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72. Q. When the pilot is survived by a widow of over 60 or other survivors entitled to immediate annuities, when do such annuities start? 

A. Any such annuity would begin with the first of the month in which the pilot died. 

73. Q. Under what circumstances do survivor annuities stop other than with the death of the recipient or attainment of age 21 by the children? 

A. Annuities stop with the end of the month in which (a) a widow remarries; (b) a child under 21 gets married; (c) a window under 60 ceases permanently to have in her care a child of the deceased pilot who is eligible for a child's annuity; or (d) a parent in recipient of a parent's annuity remarries. 

74. Q. Are survivor annuities ever reduced for any reason? 

A. Yes. An amount equal to one month's annuity will not be paid with respect to any month in which (a) a child or male parent is employed by an air line company, or (b) a widow ceases temporarily to have in her care a child of the deceased pilot who is eligible for a child's annuity. 

Financial Arrangements

75. Q. Who pays for the annuities? 

A. The payments are made out of an air line pilots' retirement trust fund in the United States Treasury. 

76. Q. How does the money get into the air line pilots' retirement trust fund?

A. The money in the air line retirement trust fund is appropriated by Congress out of any monies in the Treasury not otherwise appropriated. The measure of the amounts to be appropriated, however, is the amount of taxes received by the Treasury under the air line pilots' retirement contributions act. 

77. Q. What does the air line pilots' retirement contributions act provide for? 

A. The air line pilots' retirement contributions act provides for a tax on pilots and a tax on employers. The tax on pilots is equal to 7.75 per cent of the pilot's compensation not exceeding $12,000 in any calendar year. The tax paid by employers is the same as the total taxes paid by all the pilots in the employ of the employer. 

78. Q. Suppose I receive $1200 a month as a pilot. Would tax be collected on the whole $1200? 

A. The tax would be collected on not more than $12,000 in any single calendar year. If you received $1200 in each month during the year, the tax would be collected for the first 10 months unless the employer decided that he would deduct the tax in equal monthly installments. If you left the employer's service after drawing $12,000 or more but before the employer had collected the tax on the $12,000, the employer would be liable for the tax even though he had not deducted it from your pay.