
2,800,000
Loss on securities1...........................................
T o reserves _________________________________ 268.300.000
Total reserves________________________________ 1,000,500,000

$96,750,000
75,488.840
32,891,600
24,047,520
4*522,000

1929
German
currency

United
States cur­
rency

Marks

496,000,000 $118,048,000
372.400.000 88,631,000
186.200.000 44.315.600
139.700.000 33.248.600
23.500.000
5,593,000

5.600.000
952,000
1.332.800
2,689.400
12.100.000
2.879.800
666,400
5.100.000
1.213.800
63,855*400 309.800.000 73,732,400
238,119,000 1,310,300,000 *311,851,400

i The insurance office is required by law to invest 25 per cent of its surplus in Federal and State bonds
which have considerably declined in value in recent years.

GERMANY

225

Of the administrative expenses, totaling in 1929, 12,100,000 marks
($2,879,800), wages and salaries account for 7,700,000 marks
($1,832,600), ana equipment and supplies for 1,200,000 marks
($285,600). The corresponding figures for 1928 were: Wages
and salaries, 7,500,000 marks ($1,785,000), and equipment and sup­
plies, 1,080,000 marks ($257,040), a total of 11,300,000 marks
($2,689,400).
Based on an estimated total number of insured in 1929 of
3,400,000, the per capita cost of administration for that year was
3.50 marks (83 cents). The cost of administration amounted in
1929 to 2.5 per cent of the total receipts of 496,000,000 marks
($118,048,000).
In 1930 the fund had receipts of 547,800,000 marks ($130,376,400),
of which 385,100,000 marks ($91,653,800) were from contributions.
Expenditures for the year aggregated 224,700,000 marks ($3,478,600), of which 175,800,000 marks ($41,840,400) were paid out
in benefits, 12,800,000 marks ($3,046,400) went for administrative
costs, and 323,000,000 marks ($76,874,000) were placed in the re­
serves. As in 1929, the cost of administration was 2.5 per cent of
the total receipts.
Bank Employees* Insurance System
Old-age insurance of bank employees in Germany is handled by
the Bank Employees’ Insurance Association (Beamten-Versicherungs-Verein fur das Deutsche Bamk- u/nd Banhierg&iverbe) at
Berlin. This association was established in 1909, two years before
compulsory old-age insurance for salaried employees was inau­
gurated in Germany by the act of December 20, 1911. Bank em­
ployees’ old-age insurance has nevertheless remained a separate
institution, as, according to paragraph 363 of the act of December
20, 1911, participation of salaried employees in private old-age in­
surance organizations under certain specified conditions is regarded
as equal to participation in compulsory Government insurance.
The conditions which are laid down, for private insurance or­
ganizations, in paragraphs 363-374 of the act of December 20, 1911,
governing salaried employees’ old-age insurance (republished on
December 15, 1924) are the following: The membership must in­
clude all salaried employees, as far as they are liable to insurance,
in the service of the enterprise which the respective private insur­
ance organization represents; benefits and contributions must not
be lower than the statutory rates applying to other categories of
salaried employees; compliance with this provision is controlled
by the appropriate supervisory authority; if the employees pay
higher contributions, the employers must pay the same amount.
Coverage of System

Except for the members of managing boards, all employees, in­
cluding directors and managing clerks, are covered by the insurance;
there is no restriction as to salary.8
0
80 The income lim it up to which persons are liable to participation ip salaried employees’
compulsory old-age insurance is 8,400 marks a year.

226

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Contributions

The rate of contributions on an average is from 50 to 70 per cent
higher than under the regular salaried employees’ old-age insurance
system. Of the contribution the employers voluntarily pay 55 per
cent, while the employees pay 45 per cent.
The waiting time, rates of benefits, as far as the statutory claim is
concerned, are calculated according to the pertinent legal provisions.
The statutory benefits are fixed by the Federal Insurance Office for
Salaried Employees {Reichsversicherungsanstalt fur Angestellte) ,
from whose decision, however, appeal can be made by the private
association. The Federal Government determines the amount of the
latter’s assets which shall be invested in Federal and State bonds
issued by State credit institutions; this amount shall, however, not
exceed 25 per cent of the association’s reserve for benefit payments.
Benefits

The benefits paid under this system are old-age, disability, and
survivors’ benefits.
To be eligible for the old-age benefit, the insured must have at­
tained the age of 65 and have made 60 months’ contributions.
There is no age requirement in case of disability, but the insured
must have paid 60 months’ contributions and be unable by reason of
mental or bodily disease to fill a position in accordance with his edu­
cation and previous activity. He is considered to be totally inca­
pacitated if his incapacity amounts to 50 per cent.
Pensioners are divided into eight classes according to their sal­
aries. The basic pension is 840 marks ($199.20). For each month
of contribution, however, a supplementary sum, in addition to the
basic pension, is paid according to the class to which the pensioner
belongs. The amount of these supplements is shown below.
Per month

Class 1----------------------------------------------------30 pfennigs ($0.07)
Class 2___________________________________
90 pfennigs ($0.21)
Class 3----------------------------------------------------180 pfennigs ($0.43)
Class 4___________________________________
300 pfennigs ($0.71)
Class 5----------------------------------------------------420 pfennigs ($1.00)
Class 6----------------------------------------------------600 pfennigs ($1.43)
Class 7___________________________________
800 pfennigs ($1.90)
Class 8___________________________________ 1,100 pfennigs ($2.62)

In the case of the death of a male insured person a pension is due
from the first day of the month in which the death occurred, if the
deceased was not already drawing a pension. If the deceased was
already drawing a pension, a pension is due to his heirs from the
first day of the month following the death. A widow receives 60 per
cent of the pension which her husband received or would have
received if he had been pensioned on the day of his death. A child
under 18 years of age is entitled to 50 per cent of the pension of his
father. The total pension paid to the survivors of the deceased
may not, however, exceed 100 per cent of the pension of the father.
In the case of the death of an insured woman, if her husband is
incapacitated and the support of the family depended entirely or

GERMANY

227

chiefly on the earnings of the insured woman, then the husband is
entitled to 60 per cent of the pension of his wife. In such cases
the children under the age of 18 years are also entitled to a pension
in the same amount as in the case of a deceased male insured person.
The fatherless children of an insured woman are also entitled to
the same pension. In this connection children may be considered
fatherless who are illegitimate or who are not permanently supported
by their father.
The pension of a widow ceases at the end of the month in which
she dies or marries again. If the widow marries again she receives
three years’ pension in one lump sum. The pension of a child ceases
at the end of the month in which the child becomes 18 years of age,
marries, or dies. If the child at the time of the completion of his
eighteenth year is attending school or is receiving professional or
vocational instruction, he may continue to receive a pension during
such instruction until but not beyond his twenty-first birthday.
The pension of an incapacitated widower ceases with his death, but
during his lifetime continues as long as he is able to show that he is
in need of the pension.
Administration

The bank employees cooperate in administration in the same
proportion as other classes of salaried employees cooperate in the
administration of salaried employees’ compulsory old-age insurance.
In 1930 the former old-age insurance organization for employees
of the Deutsche Bank combined with the Beamten-VersicherungsYerein fiir das Deutsche Bank- und Bankiergewerbe following the
fusion of the Deutsche Bank and the Diskonto Bank. Endeavors are
being made by the association to enable the outside banks to join its
organization, which necessitates the amendment of certain provisions
of the act of December 20, 1911. The association considers that the
favorable status of bank employees’ old-age insurance is due not only
to the higher rate of contributions and the inclusion of the highersalaried employees in the scope of insurance, but also largely to the
greater latitude in administration and the conduct of the business on
a more commercial and profitable basis.
Statistics of Operation

According to the annual report of the Beamten-VersicherungsYerein fur das Deutsche Bank- und Bankiergewerbe for 1930, the
situation of this organization is very satisfactory.
The membership comprises about 45 per cent of all commercial
bank employees in Germany. The contributing members at the end
of 1930 numbered 66,067 compared with 69,651 a year ago. The
decline in 1930 is due to the large-scale dismissals of bank employees
since December, 1929.
The old-age annuities current at the end of 1930 numbered 11,042,
involving a total expenditure of 8,800,000 marks ($2,094,400). Out
of the total number of beneficiaries, the benefits in 7,682 cases, involv­

228

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

ing an annual outlay of around 8,000,000 marks ($1,904,000) fell to
persons having paid contributions currently, while 3,758 benefits
involving 825,000 marks ($196,350) were paid to insurants who h <
aJ
made no contributions. The number of benefits paid in 1930 in­
creased by about 16 per cent compared with the year 1929. The
average amount of benefit paid to persons who had paid their full
number of contributions was 127.87 marks ($30.43) a month, ex­
cluding the children’s allowance; including the latter the average
amount was 130.61 marks ($31.09).
In 1930 the association expended 941,800 marks ($224,148) on
special treatments and cures for its members. The applications for
payment or part payment of such treatment and cures numbered
2,261, of which 82 per cent were approved (against 63 per cent under
the regular salaried employees’ compulsory old-age insurance sys­
tem). Besides, in 1,393 cases, assistance was granted to meet the
cost of artificial teeth or medicines, involving an expenditure of more
than 100,000 marks ($23,800). A remarkable feature is the predomi­
nance of nervous diseases in the list of illnesses for which special
treatment and cures were desired.
The reserve, covering benefit payments, increased in 1930 by
19,000,000 marks ($4,522,000), to 137,300,000 marks ($32,677,400).
In addition there is a reserve of 500,000 marks ($119,000) from
which the cost of medical treatment, etc., is met. Around 109,000,000
marks ($25,942,000) of the assets are invested in gilt-edged securities
and first mortgages; 4,000,000 marks ($952,000) were invested in
1930 in mortgages on residential buildings for social purposes.
Loans by the association up to the end of 1930, secured by mortgages,
helped to finance the construction of 2,174 dwellings, of which about
600 were made available to members of the association. •
National Federation of Miners’ Insurance System
The act of June 23, 1923, effective January 1, 1924, established a
compulsory insurance system for miners. The act was amended by
the mining federation act of July 1, 1926 (Reichsknappschaftsgesetz). Inasmuch as mine workers in Germany, with the cooperation
of mine owners, have maintained ever since 1476, relief funds for
victims of mining disasters, this branch of German social insurance
has up to the present time preserved its independent character.
There are in existence today 16 territorial insurance offices for miners
which were under State jurisdiction until 1924, when they were
placed under Federal supervision.
The law covers manual laborers engaged in the extraction of
mineral products or related materials; and technical and clerical
salaried mine employees earning up to 8,400 marks ($2,000) a year.
The latter are exempt from participation in salaried employees’
old-age insurance.
The Federation of Miners’ Insurance System covers the following
types of insurance: (a) Workmen’s sickness insurance;3 (&) work­
1
8
1 Since this type of insurance does not fall within, the scope of the present report—
old-age pensions— it is not discussed here.

GERMANY

229

men’s old-age insurance; (c) workmen’s invalidity insurance; (d)
salaried employees’ sickness insurance;8 and (e) salaried employees’
1
old-age insurance.
Contributions

Manual laborers.—As regards old-age insurance, the insured miner
pays three-fifths and the employer two-fifths of the contributions.
The State contributes an additional amount which in 1929 totaled
67,300,000 marks ($16,017,400). In 1929 the general rate of contri­
bution was 8.5 per cent of the wages paid. The assessment of the
customary special rate and a surcharge for strictly mining work was
obviated by the contributions of the Federal Government. The con­
tributions are deducted in bulk from the sum total of workers’ pay
rolls. The rate of contributions in invalidity insurance and the ratio
of allocation thereof among workers and employers are the same as
in wage earners’ compulsory invalidity insurance.
Salaried employees.—Contributions are computed on an assess­
ment basis. The rates are so calculated each year that they cover
estimated expenditures, including the amount turned into reserves
(one-twentieth of total expenditures), by taking into account a State
contribution which in 1929 totaled 7,700,000 marks ($1,832,600).
The contributions consist of the following (the rates stated are
those for the year 1929):
(a ) A general rate calculated on the basis of the maximum amount
of the salary class to which the insured belongs " ______________
(b) A special rate varying, according to mining districts, from____
(c) A surcharge for strictly mining work, ranging from__________

Per cent
o f gross
salaries

8.0
1.2 to 2.8
.8 to 2.4

Total--------------------------------------------------------------------------------- 100 to 13.2

Without the State contribution the above rates would have been
about 25 per cent higher. Salaried employees pay three-fifths and
employers two-fifths of the total contributions.
Benefits

Manual laborers.—The benefit includes (1) old-age and invalidity
benefit; (2) widows’ benefit; (3) orphans’ benefit; (4) free medical
treatment and medicines for recipients of old-age and invalidity
benefit; and (5) a contribution to funeral expenses for deceased
beneficiaries, their wives and children.
Old-age benefit is paid at the age of 65, or if permanently incapaci­
tated.
Upon application, manual laborers may be accorded benefit
at 50 years of age if they have contributed for 300 months (180
months thereof in strictly mining work), and have ceased to perform
“ equally remunerative work.” Such workers are considered to be
incapacitated. This is called “ premature old-age benefit.” The
term 4 equally remunerative work” applies to work equaling the
4
a Since this type o f insurance does not fa ll within the scope o f the present report—
old-age pensions— it is not discussed here.
** The salary classes range from A -H , follow ing the same order o f classification as in
salaried employees’ old-age insurance.

230

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

highest-paid work which the beneficiary performed during the major
part of nis service. The amount of such benefit is reduced by 25
per cent if the recipient subsequently performs regular remunerative
work in enterprises above ground.
In all other cases incapacity for work is presumed to have arisen
if the insured is unable to perform strictly mining work or work
of an equivalent nature.
In addition, invalids are paid benefit from the federation’s invalid­
ity benefit fund, in accordance with the provisions of the wage earn­
ers’ compulsory old-age and invalidity insurance, so that the insured
under certain circumstances are paid twofold benefit. Whenever a
person draws benefit from two sources, however, the basic amount of
the benefit paid from old-age benefit funds is eliminated.
Old-age benefit consists of a basic rate and supplementary
amounts. The basic rate amounts to 14 marks ($3.33) a month, or
168 marks ($39.98) annually. The supplementary rate consists of
a given percentage of the maximum wage of each wage class in
which the insured has made contributions. The wage classes are
graded as follows:
Wage
Wage
Wage
Wage
Wage
Wage
Wage

Class
Class
Class
Class
Class
Class
Class

I, up to 75 marks (17.85).
II, from 75 tq 100 marks ($17.85-$23.80).
III, from 100 to 125 marks ($23.80-$29.75).
IV, from 125 to 150 marks ($29.75-^35.70).
V, from 150 to 175 marks ($35.70-$41.65).
VI, from 175 to 200 marks ($41.65-$47.60).
VII, over 200 marks ($47.60).

In calculating the additional benefit the maximum wage in Class
V II is assumed to be 225 marks ($53.55). The additional benefit is
as follows:
Per cent o f
maximum of

Months of contribution:
wage class
First 60 months--------------------------------------------------------------------------------0.5
Next 60 months------------------------------------------------------------------------------ 1.0
Next 180 months------------------------------------------------------------------------------ 1.85
All subsequent months--------------------------------------------------------------------- .5

A children’s allowance amounting to 120 marks ($28.56) annually
is paid for each child up to the age of 15. Survivors’ benefit is the
same as for salaried employees discussed hereafter.
Salaried employees.—These benefits include the following:
(1) Old-age benefit; (2) survivors’ benefit; (3) free medical treat­
ment and medicines for old-age pensioners; and (4) a contribution
to funeral expenses at the death of a recipient of old-age benefit, his
wife and children.
Old-age benefit is paid the insured at the age of 65 or if he is
permanently incapacitated through bodily ailment or a decline of
physical and mental faculties. Salaried commercial employees are
deemed incapacitated for work if their working capacity is less than
half that of a physically and mentally sound person of similar
training and equal experience and ability. The incapacity for work
of technical employees is judged in the same manner as that of
comparable classes of manual laborers. Old-age benefit is paid the

231

GERMANY

insured, upon application, also at the age of 50, if he has contributed
for 300 months (180 months of which was strictly mining work), and
if he has ceased to perform equally remunerative work. This bene­
fit likewise is called “ premature old-age benefit.” The term “ equally
remunerative work” applies to work equaling the highest-paid work
the beneficiary has performed during the major part of his service.
Premature old-age benefit, however, is reduced by 25 per cent if the
recipient subsequently performs regular remunerative work above
ground.
Salaried employees’ old-age benefit consists of a basic amount of
40 marks ($9.52) a month, and a percentage of the maximum sal­
ary of each salary class in which the insured has made contribu­
tions. The maximum amounts of each salary class are:
Marks

Class A__________________________________________
Class B__________________________________________
Class C______________________________________ ____
Class D __________________________________________
Class E__________________________________________
Class F__________________________________________
Class G__________________________________________
Class H__________________________________________

50
100
200
300
400
500
625
750

($11.90)
($23.80)
($47.60)
($71.40)
($95.20)
($119.00)
($148.75)
($178.50)

The percentages constituting the additional benefit are graduated
in the same manner as in the case of manual laborers’ old-age bene­
fit. If the total amount of old-age benefit is lower than the amount
which would have to be paid the insured under similar conditions
under the salaried employees’ insurance system, the amount of bene­
fit must be increased proportionately. The children’s allowance is
the same as that paid from manual laborers’ insurance funds, namely,
120 marks ($28.56) per year for each child up to the age of 15.
Survivors' benefits.—Widows’ benefit is the same for manual labor­
ers and salaried employees. It amounts to six-tenths of the oldage benefit paid the deceased. The widow of a mine worker re­
ceives the widows’ benefit whether or not she is still able to work
(unlike the widow of a workman insured under the wage earners’ in­
surance who receives no benefit if she is still able to provide for her­
self). If the deceased was also paid invalidity benefit, the widow
receives the widows5 benefit likewise from the invalidity insurance
funds, but whenever benefit is drawn from several funds the basic
amount is paid only once. If several survivors’ benefits coincide
with the benefit paid from workmen’s compensation funds, the total
amount of survivors’ benefit may not exceed 80 per cent of the an­
nual wages previously drawn by the deceased. If the widow re­
marries she receives a lump sum equal to three times her annual
benefit.
The benefit for each orphan of a manual laborer is two-tenths of
the deceased’s old-age benefit and five-tenths of his invalidity bene­
fit, and that for each orphan of a salaried employee is one-half of
such benefit.

232

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Average monthly benefits paid to manual laborers and salariec
employees, respectively, during given years, are given in the fol­
lowing table:
T able 4 4 . —Average monthly 'benefits under miners' insurance system in Ger­

many, 1918 and 1924 to 1980
[Conversions into United States currency on basis of mark=23.8 cents]
Manual laborers
Old-age benefit Premature old- Both types of Widows’ ben­ Orphans’ ben­
age benefit
benefit
efit
efit
Year

Ger­ United Ger­ United Ger­ United Ger­ United Ger­ United
man States man States man States man States man States
cur­
cur­
cur­
cur­
cur­
cur­ cur­ cur­ cur­
cur­
rency rency rency rency rency rency rency rency rency rency
"With childrenf8 allowance

1913 (Prussia only)______
1924....................................
1926....................................
1926....................................
192 8
1929
1930, first half1
...........

Marks

65.27
63.16
61.04
60.63

Marks

$16.63
15.03
14.58
14.41

82.17
79.61
78.69
83.81

$19.56
18.95
18.73
19.95

Marks
26.64
45.50
57.08
65.45
68.31
65.48
63.33
63.42

$6.32
10.83
13.57
15.58
16.26
15.58
15.00
15.09

Marks
Marks
11.74 $2.79 3.08
16.62 3.96 4.53
21.11 5.02 7.80
27.35 6.51 7.72
31.86 7.58 5.63
30.88 7.35 4.73
30.04 7.14 3.76
28.43 6.77 3.87

$0.73
1.04
1.88
1.86
1.34
1.13
.89
.92

Without children’ s allowance
1926....................................
1927....................................
1928....................................
1929....................................
1930, first half1
...................

61.36
68.67
66.08
66.96

$14.67
13.96
13.33
13.32

76.27
73.21
71.67
76.63

$18.15
17.42
17.06
18.24

63.61
64.05
60.72
68.10
58.52

$15.01
15.23
14.45
13.83
13.93

Salaried employees
With children*8 allowance

1913 (Prussiaonly)--— __
1924 ...................... ............
1925 ..................................
1926___________________

1930, January to July1___

Marks

Marks

182.95
174.69
169.29
170.17

$43.54 171.57 $40.83
41.58 152.81 36.37
40.29 141.43 33.66
40.50 110.42 26.28

Marks
39.46
79.90
120.54
142.47
181.80
173.20
167.58
166.97

$9.39
19.02
28.69
33.80
43.14
41.22
39.88
39.74

Marks
24.95
30.21
43.83
62.40
88.12
83.07
81.34
80.59

$5.94
7.19
10.43
14.85
20.97
19.75
19.36
19.18

Marks
6.79
6.17
10.72
23.90
47.22
39.38
33.01
35.21

$1.62
1.47
2.55
5.69
11.23
9.37
7.86
8.38

Without children’s allowance
1926___________________
1927 _ _______________
1928 ........................... .......
1929 .................................
1930, January to July1
____

180.12
172.17
166.95
168.04

$42.87
40.98
39.73
39.98

167.11
147.33
135.19
105.66

$39.77
35.06
32.18
25.15

141.36
178.81
170.47
165.00
164.70

$33.64
42.56
40.57
39.27
39.20

1Beneficiaries of Upper Silesian Miners’ Association estimated as of June 30, 1930.

Medical treatment.—In order to forestall permanent invalidity or
restore an insured person’s capacity for work, free medical treatment
or special cures can be granted to the insured, both manual laborers
and salaried employees.

233

GERMANY

Administration

The National Federation of Mine Workers is a self-governing
body, attached to the Federal Insurance Office and under the super­
vision of the Federal Ministry of Labor. It works through the
following agencies: (1) The managing board (Vorstand), which
performs honorary work and appoints directors and employees; and
(2) the general assembly (Hauptversammlung) which is composed
of representatives of employers and employees in the ratio of 2 to 3.
It elects the members of the managing board, whose appointment
requires confirmation by the Federal Minister of Labor.
Statistics of Operation

The number of manual laborers insured on January 1, 1930, was
727,000, and on July 1,1930, 627,000, a decline of 100,000. The num­
ber of salaried employees insured also fell off, although to a less
extent, namely, from 49,080 on January 1, 1930, to about 49,000 on
June 1. The movement in membership and number of beneficiaries
during specific years is shown by the following table:
T a b l e 4 5 . —Membership

and beneficiaries of German miners? insurance funds
Manual laborers
Number of recipients of—

Date

Jan.
Jan.
Jan.
July
Jan.
July
Jan.
July
Jan.
July
Jan.
June
July

Mem*
bership Old-age Invalid­ Wid­
Or­
ows* phans*
ity
benefit benefit benefit benefit
727,767
731,687
648,684
688.956
748,755
736,076
734,543
718,959
702,248
723,724
727,160
656,302
627,283

1,1924.
1,1925.
1,1926.
1,1926.
1,1927.
1,1927.
1,1928.
1,1928.
1,1929.
1,1929.
1,1930.
1,1930.
1,1930.

