Senators Hatch and Baucus
Introduce Rail Retirement Bill in United States Senate
Senators Orin Hatch of Utah and Max Baucus of Montana on April 4 introduced the
Railroad Retirement bill in the Senate, legislation that is strongly supported
by rail management, labor and a bi-partisan coalition of lawmakers.
S.
697 - A bill to modernize the
financing of the railroad retirement system and to provide enhanced benefits to
employees and beneficiaries.
"This is a critical bill for railroad retirement participants and for the
future of the railroad industry," said Hatch, a senior member of the Senate
Finance Committee. "I fully expect, based on the strong bipartisan support
for this legislation, to see this bill signed into law this year."
Baucus, who is the ranking Minority Member on the Finance Committee, said he
"intends to work closely with Senators on both sides of the aisle to make
sure railroad retirement reform becomes a reality this year." He noted that
legislation would "boost benefits for retirees and workers, reduce the tax
burden on the industry and strengthen the financial structure of the
program."
The bill would increase benefits for widows, reduce the retirement age for
workers with 30 years of service, and cut in half the time needed to vest in the
program. The bill would, for the first time, allow the railroad pension to be
invested like other industry pensions, in a mix of public and private
securities.
"Thanks to the leadership of Senators Hatch and Baucus, this legislation
will provide railroad retirees and their families with a better, more secure,
future," said Ed Hamberger, President and CEO of the Association of
American Railroads, noting that current restrictions on the fund "make
about as much sense as requiring investment in a passport savings account.
"By permitting the investment of some of those funds in a diversified
portfolio of private equities, bonds and government securities, this legislation
gives railroad employees the same investment opportunities enjoyed by other
private industries," said Hamberger
