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RAILROAD RETIREMENT AND RAILROAD UNEMPLOY

MENT INSURANCE LEGISLATION

MONDAY, MARCH 11, 1957

ROUSE OF REPRESENTATIVES,

SUBCOMMITTEE ON COMMERCE AND FINANCE
OF THE COMMITTEE ON INTERSTATE AND FOREIGN COMMERCE,

Washington, D. C.
The subcommittee met at 10 a, m., pursuant to call, in room 1334,
New House Office Building, Hon. Peter F. Mack, Jr. (chairman of
the subcommittee), presiding.
Mr. Mack. The committee will be in order.

Pursuant to the direction of the distinguished chairman of the Committee on Interstate and Foreign Commerce, the Honorable Oren Harris, of Arkansas, the Subcommittee on Commerce and Finance is meeting this morning to hear from the Members of Congress who have introduced legislation pending before this committee to amend the Railroad Retirement Act and the Railroad Unemployment Insurance Act.

There are 44 such bills pending before the committee, and they were introduced by 30 Members of Congress. The list of bills and the authors of such bills are as follows:

H. R. 583, by Mr. Celler, of New York.
H. R. 850, by Mr. O'Brien, of New York.
H. R. 880, by Mr. Poff, of Virginia.
H. R. 900, by Mr. Rabaut, of Michigan.

H. R. 1008, by our colleague on this committee, Mr. Williams, of Mississippi.

H. R. 2033, by Mrs. St. George, of New York.

H. R. 2164, H. R. 2165, and H. R. 2166, by Mr. Powell, of New York.

H. R. 2233, by Mr. O'Konski, of Wisconsin.

H. R. 3115, H. R. 3116, H. R. 3420, H. R. 3421, and H. R. 3422, by Mr. Van Zandt, of Pennsylvania.

H. R. 3545, by Mr. Zelenko, of New York.
H. R. 3755 and H. R. 3756, by Mr. Cunningham, of Iowa.
H. R. 3855, by Mr. O’Konski, of Wisconsin.
H. R. 3974, by Mr. Dorn, of South Carolina.
H. R. 4187, by Mr. Burdick, of North Dakota.
H. R. 4194 and H. R. 4195, by Mr. Davis, of Georgia.
H. R. 4312, by Mr. Vursell, of Illinois.

H, R. 4353, by our distinguished chairman of this committee, Mr. Harris, of Arkansas.

H. R. 4354, by our distinguished ranking minority member of this committee, Mr. Wolverton, of New Jersey.

H. R. 4523, by Mr. Poff, of Virginia.
H. R. 4530, by Mr. Van Zandt, of Pennsylvania.
H. R. 4620, by Mr. Tollefson, of Washington.
H. R. 4676 and H. R. 4677, by Mr. Byrd, of West Virginia.
H. R. 4760, by Mr. Cole, of New York.
H. R. 4817, by Mr. Perkins, of Kentucky.
H. R. 4914, by Mr. George, of Kansas.

H. R. 4926, by our colleague on this committee, Mr. Loser, of Tennessee.

H. R. 5022, by Mr. Hyde, of Maryland.

H. R. 5057, by our colleague on this committee, Mr. Rhodes, of Pennsylvania.

H. R. 5255, by Mr. Withrow, of Wisconsin.
H. R. 5338, by Mr. Teller, of New York.
H.R. 5456, by Mr. Blatnik, of Minnesota.

H. R. 5672, by our colleague of this committee, Mr. Macdonald, of Massachusetts.

H. R. 5681, by Mr. Moore, of West Virginia.
H. R. 5731, by Mr. Celler, of New York.

And H. R. 5772, by our colleague on this committee, Mr. Staggers, of West Virginia. · Four bills were superseded by later bills and are, therefore, not counted in the above list. These bills are H. R. 3117 and H. R. 3118, which were superseded by H. R. 3420 and H. R. 3421, respectively, and H. R. 4101 and H. R. 4102, which were superseded by H. R. 4353 and 4354, respectively. (The bills referred to are as follows :)

[H. R. 583, 85th Cong., 1st sess.) A BILL To amend the Railroad Retirement Act of 1937 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, That (a) section 3 (a) of the Railroad Rebirement Act of 1937, as amended, is amended by striking out “2.76", "2.07”, and "1.38" and inserting in lieu thereof "3.18”, “2.38", and "1.59”, respectively.