27,877
31,617
34.086
26,206
28,171
29,651
23,937
23,706
24,061
23,139
23,522
23,508

80,329
99,427
103,384
119,743
128,150
135,365
149,600
157,528
160,256
161,319
166,810
168,761

84,543
92,501
96,379
92,420
91,439
93,047
93,993
94,709
95,386
96,829
98,134
99,196
99,460

86,654
94,944
103,237
107,575
73,902
72,193
69,274
67,260
64,741
62,431
61,913

Total

234.580
295,651
330,660
337,465
311,290
321,561
323,283
335,506
341,361
343.580
344,505
348,387
58,572 350,301

Number
Invalid­ of mem­
ity
bers per
benefit invalidity
units1 benefit
unit
122,985
173,445
199,881
205,195
215,593
226,588
235,267
243,814
251,414
254,904
255,721
261,621
263,659

5.92
4.22
3.25
3.36
3.47
3.25
3.12
2.95
2.79
2.84
2.84
2.51
2.38

Salaried employees
Number of recipients of—

Date

Jan. 1,1924...
Jan. 1,1925_..
Jan. 1,1926...
Jan. 1,1927...
Jan. 1,1928...
Jan. 1,1929...
Jan. 1,1930...
June 1,1930 *
L

Number
Chil­ Old-age of mem­
Mem­
bers per
dren of benefit invalidity
Pre­ Wid­ Or­
bership Old-age mature
old-age units * benefit
ows*
benefit old-age benefit phans* Total bene­
benefit
unit
benefit
ficia­
ries
48,091
49,942
48, m
49,306
49,477
49,029
49,080
49,100

1,663
3,238 7,690
3,705
578 4.734 3,613 12,425
7,168
3,500
10,429
5,812 1,096 5,375 4,169 16,452
8,435
922 5,900 3,478 18,735 2,982 14,636
10,265 1.106 6,161 3,724 21,236 3,763 16,918
693 6,371 3,560 22,025 4,027 17,697
11,401
832 6,553 3,229 22,631 4,143 18,395
12,017
12,522
656 6.734 3,139 23,051 4,296 18,788

12.98
6.97
4.69
3.37
2.92
2.77
2.67
2.61

* Up to June 30, 1926, 1 invalidity benefit unit was equal to 2 widows’ or 5 orphans’ benefits; from July
1,1926,5 widows’ benefits equaled 3 invalidity benefit units and 5 orphans* benefits equaled 1 invalidity
benefit unit.
s Up to June 30, 1926, 2 widows’ or 5 orphans* benefits equaled 1 old-age benefit unit; from July 1, 1926,
5 widows* benefits equaled 3 old-age benefit units, and 2 orphans* benefits equaled 1 old-age benefit unit.
•Partly estimated.

234

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

The per capita outlay for benefit based on the average yearly num­
ber of beneficiaries averages 543.87 marks ($129.51) for manual
workers and 1,374.68 ($317.17) for salaried employees.
Receipts and expenditures.—Keceipts and expenditures for the
two years ending December 31, 1928, and December 31, 1929, respec­
tively, follow:
T able

4 6 .—Receipts and expenditures of German miners1 insurance system,
1928 and 1929
[Conversions into United States currency on basis of mark=23.8 cents]
1928
Item

Manual Laborers’ Old-age Benefit Fund:
Receipts—
Contributions... ................................ ..............
Capital proceeds..............................................
State subsidies___________________________
Profits from stock-exchange transactions........
Miscellaneous..................................................
Expenditures—
Benefits............................................................
Funeral subsidies.............................................
Compensation to widows upon remarriage......
Medical treatment—........................................
Administration................................................
Addition to reserves.........................................
Total reserves.........................................................
Salaried Employees’ Old-age Benefit Fund:
Receipts—
Contributions... . . .... _....................................
State subsidies____ __ ___________________
Capital proceeds..............................................
Profits through stock-exchange transactions...
Refunds from other insurance carriers.............
Expenditures—
Benefits............................................................
Funeral subsidies.............................................
Medical treatment—........................................
Drawn from reserves_______________ __ ___
Addition to reserves_ __ __ . . . _____ . . . ___
_
Administration__________________________
Total reserves.........................................................
Manual Laborers’ Invalidity Benefit Fund:
Receipts—
Contributions..................................................
Capital proceeds..............................................
Profits through stock-exchange transactions...
Subsidies from Federal customs receipts, and
refunds from health insurance office_______
Other subsidies and transfers..........................
Expenditures—
Benefits............................................................
Medical treatment and other invalidity bene­
fits.................................................................
Administration__________________________
Addition to reserves- ______________ _____
Total reserves.._________. . . . . . . __ . . . _________

German
currency

1929
United
States
currency

German
currency

United
States
currency

Marks
Marks
192,000,000 $45,696,000 164,000,000 $39,032,000
5,000,000 1,190,000
6,000,000 1,428,000
50,500,000 12,019,000
1,650,000 '
392,700
800,000
190,400
300,000
71,400
830,000
197,640
176,000,000 41,888,000 178,000,000 42,364,000
1,800,000
428,400
2,000,000
476,000
780,000
185,640
700,000
166,600
4,800,000 1,142,400
5,700,000 1,356,600
7,700,000 1,832,600
8,000,000 1,904,000
7,650,000 1,820,700 26,890,000 6,399,820
127,900,000 30,444,200 154,800,000 36,860,250
30,000,000

7,140,000

1,115,000
650,000
3,390,000

265,370
154,700
806,820

32,000,000
300,000
1,200,000
33,000

7,616,000
71,400
285,600
7,854

1,200,000
24,500,000

285,600
5,831,000

68,500,000 16,303,000
3,500,000
833,000
1,500,000
357,000
1,500,000
3,000,000

357,000
714,000

28,074,000
6.778.000
1.268.000
17,000
3,699,000

6,681,612
1,375,000
301,784
4,046
880,362

32,750,000
298,000
1,273,000

7,794,600
70,924
302,974

3.265.000
1.234.000
27,799,000

777,070
293,692
6,616,162

70,200,000 16,707,600
5,000,000 1,190,000
1,250,000
297,600
3,500,000
1,600,000

833,000
380,800

42,800,000 10,186,400

49,600,000 11,781,000

9,000,000 2,142,000
3,750,000
892,500
20,800,000 4,950,400
74,400,000 17,707,200

10,800,000 2,570,400
4,800,000 1,142,400
14,000,000 3,332,000
88,500,000 21,006,300

235

GERMANY

Cost of administration.—The cost of administration during 1929
is shown in the following table:
T able

4 7 .— Cost of administration of German miners' insurance, year ending
December SI, 1929
[Conversions into United States currency on basis of mark=23.8 cents]
Total cost
Type of insurance

Manual workers’ old-age insurance.....................
Salaried employees’ old-age insurance..................
Manual laborers’ invalidity insurance.................

German
currency

United
States
currency

Marks
8,000,000 $1,904,000
1.234.000
293,692
4.800.000 1,142,400

Per capita cost

Per cent
of receipts
from
German United
contri­
States
currency currency butions
Marks
10.68
25.02
6.01

$2.54
5.95
1.43

3.58
3.64
6.17

S o u r c e s f o r G e r m a n y : Reichsgesetzblatt, Dec. 24, 1924 (pp. 907-S 32), Mar. 27, 1925
(pp. 27, 2 8 ), July 31, 1925 (p. 157), June 28, 1926 (pp. 3 1 1 -3 1 4 ), June 28, 1927 (p. 12 9).
Aug. 5, 1927 (p. 243), Mar. 31, 1928 (p. 116), Apr. 3, 1928 (p. 138), and July 19, 1929
(p. 135) ; Die Angestelltenversicherung, B ericht des Direcktorium s der Reichsversicherungsanstalt fur Angestellte, 1928 and 19 29; Reichsknappschaft, Bericht, 1928 and 1929; and
Socialversicherung oder Sparswang.

83360°—32------16

Great Britain
B y K . A . E gerton ,

of the American Consulate General, London, England

Voluntary Insurance
In 1833 a special department was created in the National Debt
Office for the sale of Government annuities to any person over the
age of five years. The annuities were sold either on the installment
plan or for a lump-sum payment, the rate of which depended upon
the amount of the annuity, ranging from £1 ($4.87) up to £20
($97.33) and later up to £100 ($486.65).8 In 1844 the Postal Sav­
3
ings Bank undertook to sell annuities, immediate or deferred, and
also lump-sum benefits payable at ages 55, 60, or 65 years, or sooner
in the event of death. The success of the system was rather limited.
From 1865 to 1890 only about 21,000 annuities were sold, mostly to
persons who were not wage earners.
Kinds of Old-Age Pensions Now in Operation
There are at present in Great Britain three types of old-age bene­
fits provided for the poorer civilian population.
(1) The first, which dates from 1908, applies to persons over 70
years of age with incomes of less than a stated amount, and are
called old-age pensions. They are straight pensions paid from the
National Exchequer, and vary with the pensioners’ means. Until
1925 they were the only pensions of this type and applied to the
wage earners, small shopkeepers, domestic servants, and lowest-paid
clerical classes.
(2) Since the year 1925, when the second type of pensions came
into being, namely, contributory pensions, the manual wage earners,
domestic servants, and other wage-earning classes have come largely
under the new scheme, leaving under the old-age pension system
originally provided in the old-age pension acts of 1908 to 1924
chiefly the small shopkeeping class.
(3) The contributory pensions acts of 1925 and 1929 provided pen­
sions for workers between the ages of 65 and 70, under the compul­
sory national health insurance schemes. These benefits are paid
from funds collected in contributions from workers and employers,
combined with a small annual Exchequer grant. The acts of 1924
and 1929 not only established these contributory pensions, but also
amended the old-age pension acts, changing the basis on which
a large number of persons over 70 receive the pensions under those
acts. The amendments provide that workers, who have been en­
titled to contributory pensions by virtue of having contributed when
employed, on reaching 70 shall receive, instead of the usual old-age
pension which was dependent on residence in the United Kingdom
8 Conversions into United States currency on basis o f English pound equals $4.8665.
8

236

237

GREAT BRITAIN

and varied according to the annual income of the pensioner, an un­
restricted pension of 10 shillings ($2.43) per week irrespective of
means and irrespective of residence outside the United Kingdom,
provided residence is within a British Dominion or Colony. These
unrestricted old-age pensions, payable to previous recipients of
contributory pensions, are, however, paid out of the old-age pension
grants, and not out oi the “ contributed funds ” of the other scheme.
The table following shows the relation of the three types of
pensions.
T a b l e 4 8 . —Provisions

of old-age pension laws in Great Britain

Beneficiaries
Type of pension

Num­
ber,
1930

Glass

Admin­
istered Source of funds
by—

Law

446,596 C u s ­ E x c h e q u e r Old-age pension acts
grants.
of 1908-1924.
toms
commissioners.
Unrestricted old-age Persons over 70 who 926,735 Minis­ .......do----------- Amendment to old-age
pensions.
pension acts of 1908have made contribu­
try of
Health
tions under contrib1924, passed as part
of contributory pen­
utory pensions
schemes.
sion acts of 1925 and
1929.
Contributory pen­ Workers (and wives) 587,772 „ .d o — Contributory Contributory pension
sions.
acts of 1925 and 1929.
between 65 and 70
fund, and
annual par­
insured under na­
liamentary
tional health insur­
g r a n t of
ance schemes.
£4,000,000.
Restricted old-age
pensions.

Persons over 70 with
less than £50 per
year.*

1

1 Now mostly small shopkeepers who are not “ employed” but are proprietors of their own businesses,
being therefore not insured under the national health and contributory pensions schemes.

Old-Age Pensions Under Acts of 1908 to 1924
After a study of the problem of old age by a number of royal
commissions and departmental committees, an old-age pension act
was passed in 1908, which provided for pensions to the worthy aged
out of the public treasury. This act was amended a number of times,
the most important amendments being made in 1911, 1919, 1924,
and 1925.
Coverage of System

The pensionable age was set at 70 years, and remains that at the
present time. The persons covered were those with incomes of less
than a stated amount, of British nationality, having been subjects
for the past 12 years and residents in the United Kingdom for at
least 12 years since attaining the age of 50, or for 20 years in
the case of naturalized subjects (certain periods spent abroad count­
ing as residence if the person was supporting or helping to maintain
dependents4n the United Kingdom). The “ means ” test has always
been a fundamental part of the system, though the amount of means
has changed, and the amount of the pension increased in 1919 from
5s. ($1.22) to 10s. ($2.43) per week. Originally pensions were paid
to persons with yearly incomes of less than £31 10s. ($153.29) per
annum, which equals 12s. ($2.92) per week. Since 1920 pensions have
been paid to persons with incomes of less than £49 17s. 6d, ($242.72)
per annum, or 19s. 2d. ($4.66) per week.

238

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

The old-age pension act was amended in 1924, by the inclusion O
i
the “ thrift clause,” so called because it was designed to encourage sav­
ings by allowing a deduction, from the total “ means,” as calculated
under the act, of income derived from investments, that deduction
being limited to £39 ($189.79) a year, or £78 (379.59) for a married
couple. Thus, the person who has saved enough for his old age to
have investments which bring him an income of, for example, £60
($291.99) per year, may deduct £39 ($189.79), leaving £21 ($102.20)
as his unet means ” for the purposes of calculating the pension. He
would then be entitled to a pension of 10s. ($2.43) per week, or £26
($126.53) per year, whereas, if the deduction were not allowed, he
would not be entitled to a restricted old-age pension at all, as his
income would be too large to fall within the income groups entitled to
pension under the Jaw.
Persons who have established their right to contributory pensions
(which are discussed later in this report) and who have attained the
age of 70 receive the flat unrestricted old-age pension of 10s. ($2.43)
per week without reference to the “ means ” or United Kingdom
“ residence ” tests.
In the case of a person who is one of a married couple living
together in the same house, his or her means are deemed to be half
of the combined means of the couple; or in other words, when the
yearly “ net means ” of a married couple exceeds the sum of £99 15s.
($485.43) or £1 8s. 4^d. ($9.34) per week, no pension is paid.
The persons covered by the old-age pension acts were originally
(a) wage-earning population, consisting largely of manual workers,
both skilled and unskilled, and domestic servants; and (b) small
shopkeepers and others who are not hired by employers in considera­
tion of a wage, but are proprietors of their own businesses. Practi­
cally all those in the first class will eventually be able to qualify
under the contributory pensions acts for the unrestricted old-age
pension of 10s. per week ($2.43). The majority in the second class,
however, are not affected by the provisions or the national health
insurance acts and have, therefore, no opportunity of becoming
entitled to contributory pensions.
Benefits

Pensions vary with the amount of income of the pensioner and are
now as follows:
T able 4 9 . —Pensions payable under acts of 1908 to 1924 in Great Britain, by

income classes
IConversions into United States currency on basis of shilling-24.3 cents]
Amount of pension per
week
Income class
English
currency

£26 5s. ($127.74) and under................... ...............................................................
Over £26 5s.-£3110s. ($127.74-$153.29)..................................................................
Over £3110s.-£36 15s. ($153.29-$178.84)...................... .........................................
Over £3615s.-£42 ($178.84-$204.39)......................................................................
Over £42-£47 5s. ($204.39-$229.94)........................................................................
Over £47 5s-£49 17s. 6d. ($229.94-$242.72)................................................. ..........
Over £4917s. 6d. ($242.72) .................................................................................

s.
10
8
6
4
2
1

d.
0
0
0
0
0
0

United
States
currency

$2.43
1.95
1.46
.97
.49
.24

GREAT BRITAIN

239

Administration

The old-age pension acts of 1908 to 1924 provide for straight
pensions paid by the State. Annual estimates of the expense of
benefits and administration are made at the time the national budget
is drawn up, and parliamentary grants made in accordance. The
funds are made available as necessary, and balances at the end of the
year carried over and taken account of in the following budget.
The act is administered by the customs commissioners as a part of
their regular duties. The work, which is carried out largely by
specially appointed woman pension officers, is described in the annual
reports of the customs commissioners as follows:
1. To investigate and report to the local pension committee upon claims to
pensions, and also upon questions as to the increase, reduction, or withdrawal
of existing pensions;
2. To give effect to the decision of the pension committee or central pension
authority—
-Ministry of Health for England, Board of Health for Wales, and
Department of Health for Scotland—if the case has been decided on appeal,
whereby a pension is granted, revoked, or altered in rate, and to insure to the
pensioner the means of drawing his pension so long as he remains entitled to it.
This involves visiting the pensioners in their homes, delivering to them their
pension order books, and inquiring as to their continued title to a pension.

The operation of the contributory pensions acts has given to a large
number of persons over 70 already receiving restricted old-age pen­
sions a title to the unrestricted old-age pensions of 10s. ($2.43) per
week. The administration of these unrestricted old-age pensions
has been taken over by the Ministry of Health though they are still
paid from the parliamentary grants under the old-age pension acts
of 1908 to 1924.
Form of claim.—Since the passing of the contributory pensions
acts, a joint form of claim to cover all types of old-age pensions has
been used. Claims are sent in the first instance to the central pen­
sion authority, and any claim not succeeding under the contributory
pensions acts is transmitted to the appropriate pensions officer under
the office of the customs commissioners, to be dealt with under the
old-age pensions acts of 1908 to 1924.
Method of payment.—When a person has established the right to
a pension, he is given a pensions book which he presents at his local
post office. Here the pension is paid to him weekly in advance.
This is done through arrangement with the post office. The pen­
sioner elects the branch post office and must receive his pension regu­
larly at that place.
Statistics of Operation

The number of persons covered by the old-age pension acts of
1908 to 1924 has been increased by the coming into operation of the
contributory pensions acts of 1925 and 1929, owing to the fact that
the “ means ” and United Kingdom “ residence ” tests do not apply
to persons attaining the age of 70 who have received, or would have
been entitled to receive, contributory old-age pensions. It is im­
possible to estimate the number of persons covered by the old-age
pension acts—that is, who are likely in the future to come within
its scope. The number covered for unrestricted pensions by virtue

240

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

of the contributory pensions acts is roughly the same as the numbe
covered for contributory pensions. (See pp. 241 and 243.) It is gen
erally estimated, in the administrative departments concerned, that
the future number of persons likely to be in receipt of restricted
old-age pensions (i. e., who will not be entitled to the “ unrestricted ”
pensions to which contributory pensioners are admitted), will be
between a half and three-quarters of a million for Great Britain,
being chiefly of the small shopkeeping class.
T able 5 0 . —Persons in receipt of old-age pensions in Great Britain, in specified

years
[Conversions into United States currency on basis of shilling* 24.3 cents]
Number of persons over 70 in receipt of pensions,
last Friday in MarchKind of pension
1914
Restricted old-age penions of—
10 shillings ($2.43) __________ ___________ ______
8 shillings ($1.95)_____________________________
6 shillings ($1.46)_____________________________
5 shillings ($1.22).....................................................
4 shillings ($0.97).......... ...........................................
3 shillings ($0.73).....................................................
2 shillings ($0.49)........................................... ........
1 shilling ($0.24)...................... ................................

1929

986,843
7,190
6,395
71

738,646
1 >142
6
15,202
7,702
4,237

Total....................................................................

1925

926,287
7,690
6,559

5,759
7

5,922

901,263
7,943
6,854
2
6,197

3,508
911

3,318
1,015

3,415
1,061

781,929

1,010,684

950,795
366,584

926,735
446,596

781,929

1,010,684

1,317,379

1,373,331

Unrestricted old-age pensions of 10 shillingj ($2.43)1
.....
Grand total_______________________________

1930

* Pensions are also paid under the contributory pensions acts to persons between 65 and 70 years, but
these are paid from the contributory pensions fund and are dealt with in a later section (p. 242).

Receipts and expenditures.—The following particulars regarding
receipts and expenditure for old-age pensions under the old-age pen­
sion acts of 1908 to 1924, are taken from the published financial
accounts of the British Exchequer for the fiscal year ended March
31, 1930:
T a b le 5 1 . —Receipts and expenditures under old-age pension acts of 1908 to

1924 in Great Britain for fiscal year ended March 81,1980
[Conversions into United States currency on basis of £=$4.8665]

Item
Receipts:
Balance of former years unissued from Exchequer— _____________
Grants for year 1929-30________________________ ______________
Total.............................................................................................

English cur­
rency

United States
currency

£100,000
35,537,000

$486,650
172,940,811

35,637,000

173,427,461

Expenditures:
Total issues in year___ ______ _______________________________
Surplus balances written ofl...................... ........................................
Balances of grants unissued from Exchequer on Mar. 31,1930______

34,938,615
148,385
550,000

170,028,770
722,116
2,676,575

Total.................. ...........................................................................

35,637,000

173,427,461

241

GREAT BRITAIN

Cost of administration.—The latest available figures showing the
cost of administration of old-age pensions are those for the year
ended March 31, 1929. During that year administrative expenses
were £877,033 ($4,268,081), while benefits amounted to £32,829,797
($159,766,207), a total of £33,706,830 ($164,034,288). The total num­
ber of persons receiving benefit that year was given as 1,417,000; thus,
the per capita administrative expenses were 12s. 4%d. ($3.01) and
the per capita benefit £23 3s. 4%a. ($112.75) per annum, or 8s. lid.
($2.17) per week.
Estimates for the years 1929-30 and 1930-31 are as follows:
T a b le 5 2 .—Estimated cost o f old-age pensions in Great Britain for 1929-80 and

1930-SI
IConversions into United States currency on basis of £=$4.8665]
1929-30
Item

1930-31

English cur­ United States English cur­ United States
rency
currency
rency
currency

Pensions________________________________
Administration__________________________
Total.......................................................

£35,500,000 $172,760,750
40,000
194,660
35,540,000

172,955,410

£36,500,000
39,000

$177,627,250
189,794

36,539,000

177,817,044

Contributory Insurance
As a result of widespread dissatisfaction with the age and means
limits above quoted, the widows’, orphans’, and old-age contributory
pensions act was passed in the early part of 1925, and became a law
on September 7 of that year.
Contributory pensions are provided for by the acts of 1925 and
1929, entitled “ Widows’, orphans’, and old-age contributory pen­
sions acts.”
Coverage of System

The workers affected are those who are compulsorily insured under
the national health insurance acts which have been in operation
since 1911. These acts embrace all manual workers and domestic
servants, whatever their incomes, and also all nonmanual wage
earners whose incomes do not exceed £250 ($1,217) per annum, or
9s. 7^d. per week ($2.34). The latter class consists chiefly of clerks
and shop assistants. (Exception is made of certain workers in rail­
ways and in the employ of local government bodies, for whom equally
favorable provision is made for health and pensions insurance.)
Those who are not manual workers, but who have at one time received
less than £250 ($1,217) per annum, thus coming within the com­
pulsory insurance scheme, may voluntarily continue to be insured
under the national health insurance acts, and also under the con­
tributory pensions scheme, if they later receive more than £250
($1,217) per annum.
Type of Law

The contributory pensions scheme is so closely connected with the
national health insurance scheme that some explanation of the latter

242

PENSION’S AND INSURANCE IN FOREIGN COUNTRIES

is necessary. The national health insurance acts, like the unemploy­
ment insurance acts, provide for contributions (a) from employers
and (b) from wage earners. These contributions, together with a
grant from the National Exchequer, form the funds from which the
benefits are paid and administrative expenses met. The contributory
pensions scheme entails the collection of similar contributions, and
these collections are made through the same channels and at the
same time as the health insurance contributions. Contributions are
paid in the form of stamps purchased from the post office. Each
worker has a card to which the stamps are affixed. The responsibility
of assuring that these stamps are so affixed rests with approved
friendly societies, about which a word of explanation is here needed.
At the time of the passing of the national health insurance acts,
there were in existence a large number of friendly societies which
were private, cooperative, and mutual-benefit societies with a large
membership among the working classes. They collected weekly
contributions from members and paid sickness, burial, and other
benefits to their contributors in times of need and emergency. They
also acted as savings societies in various ways. The societies were
given the task of administering the collection of health insurance
contributions and, to some degree, the payment of sick benefits.
Every wage earner belongs to an approved friendly society, which
he may select. The societies are registered by a Government reg­
istrar, are subjected to periodical actuarial valuation of their assets,
and generally controlled rigidly in order that the interests of their
members may be fully protected.
Contributions

Since this machinery has proved on the whole satisfactory ana
economical in the administration of the health insurance scheme, it
was decided to make the collection of contributions for contributory
pensions also through the friendly societies. To make for simplifica­
tion, health and pension contributions are now paid weekly in one
stamp. The contributions are as follows: For a man the total con­
tribution is Is. 6d. (36 cents) per week, 9d. (18 cents) being paid by
the worker and 9d. (18 cents) being paid by the employer; of this,
9d. represents the contribution for health insurance and 9d. the con­
tribution for old-age, widows’, and orphans’ pensions. For a woman
the total contribution is Is. Id. (26 cents) per week, 7d. (14 cents)
being paid by the employer and 6d. (12 cents) being paid by the
worker; of this, 4^d. (9 cents) represents the contribution for pen­
sion and 8^d. (17 cents) the payment for health insurance.
In addition to the funds so collected, the sum of £4,000,000
($19,466,000) is paid annually from the National Exchequer. This
annual grant has been made for a period of 10 years, beginning 192627, thereafter to be determined by Parliament.
Benefits

It should be noted that the contributory pensions scheme provides
not only for pensions which may be called “ old-age pensions,” i. e.,
those paid to workers between the ages of 65 and 70 (after which
they pass on to the old-age pensions under the acts of 1908 to 1924

