uled to increase again after 1964 by a number of percentage points equal at any given time to the number of percentage points by which the rate of tax under the Federal Insurance Contributions Act (for social security purposes) at that time exceeds the rate provided by paragraph (2) of section 3101 of the Federal Insurance Contributions Act as amended by the Social Security Amendments of 1956 (such rate being 234 percent).

The increase in the tax base and contribution rates proposed by the amendments to the Railroad Retirement Tax Act, I am happy to state, will produce sufficient revenue for the retirement system to pay for the 10-percent increase in benefits proposed by this bill, and to virtually remove the actuarial deficiency which now exists, thereby placing the railroad retirement system in a sound financial condition.

III. AMENDMENTS TO RAILROAD UNEMPLOYMENT INSURANCE ACT

1. Unemployment insurance benefits would be paid for days of unemployment in excess of 4 days during any registration period. Under present law, benefits are not payable during the first registration period within a benefit year except for days of unemployment in excess of 7 days.

2. A new schedule of increased daily benefit rates would apply, ranging from a minimum daily benefit rate of $4.50 for annual compensation of $500 to $699.99 to a maximum daily benefit rate of $10.20 for annual compensation of $4,000 or more, effective in the general benefit year beginning July 1, 1958. The minimum daily rate payable would be not less than 60 percent of the daily rate of compensation (with a maximum of $10.20 per day) for the employee's last employment in which he was engaged for an employer during the base (calendar) year.

3. Extended unemployment benefit periods beyond the 130 days allowed by present law would be provided as follows:

(a) An employee with less than 10 years of service who has after June 30, 1957, exhausted his rights to unemployment benefits under present law would receive additional unemployment benefits for days of unemployment not exceeding 65 days which occur in registration. periods beginning on or after June 19, 1958, and before April 1,

1959.

(b) An employee with 10 but less than 15 years of service, upon exhaustion of his rights to unemployment benefits under present law in a given benefit year, would be entitled to an additional 65 days of unemployment benefits in such benefit year.

(c) An employee with 15 or more years of service, upon exhaustion of his rights to unemployment benefits under present law in a given benefit year, would be entitled to an additional 130 days of unemployment benefits in such benefit year.

4. Sundays and holidays could be compensable days of unemployment, just as any other day, whether or not such Sundays and holidays are preceded and succeeded by a day of unemployment.

5. The maximum taxable base would be increased from $350 to $400 a month per employee effective January 1, 1959, and the tax rate would be changed from a minimum of 111⁄2 percent to a maximum of 312 percent depending upon the balance in the railroad unemployment insurance account.

I think the record shows, and these hearings will develop, that this account is in a pretty sad state at the moment.

Other bills pending before the committee provide for (1) liberalization of the retirement age so as to permit retirement after 30 years of service at age 60 or after 35 years of service regardless of age; (2) repeal the dual benefit restriction on the payment of annuities to spouses; (3) repeal the restriction on the payment of a widow's benefit under both the Railroad Retirement Act and Social Security Act; (4) repeal the "last person employer" clause; and so forth. The chairman of the Railroad Retirement Board has prepared a tabulation giving the principal provisions of all of these bills including the costs involved in the legislation, and I understand he will present this tabulation in the course of his testimony before the committee. I shall, therefore, not go into detail on these bills.

These hearings will continue through the remainder of this week and will be resumed on February 16. During this week we shall hear first from Members of Congress who are sponsoring bills on this subject. Then we shall hear the Railroad Retirement Board, the Railway Labor Executives' Association, and other witnesses who desire to testify. On February 16 we shall hear from the Association of American Railroads and other industry witnesses; that is, those who desire to be heard.

A copy of each bill, excluding, of course, duplications, pending before the committee, and the agency reports which I have here before me will be inserted in the record at this point.

(The bills referred to follow :)

[H.R. 217, 86th Cong., 1st sess.]

A BILL To reduce the spouse benefit age under the Railroad Retirement Act to 62

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, as amended, is amended by adding at the end thereof the following new subsection:

"A spouse who would be entitled to an annuity under subsection (e) if she or he had attained the age of sixty-five may elect upon or after attaining the age of sixty-two to receive such annuity, but the annuity in any such case shall be reduced by one one-hundred-and-eightieth for each calendar month that the spouse is under age sixty-five when the annuity begins to accrue.”

[H.R. 218, 86th Cong., 1st sess.]

A BILL To amend the Railroad Retirement Act of 1937, as amended

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".

