Dear Editor:
Recently the membership of railroad unions was/were presented with a proposal to improve their already generous retirement package.
As it now stands, much of the railroad retirement plan is similar to that of social security, including the right to receive benefits at 62 years of age. However, the payments from railroad retirement are significantly larger. And, like social security, the pay-as-you go system assures that current workers are supporting retirees.
This proposal had federal legislative sponsorship and was to be presented for a vote. It would have reduced the retirement age to 60 without penalty. The proposal, wisely, was turned down; of course, the union is blaming Senator Trent lott (R) for inaction on this proposal.
Remember: the railroad retirement fund is on a pay-as-you-go basis and has projected problems of meeting the current retirement benefits of its members. The problems, however, are not exacerbated by having its annual surpluses transferred to the general fund where interest rates merely keep up with inflation, while market investments soar.
When one thinks of ways to save social security, there is concern over the sometimes generous Cola-adjusted amounts now paid to longer-living retirees even thoug the balance in the “trust” fund (end of 1999) is $798 billion or 104 thousand percent higher than when social security first was energized (1937). This is so despite the fact that only 80% of our population reaches the magic retirement age of 65 [where did the deceased’s contributions go?]
Imagine the howl of complaint from the social security geezers if the proposed legislation was enacted into law. They would then demand a lower, unpenalized retirement age; the current surplus [?] would soon be gone and our kids could definitely kiss their social security benefits good-bye; even some geezers might be adversely impacted.
Where is the press in praising the courage of this Republican Senate leader in seeing far enough ahead to avoid further disaster. Why weren’t the Democrats taken to task by the unions for failure to champion their cause just before election.
We need more courageous legislators like Senator Lott.
Frank X. Landrigan
71-year old geezer