South Carolina General Assembly
114th Session, 2001-2002

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Bill 4040


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                      4040
Type of Legislation:              Concurrent Resolution CR
Introducing Body:                 House
Introduced Date:                  20010501
Primary Sponsor:                  Cobb-Hunter
All Sponsors:                     Cobb-Hunter
Drafted Document Number:          l:\council\bills\swb\5404djc01.doc
Residing Body:                    House
Current Committee:                Invitations and Memorial Resolutions 
                                  Committee 24 HIMR
Subject:                          Railroad Retirement System, Congress 
                                  requests to enact reforms to; Railroads, 
                                  Federal Government, Pensions


                        History

Body    Date      Action Description                     Com     Leg Involved
______  ________  ______________________________________ _______ ____________
House   20010501  Introduced, referred to Committee      24 HIMR


              Versions of This Bill

View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A CONCURRENT RESOLUTION

TO MEMORIALIZE THE CONGRESS OF THE UNITED STATES TO ENACT REFORMS TO THE RAILROAD RETIREMENT SYSTEM AS PROPOSED IN S.697, THE RAILROAD RETIREMENT AND SURVIVORS' IMPROVEMENT ACT OF 2001.

Whereas, after more than two years of discussions, rail management and a sizeable majority of rail labor developed a joint proposal to reform Railroad Retirement, the principles of which are pending before the Congress of the United States in S.697, the proposed Railroad Retirement and Survivors' Improvement Act of 2001; and

Whereas, S.697 is designed to improve significantly both the financing and benefits of railroad retirement and to increase industry responsibility for the portion of the program that is similar to a private pension plan; and

Whereas, under S.697 the rail industry would have greater responsibility for financing the cost of railroad retirement and the opportunity to increase its efficiency through improved investment earnings on railroad retirement assets. Based on these reforms, S.697 provides for improving benefits for rail employees, their families and survivors, while lowering payroll taxes for both rail employers and employees; and

Whereas, railroad employees and retirees are the only private sector U.S. workers not covered by Social Security. Instead, they are covered by railroad retirement, a government sponsored and managed pension plan funded by payroll taxes on railroad employers and employees; and

Whereas, railroad retirement has two major components: Tier I which is largely equivalent to Social Security, and Tier II which provides additional benefits similar to those of a private pension; and

Whereas, current law sets a widow's or widower's Tier II annuity at fifty percent of the retiree's Tier II annuity. S.697 would raise a widow's or widower's Tier II annuity to an amount not less than the amount of the annuity the railroad retiree received; and

Whereas, under S.697, the age at which a railroad employee with thirty years of service could retire without a reduction in Tier I benefits would be changed from age 62 to age 60, and the existing ten-year service requirement to vest under railroad retirement would be reduced to five years; and

Whereas, S.697 would begin to lift a financial burden from the federal government by providing rail companies and employees more responsibility for their own pension system. Now, therefore,

Be it resolved by the House of Representatives, the Senate concurring:

That the members of the General Assembly, by this resolution, memorialize the Congress of the United States to enact reforms to the railroad retirement system as proposed in S-697, the Railroad Retirement and Survivors' Improvement Act of 2001.

Be it further resolved that copies of this resolution be forwarded to Strom Thurmond, President Pro Tempore, United States Senate, to Denny Hastert, Speaker, United States House of Representatives, and to each member of the South Carolina Congressional Delegation.

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