(b) So much of section 3 (e) of such Act as precedes "Provided, howeveres is amended to read as follows: “(e) In the case of an individual having a current connection with the railroad industry, the minimum annuity payable shall, before any reduction pursuant to section 2 (a) 3, be whichever of the following is the least : (1) $4.76 multiplied by the number of his years of service; pr (2) $79.35; or (3) his monthly compensation :"..

SEC. 2. (a) The first sentence of section 5 (f) (2) of the Railroad Retirement Act of 1937, as amended, is amended by striking out "and 7 per centum of his or her compensation after December 31, 1946 (exclusive in both cases of compensation in excess of $300 for any month before July 1, 1954, and in the latter case in excess of $350 for any month after June 30, 1954)", and inserting in lieu thereof “7 per centum of his or her compensation paid after December 31, 1946, and prior to July 1, 1957, and 8 per centum of his or her compensation paid after June 30, 1957 (exclusive of compensation in excess of $300 for any month before July 1, 1954, and in excess of $350 for any month after June 30, 1954)".

(b) Section 5 (h) of such Act is amended by striking out “$30", "$160", and "$14” wherever they appear and inserting in lieu thereof “$34.50”, “$184", and $16.10”, respectively.

(c) Section 5 (1) (10) of such Act is amended by striking out "40", "10", "$14", “$33.33”, “$25”, and “$13.33" wherever they appear and inserting in lieu thereof “46", "112", "$16.10”, “$38.33”, “$28.75”, and “$15.33”, respectively.

SEC. 3. All pensions under section 6 of the Railroad Retirement Act, all joint and survivor annuities and survivor annuities deriving from joint and survivor annuities under that Act awarded before July 1, 1957, and all annuities under the Railroad Retirement Act of 1935 are increased by 15 per centum.

Sec. 4. (a) Sections 3201, 3202 (a), 3211, and 3221 of the Railroad Retirement Tax Act are each amended by striking out “after December 31, 1954, wherever it appears and inserting in lieu thereof “after June 30, 1957”, and by striking out “after 1954” and inserting in lieu thereof “after June 1957”.

(b) (1) Sections 3201 and 3221 of such Act are each amended by striking out "674 percent” and inserting in lieu thereof “744 percent”.

(2) Section 3211 of such Act is amended by striking out “1242 percent" and inserting in lieu thereof "1442 percent".

SEC. 5. Sections 3201 and 3211 of the Railroad Retirement Tax Act are each further amended by adding at the end thereof the following new sentence: "Notwithstanding any other provision of law, the amount of the tax imposed on the income of any individual by this section shall be excluded from such individual's gross income for purposes of chapter 1 and from such individual's ‘wages' for purposes of chapter 24."

SEC. 6. (a) The amendments made by the first section of this Act and by subsection (b) of section 2 shall be effective only with respect to annuities (not including annuities to which section 3 applies) accruing for months after June 1957. The amendments made by subsection (c) of section 2 shall be effective only with respect to annuities accruing for months after June 1957 and lumpsum payments (under section 5 (f) (1) of the Railroad Retirement Act of 1937) in the case of deaths occurring after June 1957. Section 3 shall be effective only with respect to pensions due in calendar months after July 1957 and annuities accruing for months after June 1957.

(b) The amendments made by section 4 shall be effective only with respect to compensation paid after June 30, 1957, for services rendered after such date. The amendments made by section 5 shall apply with respect to taxable years ending after June 30, 1957, but only with respect to compensation paid after such date for services rendered after such date.

