(File Photo of Congressman Chris Deluzio)

Noah Haswell, Beaver County Radio News

(Washington, D.C.) Congressmen Chris Deluzio (D-PA-17) and Troy Nehls (R-TX-22) introduced the Railroad Retirement Fairness Act in Washington D.C. yesterday that would eliminate an outdated provision in federal law which unfairly reduces railroad retirement payments for certain retirees and spouses who continue working in non-railroad jobs after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. U.S. Senators Chris Coons (D-DE.) and Josh Hawley (R-MO) introduced companion legislation in the Senate. 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 under current law. 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. 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. According to a release from Deluzio’s office, 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. 

The bill is endorsed by 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.