[Congressional Record Volume 140, Number 146 (Saturday, October 8, 1994)]
[Extensions of Remarks]
[Page E]
From the Congressional Record Online through the Government Printing Office [www.gpo.gov]


[Congressional Record: October 8, 1994]
From the Congressional Record Online via GPO Access [wais.access.gpo.gov]

 
                       RAILROAD RETIREMENT BOARD

                                 ______


                               speech of

                      HON. WILLIAM F. CLINGER, JR.

                            of pennsylvania

                    in the house of representatives

                       Thursday, October 6, 1994

  Mr. CLINGER. Mr. Speaker, railroads played a vital role in the 
dawning of the industrial age in America, and no other State's history 
and heritage have been enriched more by the rail industry than 
Pennsylvania's.
  During the late 1800's and early 1900's, hundreds of miles of 
railroad tracks stretched across Pennsylvania, allowing merchants to 
ship freight and transport passengers in and out of the State. The 
birth of mass production in America created enormous demands for 
Pennsylvania coal, iron, and steel, and these industries relied heavily 
on the railroad network to move their goods to manufacturers in St. 
Louis, Chicago, New York, and other areas of the country.
  Aside from serving as the lifeline of Pennsylvania commerce, the rail 
industry employed thousands of hard-working Pennsylvanians as 
engineers, operators, mechanics, and railyard workers. Many employees 
were immigrants or first- and second-generation Americans whose parents 
and grandparents left England, Ireland, Germany, or Eastern Europe in 
search of opportunity and prosperity.
  Working for the railroad was not always easy or pleasant. 
Pennsylvania railroad employees toiled through the high times and 
economic growth of the Industrial Revolution; endured the bitter 
clashes between labor and management; and witnessed the decline of the 
rail industry as automobiles, highways, and other technological 
advances provided alternative modes of transportation.
  Today, thousands of railroad employees, retirees, and their families 
still live in Pennsylvania. Over the past year, I've heard from a great 
number of them in my district who are worried the railroad retirement 
system will be dismantled and their hard-earned benefits put at risk.
  Indeed, proposals to eliminate the Railroad Retirement Board have 
surfaced a number of times over the past several years. Most recently, 
Vice President Gore's National Performance Review recommended 
eliminating the Board and transferring its functions to other Federal 
agencies. Under the proposal, retirement benefits would be administered 
by the Social Security Administration, unemployment benefits would 
become the responsibility of State unemployment agencies, and sickness 
benefits would be managed by Medicare.
  While I wholeheartedly support the goals of Vice President Gore's 
National Performance Review to make Government work better and cost 
less, I fail to see any justification for dismantling the Board. I do 
not believe the proposal will increase Government efficiency or save 
the American taxpayers money.
  The Railroad Retirement Board was established in 1934 to protect the 
solvency of rail industry pension programs during the Great Depression. 
The Board oversees the railroad retirement system and its trust funds 
which are financed by payroll taxes levied on railroad employers and 
employees. Over the past 60 years, millions of railworkers have paid 
into the system with expectations of receiving retirement, sickness, 
disability, and survivor benefits when and if they are needed.
  Although the Clinton administration's intentions to eliminate 
Government waste may be genuine, its recommendation to dissolve the 
Board is misguided. Since the cost of the railroad retirement system is 
borne by the rail industry, elimination of the Railroad Retirement 
Board will not yield any savings for American taxpayers. Instead, 
dismantling the railroad retirement system may only make it more 
burdensome for railroad workers and their survivors to get the benefits 
they have paid for and need.
  Mr. Speaker, today I am introducing a resolution expressing the sense 
of the House of Representatives with respect to preserving the Railroad 
Retirement Board and the railroad retirement system. Realizing the 103d 
Congress will soon come to a close, I fully intend to reintroduce the 
measure at the beginning of the 104th Congress. Nevertheless, I 
encourage my colleagues to demonstrate their support for railroad 
workers and their families by joining me as a cosponsor of this 
resolution.

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