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Railroad Retirement Ramifications

May 2002 IBEW Journal

Amtraks demise would mean more than the loss of scores of jobs by IBEW members employed by Amtrak. It would also mean the possibility of insolvency for the Railroad Retirement system, a retirement and unemployment benefit program similar to Social Security. This would endanger payments to current and future retirees in the railroad industry as well as staff and International Officers of the IBEW, a number estimated at more than 11,000 members and staff.

A recent report from the Railroad Retirement Board, which administers the fund, said that barring a sudden, large decrease in railroad employment, it envisions no cash-flow problems in the next 25 years. But, it noted, the long-term stability of the system is dependent on its current financing structure.

With the continuing war on international terrorism and an increase in homeland security, Amtrak will not be a top funding proposal in the federal budget as it moves through Congress later this year. If Congress abolishes Amtrak as we know it, and observers believe it is possible, it is likely the states will be forced to step up and fund regional passenger rail service, which could contribute to scattered service in some areas and none at all in others.

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