Help! Tier 2 - RR Retirement
Don Ross
----------
> From: Glenn S. Berman <glen...@HELP.VOICENET.COM>
> To: RAIL...@CUNYVM.CUNY.EDU
> Subject: Help! Tier 2 - RR Retirement
> Date: Wednesday, August 06, 1997 8:58 PM
>
> I worked for a railroad until August 1996, changing jobs for more
> responsibility, opportunity (I'm a Systems Analyst) and, of course $$.
> We lost over 2 dozen people /yr in my dept. as our profession has high
> turnover.
>
> Here's the rub. Upon hiring, we were informed that we'd have to pay
> into the Federal Railroad Retirement System, (RRS) instead of Social
> Security, federally mandated. It's split into 2 tiers, I = Social
> Security, II - is an additional 5% tax.
>
> We were not told, until a year after hiring, that vesting is 10 years.
> If an employee leaves, before vesting, Tier I is transferred to Social
> Security & Tier II is lost! Not only is the money contributed to Tier
> II lost, but we had to pay Federal, State & local income tax on the
> Tier II portion! Thus, more money is lost.
>
> Many former RR employees have written to several Senators &
> Congressmen. There has been some movement. The Labor Dept. said they
> thought it works the same as Social Security & the issue is out of
> there hands.
>
> RRS said the 'credits are really lost, since our Tier I is transferred
> to Social Security. However, on the phone & in person they admit that
> only quarters worked is transferred to Social Security. Thus, not
> only do we REALLY loose money from Tier II, but they won't even put
> that in writing.
>
> The law is from the 1930's and is a political hot potato. We'd
> appreciate any assistance you could offer in getting OUR Congressmen
> to wake up. This has already been submitted to the House Ways and
> Means Committee and the House Railroad Subcommittee of the Trans. &
> Infrastructure Committee. Please contact your Congressman.
>
> I've checked into many other pensions - teachers, postal, federal,
> state and local. Any of them FULLY REFUND an employee's contribution
> if not vested. RRS should be the same.
>
> For more info, please check out:
>
> www.voicenet.com/~glennber/rrt2sum.html
>
>
> Thank you.
My experience with the job changing thing has been much more positive. I
worked for the Milwaukee Road from 1949-1951, the CNW from 1951-1957 with 2
years off for military service, and then 1960-1969 for Railway Express.
This gave me over 10 years. As I remember, our deductions were about 5%
total instead of 2 or 3% for social security.
Last year I turned 65. Social Security offered me a base of $750 per
month. I contacted RRB and they are paying me a base of $1000. The
problem is that I am still working at a reasonably well paying job and thus
lose $1 of every $3 over $13,500 per year. But I'm having too much fun on
my job as surfing instructor at GTE Internet.
Don
Bob Officer
At 01:58 AM 8/7/97 GMT, you wrote:
>I worked for a railroad until August 1996, changing jobs for more
>responsibility, opportunity (I'm a Systems Analyst) and, of course $$.
>We lost over 2 dozen people /yr in my dept. as our profession has high
>turnover.
Big deal! Ho Hum...
and why have you written this or just re-sent this three times?
>Here's the rub. Upon hiring, we were informed that we'd have to pay
>into the Federal Railroad Retirement System, (RRS) instead of Social
>Security, federally mandated. It's split into 2 tiers, I = Social
>Security, II - is an additional 5% tax.
Most all of ther active employees lost their rights to Social Security, and
any military pensions. your ten or so employees are a minority.
You chose to leave your job, take your lumps.
<snip>
>Many former RR employees have written to several Senators &
>Congressmen. There has been some movement. The Labor Dept. said they
>thought it works the same as Social Security & the issue is out of
>there hands.
More RR employees have written and asked congressmen and senators not to
change the RR retirement system...
>The law is from the 1930's and is a political hot potato. We'd
>appreciate any assistance you could offer in getting OUR Congressmen
>to wake up. This has already been submitted to the House Ways and
>Means Committee and the House Railroad Subcommittee of the Trans. &
>Infrastructure Committee. Please contact your Congressman.
You will get none from me and most of my fellow employees.
I have written many letters everytime someone strats these letter writting
campaigns. The congress knows everytime they look at the RRS... The majority
of the employees don't want it changed.
>I've checked into many other pensions - teachers, postal, federal,
>state and local. Any of them FULLY REFUND an employee's contribution
>if not vested. RRS should be the same.
No it shouldn't...
IT doesn't work that way...
IF you didn't understand how it work before you hired out, it is your loss.
Not the change in retirement ages is a different matter... If you have
suggested the ablity to retire with full anuity at any age and 30 years of
service... most of us would favor that.
Bob Officer | It isn't what we take with us when we die,
Place [RHO] in subject line | but what we leave behind that counts.
bo...@vornet.com |