Social Security Legislation and Retirement Planning Affecting Water Works Employees

need for a comprehensive nation-wide program of social security has received increasing recognition for a number of years. In August, 1935, this problem first became a matter of national legislation with the passage of the Social Security Act. This act provided for old age and survivors ' insurance to be administered by the federal government, and offered to the states, federal co-operation in nine federal-state programs: unemployment insurance; aid to needy aged, needy blind, and dependent children; services for maternal and child health; child welfare; the treatment of crippled children; public health; and vocational rehabilitation. The part of this legislation in which water works men, as an employed group, are interested is that which has to do with old age and survivors' insurance. In the original bill, which became effective January 1, 1937, more than 43,900,000 accounts were established for industrial and commercial workers, but these did not include the more than one million municipal employees of the nation. Specific exemptions to participation in benefits of the Act as listed under Section 210 (b) include: "services performed in the employ of states, a political subdivision thereof, or an instrumentality of one or more states or political subdivisions. " This means that most water works employees receive no benefits from the legislation. The original Social Security Act placed upon the Social Security Board the duty of studying social needs and legislation and the further duty of making recommendations for progressive development. As a result, in August, 1939, on the basis of administrative experience and study, a bill was passed by Congress amending the Social Security Act to make it more nearly meet the needs of the