Switchmen's Union of North America; The Order of Railroad Telegraphers; American Train Dispatchers Association; Railway Employees' Department, A. F. of L.; International Association of Machinists; International Brotherhood of Boilermakers, Iron Ship Builders, Blacksmiths, Forgers, and Helpers; Brotherhood Railway Carmen of America; Sheet Metal Workers International Association; International Brotherhood of Electrical Workers; International Brotherhood of Firemen & Oilers; Brotherhood of Railway and Steamship Clerks, Freight Handlers, Express, and Station Employes; Brotherhood of Maintenance of Way Employes; Brotherhood of Railroad Signalmen of America; National Organization Masters, Mates & Pilots of America; National Marine Engineers' Beneficial Association; International Longshoremen's Association;_ Hotel & Restaurant Employes and Bartenders International Union; Railroad Yardmasters of America; Brotherhood of Sleeping Car Porters. The above organizations represent substantially all the railroad workers in the United States. We will be very grateful to you if you will introduce this bill and do all you consistently can to expedite its prompt consideration. Respectfully yours, LAWRENCE V. BYRNES, Assistant Grand Chief Engineer and National Legislative Representative, Vice President-National_Legislative Representative, Brotherhood of A. M. LAMPLEY, W. D. JOHNSON, Vice President and National Legislative Representative, Order of Railway Conductors. HARRY SEE, National Legislative Representative, Brotherhood of Railroad Trainmen. Executive Secretary, Railway Labor Executives' Association. The CHAIRMAN. I should add that nine Members of Congress have also introduced bills identical to H. R. 7840. These bills are H. R. 7869 by Mr. Staggers; H. R. 7951 by Mr. Klein; H. R. 7956 by Mr. Williams of Mississippi; H. R. 7973 by Mrs. Buchanan; H. R. 7979 by Mr. Radwan; H. R. 8016 by Mr. Bennett of Michigan; H. R. 8028 by Mr. Heller; H. R. 8085 by Mr. Mack of Illinois; and H. R. 8198 by Mrs. Sullivan. The reports on H. R. 7840 from the executive departments and agencies will be inserted in the hearings at this point together with a copy of this bill. (The bill and reports are as follows:) [H. R. 7840, 83d Cong., 2d sess.] A BILL To amend the Railroad Retirement Act, the Railroad Retirement Tax Act, and the Railroad Unemployment Insurance Act 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 SECTION 1. Subsection (h) of section 1 of the Railroad Retirement Act of 1937, as amended, is hereby amended by inserting after the end of the last sentence thereof the following: "Compensation for service as a delegate to a national or international convention of a railway labor organization defined as an 'employer' in subsection (a) of this section shall be disregarded for purposes of determining eligibility for and the amount of benefits pursuant to this Act if the individual rendering such service has not previously rendered service, other than as such a delegate, which may be included in his 'years of service.'' SEC. 2. The last paragraph of subsection (a) of section 2 of the Railroad Retirement Act of 1937, as amended, is hereby amended by striking the fourth sentence thereof. SEC. 3. Subsection (d) of section 2 of the Railroad Retirement Act of 1937, as amended, is hereby amended by adding after the end thereof the following paragraph: "No annuity under paragraph (4) or (5) of subsection (a) of this section shall be paid to an individual with respect to any month in which the individual is under age sixty-five and is paid more than $100 in earnings from employment or self-employment of any form: Provided, That for purposes of this paragraph, if a payment in any one calendar month is for accruals in more than one calendar month, such payment shall be deemed to have been paid in each of the months in which accrued to the extent accrued in such month. Any such individual under the age of sixty-five shall report to the Board any such payment of earnings for such employment or self-employment before receipt and acceptance of an annuity for the second month following the month of such payment. A deduction shall be imposed, with respect to any such individual who fails to makes such report, in the annuity or annuities otherwise due the individual of an amount equal to the amount of the annuity for each month in which he is paid such earnings in such employment or self-employment, except that the first deduction imposed pursuant to this sentence shall in no case exceed an amount equal to the amount of the annuity otherwise due for the first month with respect to which the deduction is imposed." SEC. 4. Subsection (a) of section 3 of the Railroad Retirement Act of 1937, as amended, is hereby amended by substituting "$200" for "$150." SEC. 5. Subsection (b) (1) of section 3 of the Railroad Retirement Act of 1937, as amended, is hereby amended by substituting for the parenthetical phrase "(including compensation in any month in excess of $300)" wherever it appears the phrase "(without regard to any limitation on the amount of compensation otherwise provided in this Act)." SEC. 6. Subsection (c) of section 3 of the Railroad Retirement