[Congressional Record Volume 140, Number 15 (Tuesday, February 22, 1994)]
[Senate]
[Page S]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: February 22, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
            THE ELIMINATION OF THE RAILROAD RETIREMENT BOARD

 Mr. GORTON. Mr. President, today I rise to voice the concerns 
of the thousands of residents in my home State who were shocked to hear 
about Vice President Gore's proposal to eliminate the Railroad 
Retirement Board and transfer its functions to other Government 
agencies. I, too, was surprised to hear about this proposal when it 
came out in the National Performance Review and consequently, asked 
Washington residents for their opinion on this issue.
  The response I received was incredible. I have heard from thousands 
of Washington State residents who vehemently oppose the elimination of 
the Railroad Retirement Board. The almost unanimous message which came 
through loud and clear is that railroad workers have spent a lifetime 
paying into their retirement system and do not deserve to have their 
benefits jeopardized by transferring them to a new bureaucratic system 
which will not improve on their present system.
  To further illustrate the flawed nature of this proposal, let me 
first provide a little background history about the Railroad Retirement 
Board. The Railroad Retirement Board administers retirement, 
disability, unemployment, and sickness benefits for railroad workers. 
While these benefits are comparable to those administered by Federal 
and State agencies, there are many striking differences which make 
railroad benefits unique to the railroad industry. These are 
differences which cannot be easily merged into other Federal agencies 
without incurring substantial costs.
  It is also very important to note that while the railroad benefit 
system is federally administered by the Railroad Retirement Board, it 
is financed through payroll taxes on the railroad industry. In other 
words, this system pays for itself. Last year the Railroad Retirement 
Board paid out $7.9 billion in retirement and survivor benefits to 
900,000 beneficiaries. It accomplished this with an administrative cost 
of only 1 percent of its annual budget. This system deserves to be 
commended, not dismantled.
  That is why I was deeply concerned when I heard about Vice President 
Gore's National Performance Review proposal to eliminate the Railroad 
Retirement Board. After studying this issue carefully and listening to 
thousands of Washington residents, I understand why railroad retirees 
are so angry to see their system being attacked and am ready to oppose 
these efforts to dismantle the Railroad Retirement Board.
  Fortunately, Vice President Gore has dropped this proposal from his 
agenda for now. This news comes as a great comfort to the 935,000 
beneficiaries of railroad retirement and unemployment benefits who 
reside throughout our Nation. While I fully support the Vice 
President's call to cut government waste, I believe this specific 
proposal was fatally flawed. The Railroad Retirement Board administers 
a system which does not need to be fixed. Its elimination will not save 
taxpayer money, nor will it result in greater efficiency. Furthermore, 
this proposal angers the people of Washington State and as such, I will 
continue to fight any future proposals to eliminate the Railroad 
Retirement Board.

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