remuneration for service to the employer was, in whole or in substantial part, in the form of tips, shall be the monthly average of the compensation paid to him as a station employee in his months of service in the period September 1940-August 1941: Provided, That where service in the period September 1940-August 1941 is, in the judgment of the Board, insufficient to constitute a fair and equitable basis for determining the amount of compensation paid or attributable as paid to him in each month of service before September 1941, the Board shall determine the amount of such compensation for each such month in such manner as in its judgment shall be fair and equitable. In computing the monthly compensation, no part of any month's compensation in excess of $400 shall be recognized. If the employee earned compensation in service after June 30, 1937, and after the last day of the calendar year in which he attained 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. 4. 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". SEC. 5. All recertifications required by reason of any amendments made by this Act shall be made by the Railroad Retirement Board without application therefor. [H.R. 3478, 86th Cong., 1st sess.] A BILL To amend the Railroad Retirement Act of 1937 to provide that employees who terminate their railroad employment may apply for and receive a refund of the railroad retirement taxes which they have paid Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2 of the Railroad Retirement Act of 1937 is amended by adding at the end thereof the following new subsection: "(h) RIGHT OF EMPLOYEES TO REFUND OF TAXES UPON TERMINATION OF RAILROAD EMPLOYMENT.—(1) Any employee who has terminated his railroad employment and is not entitled to an annuity under subsection (a) of this section shall upon application be paid in a lump sum an amount equal to the total amount of the taxes paid by him under section 1500 of the Internal Revenue Code of 1939 and section 3201 of the Internal Revenue Code of 1954 with respect to his railroad employment, plus interest on such amount from the respective times of the payment of such taxes at the rate of 6 per centum per annum. For purposes of this subsection, an employee shall be deemed to have terminated his railroad employment (whether before or after the date of the enactment of this Act) if he voluntarily submits to his last employer a formal resignation from railroad employment and files with the Board a copy of such resignation and an affidavit declaring that he has severed all connections with the railroad industry and does not intend to return to railroad employment at any time. In the case of an individual who is not performing railroad employment on the date of the enactment of this subsection, and who does not intend to return to railroad employment after such date, such individual shall be deemed to have terminated his railroad employment only if such resignation and affidavit are submitted and filed within one year after such date. "(2) No individual who applies for and receives a lump-sum payment under this subsection (and no dependent or survivor of any such individual) shall thereafter be entitled under this Act to any benefit based upon the service with respect to which such payment was made. "(3) Application for a lump-sum payment under this subsection may be made at any time, except as otherwise provided in paragraph (1).” SEC. 2. Section 5(f) of the Railroad Retirement Act of 1937 is amended by adding at the end thereof the following new paragraph: "(3) No payment under this subsection shall be made with respect to the death of any employee if such employee shall have received a lump-sum payment under section 2 (h) (1).” SEC. 3. Section 5(k) (1) of the Railroad Retirement Act of 1937 is amended by adding at the end thereof the following new sentence: "Title II of the Social Security Act shall not apply pursuant to this paragraph to any service with respect to which a lump-sum payment shall have been made under section 2(h) (1)." [H.R. 3705, 86th Cong., 1st sess.] A BILL To amend the Railroad Retirement Act of 1937 to increase the annuities payable thereunder, to reduce the age at which such annuities become payable in certain cases, to remove certain restrictions on an individual's right to such annuities, to increase the yield on investments made from the Railroad Retirement Account, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Railroad Retirement Act Amendments of 1959". ELIGIBILITY FOR RETIREMENT SEC. 2. Paragraphs numbered 2 and 3 of section 2(a) of the Railroad Retirement Act of 1937 are amended to read as follows: "2. Individuals who will have attained the age of sixty