Act of 1937, as amended, is hereby amended by inserting after the figure "300" the following: "for any month before July 1, 1954, or in excess of $350 for any month after June 30, 1954,"; and by adding at the end thereof the following: "If the employee earned compensation in service after June 30, 1937, and after the last day of the calendar year in which he attained age sixty-five, such compensation and service shall be disregarded in computing the monthly compensation if the result of taking such compensation into account in such computation would be to diminish his annuity.' SEC. 7. Subsection (e) of section 3 of the Railroad Retirement Act of 1937, as amended, is hereby amended by inserting after the comma following the word "respectively" the following: "individuals entitled to insurance annuities under subsections (a) and (d) of section 5 to have attained age sixty-five, and individuals entitled to insurance annuities under subsection (c) of section 5 on the basis of disability to be less than eighteen years of age,"; and by substituting the words "of the Social Security Act" for the word "thereof" in the last parenthetic phrases of the subsection. SEC. 8. Subsections (a) and (d) of section 5 of the Railroad Retirement Act of 1937, as amended, are hereby amended by substituting the word "sixty” for the word "sixty-five." SEC. 9. Subsection (f) (2) of section 5 of the Railroad Retirement Act of 1937, as amended, is hereby amended by substituting the word "sixty" for the word "sixty-five" wherever it appears; by inserting after the phrase "pursuant to subsection (k) of this section" where it first appears, the following: "Upon attaining age sixty-five at a future date, will be payable"; by inserting after the word "month" in the parenthetical phrase the following: "before July 1, 1954, and in the latter case in excess of $350 for any month after June 30, 1954"; and by inserting after the phrase "pursuant to subsection (k) of this section" where it appears in the proviso the phrase: "upon attaining age sixty-five be entitled to further benefits." SEC. 10. Subsection (g) of section 5 of the Railroad Retirement Act of 1937, as amended, is hereby amended by striking the last sentence of paragraph (2). SEC. 11. Subsection (i) of section 5 of the Railroad Retirement Act of 1937, as amended, is hereby amended by inserting the word "or" after the semicolon in clause (ii) of paragraph (1); by striking clause (iii) of such paragraph and by redesignating clause (iv) of such paragraph as clause (iii). SEC. 12. Subsection (1) of section 5 of the Railroad Retirement Act of 1937, as amended, is hereby amended by striking from paragraph (1) (ii) the phrase "and less than eighteen years of age" and substituting in lieu thereof the following: "and shall be less than eighteen years of age, or shall have a permanent physical or mental condition which is such that he is unable to engage in any regular employment: Provided, That such disability began before the child attains age eighteen." Such subsection is further amended by changing the semicolon at the end of paragraph (1) to a period, and adding the following: "Such satisfactory proof shall be made from time to time, as prescribed by the Board, of the disability provided in clause (ii) of this paragraph and of the continuance, in accordance with regulations prescribed by the Board, of such disability. If the individual fails to comply with the requirements prescribed by the Board as to the proof of the continuance of the disability his right to an annuity shall, except for good cause shown to the Board, cease." SEC. 13. Subsection (1) (9) of section 5 of the Railroad Retirement Act of 1937, as amended, is hereby amended by inserting after the term "calendar month" the phrase: "before July 1, 1954, and any excess over $350 for any calendar month after June 30, 1954"; and by substituting the figure "350" for the figure "300" where it appears the second time. SEC. 14. Subsection (1) (10) (i) of section 5 of the Railroad Retirement Act of 1937, as amended, is hereby amended by substituting the figure "350" for the figure "300." PART II SEC. 201. Section 1500 of the Railroad Retirement Tax Act is hereby amended by inserting after the word "month" the following: "before July 1, 1954, and as is not in excess of $350 for any calendar month after June 30, 1954." SEC. 202. Section 1501 of the Railroad Retirement Tax Act is hereby amended by inserting after the figure "300" where it first appears the following: "for any month before July 1, 1954, or in excess of $350 for any month after June 30, 1954"; and by inserting after the figure "300" where it appears the second time, the following: "if such month is before July 1, 1954, or is less than $350 if such month is after June 30, 1954". SEC. 203. Section 510 of the Railroad Retirement Tax Act is hereby amended by inserting after the word "month" the following: "before July 1, 1954, and as is not in excess of $350 for any calendar month after June 30, 1954". SEC. 204. Section 1520 of the Railroad Retirement Tax Act is hereby amended by inserting after the word "month" where it first appears the phrase: "before July 1, 1954"; by