SEC. 2. Paragraphs numbered 2 and 3 of section 2(a) of the Railroad Retirement Act of 1937, as amended, 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".

SEC. 3. Section 3 (c) of such Act is amended to read as follows:

"(c) The 'monthly compensation' shall be the average compensation paid to an employee with respect to calendar months included in his 'years of service', except that with respect to service prior to January 1, 1937, he shall be credited with monthly compensation in an amount equal to the average compensation paid to him monthly for the five calendar years (consecutive or nonconsecutive) included in his 'years of service' for each of which he received aggregate

compensation exceeding that received by him for any other such calendar year, provided that in computing monthly compensation', no part of any months' compensation in excess of $350 shall be recognized."

SEC. 4. All recertifications required by reason of any amendment made by this Act shall be made by the Railroad Retirement Board without application therefor.

[H.R. 219, 86th Cong., 1st sess.]

A BILL To amend the Railroad Retirement Act of 1937 to permit an annuitant to receive his annuity even though he renders compensated service for the outside employer by whom he was last employed before his annuity began to accrue

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That (a) the first paragraph of section 2(a) of the Railroad Retirement Act of 1937, as amended, is amended to read as follows:

"SEC. 2. (a) The following-described individuals, if they shall have been employees on or after the enactment date, and shall have completed ten years of service, shall, subject to the conditions set forth in subsections (b), (c), and (d), be eligible for annuities after they shall have ceased to render compensated service to an employer as defined in section 1(a) :".

(b) Section 2(b) of such Act, as amended, is amended by striking out “and of the person by whom he was last employed".

(c) Section 2(d) of such Act, as amended, is amended by striking out "or to the last person by whom he was employed prior to the date on which the annuity began to accrue".

SEC. 2. The amendments made by this Act shall be effective with respect to annuities accruing during calendar months after the month in which this Act is enacted.

(NOTE.-H.R. 971, by Mr. Van Zandt, is identical with H.R. 219.)

[H.R. 220, 86th Cong., 1st sess.]

A BILL To repeal the provisions of the Railroad Retirement Act which reduce the annuities of the spouses of retired employees, and the survivors of deceased employees, by the amount of certain monthly benefits payable under the Social Security Act

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the third proviso in section 2(e) of the Railroad Retirement Act of 1937, as amended (which proviso relates, in part, to the reduction of the spouse's annuity by the amount of certain insurance benefits under the Social Security Act), 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". SEC. 2. The second sentence of section 5(g) (2) of such Act (which relates to the correlation of payments to survivors) is repealed.

SEC. 3. This Act shall take effect with respect to benefits accruing under the Railroad Retirement Acts after October 30, 1951.

SEC. 4. In the case of any deceased individual whose death occurred before the first day of the first month following the month in which this Act is enacted, so much of any annuity payment as is due such individual by reason of the enactment of this Act shall be paid only

(1) to the widow or widower of the deceased, if such widow or widower is living on such first day; or

(2) if there is no such widow or widower, to the child or children of the deceased if such child or children are living on such first day.

For the purposes of this section, the terms "widow", "widower”, and “child” have the same meanings as those assigned to such terms by section 5(1)(1) of the Railroad Retirement Act of 1937, as amended.

(NOTE.-H.R. 977, by Mr. Williams, and H.R. 1385, by Mr. Winstead, are identical with H.R. 220.)

[H.R. 223, 86th Cong., 1st sess.]

A BILL To amend the Railroad Retirement Act of 1937 to provide full annuities for individuals who have completed thirty years of service; to provide annuities thereunder to equal 50 per centum of taxable wages of the five years of highest earnings

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2(a) of the Railroad Retirement Act of 1937 is amended by striking out numbered paragraphs 1, 2, and 3 and inserting in lieu thereof the following:

"1. Individuals who will have completed thirty years of service."

SEC. 2. That section 3 (a) of such Act is amended to read as follows:

"(a) An individual who completes thirty years of service shall receive 50 per centum of his taxable wages of his five years of highest earnings."

SEC. 3. Section 1500 of the Railroad Retirement Tax Act is amended to read as follows:

"In addition to other taxes, there shall be levied, collected, and paid upon the income of every employee a tax equal to the following percentage of so much of the compensation not in excess of $400 for any calendar month:

"1. With respect to compensation paid, the rate shall be 64 per centum."

SEC. 4. Section 1520 of such Act is amended by substituting wherever there appears the amounts $350 to read $400, and numbered paragraph 1, 2, and 3 is struck out, and the following to be inserted in lieu thereof:

"1. With respect to compensation paid the rate shall be 64 per centum."

