Proposed Budget for Social Security and Related Programs, 1952–53

ing to this estimate the railroad retirement system might have a relatively small amount to transfer to the old-age and survivors insurance system, but the amount is far more than offset by the employer and employee contributions with respect to the short-service employees that the railroad retirement system, in effect, collects and retains. No benefits other than the residual death payment, which in virtually all cases will either not be due or not be claimed because of the survivor’s lack of knowledge, can be payable by the railroad retirement system with respect to the wage records on which these contributions are based. Year-by-year projections of the estimated operation of the railroad retirement program were presented during the hearings only for the old law and for H.R. 3669 as introducedJ5 Under the old law the benefit disbursements for the calendar year 1952 were estimated at $357 million, which represents 55 percent of the estimated contribution income of $649 million. Under H.R. 3669, as introduced, the estimated benefit disbursements for 1952 were $460 million, or 62 percent of the estimated contribution income of $739 million (an increase from the contribution income under the previous law because of the higher maximum taxable wage base). For the