The maintenance of earnings accounts includes the work of processing employers' reports of employees' compensation and service, for use in making claims payment determinations. Information must be accumulated for every railroad employee to identify the actual calendar months worked and the creditable earnings from January 1937 to date. In addition, railroad service rendered prior to 1937 must also be developed when claimed, since such service often is creditable under the Act.

This is a relatively minor activity which accounts for approximately 2% of total man-year requirements in administering the railroad retirement system. Manpower usage is expected to the 7 man years in the transition period.

This activity covers work involved in processing applications for regular retirement and survivor benefits, applications for supplemental annuities, and applications to establish eligibility for medicare. The work involved includes time in field offices spent in assisting the persons in completing their applications; securing necessary proofs of age and relationship; explaining rights and obligations of the applicant; explaining various restrictions if benefits are to continue, including complete forfeiture of the supplemental annuity if there is any return to

compensated service to a railroad employer no matter how brief the service; explaining reductions that would be made in the regular annuity if there is subsequent entitlement to a social security benefit; eliciting information as to whether the employee is also entitled to a pension from his railroad employer and explaining the reduction such entitlement would require in the supplemental annuity otherwise payable; explaining the medicare program for those eligible or about to become eligible for enrollment; and explaining to those already enrolled whose premiums were paid in cash that premiums now will be deducted from their annuities. Work involved in headquarters includes time spent in developing months of creditable service and average creditable compensation, including in some instances service performed prior to 1937; securing information from railroad employers on amounts of pensions payable after applying reductions to the supplemental annuity for entitlement to a company pension, and reductions to the regular annuity for entitlement to the supplemental annuity and social security benefits; issuing notices of awards; paying the accrual amount; and establishing the person on the monthly payment rolls.

The volume of the various types of new applications estimated for handling in 1976 and the transition period (excluding applications from unretired persons to establish eligibility for medicare, costs of which are reimbursable by the Social Security Administration) is as follows:

As explained previously, there will be an influx of applications in the latter half of 1975 and in 1976. These applications will be generated by Public Law 93-445 and will create pending loads which will be carried over into the transition period. Because of the complexities introduced, the Board's pending load at the close of 1976 is expected to be 29,000. While the pending load will be reduced during 1976, the carry-over of 29,000 cases into the transition period is greater than the normal carry-over of about 20,000 cases into the new fiscal year.

This activity covers the maintenance of the monthly roll of persons receiving retirement and survivor benefits, the roll of persons receiving supplemental annuities, and the roll of persons eligible for medicare benefits. The work includes handling regular changes in the rolls; handling inquiries from persons on the rolls; making deductions of premiums for medicare; policing to verify that persons continue to be eligible to receive monthly benefits; and making benefit-rate changes required by amendments, including handling inquiries relating to the changes.

The number of persons receiving regular monthly benefits is expected

to be 1,000,000 during the transition period.

Manpower usage for this activity to handle increases in regular and special amendment work is expected to be 99 man years.

This activity embraces the functions of executive direction and general administration, including activities such as personnel, legal, fiscal, property management, budgeting, administrative planning and control, and other similar activities.

Railroad Retirement Board

Limitation on Salaries and Expenses
of the Railroad Retirement System

Program Purpose and Accomplishments

Transition Period - July 1, 1976 September 30, 1976.
Budget Estimates

Authorization

Amount

Positions

Purpose: The railroad retirement system provides for the payment of retirement and disability annuities to railroad employees, annuities to their spouses, and benefits to their survivors.

Explanation: The system is financed by taxes by railroad workers and employers paid into the Railroad retirement accounts. The amounts needed for benefit payments and administrative expenses are derived from these accounts.

Objectives for Transition Period: We will continue to clear up the backlogs created by new legislation that carried over from 1975 and 1976; service the monthly benefit roll of 1,000,000 beneficiaries; process 38,950 new applications for benefits; and continue to make adjustments in benefits.

New Positions Requested
Fiscal Year 1976

None

MONDAY, MAY 12, 1975.

UNITED STATES SOLDIERS' HOME AND AIRMEN'S

HOME

WITNESSES

LT. GEN. F. T. UNGER, GOVERNOR; COL. ERNEST L. JANES, SECRETARY-TREASURER; R. A. GRITTON, BUDGET OFFICER

Mr. FLOOD. We now have the Soldiers' and Airmen's Home. The presentation will be made by Lt. Gen. F. T. Unger, the Governor. Will you see that we get your biographical sketch, General Unger?

General UNGER. Yes, sir, I will.

Mr. FLOOD. We will put that in the record.

[The biographical sketch follows:]

BIOGRAPHIC DATA

(Ferdinand Thomas Unger, Lieutenant General, U.S. Army, retired)

Personal data: Born, October 28, 1913, Pittsburgh, Pa. Married October 28, 1942, to Evelyn Bayly Bucher. Two children.

Military schools attended: U.S. Military Academy, Command and General Staff School, educational equivalent to Command and General Staff College, Armed Forces Staff College, and the National War College.

Educational degrees: U.S. Military Academy, B.S. degree, civil engineering.

MAJOR PERMANENT DUTY ASSIGNMENTS (LAST 10 YEARS)

Group Commander, 72d Artillery Group, U.S. Army, Europe, February 1960 to July 1960.

Artillery Commander, 3d Infantry Division, U.S. Army, Europe, July 1960 to July 1961.

Chief of Staff, Third U.S. Army, Fort McPherson, Ga., August 1961 to July 1962.

Director of Operations J-3, the Joint Staff, Office, Joint Chiefs of Staff, Washington, D.C., July 1962 to May 1964.

Commanding General, 7th Infantry Division, U.S. Army, Pacific, June 1964 to August 1965.

Deputy Chief of Staff for Individual Training, U.S. Continental Army Command, Fort Monroe, Va., September 1965 to October 1966.

Commanding General, U.S. Army, Ryukyu Islands/IX Corps and High Commissioner, Ryukyu Islands, November 1966 to February 1969.

Director, Civil Disturbance Planning and Operations, Office, Chief of Staff, U.S. Army, Washington, D.C., March 1969 to April 1969.

Director, J-5, Plans and Policy Directorate, Office, Joint Chiefs of Staff, Washington, D.C., May 1969 to July 1970.

Retired, August 1, 1970.

MEDALS AND AWARDS

Distinguished Service Medal (with Oak Leaf Cluster); Legion of Merit (with 4 Oak Leaf Clusters), and Army Commendation Medal (with Oak Leaf Cluster).

BIOGRAPHIC DATA

(Ernest L. Janes, Colonel, U.S. Army, retired)

Personal data: Born May 1, 1912, Bardstown, Ky. Married November 3, 1937, to May Elizabeth Botts. Two children.