Viewing page 84 of 102

This transcription has been completed. Contact us with corrections.

March 21, 1949

Mr. Clarence N. Sayen
1320 North Prairie Avenue
Dallas, Texas

Dear Mr. Sayen:

The draft bill for the air line pilot retirement system ought to be revised if there is any possible situation which is not covered by its provisions. The bill, of course, cannot, in its direct language, describe all the combinations of circumstances which may occur, but it does need provisions which, in combination, will furnish the answers. I have some trouble in understanding your example.

My difficulty comes about from your use of the word "retires". "Retire" is ordinarily reserves to cases of either retirement on pension or compulsory retirement at some fixed age, such as 70, without a pension. In this case, the context indicates that the pilot is under 60; therefore, the use of the word would normally mean retirement on pension. Mere two situations may arise. The pension may be granted under the provisions or Sections 2(a)2 or 2(a)7. In the case of one which arises under 2(a)2 the pension will be $200 a month, since your expression "loses his employment relationship" after retirement implies that there was such a relationship at retirement. Therefore, the provisions of Section 3(d) apply. An annuity granted under 2(a)2 continues for life (any rights which the pilots has must be relinquished at age 60 as a condition of continuance after that age), or until recovery and offer of his pilot's job by the employer (Section 2(c)). If the pilot in this case did not recover sufficiently to go back to flying and he became permanently and totally disabled for all kinds of employment, he would of course continue to get the $200 a month. Subsequent permanent total disability would be irrelevant. If he did recover and he was permitted to fly by both the CAA and the employing company and he refused to return to service as a pilot, he would thereupon lose his annuity; his employment relationship would have, of course, been terminated. If, after that refusal, he would be entitled to an annuity under Section 2(a)6. That annuity would be based on this service and credited compensation alone; the minimum would not apply since Section 2(a)6 is not mentioned in Section 3(d).

The second situation would involve grant of an annuity under Section 2(a)7. That would have been on relinquishment of rights the time