[Congressional Record (Bound Edition), Volume 147 (2001), Part 17]
[Senate]
[Page 23505]
[From the U.S. Government Publishing Office, www.gpo.gov]



                       RAILROAD RETIREMENT REFORM

  Mr. NELSON of Nebraska. Mr. President, I rise today in support of the 
Railroad Retirement and Survivors' Improvement Act of 2001.
  For years, our Nation's railroad workers have played a vital role in 
moving commerce and passengers around this country, and it is my belief 
and hope that America will benefit from their hard work for years to 
come.
  This bill is designed to strengthen the Railroad Retirement System 
and ensure that these men and women who have helped build, run, and 
maintain our railroads, have adequate resources to care for themselves 
and their families when they finally complete their years of hard 
labor.
  The current system, which has been around for over 65 years, 
currently serves more than 690,000 retirees and their family members, 
and more than 245,00 active employees.
  Because the Railroad Retirement System, unlike other industry pension 
plans, is funded by payroll taxes on employees, it is easy to see why 
this program, that pays retirement benefits to almost three times as 
many people as there are paying for those benefits, is in desperate 
need of reform.
  Most Americans are concerned about the future of Social Security for 
similar reasons--because the number of retirees in America will greatly 
increase in the coming years as baby boomers retire. Well, the problem 
for Railroad Retirement is here and now, and so is the right time for a 
commonsense solution.
  Railroad Retirement has always been restricted to investing only in 
government securities, and while this may have been a good policy 65 
years ago, it does not make sense in today's economy.
  Because of this policy, the system's annual average investment return 
has been far lower than that of private multiemployer pension plans.
  This bill would solve that problem by allowing Railroad Retirement to 
be operated more like a private pension plan, by establishing a private 
trust in which assets of the system can be invested in various ways, 
including private securities.
  Moreover, the legislation would shift greater responsibility to the 
railroad industry, and away from the government, to ensure adequate 
funding of the system.
  Better financing means enhanced returns to provide for an improved 
benefit structure for Railroad Retirement beneficiaries.
  These benefits would include a lowering of the incredibly high 
payroll taxes currently paid by railroad workers and employers; a 
lowering of the retirement age for those with 30 years of service to 
age 60; reducing the vesting period in the system from 10 years to 5; 
and improving the benefits paid to widows and widowers.
  All of these improved benefits are desirable reforms, and they can be 
achieved without compromising the solvency of the system, which the 
Railroad Retirement Board's actuary has projected out to 75 years under 
this legislation.
  Because this legislation is the right solution at the right time, it 
has received overwhelming bipartisan support in both Houses of 
Congress.
  Last year, when the bill was first introduced, it was approved on the 
floor of the House by a vote of 391-25, and had the support of 80 
Members in the Senate. However, after it was reported favorably by the 
Finance Committee, it never made it to the Senate floor.
  After its reintroduction in the current Congress, the bill has again 
been approved by a landslide on the floor of the House, and now awaits 
action here in the Senate, where it has enjoyed the support of 74 
cosponsors.
  I urge your continued support of this legislation, and speedy passage 
of the reform that railroad workers and their families throughout this 
country so badly deserve.
  Mr. President, I suggest the absence of a quorum.
  The PRESIDING OFFICER (Mr. Johnson). The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mr. THOMAS. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  Mr. THOMAS. Mr. President, I ask unanimous consent to speak in 
morning business for 10 minutes.
  The PRESIDING OFFICER. The Senator is recognized for 10 minutes.

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