Viewing page 79 of 102

This transcription has been completed. Contact us with corrections.

-58-

79. Q. Last month I was paid for my service as a pilot $742.58. How much would I have paid in taxes if the plan had been in effect?

A. $57.55.

80. Q. What agency of the Government is responsible for collecting the tax?

A. The Bureau of Internal Revenue.

81. Q. Does the employer pay the taxes withheld from the pay of pilots to the Bureau of Internal Revenue as soon as collected?

A. No. The Bureau of Internal Revenue is authorized to make regulations covering the collections of taxes. On all employment taxes at the present time the Bureau requires employers to make quarterly returns of taxes, both of those withheld from the pay of pilots and those levied on employers themselves on the basis of their pilot payrolls.

82. Q. Would the 7.75 per cent taxes for the pilots' retirement system be in addition to those which the air line companies and pilots now pay for the old age insurance provisions under Social Security?

A. Yes.

83. Q. If I quit my job as an air line pilot, will the taxes I pay under the air line pilots' retirement contributions act be refunded to me?

A. No. If you leave you will retain rights to an annuity under the air line pilots' retirement system (see questions 7, 14 and 15), and your survivors will normally be entitled to a lump sum or to annuities in case of your death, either before or after your own annuity begins (see questions 42 and 58 to 67).

Relation of the Air Line Pilots'
Retirement System and other Retirement Systems

84. Q. Would the air line pilots' retirement act remove air line pilots from the coverage of the old age survivors insurance system under the Social Security Act?

A. No. Air line pilots would continue under Title II of the Social Security Act and would pay social security taxes as at present. (See questions 36 and 82).

85. Q. Is the retirement annuity under the air line pilots' retirement system to be paid in addition to the insurance payment under Title II of the Social Security Act?

A. Yes. The primary insurance benefit under Title II of the Social Security Act is payable, of course, only upon the retirement of the individual entitled, at or after 65.

86. Q. I am employed by an air line which has a retirement benefit plan handled by an insurance company. I contribute about 7 1/2 per cent of my pay, under this company plan. Will the company plan be continued if the pilots' system is established.