and will have completed thirty years of service. "3. Individuals who will have completed thirty-five years of service, without regard to age." ELIGIBILITY OF WIVES FOR SPOUSES' ANNUITIES SEC. 3. (a) Section 2(e)(ii) of the Railroad Retirement Act of 1937 is amended by striking out "the age of 65 or" and inserting in lieu thereof "the age of 65 in the case of a husband or 60 in the case of a wife, or,". (b) Section 2(g) of such Act is amended by striking out "age 65" and inserting in lieu thereof “age 60”. DETERMINATION OF "MONTHLY COMPENSATION" SEC. 4. The first sentence of section 3(c) of the Railroad Retirement Act of 1937 is amended to read as follows: "The 'monthly compensation' of an employee shall be the average compensation paid to him monthly for the five calendar years after 1923 (whether consecutive or nonconsecutive) included in his 'years of service' for each of which he received aggregate compensation exceeding that received by him for any calendar year after 1923 other than such five calendar years; except that the amount of compensation paid or attributable as paid to him with respect to each month of service before 1941 as a station employee whose duties consisted of or included the carrying of passengers' hand baggage and otherwise assisting passengers at passenger stations and whose remuneration for service to the employer was, in whole or in substantial part, in the form of tips, shall be the monthly average of the compensation paid to him as a station employee in his months of service in the period September 1940-August 1941, except that where service in the period September 1940-August 1941 is insufficient, in the judgment of the Board, to constitute a fair and equitable basis for determining the amount of compensation paid or attributable as paid to him in each month of service before September 1941, the Board shall determine the amount of such compensation for each such month in such manner as in its judgment shall be fair and equitable." INCREASE IN ANNUITIES AND PENSIONS SEC. 5. (a) Section 3(a) of the Railroad Retirement Act of 1937 is amended to read as follows: "(a) The annuity of an individual shall be a sum equal to 110 percent of the total amount obtained by multiplying such individual's 'years of service' by the following percentages of his 'monthly compensation': 3.04 percent of the first $50; 2.28 percent of the next $100; and 1.52 percent of the next $200." (b) 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". (c) Section 3 (e) of such Act is amended by striking out "$4.55" and "$75.90" and inserting in lieu thereof "$5" and "$84", respectively. (d) The proviso in section 3(e) of such Act is amended (1) 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"; and (2) 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". (e) 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 "$17", respectively. (f) Section 5(1)(10) of such Act is amended by striking out "44", "11", "$15.40", "$36.66", "$27.50", and "14.66" wherever they appear and inserting in lieu thereof "482", "12", "$17", "$40.33", "$30.25", and "$16.13", respectively. (g) All pensions under section 6 of the Railroad Retirement Act of 1937, all joint and survivor annuities and survivor annuities deriving from joint and survivor annuities under that Act awarded before the date of the enactment of this Act, and all annuities under the Railroad Retirement Act of 1935 are increased by 10 per centum. ADDITIONAL INCREASE AT AGE SEVENTY SEC. 6. (a) Section 3 of the Railroad Retirement Act of 1937 is amended by adding at the end thereof the following new subsection: "(j) The amount of any annuity payable to an individual under subsection (a) or (e) of section 2, as determined under the preceding provisions of this section, shall be increased by 10 per centum beginning with the month in which such individual attains the age of seventy." (b) Section 5 of such Act is amended by adding at the end thereof the following new subsection: "(m) The amount of any annuity payable to an individual under this section, as determined under the preceding provisions of this section, shall be increased by 10 per centum beginning with the month in which such individual attains the age of seventy." (c) The amount of any pension otherwise due an individual under section 6 of the Railroad Retirement Act of 1937, the amount of any joint and survivor annuity or any survivor annuity deriving from a joint and survivor annuity otherwise payable to an individual under that Act, and the amount of any annuity otherwise payable to an individual under the Railroad Retirement Act of 1935, shall be increased by 10 per centum beginning with the month in which such individual attains