GREAT BRITAIN

243

with unrestricted old-age pensions of 10s. ($2.48) per week), but
also for widows’ and orphans’ pensions.
The old-age pensions under the contributory pensions acts are
payable to insured men and women between the ages of 65 and 70
and to the wives between 65 and 70 of men who are entitled to con­
tributory pensions. The pensions are conditional upon the duration
of insurance under the acts, the number of contributions, and resi­
dence in the British Empire (under the law of 1925, residence in the
United Kingdom was a condition, but by the law of 1929, pensions
are payable to persons insured in the United Kingdom but resident
afterwards in the Dominions or Colonies of the British Empire).
The amount of the benefit is 10s. ($2.43) per week. Widows’
pensions amount to 10s. per week to which is added 5s. ($1.22) al­
lowance per week for the eldest child and 3s. (73 cents) per week
for each other child. Full orphans of an insured parent or insured
parents are entitled to 7s. 6d. ($1.83) each per week up to the age
of 14 years, or 16 if attending school.
Administration

Contributory pensions are administered by the Ministry of Health.
Contributions are collected in conjunction with health insurance
contributions through approved friendly societies, and benefits are
paid through the post office in the same manner as old-age pensions
payable under the old-age pension acts.
Statistics of Operation

The number of persons covered by the contributory pensions is
difficult to estimate, since the widows and orphans of insured men
and the children ox insured women are covered by benefits but do
not make contributions. Even the number covered for old-age pen­
sions alone is not easy to estimate, since the wives between 65 ana 70
of insured men are covered. In 1928 there were about 16,500,000
persons entitled to health benefits under the health insurance acts.
Koughly, the same number of persons are insured for contributory
pensions; but a somewhat smaller number would be said to be
covered for contributory old-age pensions, since the total number
of beneficiaries includes widows and orphans.
The number of persons between 65 and 70 receiving benefits in
Great Britain was 587,772 on March 31, 1930 and the amount per
person during the first year when the scheme has been in full opera­
tion was £26 ($126.53) per annum, or 10s. ($2.43) per week.
Receipts and expenditures.—The accounts of the contributory pen­
sions fund for the year ended March 31, 1930, are to be found in
the eleventh annual report of the Ministry of Health, 1929-30. These
figures apply to England and Wales only; the Scottish account is
not yet available.
The total receipts from contributions for England and Wales in
the year ended March 31, 1930, was £21,637,000 ($105,296,461).
Additional funds were received from the Treasury pensions account
(where the annual parliamentary grant of £4,000,000 and any sur­
plus funds are placed to be handed over when needed), amounting
to £3,170,000 ($15,426,805), bringing the total receipts to £24,807,000

244

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

($120,723,266). Expenditures were £22,613,000 ($110,046,165) iox
all contributory pensions paid—£13,228,500 ($64,376,495) for oldage pensions and the remainder for widows’ and orphans’ pensions.
Administrative expenses were £975,000 ($4,744,838). The sum of
£930,000 ($4,525,845) was returned to the Treasury pensions account
as not needed for expenditure during the current year; balances at
the first of April, 1929, and estimated for the end oi March, 1930, of
£102,500 ($498,816) and £186,500 ($907,602), respectively, bring the
total payments from the fund to £24,807,000 ($120,723,266). Funds
held in the Treasury pensions account are invested by the Treasury
and the interest is credited to the account.8
4
Costs and benefits.—Owing to the fact that widows’ and orphans’
pensions are a part of the contributory pensions scheme for
which the grant of £4,000,000 ($19,466,000) is made annually, and
which is paid for and administered as one scheme, it is impossible to
estimate the cost of administration for the contributory old-age
pensions (for persons 65 to 70 years) which are a part of it. Fur­
thermore, it should be pointed out that it is impracticable to estimate
the per capita cost of administration of the whole of the contribu­
tory pensions scheme since the work of collection of contributions is
combined with that of the collection of health insurance contribu­
tions and is done by the approved friendly societies. The cost of
administration of these societies can be ascertained, but only a frac­
tional part of their running expenses can be attributed to the
collection of contributions for contributory pensions. On the other
hand, if this machinery did not exist, it would undoubtedly add
considerably to the cost of administration of such a scheme.
For the year ended March 31, 1929, the administrative expenses
of the whole contributory pensions scheme, apart from the expenses
of collection of contributions by approved friendly societies, may be
roughly estimated as follows:
T able 5 8 . —Administrative expenses and benefits paid under contributory insur­

ance system in Great Britain, year ended March 81, 1929 a
[Conversions into United States currency on basis of £=$4.8665]
Benefits paid
Item

English cur­
rency

United States
currency

Number of
pensioners

Contributory pensions____________________________
Unrestricted old-age pensions______________________

£22,613,000
*9,935,000

$110,046,164
48,348,678

1,345,151
391,941

Total.....................................................................

32,548,000

158,394,842

1,737,092

Administrative expenses of Ministry of Health for
contributory pensions scheme...__________________

975,000

4*744,838

• Figures relate to England and Wales only; data for Scotland not yet available.
bEstimated in accordance with suggestion of Ministry of Health, by taking the number of pensions,
multiplying by £26, and deducting fyi per cent from the result. Number of persons for England and Wales
estimated by deducting 16 per cent of total, as probable number for Scotland, from figure for Great Britain.
84 Unrestricted old-age pensions paid to persons over 70, by virtue o f their title to con­
tributory pensions, are not paid from the funds set out above, though administered by the
M inistry o f Health. Such pensions are paid as straight pensions from the annual parlia­
mentary grants for old-age pensions under the acts o f 1908 to 1924. (See p. 237.)

GREAT BRITAIN

245

The administrative expense was therefore 11s. 5d. ($2.78) per per­
son receiving a pension.
S o u r c e s f o r G r e a t B r i t a i n : Old-age pensions acts, 1908 (8 Edw. 7, ch. 40), 1911
(1 & 2 Geo. 5, ch. 16), 1919 (9 & 10 Geo. 5, ch. 102), and 1924 (14 & 15 Geo. 5, ch. 33) ;
Widows* orphans’, and old-age contributory pensions acts, 1925 (13 & 16 Geo. 5, ch. 70)
and 1929 (20 Geo. 5, ch. 10) ; Explanatory leaflets (O. A. P. 107 and W. P. 5-G ) ; House
of Commons, Question and Answer No. 1086/1930. July 29, 1930; Ministry of Health
reports— Widows’, orphans’ , and old-age contributory pensions bill, 1929, memorandum
explanatory of the bill (Cmd. 3412), Seventh annual report, 1925-1926 (Cmd. 2724), and
Eleventh annual report, 1929-1930 (Cmd. 3667) ; Department of Health for Scotland,
First annual report, 1929 (Cmd. 3529) ; Commissioners of Customs and Elxcise, Twentieth
report, for year ended Mar. 31, 1929 (Cmd. 3435) ; House of Commons Papers No. 49
(Widows’ , orphans’ , and old-age contributory pensions act, 1925—Accounts 928) and
No. 101 (Public social services— Total expenditure under certain acts of Parliament) ;
Statistical Abstract of the United Kingdom, 1930; and Handbook of widows’ , orphans’,
and old-age contributory pensions, by T. P. McDonald and George Davie (Edinburgh,
William Hodge & Co., 1930).

Greece
By

E d w in A . P u

tt

,

American, Consul, Athens

In Greece, accident, disability, and old-age insurance covers wage
earners and salaried employees, and seamen. Compulsory insurance
of wage earners and salaried employees was provided for by a decree
of December 8, 1923, and that of seamen by an amended decree of
October 18, 1922.
Wage Earners’ and Salaried Employees* Insurance System
Coverage of System

All persons working, other than independently, for remuneration
in any industry, handicraft, commercial enterprise and establish­
ment, including building and transportation companies, are subject
to compulsory insurance. Persons engaged in home industries may
apply for voluntary inclusion in this insurance but are not compelled
to do so.
Contributions

The resources of the insurance are derived from compulsory con­
tributions in the proportion of not less than 3 nor more than
6 per cent of the wages or salaries of the insured (unless the enter­
prise employing them agrees to make contribution at higher rates)
on the basis of equal contribution by the employer.
Benefits

The insured risks are sickness, disability, old age, and death, pay­
ments being made in case of illness of a insured worker or em­
;n
ployee, and a pension or lump sum in the event of disability, old age,
or death.
Aside from the actually insured worker or employee, benefits are
also granted to (a) the undivorced widow and legitimate minor
children of a person insured, and ( b ) adult children who are infirm
and dependents of the insured. The minority of children, for the
receipt of benefits, terminates at the age of 15 years for boys and
20 years for girls. Infirmity is established by a decision of the
governing body of the insurance fund on the basis of medical
reports.
Where there is a widow or minor children, all other classes of
persons who might otherwise be entitled to benefits are excluded.
Where there is no widow or minor children, benefits are payable to
the parents, brothers, or sisters of the insured, and in case of ab­
sence of all of the foregoing, to the grandparents of the insured.
246

247

GREECE

Administration

Insurance is paid from (1) special funds of enterprises, (2) pen­
sion funds of workers’ organizations, (3) pension funds of mining
enterprises, and (4) State pension funds.
The establishment and administration of every insurance insti­
tution (or fund, as it is commonly called) is subject to control and
supervision by the State through the Ministry of National Economy,
Each of these insurance funds or institutions constitutes a legal
body which is governed by rules and regulations prepared by a
workers’ insurance supervising council and approved by the Ministry
of National Economy.
The council (a) determines rates of contribution, (&) regulates
the administration of funds, (< regulates the investment of funds,
?)
and (d) is responsible for the safeguarding of the funds. To pro­
vide retirement insurance there are over 30 retirement funds operat­
ing in Greece.
Statistics of Operation

In regard to the number of persons covered, persons receiving
benefits, receipts and expenditures, etc., recent figures are not avail­
able. A tabulation made by the Government Bureau of Statistics
for the period 1927-28, which, however, includes civilian employees
of the Government as well, is here shown.
T a b le 5 4 .—Number o f persona insured in social insurance organisations and of

persons receiving pensions in Greece, 1927-28
Num­ Number Persons
ber of of in­ receiving
funds sured pensions

Class

Funds against old age, disability, and death____________________________
Funds against old age, disability, death, and sickness_______ -_. . . . . . . . . ___
Funds against old age, disability, death, and unemployment____ . . . . . . . . . __

39
1
1

149,371
147
42,407

22,604

Total.......................................................................................................

41

191,925

22,676

in

Greece,

T a b le 5 5 . —Financial statement o f social insurance organizations

72

1927-28
^Conversions into United States currency on basis of drachma=1.3 cents]

Class

Organizations operating under law 2868—
Organizations operating under special laws.
Special funds (public employees, officers,
and sea workers).— ________________
Total_______ ___________________

Total receipts
Total payments
Num­
ber of
funds Greek currency United Greek currency United
States
States
currency
currency
Drachmas
24 152,568,111.86 $1,983,385
5 103.934.622.30 1,351,150
12 244.352.509.30 3,176,583

Drachmas
36,817,169.56
45,352,407.75

156,803,985.30 2,038,452

41 1500,855,246.46 6,511,118 238,973,562.61

i This is not the exact sum of the items but is as appears in the original.

$478,623
589,581
3,106,656

248

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Seamen’s Insurance System
Coverage of System

The insurance of Greek merchant marine seamen is provided for
by law 3347 as codified.3 This legislation embraces all registered
5
seamen employed in the Greek merchant marine.
Contributions

Resources for the insurance of seamen are derived from compul­
sory contributions, paid by all classes of seamen and ranging (for the
year 1931) from 3 to 30 drachmas (3.9 to 39 cents) per month, accord­
ing to their classification; a special assessment, ranging from 150 to
1,000 drachmas ($1.95 to $13.00) in case of marriage; sale of service
books and other printed matter, such as licenses and diplomas; and
(since May 15, 1930) contributions by the shipowners of an amount
equal to that paid by the men.
Benefits

The insured risks are old age, disability, and death. In the case
of disability or old age, either a pension or a lump-sum indemnity
is given. In case of death a pension is given to the beneficiary of
the insured.
The law specifies the following classes of beneficiaries: (1) Those
retiring from service at the age of 55 after 25 years’ active service;
(2) those retiring from the navy and port administration groups
after at least 15 years’ active service; (3) those retiring because of
accident due to active service; (4) those retiring because of disabil­
ity other than an accident, after 10 years’ active service; (5) the
widow and orphans of a seaman dying while on active service (this
includes male children up to 18 years of age and female children up
to the time of their marriage); and (6) in the absence of widow and
orphans, the benefits accrue to an invalid father, and in the absence
of the latter to the mother, and in the absence of the mother as well,
to the seaman’s brothers up to the age of 18, and to his sisters up to
their marriage, when the seaman died as the result of an accident
after at least 10 years of active service.
In the law the benefits payable are defined as follows:
(a) For beneficiaries of class 1, above, the benefit is one twentyfifth of the basic sum of the pension multiplied by the number of
years served.
(5) For those of class 2 above, the benefit is one twenty-fifth of
the basic pension multiplied by the number of years served. For
more than 25 years’ service and retirement under 50 years of age, the
increase of the basic pension will not be taken into consideration.
(<?) For those of class 3 above, the benefit is one twenty-fifth of
the basic pension multiplied by tne number of years served, but not
less than the basic pension. For the partially disabled the benefit
amounts to one twenty-fifth of the basic pension multiplied by the
number of years served, except in the case of less than 25 years’
» Decree of Oct. 18, 1922.

249

GREECE

♦service when the pension is made equal to one-half of the basic pen­
sion increased by one-thirtieth thereof for each year’s service in
excess of 10. If the beneficiary has served only a few days, his cor­
responding monthly contribution is considered the average limit. If
he has served under 10 years, the monthly average limit is deter­
mined by dividing the total contribution paid by the total number of
months served.
(d) For those of class 4 above, in the case of total disability, the
benefit is one-half of the basic pension increased by one-thirtieth
thereof for each year’s service over 10. In the event of partial dis­
ability, the benefit is one-third of the basic pension increased by two
forty-fifths thereof for each year’s service over 10.
(e) To the widow and other beneficiaries of class 5, 70 per cent of
the husband’s pension is granted, increased by 10 per cent for each
(/) For the orphans of class 5 and the beneficiaries of class 6, 55
per cent of the pension of the deceased father is granted. For each
additional orphan this pension is increased 15 per cent.
(g) For the other beneficiaries of classes 5 and 6 (i. e., parents,
brothers, etc.) the benefit is 50 per cent of the deceased’s pension for
3 or more brothers, 40 per cent for 2 brothers, and 30 per cent for only
1 brother.
Further, if the deceased seaman was pensioned on account of par­
tial disability, the survivors’ pension is computed on the basis of total
disability.
A pension granted to the father of a deceased seaman may be
apportioned equally between the father and mother by decision of
the council of the Seamen’s Invalidity Fund.
Administration

The whole scheme is administered by the Seamen’s Invalidity
Fund.
Statistics of Operation

Figures are not available in regard to the number of persons cov­
ered and persons receiving pension.
The following table shows the receipts and expenditures for the
years 1927,1928, and 1929:
T able 5 6 . —'Total amount of receipts and expenditures for 1927, 1928, and 1929

under seamen's insurance fund in Greece
[Conversions into United States currency on basis of drachma=1.3 cents]
Receipts
Year
Greek currency

1927 ................................................................ .
1928................... ............................................ 1929...................................................................

Drachmas
37,150,097.01
37,187,864.41
50,291,882.88

Expenditures

United
States
currency

$482,951
483,442
653,794

Greek currency

Drachmas
34,426,834.01
36,174,368.25
37,559,988.95

United
States
currency

$447,549
470,267
488,280

Greenland
By E. Gje s s in g , American Vice Consul, Copenhagen, Denmark

General Pension System
Old-age pensions are granted to the native inhabitants of Green­
land (not white persons) in accordance with a regulation issued by
the Minister of the Interior to the Director of’ the Danish State
Monopoly of Greenland.
According to this regulation, an Eskimo (or Greenlander) is en­
titled to an old-age pension at the age of 55, if it be found that he is
unable to provide for his wife and children under the age of 16, and
provided that he has not, during the five years preceding his applica­
tion, been sentenced for the commission of an act which is odious in
public opinion, that he has not squandered his substance for the
purpose of obtaining an old-age pension, has not led a dissolute
life during the preceding five years, and has not received poor relief
during the preceding three years.
Application for old-age pension must be made, in writing, to the
council for the district in which applicant resides. If the application
is found to be in order as to formalities and facts, the pension is
granted, the amount being fixed by the council according to the
needs of the applicant.
For each old-age pension granted, the State refunds to the district
council 100 kroner ($26.80)8 annually for single persons and 150
6
kroner ($40.20) for married couples.
Appeal from the decision of the district council can be taken to
the Governor of Greenland, and his decision can be appealed to the
Minister of the Interior of Denmark.
Of a total Eskimo population in Greenland of approximately
10,000 persons, 500 were granted old-age pensions during the cal­
endar year 1929. The total amount of pensions paid was 51,063
kroner ($13,685), making an average to each pensioner of approxi­
mately 102 kroner ($27.34). This amount seems to suffice for the
maintenance of the usual living standard of these quite primitive
people. They own their own houses and are entitled to the yield
of the hunt and fishing after the grant of old-age pensions.
S ource fob G r e e n l a n d :

land, Nr., 1926.

Beretninger og Kundg0relser vedr0rende Styrelsen a £

** Conversions into United States currency on basis of krone equals 26.8 cents.

250

G r0 n -

Isle of Guernsey
By J o h n H. B r u i n s , American Consul, Southampton> England

General Pension System
Coverage o f System

The old-age pension law of the Isle of Guernsey, passed in 1926,
provides a straight, noncontributory pension for all persons aged 70
and over meeting the following requirements: The applicant must
have been a British subject for at least 10 years preceding the date of
the first pension payment, and must, if he is a native-born British
subject, have lived in the Isle of Guernsey for 12 years after attaining
the age of 50. If he is a naturalized subject, he must have lived in
the Isle of Guernsey for an aggregate period of at least 20 years
after reaching the age of 45. Provision is made for women who have
lost their status as British subjects through marriage with aliens, and
there are careful specifications as to what absences may be permitted
without being counted as breaks in the required periods of residence.
The applicant must present proof that his yearly means do not exceed
£40 ($194.66).8
7
An applicant is disqualified, even though he satisfies the above
conditions, if and while he is an inmate of a poor-law institution or
an insane asylum, certain exceptions being made in favor of those
receiving temporary treatment, and he is also disqualified if, before
reaching the pensionable age, he has “ habitually tailed to work ac­
cording to his ability, opportunity, and need, for the maintenance or
benefit of himself and those legally dependent upon him.” The pen­
sion will not be paid him while he is in confinement for an offense
committed after it has been awarded him, nor for a specified period
after his release, the length of the period depending upon the nature
of the offense.
Benefits

The benefits under the pension are in accordance with the following
schedule, the maximum pension being 8s. ($1.95) per week.
Conversions into United States currency 011 basis o f pound equals $4,8665; shilling,
24.33 cents.

251
83360°—32------17

252

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

T a b l e 5 7 . —Schedule

of weekly benefits under old-age pension system of Isle c
Guernsey

[Conversions into United States currency on basis of £=$4.8665; shilling=24.33 cents]
Weekly pension
Yearly means of claimant or pensioner

United
British
States
currency currency
Shillings

Up to £12 ($58.40)............................................................................................................
Over £12 ($58.40) to £16 ($77.86)....................................................................................
Over £16 ($77.86) to £20 ($97.33).....................................................................................
Over £20 ($97.33) to £24 ($116.80)................................................................................ .
Over £24 ($116.80) to £28 ($136.26)................................................................................ .
Over £28 ($136.26) to £32 ($155.73)..................................................................................
Over £32 ($155.73) to £36 ($175.19).................................. ...............................................
Over £36 ($175.19) to £40 ($194.66)................................ ................................................

8
7
6
5
4
3
2
1

$1.95
1.70
1.46
1.22
.97
.73
.49
.24

Adm inistration

The administration of the pension system is in the hands of the
States Old Age Pensions Authority, which is a committee appointed
by the “ States.” The latter term refers to the Legislative Assembly
of Guernsey, this body also having certain judicial powers. The
committee is composed of the president and six members. In addi­
tion there is an administrator of pensions appointed by the States
appointments board. The position of administrator is a salaried one.
Statistics o f Operation

No official data are obtainable regarding the number of beneficiaries,
receipts and expenditures, cost of administration, etc. However, on
the basis of the population of the Isle of Guernsey, which in 1921 was
40,529, and the fact that no person of less than 70 years is entitled
to a pension, it is estimated that the beneficiaries would not number
more than 500. In view of the schedule cited above, it is estimated
that the average weekly benefit per person is between 6s. and 7s., or
about $1.50. While the cost of administration is not known, it is
understood that there are only two persons regularly employed, on
a salary basis, in distributing the pensions.
S o u r c e s f o e I s l e op G u e r n s e y : Ordre en Conseil, Apr. 12, 1926, and July 28, 1928;
Ordonnance de la Cour Royale, June 5, 1926, Oct. 23, 1926, and May 7, 1927.

Hungary
By J o h n H. M o r g a n , American Consul, Budapest

The first important measure introducing social insurance in Hun­
gary was Act No. 14 of 1891, enforcing compulsory sickness insurance
for all wage-earning employees of registered commercial and indus­
trial undertakings, railway, postal, and telegraphic services, and
shipping and forwarding companies.
Act No. 19 of 1907 modernized and unified the compulsory sickness
insurance system and supplemented it by instituting compulsory
accident insurance for all persons covered by sickness insurance.
The act also required compulsory insurance ot salaried employees.
Act No. 21 of 1927 centralized the organization of social insurance,
widened the scope of sickness and accident insurance, improved the
system of benefits, and, with the exception of the sickness insurance
fund of the private employees handled by the Private Employees’
Insurance Institute, merged all funds into a new central body, the
National Workers’ Insurance Institute.
Wage Earners' and Salaried Employees’ Insurance System
Act No. 40 of 1928, which came into force on January 1, 1929,
supplemented the insurance system by invalidity and old-age in­
prance for all employed persons irrespective of age, sex, or national­
ity. Private sickness, accident, and invalidity and old-age insur­
ance are permitted in certain branches of industry, but they must
provide benefits at least equal to those of the Government system.
The act of 1928 completed and unified the various types of social
insurance of Hungary, and from October 1,1928, the National Work­
ers’ Insurance Institute adopted the name 6 Hungarian National
4
Social Insurance Institute.” This institute incorporates in a single
legal, organic, and material unit the three branches of compulsory
social insurance—accident insurance, old-age insurance, and invalid­
ity insurance—and is authorized to utilize the funds of all three
branches of insurance, which are regarded as inseparable and de­
pendent on each other as regards final surplus or loss, success or
failure.
Declarations concerning employees and workers liable to insur­
ance are made by the employers on the same report blank for the
three branches of insurance. Assessments and payments of the re­
spective contributions are single administrative operations. Admin­
istration, expenditures, and social-hygiene measures in connection
with all three branches are under unified supervision. The insur­
ance funds received from salaried employees and from manual work­
ers, however, are kept separate. Thus the various types of insur­
ance are handled as a unit for each of the two social groups, but the
253

254

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

financial affairs of each group are managed independently. Two
committees, one for the workers and the other for the employers,
have been established, thereby making full provision for the adjust­
ments necessary in view of the special conditions of private em­
ployees as regards benefits, administration, management, and medical
and health services.
Coverage o f System

All undertakings, public and private works, offices, and occupa­
tions covered by the sickness insurance act (Act No. 21, 1927) art
also liable to old-age, invalidity, and widows’ and orphans’ insurance
The exceptions are: State, city, and other community offices anr
institutions, and commercial and industrial undertakings under theL
management; employees of the National Defense, Gendarmerie,
Customs Guards, River Gendarmerie, Royal Castle Guard, Royal
Crown Guard, and Parliament Guard; also clerks and employees
of authorized and approved pension funds, employees of public
utilities under Government supervision which provide pensions
for their employees, clergymen, members of Postmasters’ and Mail
Employees’ Pension Institute, employees of the Hungarian National
Bank, notary public and attorney candidates, and private employ­
ees who are members of approved private pension institutes, sal­
aried employees receiving more than 500 pengo ($87.45)8 per month,
8
or 6,000 pengo ($1,049) per year; apprentices, junior clerks, etc.,
receiving training without monetary remuneration or payments in
kind. Secondary occupations and services rendered by members of
families without compensation or for compensation so small as to be
insufficient for a living are also exempted. The recognized mem­
bers of families are the following: Wife, legal or legally adopted
children, stepchildren, grandchildren, parents, grandparents, and
brothers or sisters of the insured person maintained from his own
income. The law is not applicable to employers and employees en­
gaged in agriculture and forestry, animal breeding, fishery, garden­
ing, and viniculture.
The following are compulsorily covered under the law: All per­
sons (other than those in the above-mentioned excepted classes)
engaged by an employer to work for regular payments or for any
other valuable consideration; home workers; Hungarian employees
working in foreign countries for Hungarian employers; household
servants and other household employees rendering personal services
for fixed wages (janitors, housekeepers, nurses, readers, companions,
coachmen, chauffeurs, etc.); newsboys and news carriers; indentured
apprentices (even if members of the family) or other family members
whose output of work equals that of other regular workers; junior
clerks and all other classes of employees receiving training and being
paid compensation in money or kind; salaried employees receiving
less than 500 pengo per month, or 6,000 pengo per year.
Miners were formerly covered under a system of their own, but
this has now been incorporated into the general system, though
•* Conversions into United States currency on basis o f pengo equals 17.49 cents.

