Disability Insurance for Railroad Workers

T H E P R O M I N E N C E given i n recent months to pro posals for the establishment of a comprehensive system of d isabi l i ty insurance emphasizes the distinction i n t h a t respect between the Rai l road Retirement A c t and old ago and survivors insurance under the Social Security A c t . W h i l e bo th provide protection to workers who w i t h d r a w permanently from the labor m a r k e t a t or after age 65, cither voluntari ly or because of physical handicaps, the former provides addit ional protect ion, under certain conditions, to ra i l road workers who are forced to retire f rom gainful employment before age 65 because of illness or i n j u r y . B y means of such disabi l i ty benefits, which the rai lroad worker enjoys in common w i t h employees covered by nearly all ret irement systems i n the country except Federal old ago and survivors insurance, addit ional security is offered the ind iv idua l through the part ia l ad justment of the ret irement age to his state of health and his a b i l i t y to continue work ing . I n the rai lroad industry the presence of a relatively largo number of o ld , long-service employees and of employees w i t h impaired efficiency, the risks of serious and costly accidents inherent i n their continued employment, the need for m a i n taining an efficient, l oya l , and steady w o r k i n g force through the provision of promot ional opportunities for younger employees and, a t the same t ime, prov id ing a measure of security for displaced older employees—all these factors led to an early recognit ion of the security problem not only of the superannuated, b u t also of the i n capacitated, rai lroad worker . L o n g before the passage of the Rai l road Ret irement Ac t , most of the i m p o r t a n t railroads i n the country had company pension plans i n operation, under which re t irement was usually compulsory a t ago 70 and vo luntary at ago 65, w i t h 20 or 25 years of continuous service as the most common requirement. M o s t of the plans also provided for d isabi l i ty pensions payable irrespective of ago, generally after 20, 25, or 30 years of continuous service. Permanent and to ta l d isabi l i ty benefit plans had also been established b y a number of the ra i lway