preciate the fact that I was in good health and could keep on working, but I did enjoy the work I was doing.

I enjoyed the teaching of the adults, as well as small children, and I still say that people are actively concerned about the jobs they are doing.

Senator RANDOLPH. Thank you very much.

Ordinarily, I would say we have been interrupted, but I think we have been helped by your personal testimony.

You speak about WPA; people do not know anything about it. They say that it was not a producing project. Every single person in WPA was employed. Did you realize that? Go back and study it. People did the work they were able to do.

Some people wrote the history of a community or a county. There were writer projects with persons who had certain talent, but could not do other jobs. There were painting or art projects.

Everyone was doing some sort of work in the WPA. I see yet, the sidewalks, the streets, the buildings constructed in the 1930's. It is a shame we cannot put in perspectives some of those happenings of long ago.

I will be held accountable for this, but I remember March 18, 1933. It was raining in Washington, D.C., and President Franklin Roosevelt was sitting at his desk on the second floor of the White House. There were seven young Members of the Congress elected in 1932, as was I. We were talking about the programs and the projects that were to come into being the first 100 days of that creative administration. But there was one man, a doubter, he kept saying, "I do not think we can do that.”

And Franklin Delano Roosevelt gripped his fist and he hit that desk and he said, "But, gentlemen, do you realize we must act now." That is what we have to do; not only plan, but we have to act. Now, we do thank you all very much. We will have to move on to the next panel. I did want to ask you some questions, but you have indulged me these reminiscences.

I can assure you we were happy to hear from the former teacher who gave her documented evidence of her feelings about these matters. I have a question for Mr. Hartstein, which I hope you will answer by letter, because our time for oral presentations is short.

[Subsequent to the hearing, the following was received from Mr. Hartstein in response to inquiry by Senator Randolph :]

Question: You believe that the earnings limitation under social security is a deterrent to older Americans who want or need to work. What steps are needed to improve the so-called retirement test under social security?

Answer: It is my opinion that the limitations placed on retirees working may have been justified at the start of the social security system, but we probably could lift all ceilings on earnings and still not have any major impact on the labor market. Many retirees will still not want to work; there is a trend for more and more to go on early retirement, and there are still some who need to work to supplement their social security to exist in our present economy. This type of action would likewise keep people honest; too many are manipulating records so as to show working in one month so as to not affect their social security payments for the remaining 11 months.

Senator RANDOLPH. Our next group of witnesses is made up of representatives from elderly organizations. Miss Margaret Hayes, immediate past president, Retired Teachers Association of Chicago: Mrs. Mary Alice Henry, cochairperson. Social Services Committee for

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the Chicago Planning Council on Aging, Mayor's Office for Senior Citizens; and Mr. Clyde E. Murray, vice president, Chicago Area Council of Senior Citizens Organizations.

Our witnesses will please identify themselves and their organization with which they are associated. Margaret, we will begin with you.

PANEL ON ELDERLY ORGANIZATIONS

STATEMENT OF MARGARET HAYES, IMMEDIATE PAST PRESIDENT, RETIRED TEACHERS ASSOCIATION OF CHICAGO

Miss HAYES. I am Margaret Hayes, the past president of the Retired Teachers Association of Chicago.

In the State of Illinois there are three public school teachers pension systems. The largest one, covering elementary and high school teachers outside of Chicago, is generally referred to as Downstate Teachers Pension Fund with currently over 24,000 annuitants. The smallest teacher pension system is that of the State colleges and universities with almost 3,500 persons currently receiving checks. The third group is the Public School Teachers Pension and Retirement Fund of Chicago which sends checks to over 8.500 persons-more than 500 to widows and survivors, 200 to disability cases and almost 7.800 to teacher pensioners. The total number of teacher pensioners in Illinois is thus over 36,000.

The three systems have the same formula, the same automatic increase and the same reciprocal agreements in transferring from one pension system to another. They have a few common characteristics and problems to which I would like to call your attention. One common characteristic is that these are pension funds without any connection whatsoever to social security. In other words, we teacher pensioners did not receive an increase in our pension checks on July 1. A few of our members receive social security, but they do so because of widow's benefits or because they sought employment outside the public schools to qualify. More of this later.