HUNGARY

255

still retaining its former provisions as to contributions, benefits, etc.
(See p. 262.)
The coverage of the law may be extended hj the Ministry of Social
Welfare and Labor to occupations not mentioned in the law, even
if they are exempted from sickness insurance, unless specifically
excepted by the terms of the law.
No one can be insured under the provision of this law more than
once. Liability covers the main occupations, secondary or auxiliary
occupations being excepted, and begins at the moment work is begun
and ends at the termination of employment.
Persons who are qualified for voluntary sickness insurance are
eligible for voluntary old-age and invalidity insurance irrespective
of sex and nationality.
Contributions

Insured persons and their employers contribute in equal shares, cal­
culated on a system of capitalization of contributions with interest
at 4 per cent per annum. Beginning with the fiscal year 1938-34
the State will contribute an annual subsidy of 4,000,000 pengo
($699,600) to the insurance funds and will increase the subsidy
5 per cent per annum during 50 consecutive years. From 1983 to
1984 the State subsidy will remain fixed. Besides contributing
2,200,000 pengo ($3,847,800) per annum to the budget of the National
Social Insurance Institute, the State will pay 1,000,000 pengo
($174,900) a year to cover the cost of administration of the old-age
and invalidity insurance branch of that institute and of the Private
Employees’ Insurance Institute.
The contributions fixed at this rate cover all benefits, the cost of
preventive measures and medical treatments, and general administra­
tive expenses.
Every five years the Minister of Social Welfare and Labor will
have an audit made to ascertain whether there has been any change
in the position of the insured that may call for a revision of the
rate of contribution.
Contributions are paid either on the basis of actual remuneration
or according to schedules of daily-wage classifications. Assessments
of contributions on the basis of actual remuneration can not exceed
4 per cent of the payments received by wage earners, while the
income of salaried employees can not be assessed on this basis higher
than 5 per cent of their salaries. In the case of daily-wage schedules
assessed contributions may not exceed 3.5 per cent of the average
daily wage of wage earners and 4.3 per cent of the average daily
salary of salaried employees.
The limits of daily-wage schedules, the average daily wage of each
classification, and the contributions in each schedule are fixed by
the Ministry of Social Welfare and Labor.
Under a ministerial decree dated January 1, 1929, the following
basic schedule is in force, except for those who come under the classi­
fication of section 4 of Act 40 of 1928 (salaried employees with
monthly earnings of not to exceed 500 pengo ($87.45) or annual
earnings of 6,000 pengo ($1,049.40).

256

PENSIONS AND INSURANCE IN FOREIGN COTJNTBIES
5 8 . — Schedule of wage classes and contributions for wage earners under
old-age insurance system in Hungary

T able

[Conversions into United States currency on basis of pengo= 17.49 cents]
Average daily wages
upon which con­
tribution is based

Wages per day

Contributions
per d a y 1

Wage class
Hun­
garian
currency

United
States
currency

United
Hun­
Hun­
United
States
States
garian
garian
currency currency currency currency

Pengd

Pengd

Pengd

Class I ______________________________ Up to 1 Up to $0.17
1-2 $ -. 17- . 35
0
Class II................................................— ..................
2-3
. 35- . 52
Class III__________ ___________ ____
3-4
. 52- . 70
Class IV ................. ..................... .........................
4-5
. 70- . 87
Class V .................................... ........................ .
5-6
. 87-1.05
Class V I...................................................
6-7
1.05-1.22
Class V II..................................................
7-8
1. 22-1.40
Class VIII................................................
8-9
1.40-1. 57
Class I X ....................................................
Over 9 Over 1.57
Class X _. . . _________________________

1.00
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50

$0.17
.26
.44
.61
.79
.96
1.14
1.31
1.49
1. 66

0.04
.06
.10
.14
.18
.22
.26
.30
.34
.38

Cents

0.70
1.05
1.75
2.45
3.15
3.85
4.55
5.25
5.95
6.65

1Basis of contributions: 3.428571 per cent of average daily wages.
T able

5 9 . — Schedule of wage classes and contributions for salaried employees
under old-age insurance system in Hungary
[Conversions into United States currency on basis of pengo=» 17.49 cents]
Salary
Per day

Per month

Average salary
per day

Contributions
per day 1

Salary class
Hun­
Hun­ United Hun­ United
United
Hun­
garian States cur­ garian United States garian States garian States
cur­
cur­
cur­
cur­
currency
cur­
currency
rency
rency
rency rency rency rency
Pengd

Class A ......... ...................
Class B .............................
Class C .............................
Class D .............................
Class E ........................... Class F .............................
Class G ........................... Class H............................

2
2- 4
4~ 6
6- 8
8-10
10-12
12-16
16-20

50
50-100
100-150
150-200
200-250
250-300
300-400
400-500

Pengd

Pengd

Pengd

$0.35
$0.35- .70
.70-1.05
1.05-1.40
1.40-1.75
1.75-2.10
2.10-2.80
2.80-3.50

$8.75
$8.75-17.49
17.49-26.24
26.24-34.98
34.98-43.73
43.73-52.47
52.47-69.96
69.96-87.45

1.50
3.00
5.00
7.00
9.00
11.00
14.00
18.00

$0.26
.52
.87
1.22
1.57
1.92
2.45
3.15

0.08
.16
.26
.36
.46
.56
.70
.90

Cents

1.40
2.80
4.55
6.30
8.05
9.79
12.24
15.74

i Basis of contributions: 4.285714 per cent of average daily salary.

The contributions for old-age and invalidity insurance are payable
with the sickness insurance contributions in a lump sum. Payment
of contributions is suspended during sickness or inability to earn
wages while under medical treatment, provided the employer is
not paying full wages during the period. In case wages are paid in
full, contributions are payable during such period also. Employers
who neglect the provisions of prescribed health protective measures
must pay supplementary contributions amounting to 50 per cent of
the basic contribution, and employers are forbidden to deduct any­
thing therefor from the employees’ wages.
The law provides for joint, liability for the payment of basic and
supplementary contributions for the following types of employers:
In the case of corporations and incorporated societies, of the board

HUNGARY

257

of directors and administrative directors; in the case of other enter­
prises and workshops, of the several owners; in the case of institu­
tions, associations, and companies, of the management and the per­
son directly responsible for all payments due. Contractors are jointly
responsible with subcontractors and their legal successors until the
original contract is completed.
Benefits

The age for old-age benefits is fixed at 65 years. The insured wage
earner is considered to be an invalid when, as a result of a disease or
infirmity, he is not able to earn one-third of the average wages re­
ceived by a wage earner with the same occupational training and
experience. A salaried employee is granted an invalidity benefit
when incapable of earning one-half of the amount received by other
employees with the same qualifications.
To be eligible for benefits, in the case of old-age benefits, the
insured must have paid contributions for 400 weeks ana for invalidity,
or widow’s and orphans’ annuities for 200 weeks. To keep the benefit
in force, the insured must make at least 13 weekly payments each
year. If the contributions of the insured during any calendar year
were for less than 13 weeks, his right to benefit ceases.
The benefit consists of two parts, the basic benefit amounting to
120 pengo ($20.99) a year and a supplementary benefit in proportion
to the additional weekly payments made by the insured, amounting
for salaried employees to 19 per cent of the accrued annual payments
and for the wage earners 24 per cent. For each child supported by
the beneficiary he is entitled to a 5 per cent children’s allowance, cal­
culated on the basic and supplementary benefits, the total children’s
allowance, however, not to exceed 20 per cent of such basic and
supplementary benefits.
The widow of a salaried employee or of a wage earner over 65
years of age or permanently invalided is entitled to a yearly benefit
for life amounting to half the benefit of the deceased, provided the
deceased had completed the 200 weeks’ contributions and had kept
his right alive. Widows under the age limit and those not invalids
are not entitled to receive a yearly benefit, but receive a lump sum
equal to the annual benefit of the deceased. Widows who remarry
receive as final settlement a lump sum equal to a widow’s benefit for
one year.
The orphans of salaried employees and of wage earners are en­
titled to 15 per cent of the benefit to which the deceased was entitled,
provided the deceased had completed the 200 weeks’ contributions
and had kept his right alive. Orphans of salaried employees receive
a yearly benefit to the age of 18 years and those of wage earners up
to the age of 15 years or in exceptional cases up to 17 years.
The widow’s benefit is fixed at 50 per cent; the orphan’s benefit,
where one parent is dead, is fixed at 15 per cent; and where both
parents are dead, at 30 per cent of the benefit of the deceased insured
with intact rights.
In case a person receiving an invalidity or old-age benefit takes a
new position in which he is liable to insurance and becomes again
disabled, upon reaching the age of 65 years he will receive an addi­
tional annual benefit of 24 per cent or 19 per cent, according to his
class, of the total contributions paid by him from the beginning of

258

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

lijs first benefit to the date on which the additional benefit becain*
fine. A totally disabled widower unable to earn his living, and de­
pendent on his wife when she was alive, is also entitled to a benefit.
Invalidity benefits are not granted in cases of willfully induced dis­
ability and no widow’s or orphan’s benefit is granted in cases of
suicide of an insured person.
Act No. 40 of 1928 provides that the National Social Insurance
Institute must allocate 6 per cent of the total contributions paid for
insurance against invalidity, old age, and death to the creation of a
special fund, to be used solely for promoting public health and indus­
trial safety. The contributions collected may not be used for other
purposes than the benefits enumerated, the prevention of invalidity
or premature loss of working capacity, the application of measures
of health protection and medical treatment, the restoration to health
of temporarily disabled persons, the establishment of curative insti­
tutions, and administrative expenses. The health protection measures
serve three purposes: To avert premature invalidity, to delay as long
as possible a run-down state of health causing disability, and to in­
sure the recovery of disabled persons. The invalidity and old-age
insurance funds are preferably to be spent on prevention and pro­
phylaxis; medical treatment is neither a benefit nor a right of insured
persons. Provision is made for health officers, a matrimonial con­
sulting office, forest schools for children, widespread control to com­
bat tuberculosis, and also prophylactic measures for infants by means
of so-called “ protectors of families,” systematic and periodical
medical examination of all insured.
Adm inistration

The invalidity, old-age, and widows’ and orphans’ insurance is
administered by the National Social Insurance Institute and the
Private Employees’ Insurance Institute. The by-laws of the unified
organization are fixed by the Ministry of Social Welfare and Labor.
The executive organs of the institute are the general meeting, the
board of directors, the president’s department, the contribution as­
sessment committee, the financial committee, and the district trustees’
committee.
The administration of the institute is placed in the following ad­
ministrative branches: Management, personnel, legal, sanitation,
social political, and old-age insurance, sickness insurance, accident
insurance, miners’ pension, assessment and collection, controller’s,
caretaker, budget and credit, audit, board of supervisors, and central
treasury.
The executives are elected by the general meeting, while the person­
nel of the administrative branches is appointed by the Government.
The members of the general meeting number 360, equally divided
between employers and employees.
Employers are required to report every person who is liable for
insurance, within eight days of entering employment, to the district
treasury of the National Social Insurance Institute, giving in detail
all data required by the regulations, and are financially responsible
for all contributions assessed and for all expenditures caused bv
delayed reporting or payments and all expenses resulting from
negligence.

HUNGARY

259

Contributions for old-age and invalidity insurance are assessed
and payable at the same time as the sickness insurance contributions.
The contributions for compulsory old-age and invalidity insurance
collected at district treasuries must be paid in full to the central
treasury of the institute, which has the sole right of disposition of
the receipts. Four funds are provided for the administration of
receipts: An old-age, invalidity, widows’, and orphans’ insurance
administration fund; an old-age, invalidity, widows’, and orphans’
insurance health-protection and medical-treatment fund; an old-age,
invalidity, widows’, and orphans’ compulsory insurance benefits re­
serve fund; and an old-age, invalidity, and widows’ and orphans’
voluntary insurance benefits reserve fund.
The National Social Insurance Institute is required to distribute
receipts from contributions of the old-age and invalidity insurance
as follows: Four per cent is credited to the administration fund, 6
per cent to the health-protection and medical-treatment fund, and
90 per cent to the compulsory or voluntary insurance benefits reserve
funds, according to the classification and proportion of contributions
collected for each branch.
To prevent the cost of invalidity and old-age insurance from be­
coming too heavy a charge on national production, sums paid in
the form of contribution are put into circulation again as soon as
possible in the form of constructive investments. Security is the
first consideration, economic and social reasons coming next. A
considerable proportion of reserve funds must be invested in national
bonds; 30 per cent is by preference invested in redeemable inter­
est-bearing mortgage bonds. Part of the reserve funds is used
to develop the building industry by extending credit at reasonable
rates of interest for a modern housing policy.
The system of registration is based on a card-index file. Each
insured employee and wage earner has an individual card on which
his personal record, employment, and all payments are entered
in chronological order, showing the accumulation of credits for
qualification. The total time and payments are taken into con­
sideration in fixing the amount of the basic and supplementary
benefits. Claims for old-age, invalidity, and widows’ and orphans’
benefits must be filed in writing, or in exceptional cases orally,
either by the claimant or by his legally authorized attorney, and the
amount of the benefit is fixed by the benefits committee, on the basis
of maintenance of the right to benefit, completion of contribution
period, and valuation of total contributions paid. Invalidity and
widows’ invalidity benefits once fixed are reconsidered after two years
from the first disbursement and again within four years, and tem­
porary invalidity cases after one but within two years. In case, on
the second examination, the first allotment is approved a new recon­
sideration is not allowed for five years.
Delayed and irregular reports, overdue payments, irregular entries
or nonentry in the wage register are minor offenses, punishable by
fines ranging from 1,000 to 3,000 pengo ($175 to $525). Inten­
tional misstatements with the aim of nonpayment of contributions
due, refusal to give information or to place entry books at the dis­
posal of the officials of the institute, illegal labor agreements, or
illegal deductions from wages or salaries are misdemeanors punish­
able by fine or jail sentence.

260

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Employers are financially responsible for all assessed contribu
tions, and the collection of contributions has precedence over com­
mercial payments ordered by the courts in insolvency or bank­
ruptcy cases.
The institute maintains one central office, 22 district treasury
offices, 14 provisional field offices, and 22 subtreasury offices equipped
with facilities for medical examination. The expenditures for ad­
ministration are distributed pro rata among the various branches
of social insurance.
Statistics of Operation

The balance sheet, of old-age, invalidity, widows’ and orphans’ in­
surance fund as of December 31,1929, is as follows:
T able

6 0 .—Balcmce sheet of old-age, invalidity, and widoivs* and orphans1 insur­
ance fund of Hungary, as of December 81,1929
[Conversions into United States currency on basis o f pengo= 1 7 .4 9 cents]
United
States cur
rency

Item

Hungarian
currency

Balance at Postal Savings Bank.............................................................. ..........
Balance at other banking institutions............................................................ .
Real property-.....................................................................................................
Equipment and supplies............................................................. ..................... .
Arrears of employers....................................................... ...................................
Interest for 1930 on the bond issue of 7,672,839 pengo ($1,341,980) paid in
advance....................................................................—......................................
Advances to contractors.......... : ..........................................................................
Debt of the sickness insurance branch................................................................

222,827.28
2,137,297.22
3,321,669.69
256,393.61
12,176, 111. 30

$38,972
37.3,813
580,9S0
44,843
2,129,602

653,393.32
5,403,403.38
8,293,617.62

114,278
945,055
1,450,554

Total...........................................................................................................

32,464,713.42

5,678,078

Compulsory insurance reserve fund....................................................................
Voluntary insurance reserve fund...................................................................... .
Health-protection and medical-treatment reserve fund............... ................... .

12,355,906.52
1,406.18
665,769.00

2,161,048
246
116,443

Total, reserve funds................................................................................
Administration expenses deducted................................................................. .

13,023,081.70
914,819.94

2,277,737
160,002

Net reserve fund.................................................. - ....................................
Overdue and uncollected contributions and supplemental charges................. .
Employers’ credits............................................................................ ................. .
Bond issue due Dec. 31, 1930................. ...................... ......................................
Contributions collected but not transferred......................................................

12,108,261.76
12,176, 111. 30
12,176.85
7,672,839.16
495,321 35

2,117,735
2,129,602
2,130
1,341,980
86,632

Total............................................................................................................ 32,464,713.42

5,678,078

Pengo

Liabilities

Distribution of paid-in contributions

Receipts:
Assessed contributions for 1929..................................................................... 24,511,879.54
Supplement assessed on employers’ arrears................................................ .
345,055.58

4,287,128
60,350

Total assessments...................................................................................... . 24,856,935.12
Contributions in arrears............................................................................... . 11,358,098.31

4,347,478
1,986,531

Total collection of contributions and supplements................................. .
Contributions to miners’ fund.................................................................... .
Contributions paid by voluntary insured. ................................................ .

13,498,836.81
8,583.36
1,541.78

2,360,947
1,501
270

Total receipts............ ................................................................. —............

13,508,961.95

2,362,717

Disbursements:
Administration fund................................... ............................................... .
Health-protection and medical-treatment fund...........................................
Compulsory insurance benefit reserve fund................................................ .
Voluntary insurance benefit reserve fund.....................................................

540,358.48
810,537.72
12,156,678.15
1,387.60

94,509
141,763
2,126,203
243

Total............................................................................................................

13,508,961.95

2,362,717

HUNGARY

261

The net income of the old-age, invalidity, and widows’ and
orphans’ branch amounted to 13,508,961.95 pengo ($2,362,717) and
administrative expenditures to 2,450,000 pengo ($4,285), of which
950,000 pengo ($1,662) was received as State contribution. The 4
per cent administration fund closed during the first year with a def­
icit of 914,894.94 pengo ($160,015). The 6 per cent health-protection
and medical-treatment fund closed with a surplus of 419,536.67 pengo
($73,394). The compulsory insurance benefits reserve fund, with
accrued interest and other income invested in building enterprises,
amounted to 12,355,906.52 pengo ($2,161,048). The balance sheet of
this fund, however, shows that the sickness insurance branch utilized
8,293,617.62 pengo ($1,450,554) of the benefits reserve as a loan,
and the shortage had to be covered by obtaining a short-term
bond-issue loan amounting to 7,672,839.16 pengo ($1,341,980).
The latest report of the board of directors on the status of the
National Social Insurance Institute for the general meeting held on
September 28, 1930, regarding the expected development ox sickness
insurance business during the current and following years supplies
the following data.
The number of insured receiving sick benefits has been steadily
increasing. Between 1909 and 1917 the number of beneficiaries repre­
sented from 1.6 to 1.8 per cent of the average annual membership.
The percentage increased between 1918 and 1925 from 2.1 to 2.5 per
cent, in 1926 to 2.8 per cent, in 1927 and 1928 decreased to 2.5 per
cent, and in 1929 increased again to 2.9 per cent. While the lowered
standard of living of the laboring class during the last 10 years might
have reacted somewhat on the average health conditions and the
class might have become less resistant against exposure, the board of
directors believes that the supervision of the sick beneficiaries is too
lenient and benefits are claimed and received by persons who might
be found not entitled to such benefit if the supervision were more
frequent and more rigorous. It is suggested that such abuses should
be prevented by expanding the system of supervision.
The hospital charges are also steadily increasing. Such expendi­
tures in 1925 amounted to 6.59 pengo ($1.15), in 1926 to 7.43 pengo
($1.30), in 1927 to 8.18 pengo ($1.43), m 1928 to 7.74 pengo ($1.35),
and in 1929 to 10.82 pengo ($1.89) per capita. Expenses tor medical
treatment follow the same tendency. The per capita expenditures
under this heading amounted in 1925 to 4.55 pengo ($0.80), in 1926
to 4.90 pengo ($0.86), in 1927 to 5.72 pengo ($1), in 1928 to 8.72
pengo ($1.53), and in 1929 to 9.13 pengo ($1.60).
Administrative expenses show the largest increase. The per cap­
ita administrative expenditures amounted in 1926 to 5.48 pengo
($0.96), in 1927 to 6.25 pengo ($1.09), in 1928 to 10.07 pengo ($1.76),
and in 1929 to 14.29 pengo ($2.50).
The number of insured covered by the law totaled 782,819 in 1927,
794,508 in 1928, and 770,472 in 1929. Of the total number, 627,967
are covered by old-age and invalidity insurance. As the law began
its operation in 1929 there are’ no insured persons as yet entitled to
benefits.
The strictly administrative staff of the institute amounted in 1928
to 1,892 men, which at the end of 1930 was increased to 2,971 men.

262

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

The cost of administration during 1029 is calculated at 3.90 peng
(68 cents) per member. Administrative expenses represented, iit
1927, 8.39 per cent of the total contributions assessed; in 1928 this
cost increased to 15.13 per cent.
There has been a striking difference between assessments and un­
collected contributions during the last three years, as may be seen
from the following table:
T able 6 1 . —

Amount of assessments and uncollected contributions under Hun­
garian old-age insurance system, 1927, 1928, and 1929

[Conversions into United States currency on basis o f pen^o — 17.40 cents]
Assessments
Year

Hungarian
currency

United
States
currency

Hungarian
currency

$8,360,533
9, 246, 532
9,684,835

20,726,915
22,436,948
31,277,084

Peng6

1927.................................................................................... 47,801,780
1928.................................................................................... 52,867, 537
1929
............................................................ 55 373,559

Arrears
United
States
currency

Pengd

$3,625,137
3,924, 222
5,470,362

This comparison shows that the proportion of arrears of employers
increased to more than 50 per cent of the assessments. The business
year 1930, is expected to close with a deficit of about 9,000,000 pengo
($1,574,100).
The board of directors hopes to relieve and remedy the critical
situation by cutting down the personnel to the absolute minimum,
and by giving notice to all temporary employees. In execution of
these measures the board of directors has suspended the taking on of
new employees, but the reduction of personnel must be carried out
by the Ministry of Social Welfare and Labor.
Miners’ Insurance System

The insurance and sick benefit association was formerly an inde­
pendent system and has only recently been incorporated in the
national old-age insurance system. Several revisions of the rules
and regulations of this branch of the social insurance system have
been made, and even the latest, issued in 1931, is not considered final.
Up to date, the following decrees governing this branch have been
issued: Ordinance No. 4400-1926 N. M. M. Eln.; Decrees Nos. 61001928 M. E., 600-1929 M. E., 4459-1927 N. M. E., 3885-1929 N. M. E.,
and 20-1931 N. M. E.
Coverage of system.—All mining and smelting operations coming
under the miners’ law, as well as all auxiliary operations in which the
minor officials and employees were members of one of the miners’
provident funds on January 1, 1927, are liable to miners’ insurance.
The following classes of employees are covered by the law: (1) Minor
official staff and clerical help; (2) unclassified assistants of minor
official staff; (3) skilled miners and skilled technical help, certified
machinists and firemen; and (4) all other employees liable to
insurance not classified in the first three classes.

263

HUNGARY

According to the data obtained from the Royal Hungarian Bureau
of Statistics, the compulsory miners’ law, at the end of 1929, covered
824 mining and smelting enterprises and their branches, employing
41,504 men.
Contributions.—The contributions are payable in equal amounts by
the insured and their employers.
The contributions for the wage earners are paid at the rate of 5.25
per cent of the wages and those for the salaried employees at the
rate of 6.25 per cent of the salary.
The table following shows for each of the wage and salary classes,
the amount of contribution required.
T a b l e 6 2 . — Contributions

required under Hungarian miners* old-age insurance
system

[Conversions into United States currency on basis o f pengo= 1 7 .4 9 cents]
W a g e earn ers
Daily wages in wage
class

Contribution required for—

1 day
Wage class

Hunga­
rian
currency

United
States
currency

Peng6

Class I ................ ......... .............
Class II......................................
Class I I I ............. .....................
Class I V ...................................
Class V..... .............. .................
Class V I ____ ____ _________
Class V I I __________________
Class VIII............................... .
Class IX ____________________
Class X ............ .........................

