HEARING BEFORE THE SUBCOMMITTEE ON OF THE COMMITTEE ON LABOR AND PUBLIC WELFARE EIGHTY-NINTH CONGRESS ON S. 3274 A BILL TO AMEND THE RAILROAD RETIREMENT ACT OF 1937, THE A BILL TO AMEND SECTION 5(1) OF THE RAILROAD RETIREMENT ACT S. 2889 A BILL TO AMEND SECTION 5(1) OF THE RAILROAD RETIREMENT ACT S. 2892 A BILL TO AMEND SECTION 5(1) OF THE RAILROAD RETIREMENT ACT MAY 18, 1966 Printed for the use of the Committee on Labor and Public Welfare 63-818 O U.S. GOVERNMENT PRINTING OFFICE CHRONOLOGICAL LIST OF WITNESSES Hon. Jacob K. Javits, a U.S. Senator from the State of New York.......... Howard W. Habermeyer, Chairman, Railroad Retirement Board.. Lester P. Schoene, counsel, Railway Labor Executives Association. Byrnes, Robert B., National Railroad Pension Forum, Inc... Habermeyer, Howard W., Chairman, Railroad Retirement Board.. Javits, Hon. Jacob K., a U.S. Senator from the State of New York. Schoene, Lester P., counsel, Railway Labor Executives Association_ Habermeyer, Howard W., Chairman, Railroad Retirement Board... Loomis, Daniel P., president, Association of American Railroads_____ AMEND RAILWAY RETIREMENT LEGISLATION WEDNESDAY, MAY 18, 1966 U.S. SENATE, RAILROAD RETIREMENT SUBCOMMITTEE OF THE COMMITTEE ON LABOR AND PUBLIC WELFARE, Washington, D.C. The subcommittee met at 9:30 a.m., pursuant to call, in room 4221, Senate Office Building, Senator Claiborne Pell (chairman of the subcommittee) presiding. Present: Senator Pell (presiding). Also present: Senator Jacob K. Javits. Committee staff members present: Stephen J. Wexler, counsel, Railroad Retirement Subcommittee; and Frank Cummings, minority labor counsel. Senator PELL. The hearing will come to order. I should first like to thank you all for appearing at 9:30 rather than the previously scheduled 10 o'clock. Your kindness in changing plans is greatly appreciated. We have before us for consideration a number of bills, all of which would provide for survivor benefits under the Railroad Retirement Act of 1937 to children in the ages of 18 to 21, inclusive, who are full-time students. In addition, S. 3274, which I introduced, would make certain other changes in the Railroad Retirement Act. The estimated cost of the amendments proposed in my bill is $7.8 million a year on a level basis. The present long-range deficiency in the financing of the benefits in the railroad retirement system is estimated at 0.62 percent of taxable payroll, or $29.8 million a year on a level basis. Enactment of my bill would increase this deficiency by 0.16 percent or by $7.8 million a year on a level basis-to a total of 0.78 percent of taxable payroll, or $37.6 million a year on a level basis. Although the deficit would thus be increased, the Railroad Retirement Board, in its report to the committee on my bill, stated thatThe considerations in favor of the provisions included in the bill are such as to warrant their enactment. The bulk of the cost of my bill would be incurred by the provision for survivor benefits to full-time students in the ages 18 to 21, inclusive, and the provision to bring up to date the residual lump sum benefit under the Railroad Retirement Act. The first of these substantial amendments is essential to avoid discrimination against school children in the ages of 18 to 21, inclusive, who are covered under the Railroad Retirement Act. The 1965 amendments to the Social Security Act provided for this type of benefit to children covered under that act, and my bill would provide for |