The International Association of Machinists and Aerospace Workers (IAM Union) announced on Apr. 22 its strong support for the Railroad Retirement Fairness Act, a bipartisan bill introduced in both the U.S. Senate and House that aims to change how retirement benefits are calculated for railroad retirees who continue to work.
The legislation seeks to address what supporters say is an outdated policy that reduces benefits for railroad retirees and their spouses if they take side jobs or serve as caregivers after retirement. The rule, known as Last Pre-Retirement Non-Railroad Employment (LPE), has been in place for nearly 90 years and can lead to reductions of up to 50% in Tier II benefits—penalties not faced by other Social Security recipients.
According to the IAM Union, the current LPE deduction discourages part-time work among retirees, limits their ability to help fill labor shortages, and punishes families when spouses or caregivers earn modest incomes. The union also said these rules create confusion due to complex legal interpretations and increase administrative burdens on both retirees and the Railroad Retirement Board.
The push for reform began when Dave Tackett, former IAM Local 1284 President and a locomotive machinist at Amtrak’s Wilmington shops, learned he would face steep benefit cuts because of his wages as a public servant under the LPE rule. “It just didn’t make any sense – and I thought to myself, ‘if this is happening to me, how many other railroaders and their spouses are getting treated unfairly?’” said Tackett. “I’m grateful to our elected officials in Washington, D.C. for understanding this fundamental unfairness, and for championing the LPE’s removal.”
IAM International President Brian Bryant said: “When our union talks about our members getting active in their own advocacy, this is exactly what we’re talking about… And Brother Tackett’s efforts to eliminate this unfair, outdated provision serves as a perfect example of democracy in action.”
Josh Hartford of IAM Rail Division added: “We are grateful to Senators Coons and Hawley for introducing the Railroad Retirement Fairness Act… Their bipartisan effort represents an important step toward restoring fairness and modernizing the Railroad Retirement system.”
Matt Hollis from Transportation Communications Union also commented: “Railroaders work all kinds of jobs…and that should have zero bearing on their hard-earned benefits when they finally retire from the railroad. It’s past-time for Congress to fix this unfair deduction…”
Supporters say passage of this act would bring more fairness into how retired railroad workers’ benefits are handled if they choose or need additional employment.