Federal Coal Mine Health and Safety Act of 1969

We know tbat total earnings for workers in this part of t,he

distribution is

w//,=I,” zd?4

ak2x-a

Then the average wage paid to workers with at least x4

dollars is

Average =

Total wages

--PO1 a-l

(Y-2

=-----=---zq

Total workers

1-a

a-2

-- 24

a-l

Note, then, that we may calculate the average wage using

only known quantities.

Then the total wages for 1.4 workers may be expressed as:

Tot,al wages = Ydsz4

Federal Coal Mine Health

Act of

1969”

and Safety

011 December 30, 1969, President Nixon signed

the Federal Coal Mine Health and Safety Act,

of 1969 (P.L. 91-173). The law is primarily

designed to establish nationwide health and safety

standards for the coal-mining industry. It also

includes an income-maintenance provision that is

of unusual interest since it gives the Federal

Government, a temporary responsibilit,y in the

area of workmen’s compensation. Under tit,le

IV of the new law, monthly cash benefit,s are

ljrovided for coal miners who are “totally dis-

abled” because of pneumoconiosis (“black lung”

disease) and for their dependents and survivors.

Two Federal agencies-the Department of

IIealth, Education, and Welfare and the Depart-

ment of Labor-will be involved in administering

the ~41 benefit provisions. As the result of modi-

ficat ions made by the House-Senate conference

committee in the bills originally passed by each

House, the I)cpartment of Health, Education, and

Welfare (t,hrough the Social Security Adminis-

tration) will be responsible for the payment and

administration of benefit claims filed before cJanw

nry 1, 1973. The Department of Labor will have

the responsibility for claims filed after December

31, 1972.

The monthly benefits payable by the Social

* I’reIjared in the Interprogram Studies Branch, niri-

sion of Economic and J,ong-Range Studies, Of&e of

Resmrvh nnd Statistics.

Security Administration to a miner disabled by

pneumoconiosis or to the widow of a miner who

died with t:he disease will be a flat amount-

about $136 at the present. (The amount of the

benefit Iv-ill be equal to 50 percent of the mini-

mum monthly payment to which a totally dis-

abled Federal Government employee in the first

st,ep of grade GS-2 would be entitled under the

Federal Employees’ Compensation Act.) For one

dependent. ( jvife or

childl) an additional 50

percent of t.he miner’s benefit will be payable and

the total payment will thus be about $204. For

two dependents, the additional amount will be 75

percent of the benefit (a total of $238), and for

three or more it will be 100 percent (a total of

$272). If the deceased miner does not leave an

eligible widow, however, no survivor benefits are

payable (even when there are surviving children

who were paid the supplemental benefits while

the miner was alive).

Benefit payments to a miner or his widow will

be reduced if the beneficiary is also receiving

payments under the workmen’s compensation,

unemployment insurance, or disability insurance’

programs of a State on account of the disability

of the miner. Benefits paid to miners (but not

widows) will also be subject) to an earnings test,

the provisions of which Iv-ill be the same as the

retirement, test provisions under the Social Secu-

rity Act. The law specifies that benefit payments

will not, be subject to Federal income tax.

To be eligible for the benefits paid by the

Social Security Administration, the disabled

miner must, file his claim before Jcnuary 1, 1973.

A widow’s claim must, be filed within 6 months

after the death of her husband or by December

31, 1972, whichever is later. Benefits are payable

to a widow of a miner if he was receiving “black

lung” benefits before his death or if he died from

the disease.

In addition, the program provides that, if a

claim is filed after December 31, 1971, but, before

.January 1, 1973, the claimant can receive benefits

from the Social Security Administration only

through December 31, 197d. The benefits will con-

1 The definition of child follows that in the Federal

Employees Compensation Act. Thus, benefits are lrayable

to an unmarried child who is under age 18, totally dis-

abled, or a full-time student under age 23.

? Temporary disability insurance laws are in operation

in California, Hawaii, Sew .Jersey, Sew York, Rhode

Island, and Puerto Rico.

SOCIAL SECURITY

tin-de

indefinitely for claimants who filed for

benefits before 1972, as well as for widows on the

death of a miner who was a beneficiary under

the program.

The benefits are not retroactive--that is, no

benefits will be paid for any period before the

date on which a claim for them is filed. In order

to assure that all persons get the full benefits to

which they are entitled, the Social Security Ad-

ministration began immediately to accept protec-

t ive applications. Those who qualify will thus

be able to draw benefits from the date of filing

even if some of the legal questions regarding the

law are not, resolved.

