Reps. Nehls, Deluzio, and Sens. Coons and Hawley Introduce the Railroad Retirement Fairness Act

WASHINGTON, D.C. -Today, Congressman Troy E. Nehls (R-TX-22), Congressman Chris Deluzio (D-PA-17), alongside Senator Josh Hawley (R-MO) and Senator Chris Coons (D-DE), introduced the Railroad Retirement Fairness Act. This bipartisan, bicameral legislation would eliminate an outdated provision in federal law, which unfairly reduces railroad retirement payments for certain retirees and spouses who continue working in non-railroad jobs after retirement.

Under current law, railroad retirees and their spouses face a reduction in their retirement benefits if they continue working for their last prior non-railroad employer before retirement. That current rule can force retirees and spouses to leave jobs they want to keep or switch employers, simply to avoid losing benefits they earned.

"Retired railroad employees shouldn't be penalized for continuing to work after their retirement to supplement their income or to stay active in their communities," said Congressman Nehls. "I'm proud to join my colleagues in the House and Senate to eliminate the current provision that punishes hardworking railroad workers for continuing to work after their retirement, and ensure these men and women keep their rightfully earned retirement benefits."

"People shouldn't be locked out of their earned benefits if they want or need to keep working after retirement," said Congressman Deluzio. "Unfortunately, that is what is happening now to thousands of American railroad workers. The Railroad Retirement Fairness Act is a bipartisan effort to level the playing field and make it so railroad retirees and their spouses can work non-railroad jobs without sacrificing their earned retirement benefits."

"Railroad workers are losing out on their hard-earned retirement benefits due to outdated laws that penalize work," said Senator Hawley. "Congress must act now to protect retirees and ensure they receive the pensions they were promised for their service to our nation's rail system."

"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," said Senator Coons. "Too often our outdated systems are stacked against workers, that's why I'm fighting for Delaware's workers every day to make our economy fairer through bills like this one."

The railroad retirement system provides benefits to rail employees through 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 based solely on whether a retiree or spouse continues working for the same non-railroad employer they had before retirement, even though a retiree who takes a different job after retiring would not face the same penalty.

The Railroad Retirement Fairness Act would:

• Eliminate the arbitrary "last prior employer" deduction;
• Allow railroad retirees and their spouses to continue working in non-railroad jobs without losing earned retirement benefits; and
• Ensure more equal treatment for retirees regardless of where they choose to work in retirement.

This legislation is endorsed by the Transportation Trades Department (TTD) of the AFL-CIO, the Transportation Communications Union, the International Association of Machinists and Aerospace Workers (IAM), and the Brotherhood of Maintenance of Way Employees Division of the Teamsters.

"For far too long, outdated LPE rules have unfairly penalized railroad retirees who simply want to remain active, support their families, or contribute to their communities," said IAM Union International President Brian Bryant. "The common-sense, bipartisan Railroad Retirement Fairness Act is about restoring dignity, fairness, and economic opportunity for retired railroad workers who have already earned their benefits."

"LPE work restrictions punish railroad retirees for working, caring for family, or staying productive long after they've earned their benefits," said IAM Rail Division member Dave Tackett. "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."

"We are grateful to Senators Coons and Hawley as well as Congressmen DeLuzio and Nehls 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."

"Railroad retirees should not be discouraged from working or supporting their families after a lifetime of service," said Transportation Communications Union (TCU/IAM) National President Matt Hollis. "Fixing the LPE rule is a long-overdue and commonsense step toward fairness and ensures these workers are treated with the same respect as every other American retiree."

"As America's largest transportation labor federation, representing the entirety of rail labor, we are grateful to Senators Coons and Hawley as well as Congressmen DeLuzio and Nehls for introducing this common-sense legislation that will give railroad retirees the full value of their benefits," said Greg Regan, President of the Transportation Trades Department, AFL-CIOD. "Railroaders and their spouses should not be penalized with benefits deductions simply for continuing to support their families after retirement. This legislation is long overdue, and puts hard-earned money back into the pockets of rail retirees."

Read the Railroad Retirement Fairness Act here.