On July 13 (as this JOURNAL was going to print) Congressmen Shuster, Oberstar, Petri and Rahall, of the Transportation and Infrastructure Committee of the House of Representatives and Congressmen Archer, Rangell, Shaw and Matsui of the House Ways and Means Committee introduced H.R. 4844 which would enact the retirement "deal" reached by the railroads and rail unions except for the BMWE and the Brotherhood of Locomotive Engineers.

Introduction of the bill has been held up for several months because of the provision enabling the Tier I (Social Security Equivalent Benefit) surplus funds to be invested in private equities. At this point it appears the bill provides that Tier I surplus funds cannot be invested in private equities, although the BMWE is not certain this is true.

It now appears Tier I (SSEB) surplus funds would only be available for (1) payment of benefits; and (2) "to purchase obligations of the U.S. that are backed by the full faith and credit of the U.S. pursuant to chapter 31 of title 31, United States Code"; although such funds are to be transferred "in such manner as will maximize the investment returns to the Railroad Retirement System."

This means there is a bi-partisan consensus on the part of the leadership of the House committees and subcommittees which have jurisdiction over the matter to move this legislation despite the BMWE's strong objections. Such Congressional firepower will be difficult to stop in the House.

Passage of this bill will use railroad workers' money to provide the railroads with a $430 million per year windfall plus half of any future surplus over six times the amount paid out in benefits while giving railroad workers modest benefit improvements with the rest of their money.

In a press release issued on July 13, the BMWE urged railroad workers and their families to write their Congressmen, both U.S. Representatives and Senators, opposing H.R. 4844.