110

RAILROAD RETIREMENT ANNUITY INCREASE-1972

HEARING

BEFORE THE

SUBCOMMITTEE ON RAILROAD RETIREMENT

OF THE

COMMITTEE ON

LABOR AND PUBLIC WELFARE
UNITED STATES SENATE

NINETY-SECOND CONGRESS

SECOND SESSION

ON

S. 3852

TO AMEND THE RAILROAD RETIREMENT ACT OF 1937 TO
PROVIDE A TEMPORARY 20 PER CENTUM INCREASE IN
ANNUITIES, AND FOR OTHER PURPOSES

H.R. 15922

TO AMEND THE RAILROAD RETIREMENT ACT OF 1937 TO
SIMPLIFY ADMINISTRATION OF THE ACT

H.R. 15927

TO AMEND THE RAILROAD RETIREMENT ACT OF 1937 TO
PROVIDE A TEMPORARY 20 PER CENTUM INCREASE IN
ANNUITIES, AND FOR OTHER PURPOSES

TRANSPORTATION
"CENTER LIBRARY

AUGUST 10, 1972

1074

Printed for the use of the Committee on Labor and Public Welfare

ANSPORTATION

CENTER

LIBRARY

HD
7/16.R1
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COMMITTEE ON LABOR AND PUBLIC WELFARE

HARRISON A. WILLIAMS, JR., New Jersey, Chairman

JENNINGS RANDOLPH, West Virginia
CLAIBORNE PELL, Rhode Island
EDWARD M. KENNEDY, Massachusetts
GAYLORD NELSON, Wisconsin
WALTER F. MONDALE, Minnesota
THOMAS F. EAGLETON, Missouri
ALAN CRANSTON, California
HAROLD E. HUGHES, Iowa

ADLAI E. STEVENSON III, Illinois

JACOB K. JAVITS, New York
PETER H. DOMINICK, Colorado
RICHARD S. SCHWEIKER, Pennsylvania
BOB PACKWOOD, Oregon
ROBERT TAFT, JR., Ohio

J. GLENN BEALL, JR., Maryland
ROBERT T. STAFFORD, Vermont

HD 7116.R1 U58ri

3 5556 021 299 169

CONTENTS

Text of:

S. 3852.

Railroad Retirement Board, departmental report_

H.R. 15927_

Office of Management and Budget, departmental report.......

H.R. 15922_

CHRONOLOGICAL LIST OF WITNESSES

THURSDAY, AUGUST 10, 1972

Quarles, Wythe D., management member, Railroad Retirement Board,

and Neill P. Speirs, labor member, Railroad Retirement Board; accom-

panied by James L. Cowen, chief actuary, and David B. Schreiber, asso-

ciate general counsel_-_.

Ymtema, Theodore O., chairman, Commission on Railroad Retirement, ac-

companied by Michael S. March, executive director__

Dennis, C. L., Commission on Railroad Retirement; accompanied by James

Kennedy, legislative chairman; Ed Unger, economist, and Ned Davis,

counsel

Schoene, Lester P., Congress of Railway Unions and the Railway Labor
Executives' Association, accompanied by J. Taylor Soop, executive secre-
tary, Railway Labor Executives Association; and Donald S. Beattie,
secretary and treasurer, Congress of Railway Unions‒‒‒‒

Behling, Burton N., transportation consultant, on behalf of the Association

of American Railroads..

Page

2

46, 51

6

43

10

28

63

885

100

109

STATEMENTS

Behling, Burton N., transportation consultant, on behalf of the Association

of American Railroads__

109

Prepared statement_

113

Dennis, C. L., Commission on Railroad Retirement; accompanied by James

Kennedy, legislative chairman; Ed Unger, economist, and Ned Davis,

counsel

Prepared statement.

Mondale, Hon. Walter F., a U.S. Senator from the State of Minnesota, pre-
pared statement____

National Retired Teachers Association and the American Association of
Retired Persons, prepared sttaement_-

Quarles, Wythe D., management member, Railroad Retirement Board, and

Neill P. Speirs, labor member, Railroad Retirement Board; accompanied

by James L. Cowen, chief actuary, and David B. Schreiber, associate

general counsel_

Prepared statement___

Schoene, Lester P., Congress of Railway Unions and the Railway Labor

Executives' Association, accompanied by J. Taylor Soop, executive sec-

retary, Railway Labor Executives Association; and Donald S. Beattie,

secretary and treasurer, Congress of Railway Unions___.

Prepared statement_

100

103

Speirs, Neil P., labor member of the Railroad Retirement Board, prepared

statement

Ymtema, Theodore O., chairman, Commission on Railroad Retirement, ac-

companied by Michael S. March, executive director__

Prepared statement...

58

63

73

(III)

ADDITIONAL INFORMATION

Charts:
Gross receipts, gross expenditures, and status of the railroad retire-
ment account assuming 20 percent benefit increase, 1970-2000-‒‒‒‒
Projected annual cash-flow deficits of railroad retirement system,
1970-2000
Communication to:

Williams, Hon. Harrison A., a U.S. Senator from the State of New
Jersey, from:

Butler, R. F., Secretary, United States of America Railroad Re-
tirement Board:

Page

83

84

Report on S. 3852, August 4, 1972_
Report on H.R. 15922, August 4, 1972_

Habermeyer, Howard W., Chairman, United States of America
Railroad Retirement Board, Chicago, Ill., June 30, 1972 (with
enclosures)

Appendix-The Railroad Retirement System: Its Coming Crisis-Excerpts from the Report to the President and the Congress by the Commission on Railroad Retirement, June 30, 1972__.

46

51

14

127