Dennis, C. L., international president, Brotherhood of Railway & Airline Clerks, in behalf of the Congress of Railway Unions & Railway Executives Association____ Prepared statement.. Lake, R. D., vice president of Union Railroad, Lake Terminal Railroad, Page 99 110 217 Martin, John B., consultant to the American Association of Retired Persons, appearing in place of Cyril F. Brickfield, and accompanied by James M. Hacking, staff member. 203 Prepared statement of Cyril F. Brickfield. 207 O'Neill, Paul H., Associate Director for Community Affairs, Office of Management and Budget__ 136 Prepared statement. 138 Schoene, Lester P., counsel, Congress of Railway Labor Unions & Railway 117 Prepared statement__ 122 Speirs, Hon. Neil P., labor member, Railroad Retirement Board. Winpisinger, William W., general vice president of International Association of Machinists & Aerospace Workers, accompanied by Plato E. Papps, general counsel of the I.A.M. Railroad Retirement and Unemployment Insurance Programs Opera- Dempsey, William H., chairman, National Railway Labor Con- Dennis, C. L., international president, Brotherhood of Railway, Air- APPENDIX A Public Law 93-69 (H.R. 7200)-Railroad Retirement Temporary Benefit 73 185 116 222 227 Senate Report 93–202—(Joint Report of the Committee on Labor and 235 323 House Report 93-204-(Committee on Interstate and Foreign Commerce) 333 APPENDIX B Public Law 93-28 (H.R. 7357)-Railroad Retirement Act of 1937, amendment_ 423 Senate Report 93–215—(Joint Report from the Committee on Labor 425 merce). 439 RAILROAD RETIREMENT AMENDMENTS, 1973 WEDNESDAY, MAY 30, 1973 U.S. SENATE, SUBCOMMITTEE ON RAILROAD RETIREMENT OF THE COMMITTEE ON LABOR AND PUBLIC WELFARE, Washington, D.C. The subcommittee met at 9:30 a.m., pursuant to call, in room 4232, Dirksen Building, Senator William D. Hathaway (chairman of the subcommittee) presiding. Present: Senators Hathaway, Schweiker, Beall, and Taft. Committee staff members present: Angus S. King, Jr., counsel; and Eugene Mittleman, minority counsel. Senator HATHAWAY. The Subcommittee on Railroad Retirement will come to order. Today the Subcommittee on Railroad Retirement of the Committee on Labor and Public Welfare begins 2 days of hearings on the course of the Railroad Retirement System over the next several years. There is no need for me to reiterate in detail the situation of the system at the present time. The Members of the Senate who are present, as well as those individuals who have come today to testify, are acutely aware of the current precarious financial position of the railroad retirement system. I think I can safely say that it is the goal of all of us here, Senators and interested parties alike, to find a remedy for this situation which is both equitable to all concerned and long range in effect. To seek less is a shirking of the responsibility we have to the present retirees, as well as those now working whose retirement is still an expectation. Aside from a bill making several technical changes which has been submitted to us by the Board, S. 1886, and a bill introduced by Senator Ribicoff substantially identical to the House bill, S. 1805, the committee has before it today two bills: H.R. 7200, recently passed by the House, and S. 1867, which I introduced several days ago. At this point I order a copy of the bills referred to printed in the record. [A copy of the bills and other information supplied for the record follows:] (1) 93D CONGRESS 1ST SESSION S. 1867 IN THE SENATE OF THE UNITED STATES MAY 22, 1973 Mr. HATHAWAY introduced the following bill; which was read twice and, by unanimous consent, referred to the Committees on Labor and Public Welfare, Commerce, and Finance To amend the Railroad Retirement Act of 1937 and the Railroad Retirement Tax Act to revise certain eligibility conditions for annuities; to change the railroad retirement tax rates; and to amend the Interstate Commerce Act in order to improve the procedures pertaining to certain rate adjustments for carriers subject to part I of such Act, and for other purposes. 1 Be it enacted by the Senate and House of Representa 2 tives of the United States of America in Congress assembled, TITLE I-RAILROAD RETIREMENT ACT AMENDMENTS 3 4 5 6 SEC. 101. Section 2 (a) of the Railroad Retirement PART A-TEMPORARY PROVISIONS 7 Act of 1937 is amended II 1 2 3 4 5 6 7 8 9 2 (1) by striking out "Women" in paragraph 2 and inserting in lieu thereof "individuals"; (2) by striking out "Men who will have attained the age of sixty and will have completed thirty years of service, or individuals" in paragraph 3 and inserting in lieu thereof "Individuals"; and (3) by striking out "such men or" in paragraph 3 thereof. SEC. 102. (a) Section 3201 of the Internal Revenue 10 Code of 1954 (relating to the rate of tax on employees under 11 the Railroad Retirement Tax Act) is amended by striking 12 out all that appears therein and inserting in lieu thereof the 13 following: 14 "In addition to other taxes, there is hereby imposed on 15 the income of every employee a tax equal to the rate of the 16 tax imposed with respect to wages by section 3101 (a) of the 17 Internal Revenue Code of 1954 plus the rate imposed by 18 section 3101 (b) of such Code of so much of the compensa19 tion paid to such employee for services rendered by him 20 after September 30, 1973, as is not in excess of an amount 21 equal to one-twelfth of the current maximum annual taxable 22 'wages' as defined in section 3121 of the Internal Revenue 23 Code of 1954 for any month after September 30, 1973." 24 (b) Section 3202 (a) of such Code is amended 1 2 3 4 5 6 7 8 3 (1) by striking out "1965" wherever it appears in the second sentence thereof and inserting in lieu thereof "1973"; (2) by striking out "(i) $450, or (ii)" wherever it appears in the second sentence thereof; and (3) by striking out ", whichever is greater," wherever it appears in the second sentence thereof. (c) Section 3211 (a) of such Code (relating to the 9 rate of tax on employee representatives under the Railroad 10 Retirement Tax Act) is amended by striking out all that 11 appears therein and inserting in lieu thereof the following: "In addition to other taxes, there is hereby imposed on 12 13 the income of each employee representative a tax equal to 14 9.5 percent plus the sum of the rates of tax imposed with 15 respect to wages by sections 3101 (a), 3101 (b), 3111 (a), 16 and 3111 (b) of the Internal Revenue Code of 1954 of so 17 much of the compensation paid to such employee repre18 sentative for services rendered by him after September 30, 19 1973, as is not in excess of an amount equal to one-twelfth 20 of the current maximum annual taxable 'wages' as defined 21 in section 3121 of the Internal Revenue Code of 1954 for 22 any month after September 30, 1973." 23 (d) Section 3221 (a) of such Code (relating to the rate 24 of tax on employers under the Railroad Retirement Tax 25 Act) is amended by striking out "In addition to other |