Up t o l Up to $0.17
1-2 $0.17- .35
. 35- . 52
2-3
.52- .70
3-4
.70- .87
4-5
.87-1.05
5-6
1.05-1.22
6-7
1.22-1.40
7-8
1.40-1.57
8-9
Over 9 Over 1.57
Daily wages in
wage class
Pengd

Class I___________ __________
Class II................................. Class III_______ ____________
Class IV .............. .....................
Class V ....................... ..............
Class V I ................................. .
Class V II...................................
Class VIII__________________
Class IX ............... ................. .
Class X ......... ............ ...............

Up to 1 Up to $0.17
1-2 $0.17- . 35
. 35- . 52
2-3
3-4
. 52- . 70
4-5
. 70- . 87
5-6
.87-1.05
6-7
1.05-1.22
1.22-1.40
7-8
8-9
1.40-1.57
Over 9 Over 1.57

2 days

3 days

Hunga­ United Hunga­ United Hunga­ United
rian
States
rian
States
rian
States
cur­
cur­
cur­
cur­
cur­
cur­
rency rency rency rency rency rency
Pengd

0.08
.10
.16
.22
.28
.34
.40
.46
.54
.60

Pengo

$0.01
.02
.03
.04
.05
.06
.07
.08
.09
.10

4 days

Pengo

0.26
.38
.62
.86
1.12
1.36
1.60
1.84
2.10
2.34

0.14
.20
.32
.44
.56
.68
.80
.92
1.06
1.18

Pengd

$0.03
.04
.06
.08
.10
.12
.14
.16
.19
.21

5 days

Pengd

$0.05
.07
.11
.15
.20
.24
.28
.32
.37
.41

0.32
. 46
.76
1.08
1.38
1.70
2.00
2.30
2.62
2.92

0.20
.28
.46
.66
.84
1.02
1.20
1.38
1.58
1.76

$0.04
.05
.08
. 12
.15
.18
.21
.24
.28
.31

6 or 7 days or
1 week
PengG

$0.06
.06
.13
.19
.24
.30
.35
.40
.46
.51

0.38
.56
.92
1.30
1.66
2.02
2.40
2.76
3.10
3.50

$0.07
.10
.16
.23
.29
.35
.42
.38
.54
.61

264

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

T a b l e 6 2 . — Contributions

required under Hungarian miners* old-age inswrano
system—Continued
Salaried employees
Daily salary in
salary class

Contribution required for—
1 day

2 days

Salary class
Hunga­
rian
currency

United
States
currency

Pengd

Class A _____________________
Class B ____ _____ ___________
Class C_____________________
Class D _____________________
Class E ______________ ____
Class P ___ ____ _____________
Class Q ____ ____ ___ ____ ____
Class H ___ ______ ___________

2
$0.35
2- 4 $0.35- . 70
4- 6
.70-1.05
1.05-1.40
6- 8
8-10
1.40-1.75
10-12
1.75-2.10
2.10-2.80
12-16
16-20 2.80-3.50
Daily salary in
salary class
Peng6

Class A ___ - _________________
Class B _____________________
Class C__________ _____ _____
Class D .......................................
Class E _____________________
Class F _____________________
Class G_____________________
Class H _____________________

$0.35
2
2- 4 $0.35- .70
4- 6
.70-1.05
1.05-1.40
6- 8
8-10
1.40-1.75
10-12
1.75-2.10
2.10-2.80
32-16
16-20 2.80-3.50

3 days

Hunga­ United Hunga­ United Hunga­ United
rian
States rian
States rian
States
cur­
cur­
cur­
cur­
cur­
cur­
rency rency rency rency rency rency
Pengd

0.12
.22
.38
.52
.66
.82
1.04
1.32

Pengd

$0.02
.04
.07
.09
.12
.14
.18
.23

4 days

Pengd

0.44
.88
1.46
2.06
2.64
3.22
4.10
5.26

0.22
.44
.74
1.04
1.32
1.62
2.06
2.64

Pengd

$0.04
.08
.13
.18
.23
.28
.36
.46

5 days

Pengd

$0.08
.15
.26
.36
.46
.53
.72
.92

0.56
1.10
1.84
2.56
3.30
4.02
5.12
6.58

a 34
.66
1.10
1.54
1.98
2.42
3.08
3.94

$0.06
.12
.19
.27
.35
.42
.54
.69

6 or 7 days or 1
week
Pengd

$0.09
.19
.32
.45
.58
.73
.90
1.15

0.66
1.32
2.20
3.08
3.94
4.82
6.14
7.88

$0.12
.23
.38
.54
.69
.84
1.07
1.38

Benefits.—The benefits provided under the miners’ insurance are
of the same type as those under the general system for wage earn­
ers and salaried employees. They include an old-age annuity for the
insured, disability benefit for the insured, widows’ benefit, and bene­
fits to orphan children under 16 years of age.
The old-age and invalidity annuity becomes payable at age 65,
or at 60 years after 40 years’ contributions, or at 60 years after 25
years’ service (and contributions) in underground work as an as­
sistant official, pick miner, or assistant pick miner.
The annuity varies according to the number of years for which
contributions have been made. Thus, an insured person with 10
years’ contributions is entitled to an annuity amounting to 20 per
cent of the basic rate of his salary or wage class; if he has contrib­
uted for more than 10 years but less than 40 years, he is entitled to an
additional 2 per cent of the salary or wage for each year’s contribu­
tion in excess of 10 years; after completion of 40 years’ contributions
the insured is entitled to an annuity of 80 per cent of the basic pay.
If disabled, the insured becomes eligible for the disability annuity
after 10 years’ contributions.
The widow’s benefit amounts to 50 per cent of the amount to which
her deceased husband was entitled at the time of his death, and the

HUNGARY

265

nildren’s benefit amounts to 15 per cent of their father’s benefit,
_> t the total amount of the survivors’ benefit may in no case ex­
u
ceed the full amount to which the deceased was entitled at the time
of his death.
Benefits are paid monthly in advance. They can not be ceded or
attached.
Administration.—With two exceptions, the employers and em­
ployees liable to miners’ pension and invalidity insurance are mem­
bers of the National Social Insurance Institute. The exceptions are
the Royal Hungarian State Iron and Steel Works at Diosgyor and
the Royal Hungarian State coal mines at Komlo; these are owned
by the Government and the employees are covered by Government
miners’ provident funds.
Statistics of operation.—No data are available as to the operation
of the scheme.
S o u r c e s f o r H u n g a r y : Magyar Kozigazgat&si TorvSnyek (official report), b y Melly
Jozsef and Pap G6za, Budapest, 1930, pp. 6 0 7 -7 9 1 ; Az, OrszS. gos Tarsadalombiztositd
Int6zet, Alapszab&lya, Budapest, 1930, pp. 1 6 -2 4 ; Az, OrszS. gos Tarsadalombiztosit6
Int&zet, T&rsadalomfriztosit&si KCzlony, Budapest, 1930, Vol. X X IV , No. 5, pp. 4 7 6 -4 8 3 ;
Az, Orsz& gos Tarsadalombiztositd Int6zet, T&rsadalmi Biztoslt&si Statistika (B u dapest?),
1923-1929, vols. 1 - 1 6 ; Az, Orsz& gos Tarsadalombiztositd Intgzet, JelentSse az 1929, Evi
Mtik<5d6s6rdl, Budapest, 19 30; Ordinance No. 4440-1926 N. M. M. E ln .; decrees Nos.
4459-1927 N. M. B.. 6100-1928 M. E., 600-1929 M. E., 3885-1929 N. M. E., and 20-1931
N. M. B.

Iceland
By E . G j e s s i n g , Vice Consul, Copenhagen, Denmark

General System
Old-age benefits or relief in Iceland are granted and distributed
according to the Icelandic law of July 9, 1909.
Contributions.—The financial burden of old-age pension or relief
is borne by each local district or community. Contributions are
required from all persons between the ages of 18 and 60, the rate for
men being 1.50 kroner (40 cents) 3 and that for women 0.75 krone
9
(20 cents) per annum. People who are sick and disabled, who have
served a sentence in prison, and persons over 60 who have acquired a
life annuity of at least 150 kroner ($40) are exempt from contribu­
tion. The State contributes an amount equal to 0.50 krone (13 cents)
for each taxable person in the community.
Benefits.—Application for old-age pension or relief must be made
from year to year. It is granted as a yearly financial support and
is not a sum fixed for the lifetime of the applicant.
All persons over 60 without any visible means of support, who
have no vicious habits, and who have lived an honest life, are en­
titled to old-age pension. The annual old-age pension must not
be less than 20 kroner ($5.36) nor exceed 200 kroner ($53.60).
Statistics of operation.—No statistics exist as to the amounts dis­
tributed in pensions in Iceland, nor as to the number of persons
relieved. The State of Iceland contributed in 1928, however, 47,640
kroner ($12,769) toward the cost of the pensions, and as the State’s
contribution is about one-third of the total amount, it is estimated
that in 1928 a total amount of $38,000 was expended for this purpose.
• Conversions into United States currency on basis o f krone equals 26.8 cents.

266

Irish Free State
By

B e n j a m in M . H u l l e y ,

American Consul, Dublin

General Pension System
Old-age pensions were established in the United Kingdom from
1909 on, and the system was continued by the Irish Free State Gov­
ernment from its establishment in 1922.
Coverage of System

Pensions are now granted in the Irish Free State to persons who
are able to meet four requirements, which, expressed without legal
qualifications, are as follows: (1) Age—70 years and over; (2)
Means—not to exceed £39 5s. ($191.01)4 per year; (3) Nationality—
0
British subject; (4) Residence—12 years in the British Isles after
reaching the age of 50, if a native-born British subject; or 20 years
in the British Isles, if not a native-born British subject. In the case
of blind persons the age limit is 50 years.
Contributions

Old-age pensions are a State charge, borne wholly by the tax­
payers, and are paid from the central funds of the Government.
Benefits

The weekly benefits, fixed according to the yearly means (i. e.,
means of support, as contrasted with income) of each pensioner, as
calculated under the old-age pension acts, are as follows:
T able

6 3 . — Weekly

benefits under old-age pension system of Irish Free State

[Conversions into United States currency on basis of pound=$4.8665; shilling, 24.33 cents; penny, 2.03
cents]
Weekly benefits
Annual income

United
Irish
States
currency currency
Shillings

Not exceeding £15 12s. 6d. ($76.04)_____________________________________________
£15 12s. 6d. to £18 5s. ($76.04-$88.81)................. .................................................. ..........
£18 5s. to £20 17s. 6d. ($88.81-$101.59>............................................... ...... ........... .........
£ 2 0 17s. 6d. to £23 10s. ($101.59-$114.3f>)________________________________ ________
£23 10s. to £26 2s. 6d. ($114.36-$127.14).............
....... ...... .........................................
£26 2s. 6d. to £28 15s. ($127.14-$139.91)........... ................. .............................................
£28 15s. to £31 7s. 6d. ($139.91-$152.69). _____ _____ _________ _____________ ______
£31 7s. 6d. to £34 ($152.69-$165.46)..................................... .............................. .............
£34 to £36 12s. 6d. ($165.46-$178.24)____ _______________ ___________ _____ _______
£36 12s. 6d. to £39 5s. ($178.24-$191.01)................... .................... - ......... .........— ........
Over £39 5s. ($191.01).......................................................................................................

10
9
8
7
6
5
4
3
2
1
0

$2.43
2.19
1.95
1.70
1.46
1.22
.97
.73
.49
.24
0

40 Conversions into United States currency on basis o f pound equals $4.8665; shilling,
24.33 cents.

267
83860°—32------ 18

268

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

Administration

The pension system is administered by the revenue commissioners
under the Department of Finance, the application for pensions being
made to a local pensions committee, usually a subcommittee of the
local county or urban council. The department of appeals of the
Ministry 01 Local Government and Public Health has appellate
jurisdiction.
Statistics of Operation

In 1928 (the latest period for which statistics have been published)
112,059 persons were receiving old-age pensions, and the figures for
the three previous years show no notable fluctuation from this figure.
Each year 12,500 to 14,000 pensioners die and are replaced by others.
The majority of the population over 70 years of age receive the oldage pension, to judge from the census of 1926, which showed 88,222
persons aged 75 years and over, and 183,458 persons aged 65 to 74
years.
The following figures show the number of pensioners in each
benefit group in 1928 (the total including 2,650 blind persons re­
ceiving pensions):
W e e k ly b e n e fit :

10
9
8
7
6
5
4
3
2
1

Number o f
pensioners

shUlings ($2.43)_________________________________
shillings ($2.19)_________________________________
shiUings ($1.95)_________________________________
shillings ($1.70)_________________________________
shillings ($1.46)_________________________________
shillings ($1.22)_________________________________
shillings (97 cents)______________________________
shillings (73 cents)--------------------------------------------shillings (49 cents)--------------------------------------------shilling (24 cents)_______________________________

14,785
71,800
8,204
4,674
7,396
2,445
2,530
1,450
982
443

Total_______________________________________ 41114, 709

The old-age pension expenditure in 1928, estimated on the basis of
pensions payable on the last Friday of December, 1927, was £2,468,056 ($12,010,794.52). There may have been a slight increase since
then, as the 10-shilling rate went into effect in 1928. This gives an
average of about $107 per pensioner per year.
The cost of administration can not be estimated, since the law is
administered by Government officials who have other functions as
well. The chief difficulties of administration arise in determining
age when the birth has not been recorded and in estimating annual
means, and a large part of the legislation is aimed at meeting the
latter difficulty.
S o u r c e s f o b I r i s h F r e e S t a t e : O ld -a g e p e n s io n s a c t s . 1908, 1911, 1919, 1924, a n d
1 9 2 8 ; B lin d p e r s o n s a c t . 1 9 20 ; O ld -a g e p e n s io n s c o n s o lid a t e d r e g u la t io n s , 1922 ( s t a t u t o r y
r u le s a n d o r d e r s N o . 2001 o f 1921) ; F in a n c ia l i n s t r u c t i o n s f o r p e n s io n c o m m it t e e s a n d
s u b c o m m it t e e s (C m d . 1659).
41 Includes 47,693 men and 67,016 women.

Italy
By T.

J aeckel,

American Consul General, Rome

A voluntary system of insurance against old age and invalidity
was instituted by the law of July 17, 1898. Under this system the
only form of intervention by the State was that under certain con­
ditions it made out of its own funds a supplementary allowance
which was used to increase the benefit purchased by the voluntary
contributions of the insured.
The decree of April 21, 1919, created a system of compulsory in­
surance against invalidity and old age. After the passage of this
decree the National Fund for Workmen’s Invalidity and Old-Age
Pensions (Cassa nazionale di previdenza per la invaliditd e la vechicda degli operai), created by the law of 1898 to administer the
system of voluntary insurance, assumed the title of National Fund
for Social Insurance (Cassa nazionale per le assicuraeioni sociali) .
It continued to administer the voluntary insurance but also took
over the administration of the newly established compulsory
insurance.
Voluntary Insurance
Coverage of System

Among those who may now obtain voluntary insurance are:
Those compulsorily insured; the independent laborers, including
small farm owners; tradesmen; industrial workers; and those in the
liberal professions who pay to the State a direct annual tax of not
more than 500 lire ($26.30)42; their wives, if they attend to domestic
work, and also women having other ties of relationship who attend
to domestic work for insurable persons.
Contributions

No limit is established for the contributions, but they must reach
an average of 18 lire (95 cents) per year.
It is provided that in case of the death of the insured before the
benefit becomes payable, the full amount of his contributions shall
be paid to his family.
Benefits

The old-age benefit may, as a rule, be claimed or paid at the age
of 60 years for men and 55 for women, after at least 10 years’ insur­
ance, irrespective of the amount of the contributions. The invalid­
ity benefit may be paid after a minimum of five years’ insurance.
The amount of benefit varies according to the amount of the contri­
butions, calculated from the age of the insured at the time of each
separate contribution to the age when the benefit is paid.
The State increases this basic benefit by one-third or one-sixth
(depending upon whether the insured is only voluntarily or both
voluntarily and compulsorily insured), but not to exceed 100 lire
($5.26) per year. In case of invalidity the benefit may, under certain
«*Conversions into United States currency on basis of lira equals 5.26 cents.

209

270

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

conditions when it would be insufficient, be raised at least to tl
minimum of 120 lire ($6.31) per year.
Statistics of Operation

On January 1,1931, about 500,000 persons were insured under the
system, in an amount totaling 326,000 lire ($17,147,600).
General Compulsory Insurance System
Coverage of System

The act of April 21, 1919, which went into effect on July 1, 1920,
established compulsory insurance against invalidity and old age.
The act was amended in 1923 and again in 1925,1928, and 1929. The
amended act covers all citizens, of both sexes, between the ages of
15 and 65 years, who work for an employer in any industry, trade,
or profession, including home or cottage industries, agriculture, and
public service, or who are engaged in domestic service in any pri­
vate employment. Aliens in these occupations are also compelled
to take out insurance, but are entitled to the State contribution only
if reciprocal treatment is granted to Italians in the countries of
which they are citizens.
Exemptions.—The following persons are exempt from the insur­
ance obligation: (1) Salaried employees whose average monthly
salary exceeds 800 lire ($42.08); (2} share and tenant farmers;
(3) all seamen during service on Italian vessels, provided they are
insured in the Merchant Marine Invalidity Fund; (4) State and
public service employees for whom insurance is already provided.
Voluntary insurance.—Independent laborers, including small
farm owners, tradesmen, industrial workers, and those in the liberal
professions, who pay annually to the State a direct tax of not more
than 500 lire ($26.30), may, as already stated in a previous para­
graph, be inscribed among the voluntarily insured.
Contributions

The contribution is made in equal shares by the insured and by
the employer. The amount of the contribution varies with the daily
earnings of the insured person. Payment is made each fortnight,
as follows:
T able 6 4 . —Biweelcly contributions of employer and employee under Italian

compulsory insurance system
[Conversions into United States currency on basis of lira=5.26 cents]
Biweekly contribution of—

Daily earnings

Employer

Employee

Italian
currency

Italian
currency

United
States
currency

Lire

2 lire (10.5 cents) or less....................................................
2-4 lire (10.5-21.0 cents).....................................................
4-6 lire (21.0-31.6 cents)................................................... .
6-8 lire (31.6-42.0 cents) ..................................................
8-10 lire (42.0-52.6 cents)...................................................
Over 10 lire (52.6 cents).....................................................

United
States
currency
Cents

Lire

Cents

0.50
1.00
1.50
2.00
2.50
3.00

2.6
5.3
7.9
10.5
13.2
15.8

0.50
1.00
1.50
2.00
2.50
3.00

2.6
5.3
7.9
10.5
13.2
15.8

ITALY

271

These contributions are paid at the same time as the contributions
for compulsory insurance against unemployment and tuberculosis.
The employer is responsible for the contributions, which are col­
lected by means of stamps affixed to special insurance cards.
The State contributes an amount equal to 100 lire ($5.26) per year
for each benefit.
Benefits

Benefits are granted to the insured at 65 years of age when the
insured has made at least 240 contributions, and at any age in case
of permanent disability when the insured has made at least 120 con­
tributions. The insured is considered permanently disabled if his
earning ability is reduced to less than one-third of the current earn­
ing ability of wage earners in the same occupation in the same
locality. Benefits at a lower rate may be obtained at 60 years of age.
The annual benefit paid consists of two parts—the part correspond­
ing to the contributions made by the insured and his employer, and
the part granted by the State. The first part is equal to five times the
average annual contributions paid during the insurance (from the
beginning to the date of payment of benefit), plus three-tenths of the
total amount paid in in contributions; the State’s share of the bene­
fit amounts to 100 lire ($5.26) a year. The total benefit thus estab­
lished is increased by one-tenth for every child under 18 years of age
dependent on the insured.
In case of the death of an insured person before his benefit becomes
payable, his widow or his children under 15 years of age are entitled
to receive a monthly grant of 50 lire ($2.63) for six months.
Administration

The insurance system is managed by the National Social Insurance
Institute, the council of which is made up of two representatives of
employers and of the insured, two insurance experts, and one repre­
sentative each of the Ministries of Finance, Agriculture and Forestry,
and Communications, and the presidents of the National Fund for
Accidents and the National Institute of Life Insurance.
Special adaptations for insurance of agricultural workers.—The
compulsory insurance of agricultural laborers, and especially of the
day laborers in the country, presented from the very outset a difficult
problem in connection with any practical application of the law.
This difficulty was experienced more especially in the application of
the system of insurance stamps because of the transitory and desul­
tory nature of the relation between the workers and the farmers
who employ them, and often also because of the distance of many
of the farms and estates from the inhabited centers in which the
insurance stamps could be procured.
In the case of persons working for fixed wages (farm hands bound
by contract to work on the farms, whether residing on them or not)
the difficulties in applying the law were easily overcome. The posi­
tion of the permanent laborers is, naturally, less precarious than
that of the mere day laborers.
However, in order to make possible a better application of the law
of compulsory insurance (for invalidity, old age, and tuberculosis),
an agreement in behalf of the field laborers has been concluded by

272

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

the National Confederation of Employers of Farm Labor, the Na­
tional Federation of the Fascist Union of Farm Laborers, and the
National Fund for Social Insurance, with the following terms:
(a)
In the case of the permanent laborers the insurance is to be
effected through the ordinary system of individual tickets or the
system of a regular list of permanent laborers which the proprietor
of the farm or estate draws up every year and sends to the Provincial
Federation of the Employers of Farm Labor.
(&) In the case of the day laborers the insurance is to be effected
by the payment of a sum “ a forfait ” ; that is, a sum paid down
and calculated according to the extent of the land or the kind of
work of each proprietor. The contributions paid in this way are
then to be credited to each laborer singly and per capita, in a
uniform measure for all, or individually on the basis of the numbei
of days of work; this number is to be reported by the employer
or by the farm employment offices to the institute of the national
fund.
The above agreement is at present being examined by the Ministry
of Corporations and will have to be submitted to the Parliament for
legislative approval.
Statistics of Operation

The estimated number of insured in 1929 was 5,500,000. In tha*
year benefits were paid to 120,363 old-age beneficiaries, in the sum
of 74,685,142.80 lire ($3,928,439) and averaging 630 lire ($33.14) per
person. In the same year 54,225 persons received invalidity benefits
totaling 34,945,774.45 lire ($1,838,148) and averaging 644 lire
($33.67) per person. During 1929 survivors’ benefits were paid in
11,284 cases.
In 1929 the contributions paid by the insured amounted to
423,662,497 lire ($22,284,647), and the expenses of the insurance to
19,189,000 lire ($1,009,340). The expense for each insured risk was
approximately 3.49 lire (18 cents). The total spent for benefits and
administration was 136,248,639 lire ($7,166,678).

