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Here's The UTUs Take On It
Author: George Nice-ee
Date: 04-17-2012 - 17:30
April 16, 2012
From: James Stem and John Risch
Re: Railroad Retirement and the Ryan Budget
During the past few days, we have received many calls and concerns about a provision contained in the House Report 112-421 that accompanied the Budget Resolution. The Republican Budget Resolution sponsored and authored by Paul Ryan of Wisconsin passed the House on March 29, 2012 with a vote of 228 for and 191 opposed. There have been hundreds of email messages circulating concerning this Budget Report.
The House Report contains a paragraph on page 101 of the 222 page House Report, contained in the section on Mandatory Spending that reads:
"Conform Railroad Retirement Tier 1 Benefits to Social Security Benefits. Tier 1 benefits for railroad retirees are supposed to mimic Social Security benefits, but they are more generous than Social Security in many ways. This option would conform Tier 1 so that its benefits would equal those of Social Security, with an estimated savings to taxpayers of $2 billion over 10 years."
Our Railroad Retirement system now pays out more than $10 Billion each year in benefits to our retirees and survivors. The Railroad Retirement account pays 100% of the cost of all Tier 1 benefits above what Social Security benefits pay, with the result that the taxpayers do not have any money involved with the Tier 1 portion ("operation" should be deleted) of the Railroad Retirement System.
We are working with all of labor and the railroads to communicate this message to the Budget Committee members, and all of Congress. This is the third time this Congressional Session that the Republican leadership in the House has indicated they wanted to make some unilateral changes in the Railroad Retirement system: (1)Chairman Darrell Issa made comments that the taxpayers were funding two separate retirement systems and SS and RRB should be consolidated, (2) Chairman John Mica introduced an Amtrak Privatization Bill that would have removed more than 19,000 employees from paying into Railroad Retirement, and (3) Chairman Paul Ryan placed this language contained in the House Report on the Republican Budget Resolution.
Since Tier 1 benefits and Social Security benefits are today Conformed as to the expense of the Social Security System, we are working to insure that this provision remains as is, just language in the House Report.
Please contact us if we can share additional information.
James Stem
National Legislative Director
United Transportation Union
304 Pennsylvania Avenue, SE
Washington, DC 20003-1147
From: James Stem and John Risch
Re: Railroad Retirement and the Ryan Budget
During the past few days, we have received many calls and concerns about a provision contained in the House Report 112-421 that accompanied the Budget Resolution. The Republican Budget Resolution sponsored and authored by Paul Ryan of Wisconsin passed the House on March 29, 2012 with a vote of 228 for and 191 opposed. There have been hundreds of email messages circulating concerning this Budget Report.
The House Report contains a paragraph on page 101 of the 222 page House Report, contained in the section on Mandatory Spending that reads:
"Conform Railroad Retirement Tier 1 Benefits to Social Security Benefits. Tier 1 benefits for railroad retirees are supposed to mimic Social Security benefits, but they are more generous than Social Security in many ways. This option would conform Tier 1 so that its benefits would equal those of Social Security, with an estimated savings to taxpayers of $2 billion over 10 years."
Our Railroad Retirement system now pays out more than $10 Billion each year in benefits to our retirees and survivors. The Railroad Retirement account pays 100% of the cost of all Tier 1 benefits above what Social Security benefits pay, with the result that the taxpayers do not have any money involved with the Tier 1 portion ("operation" should be deleted) of the Railroad Retirement System.
We are working with all of labor and the railroads to communicate this message to the Budget Committee members, and all of Congress. This is the third time this Congressional Session that the Republican leadership in the House has indicated they wanted to make some unilateral changes in the Railroad Retirement system: (1)Chairman Darrell Issa made comments that the taxpayers were funding two separate retirement systems and SS and RRB should be consolidated, (2) Chairman John Mica introduced an Amtrak Privatization Bill that would have removed more than 19,000 employees from paying into Railroad Retirement, and (3) Chairman Paul Ryan placed this language contained in the House Report on the Republican Budget Resolution.
Since Tier 1 benefits and Social Security benefits are today Conformed as to the expense of the Social Security System, we are working to insure that this provision remains as is, just language in the House Report.
Please contact us if we can share additional information.
James Stem
National Legislative Director
United Transportation Union
304 Pennsylvania Avenue, SE
Washington, DC 20003-1147