the age of seventy. INTEREST RATE ON INVESTMENTS FROM RAILROAD RETIREMENT ACCOUNT SEC. 7. Section 15(b) of the Railroad Retirement Act of 1937 is amended by striking out "3 per centum" each place it appears and inserting in lieu thereof "4 per centum". OUTSIDE EARNINGS BY DISABLED ANNUITANT SEC. 8. The second sentence of section 2(d) of the Railroad Retirement Act of 1937 is amended by striking out "$100" and inserting in lieu thereof "$200". ELIMINATION OF RESTRICTION ON SIMULTANEOUS RECEIPT OF BENEFITS UNDER RAILROAD RETIREMENT ACT AND SOCIAL SECURITY ACT SEC. 9. (a) The third proviso in section 2(e) of the Railroad Retirement Act of 1937 is amended to read as follows: "And provided further, That any spouse's annuity shall be reduced by the amount of any annuity to which such spouse is entitled, or on proper application would be entitled, under subsection (a) of this section or subsection (d) of section 5 of this Act". (b) Section 5 (g) of such Act is amended to read as follows: "(g) CORRELATION OF PAYMENTS.-If an individual is entitled to more than one annuity for a month under this section, such individual shall be entitled only to that one of such annuities for the month which is equal to or exceeds any other such annuity." (c) Section 202 (1) of the Social Security Act is repealed. PRORATION OF ANNUITY FOR MONTH OF DEATH OR DISENTITLEMENT SEC. 10. (a) The last sentence of section 2(g) of the Railroad Retirement Act of 1937 is amended by striking out "shall cease at the end of the month preceding the month in which" and inserting in lieu thereof the following: "shall cease at the close of the first day on which any of the following occurs (and shall be paid, on a prorated basis, for the portion of the month involved which ends at the close of such day) :”. (b) Section 3(g) of such Act is amended to read as follows: "(g) The annuity with respect to the calendar month in which an annuitant dies shall accrue and be paid, on a prorated basis, for the portion of such month up to and including the date of such death." (c) (1) Section 5(a) of such Act is amended by inserting "or the month in which such death occurs" after "the employee's death". (2) Section 5(b) of such Act is amended by inserting "or the month in which such death occurs" after "the employee's death". (d) Section 5 (j) of such Act is amended- (1) by inserting "(or, if the individual acquired such eligibility immediately upon the employee's death, with the day following the day upon which such death occurs)" after "otherwise acquired"; and (2) by striking out the last sentence and inserting in lieu thereof the following: "The annuity for the month in which the recipient thereof ceases to be qualified therefor shall be payable, on a prorated basis, for the portion of such month up to and including the day on which such recipient ceases to be so qualified." (e) Any pension due an individual under section 6 of the Railroad Retirement Act of 1937, any joint and survivor annuity or survivor annuity deriving from a joint and survivor annuity payable to an individual under that Act, and any annuity payable to an individual under the Railroad Retirement Act of 1935 shall be due or payable to such individual with respect to the month in which he dies, on a prorated basis, for the portion of such month up to and including the date of his death. ELIMINATION OF REQUIREMENT THAT ANNUITANTS CEASE CERTAIN NONRAILROAD EMPLOYMENT SEC. 11. (a) So much of section 2(a) of the Railroad Retirement Act of 1937 as precedes paragraph 1 is amended by striking out "any person, whether or not an employer as defined in section 1(a)” and inserting in lieu thereof “an employer as defined in section 1(a)". (b) Section 2(b) of such Act is amended by striking out "and of the person by whom he was last employed". (c) Section 2(c)(1) of such Act is amended by inserting "to an employer" after "applicant". (d) The first sentence of section 2(d) of such Act is amended by striking out "or to the last person by whom he was employed prior to the date of which the annuity began to accrue". EFFECTIVE DATES SEC. 12. (a) The amendments made by sections 2, 3, 4, 5, 6, 8, 10, and 11 shall apply only with respect to annuities accruing for, and pensions due in, months after the month in which this Act is enacted. The amendments made by section 7 shall apply only with respect to periods after the date of the enactment of this Act. The amendments made by section 9 shall apply only with respect to (1) annuities accruing for months after the month in which this Act is enacted, (2) monthly benefits under title II of the Social Security Act for months after the month in which this Act is enacted, and (3) lump-sum death