U.S. Sens. Chris Coons (D-DE) and Josh Hawley (R-MO) have introduced legislation that would modernize federal law to protect earned railroad retirement benefits.
The Railroad Retirement Fairness Act would eliminate a provision to federal law that reduces railroad retirement payments for certain retirees and their spouses who continue working in non-railroad jobs after retirement. Currently, railroad retirees and their spouses face reductions in their retirement benefits if they continue to work for the non-railroad employer they had before retirement. The rule can force retirees and spouses to leave jobs they want to keep or to switch employers, simply to avoid losing earned benefits.
“When I heard from Delawareans that their retirement benefits were being reduced simply because they or their spouses continued working after retiring from a long railroad career, I knew we had to do something in Washington,” Coons said.
Officials said the railroad retirement system provides retirement benefits via a two-tier structure. Tier I benefits are similar to Social Security, while Tier II benefits function like a private pension. Current law reduces some Tier II benefits if a retiree or spouse continues to work for their non-railroad employer, even if a retiree who takes on a different job after retirement would not face the same penalty.
The bill is endorsed by the Transportation Trades Department (TTD) of the AFL-CIO, the Brotherhood of Maintenance of Way Employees Division (BMWED) of the Teamsters, the International Association of Machinists and Aerospace Workers (IAM), and the Transportation Communications Union (TCU).
“LPE work restrictions punish railroad retirees for working, caring for family, or staying productive long after they’ve earned their benefits,” IAM Rail Division member Dave Tackett said. “The policy is outdated, inconsistent, and unfair, and it treats railroad workers worse than every other American retiree. It’s time to remove it. I want to thank our bipartisan, bicameral group of officials for championing the removal of this unfair deduction.”
Companion legislation was introduced in the House by U.S. Reps. Chris Deluzio (D-PA) and Troy Nehls (R-TX).