[Congressional Record Volume 142, Number 14 (Thursday, February 1, 1996)]
[Senate]
[Pages S738-S739]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DASCHLE:
  S. 1552. A bill to amend the Railroad Retirement Act of 1974 to 
prevent the canceling of annuities to certain divorced spouses of 
workers whose widows elect to receive lump sum payments; to the 
Committee on Labor and Human Resources.


             the railroad retirement amendment act of 1996

  Mr. DASCHLE. Mr. President, today I am introducing legislation on 
behalf 

[[Page S739]]
of Valoris Carlson of Aberdeen, SD, and the handful of others like her 
whose lives have been terribly disrupted. This legislation will right a 
wrong that was not due to any error or deception on Valoris' part, but 
due to an administrative error by the Railroad Retirement Board [RRB].
  In 1984 Valoris, as the divorced spouse of a deceased railroad 
employee, applied for a survivor's pension. The RRB failed to check if 
a lump sum withdrawal had previously been made on the account at the 
time of her former spouse's death--even though Valoris clearly stated 
on her application that there was a surviving widow. In fact, a lump 
sum payment had been made, but not identified. The RRB began paying 
Valoris $587 per month in 1984 and continued to pay her benefits for 11 
years. Only recently did they discover that an error had been made over 
a decade ago.
  Not until 1995 was Valoris told she was not eligible for the pension 
she was awarded in 1984. Had the RRB reviewed their records, they would 
have seen that a lump-sum payment had been made on that account. 
Valoris, who was married for 26 years, lost her eligibility to the 
widow of the railroad worker who had been married to him for only 3 
years. Valoris made an honest application for benefits. The RRB failed 
to do their job properly, resulting in 11 years of ``overpayments'' to 
Valoris.
  These payments affected Valoris' planning for the future. Valoris 
planned her retirement on that modest sum of $587. Had she been told 
she was not eligible for benefits, she would have worked longer to 
build up her own Social Security benefits. Her railroad divorced 
widow's pension has been her only steady income. She has picked up a 
few dollars here and there by renting out rooms in her home, but 
without her pension income, Valoris does not know how she will live.
  The bill I am introducing today will address the errors made by the 
RRB that have disrupted the life of Valoris Carlson and others like 
her. The RRB advises that 17 other widows are similarly situated, and 
their pensions would also be restored by this bill.
  The bill, which was developed with technical assistance from the RRB, 
would allow the 18 women impacted by the RRB's administrative error to 
begin receiving their monthly benefits again. It requires them to repay 
the lump sum, but they are allowed to do so through a marginal 
withholding from their monthly benefit. The monthly withholding can be 
waived if it would cause excessive hardship for a widow.
  Mr. President, I will work to enact this legislation as quickly as 
possible to restore the benefits to those women who are now suffering 
as a result of the Government's mistakes. There is no excuse for 
further delay in providing these Americans with benefits they were led 
to expect by the RRB.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Railroad Retirement 
     Amendment Act of 1996''.

     SEC. 2. PROTECTION OF DIVORCED SPOUSES.

       (a) In General.--Section 6(c) of the Railroad Retirement 
     Act of 1974 is amended--
       (1) in the last sentence of paragraph (1), by inserting 
     ``(other then to a survivor in the circumstances described in 
     paragraph (3))'' after ``no further benefits shall be paid''; 
     and
       (2) by adding at the end the following:
       ``(3) Notwithstanding the last sentence of paragraph (1), 
     benefits shall be paid to a survivor who--
       ``(A) is a divorced wife; and
       ``(B) through administrative error received benefits 
     otherwise precluded by the making of a lump sum payment under 
     this section to widow;

     if that divorced wife makes an election to repay to the Board 
     the lump sum payment. The Board may withhold up to 10 percent 
     of each benefit amount paid after the date of the enactment 
     of this paragraph toward such reimbursement. The Board may 
     waive such repayment to the extent the Board determines it 
     would cause an unjust financial hardship for the 
     beneficiary.''.
       (b) Application of Amendment.--The amendment made by this 
     section shall apply with respect to any benefits paid before 
     the date of enactment of this Act as well as to benefits 
     payable on or after the date of the enactment of this Act.
                                 ______