The 600,000-member IAM Union (International Association of Machinists and Aerospace Workers) is enthusiastically supporting the newly-introduced, bipartisan Railroad Retirement Fairness Act in the U.S. Senate and House to correct Railroad Retirement benefits for working retirees.
The Railroad Retirement Fairness Act has been introduced in the Senate by U.S. Sens. Chris Coons (D-Del.) and Josh Hawley (R-Mo.) and in the House by U.S. Reps. Deluzio (D-Pa.) and Troy Nehls (R-Texas).
Outdated Last Pre-Retirement Non-Railroad Employment (LPE) rules currently penalize railroad retirees and their spouses long after they’ve earned their retirement benefits. Established almost 90 years ago, the policy no longer reflects the realities of the modern workplace, yet it still reduces hard-earned benefits for railroad retirees and their spouses for taking modest side-jobs or even providing essential caregiving.
Unlike workers covered by Social Security, railroad retirees sometimes face steep Tier II penalties (up to a 50% reduction) even after full retirement age. This creates an unfair system that treats railroaders differently than every other retiree in the country that wants or needs to work after retirement.
The genesis for this legislation came from former IAM Local 1284 President Dave Tackett. Tackett is a locomotive machinist at Amtrak’s Wilmington, Del., shops and also serves as an elected New Castle County Councilmember. When Tackett went to the Railroad Retirement Board (RRB) to discuss his upcoming retirement scenario, the Board informed him that he would face a steep cut to his Tier II benefits – all because of the modest W-2 wages he earns as a public servant and the outdated LPE deduction rule.
This didn’t sit well with Tackett. Why should his railroad retirement benefits be docked simply because he serves as a local elected official? Instead of accepting this, Tackett approached Sen. Coons, who agreed with his analysis of the fundamental unfairness, and then engaged with the IAM Union and Transportation Communications Union (TCU/IAM) Legislative Departments to begin efforts to eliminate this outdated provision.
“It just didn’t make any sense – and I thought to myself, ‘if this is happening to me, how many other railroaders and their spouses are getting treated unfairly?’” said IAM Rail Division member Dave Tackett. “I’m grateful to our elected officials in Washington, D.C. for understanding this fundamental unfairness, and for championing the LPE’s removal.”
Currently, the LPE deduction discourages most part-time work, limits retirees’ ability to fill labor shortages, and punishes families when spouses or caregivers earn even modest income.
LPE rules require complex legal interpretation, causing inconsistent decisions and unnecessary administrative burden for both retirees and the RRB. The original justification for the restrictions no longer applies.
“When our union talks about our members getting active in their own advocacy, this is exactly what we’re talking about,” said IAM Union International President Brian Bryant. “Democracy is not a spectator sport – you have to engage and fight for what’s right. And Brother Tackett’s efforts to eliminate this unfair, outdated provision serves as a perfect example of democracy in action.”
“We are grateful to Senators Coons and Hawley for introducing the Railroad Retirement Fairness Act to address this outdated policy,” said Josh Hartford, IAM Special Assistant to the International President for the IAM Rail Division. “Their work brings long overdue attention to an issue that affects retired railroad workers and their families. Their bipartisan effort represents an important step toward restoring fairness and modernizing the Railroad Retirement system.”
“It’s not uncommon today for railroaders or their spouses to have side jobs: be it working the score board for their local high school football games, picking up a shift at Target, or being a local public servant,” said Transportation Communications Union (TCU/IAM) National President Matt Hollis. “Railroaders work all kinds of jobs to make ends meet – and that should have zero bearing on their hard-earned benefits when they finally retire from the railroad. It’s past-time for Congress to fix this unfair deduction, and our union is proud to help push for the LPE’s removal.”
The post IAM Union-Championed Legislation to Correct Railroad Retirement Benefits for Working Retirees Introduced in U.S. Senate and House appeared first on IAM Union.