The Ryan budget passed last March contained a provision calling for legislation to reduce railroad pensions to conform to Social Security benefits as Railroad Tier I benefits "are more generous than Social Security benefits in many ways." The considered pension changes are expected to save taxpayers $2 billion over 10 years.
This claim of taxpayer saving is false. The excess Railroad Tier I benefits are paid out of the Tier II Trust Fund, which consists of contributions from railroad employees and employers. The U.S. government doesn't pay for such benefits, so there wouldn't be any savings to taxpayers.
This idea to reduce railroad pension benefits appears to be a hidden Republican agenda to reduce railroad retiree income available to oppose any Republican initiative not in favor with railroad retirees.
Although no pension reduction legislation has been introduced, railroad retirees must be vigilant and ready to actively oppose any such legislation.
Melvin Fees
Cresson
