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Angell, Hon. Homer D., a Representative in Congress from the State of Oregon--------------------------------------------------Boo floor. B., regional vice president, National Railroad Pension Orum ----------------------------------------------------Clason, Hon. Charles R., a Representative in Congress from the State of Massachusetts-------------------------------------------Devitt, Hon. Edward J., a Representative in Congress from the State of Minnesota-----------------------------------------------Ellis, Hon. Hubert S., a Representative in Congress from the State of West Virginia----------------------------------------------Foote, Hon. Ellsworth B., a Representative in Congress from the State of Čonnecticut TTTTTTTT---------------Fort, Carter, vice president and general counsel, Association of American Railroads----------------------------------------------Haas, Herbert A., Brooklyn, N. Y------------------------------Kendrick, Benjamin B., social security analyst, United States Chamber of Commerce-----------------------------------------------Kennedy, William J., chairman, Railroad Retirement Board--------Kunkel, Hon. John C., a Representative in Congress from the State of Pennsylvania--------------------------------------------Love, Hon. Francis J., a Representative in Congress from the State of West Virginia----------------------------------------------O'Hara, Hon. Joseph P., a Representative in Congress from the State of Minnesota-----------------------------------------------Priest, Hon. J. Percy, a Representative in Congress from the State of Tennessee-----------------------------------------------Schoene, Lester P., general counsel, Railroad Labor Executives' Association------------------------------------------------Snyder, Hon. Melvin C., a Representative in Congress from the State of West Virginia----------------------* - - - - - - - - - - - - - - - - - - - - - - Stack, Thomas, president, National Railroad Pension Forum -------Van Zandt, Hon. James E., a Representative in Congress from the State of Pennsylvania---------------------------------------Warner, Harry H., Savannah, Ga-------------------------------Williamson, W. Rulon, actuarial consultant, Washington, D.C.-----

Statements, etc., submitted for the record by—

National Railroad Pension Forum, Inc.:
Statement by
Ross, Floyd A., regional vice-president-------------------
Sands, Walt, public relations director- - - - - - --------------
Wenig, George K., Jr., advisory member-------------------
Young, William E., regional vice president----------------
Railroad Pension Conference, statement by Clarence B. Carter------
Robbins, Rainard B., consulting actuary, communication and
statement--------------------------------------------------

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RAILROAD RETIREMENT

WEDNESDAY, JUNE 2, 1948

House of REPRESENTATIVEs, CoMMITTEE on INTERSTATE AND For EIGN CoMMERCE, Washington, D. C. The committee met at 10 a.m., Hon. Charles A. Wolverton (chairman) presiding. The CHAIRMAN. The committee will come to order. The hearing this morning relates to the several bills that have been introduced dealing with railroad retirement and unemployment insurance. There would seem to be approximately 20 to 25 bills of that kind. Notice has been given to all the sponsors of this legislation that the might have opportunity to be present to speak for their particular bill. see in the audience some Members of Congress, and I assume that they have come in response to that notice. All of you are undoubtedly aware of the fact that considerable consideration has been given to this type of legislation by members of the committee, by Members of Congress, by representatives of the railroad brotherhoods, by representatives of railroad management, and perhaps in some instances by the public in general. I wish particularly to call your attention to the fact that the railroad brotherhoods and railroad management have been working over a period of weeks, maybe months, on this subject. I was very pleased to learn yesterday that between themselves they had agreed upon a bill which it was my pleasure to introduce. (The bill referred to is as follows:)

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A BILL To amend the Railroad Retirement Act of 1937, as amended, and the Railroad Unemployment Insurance Act, as amended, and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That subsection (a) of section 3 of the Railroad Retirement Act of 1937, as amended, is amended by changing “2” to “2.40”, “1%” to “1.80”, and “1” to “1.20". Subsection (e) of section 3 of the Railroad Retirement Act of 1937, as amended, is amended by changing “$3” to “$3.60” and “$50” to “$60”.

SEc. 2. Subsection (f) of section 5 of the Railroad Retirement Act of 1937, as amended, is amended by inserting “(1)” before “Upon”, by striking out “this subsection” wherever it occurs and inserting in lieu thereof “this paragraph”, and by adding at the end thereof the following new paragraph:

“(2) Whenever it shall appear, with respect to the death of an employee on or after January 1, 1947, that no benefits, or no further benefits, other than benefits payable to a widow or parent upon attaining age sixty-five at a future date, will be payable under this section or, pursuant to subsection (k) of this section, under section 202 of the Social Security Act, as amended, there shall be paid to such person or persons as the deceased employee may have designated by a writing filed with the Board prior to his death, or if there be no designation, to the person or persons in the order provided in paragraph (1) of this subsection