SEC. 5. (a) The amendments made by this Act shall be effective with respect to all annuities heretofore or hereafter awarded and payable for the months be ginning on or after the first day of the first calendar month beginning after the date of the enactment of this Act.

(b) Nothing contained in this Act shall reduce any annuity now paid or provided for.

[H.R. 225, 86th Cong., 1st sess.]

A BILL To provide that railroad employees may retire on a full annuity at age sixty or after serving thirty years; to provide that such annuity for any month shall be not less than one-half of the individual's average monthly compensation for the five years of highest earnings; and for other purposes

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2(a) of the Railroad Retirement Act of 1937, as amended, is amended by adding at the end thereof the following:

"6. Individuals who will have attained age sixty or will have completed thirty years of service. The annuity under this paragraph shall be computed under section 3 of this Act; except that in no case shall the annuity under this paragraph be less than one-half of the monthly compensation (as used in section 3(c) of this Act) for the five consecutive years of service during which his aggregate compensation was highest. In the application of the preceding sentence, proper adjustment shall be made in the monthly compensation in order that the individual will not be penalized for absence from service by permission, sickness, or injury.

"In the case of any individual awarded an annuity under paragraph 6, the eligibility of his spouse and survivors for benefits under this Act, and the amount of any such benefit, shall be determined as if paragraph 6 had not been enacted."

SEC. 2. The amendment made by the first section of this Act shall apply only with respect to annuities accruing for calendar months beginning more than ninety days after the day on which this Act is enacted.

(NOTE.-H.R. 941, by Mrs. St. George; H.R. 970, by Mr. Van Zandt; and H.R. 2223, by Mr. Siler, are identical with H.R. 225.)

[H.R. 735, 86th Cong., 1st sess.]

A BILL To amend the Railroad Retirement Act of 1937 to eliminate the requirement that a husband or widower have been dependent upon his wife in order to qualify for a spouse's or widower's annuity on the basis of her wage record

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2(f) of the Railroad Retirement Act of 1937 is amended by striking out “(i)", and by striking out “; and (ii)” and all that follows and inserting in lieu thereof a period.

SEC. 2. Section 5(1) (1) (i) of the Railroad Retirement Act of 1937 is amended by striking out "a widower shall" and all that follows.

SEC. 3. (a) The amendments made by this Act shall apply only with respect to annuities accruing under the Railroad Retirement Act of 1937 for months after the month in which this Act is enacted.

(b) The amendments made by this Act shall not affect the entitlement of any individual to a parent's insurance annuity under section 5(d) of the Railroad Retirement Act of 1937 if such individual is entitled to such annuity on the date of the enactment of this Act.

[H.R. 765, 86th Cong., 1st sess.]

A BILL To amend the Railroad Retirement Act of 1937 to increase the amount of outside income which a survivor annuitant may earn without deduction from his or her annuity thereunder

Bt it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 5(1) (ii) of the Railroad Retirement Act of 1937 is amended by inserting after "section 203 (e) of the Social Security Act" the following: "(except that for purposes of this subdivision such individual shall be charged under such section only with earnings in excess of $1,800 for a taxable year of twelve months, or with earnings in excess of the product of $150 times the number of months in the taxable year in the case of a taxable year of less than twelve months)".

SEC. 2. The amendment made by the first section of this Act shall apply only with respect to annuities accruing for months in taxable years ending after the date of the enactment of this Act.

[H.R. 972, 86th Cong., 1st sess.]

A BILL To amend the Railroad Retirement Act of 1937, as amended, so as to eliminate certain deductions from a spouse's annuity

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That section 2(e) of the Railroad Retirement Act of 1937, as amended, is amended by inserting the word "And" before the words "Provided further" in the second proviso thereof, by changing the colon at the end of the second proviso to a period and by striking therefrom all after such period.

[H.R. 1012, 86th Cong., 1st sess.]

A BILL To amend the Railroad Retirement Act of 1937, the Railroad Retirement Tax Act, and the Railroad Unemployment Insurance Act, so as to provide increases in benefits, and for other purposes

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 OF 1937 SECTION 1. (a) Section 2(a)3 of the Railroad Retirement Act of 1937 is amended to read as follows:

"3. Individuals who will have attained the age of sixty and will have completed thirty years of service or, in the case of women, who will have attained the age of sixty-two and will have completed less than thirty years of service, but the annuity of such individual shall be reduced by one one-hundred-and-eightieth for each calendar month that he or she is under age sixty-five when the annuity begins to accrue."