Evening star., 1935-08-20
RAIL PENSION ACT
GOES TOPRES|DENT
Waqner.Crosser Bill Passes
House and Senate in
Quick Succession.

QuIGk SuCCCSSIUIls
Keeping railroad employees in line
with those who would benefit from
the new social security program, Con-
gress yesterday passed q, new Wagner
Crosser railroad pension bill House
end Senate approval came in quick
succession, and the measure was dis
patched Immediately to the White
House for President Roosevelt's sigma
ture.
Submitted in revised form as a
substitute for the bill which was
declared unconstitutional by a 5-to-
vote last year, the new act was
riloted through the Senate yester-
day by Senator Wagner, New York
Democrat, by vote of 76-to-3.
Those opposing were Republican
Senators Hastings Of Delaware,
Metcalf Of Rhode Island and Hale Of
Maine Passage in the House came
without a record vote.
Two principal steps were taken to
avoid the constitutional objections
raised last year. First of these was
the placing of the taxation provision
in separate bill which has not yet
passed, but on which the House Ways
and Means Committee is now hold
ing hearings. This companion mea-
sure, in its present form, would levy
tax of per cent on railroad pay
rolls and one of 2 per cent on the
salaries of employees.
The second step was the omission
In the new bill of provision to blanket
in railroad employees who had been
retired during the IL months pre-
ceding enactment of the measure
Such a provision was in the bill last
year and was criticized in the adverse
Supreme Court opinion.
Those Who Are Eligible.
In its present form, the bill takes
In all railway employees or representa-
tives of employees subject to the inter-
state act who are in service or on
furlough at the time of or subsequent
to the enactment of the measure.
Those eligible for annuities are:
l. Any employe or representative of
employees 65 years of age or over.
2. Any employe or representative of
employees so years of age or over who
has had service period of 80 years
or more. The service period includes
service for any railway before or after
enactment of the measure.
g. Any employe or representative of
employees who has had a service period
Of 30 years or over and who has re-
tired because Of mental or physical
disability.
The rates of annuities are calculated
as follows:
The monthly annuity of employees
shall be the employees service period,
not exceeding 80 years, multiplied by
certain percentage Of his average
monthly compensation. This per-
centage shall be 2 per cent of the
first $50, IL per cent of the next $l00
and per cent of the wage in excess
Of $50. No part of any monthly COM
pensation in excess of $500 shall be
counted in calculating an annuity.
Illustration Of Provisions.
Senator Wagner illustrates the work.
ing of the law as follows:
Take, for example, 80 years O..
service at 5000 per month. In that
event the pensioner would receive 2
per cent on the first $50, which Is 81; !;
Ia per cent on the next $l00. which
Is s1.50. and l per cent on the last
$50, which is so cents, making a total
Of So, which, multiplied by his 80
years Of service, would come to a
monthly annuity of $50.
The annuity shall be reduced by
one-fifteenth for each year an em-
ploye is under IS years of age when
he retires. unless he retires on &C
count Of disability. Similarly, the an
nuity shall be reduced one-f1fteenth
for each year the employe stays on
after he reaches the age Of IS years"
The bill also provides for a retire.
ment board of three members In ad-
dition, it creates a commission OF
three members of the Senate, three of
the House and three to be appointed
by the President to investigate and
report on the whole subject of rail-
road pensions by January l, 1896.
This investigation is expected to con-
Germ itself principally with the sub
ject of pension systems of individual
railroads and their status under the
new law.
Sponsors of the new act claim that
1t will be self-supporting and will not
require any contribution from the
Federal Government. 1t is estimated
that the cost of operation during its
first full year would be about $50
100000. The measure does not. be-
come effective until March /, 1886.