Japan
B y A r t h u r G ar rels,

American Consul, Tokyo

Old-age pensions and insurance systems as such do not exist in
Japan. There are, however, certain forms of workers’ compensa­
tion, besides a Government system of voluntary life and endowment
insurance.
In discussing these institutions it is essential that there be borne
in mind the relationship long existing in Japan between the employer
and the employee. That relationship, which to-day is still basically
feudal, is a relic of the days before the introduction of western meth­
ods to Japanese industry. The functioning of a scheme under which
a low wage scale is offset by an obligation assumed by the employer
to maintain the employee, to a greater or lesser degree, in periods
during which his services are not required or during disability, to
provide compensation for injury, to pay a bonus, or to establish a
life annuity upon dismissal from further service, eliminated the
necessity of providing for any or all such benefits under legal com­
pulsion or through governmental institutions. While the paternal­
ism inherent in this scheme was voluntary and not a legal require­
ment, it was a practice strictly adhered to, based on long usage and
altogether congruous to the feudal spirit that prevailed throughout
Japan.
The growth of the industrial unit, however, as a corollary to the
advent of western methods to Japanese industry demanded flexibility
in labor supply in the interest of economic administration. Such
mobility of labor was not possible without economic loss, if the
employer strictly adhered to the obligations assumed under the
unwritten tenets of the feudal system. Since the employer was
under no legal compulsion to continue such obligations, he sought
to curtail his responsibility toward his workmen. This gave rise
to protests and complaints on the part of labor generally, and cre­
ated the first labor consciousness among the Japanese.
The necessity for legislation protective of labor was a natural
sequence to the employer’s tendency to shirk his previously assumed
obligations and responsibility. This necessity was initially met by
the promulgation of the “ factory act ” on March 28, 1911, which
was the first labor legislation in Japan. Subsequent labor legislation
included amendments to the factory act of 1922; the health insurance
act of 1922 with its amendment, as well as various imperial decrees
and departmental regulations pertaining to the foregoing.
In 1916 a system of voluntary life and endowment insurance was
organized under the post-office administration to provide life and
endowment insurance opportunities to small-wage earners, and in
273

274

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

1926 a system was put into force whereby the sale of annuities by the
post office was authorized. The annuity plan is described below.
Voluntary Insurance—Post-Office Annuities
The history of post-office annuities dates as far back as 1897, but
the annuities were actually introduced only in October, 1926.
The annuities are divided into two classes: Immediate and de­
ferred. The payment of deferred annuities commences at the age of
50, 55, 60, and 65 years, as specified in the contract. The insurable
age in the case of deferred annuities is between 12 and 60 and in the
case of immediate annuities between 40 and 80.
The amount of contributions is calculated on the basis of a mortal­
ity table compiled by deducting 20 per cent for males and 30 per cent
for females from the general mortality rates of the population in
Japan.
The rate of interest allowed in the calculation of the value of
annuities under the installment-payment plan is 5 per cent, and
under the single-payment plan is determined from time to time by
the Minister of Communications upon the basis of the current market
price of public bonds. In 1929 the rate of interest was 5% per cent.
The reserves to be maintained against policies are worked out by
the net-contribution method.
The maximum annuity that can be purchased by any one person
is 2,400 yen ($1,198),4 and the minimum is 120 yen ($60) under the
3
installment-payment plan or 12 yen ($5.99) under the single-payment
plan, for the contributions are made either by the single-payment or
installment plan.
In an immediate annuity, the payment of the annuity begins on the
date of the contract and continues until death, and in a deferred
annuity the annuity begins at a certain age, specified in the contract,
and continues untii death.
At the end of the fiscal year 1928-29 there were 178.036 contracts
in force. Contributions amounted to 16,669,163 yen ($8,317,912), and
the aggregate value of the annuities was 12,899,536 yen ($6,436,868).
** Conversions into United States currency on basis o f yen equals 49.9 cents.

Lithuania (Memel Territory)
By H u g h S. F u l l e r t o n , American Consul, Kovno, Lithuania

General Insurance System
The district of Memel is a part of the territory forfeited by Ger­
many in accordance with the treaty of Versailles.
Tne German legislation, in general, ceased to be effective in the
Memel district on December 31, 1922. However, on January 1, 1923,
the general old-age insurance law, which is practically the old Ger­
man law with some amendments, went into effect. This law has
not yet been published.
Coverage o f System

Regardless of sex, the following who have reached the age of 14
years of age are subject to compulsory insurance:
(1) Laborers, employees, assistants, apprentices, student servants,
domestic servants, assistants in pharmacies, trade assistants, members
of crew of sea-going vessels liable to insurance, and members of
crews of inland vessels.
(2) Managing clerks, technicians, workmasters, other employees
holding higher positions regardless of their educational status, as
well as members of orchestras regardless of their artistic ability.
(3) Teachers and educators in nonofficial schools and institutions.
(4) Captains of vessels mentioned above, as well as various officers,
managers, and assistants regardless of their educational status, pro­
vided the above is their principal profession.
The following are exempt from compulsory insurance:
(1) Wives employed in their husbands’ offices, and vice versa;
(2) employees of the State, employees of the Memel Government,
municipal officers, community officers, officers of the State insurance
company and legal corporations, and teachers and educators of
official schools and institutions; (3) persons who teach for com­
pensation while engaged in study of their future profession; (4)
members of religious societies, deacons, and like persons, provided
they are engaged in nursing, teaching, and other useful work and
who enjoy free board and lodging as compensation; and (5) children,
stepchildren, adopted children, and foster children of an employer,
working in the establishment of the latter without compensation,
as well as members of the family, parents, and parents-in-law of the
employer.
The following may be released from compulsory insurance, upon
the application of the employer: (a) Apprentices of all kinds as long
as they are working in establishments belonging to their parents,
(b ) persons supported in workers’ colonies during unemployment,
or in similar institutions, and farm laborers, employees, apprentices,
and servants permanently employed on a farm. Persons who are
physically capable of part-time work only and those who can prove
275

276

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

their membership in an insurance company supervised by the State
as regards their old-age insurance may be released from compulsory
insurance upon their own application.
Voluntary insurance is open to members of the family of an em­
ployer working without compensation, and to industrialists and
other business men who either have no employees or a maximum of
two, whose yearly income does not exceed 4,000 lits ($400).
Contributions

The amount of the social insurance contribution for the working
year 1930 was set at 11 per cent of the basic wages, of which contribu­
tion 7 per cent was for sickness insurance and 4 per cent for old-age
insurance. Half of the contribution is paid by the employer and
half by the worker.
The table following shows the system of contribution:
T able 6 5 . —Rate o f contribution under old-age insurance system of Memel

Territory
[Conversions into United States currency on basis of litas=10 cents]
Daily earnings of wage
class

Daily rate used
Amount of
as base for con­ weekly contri­
tributions
bution

United
States
currency

Lithu­ United Lithu­ United
anian States anian States
cur­
cur­
cur­
cur­
rency rency rency rency

Wage class
Lithuanian
currency

LUs

Class 1................................. ........................ Up to 1.00
1.00- 2.17
Class 2...................... ...................................
2.17- 3.33
Class 3............... ..........................................
3.33- 4.67
Class 4----------------- ------------------------------4.67- 6.33
Class 5...................................................... .
6.33- 8.00
Class 6------------------------------------ --------8.00-10.67
Closs 7______ ________________ _________
Class 8....... .................... ........... .................. 10.67-14.00
Class 9............... ............ —.......................... 14.00 and over

$0.10
$0.10- . 22
. 22- . 33
.33- .47
.47- .63
.63- .80
.80-1.07
1.07-1.40
1.40

Lits

0.90
1.80
2.70
4.00
5.40
7.20
9.00
12.70
16.30

$0.09
.18
.27
.40
.64
.72
.90
1.27
1.63

Lits

0.24
.48
.72
1.08
1.44
1.92
2.40
3.36
4.32

$0.02
.or>
.07
.11
.14
.19
.24
.34
.43

The table below explains the classification of wages:
T a b l e 6 6 . — Earnings

used as basis for computation of contributions under oldage insurance system of Memel Territory

[Conversions into United States currency on basis of litas=10 cents]
Yearly earnings
Wage class
Lithuanian
currency

United States
currency

Lits

Class 2....................................... .....................................
Class 3.............................................................. - ..............
Class 4.............................................. ................................
Class 6...............................................................................

300
300- 650
650-1,000
1,000-1,400
1,400-1,900
1,900-2,400
2,400-3,200
3,200-4,200
4,200 an d
over.

Yearly basic
wages
Lithu­ United
anian States
cur­
cur­
rency rency
Lits

$30
$30- 65
65-100
100-140
140-190
190-240
240-320
320-420
420 and over.

270
540
810
1,200
1,620
2,160
2,700
3,810
4,890

$27
54
81
120
162
216
270
381
489

LITHUANIA (MEMEL TERRITORY)

277

The insured persons are required to make a contribution each week
for 200 weeks; thereafter they must make at least 20 contributions
during every 2-year period.
Benefits

The benefits paid to the insured persons consist of three parts: A
basic amount consisting of 168 lits ($16.80) a year; a supplementary
amount representing 15 per cent of the capital paid in; and a supple­
mentary amount, granted by the State, consisting of 96 lits ($9.60).
Thus, a beneficiary in wage class 7, with an (assumed) 2,000 weeks5
contributions of 2.40 lits each, or a total of 4,800 lits, would enjoy a
benefit of 984 lits per year, derived as follows: (1) 168 lits, plus (2)
15 per cent of 4,800 lits, or 720 lits, plus (3) 96 lits.
The widow of an insured person is entitled to half of the full
benefit of the deceased, and each child under 15 to one-fifth of his
benefit; the total survivors5benefit, however, may not exceed 150 per
cent of the basic benefit to which the deceased was entitled.
Administration

The employees as well as the employers elect 15 persons each as
delegates for a period of five years. These delegates form two com­
mittees, each of which elects three delegates to the presidential coun­
cil or board. From this board the president is selected, who serves
for 12 years and is a State employee though paid by the insurance
company.
The duties of the committees are to check and approve the budget,
to approve new statutes or dispositions, to fix the rate of contribu­
tion, and to control the various enterprises and construction work.
The presidential board is administratively responsible together
with the president.
Statistics of Operation

The number of persons covered in 1928 amounted to 23,275, in
1929 to 23,942, and in 1930 to 25,148. The population of the Memel
Territory numbers 141,645 persons.
In 1928 there were 341 persons receiving the old-age insurance
annuity and in 1929, 416. The average amount of benefit is about
270 lits ($27) per person per year.
The receipts of the old-age pension insurance included in the in­
valids paragraph were 35,088 lits ($3,609) whereas the expenditures
(for benefits presumably) amounted to 112,408.60 lits ($11,241) for
the year 1928-29.

Luxemburg
The social insurance system of Luxemburg operates as six inde­
pendent units, each with separate funds, management, and control.
The first social insurance law was passed in 1911 and the first forms
of insurance to be undertaken were those providing against old age
and invalidity of wage earners, industrial accidents, and agricultural
accidents. The laws at present on the books provide also for sick­
ness insurance, unemployment insurance, and old-age and invalidity
insurance for salaried employees. The act relating to unemploy­
ment insurance, however, has not yet been put into active operation.
Wage Earners’ Insurance System 4
4
Old-age and invalidity insurance was first provided for in 1911,
but a new law was passed December IT, 1925, which embraced new
features and made adjustments in the system in conformity to
changed conditions. This law was in turn amended by a law of
November 20, 1929.
Coverage of System

The law relating to old age and invalidity provides for the com­
pulsory insurance of industrial workers and of certain classes of
clerical and other employees over 16 years of age whose annual
earnings do not exceed 10,000 francs ($278)4 per year.
5
Voluntary insurance is open to employees, clerks, foremen, etc.,
under 40 years of age whose earnings are in excess of 10,000 francs,
employers who do not ordinarily employ more than two workers
subject to insurance, home workers, and persons who are temporarily
employed, teachers, servants, and agricultural and forestry workers.
Persons in the military and civil service of the Government are
included in a separate pension system administered exclusively by
the Government and provided for in the annual budget.
Contributions

Since January 1, 1928, the employers and workers insured have
been required to contribute at the rate of 4 per cent of the latters’
earnings, half being paid by the employer and half by the worker.
The worker’s share is withheld from his wages, and the employer
is responsible for seeing that it is paid. The law provides that
the contribution rate may be revised every three years, on the basis
of the experience of the past 3-year period.
u M aterial for this section supplied by Frederick L. Washbourne, American vice consul
at Luxemburg.
45 Conversions into United States currency on basis o f franc equals 2.78 cents.

278

279

LUXEMBURG

For each benefit the State grants a varying supplemental amount,
20 per cent of which must be borne by the commune in which the
beneficiary resides.
Benefits

Old-age and invalidity benefits.—The old-age benefit is payable
at age 65, provided the person has been insured for at least 2,400
working-days.4
6
The invalidity benefit may be paid at any age, provided the in­
sured is permanently incapacitated through illness and provided he
has been insured for at least 1,200 working days. A person is re­
garded as being an invalid when he is unable because of his infirm­
ities to earn more than a third of his ordinary earnings in a line
similar to that for which he was trained.
In the case of foreign workers, the required period of insurance
for eligibility to both old-age and invalidity insurance is 2,400 work­
ing days. This may, however, be reduced in the case of foreign
workers whose countries extend, to natives of Luxemburg resident
there, benefits equal to those under the present law.
The benefit varies with the wage and period of insurance of the
beneficiary. The basic benefit is equal to 25 per cent of the average
annual wages of the insured, but for every year during which the
person was insured, in excess of four years, this amount is increased
by 8 per cent in case of invalidity and by 6 per cent in case of old
age. This basic benefit (and, eventually, certain additional benefits)
is paid from the insurance fund. To this the State adds a supple­
mental amount varying according to the amount of the basic benefit,
as follows:
T a b le

6 7

.— Amount of State supplement to old-age and invalidity benefit m
Luxemburg
[Conversions into United States currency on basis of franc=2.78 cents]
State supplement
Basic benefit
Francs

Old-age and invalidity benefit:
2.000 francs ($55.60) or less_________________________________________________
2^001-3,000 francs ($55.63-$83.40)........ .......................................................................
3,001-5,000 francs ($83.43-$139.00)..............................................................................
5,001-8,000 francs ($139.03-$222.40)............................................................................
Widows’ benefit:
1,000 francs ($27.80) or less______________- ______________________ - ______ - ___
1,001-1,500 francs ($27.83-$41.70)................................................................................
1,501-2,500 francs ($41.73-169.50)..............................................................................
2,501-4,000 francs ($69.53-$111.20)................................ .............................................
Orphans' benefit... . . . . . . . . . . . . . . __ - _____ _____________________________________

United
States
currency

800
700
500
250

$22.24
19.46
13.90
6.95

500
400
300
200
120

13.90
11.12
8.34
5.56
3.34

In addition to the basic benef t and the supplemental allowance,
the beneficiary is entitled to * mily allowances, payable from the
insurance fund. These allows ces are paid in respect of children
under 16 dependent upon the i nuitant, as well as of children past
481, e., 8 '* working years * of 300 day*
*

ach.

280

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

that age if incapacitated for earning a living. The allowance
amounts to 10 per cent of the total benefit (basic amount, plus State
supplement) for one child, 18 per cent for two children, 25 per cent
for three children, and 5 per cent additional for each child above
three.
Survivors’ benefits.—Survivors’ benefits are payable only if the
deceased insured had made contributions for the required number
of weeks.
A widow is entitled to benefit in the following cases: If she is 55
years of age or over; if her husband was incapacitated and drawing
invalidity benefit; if she herself is an invalid and has three children
under 18 years of age; or if she has a child wholly incapacitated
from earning his living, because of mental or physical infirmities.
The widow’s or widower’s annuity amounts to one-half and the
orphan’s benefit to one-fifth of the invalidity benefit which the in­
sured person was drawing or would have drawn in the case of inva­
lidity at the time of death, but the total amount of the survivors’
benefit may not exceed the invalidity benefit to which such a person
was entitled. The widow’s or widower’s benefit ceases upon remar­
riage and that of an orphan upon reaching 16 years of age.
Medical, etc., treatment.—The insurance institution may institute
curative treatment if there is reason to believe that this procedure
will either avert the impending invalidity of the insured person,
widow, widower, or orphans, or restore the lost earning capacity.
Administration

The administration of the law is in the hands of the Old-Age and
Invalidity Insurance Institute, which is controlled by a governing
body maae up of a chairman and an equal number of representatives
of the employers and employees. Claims for the payment of pen­
sions are submitted to the governing body, and in case of a dispute
as to the allowance of a pension, the amount of the pension, or the
date at which it should begin, the claimant may appeal from the
decision to the arbitration court. The chairman of the body is an
official appointed by the Government. He may be assisted by a vice
chairman and one or more councilors. The salaries and pensions
of these officials and all office expenses are borne equally by the State
and the Social Insurance Institute.
Statistics of Operation

Approximately 50,000 persons are covered by the social insurance
law. At the close of 1928 there were 1,425 persons receiving old-age
annuities, and 2,405 persons receiving invalidity benefits, while 951
were receiving widows’ and orphans’ benefits. The total receipts of
the fund in 1928 were 29,868,880.95 francs ($830,355); the total ex­
penditure for benefits amounted to 3,356,247.52 francs ($93,304), and
for medical and sanitarium treatment for members and their families
to 3,712,833.66 francs ($103,217). In the last quarter of 1930 nearly
300 persons were receiving institutional care under the insurance
system.

LUXEMBURG

281

Salaried Employees’ Insurance System
By a law dated January 29, 1981, the system of old-age and inva­
lidity insurance was extended to salaried employees not covered by
the general law of 1925.
Coverage of System

The law covers all salaried employees, not included under the
general system, who are employed in all types of private enterprise
and are under 25 years of age.
Contributions

The total contribution to the pension fund amounts to 10 per cent
of the total annual remuneration of the insured person, 5 per cent
being paid by the employer and 5 per cent by the employee. If the
total annual earnings are less than 7,200 francs, however, the em­
ployee pays 5 per cent of his actual earnings, while the employer
is required to pay 5 per cent of 7,200 francs plus the difference be­
tween the employee’s contribution and 5 per cent of 7,200 francs.
In other words, the total contribution must in every case be at least
10 per cent of 7,200 francs.
Benefits

The law provides for an annuity beginning at age 66; a disability
allowance in case of permanent invalidity or of temporary invalidity
lasting more than three months; widows’ and orphans’ benefits; spe­
cial death allowances; special payments to insured women; and pre­
ventive or curative medical treatment. No insured person is entitled
to any of these benefits unless the contributions have been paid for
60 months.
The old-age and invalidity annuity consists of three parts: (1) A
uniform basic benefit of 3,600 francs ($100.08) ; (2) 14 per cent of the
total contributions paid into the account of the insured; and (3) an
allowance for each child under 18 years of age who is in the legal
charge of the beneficiary, this allowance amounting to 1,200 francs
($33.36) per year for each child. An additional payment is made
by the State to annuitants whose annual income, including the bene­
fit, does not exceed 15,000 francs ($417); this supplementary pay­
ment amounts to 500 francs ($13.90) tor annuities not exceeding
5.000 francs ($139) and 250 francs ($6.95) for annuities between
5.000 and 8,000 francs. In no case may the total benefit exceed the
average of the five highest annual salary payments nor five-sixths
of the highest annual earnings (including supplementary payments).
The annual remuneration on which the pension is based includes,
beside the salary, any additional payment of bonuses which the em­
ployee receives from the principal occupation. If the annual re­
muneration, including such supplementary payments, is below 7,200
francs ($200.16), however, that amount will be considered the an­
nual remuneration for the purpose of fixing the contributions.

282

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

The benefit of the surviving husband or wife amounts to six-tenths
of the benefit which the insured person was receiving at the time of
death; and the orphans’ benefit amounts to two-tenths of this sum,
but if both parents are dead, to twice this amount. The total pen­
sions of the survivors may not exceed the amount of the original
annuity.
Administration

The insurance funds are to be administered by a commission com­
posed of a president appointed by the Government and an equal
number of delegates elected by the employers and the insured, but
at least 10 in number. The actual operation of the system is carried
on through an executive committee composed of the president of the
commission (acting as chairman) and an equal number of the rep­
resentatives of the insured and the employers, chosen by and from
the members of the commission.
The act provides, however, that administration may be transferred
to the Old-Age and Invalidity Insurance Institute which administers
this branch of insurance for wage earners.
The cost of administration is to be borne half by the State and
half by the insurance fund.
S o u r c e s f o r L u x e m b u r g : Loi d u 17 decembre 1925, concernant le code des assurances
sociales; Arr£t6 grand-ducal du 26 juillet 1929; Loi d u 20 novembre 1929, portant reval­
orisation des rentes do vieillesse et d’ invaliditS; Memorial du 21 mars 19 31; and Etablisseinentes d* Assurances Sociales (assurance-vieillesse et invalidity), Compte-rendu de l’exerice
1928.

Netherlands
By C h a r l e s L. H oover , Consul General, Amsterdam

The law establishing the old>age pension and insurance systems in
the Netherlands was enacted on June 5, 1913, but the war broke out
before it took effect, and it was put into operation by royal decree on
March 21, 1919, after some modifications had been made in its pro­
visions. It has since, been further amended by royal decrees of
December 24, 1924; October 17, 1927; December 15, 1927; February
11,1928; April 27,1928; September 3,1928; November 7, 1928; June
1, 1929; June 18, 1929; June 20, 1929 (three decrees were issued on
this date); October 11,1929; October 15,1929; October 28,1929; and
May 11,1930; and by the law of April 24,1929. The decrees referred
largely to minor details connected with the routine prescribed in
the law.
There are two kinds of old-age insurance in the Netherlands, the
first, which was established by the law of June 5, 1913, being com­
pulsory insurance of workers against incapacity to work on account
of either old age or bodily or mental infirmity, while the second is
the system of voluntary insurance for all inhabitants of the Nether­
lands, created by the law of November 4,1919.
Compulsory Insurance for Workers
Coverage o f System

The law of June 5, 1913, provides for the compulsory insurance of
all workers more than 14 years of age who receive wages of less than
2,000 florins ($804)4 per year. The insurance of those insured
7
while receiving less than this limit is continued until the income of
the worker reaches 3,000 florins ($1,206) per year, beyond which
limit he must pay the contributions himself.
Anyone, regardless of age, sex, or station in life may be insured
under the law of 1913, but for workers insurance is compulsory,
although a worker may also insure himself under the voluntary
old-age annuity law at his own expense.
The law provides that the following classes of workers shall be
exempt from the operation of the law:
1. Workers not already compulsorily insured who work for wages
as a calling, but on jobs of short duration only.
2. Workers who have already reached the age of 35 years without
having been insured.
3. Invalid workers not already insured.
4. Workers assured of a pension bv the Government.
4 Conversions into TTnited States currency on the basis o * florin equals 40.2 cents.
7
L

283

83380°—3 2 -— 19

284

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

5. Workers insured against invalidity or assured of a pension by a
public body, provided the Crown finds tliat the system designed for
such insurance meets the requirements of the invalidity law.
6. Railway workers insured by the railway companies in accord­
ance with the law of 1875.
7. Workers on behalf of whom the conditions for invalidity and
old-age pensions have already been established by law.
8. Workers in the service of a corporation and insured against
invalidity and old age by the employer, or by a pension fund estab­
lished by the corporation in such manner as to guarantee the payment
of the pension or annuity.
While the law provides that workers who have reached the age of
35 without having become liable to compulsory insurance do not be­
come liable after that age, a royal decree of November 28, 1919,
establishing general regulations for the application of the law, stipu­
lates that the worker who through no fault of his own has not been
insured may acquire insurance through application and the payment
of back premiums from his sixteenth year. In calculating the basic
annuity, the back payments are considered as regular payments, but
the increase in this basic amount (see pp. 289, 290) is based only on
the premiums paid for the period after the worker was actually
insured.
Foreign workers are not subject to compulsory insurance when
employed in the Netherlands by a foreign individual or concern,
although foreign workers employed by Netherlander must be insured.
T ype o f Law

The system established by the law provides for a straight pension
to begin at such time as the worker reaches the age of 65 years, or
in case he is incapacitated for work. The pension may also continue
to the widow and orphans of the insured after his decease.
It should be mentioned that invalidity and old-age annuities, or
pensions, are both provided for in the law of June 5, 1913, and that
there is no separate legislation for compulsory old-age pensions. As
has already been stated, voluntary old-age pensions are established by
the law of November 4, 1919. It is also observed that the laws of
the Netherlands carefully distinguish between pensions earned by
service over a period of years, and annuities granted for the support
of those who are incapacitated from earning their livelihood through
either bodily or mental infirmities or old age. The payments to
persons in the latter category are always called annuities (rente) in
the law, and accrue to the beneficiary only through the payment of
premiums over a certain period, while pensions are more in the
nature of adjusted compensation granted according to uniform rules
to those who have served a public or a private corporation for a
minimum length of time. In the case of amiuities the Government
contributes such part of the funds as may be necessary to supple­
ment the income arising from the premiums paid by the employer of
the beneficiary who is compulsorily insured.

