Lapas attēli
PDF
ePub
[blocks in formation]

Economic security remains the number one problem

confronting older persons. While some progress has been made in recent years, the degradation and humiliation of poverty persists in the lives of millions of older Americans. While this country's economic, industrial and medical progress have combined to permit an increasing proportion of the population to reach old age, circumstances have too often reduced the older person to a dependent condition, thus depriving him of his traditional function, status and dignity.

The railroad workers of this generation have grown up with the present system of railroad retirement. They have the right to expect that they will receive the benefits of the system which they have financed, and to be protected by this system from the creeping erosive effect of inflation on their economic well-being. The legislation before this Committee, S. 3852, recognizes the public commitment to railroad retirees, an obligation to meet their financial needs as payment for their many productive years of hard work.

The Congress has shown leadership in raising public benefit levels during the past two years in an attempt to arrest the impact of inflation on retirement income purchasing power. Unfortunately, these past increases proved to be only a temporary holding action against the onslaught of inflation. Despite the

1970/71 increases in public benefit levels, 4.7 million persons age 65 and over about one-fourth of the total older population resided in households in which the aggregate income fell below

the poverty level.

[blocks in formation]

The recent increase in Social Security is an unpre

cedented step toward providing older Americans with a moderate standard of living. For the first time, the Congress recognized the need to provide older persons with benefit increases beyond the level of meeting the prior impact of inflation on retirement income purchasing power. The substantial increase in Social Security benefits will help lift many older Americans from the poverty level.

The Congress must now act to pass similar benefits along to those who rely upon other public retirement systems. The present parity between Social Security and Railroad Retirement must be maintained the Congress must act to provide a

20 percent increase in benefits for railroad retirees.

Our Associations are pleased to learn that the long awaited report of the Commission on Railroad Retirement has been filed. As a contributor to the Commission, we are anxious to review the recommendations of the panel. We know that this Committee will give attentive consideration to the recommendations of the Commission and draft legislation which will most benefit railroad retirees and future retirees.

One specific recommendation which we offered the Commission bears directly on the legislation before this Committee:

THE NATIONAL RETIRED TEACHERS ASSOCIATION AND THE

AMERICAN ASSOCIATION OF RETIRED PERSONS BELIEVE THAT

EXCLUSIVE RELIANCE ON CONTRIBUTIONS SHOULD BE ABANDONED.

82-813 O 72-9

4

The burden of the regressive tax of railroad retirement

is already onerous.

Since each generation of workers bears the responsibility of supporting the nonproductive population and since Congress has the responsibility for assuring that the financial burden is distributed in the most equitable manner, our Associations believe that the general revenues must be utilized to finance most future railroad retirement benefit increases.

In acting favorably on S. 3852, Mr. Chairman, this Committee will go a long way toward assisting many retired railroad employees improve their quality of life and to live their remaining years with dignity, independence and purpose.

Thank you.

(Thereupon at 5:30 p.m., the hearing was adjourned.)

Appendix

(EXCERPTS FROM THE RAILROAD RETIREMENT SYSTEM: ITS COMING CRISIS)

THE

RAILROAD

RETIREMENT SYSTEM:
ITS COMING CRISIS

REPORT OF THE COMMISSION ON RAILROAD

RETIREMENT

JUNE 30, 1972

[blocks in formation]

*Appointed May 22, 1972, as management member; Mr. John P. Hiltz, Jr., served in the position until February 7, 1972.

**In addition, the following individuals who worked in a contract role rendered important service: Betti C. Goldwasser, Mary Frances leMat, Herbert Miller, Philip A. Ritz, and Hirst Sutton.

***The Commission's Actuarial Consultants under the terms of Public Law 91-377.

(II)

« iepriekšējāTurpināt »