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STATEMENTS—Continued

Page

Habermeyer, Howard W., Chairman, Railroad Retirement Board ------

Prepared statement with attachment.---

Harper, Horace W., member, Railroad Retirement Board.-------

Healy, Thomas M., management member, Railroad Retirement Board.--

Supplemental statement.---

Koch, Eugene E., Assistant Director, Unemployment and Sickness Insur-

ance, Railroad Retirement Board -

78

Loomis, Daniel P., president, Association of American Railroads.--.

145

“Year of Decision: Clear Track or Crisis?” address before National

Association of Shippers Advisory Boards, St. Louis, Mo., February

11, 1959---------

166

Excerpts from ---

165
Matthews, Harry O., on behalf of the National Industrial Traffic League.. 264
Oliver, E. L., economic adviser, supplemental statement on behalf of Rail-

way Labor Executives' Association and Brotherhood of Locomotive Engi-
neers---------------------------

271
Schoene, Lester, attorney, representing Railway Labor Executives' Asso-
ciation --------
Supplemental statement on H.R. 4353 and H.R. 4354.--.

265

Shoemaker, Perry M., president, Delaware, Lackawanna & Western Rail-

road Co., presented by Roland Davis, vice president and general counsel,

- Delaware, Lackawanna & Western Railroad Co.---

181

Stack, Thomas, president, National Railroad Pension Forum, Inc., Chicago,
Ill.; accompanied by Robert Byrnes, regional vice president.-------

129

Prepared statement.--

137

Whitman, Frederic B., president, Western Pacific Railroad, San Francisco,

Calif.---

229

ADDITIONAL INFORMATION

Actuarial deficiency in the railroad retirement system after enactment of

the 1956 amendments ---

92

· Business experience of railroads by regions, 1956-58.-------

248

Difference between S. 226 and S. 1313.

Difference between S. 987 and S. 1313.-

255

Financial condition of railroad industry presented in behalf of the Railway

Labor Executives' Association..

237

Fringe benefits, 1957, research study prepared by Chamber of Commerce
of the United States, Washington, D.C --

------ 369-403

General analysis of changes which' S. 987 would make in S. 1630 and

S. 1651.-----

-- 124

Kolodrubetz, Walter W., characteristics of pension plans ------------- 360–368

Letters:

Carter, C. B., railroad pension conference, to Senator Morse, with

testimony attached regarding hearings on railroad retirement and
unemployment insurance benefits...

259

Clague. Ewan, Commissioner of Labor Statistics, to Senator Morse 342

Fain, Ġuy F., grand president, National Association of Retired and

Veteran Railway Employees, to Senator Morse------

59

Gadsby, Edward N., chairman, Securities and Exchange Commission,

to Senator Morse, with memorandum attached concerning private

pensions supplementing monthly benefits under Social Security

Act-------

Habenmeyer, Howard W., Chairman, Railroad Retirement Board, to:

Senator Hill, clarifying statement on S. 987..
Senator Morse, with statement entitled “Supplementary Pension

Plans in the Railroad Industry Covering Executive Em-
ployees" ----------------------------------- - -
Senator Morse, with memorandum attached entitled “Qualifying

Conditions for Railroad Unemployment Insurance Benefits" -
Senator Morse, with memorandum entitled “Retroactive Claims

for Railroad Unemployment Insurance Benefits".--
Healy, Thomas M., management member, Railroad Retirement
Board, to Senator Morse:
Substituting a broader summary of statement concerning S. 226,

dated February 13, 1959 ------
Supplemental statement to communication of February 13, 1959. 144

[graphic]

261

Letters-Continued

Loomis, Daniel P., Association of American Railroads, to Senator Page

Morse, containing relationship of operating costs to labor policies. 161
Loomis, Daniel P. and Leighty, G. E., Association of American Rail-

roads, to Senator Hill.-

Morse, Hon. Wayne, a U.S. Senator from the State of Oregon, to:

Edward N. Gadsby ------

278

-------
Ewan Clague, Commissioner, Bureau of Labor Statistics ------- 341
Schreiber, David B., Associate General Counsel, Railroad Retirement

Board, to the Board, showing amendments to S. 226.--
Stack, Thomas G., president, National Railroad Pension Forum, Inc.,
to Senator Morse:
Railroad service history of officer personnel.--

