S. The present act limits the "years of service" to 30, whether prior or subsequent or both, thus limiting the annuity to $120, whereas the bill has no limit on service after January 1, 1937. 9. The present act has no minimum annuity whereas the bill provides for a minimum as follows: For persons with 20 years of service who are employees when attaining age 65, the minimum if $40, provided that if the monthly compensation is less than $50, the annuity shall be 80 percent of the monthly compensation, except that if the 80 percent is less than $20 the annuity shall be $20, or the same amount as the monthly compensation, whichever is less. It is further provided that in no case shall the value of the annuity be less than the value of the old-age benefit he would receive under title II of the Social Security Act if his service as an employee after December 31, 1936, were included in the term employment as defined in the Social Security Act. 10. The present act provides for the payment upon the death of a person receiving or eligible to receive an annuity of an amount equal to one-half of one year's annuity. It provides no death benefit in the case of a person who dies before becoming eligible for an annuity, whereas the bill has a provision applicable to all employees regardless of the time death occurs allowing as death benefit a sum equal to 4 percent of the aggregate compensation after January 1, 1937, less the amount paid as annuities to the employee or spouse. 11. The bill has a section contemplated and planned for but not contained in the present act, which provides for the taking over of pensioners on the carrier's private pension rolls, and the payment to them of the pensions in the amount originally granted by the carriers, thus restoring the reductions made since 1930. 12. The present act allows prior service to a person who is an employee on enactment date (Aug. 29, 1935) or who is in the service of any railroad at any time thereafter for any length of time, whereas the bill provides that in order to be entitled to prior service, a person must be in the service or in employment relation, or totally and permanently disabled on the enactment date. (The following is the analysis of the present act and the proposed bill prepared by Mr. Hay at the request of the committee:) Statement of Chas. M. Hay, Attorney for Committee of Railway Labor ExecutivesProposed changes in Retirement Act Persons subject. Service covered.. Present act In United States.. Employment relation.... On furlough or leave of absence and Persons eligible for an nuities. Do.. Do.. Do..... Do. subject to call for service and ready Proposed bill Persons covered by present act and railway associations, bureaus, etc., and standard railroad labor organizations; and employees of all these and employee representatives of certain other labor organizations. (See see. 1 (a) and (b).) For United States roads, wherever rendered: for Canadian roads service in United States. On furlough and subject to call for service and ready and willing to serve or on leave of absence or absent on account of sickness or disability. On retirement from railroad service... On retirement from employment. Persons 65 years of age. Persons 50 years of age with 30 years' service but with reduction of onefifteenth for each year under age 65. Persons retired by company on account of disability with 30 years' service. Persons 65 years of age. Persons 60 years of age with 30 years service but with reduction of onefifteenth for each year under age 65. Persons 60 years of age totally and permanently disabled for regular employment for hire, with reduction of one-fifteenth for each year under 65. Persons totally and permanently disabled for regular employment for hire, regardless of age with 30 years of service. Such persons also eligible on recovery to return to service and later receive age annuity but with recomputation of such annuity to compensate for disability annuity: Statement of Chas. M. Hay, Attorney for Committee of Railway Labor Executivesproposed changes in Retirement Act-Continued Proposed bill Eliminates reductions in present act, For all persons all service, without limit, rendered after Dec. 31, 1937. For persons in employment relation or totally and permanently disabled on enactment date, service prior and subsequent to such date not exceeding 30 years. Persons on Canadian roads get only proportion of prior service as provided in sec. 3(b) (1). Same as present act with authority in Board to determine fair average for prior service if records from 1924 to 1931 are inadequate. $120 when service prior to Jan. 1, 1937, is included in years of service. No limit when based on service subsequent to such date. When employee 65 with 20 years' serv. ice, $40 if monthly compensation $50 or more; if less than $50, then 80 percent thereof, and if monthly compensation is less than $20, the full amount of monthly compensation. Same, with regulations governing exercise of right. A sum equal to 4 percent of the aggregate compensation