285

NETHERLANDS

Contributions

Govet'nment contribution.—To provide funds for the payment of
the invalidity and old-age pensions established by the law of 1913,
the Government is contributing according to the following scale:
(1) For 1920 to 1923, 21,500,000 florins ($8,643,000) per year; (2)
for 1924 and 1925, 1,800,000 florins ($723,600) per year; (3) for 1926,
9,423,000 florins ($3,788,046); (4) for 1927, 11,423,000 florins
($4,592,046); (5) for 1928, 13,423,000 florins ($5,396,046); (6) for
each of the remaining 66 years, 17,623,000 florins ($7,084,446).
These sums have been calculated from actuaries’ tables and are
supposed to supply the amount necessary to place the annuity fund
on a self-supporting basis at the end of the period of 75 years. Pro­
vision was made in the law for the advance by the Government of
such sums as were necessary to meet the payments which might
become due on account of annuities before funds were available from
premiums paid.
Employer's contributions.—The law of June 5, 1913, provides that
the contribution must be paid by the employer, with a few minor
exceptions, and the employer is prohibited from withholding the
amount thereof, or any part of it, from the wages due the employee.
The contribution is paid by the insured, however, during the weeks
in which he has no employer.
The managing directors in the Netherlands of foreign concerns are
considered by the law to be the employers. Foreign concerns are
compelled to choose a domicile in the Netherlands if they employ
labor there.
The classification of Vorkers for the payment of contributions
has been changed from time to time, but is now as follows:
Male workers

Weekly
contribution
(florin)

Class 1. Workers, irrespective o f age, paid entirely in kind____0.25 ($0.10)
Class 2. Workers between 14 and 18 years of age employed in
institutions of art or science, theaters, concert halls,
amusement places, etc---------------------------------------------- . 30 ($0.12)
Class 3. Workers between 14 and 18 years of age______________ .40 ($0.16)
Class 4. Workers between 18 and 21 years of age______________ .50 ($0.20)
Class 5. Workers 21 years o f age and over-------------------------------- . 60 ($0.24)
Female workers

Class 1. Workers, irrespective of age, paid entirely in kind_____.25
Class 2. Workers employed in institutions of art or science, thea­
ters, concert halls, amusement places, etc___________ _.30
Class 3. Workers between 14 and 21 years of age______________ _. 40
Class 4. Workers 21 years of age and over____________________ _. 50

($0.10)
($0.12)
($0.16)
($0.20)

Some exceptions to this scale are provided, but they do not affect
the general application of these rates, as they are in force only in
certain industries. The exceptions provide, for the greater part,
for the payment of class 2 contribution for women employed in
certain industries, while a higher rate is payable in certain other
industries, such as diamond-cutting establishments, hair-dressing
shops, caffe and hotels, as well as for nurses, employees of the tele­
phone and telegraph service, and office workers. The class 2 con­

286

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

tribution rate applies only to women and to male workers between
14 and 18 years of age.
The contributions must be paid by the workman himself when
he is unemployed or when the insurance has lapsed. This latter
may happen only when the worker is unable to meet the condi­
tions for insurance over a period of six months through incapacity
for work, when he has reached the age of 35 years, when he falls in
one of the exempted classes, or when his wages are above 3,000
florins ($1,206) per year.
The employer must pay the contribution when the worker is
employed on piecework outside the factory, or workshop, the wage
scale xor the payment of the contribution being calculated on the
following basis:
Florins per day

Class 1____________________________________________ 0.40
Class 2____________________________________________ .80
Class 3____________________________________________ 1.40
Class 4____________________________________________ 2.00
Class 5____________________________________________ 3.00

($0.16)
($0.32)
($0.56)
($0.80)
($1.20)

Payment of contributions.—Payment of the contributions is made
either by means of stamps placed on the so-called “ rente card,” or by
cash payment to the official labor board. The manner of paying the
contribution is decided by the Crown after the Superior Labor
Board, the directorate of the National Insurance Bank, and the
Insurance Board have been heard on the subject. However, each
payment of a contribution must finally appear on the card in the
form of stamps, these being placed by the employer unless he be, for
any reason, permitted to pay in cash, in which case the stamps must
be affixed by the local labor board. This latter provision has never
been put into effect, however.
Stamps must be placed on the card only by calendar weeks which
fall in whole or in part within the period of validity of the card.
The labor board is authorized to permit the workers who are re­
quired to pay their contributions themselves to affix the necessary
stamps. Such workers are defined as those whose work is principally
carried on outside the workshop and not under the supervision of
the employer, but such cases must be determined by royal decree after
the competent advisory boards have been heard. The money value
of the stamps to be affixed in such cases must be paid by the em­
ployer to the workman at the time the amount due for wages is paid.
East stamp affixed is evidence that the contribution has been paid.
Stamps.—Ordinarily, and for persons regularly employed, a stamp
covers the contribution due for each week, but “ day ” stamps may
be affixed (1) for workers who accept employment which continues
less than four days, and (2) for workers who, as a rule, are in the
service of the same employer for not more than three days in the
same week.
The amount of the contribution is determined in accordance with
the age rate or the special rate which is provided for the class of
work done.
The cost of the day stamps is somewhat greater, proportionately,
than those for the payment of the weekly contribution, the following

287

NETHERLANDS

table showing the value of the day stamps to be affixed for the
various classes of insurance:
T a b le 6 8 . — Value of “ day ” stamps affixed for each class of compulsory insur­

ance in the Netherlands
[Conversions into United States currency on basis of florin*=40.2 cents]
Weekly premium
Class

Netherland
currency

United
States
currency

Florin

Class 1___________________ _____ ____ ______________
Class 2__ ______________ ____ ______ ________________
Class 3______________________ ____ _____ _______ ____
Class 4_________________________ - __________________
Class 5................................................................................

0.25
.30
.40
.50
.60

Value of “ day” stamp
Netherland
currency

United
States
currency

Florin

$0.10
.12
.16
.20
.24

0.07
.07
.10
.12
.12

$0.03
.03
.04
.05
.05

The duty of the employer to affix or pay for the stamps ceases
when the wages of the worker reach 3,000 florins ($1,206) per year,
but beyond this limit the worker may keep the insurance in force
by paying for the stamps himself.
Contribution cards.—Contribution cards are made up for the in­
jured worker by the labor board upon application by the worker.
The forms for the contribution cards are prescribed by royal de­
cree, and the validity of a card begins on the day of issue, though
in case the insurance obligation begins before the card is issued the
labor board is authorized to state on the card the date on which it
became effective, but the date may not be set forward to a period
earlier than that on which the insurance obligation begins.
In case the card is not issued, as a result of negligence of the
worker, the labor board is authorized to permit him to declare
whether he wishes the card to date from the day on which he began
work, and if not to specify the date he wishes to appear thereon.
The cards are made up without cost to either employer or worker;
however, in case a new card is desired to replace one lost by the in­
sured before all the spaces for stamps have been filled, but after
having been used for more than one week, he may obtain a dupli­
cate from the labor board on payment of 0.05 florin (2 cents). The
labor boards are authorized to exact 0.50 florin (20 cents) in certain
cases, but 0.45 florin (18 cents) may be ordered refunded by the
bank if the application of the insured for such refund is approved.
The worker must keep and care for his card himself unless he
has deposited it with his employer for safekeeping and been given
a receipt therefor, but he may at any time demand the return of the
card so deposited.
The Government assumes no responsibility for stamps placed on
cards until these cards are formally surrendered to the labor board
for booking. However, in case the insured worker can show to the
satisfaction of the insurance bank that the card, together with the
stamps affixed thereto, has been burned or destroyed in other manner,
and can produce proof as to the number, class, and (if two or more
stamps have been affixed) value of the stamps on the card, the

288

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

loss is made good, and the labor board issues a new card on which
the number and class of the contributions represented by the stamps
which were destroyed are noted, together with the period oyer
which the contributions are considered to have been paid.
The insurance cards are filed by the National Insurance Bank
after they have been surrendered to the labor board by the insured
at the close of the period they cover. These cards are canceled by
the bank, in case this has not already been done by the labor board,
and they may be destroyed under conditions set forth by royal
decree.
Insurance boolcs.—When the first insurance card is issued to a
worker who has not been insured previously, he is also given, free of
charge, an insurance book of a prescribed form, which contains a
summary of his rights and duties under the law. This book must
state the number of contributions- shown by the affixed stamps on
each insurance card as its use for a given period ceases. This no­
tation is made by the labor board, and the entries in the insurance
book must agree with the insurance cards. The worker must place
his book at the disposal of the labor board for the necessary entries;
in case he fails to do so, the labor board sends him a statement of
the amount with which he has been credited on his last insurance
card. These books are not considered evidence of the rights of the
insured, but are merely for the purpose of keeping him informed as
to the date and amount of the contributions he or his employer has
paid.
Penalties.—Penalties are imposed for failure to comply with the
law and the labor boards are charged with the duty of tracing and
investigating infractions of the law, with the assistance of the police
authorities when necessary. The penalties are mostly in the form
of fines, although imprisonment may be imposed in certain cases.
One of the most severe punishments prescribed is for the affixing of
canceled stamps instead of new ones, imprisonment for not more than
six months or a fine of not more than 600 florins ($241) being pre­
scribed for this misdemeanor. Anyone who has been guilty of the
same offense within the preceding five years shall be imprisoned for
not more than one year, without the option of a fine.
Penalties are provided for workers who are gniltv of fraud in
connection with the insurance, the heaviest being two years for the
person who is guilty of deceiving the officials regarding his identity
so as to obtain a false card.
Benefits

Beneficiaries.—Insured persons who become incapacitated for work
after 150 contributions have been paid on their insurance, and those
who reach the age of 65 years are entitled to annuities based on the
amounts of the contributions paid. Invalidity and old-age annui­
ties may not be enjoyed concurrently by any beneficiary, but one
receiving an annuity for invalidity may be granted an old-age
annuity instead if that be higher, and conversely. Anyone who pur­
posely injures himself to produce invalidity, or who procures such
fraudulent injury, or who is injured in the perpetration or attempted
perpetration of a crime of which he is convicted may not receive an
invalidity annuity.

289

NETHERLANDS

Annuities may not be assigned, pledged as security, nor attached
for debt.
Amount of benefits.—The Labor Board of Amsterdam has issued
the following table of benefits which may be received by insured
persons who become eligible for annuity through invalidity or old
age, the first column indicating the number of years during which
stamps have been placed on the cards, the figures parallel therewith
being the varying amounts of the annuity in accordance with the
weekly contribution (stamp) of the worker.
T able

6 9 .—Amount of invalidity and old-age annuity under Netherlands com­
pulsory insurance system
[Conversions into United States currency on basis of florin = 40.2 cents]
Weekly contributions of0.25 florin
(10 cents)

0.30 florin
(12 cents)

0.40 florin
(16 cents)

0.50 florin
(20 cents)

0.60 florin
(24 cents)

Contribution period
Neth- United Neth- United Neth- United Neth- United Neth- United
erland States erland States erland States erland States eiland States
cur­
cur­
cur­
cur­
cur­
cur­
cur­
cur­
cur­
cur­
rency rency rency rency rency rency rency rency rency rency
Florins

3 to 8 years...............
9 years. .................
'10 years....................
11 years............ —
12 years....................
13 years.......... .........
14 years....................
15 years....................
16 years....................
17 years....................
18 years....................
19 years.......... .........
20 years....................
21 years....................
22 years....................
23 years....................
24 years....................
25 years....... ............
28 years...................
27 years....................
28 years....................
29 years....................
30 years....................
31 years....................
32 years....................
33 years....................
34 years...................
35 years..................
36 y ears..................
37 years...................
38 years....... ............
39 years....................
40 years....................
41 years....................
42 years....................
43 years....................
44 years....................
45 years............ ........
46 years....................
47 years....................
48 years....................
49 years....................
50 years.....................
51 years................. .

78.00
78.26
79.56
81.12
82.68
83.98
85.54
86.84
88.40
89.96
91.26
92.82
94.12
95.68
97.24
98.54
100.10
101.40
102.96
104.52
305.82
107.38
108.68
110.24
111.80
113.10
114.66
115.96
117.52
119.08
120.38
121.94
123.24
324.80
126.36
127.66
129.22
130.52
132.08
133.64
134.94
136.50
137.80
139.36

Florins

$31.36
31.46
31.98
32.61
33.24
33.76
34.39
34.91
35.54
36.16
36.69
37.31
37.84
38.46
39.09
39.61
40:24
40.76
41.39
42.02
42.54
43.17
43.69
44.32
44.94
45.47
46.09
46.62
47.24
47.87
48.39
49.02
49.54
50.17
50.80
51.32
51.95
52.47
53.10
53.72
54.25
54.87
55.40
56.02

93.60
93.86
95.68
97.24
99.06
100.88
102.70
104.26
106.08
107.90
109.46
111.28
113.10
114.92
116.48
118.30
120.12
121.68
123.50
125.32
127.14
128.70
130.52
132.34
134.16
135.72
137.54
139.36
140.92
142.74
144.56
146.38
147.94
149.76
151.58
153.14
154.96
156.78
158.60
160.16
161.98
163.80
165.36
167.18

Florins

$37.63
37.73
38.46
39.09
39.82
40.55
41.29
41.91
42.64
43.38
44.00
44.73
45.47
46.20
46.82
47.56
48.29
48.92
49.65
50.38
51.11
51.74
52.47
53.20
53.93
54.56
55.29
56.02
56.65
67.38
58.11
58.84
59.47
60.20
60.94
61.56
62.29
63.03
63.76
64.38
65.12
65.85
66.47
67.21

124.80
125.06
127.40
129.74
132.08
134.42
136.76
139.10
141.44
143.78
146.12
148.46
150.80
153.14
155.48
157.82
160.16
162.24
164.58
167.18
169.26
171.60
173.94
176.28
178.62
180.96
183.30
185.64
187.98
190.32
192.66
195.00
197.34
199.68
202.02
204.36
206.70
209.04
211.38
213.72
216.06
218.40
220.48
222.82

$50.17
50.27
51.21
52.16
53.10
54.04
54.98
55.92
56.86
57.80
58.74
59.68
60.62
61.56
62.50
63.44
64.38
65.22
66.16
67.21
67.94
68.98
69.92
70.86
71.81
72.75
73.69
74.63
75.57
76.51
77.45
78.39
79.33
80.27
81.21
82.15
83.09
84.03
84.97
85.92
86.86
87.80
88.63
89.57

Florins

156.00
156.26
159.12
162.24
165.10
167.96
170.82
173.68
176.80
179.66
182.52
185.38
188.24
191.36
194.22
197.08
199.94
202.80
205.92
208.78
211.64
214.50
217.36
220.48
223.34
226.20
229.06
231.92
235.04
237.90
240.76
243.62
246.48
249.60
252.46
255.32
258.18
261.04
264.16
207.02
269.88
272.74
275.60
278.72

$62.71
62.82
63.97
65.22
66.37
67.52
68.67
69.82
71.07
72.22
73.37
74.52
75.67
76.93
78.08
79.23
8a 38
81. 53
82.78
83.93
85.28
86.23
87.38
88.63
89.78
90.93
92.08
93.23
94.49
95.64
96.79
97.94
99.08
100.34
101.49
102.64
103.79
104.94
108.19
107.34
108.49
108.64
110.79
112.05

Florins

187.20
187.46
191.10
194.48
198.12
201.50
205.14
208.52
212.16
215.54
218.92
222. 56
225.94
229.58
232.96
236.60
239.98
243.36
247.00
250.38
254.02
257.40
261.04
264.42
268.06
271.44
274.82
278.46
281.84
285.48
288.86
292.50
295.88
299.52
302.90
306.28
309.92
313.13
316.94
320.32
323.96
327.34
330.72
334.36

$75.25
75.38
76.82
78.18
79.64
81.00
82.47
83.83
85.29
86.65
88.01
89.47
90.83
92.29
93.65
95.11
96.47
97.83
99.29
100.65
102.12
103.47
104.94
106.30
107.76
109.12
110.48
111.94
113.30
114.76
116.12
117.59
118.94
120.41
121.77
123.12
124.59
125.88
127.41
128.77
130.23
131.59
132.95
134.41

The amount of the annuity is calculated upon a basic rate with
certain increases which are described below. The basic rate is found

290

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

by multiplying the total contributions paid by 260 and dividing the
product by the number of weeks the insurance has run; the number
of weeks during which the worker has received allowances for tem­
porary invalidity and the premiums paid during these weeks are
not considered. For the invalidity annuity, fractions of weeks are
counted as whole weeks. The increase amounts to 11.2 per cent of
the total amount of contributions paid, but this increase shall not
amount to less than one-fifth of the basic amount. For example, the
formula for calculating the basic amount for an insured worker who
has paid an average of 50 contributions of 0.50 florin (20 cents) per
week for 20 years would be as follows: 260X20X50X0.50 divided by
20X52, or 125 florins ($50.25). The total contributions paid havingbeen 500 florins ($201), the increase, amounting to 11.2 per cent of
this total, would be 56 florins ($22.51), so that the entire annuity
would be 181 florins ($72.76), which, in accordance with the practice
of fixing the annuities in figures which are multiples of 26, would
be raised to 181.22 florins. An annuity may not be increased.
The amount of the annuity therefore depends upon the number of
years during which stamps have been affixed and the value, according
to the worker’s classification, of the stamps themselves. As has
already been stated, a minimum of 150 weekly premium payments
is required before the insured is entitled to an annuity for permanent
or temporary invalidity.
Invalidity annuity.—Invalidity annuity is granted (1) to an in­
jured or incapacitated worker when classified as a permanent invalid
(i. e., when he is unable to perform one-third of the amount of work*
which a normal worker of the same class can perform), and (2) to
an injured or incapacitated worker when classified as a temporary
invalid, provided the incapacity for work has continued for six
months uninterruptedly.
The amount of the annuity for permanent invalidity and of the
allowance for temporary invalidity is based on the amount of the
contributions which have been paid in the form of stamps, in accord­
ance with the table of benefits. (See p. 289.)
Old-age benefits.—Contributions for old-age benefits are supposed
to be paid from the time the individual begins work until he reaches
his sixty-fifth year, provided he is eligible for insurance before he
reaches his thirty-fifth year. The amount of the benefits is based
on the number of contributions paid, and thus the benefits due must
be calculated in each case, both the invalidity and old-age benefits
being fixed in accordance with the table on page 289.
As has been mentioned, all workers, including those of 35 years
and older, were covered by the law of 1919. Those whose age was
T
35 years or more at the time of insurance must fulfill a qualifying
period in order to be entitled to ordinary old-age benefits, this quali­
fying period amounting to 1,248 contribution weeks. As this would
have prevented anyone from obtaining benefits before the lapse of 24
years from the date on which the law went into effect, it was provided
that those who were beyond 35 years of age at the time they came
under insurance—that is, when the law went into effect—may receive
benefits of 3 florins ($1.21) per week, provided stamps have been
affixed to their cards during forty-seven fifty-seconds of the number
of weeks that have elapsed up to their sixtieth year, and during

KMHEItLAK&S

291

thirty-nine fifty-seconds of the number of weeks which have elapsed
between their sixtieth and their sixty-fifth year.
In case the required number of qualifying weeks has not been
reached by the sixty-fifth year, the affixing of stamps may be con­
tinued weekly until this number—1,248—has been reached. In such
cases the old-age benefits do not begin with the sixty-fifth year, but
on the date on which the requirement regarding the number of weeks
for the payment of contributions has been met. This benefit may be
granted even if the number of contributions paid does not reach the
required minimum of 1,248, if the failure to affix stamps has been due
to unemployment or to illness which prevented the performance of
work; but in such cases the number of such weeks of enforced idle­
ness, together with the number of weeks in which contributions have
actually been paid must be equal to the required number—1,248.
Furthermore, the amount of the contributions paid must be at least
equal to as many times 0.25 florin (10 cents) as there are weeks in the
qualifying period—that is, 1,248—or a total of 312 florins ($124.80).
This benefit is not paid in case the insured worker or his wife pos­
sess sufficient property to subject them to the property tax. If the
worker and his wife are both entitled to benefits under this provision,
the man receives 3 florins ($1.21) per week while his wife receives
only 2 florins (80 cents). The annuities prescribed in the law for the
transition period (between the date on which the law went into effect
and the date upon which the normal annuities established become
effective) amount to 130 florins ($52.26) per year for each married
person in case the husband or wife is also receiving an annuity. In
ease one of such a married couple dies, the annuity of the survivor is
increased to 150 florins ($60.30) per year.
When the law went into effect there were naturally a large num­
ber of persons who were beyond the maximum age established for
eligibility for benefits, and for these the following provisions were
made: Under article 369 of the law, persons who had reached or
passed their seventieth year at the time the law went into effect are
entitled to benefit, provided they can show that they would have
come within the classification of compulsorily insured workers during
156 weeks of the 10 years immediately preceding their seventieth
birthday.
Article 370 makes provision for free insurance of another class
of old persons: There were a considerable number of people whose
financial circumstances and social standing, in a strict sense, placed
them in the category of workers, and the act of 1919 extends to
people of this class the same privilege as was accorded to those above
70 years of age by the act of 1913.
Medical treatment.—In case an insured worker is threatened with
permanent invalidity which may be prevented by appropriate treat­
ment, he may be given stipulated treatment or care at the expense
of the insurance fund. However, no treatment is given if the con­
tributions have not been paid with suitable regularity. The appli­
cation for medical treatment must be made to the labor board, and
must be accompanied by the current premium card, as well as by a
medical certificate, if possible.
While the requirement of the law as to temporary invalidity is
that the insured be incapacitated from performing work for a period

292

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

of six months, it is held that an application for payments under this
provision is not necessarily to be rejected even if the insured has
repeatedly or even regularly reported for work, or by extraordinary
tax upon his strength may have earned his regular wages, but as a
rule this principle applies only to workers to whom an invalidity an­
nuity has already been granted. In practice the law is interpreted
in such a way as to prevent the discouragement of the workers who
try to overcome their ailments and to continue to support themselves.
It is held also that the annuity fund would be prejudiced if workers
found it to their disadvantage to try to resume work before they were
certain that they would be able to continue. However, workers who
are able to perform labor intermittently may not receive payments
from the annuity fund.
Widows5 benefits.—The widow of an insured worker is entitled to
benefit provided her husband was receiving invalidity or old-age
benefits, or at the time of his death 40 contributions had been paid
on his account, but no benefit is paid to a widow when she married
the insured worker after he had entered his sixtieth year or after
he had been definitely or provisionally granted an annuity on ac­
count of incapacity to perform labor. Furthermore, benefits grant­
ed to a widow do not cease upon her remarriage.
A widow is eligible for benefit in case she becomes an invalid or
when she reaches the age of 60 years.
The amount of the annuity granted to a widow is equivalent to
one-fifth more than the basic annuity to which her husband would
have been entitled on the date of his death. In case the annuity
payable to a widow is less than 26 florins ($10.45) per year, it may
be commuted to a cash payment equal to its present worth.
Orphans’ benefits.—Upon the death of an insured father, his legiti­
mate or his lawiully recognized illegitimate children under 14 years
of age are entitled to an orphans’ annuity, provided the father was
receiving an invalidity annuity at the time of his death, or if con­
tributions had been paid on his account over a minimum of 40 weeks.
Children under 14 years of age of an insured mother have the right
to orphans’ annuity also, provided they are fatherless and the mother
was the bread-winner of the family. Furthermore, children under
14 years of age have the right to an orphans’ annuity after the death
of their father, regardless of whether he is insured or not, provided
the mother is insured and a minimum of 40 premiums has been
paid on her account.
The orphans’ annuity is calculated for all the children of the fam­
ily together and is paid in a lump sum until all the children have
reached the age of 14 years. Each child has the right to an equal
share of the annuity, the share of each child who reaches the age of
14 years being divided among the others who may still be under that
age. The amount of the orphans’ annuity is calculated in the same
way as the widow’s annuity; that is, six-fifths of the basic annuity
which the parent was receiving at the time of his or her death, or
would have received if the annuity had been granted as of the day
of his or her death. The orphans’ annuity is also commuted at its
present value if it is less than 26 florins ($10.45) per year.

