Dennis, C. L., international president, Brotherhood of Railway and Airline Clerks, in behalf of the Congress of Railway Unions and Railway Labor Executive, Miami, Fla.; Jim Kennedy, general legislative counsel, Washington, D.C___. Page 291 Prepared statement-. 291 Hacking, James M., legislative representative of the Retired Teachers Association and the American Association of Retired Persons_. 431 Niessen, Abraham M., former chief actuary, Railroad Retirement Board___ 449 370 Prepared and supplemental statement__. 378 Speirs, Neil P., member, Railroad Retirement Board, representing railroad labor and management.. 270 Prepared statement of Mr. Speirs and Mr. Quarels--- 276 ADDITIONAL INFORMATION Chart: How Coupling of Increases in Benefit Levels for Those on the Benefit 377 August 8, 1974__ Communications to: Hathaway, William D., a U.S. Senator from the State of Maine, from: Elliott, Floyd L., grand resident, National Association of Retired and Veteran Railway Employees, Inc., Kissimmee, Fla., September 6, 1974___ Table: Jones, A. F., September 7, 1974_ 448 447 459 Summary of Costs and Savings from Proposed Railroad Retirement 387 APPENDIX Text of: House Report 93-1345 to accompany H.R. 15301. H.R. 15301, as referred to Committee on Labor and Public Welfare__ 471 686 839 1057 1211 1278 RESTRUCTURING OF THE RAILROAD RETIREMENT SYSTEM, 1974 THURSDAY, SEPTEMBER 5, 1974 U.S. SENATE, SUBCOMMITTEE ON RAILROAD RETIREMENT OF THE COMMITTEE ON LABOR AND PUBLIC WELFARE, Washington, D.C. The subcommittee met, pursuant to notice, at 9:42 a.m., in room 4232, Dirksen Senate Office Building, Hon. William D. Hathaway, subcommittee chairman, presiding. Present: Senators Hathaway, Schweiker, and Taft. Senator HATHAWAY. The Subcommittee on Railroad Retirement will come to order. Today, the subcommittee begins hearings on proposals for the restructuring of the Railroad Retirement System in such a way as to assure its long-term actuarial soundness. As I stated at the beginning of last year's hearings on this subject, there is no need to reiterate in detail the situation presently facing the Railroad Retirement System. All of us are acutely aware of the precarious financial condition of the Railroad Retirement Fund. And all of us, members of this committee, as well as those present who are directly involved, are determined to reach a resolution which is equitable to all concerned as well as being financially sound. The committee has before it several bills, including S. 2450, which involves increasing widow's benefits under the act, and which was introduced by Senator Cook; S. 3522 involving the last-employer clause which was introduced by Senator Biden, and S. 3612, which is the general restructuring bill introduced by myself. This last bill, I should point out, is the product of a lengthy set of negotiations involving representatives of railway labor and management over the course of the last 18 months. These negotiations took place pursuant to the mandate of last year's legislation on this subject, Public Law 93-69. Not yet before the committee, but of concern to us, is H.R. 15301, the companion restructuring bill to S. 3612, which has been reported by the House Committee on Interstate and Foreign Commerce and which will, I understand, be on the calendar in the House after the House Members return on September 11. At this point we will receive for the record the text of the bills, Public Law 93-69 and departmental reports. [The text of the bills referred to along with Public Law 93-69 and departmental reports follows:] (1) 93D CONGRESS 2D SESSION S. 3612 IN THE SENATE OF THE UNITED STATES JUNE 10, 1974 Mr. HATHAWAY (by request) introduced the following bill; which was read twice and referred, by unanimous consent, to the Committees on Labor and Public Welfare and Finance, jointly A BILL To amend the Railroad Retirement Act of 1937 to revise the retirement system for employees of employers covered thereunder, 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, 3 TITLE I-THE RAILROAD RETIREMENT ACT OF 22 * 23 2 "(i) any express company, sleeping-car company, and carrier by railroad, subject to part I of the Interstate Commerce Act; "(ii) any company which is directly or indirectly owned or controlled by, or under common control with, one or more employers as defined in paragraph (i) of this subdivision, and which operates any equipment or facility or performs any service (except trucking service, casual service, and the casual operation of equipment or facilities) in connection with the transportation of pas sengers or property by railroad, or the receipt, delivery, elevation, transfer in transit, refrigeration or icing, stor age, or handling of property transported by railroad; "(iii) any receiver, trustee, or other individual or body, judicial or otherwise, when in the possession of the property or operating all or any part of the business of any employer as defined in paragraph (i) or (ii) of this subdivision; "(iv) any railroad association, traffic association, tariff bureau, demurrage bureau, weighing and inspection bureau, collection agency, and any other association, bu reau, agency, or organization which is controlled and maintained wholly or principally by two or more em 24 ployers as defined in paragraph (i), (ii), or (iii) of 25 this subdivision and which is engaged in the performance 3 4 5 6. བ 7 8 9 10 3 of services in connection with or incidental to railroad transportation; and "(v) any railway labor organization, national in scope, which has been or may be organized in accordance with the provisions of the Railway Labor Act, as amended, and its State and National legislative committees, general committees, insurance departments, and local lodges and divisions, established pursuant to the constitution or bylaws of such organization. "(2) Notwithstanding the provisions of subdivision (1) 11 of this subsection, the term 'employer' shall not include"(i) any company by reason of its being engaged 12 in the mining of coal, the supplying of coal to an employer where delivery is not beyond the mine tipple, and the operation of equipment or facilities therefor, or in any of such activities; and "(ii) any street, interurban, or suburban electric railway, unless such railway is operating as a part of a general diesel-railroad system of transportation, but shall not exclude any part of the general diesel-railroad system of transportation now or hereafter operated by any other motive power. The Interstate Commerce Commission is hereby authorized and directed upon request of the Board, or upon complaint of any party interested, to determine after hearing whether any line |