134

Supplementary information in amplification of testimony given

February 10.------

136

Triggs, Matt, assistant legislative director, American Farm Bureau

Federation, to Senator Morse-----

Memorandum concerning private pensions supplementing monthly benefits

under the Social Security Act-

--------

179

Net railway operating income bounces back, tables ---

119

Net railway operating income for September, October, and November,

1956-58.----

Organizations affiliated with Railway Labor Executives Association.----- 89

Problems in measurement of expenditures on selected items of supple-
mentary employee remuneration..---

*- 344-357

Qualifying conditions for railroad unemployment insurance benefits.----- 213

Railroad service history of officer personnel of the Railway Labor Executives

Association.

135

“Railroads as Five ‘Ops' to Join in Move for Solution of 'Featherbedding'

problem,from Traffic World, February 14, 1959------
Railway revenues and expenses.----

108

Savings railroads have made since 1948 reduction of the 3 percent tax rate

for the railroad unemployment insurance system top $1.1 billion.----- 236

Statement of American Retail Federation on proposals to alter the railroad

retirement and unemployment insurance systems.-----

Statement of manner in which retroactive claims under Railroad Unem-

ployment Insurance Act would be taken if S. 226 is enacted.---

220

Statistical series, release No. 1533...

Supplementary pension plans in the railroad industry covering executive

employees.----------

159

Survey of corporate pension funds, 1951-54...

283–335

Testimony of Railroad Pension Conference for enactment of H.R. 223 and
longer unemployment benefits.----

259

Wage structure: Électric and gas utilities, September 1957.----

------

--------------

----*336–340

358

AMENDING THE RAILROAD RETIREMENT ACT OF

1937

MONDAY, FEBRUARY 9, 1959

U.S. SENATE,
SUBCOMMITTEE ON RAILROAD RETIREMENT OF THE
COMMITTEE ON LABOR AND PUBLIC WELFARE,

Washington, D.C. The subcommittee met at 10 a.m., pursuant to notice, in room 4232, New Senate Office Building, Senator Wayne Morse (chairman of the subcommittee) presiding.

Present: Senators Morse (presiding), Clark, Case, and Cooper.

Committee staff members present: Stewart E. McClure, chief clerk; -Samuel V. Merrick, special counsel to the subcommittee; and Ray Hurley, professional staff member.

Senator MORSE. The hearing will come to order.

The Subcommittee on Railroad Retirement proceeds this morning with the first hearing on a series of bills that have been introduced relating to railroad retirement and unemployment legislation. Those bills are S. 226, S. 280, S. 875, and S. 987. (Copies of bills and reports follow:)

[S. 226, 86th Cong., 1st sess.] BILL To amend the Railroad Retirement Act of 1937, the Railroad Retirement Tax and the Railroad Unemployment Insurance Act, so as to provide increases in benefits, and for other purposes

Be it enacted by the Senate and House of Representatives of the United - States of America in Congress assembled,

Part I-AMENDMENTS TO THE RAILROAD RETIREMENT ACT OF 1937 Section 1. (a) Section 2(a)3 of the Railroad Retirement Act of 1937 is amended to read as follows:

3. Individuals who will have attained the age of sixty and will have completed thirty years of service or, in the case of women, who will have attained the age of sixty-two and will have completed less than thirty years of service, but the annuity of such individual shall be reduced by one one-hundred-andeightieth for each calendar month that he or she is under age sixty-five when the annuity begins to accrue.” · (b) Section 2(d) of such Act is amended by adding at the end thereof the following new sentence: "If pursuant to the third sentence of this subsection an annuity was not paid to an individual with respect to one or more months in any calendar year, and it is subsequently established that the total amount of such individual's earnings during such year as determined in accordance with that sentence (but exclusive of earnings for services described in the first sentence of this subsection) did not exceed $1,200, the annuity with respect to such month - or months, and any deduction imposed by reason of the failure to report earnings for such month or months under the fifth sentence of this subsection, shall then be payable. If the total amount of such individual's earnings during such year (exclusive of earnings for services described in the first sentence of this subsection) is in excess of $1,200, the number of months in such year with

respect to which an annuity is not payable by reason of such third and fifth sentences shall not exceed one month for each $100 of such excess, treating the last $50 or more of such excess as $100; and if the amount of the annuity has changed during such year, any payments of annuity which became payable solely by reason of the limitation contained in this sentence shall be made first with respect to the month or months for which the annuity is larger."