The second characteristic is that none of the Illinois teacher pension systems have any adjustment to the cost of living. Each system has a 2-percent annual increase. Recently, efforts to raise the 2 percent to 3 percent failed. One could not, by any stretch of the imagination today, consider 2, 3, or even 4 percent a cost-of-living adjustment. My own annual increase is $12.32 monthly based on my first pension check. A friend of mine in Federal service took early retirement 2 years ago and has already received an increase of $46 monthly in her pension.

A third characteristic concerning our pension is the popular notion that all teacher pensioners, regardless of age, receive the reasonably adequate pension that is actually enjoyed by only very recent retirees.

THREE GROUPS OF PENSIONERS

Three are really three groups of pension recipients: (1) the newest, smallest, and most adequately pensioned group, (2) the middle, largest group-age 70 to 85-retired 5 years or more receiving pensions that are now inadequate because of the high cost of living, and (3) a somewhat smaller group of retirees age 80 and over who receive very small pensions and are acutely affected by the increased cost of living

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some are at or below the poverty level. A few still have not exhausted their private resources. But those in need do not always reveal their plight and refrain from "asking for charity" even from their own Service Committee of the Retired Teachers Association of Chicago. But these are proud people. They think they can live on just a pension, and they refrain from asking for charity.

A little relief has come to this last group because of recent legislation which the Governor has just signed. 1,500 of this lowest group were receiving less than $3,000 annually, 1,000 were receiving less than $2,000. This new legislation will guarantee a pension of at least $100 a year for every year taught so that 35 years of service, for example, will guarantee a pension of $3,500-still very small, but better than $1,500.

Before indicating how teacher pensioners manage without social security and cost of living adjustments, I would like to present a few facts about the Public School Teachers Pension and Retirement Fund of Chicago.

Founded in 1895, it is the oldest teachers pension fund in the country. The fund is administered by a board of trustees and an executive secretary. Six persons-teachers are elected to the board by the contributors and three are board of education members. The current executive secretary is a former teacher, principal and director of teacher personnel. She has great responsibility, and great ability, as did her predecessors. A representative, usually the president of RTAC, is an observer at the meetings and is free to ask questions but not to vote. All three state pensions hope that in the near future at least one regular member of each pension board will be a pensioner. Chicago pension funding is financed by: Member contributions of 8 percent of salary, approximately-yearly variation-5 percent from the city of Chicago, 7 percent from the State of Illinois, and about 1 percent from Federal projects and about 75 to 80 percent from interest on investments.

Compulsory retirement for Chicago teachers came in the late 1920's. I was teaching at that time. It was during that period that the Retired Teachers Association of Chicago (RTAC) was organized, preceding the organization of the National Retired Teachers Association by two decades. There is close cooperation between the RTAC and the pension office, especially in matters of welfare, service and legislative concerns. The RTAC dues are low but our benefactions from gifts and wills have been most generous, which enables our service committee to give monthly stipends, pay essential bills and help some of our needier members in a variety of ways. Our membership of nearly 5,000 is widely scattered and our assistance is not limited to persons in the Chicago metropolitan area. As time and conditions change, we are considering securing the services of a psychiatric social worker.

"PINCH OF INFLATION"

Those pensioners in the age group 70-85, including myself, are feeling the pinch of inflation and have some readjusting to do. One helpful aspect is that those of us who were 65 before July 1, 1966, are covered by medicare, parts A and B. More recent retirees frequently seek employment to qualify for social security.

Teachers often work in nonpublic schools or in offices to build up their "quarters." Once a person has qualified for social security, there

is a further snag, however, in the financial limitations of earnings at $2,520 up to age 72. Of course more money can be earned, but it is hoped that the requirementof having to return to the Federal Government $1 for every extra $2 earned will be removed. The period from age 65 to 72 is the most likely and practical time for employment, but it is sometimes difficult to arrange part-time work with employers who are seeking full-time help.

Many of us would like to keep close ties with our professional life but now we are penalized because we can no longer deduct for professional dues, travel, or related publications from our income tax as professional expenses.

