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February 4, 1949

SUGGESTED CHANGES IN DRAFT BILL

1. In subsection (e) of section 3, strike the language after the semicolon in line 5 (beginning "(i) divide the compensation paid", etc.) and ending with the figure "83-1/3" in line 7, and substitute the following:

"(A) for a pilot whose compensation in 1948 was based wholly on a stipulated rate or rates of compensation for fixed units of time, divide the total compensation paid to such pilot in the calendar year 1948 by the number of months with respect to which such compensation was paid; (B) for a pilot, the amount of whose compensation in each month of service in 1948 was dependent in whole or in part upon the number of flight hours, (i) divide the total compensation paid to such pilot with respect to pay periods in 1948 by the number of flight hours in such year, and (ii) multiply the quotient in (i) by 83-1/3; (C) for a pilot, the amount of whose compensation in some months of service in 1948 was based wholly on a stipulated rate or rates of compensation for fixed units of time and whose compensation in other months was dependent in whole or in part on the number of flight hours, (i) divide the compensation paid to such pilot with respect to the months in 1948 in which the amount thereof was dependent in whole or in part on the number of flight hours by the number of such hours of such pilot in such months; (ii) multiply the quotient in (i) by the product of the number of months used in (i) times 83-1/3; (iii) add the product in (ii) to the compensation paid to such pilot with respect to the months in 1948 in which the amount of such compensation was based wholly on a stipulated rate or rates of compensation for fixed units of time; and (iv) divide the sum in (iii) by the months of service in 1948."

Comment: The above language is intended to cover cases of pilots who receive a stipulated salary, pilots who are paid on the basis of flight hours, pilots whose compensation for part of the time may be based on salary and part on flight hours. It will not produce completely satisfactory results in cases where several months are split between a salary basis and a flight-hours basis. If there is only one month so split it will probably all right, and it is assumed that only in extremely rare cases will there by more than one month where a man is on straight salary for a week or two and on a flight-hours basis for the rest of the month. The language is complex enough as it is, and it would have to be about twice as complex if we tried to deal with the split situation.

2. In subsection (d) of section 3, after the word "annuity" in line 4 insert "pursuant to one of the said paragraphs", so that the last part of the section will read "or who will have become entitled to an annuity pursuant to one of the said paragraphs, based on not less than 20 years of service, shall be less than $200."