Bill Overview
Title: Retirees to Rail Act
Description: This bill temporarily suspends certain provisions related to annuity eligibility requirements for retired railroad employees and their survivors. Specifically, the bill temporarily permits retired railroad employees and their survivors to render compensated services to an employer without a suspension or deduction of the retired railroad employee's retirement annuity.
Sponsors: Rep. Crawford, Eric A. "Rick" [R-AR-1]
Target Audience
Population: retired railroad employees and their survivors receiving annuities
Estimated Size: 530000
- The bill affects retired railroad employees who are receiving retirement annuities.
- There are current provisions that suspend or deduct from the annuities if retirees receive compensation from employers, which this bill aims to temporarily suspend.
- According to the U.S. Railroad Retirement Board, there are about 530,000 individuals receiving railroad retirement benefits, including employees, survivors, and families.
- Not all retired people will be employed or seek employment, but many might consider temporarily working if their annuities aren't affected.
Reasoning
- The target population is retired railroad employees and their survivors who receive annuities.
- This policy does not impact all retired individuals but specifically focuses on those who might want to engage in compensated work without risking their retirement benefits being suspended or reduced.
- With roughly 530,000 individuals receiving railroad retirement benefits, it is anticipated that not all would seek to work post-retirement, thus the policy will impact only a segment of this population.
- The budget constraints suggest that the policy is meant to benefit those who either wish or have the opportunity to continue working without penalizing their retirement benefits.
- The policy could encourage retired individuals who want to remain active or supplement their income to re-enter the workforce.
Simulated Interviews
Retired Railroad Worker (Chicago, IL)
Age: 72 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 8/20
Statement of Opinion:
- I would love to work part-time at the train museum, but the annuity rules stopped me.
- This policy change would definitely make me consider going back, at least a few days a week.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Surviving Spouse (Pittsburgh, PA)
Age: 65 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 10/20
Statement of Opinion:
- This would give me the opportunity to work part-time without affecting my survivor benefits.
- It makes managing my finances a bit easier.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Retired Maintenance Worker (Topeka, KS)
Age: 80 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 15/20
Statement of Opinion:
- I am too old to work, so this doesn't really impact me.
- The policy seems helpful for younger retirees though.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Retired Train Conductor (Fresno, CA)
Age: 68 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- I may take up some local jobs now, like event assistance without worrying about deductions.
- It's a good opportunity to stay active and earn a little.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Retired Engineer (New York, NY)
Age: 75 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 12/20
Statement of Opinion:
- I likely will not take a job, but I think it's good for those who want a second career or projects.
- This offers a comforting option for financial or health reasons.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 6 | 6 |
Retired Office Manager (Jacksonville, FL)
Age: 70 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 6.0 years
Commonness: 7/20
Statement of Opinion:
- This could be a great chance to take small consulting opportunities without affecting my annuities.
- I might take on outsourced work or part-time roles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Retired Railroad Conductor (Houston, TX)
Age: 58 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 9/20
Statement of Opinion:
- I'm eager to work if it doesn't affect my benefits, possibly something short-term or project-based.
- This policy is exactly what people like me need to stay engaged and financially secure.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Retired Admin Clerk (Denver, CO)
Age: 85 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 0.0 years
Commonness: 14/20
Statement of Opinion:
- This policy doesn't change much for me since I'm not looking to work.
- It's probably useful for younger retirees needing extra income.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Retired Station Master (Omaha, NE)
Age: 60 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 9/20
Statement of Opinion:
- This is a great incentive for me to try out teaching one or two classes.
- I can explore new roles without worrying about losing my annuity benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Retired Railroad Technician (Los Angeles, CA)
Age: 69 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 10/20
Statement of Opinion:
- I might do some freelance consulting now, which I avoided due to annuity deductions.
- The policy supports flexibility without penalizing my benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Cost Estimates
Year 1: $250000000 (Low: $200000000, High: $300000000)
Year 2: $250000000 (Low: $200000000, High: $300000000)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The actual uptake of work by retired railroad employees is uncertain, affecting the precise cost.
- The policy is temporary, and its impacts will phase out unless further extended by legislation.
- The impact on federal tax revenues, while positive, is expected to be modest given the size of the beneficiary pool.