NETHERLANDS

293

A dm inistration

Under the law of 1913 the National Insurance Bank, the Insur­
ance Board, and the labor boards are charged with the carrying out
of the law.
Labor boards.—Actual contact with the workers is maintained by
the various labor boards, each of which is charged with the super­
vision of the contribution cards of the workers, and with the en­
forcement of the provisions as to the obligations of the employers.
The duties of the labor boards are multitudinous, covering not only
the enforcement of the law, the collection of contributions, and the
supervision of the contribution cards with a view to avoiding loss
to the worker, but also having the moral obligation to promote the
successful operation of the law through timely advice to the workers,
with the purpose of educating them to an appreciation of the benefits
which accrue to them through a careful observance of the necessary
formalities.
The duties and powers of the labor boards mentioned in the law
itself, and which are to be specified and amplified by royal decree,
are as follows: The summoning and hearing of witnesses and experts;
the keeping of registers of persons subject to compulsory insurance;
the handling of insurance cards and insurance books; the prepara­
tion of applications, declarations, requests, and reports to the bank
and to the Superior Labor Board; the giving of information and
the taking of whatever action is necessary in connection with the
enforcement of the law; and the exchange of reports with the
National Insurance Bank and the Insurance Board.
Each labor board, of which there are 32 in the Kingdom, consists
of a chairman, who is appointed by the Crown, and at least eight em­
ployer members, with an equal number of substitute employer mem­
bers, and a like number of worker members with substitutes, all hold­
ing office for six years.
National Insurance Bank.—The National Insurance Bank is not
only charged with the custody of the insurance funds and their
proper investment but also exercises certain judicial functions in
connection with cases arising under the law, especially with respect
to determining the amount of the annuities and the validity of
claims, upon which the labor board must be heard.
Insurance Board.—Little is said of the Insurance Board in the law
itself, but it functions as a board of advice and appeal for the labor
boards. It is located at The Hague, and consists of six salaried
members, appointed by the Crown for terms of six years, and eight
unsalaried members, half of whom are elected by the employer mem­
bers of the local labor boards, while the other half are elected by
the worker members of the labor boards. One of the salaried mem­
bers of the Insurance Board acts as chairman, and there is also a
secretary who is appointed by the Crown.
Boards of appeal.—Regional boards of appeal for the handling of
appeals from the decisions of the National Insurance Bank under
the law of 1913, have been established at seven central points in the
Kingdom, while the Central Board of Appeals (Gentrale Baad van

294

PENSIONS AND INSURANCE IN FOREIGN CO'UNTKIES

Beroev), the court of last resort, is located in Utrecht, which is
more centrally located than The Hague and, therefore, more con­
venient for persons who must appear from all parts of the country.
The regional boards of appeal are composed of a presiding judge,
who is appointed for life by the Crown, a clerk of the court, and
normally 14 employer members and 14 worker members, although
this number may be changed for each board of appeal by the Minister
of Justice. The number in each place was fixed by the royal decree
of June 11, 1917, as amended by the decrees of February 19, 1923,
and July 10,1925. However, these boards hear cases and hand down
decisions with only three members of the court sitting; that is, the
presiding judge, one employer member, and one worker member, the
members to serve being designated by the Minister of Justice in a
calendar prepared by him.
The Central Board of Appeals at Utrecht is composed of a pre­
siding judge, one deputy judge or more if required, and at most
eight associate judges, all of whom are appointed for life by the
Crown. At the present time there are 1 presiding judge, 2 deputy
judges, and 6 associate judges.
Statistics o f Operation

Number of persons covered.—According to figures furnished by
the National Insurance Bank, the number of persons insured against
incapacity to work and old age was 2,547,099 on January 1, 1930.
The bank reports that it is impossible to state exactly the number
of each sex included in this number, but applying the ratio between
the numbers of each sex insured as shown by previous tables it may
be assumed that the number of male workers was 1,575,000, while
the number of females was about 973,000.
Number of beneficiaries and amount of benefits.—Data as to the
number of beneficiaries and the total amount of the benefits, January
1, 1930, furnished by the National Insurance Bank, are as follows :
7 0 .— Number of beneficiaries and total amount of benefits under com­
pulsory insurance in the Netherlands, January 1, 1930, by class of benefits

T able

[Conversions into United States currency on basis of florin=40.2 cents]
Total amount of benefits
Class of benefits

Invalidity.
Widows...
Orphans...
Old-age (compulsory insurance)
Free old-age annuities................

Total.

Number ------------------of bene­
ficiaries
Netherland
currency

United
States cur­
rency

Florins
25,569
14,153
11,616
79,293
28,395
159,026

3,941,054.16
2,441,070.63
2,029,868.36
11,886,317.01
4,316,381.78
24, 614, 691.94

$1,584,304
981,310
816,007
4,778,299
1,735,185
9, 895,106

295

NETHERLANDS

The Netherlands Bureau of Statistics, in the Maandschrift for
January, 1931 (p. 44), shows the number of persons receiving in­
validity insurance and the various types of old-age insurance on
January 1, 1931, and also the figures for 1921 (the first published),
1925, and 1928 as of January 1, giving an idea of the movement in
the various classes:
T able 7 1 . —Number of beneficiaries under compulsory invalidity and old-age

insurance in the Netherlands, January I, 1921. 1925, 1928, and 1981
1921

1925

1928

1931

Beneficiaries under art. 369......... .....................................
Beneficiaries under art. 370.............................. ...............
Beneficiaries under art. 373...............................................
Widows____- ______________________________________
Orphans__ _______________ ____________ ____ ____
Invalids______ _____ ______________________________

m il

i

Class of beneficiaries

23.800
39.800
40,600
4,100
6,200
7,700

12,400
28,700
63,100
9,400
9,700
19,500

5,604
18,492
87,009
16,762
12,225
29,326

It will be noted that no normal old-age pensions have been paid
as yet, and apparently none will be paid until about 18 years have
elapsed, as the normal insurance covers only those who were under
35 years of age when the law went into effect and none of the per­
sons under that age have yet reached the maximum. Thus, the
old-age pensions now being paid are classed as belonging to the tran­
sition period between the date on which the law went into effect and
the date upon which the normal annuities established become
effective.
The number of beneficiaries under the first two classes shown4
8
is naturally growing smaller, while the number under the third
class4 is growing larger and will continue to do so for some years,
9
but these three classes will eventually all be eliminated through the
death of the annuitants. It is probable that the maximum accre­
tion in the third class was reached in 1929, and while the total
number will probably continue to grow for some time, the peak
should be reached in a few years at most.
On xlpril 1, 1930, 26,354 insured workers were receiving invalidity
annuities, the total amount of which was 4,017,733 florins ($1,615,i29).
The number of persons receiving old-age benefits on April 1, 1930,
was 81,355, atfd the total amount of these benefits, on a yearly basis,
was 12,157,805 florins ($4,887,438).
Receipts and expenditures.—The principal sources of income of
the insurance fund are, for the present, the Government contribu­
tion as specified in the law, the contributions paid on account of
the workers, and the growing income from invested funds. The
** For description o f these classes, see p. 291.

4 Those above 35 but under 65 when the law went into effect.
9

296

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

receipts from the Government subsidy and the sale of contribution
stamps over a period of 10 years were as follows:
T able 7 2 . —Receipts from Government subsidy and sale of contribution stamps

under Netherlands compulsory old-age insurance system, 1921 to 19S0
[Conversions into United States currency on basis of florin=40.2 cents]
Government subsidy
Year

Netherland
currency

Florins

20.500.000
20, 500,000
20. 500,000
1.800,000
1,800,000
9, 423,000
11, 423,000
13.423.000
17.623.000
17, 623,000

192 1
192 2
192 3
192 4
192 5
192 6
192 7
192 8
192 9
193 0
Total.

134,615,000

United
States
currency

Contributions
Netherland
currency

Total

United
States
currency

United
States
currency

Netherland
currency

Florins

Florins

$8,241,000
32,399,000 $13,024,398
8.241.000
31,922,200 12,832,724
8.241.000
30.482.300 12,253,885
723.600
31.565.400 12,689,291
32.869.400 13,213,499
723.600
3.788.046
34,4S4,100 13,862,608
4.562.046
35.348.300 14,210,017
5.396.046
37,352,700 15,015,785
39,249,900 15,778,460
7.084.446
7.084.446 139,799,700 U5,999,479

52,899,000
52,422,200
50.982.300
33.365.400
34.669.400
43,907,100
46.771.300
50.775.700
56,872,900
57.422.700

$21,265,398
21,073,724
20,494,885
13,412,891
13,937,099
17,650,654
18,802,063
20,411,831
22,862,906
23,083,925

480,088,000

192,995,376

54,115,230

345,473,000 138,880,146

>Provisional.

Another source of income, comparatively small, is the so-called
mathematical reserve, which the Government pays into the Na­
tional Insurance Bank on account of persons who leave its military
or other service without having acquired the right to a fixed pension.
The National Insurance Bank states that the latest complete fig­
ures of receipts and expenditures of funds provided for in the law
of 1913 are for the year 1928, which were as follows:
T able 7 3 . —Statement of Netherlands National Insurance Bank on income and

expenditures of funds, 1928
[Conversions into United States currency on basis of florin=40.2 cents.]
Amount
Item
Netherland
currency
Income

Florins

Interest on invested funds_____ _________ ______ __ ______ _____________ 18,306,049.465
Contribution receipts________________________________________________ 37,502,247.210
Government subsidy______________________________________________ _ 13,423,000.000
Mathematical reserves______________________ ________________________
437,135.470
Total___________ ________________ ____________________________

United States
currency

$7,359,032
15,075,903
5,396,046
175,728

69,668,432.145

28,006,710

Administration costs____________ ____ _______________________________
3,884,336.825
Cost of medical treatment— ________________ ________________________ 2,141,620.030
Old-age and invalidity annuity payments___________ __________ _______ 17,301,517.350

1,561,503
860,931
6,955,210

T o ta l...________________________________________________ ______ 23,327,474.205

9,377,645

Expenditures

Per capita cost of administration.—The National Insurance Bank
reports that the cost of administration—3,884,336 florins ($1,561,-

297

NETHERLANDS

503)—is not separated to show the proportion which should be
charged to administration on account of those now drawing annui­
ties. However, the cost of administration on a per capita basis
for 1928, when the population was 7,703,577, which is stated to be
fairly typical of all years, was 0.5026 florin (20.2 cents). The cost
of administration chargeable to the annuitants was stated by the
bank to have been approximately 200,000 florins ($80,400), so that
the general cost of enforcing and administering the law was around
3,684,000 florins ($1,480,968). According to the 1929 figures, which
have just been supplied by the National Insurance Bank, the admin­
istration costs in 1929 were as follows:
T a b le 7 4 .— Administration costs o f old-age insurance funds in the Netherlands

in 1929
[Conversions into United States currency on basis of florin=40.2 cents]
Amount
Item

Netherland
currency
Florins

United States
currency

Operation of the bank________ - ______________________________________
Labor boards:
Paid by the National Insurance Bank_____________________________
Paid direct by the boards______________________ _____ ____________
Other expenses deducted from contribution payments______________
Insurance board:
Traveling expenses______________________________________________
Payment of employees detached from bank________________________

1,051,774.69

$422,813

109,167.14
3,516,298.19
410,410.96

43,885
1,413,552
164,985

3,625.94
18,565.94

1,458
7,464

Total.......................................................................................................

5,109,842.86

2,054,157

The per capita cost for that year, when the population of the
Netherlands was 7,832,911, was 0.6523 florin (26.2 cents). The cost
of administration per person insured in 1928 was approximately 1.56
florins (7 cents).
Voluntary Insurance
Voluntary old-age insurance in the Netherlands was established by
the law of November 4, 1919, which provides that every inhabitant
of the Kingdom and every Netherlander outside the Kingdom may
obtain an annuity upon reaching the age of 65 years, or at such
younger age as the Government may fix.
Coverage of System

Anyone living in the Netherlands, or any Netherlander living any­
where, may purchase an old-age annuity, this being done by means of
the payment of weekly premiums. It is also provided that a married
woman may acquire Government old-age insurance without the con­
sent of her husband, and any married person may acquire insurance
providing for the payment upon his or her death of an annuity to the
survivor.
Contributions

The amount of the premium depends upon the age of the person
when the insurance is taken out, and is determined in accordance
with a table which forms part of the royal decree of December 28,
*

298

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

1926. The table, showing the various ages at which the annuity may
become payable, the age at which the insurances taken out, and the
weekly premium payable for each florin of the weekly annuity, is as
follows, the premiums for annuities beginning with the fifty-sixth
and fifty-seventh year being omitted for lack of space:
T a b l e 7 5 . — Premium

payable per florin of annuity purchased under voluntary
old-age insurance in the Netherlands

[Conversions into United States currency on basis o f florin cent at p a r= 0 .4 0 2 cent]
Age at which annuity is payable
Age when insured

60
years

58 | 59
years j years

55
years

61
years

62
years

63
years

64
years

65
years

Netfcerland currency
Florin Florin Florin 1 Florin Florin Florin Florin Florin Florin
i
cents cents cents cents cents cents cents cents cents

037
.091
.095
099
.104
.108
.113
.118
.123
10 years................................................. .129
11 years.................. . . . ........... ............ .135
12 years............................................. . i .141
13 years................... ............................. .148
14 years........................ ........................ .155
15 years................................... ............ . 162
16 years............................ ................... .170
17 years................................................ .179
18 years....................................... ........ .188
19 years........... .............. ....................... .197
20 years........... ........................- ........... .207
21 years----------------------------------------- .218
22 years........................ ........... ............ .230
23 years........... ........... .......................... .243
24 years____________ ____ __________ . 256
25 years____ _____ _______ ____ - ........ .271
2 years------------- --------------------- f>
.287
27 years..................... ................. - ........ .304
28 years_______________ ___________
322
29 years........... ..................................... .342
30 years............................ - .................. .364
31 years........... —.................................. j .388
32 years................... ............................ ! .414
33 years................................... ............ ; .443
34 years................... - ........................... 1 .475
35 years__ _ _
________________
510
,*49
36 years___________________________
37 years___________________________
592
38 years____ _
_______________
fi41
39 years........................ ........................ .697
40 years................ ...... ......................... .7f0
41 years............. ...... -•
........................... . 833
42 years................ ...................... ......... .918
43 years................................................ 1. 017
44 years.................................. .............. 1.135
45 years................ ......... ...................... 1.277
1.452
46 years
_
_ __
1.671
48 years______ _____________ _______ 1.954
49 years...... ................ .................... 2. 332
50 years................................................ j 2.865
51 years__________
_________ ____
52 vears__ __
_
__
__________ j
..........
53 years__ ________ ______________ 1
54 years....................................... ......... i
55 years______ ___________________
■

2 years..................... ............................ !
3 years................................- ................!
4 years________________________ ___
5 years........................ .......... ..............
6 years..................... ................. - .........
7 years................................. - ..............
8 years................................- ................

i

58 yeans...... .................................
59 years........... __ .
...............
60 years......... ........................ ............ i

0.037 0.032 0.057
.064
.059
.089
.037
.062
.072
.054
.070
.075
.057
.073
.079
.070
.082
.076
.079
.073
.086
.082
.076
.090
.086
.079
.094
.083
.090
.098
.094
.086
.102
.098
.090
.107
.103
.094
.111
.107
.099
.116
.112
.103
.122
.117
.108
.127
.113
.123
.133
.118
.128
.140
.123
.134
.146
.129
.154
.141
.135
.161
.148
.142
.155
.169
.149
.163
.178
.171
.156
.187
.164
. 197 .180
.173
.190
.208
.182
.200
.219
.211
.192
.231
.202
.244
.223
.235
.214
.259
.249
.228
.274
.291
.264
.239
.309
.280
.253
.329
.297
.269
.350
.316
.285
.304
.374
.337
.360
.324
.400
.385
.345
.428
.460
.412
.370
.495
.443
.396
. 535 ! . 477 .426
.580 : .515
.459
.630
.559
.496
.607
.688
.537
.663
.584
.745
.832
.727
.638
.922
.802
.700
1.030
.809
.772
.994
1.160
.857
1.320 1.120
.958
1.521 1.275 1.079
1.780 1.469 1.229
2.127 1.721 1.417
2.616 2.058 1.660
2. 531 1.987
1
| 2.445
___ .• _____
! __ ___ __________
---------------

" i . "___
"

0.052 0.048 0.044 0.041
0.037
.055
.020
.046
.042
. 039
.057
.0/2
.048
.044
.040
.059
.054
.o:;o
.046
.042
.082
. 056
.052
.047
.043
.004
.059
.054
.049
.045
.087
.081
.056
.051
.047
.070
.034
.058
.053
.049
.073
.087
.081
.056
.051
.076
. 089
.063
.058
.053
.079
.072
.036
.oeo
.055
.083
.076
.039
.083
.057
.086
.079
.072
.056
.060
.090
.083
.075
.088
.052
.095
.086
.071
.079
. 085
.099
.090
.082
.075
.088
.103
.094
. 086
.078
.071
.108
.099
.032
.090
.074
.113
.103
.094
.085
.077
.118
.108
.099
.089 ' . 081
.124
.113
.103
.094
. 085
.130
.119
.108
.098
.039
.136
.124
.103
.113
.093
.143
.130
.118
.108
.097
.150
. 137 . 124
. 113
.102
.158
.143
.130
.118
.107
.151
.137
.124
.166
.112
.175
.158
.144
.130
.118
. 184
. 167
. 151
.137
.123
.194
.176
.159
.144
.130
.205
.185
.168
.151
.136
.216
.196
.177
.159
.143
.207
.229
.187
.168
.151
.243
.219
.197
.177
.159
.257
.232
.209
.188
.168
.246
.273
.221
.178
.198
.291
235
.261
.210
.188
.310
.278
! 249
.223
. 199
.331
.297
.285
.237
! 212
.354
.317
.252
.283
.225
.380
.339
.302
.269
.239
.408
.363
.323
.288
.255
.440
.391
.347
.308
.273
.475
.421
.373
.330
.292
.515
.455
.402
.355
.314
.561
.494
.435
.383
.337
.613
.537
.472
.414
.364
.672
.587
.513
.449
.394
.742
.645
.561
.489
.427
.823
.711
.616
.535
.466
.921
.790
.681
.588
.509
1.038
.884
.756
.650
.560
.722 • .619
1.183
.997
.846
1.365 1.136
.809
. 955
.689
1.600 1.312 1.089
.914
.771
1.915 1.539 1.258 1.043
.872
2.359 1.843 1.477 1.205
.994
2.271 1.770 1.415
1.151
2. m 1.697
1.3W
2.094
I, 621
2.006

299

NETHERLANDS

T a b le 7 5 .—Premium payable per florin of annuity purchased under voluntary
old-age insurance in the 'Netherlands— Continued
Age at which annuity is payable
Age when insured

55 ! 58
years years

59
years

60
years

61
years

62
63
years years

64
years

65
years

United States currency
Cents

Cents

Cents

Cents

0 year..................................... .............. 0.034 0.027 0.025
.026
.028
1 year................................................. . .035
.027
.037
.029
2 years................................................
.028
.038
.030
3 y ears...............................................
.029
.032
4 years................................................ . .040
.031
5 years................................................. . .042
.033
.032
6 years................ ................................. .043
.035
.033
.036
7 years.................................................. .045
.038
.035
8 years............................. ...... .............. .047
.049
.036
.039
9 years.................................................
.038
.041
10 years................................................. .052
.039
.054
.043
11 years................ ...............................
.041
.045
12 years............................ ................... .057
.043
.047
13 years................................................. .059
.062
.049
.045
14 years................ .............. .................
.047
.051
15 years................................................. .065
.0-19
.053
16 years................ ................................ .068
.056
.051
17 years.......................... . ........—......... .072
.054
.059
18 years................................................ .076
.062
.057
19 years................................................ .079
.059
.065
20 years____ ______ ________________
.068
.062
21 years........................... . . .................
.072
.066
22 years................................................. .092
.069
23 years.................................................
.075
.072
.103
24 years............................. ..................
.079
.084
.076
25 years.................................. .............. .109
.080
.088
26 years................................................ .115
.085
.093
27 years............................. ................... .122
.090
.098
.129
28 years................ ............ ..................
.094
.104
29 years....................................... ......... .137
.100
.110
30 years...... ............ ............................. .146
.106
.117
31 years.__________________________ .156
.113
.124
32 years................................................ .166
.132
.119
33 years.............. ................................ .178
.127
.141
34 years................................................. .191
.135
.150
35 years___________________________ .205
.145
.221
36 years...... ................... ................. .
.161
.155
37 years................ ............ ................... .238
.172
.166
.185
38 years...... .......................................... .258
.178
39 years...... .......................................... .280
.199
.192
40 years................ ................... ............. .306
.215
.207
41 years............................. ................... . 335
.233
42 years...............................................
.225
.253
43 years............................................
.244
.277
.409
44 years................................... .......... .456
.267
.299
.292
45 years.............. ..................................
.334
.513
46 years__________ ______ __________ .584
.322
.371
47 years...... .......................................... .072
.325
.414
48 years...... ...................... ...............
.400
. 786 .466
49 years........ ................. ...................... .937
.450
.531
.513
50 years........................... .................... 3.152
.611
. 591
51 years-. ............................... ..............
.716
52 years...... ............ ...........................
. 092
.855
.827
53 years.............. ...... ...........................
1.052
54 years.............................. .................
1.017
55 years...... ..........................................
56 years.-......................................
57 years...... ............ ............................
58 years........ ................................... .
59 years...............................................
60 years...... ................. ............

0.023
.024
.025
.026
.027
.028
.029
.031
.032
.033
.035
.036
.038
.040
.041
.043
.045
.047
.049
.052
.054
.057
.060
.063
.066
.070
.073
.077
.081
.086
.091
.096

Cents

Cents

0.019

Cents

0.021
.022

.023
.024
.025
.026
.027
.028
.029
.031
.032
.033
.035
.036
.038
.040
.041
.043
.045
.047
.050
.052
.055
.057
.060
.064
.067
.070
.074
.078
.082
.087
.092
.098
.103

.021

0.018
.018
.019
.020

0.016
.017
.018
.018
.019

I

Cents

.102

.108
.115
.122

.130
.139
.149
.159
.171
.185
.199
.216
.235
.256
.281
.310
.345
.385
.434
.494
.570
. 667
.799
.983

.110

.117
.125
.133
.142
.153
.164
.177
.191
.207
.226
.246
.270
.298
.331
.370
.417
.476
.549
.643
.770
.948

.020
.022

.023
.024
.025
.026
.027
.028
.029
.031
.032
.033
.035
.036
.038
.040
.041
.043
.045
.048
.050
.052
.055
.057
.061
.064
.067
.071
.074
.079
.093

.099

.105
.112
.119
.127
.136
.146
.157
.169
.183
.199
.216
.236
.259
.286
.318
.355
.401
.457
.527
.619
.741
.913

.021
.022

.023
.023
.025
.025
.027
.023
.029
.030
.032
.033
.035
.036
.038
.040
.041
.043
.045
.047
.050
.052
.055
.058
.061
.064
.068
.071
.075
.079
.084
.089

.094
.100

.107
.114
.121

.130
.139
.150
.162
.175
.190
.206
.226
.248
.274
.304
.340
.384
.438
.506
.594
.712
.878

.020
.020
.021

.023
.023
.024
.025
.027
.027
.029
.030
.031
.033
.034
.036
.038
.039
.041
.043
.045
.047
.050
.052
.055
.058
.061
.064
.068
.071
.076
.080
.084
.090
.095

.101

.108
.116
.124
.133
.143
.154
.166
.180
.197
.215
.236
.261
.290
.325
.367
.419
.484
.569
.682
.842

Cents
0.015
.016
.016
.017
.017
.018
.019
.020
.020

.021
.022

.023
.024
.025
.026
.027
.029
.030
.031
.033
.034
.036
.037
.039
.041
.043
.045
.047
.049
.052
.055
.057
.061
.064
.008
.072

.076
.080
.085
.090
.096
.103
.110

.117
.126
.135
.146
.158
.172
.187
.205
.225
.249
.277
.310
.351
.400
.463
.544
.653
.806

These rates are for males, those for females being slightly different.
However, the law provides for several classes of premiums to meet
special conditions, which are as follows:
(a)
The so-called “ net premium” class. The law of 1919 pro­
vided for the voluntary insurance of inhabitants of the Kingdom who
83300°— 32--- 20

300

PENSIONS AND INSURANCE IN FOREIGN COUNTRIES

had not reached the age of 35 years and whose income was below
2,000 florins ($804) per year. $uch persons insured themselves, ac­
cording to their own choice, for annuities of 3, 4, 5, or 6 florins
($1.21, $1.61, $2.01, or $2.41) per week. The cost of the insurance
was borne by the insured persons but with the understanding that
the cost of administration would be borne by the Government. As
a transition-period measure, however, those above the age of 35 who
did not come under the law of 1913 (compulsory insurance for work­
ers) could insure themselves during the first four years after the
law went into effect by paying the premium which was fixed for those
whose age was 34 years.
(b) The “ gross premium” class. The limitations established in
the original law with respect to the amount of the annuity gave rise
to considerable dissatisfaction, which led to its amendment May 19,
1922, providing for the increase of the limit to 20 florins ($8.04) per
week, but with the provision that the cost of administration was to
be charged to the insured, thus creating the “ gross premium ” class
of self-supporting insurance.
(c) The “ subsidized insurance5 class. The law states that “dur­
5
ing the first four years following December 3, 1919, ev