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-3- would like to see a good retirement system formulated for other employees on the air lines and would help in every way possible toward that end, they cannot very well take the lead without jeopardizing the chances for a system which would meet their own problem. The cost of a retirement system ------------------------------- The tax rate for the support of the railroad retirement system is now set at 5 3/4 percent of creditable pay each for railroad workers and the railroads, and will reach 6 1/4 percent in 1952. The average age of railroad employees upon retirement has been over 65 and probably will not fall much below 65, even under the recently adopted amendments. The average age of pilots on retirement would be far lower than for the railroad workers. It is estimated that contributions of about ten percent of the creditable payroll would be required both from employers and the pilots. In the United Air Lines own plan, the pilots contribute 9 percent of that part of their pay which is in excess of $250 a month; on other airlines the contributions of pilots run from 5 to 8 percent on pay over the social security level. In the case of the Eastern Air Lines the Company contribution is, at the present time, probably larger than ten percent of the payroll of pilots of 3 or more years service. For the other companies the employer contribution is probably smaller but will tend to rise. In substantial degree, existing air line company contributions are ineffective because they are not producing any substantial changes in the attitudes of pilots. Larger contributions could, in these circumstances, be very economical. The Line Up ----------- At the present time it appears reasonable to expect that a proposal for an Air Line Pilots Retirement System would receive the support not only of the pilots themselves through their Association, but from the American Federation of Labor, the Congress of Industrial Organizations, the Railway Labor Executives Association, and the air line labor organizations, other than the pilots. There is a good chance that the bill would be supported by the Colonial Air Lines and perhaps by one other employer in the air transport field. Undoubtedly the majority of the air line companies will oppose the bill. Within the Government support has been or will be sought from the Civil Aeronautics Board, the Civil Aeronautics Authority, the Federal
