RAILforum: Amtrak Pension Pay-outs

This is topic Amtrak Pension Pay-outs in forum Amtrak at RAILforum.

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Posted by TALKrr (Member # 683) on :

A fellow rail-fan offered me a fact the other day that stunned me. I wanted to try and verify whether the information truly was accurate.

He said that Amtrak pays out over 150 million a year in pension benefits to individuals (and their spouses, I presume) who have NEVER worked for Amtrak.

I "questioned" the comment:

Since Amtrak was formed in 1971, these retirees (presuming they retired at 60) would be 92 years old, today. There surely would not be many of these individuals (even their spouses) still alive to even collect the money. So this is what confuses me.

So what is the "story" ?

Was it part of the original agreement when Amtrak was established that it pay into the retirement funds of numerous railroads for "x" number of years or for "x" number of dollars ?

Does it make sense that Amtrak should be responsible for ANY pension money to individuals who never worked a day for the corporation ? It doesn't to me.

If it IS true that Amtrak must make these pension payments, why (to my knowledge) is this never addressed to Congress ? I have never heard of any Amtrak CEO ever mentionimg this extra expense at any of the numerous hearings that Amtrak execs are present at.

This seems like an enormous financial burden if it IS true.

So I would appreciate any input related to this topic. Perhaps someone knows the REAL facts about the matter.

Posted by Mr. Toy (Member # 311) on :

I don't know the facts, but I believe that Amtrak does pay into a general railroad retirement fund, part of which goes to non-Amtrak employees. Perhaps someone can fill in the details.

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Trust God, love your neighbor, and never mistake opinion for truth.
-Mr. Toy

The Del Monte Club Car

Posted by Kairho (Member # 1567) on :

There's a good report here:
http://www.ncseonline.org/NLE/CRSreports/Transportation/trans-1.cfm

Basically, Amtrak and other railroads pay into a federally sponsores retirement fund. Payments are in the form of payroll taxes. As Amtrak has (as claimed) a younger workforce and proportionately fewer retirees and others receiving benefits, their annual contribution (in the $150 million range) is disproportionate.

The report broaches the subject of Amtrak pulling out of that plan and having their own retirement fund.

There are sites out there where various congressmen mention the retirement fund but it's not a very **** issue and doesn't seem to make it to the front section of the papers.

Posted by CG96 (Member # 1408) on :

I've always wondered why not blend or combine, or otherwise phase the RR retirement board and its functions into the OASDI (ie Social Security). This would decrease the tax burdens on the RR's, and put them into better financial position, as they would be paying at Social Security rates ( 7.65 % instead of 12+ % RRRB), into and out from a much larger fund. Perhaps some board members who deal with payroll taxes or financial planning would be better informed than myself and would be willing to discuss with the rest of us unenlightened souls.