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Bush signs railroad pension
legislation
Railroad Retirement and Survivors' Improvement
Act of 2001
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Bush signs railroad
pension legislation
WASHINGTON, Dec 21 (Reuters) - U.S. President George W. Bush on Friday signed legislation permitting $15.3 billion in railroad pension funds to be invested on Wall Street. The move, announced by the White House in a brief statement, allows the federally administered railroad pension system to take the assets out of U.S. Treasury bonds and invest the money in private securities instead. The measure would cut the railroads' payroll taxes while aiming to boost the benefits of retirees and their widows or widowers. The measure was backed by rail companies and their unions. Proponents said it was important to help tens of thousands of rail retirees, who are not covered by Social Security, as well as the rail companies. But it was scorned by a small group of Republicans who charged that railroads and their workers had colluded against the taxpayer, who would be expected to foot the bill if the new private investments go sour.
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Changes to the Railroad Employees National Early Retirement
Major Medical Benefit Plan (GA-46000)
Recent changes to the Railroad Retirement Act will allow employees who
are 60 years old with 30 or more years service to retire at age 60 with
no reduction in their Railroad Retirement Board annuity. An important consideration for anyone thinking about retirement is health
coverage after retirement.
New Eligibility Rules
Along with the changes in the Railroad Retirement Act, the labor
organizations representing railroad employees have negotiated a change
in the eligibility rules under the Railroad Employees National Early
Retirement Major Medical Benefit Plan
(GA-46000),
administered by United Healthcare.
Prior to January 1, 2002, GA-46000 required an employee to retire on
or after reaching age 61. After this date, you can retire at age 60 and
will be eligible for coverage under this plan if you meet the following
eligibility requirements.
For Age Annuitants:
You apply for a 60/30 annuity for which
you are eligible
On or after the date you reach age 60, or Anytime during the three months before your 60th birthday, provided
you continue working into the month before the month in which you turn age 60.
On the day before you apply for your
annuity. you must be covered (other than under COBRA) under the Railroad
Employees National Health and Welfare Plan.
For Disability Annuitants
You have a current connection with the railroad industry, You have applied for a disability annuity to which you are entitled, You are covered under the Railroad Employees National Health and
Welfare Plan (other than by COBRA) on the day before the latest of
the following dates:
The date you reach age 60,
The date you became disable,
The date your railroad service equals 30 years.
In addition to the changes in eligibility rules, the lifetime maximum under GA-46000 will be adjusted each year by the medical cost component of the Consumer Price Index. The Lifetime Maximum for 2002 will be $79,000.
If you retire and are eligible for GA-46000, you can also purchase supplemental coverage under GA-23111, Plan E. Generally, Plan E pays 70% of the expenses not paid under GA-46000 and has a lifetime maximum of $200,000. The current premiums for Plan E are $120.00 per month for the employee and $120.00 per month for all eligible dependents. Adjustments to cost of Plan E are generally effective June 1st of each year.
Enrollment Is Necessary.
When you retire, your railroad will not report you to
United Healthcare as a retiree eligible for GA-46000. You must enroll
yourself and your family with United Healthcare. You can do this in two
ways: You can purchase GA-23111, Plan E: Your eligibility for GA-46000 will
be verified when your enrollment for that coverage is processed. 10 cards
for both GA-46000 and GA-23111 will be sent to you. A booklet explaining
the Plan E benefits and an enrollment form can be obtained by calling
United Healthcare. You can complete and return the "Retiree and Dependent Information"
form found in the center of the GA-46000
employee booklet. Your eligibility will be verified and a GA-46000 10 card will be sent to
you.
You can obtain a GA-46000 booklet from your employer or by contacting United Healthcare at 1-800 842-5252.
If you have any questions about your eligibility for GA-46000 or the benefits provided under the Plan, call
United Healthcare at 1-800 842-5252