inserting after the figure "$300" where it first appears the following: ", and for any calendar month after June 30, 1954, not in excess of $350"; by inserting after the phrase "shall apply" where it first appears the phrase: ", with respect to any calendar month before July 1, 1954"; by inserting after the figure "300" where it appears the second time, the phrase: ", and with respect to any calendar month after June 30, 1954, to not more than $350"; and by inserting after the figure "300" where it appears the third time the phrase: "if the month is before July 1, 1954, or is less than $350 if the month is after June 30, 1954." SEC. 205. Subsection (e) of section 1532 of the Railroad Retirement Tax Act is hereby amended by inserting at the end thereof the following sentence: "Compensation for service as a delegate to a national or international convention of a railway labor organization defined as an 'employer' in subsection (a) of this section shall be disregarded for purposes of determining the amount of taxes due pursuant to this Act if the individual rendering such service has not previously rendered service, other than as such a delegate, which may be included in his 'years of service' for purposes of the Railroad Retirement Act.". PART III SEC. 301. Subsection (g) of section 1 of the Railroad Unemployment Insurance Act is hereby amended by adding at the end thereof the following sentence: "For purposes of determining eligibility for and the amount of benefits and the amount of contributions due pursuant to this Act, employment as a delegate to a national or international convention of a railway labor organization defined as an 'employer' in subsection (a) of this section, shall be disregarded if the individual having such employment has not previously rendered service, other than as such a delegate, which may be included in his 'years of service' for purposes of the Railroad Retirement Act.". SEC. 302. Subsection (i) of section 1 of the Railroad Unemployment Insurance Act is hereby amended by inserting after the term "calendar month" where it first appears the phrase: "before July 1, 1954"; and by inserting before the period at the end of the first sentence the phrase: "and with respect to any calendar month after June 30, 1954, no part of any compensation in excess of $350 shall be recognized". SEC. 303. Subsection (k) of section 1 of the Railroad Unemployment Insurance Act is hereby amended by substituting the figure "300" for the figure "150". SEC. 304. Subsection (a) of section 2 of the Railroad Unemployment Insurance Act is hereby amended by striking the last line of the table and substituting therefor the following: "$3,500 to $3,999.99_ $4,000 and over.. 7.50 8.00 Provided, however, That if the daily benefit rate in column II with respect to any employee is less than an amount equal to 50 per centum of the daily rate of compensation for the employee's last employment in which he engaged for an employer preceding the registration period, such rate shall be increased to such amount but not to exceed $8.". SEC. 305. Subsection (a) of section 8 of the Railroad Unemployment Insurance Act is hereby amended by inserting after the date "June 30, 1939” the following: ", and before July 1, 1954, and is not in excess of $350 for any calendar month paid by him to any employee for services rendered to him after June 30, 1954"; by inserting after the figure "300" where it first appears in the proviso of the subsection the following: "for any month before July 1, 1954, and to not more than $350 for any month after June 30, 1954", and by inserting after the figure "300" where it appears the second time in the proviso the following: "if such month is before July 1, 1954, or less than $350 if such month is after June 30, 1954". SEC. 306. Subsection (b) of section 8 of the Railroad Unemployment Insurance Act is amended by inserting after the date "June 30, 1939", the following: "and before July 1, 1954, and as is not in excess of $350 paid to him for services rendered as an employee representative for any calendar month after June 30, 1954". PART IV-EFFECTIVE DATES SEC. 401. The amendments made by this Act shall be effective July 1, 1954, except as otherwise provided. SEC. 402. The provisions of sections 1, 205, and 301 of this Act shall be effective as of April 1, 1954. SEC. 403. The provisions of sections 2, 3, 7, 8, 9, 11, and 12 of this Act shall be effective as of the first day of the first calendar month following the month in which this Act is enacted. SEC. 404. The annuity under section 2 (a) (4) and section 2 (a) (5) of the Railroad Retirement Act to any person who has been deemed to have recovered from his disability, pursuant to the provisions of the last paragraph of section 2 (a) which have been amended by sections 2 and 3 of this Act, shall be reinstated to begin the first day of the first calendar month following the month in which this Act is enacted and deemed, for purposes of section 2 (d) only, never to have ceased: Provided, That such proof is made of the continuance of such disability as is required in accordance with the provisions of such paragraph as are not amended by this Act. SEC. 405. The