[House Report 111-544]
[From the U.S. Government Publishing Office]
111th Congress Report
HOUSE OF REPRESENTATIVES
2d Session 111-544
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SUPPORTING THE GOALS AND IDEALS OF RAILROAD RETIREMENT DAY
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July 15, 2010.--Referred to the House Calendar and ordered to be
printed
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Mr. Oberstar, from the Committee on Transportation and Infrastructure,
submitted the following
R E P O R T
[To accompany H. Res. 1463]
The Committee on Transportation and Infrastructure, to whom
was referred the resolution (H. Res. 1463) supporting the goals
and ideals of Railroad Retirement Day, having considered the
same, report favorably thereon without amendment and recommend
that the resolution be agreed to.
PURPOSE OF THE LEGISLATION
H. Res. 1463 supports the goals and ideals of Railroad
Retirement Day, as designated by the U.S. Railroad Retirement
Board; recognizes the important contributions that the rail
industry, rail workers, and retirees make to the national
transportation system; and urges the people of the United
States to recognize Railroad Retirement Day (August 29, 2010)
as an opportunity to celebrate the success and importance of
the railroad retirement system to America's working families.
BACKGROUND AND NEED FOR LEGISLATION
H. Res. 1463 supports the goals and ideals of Railroad
Retirement Day, as designated by the U.S. Railroad Retirement
Board. Railroad Retirement Day, August 29, 2010, marks the 75th
anniversary of the enactment of the Railroad Retirement Act of
1935, as part of President Franklin D. Roosevelt's New Deal
legislation.
Railroad Retirement Day recognizes the 75th anniversary of
the creation of a reliable, stable funding system into which
all railroads and railroad employees pay. It allows older
workers to retire with the promise of a predictable income.
This year, nearly 600,000 beneficiaries will receive retirement
and survivor benefits and about 42,000 railroad workers will
receive unemployment and sickness benefits.
In 1874, the first modern railroad pension system was
established in North America by the Grand Trunk Railway of
Canada. Its stated purpose was ``to help workers worn out from
long service to retire.'' The American Express Company, then a
railroad freight agency, established the first railroad pension
system in the United States shortly thereafter, in 1875.
The Baltimore and Ohio Railroad also created a pension
system in 1880; the Pennsylvania Railroad in 1886; and other
railroads followed suit. By the late 1920s, more than 80
percent of all railroad workers in the United States were
covered by a pension plan, but these plans were generally
inadequate, liable to capricious termination, and of little
assistance to disabled employees.
The Great Depression, which began with the stock market
crash in October 1929, drove the already unstable and
inadequate railroad pension systems into a state of crisis.
Since 1910, the number of railroad jobs had leveled off and
was in decline. By 1928, more than 250,000 railroad workers had
lost their jobs and, by 1931, 16 percent of all railroad
employees nationally were laid off.
Older railroad workers eligible for retirement exercised
their seniority rights and continued working, deciding that a
steady paycheck was preferable to pension systems, which could
not meet their obligations. This decimated the ranks of younger
workers, affecting the railroad industry for years to come as
the labor pool of younger workers disappeared.
Congress took action and passed the Railroad Retirement Act
of 1934 ``to promote economy, improve employee morale and
promote the efficiency and safety of interstate
transportation.'' This legislation was not only designed to
rescue retired workers, but a decayingindustry as well.
However, after the Railroad Retirement Act became law, the U.S. Supreme
Court held that the law was unconstitutional.
In 1935, Congress passed similar legislation, which
President Franklin D. Roosevelt signed into law on August 29,
1935. The 1935 law was again challenged in the courts. While
the law was being challenged, President Roosevelt urged
railroad management and labor to come to the table and resolve
their differences, and 11 months after the passage of the 1935
legislation, the first annuity payments were made.
The eventual resolution of differences between railroad
management and labor led to the Railroad Retirement and
Carriers Taxing Act of 1937 and, in July 1937, the benefit
payments of more than 50,000 pensioners was taken over by the
Railroad Retirement Board.
Numerous changes to the 1937 law were made over time, which
increased benefits for retirees and added benefits for
dependents. Amendments enacted in 1946 and 1951 added survivor
and spouse benefits, liberalized disability benefit
requirements, and established jurisdictional coordination with
social security.
Other changes to the law followed, which protected the
income of retirees in times of double-digit inflation and the
crediting of military service, but the most sweeping changes
came in 2001 when Congress enacted the Railroad Retirement and
Survivors' Improvement Act of 2001 (P.L. 107-90).
The Railroad Retirement and Survivors' Improvement Act of
2001 liberalized early retirement benefits for 30-year
employees and their spouses, eliminated a cap on monthly
retirement and disability benefits, and lowered the minimum
service requirement from 10 years to five to nine years if at
least five years of service occurred after 1995. This was
accomplished without a tax increase or a reduction in benefits.
