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HRD-82-97 1 (1982-07-12)

handle is hein.gao/gaobabmna0001 and id is 1 raw text is:              NiLL   LU




                  UNITED STATES GENERAL ACCOUNTING OFFICE
                             WASHINGTON, D.C. 20648

HUMAN RESOURCES                         July 12, 1982
   DIVISION


   B-208154



   The Honorable Harrison Schmitt
   Chairman, Subcommittee on Labor,
      Health and Human Services, and
      Education                                                  119172
    Committee on Appropriations
    United States Senate

    Dear Mr. Chairman:

         Subject: Relationship of Dual Benefit Windfall Payments to
                   Total Railroad Retirement Benefits (GAO/HRD-82-97)

         On January 28, 1982, you requested that we examine the (1) rela-
    tionship of railroad retirement dual benefit windfall payments to
    the total payments railroad retirement beneficiaries receive and
    (2) potential effect on railroad retirement beneficiaries of reduced
    windfall payments under various appropriation levels. Specifically,
    you asked us to address the following issues:

         1. What would be the effect of various windfall appropriation
             levels on beneficiaries' total benefits and which benefi-
             ciary groups would be most severely affected by across-
             the-board reductions?

         2. To what degree are windfall payments a relatively small
             component of higher-than-average railroad pensions?

         3. What alternatives to across-the-board reductions might
             be used to insure that those most needy will not suffer
             from restrictions of future windfall benefits?

    BACKGROUND

        The railroad retirement program was established in 1937, in-
   dependent of the social security system. Until 1975, it was pos-
   sible for a railroad employee who also had periods of non-railroad-
   related employment to qualify for both railroad retirement and
   social security benefits. These persons (and their spouses and
   survivors) were known as dual beneficiaries.


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                                /711 c~-

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