provisions of section 6 of this Act amending subsection (c) of section 3 of the Railroad Retirement Act, by adding a sentence at the end of the subsection, shall be effective as of November 1, 1951: Provided, however, That no increase in any annuity heretofore awarded shall be granted pursuant to the amendments made by such section except upon application therefor by the person to whom the annuity was awarded. SEC. 406. The provisions of section 10 of this Act shall be effective with respect to annuities accruing and annuities awarded on and after the first day after the enactment of this Act. SEC. 407. The provisions of section 303 of this Act shall be effective as of July 1, 1952. REPORT OF THE RAILROAD RETIREMENT BOARD TO THE COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE This is a report on H. R. 7840, introduced in the House of Representatives by Mr. Wolverton on February 12, 1954, and referred to your committee for consideration. OUTLINE OF PROVISIONS The bill would amend the Railroad Retirement Act, the Railroad Retirement Tax Act, and the Railroad Unemployment Insurance Act, in the following respects: 1. The bill would amend all three acts by (a) increasing for benefit and taxing purposes the present maximum compensation a month from $300 to $350; and (b) excluding the service of delegates to national or international conventions of railway labor organizations from the benefit and taxing provisions of the railroad retirement and railroad unemployment insurance systems if these delegates would not otherwise be covered by the railroad retirement system. 2. The bill would amend the Railroad Retirement Act by (a) reducing the eligibility age for survivor annuities of widows, dependent widowers, and dependent parents from 65 to 60; (b) permitting the payment of a survivor annuity to a child over age 18, and to its mother, if the child became totally and permanently disabled before age 18; (c) substituting a straight month-to-month work clause for the present recovery test for disability annuitants of earnings over $75 in each of 6 consecutive months (under this substitution, if the disability annuitant is paid more than $100 in any month in employment for hire or self-employment, his annuity would not be paid for such month); (d) permitting the payment to a widow, dependent widower or dependent parent of a survivor annuity under the Railroad Retirement Act without reducing the annuity by any retirement annuity under that act for which such widow, widower, or parent may be eligible by reason of his or her own employment; and (e) excluding from the computation of the "monthly compensation" an individual's earnings after the year in which he attained age 65 if such exclusion would result in a larger annuity. 3. The bill would amend the Railroad Unemployment Insurance Act by providing an additional daily unemployment-benefit rate of $8 if the employee's earnings in a base year totaled as much as $4,000. The present maximum rate of $7.50 a day would apply to earnings, in a base year, of $3,500 to $3,999.99. In addition, this amendment would provide that, if the daily benefit rate is otherwise less than 50 percent of the employee's daily wage rate, the benefit rate would be increased to one-half of the wage rate, but not to more than $8. RETIREMENT ACT AMENDMENTS 1. Increase in tax and creditable compensation base from $300 to $350 per month. Since about 40 percent of all present employees do not earn more than $300 a month, the increase in the tax base would not affect them. The remainder would pay the tax on the increase from $300 to $350 per month in the taxable base beginning July 1, 1954. The total taxable payroll would be increased by about 9 percent or $450 million a year, and retirement-tax collections by about $56 million a year. This amendment would of itself result in increased benefits which would cost approximately $31 million a year-$25 million under the retirement and $6 million under the survivor provisions. Deducting the increased benefits from the $56 million additional taxes leaves a net increase in revenue of about $25 million a year, which would be more than enough to pay the other benefit increases provided in part I of the bill. The $31 million increase in benefits from this provision plus the additional cost for other Retirement Act amendments included in the bill would total approximately $54 million. The $56 million additional revenue would more than pay for all the increased benefits provided for in the bill. The Director of the Bureau of Wage and Service Records strongly urges that the effective date of this provision be made January 1, 1955, instead of July 1, 1954. This would save the Board considerable expense in reconciling the correct compensation to be recorded to the employees' accounts, especially where the employee worked for more than one employer during the year. Similarly, it would appear that changing the maximum creditable compensation during the year would pose serious problems for employers making reports to the Board. Appropriate changes in the Railroad Retirement Tax Act to increase the taxable base from $300 to $350 a month are included in the bill. |