The law provides that, to the extent, feasible,

personnel and procedures used in processing dis-

ability insurance claims under the Social Security

act will be used in processing claims for “black

lung’? benefits. The Secretary of Health, Educa-

tion, and Welfare is authorized to prescribe the

standards for determining whet,her a miner is

totally disabled or died as a result of pneumoconi-

osis, but such standards must. not be more restric-

tive than the criteria applicable in making dis-

ability determinations under the Social Security

Act. The new iaw also provides that claimants

may bo reimbursed for reasonable medical ex-

penses incurred by them in establishing their

claims.

“Pneumoconiosis,”

for the purpose of these

benefits, is defined as a chronic dust disease of the

lung arising out of employment in an under-

ground coal mine. If a miner who is suffering or

has suffered from the disease was employed in one

or more underground coal mines for 10 or more

years, there is a rebuttable presumption that his

disease arose out of such employment. If a de-

ceased miner was so employed a.nd died from a

respiratory disease, there is also a rebuttable pre-

sumption that, death was the result of the disease.

If a miner is suffering from or dies having an

advanced irreversib1.e state of pneumoconiosis, it

will be irrebuttably presumed that. he is totally

disabled or his death was caused by the disease.

The benefits and costs of administration will

be borne through the general fmids of the Treas-

ury and will require special appropriations. Bene-

fit costs of the program are roughly estimated at

$SOO million for the first, full fiscal year of opera-

tion, which ends June 30, 1971.

The law includes a “maintenance of effort”

provision under which any reduction by a State

in its workmen’s compensation, unemployment

insurance, or disability benefits fcr persons eli-

gible to receive the

“black lung!’ benefits will

result in a stoppage of the Federal p+yment,s to

residents of that State. An exception is to be

made :vhere the State program is funded through

general revenues (in contrast to funding by em-

ployer contributions).

Pennsylvania appears to

be the only State that, provides benefits to victims

of the disease through a program funded in some

instances through general revenues.

One of the questions that, had to be resolved is

whether the “black lung” benefits are to be con-

sidered workmen’s compensation payments for

purposes of applying the workmen’s compensation

oflset provisions contained in the disability in-

surance provisions of tile Social Security act.

The workmen’s compensation offset, provides that

a disabled worker mlder age 62 who is also re-

ceiving periodic workmen’s compensation benefit

may have his disabilit,y insurance benefit under

the Social Security Act reduced so that the total

benefits payable to him and his dependents under

both programs will not, exceed 80 percent of his

average

monthly earnings before he became

disabled.

For benefit claims filed after 1972, overall

responsibility for the program will shift to the

Depart ment of Labor.

Such claims lvill be proc-

essed under State workmen’s compensation laws

in those States with laws that, are approved by

the Secretary of Labor as providing adequate

coverage for pneumoconiosis. Generally speaking,

a State law will be determined to have adequate

coverage for pneumoconiosis if the cash benefits

under such law and the criteria for determining

eligibility are not less

favorable to the claimant

than those applicable to claims filed before

January I, 1973.

Where a State workmen’s compensation law

does not have the approval of the Secretary of

Labor, coal mine operators will be liable for pay-

ment of benefits that, are to be secured through

self-insurance or purchase of an insuranca policy.

In such cases, the benefit levels are to be the same

;as those provided under t,he federally financed

part of the program and are to be made under

the same conditions that would apply if the claim

were subject, to

the provisions of the Federal

J~ongshoremen’s and Harbor Workers’ Compen-

(Continued on payc 25)

BULLETIN, MARCH 1970

TABLE M-4.-Selected social insurance and related programs: Contributions and taxes collected, 193949

Retirement, disability, and survivor

__--

Period

Old-age and

survivors

insurance 1 2

Fiscal year:

1939-40 . .._.......... . . . . . . . . . . . ~._.

$6’J4,694

1944-15....~~........~..-......~~.~..

1,309,919

194%50 ._._........ . . .._.... ~.~ . .._.

2.106.388

1954-55 ..__. . . . . . . _..__ ~. ~. ._.

5,087,154

1959-6O.w.. ._ .__ _ _ ._ _ _ _. _

9342,685

1960-61_.._.._____ _ __.._____ __ _. _.

11,292,676

Ml-62 _____._.__. _ ..____._. . . . . . . 11,454,643

1962-63 _____ _ _ _ _ ._ _ _ _ _ _

13,327,762

1963-64--.. _ __ _. _ _ _ _ _. _. _ _

15,502,726

1964-65 ---. _ ____ --. __ _ __. _ _. _ . _ 15,857,212

1965-66-.............--.............. 17,865,947

196647. ____ __ __. _. _ _ _. _. _. _

22,567,002

1967-68...-.-.......---.-.-.--....-.

22,662.430

1968-69....~.-......~~.............. 25,952,737

1968

~\rovember.--...--.--..-...---.--.-.-.

2,417,957

December-....-.-..--.-........-.-.-.

