STATEMENTS-Continued 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- Koch, Eugene E., Assistant Director, Unemployment and Sickness Insur- ance, Railroad Retirement Board.. Loomis, Daniel P., president, Association of American Railroads__. Excerpts from__ Schoene, Lester, attorney, representing Railway Labor Executives' Asso- neers_ 79 145 166 165 264 271 Shoemaker, Perry M., president, Delaware, Lackawanna & Western Rail- 181 Stack, Thomas, president, National Railroad Pension Forum, Inc., Chicago, 129 Prepared statement__. 137 Whitman, Frederic B., president, Western Pacific Railroad, San Francisco, 229 ADDITIONAL INFORMATION Financial condition of railroad industry presented in behalf of the Railway 237 Fringe benefits, 1957, research study prepared by Chamber of Commerce 369-403 General analysis of changes which S. 987 would make in S. 1630 and Carter, C. B., railroad pension conference, to Senator Morse, with testimony attached regarding hearings on railroad retirement and unemployment insurance benefits.. Clague, Ewan, Commissioner of Labor Statistics, to Senator Morse.. 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- 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 Substituting a broader summary of statement concerning S. 226, Supplemental statement to communication of February 13, 1959 342 59 279 144 ADDITIONAL INFORMATION-Continued Letters-Continued Morse, Hon. Wayne, a U.S. Senator from the State of Oregon, to: Ewan Clague, Commissioner, Bureau of Labor Statistics. 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., Supplementary information in amplification of testimony given Triggs, Matt, assistant legislative director, American Farm Bureau Memorandum concerning private pensions supplementing monthly benefits under the Social Security Act... Net railway operating income bounces back, tables- Net railway operating income for September, October, and November, Page 161 59 278 341 261 119 117 Organizations affiliated with Railway Labor Executives Association__. 89 344-357 Qualifying conditions for railroad unemployment insurance benefits- Railroad service history of officer personnel of the Railway Labor Executives "Railroads as Five 'Ops' to Join in Move for Solution of 'Featherbedding' Railway revenues and expenses.. Savings railroads have made since 1948 reduction of the 3 percent tax rate for the railroad unemployment insurance system top $1.1 billion---- Statement of American Retail Federation on proposals to alter the railroad 172 Statement of manner in which retroactive claims under Railroad Unem- Testimony of Railroad Pension Conference for enactment of H.R. 223 and 259 AMENDING THE RAILROAD RETIREMENT ACT OF 1937 MONDAY, FEBRUARY 9, 1959 U.S. SENATE, SUBCOMMITTEE ON RAILROAD RETIREMENT OF THE 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.] A BILL To amend the Railroad Retirement Act of 1937, the Railroad Retirement Tax Act, 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 1 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 72 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". (d) 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" |