Net railway operating income1 for large railways of Central Western States, first 8 months and last 4 months, 1956, 1957, and 1958 1 Net railway operating income is the operating profit after taxes-the figure used by the Interstate Commerce Commission as the measure of returns of railway operations. Source: Interstate Commerce Commission, Statements M-125. Senator MORSE. The Chair is now ready to announce that the record of these hearings will be kept open until 5 p.m. 1 week from today, at which time the record will be officially closed. In the meantime, instructions to the staff are that it shall proceed to get the record underway for printing, and, during the intervening week, the subcommittee will arrange a conference with the Railroad Retirement Board members, the brotherhoods, and carriers, in the hope that they can agree on something. Any issue that can be removed from the consideration of the committee will be helpful. However, I want the record to show that all we are going to do will be to supply you with the physical facilities for such a meeting. Are there any questions? Senator Clark suggests, and it is a very good suggestion, that at such a meeting there be presented a parallel-column comparison of the bills that are before the committee; so that the parties to such a conference will have that instrument as an aid, we hope, in trying to arrive at some agreement on at least some issues. Mr. ANDERSON. Mr. Chairman, in that connection may I suggest that any such parallel-column material contain the provisions of S. 1313 of the last session of Congress which represents the original position of the Railway Labor Executive's Association in this matter? S. 226 here being discussed in a real sense represents a legislative instrumentality drawn by many people, including the Railway Labor Executives' Association. Senator MORSE. We will have that material of the original bill included. The record will show that we have already asked for the preparation of such a parallel-column document. I think we asked it of the staff, didn't we, Mr. McClure? Or did we ask it of the Railroad Retirement Board? - We asked it of the staff. So we will have that ready over the weekend for conferences. Are there any questions? (No response.) Senator MORSE. If not, as far as the formal hearings are concerned, the Chair declares the subcommittee adjourned. The record of the hearings, as I say, will be closed at 5 p.m., 1 week from today. (Whereupon, at 10:30 a.m., the subcommittee adjourned, to reconvene subject to the call of the Chair.) (The parallel table referred to by Senator Morse follows:) Railroad retirement and unemployment insurance changes RAILROAD RETIREMENT ACT CHANGES S. 1313 as originally introduced, 85th Cong. 1. Annuities and pensions up 10 percent. 2. Disability retirees able to earn up to $1,200 per year instead of $100 per month. 3. Women employees less than 30 years' service could retire on reduced basis at age 62, upon election. 4. Spouse's annuity on reduced basis at age 62, upon election. 5. Insurance lump sum payable despite deceased being survived by person eligible for survivor annuity. 6. Creditable compensation up to $400 per month. 7. Residual lump sum is increased to reflect increase in base to maximum of $400 a month, and increase in rates. 8. Survivor beneficiaries working outside United States get same work limitations as those in United States. Railroad Unemployment Insurance Act changes 8. 1313 as originally introduced, 85th Cong. S. 987, 86th Cong. Daily benefit rate changed from 50 percent of gross to 60 percent of net daily rate of pay (after reduction for taxes withheld); alternative schedule of rates based on total wages in base year eliminated, effective July 1, 1959. Maximum daily rate remains $8.50. Sundays and holiday disqualification extended to sickness benefits as well as unemployment benefits. Days of benefits in 1st registration period reduced from 7 to 5 for both unemployment and sickness. Unemployment benefits in later registration periods payable only if 7 days of unemployment in registration period or preceding 14 days, effective July 1, 1959. Minimum earnings to qualify are 87 times net daily rate of pay, effective July 1, 1959. Additional qualifying condition of 6 months of service in base year, of which 2 are in last half of base year, effective July 1, 1959. Also employee who exhausted benefit rights for unemployment or sickness must earn at least 20 times last daily benefit. in railroad unemployment to be again eligible for benefits of the type exhausted. Benefit and base years changed from present uniform years to individual years determined by date on which unemployment or sickness starts, effective July 1, Employee is disqualified if receiving, or (unless involuntarily unemployed) if eligible for, full annuity under Railroad Retirement Act or Social Security Act, instead of receiving the difference between unemployment or sickness benefits and the other benefits payable. Disqualification for voluntary quit, failure to accept suitable work, and failure to apply for work or report to an employment office changed from 30 days to duration of unemployment and until substantial reemployment obtained. Discharged or suspended employee is disqualified for duration of unemployment and until substantial reemployment obtained. No benefits payable under any circumstances to employees on strike. Maternity benefits eliminated effective July 1, 1959, with no unemployment benefits payable in maternity period and sickness benefits payable only if sickness is unrelated to normal pregnancy. Disqualification for unemploy ment benefits also disqualifes an employee for sickness benefits. Less than $300 million. Maximum earnings creditable and taxable up from $350 to $400 a month, effective Jan. 1, 1959. New contribution schedule as of Jan. 1 of any year based on the balance in unemployment insurance account on Sept. 30, of the preceding year, effective Jan. 1, 1959: If balance is Rate is (percent) Rate is (percent) 2 $450 million or more... 12 212 $400 to $450 million. 2 3 $350 to $400 million. 212 312 $300 to $350 million. Employee is disqualified for sickness starting more than 90 days after last railroad employment, excluding any days in registration periods and any days in which unemployed and on strike. Employee must be otherwise available for work to receive sickness benefits. 20. 21. 22. 3 312 A new tax of 12 percent is imposed on employees on earnings up to $350 a month, effective July 1, 1959, under new Railroad Sickness Benefit Tax Act. A separate sickness benefit account, out of which sickness benefits are paid, established as of July 1, 1959, to be supported by new employee tax and equivalent portion of regular employer contributions. For determining contribution rate, Sept. 30 balance in unemployment account would include half of bulance in sickness account and all balance in administration fund. |