Old-Age Security Abroad: The Background of Titles II and VIII of the Social Security Act

Abstract

More than a hundred years ago Great Britain recognized in specific legislation that provision for old age through individual saving presented difficulties. In a statute enacted in i833,1 the British Parliament initiated a policy of offering old-age annuities through the National Debt Commissioner to persons who desired to make systematic preparation for income during their retirement period. Belgium, France and Italy2 enacted similar laws in the fifties. These measures had little practical result as the opportunities for purchase of old-age annuities secured by the public credit were not taken advantage of by appreciable numbers. More effective, of course, were the compulsory annuity arrangements set up in the latter half of the nineteenth century by various European countries3 for workers in selected industries, such as mining, navigation and later, railroading. In the case of mining, these schemes were but public organization on a compulsory basis of provident funds which provided accident and sickness insurance as well as old age protection. These funds dated back to the early middle ages and had always been, by virtue of custom more effective than any formal law, a required part of organized community life in mining villages.4 In point of time of origin the French Seamen's Invalidity and Old Age Insurance Fund commands special attention. It was established in i6735 and, barring occasional interruptions during periods of violent political change, continuously functioned thereafter. It was moreover not only the first compulsory insurance institution created by national law to provide old-age security but also in all probability the first