12.05.01

Railroad Retirement Reform Bill Passes Senate

WASHINGTON, DC - U.S. Senator Maria Cantwell (D-Wash.) today announced that the Senate passed by unanimous consent the Railroad Retirement and Survivors' Improvement Act of 2001. The bill, which Cantwell cosponsored and was supported by both the railroad industry and its employees, will allow for the reduction of railroad taxes on rail companies and employees, while providing for substantial improvements in the benefits paid to railroad employees and their families.

"This is an important piece of legislation for railroaders and their families. Railroaders can now retire knowing they are economically secure," Cantwell said.

The legislation will also lead to several benefit improvements for retirees:

Widowed spouses will now receive 100% of their loved one's annuity. Currently, spouses collect only 50% of the annuity. Employees with 30 years of service will now be allowed to retire at the age of 60 with full benefits. The previous early retirement age was 62. Employees with five years of service will be vested into the retirement program. Current regulations require 10 years of service before vesting.