Just recently, as I signed a check for $12.50 for my favorite professional journal, I thought, "This is the last time I will subscribe to this publication." Yet we are advised to keep alert and alive with our profession but we are discouraged financially.

In order to cope with day-to-day living we retired teachers are doing what recent headlines indicate many people are doing "They Buy Less and Cheaper." Our fur coats are getting pretty sad looking, our old model cars are kept in action by careful repairs. We cut down on travel-teachers are great travelers-and we cut down on our charitable contributions-we seem to be targets for every conceivable kind of charity and humane cause.

THREE RECOMMENDATIONS

Would removing the compulsory retirement barrier of 65 help? Perhaps. Some of us think we could have worked successfully until we were 70. Today, more and more persons are taking early retirement. I think age 65 has gotten to be a bad psychological barrier, announcing to the world that at 65 everyone is finished, through, at the end of the line. I have previously indicated two situations where some of us could receive help, but it would be of great help to all our annuitants if these three suggestions would be acted upon, soon:

1. Give Federal income tax exemption on all annuities the same as social security recipients.

2. Recognize the tremendous problems confronting pensioners on fixed incomes and provide additional tax deductible items for this group, for example, medicine. food, more exemptions for age, dental care, eye and vision care.

3. Include without payment medicare coverage for persons under State and local pension systems.

Senator Randloph, I recommend these for your gracious considera

tion.

Senator RANDOLPHI. Thank you very much. That is a very excellent statement.

We will now hear from Mrs. Mary Alice Henry.

STATEMENT OF MARY ALICE HENRY, COCHAIRPERSON, SOCIAL SERVICES COMMITTEE FOR THE CHICAGO PLANNING COUNCIL ON AGING, MAYOR'S OFFICE FOR SENIOR CITIZENS

Mrs. HENRY. My name is Mary Alice Henry. I am the cochairperson, Social Services Committee for the Chicago Planning Council on Aging, the mayor's office for senior citizens.

I am happy to receive an invitation from the U.S. Senate to testify before the Subcommittee on Employment and Retirement Incomes of the Special Committee on Aging. The recession and the older worker, a category I find myself in and there isn't anything I can do but face

it.

I hope and trust by the help of God what I say here today will be beneficial to all senior citizens wherever they may be.

I feel whatever input I have, I want it well understood I am speaking for all senior citizens, regardless of race, creed, or color.

As a senior citizen and a resident of the city of Chicago, Ill., I have lived to see many of the shortcomings of society toward the elderly. This reflects in the large number of senior citizens all over America suffering on skidrows, and in boarding homes, and other obsolete places.

We find our government still spending money to join in outer space with other nations, and bringing other nations here by the thousands, and some of our people are not getting their just dues.

When a person has worked for years in this society and has given all that was in them, I don't feel that when he/she becomes 65 years old, they should be forced to retire. I think they should be allowed to work as long as they are physically and mentally able.

I might add, that on some jobs the young people force them to do hard jobs so they will retire soon and get out of their way. One must remember, we did not ask to live this long, but due to medical science and mother nature, we are very much alive. We know they have started a new trend birth control. I hope the trend doesn't change and they start mercy control on senior citizens.

EDUCATION

Education-there are many senior citizens that never spent a day in college, but they have a world of experience, and they could do a good job as a consultant to younger people in many walks of life.

I only have a degree of CSTA-commonsense, talent and ambition. I am from the university of the Getto on the west side of Chicago, I feel people like myself and other seniors could be given a degree for their volunteer work and their contribution to society.

I feel no one gets too old to learn. The colleges and schools should bring their programs to the community and make it mandatory that the seniors and others that receive awards from city, State and government use this program. They could be taught how to spend the award money they receive and they, in turn, would be more likely to want to be independent. This could keep many from receiving assistance.

NUTRITION AND TRANSPORTATION

Nutrition, yes, it is true, some seniors register at the nutrition sites. We don't have half enough sites to accommodate those that need it. Some seniors are sick and senile and unable to see after themselves. They need food brought to them.

We need transportation for those who are registered to get to and from the sites; therefore, we need more money for minibuses.

We need mobile stores where seniors live and all over the city, and the store could be equipped with a section for staple goods and a sec