payments under such title II in the case of deaths occurring after the month in which this Act is enacted. (b) All recertifications required by reason of this Act shall be made by the Railroad Retirement Board without application therefor. [H.R. 3761, 86th Cong., 1st sess.] A BILL To amend the Railroad Retirement Act of 1937 to provide that an individual's annuity based in part on military service shall not be reduced by reason of the payment to such individual of veterans' benefits based on the same service Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 4 (i) of the Railroad Retirement Act of 1937 is amended by inserting "(other than an Act administered by the Veterans' Administration)" after "Act of Congress". SEC. 2. The amendment made by the first section of this Act shall be effective only with respect to annuities accruing for months after the month in which this Act is enacted. 37110-59-3 UNITED STATES OF AMERICA, Hon. OREN HARRIS, Chairman, Committee on Interstate and Foreign Commerce, House Office Building, Washington, D.C. DEAR MR. HARRIS: This is a report on the bill H.R. 217 which was introduced in the House of Representatives by Mr. Poff on January 7, 1959. The bill would amend the Railroad Retirement Act of 1937, as amended, by extending to spouses of annuitants the privilege of electing to receive a reduced annuity to begin after age 62 and before age 65. The reduction would be by one one-hundred-and-eightieth for each calendar month the spouse is under age 65. The only similar privilege now available under the act is that by which an employee with 30 years of service may elect to receive a reduced annuity to begin after age 60 and before age 65. Since the annuities would be actuarially reduced to almost compensate for the earlier beginning date this amendment would not appreciably increase the costs of the railroad retirement system. A majority of the Board has no objection to the amendment except that it is believed that if this privilege is granted to spouses of annuitants, it would be desirable to extend the privilege also to women employees who do not have 30 years' service and therefore are not now eligible for retirement annuities before age 65. Board Member Healy opposes the bill, since it is similar to a provision in the bill H.R. 1012 which he opposes and on which he has filed with the committee a separate statement. Inasmuch as hearings on bills to amend the Railroad Retirement Act have been set for February 3, 1959, this report is submitted without prior clearance with the Bureau of the Budget. A copy of the report is being forwarded to the Bureau of the Budget today and you will be informed of the views of that Bureau as soon as they are received. Sincerely yours, HOWARD W. HABERMEYER, Chairman. UNITED STATES OF AMERICA, Hon. OREN HARRIS, Chairman, Committee on Interstate and Foreign Commerce, House Office Building, Washington, D.C. DEAR MR. HARRIS: This is a report on the bill H.R. 218 which was introduced in the House of Representatives on January 7, 1959, by Mr. Poff. The bill would amend the Railroad Retirement Act of 1937, as amended, in the following manner: 1. Full annuities would be payable after 35 years of service regardless of age or at age 60 after the completion of 30 years of service. 2. In determining the average monthly compensation for service before 1937, the present computation based on the 1924-31 period would be replaced by a computation based on 5 calendar years (consecutive or otherwise) of highest earnings before 1937. We assume that this is the change intended by section 3 of the bill, the wording of which is not clear. 3. The limit on creditable monthly compensation would be raised retroactively to $350. Under present law, the limit is $300 a month per employee on all service before July 1954 with a limit of $350 a month thereafter. 4. The provision in the present law that service after age 65 shall not be used in the computation of the monthly average compensation if it results in a lower annuity, would be eliminated. The Board would be required to rectify all annuities and pensions which could be affected by any of the changes specified in the bill. The effective dates of the changes proposed are not expressly stated. Aside from any other considerations the amendments proposed in the bill would create administrative difficulties which would be almost insurmountable. First, it would be necessary to secure detailed earnings records for service before 1937, in order to find the 5 years of highest earnings as adjusted for the increased monthly limit on creditable compensation. Second, new compensation reports would be required for the period January 1937 to June 1954 in order to |