earned after Dec. 31, 1936, less amount, if any, paid to employee or widow as annuity. Payment of pensions in amount originally allowed by carrier up to $120 per month. By Retirement Board with substan. tially same powers and duties as under present act. Board authorized to engage employees without civilservice examinations but with provision to come under such service after 6 months. Same with provision for a "Railroad retirement account" in the Treasury. Mr. HAY. Yes; Mr. Harrison, I understand, wants to be heard for a few minutes. Mr. BULWINKLE. I just want to point out, Mr. Harrison, that there will probably be a roll call at 11 o'clock this morning, and I think that most of the members of the committee want to get over on the floor. I think under those circumstances that we had better wait until tomorrow morning. We can meet here tomorrow morning at 10 and then get through with the hearings. We will hear Mr. Latimer and then if there is any short statement you have, we can go along with you until there is a quorum call. Mr. HARRISON. All I want to do, Mr. Chairman, is to offer two or three slight amendments that the Treasury Department has suggested, and to which the railroads and the workers have agreed. Mr. BULWINKLE. All right, sir, we will be glad to hear them, and then we will hear Mr. Latimer tomorrow morning at 10 o'clock. Mr. HARRISON. I would like to offer an amendment on page 2 of the bill. Strike out lines 3, 4, 5, 6, 7, 8, and the words "(other than trucking service)" in line 9 and insert in lieu thereof the followingMr. HALLECK. That is on page 2? Mr. HARRISON. Yes, sir; page 2, lines 3 to 8, both inclusive, and the words in parentheses "other than trucking service" in line 9. And insert in lieu thereof the following: (a) The term "employer" means any carrier (as defined in subsection (m) of this section), and any company which may be directly or indirectly owned or controlled by one or more of such carriers or under common control therewith, and which operates any equipment or facility or performs any service (except trucking service, casual service, and the casual operation of equipment or facilities). Then, on page 6, after line 15 Mr. MARTIN. Does that include the little typewritten slip which was attached to the bill given to us yesterday? Does that go out, too? Mr. HARRISON. Yes, sir; that is the typewritten amendment which we have changed along with the printed portion of the bill. On page 6, after line 15, insert the following new subsections to section 1: (k) The term "company" includes corporations, associations, and joint-stock companies. (1) The term "employee" includes an officer of an employer. (m) The term "carrier" means an express company, sleeping-car company, or carrier by railroad subject to part I of the Interstate Commerce Act. Now, the amendments I have offered are nothing more than definitions of the terms that appear in the bill, and the amendments were proposed to the railways and the workers by the Treasury Department in the interest of the administration of the bill. And the railway management and the railway workers have accepted the amendments, and we should be glad to have the committee accept them. Mr. BULWINKLE. Let me ask you this, Mr. Harrison: (M) states "express company, sleeping-car company, or carrier by railroad subject to part I of the Interstate Commerce Act." That does not take in trucks? Mr. HARRISON. No. You see, trucks and busses, truck and bus companies engaged in interstate commerce are subject to part II of the Interstate Commerce Act, and we do not intend to include them under this legislation. Mr. PETTENGILL. Am I to understand that all of these railroads are parties to this agreement? Mr. HARRISON. They are parties to the agreement, and also the Treasury Department, and the workers. Mr. PETTENGILL. Assuming that the amendments are incorporated in the revised act, will there be a supplemental agreement that everybody consents to these amendments? Mr. HARRISON. I should think that if the committee agrees with all of the amendments that we have offered, there would be an agree ment and that we should then reach a supplemental agreement with the railroads setting forth as a matter of record that they have agreed to these amendments. Mr. PETTENGILL. Yes; I should think so. STATEMENT OF J. CARTER FORT, GENERAL SOLICITOR, ASSOCIATION OF AMERICAN RAILROADS, TRANSPORTATION BUILDING, WASHINGTON, D. C. Mr. FORT. Mr. Chairman, I should like to say, speaking for the railroads, that these suggested amendments are entirely a matter of language and phraseology and for the purpose of clarification. They really represent no change whatever in the agreement as entered into or in the substance of the bill. It is just a matter of draftsmanship. Mr. BULWINKLE. Mr. Latimer not being here this morning, the committee will adjourn to meet at 10 o'clock tomorrow morning. The House is in session at 11 o'clock this morning. (Thereupon, at 11 a. m., the committee adjourned to meet at 10 a. m., Friday, May 21, 1937.) |