[H. R. 850, 85th Cong., 1st sess.) A BILL To amend the Railroad Retirement Act of 1937 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, That (a) section 3 (a) of the Railroad Retirement Act of 1937 is amended by striking out "2.76”, “2.07", and "1.38" and inserting in lieu thereof "3.18", "2.38", and "1.59", respectively.

(b) So much of section 3 (c) of such Act as precedes “Provided, however" is amended to read as follows: “(e) in the case of an individual having a current connection with the railroad industry, the minimum annuity payable shall, before any reduction pursuant to section 2 (a) 3, be whichever of the following is the least: (1) $4.76 multiplied by the number of his years of service; or (2) $79.35; or (3) his monthly compensation :".

SEC. 2. (a) The first sentence of section 5 (f) (2) of the Railroad Retirement Act of 1937 is amended by striking out “and 7 percentum of his or her compensation after December 31, 1946 (exclusive in both cases of compensation in excess of $300 for any month before July 1, 1954, and in the latter case in excess of $350 for any month after June 30, 1954)”, and inserting in lieu thereof “7 per centum of his or her compensation paid after December 31, 1946, and prior to July 1, 1956, and 8 per centum of his or her compensation paid after June 30, 1956 (exclusive of compensation in excess of $300 for any month before July 1, 1954, and in excess of $350 for any month after June 30, 1954)”.

(b) Section 5 (h) of such Act is amended by striking out “$30”, “$160”, and “$14" wherever they appear and inserting in lieu thereof “$34.50”, “$184", and "$16.10”, respectively.

(c) Section 5 (1) (10) of such Act is amended by striking out "40", "10", $14”, “$33.33”, “$25", and "$13.33” whereever they appear and inserting in lieu thereof "46", "1142”, “$16.10”, “$38.33", "$28.75", and "$15.33”, respectively.

SEC. 3. All pensions under section 6 of the Railroad Retirement Act, all joint and survivor annuities and survivor annuities deriving from joint and survivor annuities under that Act awarded before July 1, 1956, and all annuities under the Railroad Retirement Act of 1935 are increased by 15 per centum.

SEC. 4. (a) Sections 3201, 3202 (a), 3211 and 3221 of the Railroad Retirement Tax Act are each amended by striking out "after December 31, 1954" wherever it appears and inserting in lieu thereof “after June 30, 1956”, and by striking out “after 1954” and inserting in lieu thereof “after June 1956”.

(b) (1) Sections 3201 and 3221 of such Act are each amended by striking out "644 percent” and inserting in lieu thereof "714 percent”.

(2) Section 3211 of such Act is amended by striking out “1212 percent" and inserting in lieu thereof "1412 percent".

Sec. 5. Sections 3201 and 3211 of the Railroad Retirement Tax Act are each further amended by adding at the end thereof the following new sentence: “Notwithstanding any other provision of law, the amount of the tax imposed on the income of any individual by this section shall be excluded from such individual's gross income for purposes of chapter 1 and from such individual's ‘wages' for purposes of chapter 24."

SEC. 6. (a) The amendments made by the first section of this Act and by subsection (b) of section 2 shall be effective only with respect to annuities (not including annuities to which section 3 applies) accruing for months after June 1956. The amendments made by subsection (c) of section 2 shall be effective only with respect to annuities accruing for months after June 1956 and lump-sum payments (under section 5 (f) (1) of the Railroad Retirement Act of 1937) in the case of deaths occurring after June 1956. Section 3 shall be effective only with respect to pensions due in calendar months after July 1956 and annuities accruing for months after June 1956.

(b) The amendments made by section 4 shall be effective only with respect to compensation paid after June 30, 1956, for services rendered after such date. The amendments made by section 5 shall apply with respect to taxable years ending after June 30, 1956, but only with respect to compensation paid after such date for services rendered after such date.

[H. R. 880, 85th 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 1957.

SEC. 2. Paragraphs numbered 2 and 3 of section 2 (a) of the Railroad Retirement Act of 1947, 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 month's 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.

(NOTE.—Bills identical with H. R. 880 are: H. R. 3755, H. R. 3974, H. R. 4312, and H. R. 4676.)

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