1.347.238

1969

1,382,610

2,966,019

1,982,2X

2,774,957

3.637,913

1.960,690

1,974,809

3,431,296

2,026,639

1,622,782

2,688,816

.--

Disability

w.wance 1 1

$987,079

1,022,002

;Jg,sg

1:143:161

1,175,244

1,556,652

2,249,397

2.699.368

3,532,434

269,593

217,824

---__

Federal

civil

service s

m;,;;;

662:262

469,856

1,503,695

1,745,833

1,759,404

1,884,796

2,036,419

2,182,203

2,277,013

2,469,071

2,724,9x1

2,818,825

226,494

255,942

266,515

221,089

236,824

247,554

230,121

194,181

349,774

265,706

254,512

263,876

225,715

Railroad

etirement : 4

Hospital

insurance

under

OASDHI ’ 25

State

unemploy

ment

insurance 6

$120,967

285,038

550,172

6W, 106

606,865

570,713

564,218

571,534

593,477

635,545

683,458

776.493

814,399

It84.746

$908,797

2,704,884

3.557,662

4,477,012

$853 ( 955

1,251,958

1,094,406

1,142,OOQ

2,164,757

2,361,279

2,709,253

3,005,409

3,043,408

3,046,428

2,961,&378

2,911,247

2,597,635

2,5.55,110

145,281 339,644 299,201

71,543 268,419 14,048

11,354

143,235

83,074

8,101

158,607

73,925

12,283

93,359

82,791

i5,512

151,449

246,744

492,186

;3;,;;;

568:545

345,374

318,187

545 ) 002

389,955

252,331

421,732

100,265

237,492

15,365

288,236

684,773

16,705

238,906

487,728

15,339

144,703

298,626

Federal

unemploy-

ment

taxes 7

Railroad

““@J&w

insurance 6

up;

226: 306

279,986

341,108

345,356

452,638

945,367

846,667

614,891

561,014

596,7i3

600,980

633,178

568 8,987

88 24.629

100,836

505,489

9,751

4.866

5,888

964

854

971

iii!

fiO7

444

8,984

24,065

709

5,885

25,676

549

5,645

269%

6,47b

1 Representscontributions ofemployees, enployers, and the self-employed

ment. Includes contributions for hospital insurance coverage of railroad

in employments covered by OASDHI under the Social Security Act, on an

workers under the Social Security Amendments cl 1965: excludes interest

estimated basis, with suitable subsequent adjustments. Data for earlier thereon.

years reflect former aplwpriation bases. Includes deposits by States under

voluntary coverwe agreements. Enmloyee-tax refunds deducted. Excludes

6 Represents deposits in State clearing accounts of contributions plus

nenalties and interest collected from emnlorcrs and contributions from

transfersfrom generairevenues. -

j Excludes transfers between OASDHI svstem and railroad retirement

?xnployees (3 States in recent years). Excludes contributions co!lected for

denosit in State temnorarv disabilitv insurance funds. Data renorted bv

account under the financial interchange pro&ions of the Railroad Retire- St&agencies. . I

lnent Act. 7 Represents taxes paid by employers under the Federal Unemployment

s Represents employee and employing agency (Government) contribu- Tax Act. Beginning 1961, net of tax refunds Includes tax proceeds for fl-

tions. Employee share includes voluntary contributions

purchase nddi-

t.ional annuity. Data reported by Federal Civil Service Commission.

nancing tixnporary extended unemployment compensation programs for

1958 and 1961.

insurasce co;erage’oI railroad workers.

4 Beeinnine 1959. net of tax refunds. Excludes contributions for hosnital

5 Excludes reimbursement from Treasury general funds for cost of benefits

for persons not insured for cash benefits under OASDHI or railroad retire-

8 Besinninr! 1947. also covers railroad temnorarv disabilitv insurance.

So&e: Afklhly and Final Slalcmo:t oJkccei& and E&enditures oJ the

U.S. Cotwmmcnt and other Treasury reports, unless otherwise noted.

COAL MINE LEGISLATION

(Continued from page

21)

sation Act. Benefit payments will be reduced by

the amount of any Federal or State workmen%

compensation cash payments made for the same

disease. Where payment from a coal mine oper-

ator or his insurer cannot be obtained, the Secre-

tary of Labor will make t,he payments to which

a lotally disabled miner or his widow is entitled

under the Federal Coal Mine Health and Safety

Act. For such claims filed later than December

31, 1972, no payment of benefits by coal mine

operators or their insurers may be required after

7 years following the date of enactment.

The new legislation requires t,hat an approved

State workmen’s compensation law must. contain

provisions governing the liability of successor

coal operators. These provisions are intended to

prevent any operator from escaping liability for

paying compensation by the expedient of trans-

ferring ownership of the mine before January 1,

1973.

BULLETIN, MARCH 1970