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or, in the absence of such person or persons, to his estate, a lump sum in an amount equal to the sum of 4 per centum of his compensation paid after December 31, 1936, and prior to January 1, 1947, and 7 per centum of his compensation after December 31, 1946 (exclusive in both cases of compensation in excess of $300 for any month), minus the sum of all benefits paid to him, or to others by reason of his death, under this Act and, pursuant to subsection (k) of this section, under section 202 of the Social Security Act, as amended: Provided, however, That if the employee is survived by a widow or parent who may upon attaining age sixty-five be entitled to further benefits under this section, or pursuant to subsection (k) of this section, under section 202 of the Social Security Act, as amended, such lump sum shall not be paid unless such widow or parent makes and files with the Board an irrevocable election, in such form as the Board may prescribe, to have such lump sum paid in lieu of all benefits to which such widow or parent might otherwise become entitled under this section or, pursuant to subsection (k) of this section, under section 202 of the Social Security Act, as amended. Such election shall be legally effective according to its terms. Nothing in this section shall operate to deprive a widow or parent making such election of any insurance benefits under section 202 of the Social Security Act, as amended, to which such widow or parent would have been entitled had this section not been enacted. The term ‘benefits' as used in this paragraph includes all annuities payable under this Act, lump sums payable under paragraph (1) of this subsection, and insurance benefits and lump-sum payments under section 202 of the Social Security Act, as amended, pursuant to subsection (k) of this section.” SEc. 3. The provisions of section 1 hereof shall apply to all annuities under section 2 of the Railroad Retirement Act of 1937, as amended, accruing during calendar months following the month of enactment hereof other than joint and survivor annuities heretofore awarded and survivor annuities deriving from joint and survivor annuities heretofore awarded; and the provisions of section 2 hereof shall be effective as of January 1, 1947. All annuities under the Railroad Retirement Act of 1935 and all joint and survivor annuities heretofore awarded and survivor annuities deriving from joint and survivor annuities heretofore awarded, accruing during the calendar months following the month of enactment hereof, and all pensions due in months following the first calendar month after the enactment hereof, shall be increased by 20 per centum. All recertifications required by reason of the provisions of this Act shall be made by the Railroad Retirement Board without application therefor. SEc. 4. Subsection (a) of section 8 of the Railroad Unemployment Insurance Act, as amended, is amended by substituting the following for so much of said subsection as precedes the proviso: “(a) Every employer shall pay a contribution, with respect to having employees in his service, equal to the percentage determined as set forth below of so much of the compensation as is not in excess of $300 for any calendar month paid by him to any employee for services rendered to him after June 30, 1939:”. SEc. 5. (a) Subsection (a) of section 8 of the Railroad Unemployment Insurance Act, as amended, is further amended by substituting a colon for the period at the end thereof and adding the following: “1. With respect to compensation paid prior to January 1, 1948, the rate shall be 3 per centum; “2. With respect to compensation paid after December 31, 1947, the rate shall be as follows:

“If the balance to the credit of the railroad unemploy- The rate with respect to

ment insurance account as of the close of business compensation paid dur

on September 30 of any year, as determined by the ing the next succeeding

Board, is: calendar year shall be: $450,000,000 or more ----- - - - - - - - - - - - - - - - - - - - - - - - - % percent. $400,000,000 or more but less than $450,000,000 ---- 1 percent. $350,000,000 or more but less than $400,000,000----- 1% percent. $300,000,000 or more but less than $350,000,000----- 2 percent. $250,000,000 or more but less than $300,000,000----- 2% percent. Less than $250,000,000--------------------------- 3 percent.

“As soon as practicable following the enactment of this Act, the Board shall determine and proclaim the balance to the credit of the account as of the close of business on September 30, 1947, and on or before December 31 of 1948 and of each succeeding year, the Board shall determine and proclaim the balance to the credit of the account as of the close of business on September 30 of such year.” (b) Contributions paid under subsection (a) of section 8 of the Railroad Unemployment Insurance Act, as amended, prior to the enactment of the foregoing amendment thereof which are in excess of those required by said subsection as so amended shall be subject to adjustment or ji in accordance with the provisions of subsections (d) and (e) of said section 8. SEc. 6. Subsection (f) of section 8 of the Railroad Unemployment Insurance Act, as amended, is amended to read as follows: “(f) The contributions required by this Act shall be collected by the Board and shall be deposited by it with the Secretary of the Treasury of the United States, such part thereof as equals 0.2 per centum of the total compensation on which such contributions are based to be deposited to the credit of the fund and the balance to be deposited to the credit of the account.” SEc. 7. Subsection (a) of section 10 of the Railroad Unemployment Insurance Act, as amended, is amended by substituting the following for subdivision (i) of the second sentence of said subsection: “(i) such part of all contributions collected pursuant to section 8 of this Act as is in excess of 0.2 per centum of the total compensation on which such contributions are based, together with all interest collected pursuant to section 8 (g) of this Act;”. SEc. 8. Subsection (a) of section 11 of the Railroad Unemployment Insurance Act, as amended, is amended by substituting the following for subdivision (i) of the second sentence of said subsection: “(i) such part of all contributions collected pursuant to section 8 of this Act as equals 0.2 per centum of the total compensation on which such contributions are based;”.

The CHAIRMAN. Mr. Crosser introduced a companion measure similar to the bill to which I have referred. This carries me back to the day when the original bill was passed which is now the law, which was the result of a conference between workers and management. I am pleased to see that in this present instance there is a continuation of that policy of talking together in an effort to agree. I am therefore happy, and I assume that every member of the committee is happy in the thought that there has been an agreement between these parties. Naturally, in view of that fact, I would think it can be assumed that special attention will be given to that agreed-upon bill. However, that does not preclude anyone who is opposed to the bill, or who has some other measure he wishes to advance, from doing so at this time. We are hopeful, however, that the presentations will not be unduly long. It is our intention to have this hearing this morning, and if it is not concluded, to conclude it this afternoon to the end that the committee may take immediate action with reference to reporting a bill. We recognize that we are coming to the close of the session. We recognize the necessity of acting quickly. The committee is anxious to do so. I am hopeful that we can conclude these hearings today and that the committee can make its report to the Congress in the hope that whatever we report it will have an opportunity of coming before the House on a very early date, probably not later than Monday next. 1 ask that all cooperate to the end of endeavoring to present the matters relating to these retirements bills, or o bills, in a way that will conserve the time of the committee as much as possible and at the same time do justice to your particular cause. I see two Members of Congress in the audience. I assume that §§ appear with reference to their bills. H. R. 12 was introduced by Mr. Angell, of Oregon. We will be pleased to hear Mr. Angell.

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