By the beginning of its 75th year, in 2010, railroad
retirement benefits had been provided to two million retired
employees, 1.1 million spouses, and 2.4 million survivors.
Additional unemployment and sickness benefits have been paid to
railroad workers who were laid off or injured on the job.
SUMMARY OF THE LEGISLATION
H. Res. 1463 supports the goals and ideals of Railroad
Retirement Day as designated by the U.S. Railroad Retirement
Board. Railroad Retirement Day will be celebrated on August 29,
2010, the 75th anniversary of the day that the legislation was
signed into law by President Franklin D. Roosevelt. Further,
the resolution recognizes the important contributions that the
rail industry, rail workers, and retirees make to the national
transportation system and recognizes the importance of the
railroad retirement system to America's working families.
LEGISLATIVE HISTORY AND COMMITTEE CONSIDERATION
On June 22, 2010, Rep. Thomas S. P. Perriello introduced H.
Res. 1463.
On July 1, 2010, the Committee on Transportation and
Infrastructure met in open session to consider H. Res. 1463.
The Committee on Transportation and Infrastructure ordered H.
Res. 1463 reported favorably to the House by a voice vote with
a quorum present.
RECORD VOTES
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires each committee report to include the
total number of votes cast for and against on each record vote
on a motion to report and on any amendment offered to the
measure or matter, and the names of those members voting for
and against. There were no recorded votes taken in connection
with consideration of H. Res. 1463 or ordering the resolution
reported. A motion to order H. Res. 1463 reported favorably to
the House was agreed to by voice vote with a quorum present.
COMMITTEE OVERSIGHT FINDINGS
With respect to the requirements of clause 3(c)(1) of rule
XIII of the Rules of the House of Representatives, the
Committee's oversight findings and recommendations are
reflected in this report.
COST OF LEGISLATION
With respect to clause 3(c)(2) of rule XIII of the Rules of
the House of Representatives, H. Res. 1463 is a resolution of
the House of Representatives, and therefore does not have the
force of law. As such, there is no cost associated with this
resolution for fiscal year 2010, or any fiscal year thereafter.
COMPLIANCE WITH HOUSE RULE XIII
1. With respect to the requirement of clause 3(c)(2) of
rule XIII of the Rules of the House of Representatives, and
section 308(a) of the Congressional Budget Act of 1974, the
Committee advises that the resolution contains no measure that
authorizes funding, so no comparison of the total estimated
funding level for the relevant programs to the appropriate leve
under current law is required.
2. With respect to the requirement of clause 3(c)(4) of
rule XIII of the Rules of the House of Representatives, the
Committee advises that the resolution contains no measure that
authorizes funding, so no statement of general performance and
objectives for any measure that authorizes funding is required.
3. With respect to the requirement of clause 3(c)(3) of
rule XIII of the Rules of the House of Representatives and
section 402 of the Congressional Budget Act of 1974, the
Committee advisesthat the resolution contains no measure that
authorizes funding, so no cost estimate nor comparison for any measure
that authorizes funding is required.
COMPLIANCE WITH HOUSE RULE XXI
Pursuant to clause 9 of rule XXI of the Rules of the House
of Representatives, the Committee is required to include a list
of congressional earmarks, limited tax benefits, or limited
tariff benefits, as defined in clause 9(e), 9(f), and 9(g) of
rule XXI of the Rules of the House of Representatives. H. Res.
1463 does not contain any earmarks, limited tax benefits, or
limited tariff benefits under clause 9(e), 9(f), or 9(g) of
rule XXI.
CONSTITUTIONAL AUTHORITY STATEMENT
With respect to clause 3(d)(1) of rule XIII of the Rules of
the House of Representatives, H. Res. 1463 is a resolution of
the House of Representatives, and therefore does not have the
force of law. As such, clause 3(d)(1) of rule XIII does not
apply.
FEDERAL MANDATES STATEMENT
H. Res. 1463 contains no Federal mandates.
PREEMPTION CLARIFICATION
Section 423 of the Congressional Budget Act of 1974
requires the report of any Committee on a bill or joint
resolution to include a statement on the extent to which the
bill or joint resolution is intended to preempt state, local,
or tribal law. The Committee states that H. Res. 1463 does not
preempt any state, local, or tribal law.
ADVISORY COMMITTEE STATEMENT
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act are created by this
legislation.
APPLICABILITY TO THE LEGISLATIVE BRANCH
The Committee finds that the resolution does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act (P.L. 104-1).
CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED
H. Res. 1463 makes no changes in existing law.