The Railroad Retirement and Survivors’ Improvement Act of 2001 takes effect this week after a three-year battle to increase retirement benefits for railroad workers and surviving spouses. The legislation, signed into law on December 21, 2001, raises benefits, cuts payroll taxes and allows a portion of the railroad retirement fund to be invested in private securities.
A key provision of the new law increases benefits for spouses of deceased rail workers. Surviving spouses will now be eligible for 100 percent of the retiree’s retirement benefit. Previously, the spouse’s retirement benefit was limited to 50 percent of the retirees’ annuity. Additional benefits include lowering the retirement age from 62 to 60 for workers with 30 years of service and health insurance for retirees with benefit increases pegged to the medical inflation rate.
Detailed information on benefits, service requirements, financing provisions and effective dates of the new law is available from the U.S. Railroad Retirement Board at http://www.rrb.gov/opa/pr/pr0113.html.
The Railroad Retirement and Survivors’ Improvement Act of 2001 takes effect this week after a three-year battle to increase retirement benefits for railroad workers and surviving spouses. The legislation, signed into law on December 21, 2001, raises benefits, cuts payroll taxes and allows a portion of the railroad retirement fund to be invested in private securities.
A key provision of the new law increases benefits for spouses of deceased rail workers. Surviving spouses will now be eligible for 100 percent of the retiree’s retirement benefit. Previously, the spouse’s retirement benefit was limited to 50 percent of the retirees’ annuity. Additional benefits include lowering the retirement age from 62 to 60 for workers with 30 years of service and health insurance for retirees with benefit increases pegged to the medical inflation rate.
Detailed information on benefits, service requirements, financing provisions and effective dates of the new law is available from the U.S. Railroad Retirement Board at http://www.rrb.gov/opa/pr/pr0113.html.
