To Fellow Railroad Employees:

I am writing to request your assistance with introducing legislation to reduce the age and service months requirements necessary for railroad employees and their spouses to receive full Tier I and Tier II retirement benefits.

Under the current railroad retirement system, an employee must have 30 years creditable service (360 months) and be at least age 62 to qualify for full Tier I and Tier II railroad retirement benefits. Starting in the year 2000, changes will be enacted whereby an employee will have to be at least age 65 and have 30 years (360 months) creditable service to qualify for full Tier I and Tier II railroad benefits.

Additionally, under the current railroad retirement system, if an employee should die before reaching retirement age, the spouse of the employee must be at least 59 years of age and disabled, or 60 years of age, or have dependent children under the age of 18 years in order to qualify for full Tier I and Tier II railroad retirement benefits. (After the child turns 19, benefits cease until the spouse meets either of the two preceding criteria).

The aforementioned requirements are in need of change, to say the least.

Under the current railroad retirement system, age requirements will be raised for a railroad employee to meet full Tier I and Tier II railroad retirement benefit requirements. Under the current railroad retirement system, the spouse of a deceased railroad employee could lose everything and be reduced to poverty, public assistance, and an uncertain future if the spouse of a deceased railroad employee is unskilled and in their late 40s or early 50s when the railroad employee dies, because the spouse would have virtually no source of income.

Our work as railroad employees is an extremely physical vocation. If it's 90 degrees in the shade, railroaders are working in the heat. If it's raining, railroaders are working in the rain and if it's 32 degrees or lower, railroaders are working in the freezing cold.

By current legislation, 61-year old railroad employees are working under the conditions I have just mentioned. Starting in the year 2000, 65-year old railroad employees will be working under the same conditions.

We, as railroaders, have chosen our profession and are proud of our work and heritage. That pride, however, does not mean we, as railroaders, have gotten used to working in the elements at all hours. No one does! We do not have heated, air conditioned offices to work in. We do not have kitchen and bathroom facilities located at each job site. We do not want our spouses to be forced to a life of poverty and uncertainty due to the unfortunate event that we die before our spouses qualify for full Tier I and Tier II railroad retirement benefits, and we do not feel that requesting the choice of retiring at a reduced age without revamping the entire railroad retirement system is unreasonable.

We, therefore, request any and all assistance you can provide with the following proposal:

Railroad employees qualify for full Tier I and Tier II railroad retirement benefits at either 55 years of age or 30 years (360 creditable service months), whichever comes first.

The spouse of a railroad employee would qualify for full Tier I and Tier II railroad retirement benefits on the same date that the railroad employee retires or dies, regardless of the spouse's age or medical condition.

The only change to the current railroad retirement system being a reduction in the age requirement for railroad employees, and the change for the spouse of a railroad employee, nothing more.

The benefits of this proposal are as follows:

A life of financial security and dignity for the spouse of a deceased railroad employee instead of a bleak future of uncertainty, poverty and public assistance.

Younger people would fill retiree positions and thus, a younger work force with fewer health problems due to age and thereby a reduction in health care and medical costs.

A younger work force that would still be maintaining the current level of taxation.

Lower railroad retirement Tier I and Tier II benefits being paid out. Under the current system, a railroad employee could very likely have 40 years creditable service before reaching the age requirement necessary to qualify for full Tier I and Tier II railroad retirement benefits.

A reduction in public assistance payouts due to unemployed railroaders returning to work, as well as new hires.

An increase in local, state and federal tax revenues, i.e. new retirees' tax obligations as well as an increase from employed railroaders and new hires returning to work to fill new retirees' vacancies.

An increase in dollars spent locally by new hires, formerly unemployed railroaders and new retirees.

No loss to railroad labor organizations. Approximately the same numeric workforce would be maintained.

No loss of funding to the railroad retirement program. Vacancies created by new retirees would be filled while new retirees would receive lower Tier I and Tier II benefits at 30 years' service or age 55, rather than the projected payments at 62 years' of age or quite possibly 40 years' service.

A savings to railroad companies. Reduced health care and associated medical costs as well as a reduction in wages paid out to new hires.

As stated previously, this proposal could well have a positive impact at state, local, federal, corporate and labor levels. Also, this proposal would not require the entire railroad retirement system to be changed.

Railroad employees under this proposal would simply have the choice of retiring with full Tier I and Tier II railroad retirement benefits at age 55 rather than the current system, and the spouse of a retired or deceased railroad employee would qualify for full Tier I and Tier II railroad retirement benefits earlier than is required under current legislation.

This proposal should not, and does not, mean that the entire railroad retirement system needs to be changed or that the railroad retirement system needs to be adjusted, transferred or changed to the Social Security system in any form or manner. This proposal simply asks for a more reasonable qualification standard for railroad employees and their spouses.

Finally, I am requesting any and all assistance from you in making this proposal a reality for employees of the railroad industry. Is not this same type of system already in place for some state, federal, military and private sector employees? I only ask that I, too, be given the same consideration.

If you agree with this proposal, I urge you to send copies to President Clinton, your Congressmen and your union officers. And, please let me know so we have the numbers to back us up when we contact elected officials for their response and action.

Ronald D. Friend
President - Lodge 741, BMWE
213 Fay Avenue
Marietta, OH 45750