(c) Section 2(e) of such Act is amended by striking out “than an amount" and inserting in lieu thereof “than 110 per centum of an amount”.

(d) Section 2(g) of such Act is amended by inserting after "wife under age 65" the following: “(other than a wife who is receiving such annuity by reason of an election under subsection (h))".

(e) Section 2 of such Act is further amended by adding at the end thereof the following new subsection:

"(h) A spouse who would be entitled to an annuity under subsection (e) if she or he had attained the age of 65 may elect upon or after attaining the age of 62 to receive such annuity, but the annuity in any such case shall be reduced by one one-hundred-and-eightieth for each calendar month that the spouse is under age 65 when the annuity begins to accrue.”

SEC. 2. (a) Section 3(a) of the Railroad Retirement Act of 1937 is amended (1) by striking out "3.04”, “2.28", and "1.52" and inserting in lieu thereof “3.35", “2.51", and "1.67", respectively; and (2) by striking out "$200" and inserting in lieu thereof "$250".

(b) Section 3(c) of such Act is amended by inserting after “or in excess of $350 for any month after June 30, 1954,” the following: "and before January 1, 1959, or in excess of $400 for any month after December 31, 1958,".

(c) Section 3(e) of such Act is amended (1) by striking out "$4.55", "$75.90?', and “his monthly compensation" and inserting in lieu thereof “$5.00", "$83.50" and "110 per centum of his monthly compensation", respectively; (2) by striking out “is less than the amount, or the additional amount" and inserting in lieu thereof “is 'less than 110 per centum of the amount, or 110 per centum of the additional amount"; (3) by inserting after "age sixty-five,” the following: "women entitled to spouses' annuities pursuant to elections made under subsection (h) of section 2 to be entitled to wife's insurance benefits determined under section 202(q) of the Social Security Act,"; and (4) by striking out "such amount or such additional amount” and inserting in lieu thereof "110 per centum of such amount or 110 per centum of such additional amount.”

SEC. 3. (a) Section 5(f) (2) of the Railroad Retirement Act of 1937 is amended by striking out "and 7 per centum of his or her compensation after December 31, 1946 (exclusive in both cases of compensation in excess of $300 for any month before July 1, 1954, and in the latter case in excess of $350 for any month after June 30, 1954)," and by inserting in lieu thereof the following: "plus 7 per centum of his or her compensation paid after December 31, 1946, and before January 1, 1959, plus 742 per centum of his or her compensation paid after December 31, 1958, and before January 1, 1962, plus 8 per centum of his or her compensation paid after December 31, 1961 (exclusive of compensation in excess of $300 for any month before July 1, 1954, and in excess of $350 for any month after June 30, 1954, and before January 1, 1959, and in excess of $400 for any month after December 31, 1958),".

(b) Section 5(h) of such Act is amended by striking out "$33", "$176", and $15.40" wherever they appear and inserting in lieu thereof “$36.30”, “$193.60”, and “$16.95", respectively.

(c) Section 5(i) (1) (ii) of such Act is amended by striking out “or in which month he engaged on seven or more different calendar days in noncovered remunerative activity outside the United States (as defined in section 203(k) of the Social Security Act)” and inserting in lieu thereof the following: "or, having engaged in any activity outside the United States, would be charged under such section 203(e) with any earnings derived from such activity if it had been an activity within the United States”.

(a) Clause (A) (i) of section 5(1) (9) of such Act is amended by striking out the word "and" appearing after “July 1, 1954," and by inserting after “June 30, 1954," the following: "and before January 1, 1959, and any excess over $400 for any calendar month after December 31, 1958,".

(e) Clause (A) (ii) of section 5(1) (9) of such Act is amended (1) by inserting “and before 1959" after “1954" where it first appears; (2) by inserting after "$4,200" where it first appears the following: ", or for any calendar year after 1958 is less than $4,800,"; (3) by striking out “$350" and inserting in lieu thereof “$400"; and (4) by striking out "and $4,200 for years after 1954, by"

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