CONTENTS Page John T. Corbett, national legislative representative of the Brother- Hon. Joseph B. Eastman, Federal Coordinator of Transportation___ 85, 208 L. M. Eddy, Order of Railroad Telegraphers. Herman L. Ekern, counsel for the Railroad Employees National 30, 69 R. V. Fletcher, counsel, Association of American Railroads, Washing- 95, 123 Julius H. Parmelee, Director Bureau of Railway Economics, Associa- tion of American Railroads, Washington, D. C.. Hon. Frances Perkins, Secretary of Labor. Robert E. Quirk, representing the Domestic Freight Forwarders' Hon. M. W. Latimer, Railroad Retirement Board, Washington, D. C. 162 C. A. Miller, general counsel, American Short Line Railroad Associa- 141 99, W. W. Royster, president of the Railroad Employees Pension Associa- 28 Timothy Shea, assistant president of the Brotherhood of Locomotive RETIREMENT SYSTEM FOR EMPLOYEES OF CARRIERS THURSDAY, JULY 11, 1935 UNITED STATES SENATE, SUBCOMMITTEE OF THE COMMITTEE ON INTERSTATE COMMERCE, Washington, D. C. The subcommittee met, pursuant to call, at 10 a. m. in room 412, Senate Office Building, Senator Fred H. Brown (chairman of the subcommittee) presiding. Present: Senator Brown, chairman of the subcommittee. Senator BROWN. The subcommittee will come to order. We have under consideration this morning S. 3151, a copy of which will be incorporated in the record at this point. (S. 3151 is here printed in full, as follows:) [S. 3151, 74th Cong., 1st sess.] A BILL To establish a retirement system for employees of carriers subject to the Interstate Commerce Act Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, DEFINITIONS SECTION 1. That as used in this Act (a) The term "carrier " includes any express company, sleeping-car company, freight-forwarding company, private car line, or carrier by railroad subject to the Interstate Commerce Act, and any company which may be directly or indirectly owned or controlled by or under common control with any such carrier by railroad and which operates any equipment or facilities or performs any service (other than trucking service), in connection with the transportation of passengers or property by railroad, or the receipt, delivery, elevation, transfer in transit, refrigeration or icing, storage, or handling of property transported by railroad, and any receiver, trustee, or other individual or body, judicial, or otherwise, when in the possession of and operating the business of any such "carrier.' (b) the term "employee" means (1) each person who at or after enactment hereof is in the service of a carrier, or who at or after the enactment hereof is in the employment relation to a carrier, and (2) each officer or other official representative of an "employee organization" (herein called "representative"), who before or after the effective date has performed service for a carrier, who is duly designated and authorized to represent employees under and in accordance with the Railway Labor Act, and who, during, or immediately following employment by a carrier, was or is engaged in such representative service in behalf of such employees. (c) A person shall be deemed to be in the service of a carrier whenever he may be subject to its continuing authority to supervise and direct the manner of rendition of his service, for which service he receives compensation. (d) A person is in the employment relation to a carrier when furloughed or on leave of absence, and subject to call for service and ready and willing to serve, all in accordance with the established rules and practices usually in effect on railroads. 1 (e) The term "service period" as to a person who is an employee at the effective date of this Act means the total service of such employee for one or more carriers whether or not continuously performed either before or after the effective date. (f) The term "service period" as to a person who becomes an employee after the effective date means the total service of such employee for one or more carriers, whether or not continuously performed after the effective date. (g) The term "service period" includes as one month every calendar month during which the employee has rendered service to a carrier for compensation and includes as one year every twelve such months. An ultimate fraction of six months or more shall be computed as one year. (h) The term annuity means a fixed sum payable at the end of each completed month during retirement, ceasing at death or at resumption of service for which he receives compensation. (i) The term compensation means any form of money remuneration for active service, received by an employee from a carrier, including salaries and commissions, but shall not include free transportation nor any payment received on account of sickness, disability, or other form of personal relief. 66 (j) The term retirement" means the status of cessation of compensated service with the right to receive an annuity. (k) The term " age means age at the latest attained birthday. means the Railroad Retirement Board. (1) The term "Board (m) The term "effective date" means the 1st day of the second calendar month after the enactment of this Act. (n) The term " enactment" means the date on which this Act may be approved by the President or be finally passed. RETIREMENT SEC. 2. Retirement shall be compulsory, three months after the effective date, upon employees who shall have attained or thereafter shall attain the age of sixty-five years, except as hereinafter provided. The carrier and an employee by an agreement in writing filed with the Board may extend the time for retirement as to such employee for one year and thereafter in like manner for successive periods of one year each, but not beyond the age of seventy years. Until five years after the effective date, the compulsory retirement shall not apply to an employee who on and after the effective date shall have occupied an official position in the service of a carrier. The requirements of this section shall not apply to employees' representatives. ANNUITIES SEC. 3. The following-described persons shall be paid annuities: (a) A person (without regard to the period of service) who has qualified as an employee, who after the effective date shall have attained the age of sixty-five years, and who shall have retired and who at the time of the attainment of such age may or may not be in the service of a carrier. (b) A person who shall have completed thirty years of service as an employee and who after the effective date shall have attained the age of fifty-one years or more and who shall have retired. An annuity paid under this subdivision shall be reduced by one-fifteenth of such annuity for each year such person may be less than sixty-five years of age at the time of the first annuity payment. (c) A person who having completed twenty-five years of service as an employee and is retired by the carrier on account of mental or physical disability. The annuities hereinbefore mentioned shall be paid out of any money in the Treasury of the United States of America not otherwise appropriated. An annuity shall begin as of a date to be specified in a written application signed by the person entitled thereto, and approved by the Board, which date shall not be more than sixty days before the filing of the application, nor before the date on which the first annuity shall have become payable. No annuity shall be payable before three months after the effective date. An annuity shall be payable on the 1st day of the month after the month in which the annuity becomes due. An annuity shall not be paid for part of a month. Such annuity shall be based upon the service period of the employee and shall be the sum of the amounts determined by multiplying the total number of years of service by the following percentages of the monthly compensation : 2 per centum of the first $50; 11⁄2 per |