Lawmakers introduce Railroad Retirement Fairness Act

The Railroad Retirement Fairness Act (H.R. 8405) was introduced yesterday by a bipartisan group of lawmakers. This is reported by the railway transport news portal Railway Supply.

The bill would remove a federal rule that reduces retirement benefits for some railroad retirees and their spouses. That rule applies when they continue working in non-railroad jobs after retirement.

How the LPE law affects retirees and spouses?

According to a press release from the office of U.S. Rep. Troy Nehls (R-Texas), the current Pre-Retirement Non-Railroad Employment (LPE) law can cut benefits. It applies if a railroad retiree or spouse continues working for the last prior non-railroad employer they had before retirement. Still, retirees who take a different job after retirement are not subject to that same penalty.

Nehls introduced the bill with U.S. Rep. Chris Deluzio (D-Pa.) and U.S. Sens. Josh Hawley (R-Mo.) and Chris Coons (D-Del.). Meanwhile, as Progressive Railroading reported, the measure was referred to the House Committee on Transportation and Infrastructure.

Labor union support for the legislation

Also, the legislation has backing from several labor organizations. Those groups include the Transportation Trades Department of the AFL-CIO and the Transportation Communications Union. They also include the International Association of Machinists and Aerospace Workers (IAM) and the Brotherhood of Maintenance of Way Employes Division.

In a prepared statement, IAM officials said the LPE policy, established nearly 90 years ago, no longer reflects the modern workplace. They said it discourages most part-time work and limits retirees’ ability to help address labor shortages. In addition, they said it requires complicated legal interpretation that leads to inconsistent decisions.

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