Robert L. Ehrlich, Jr. press release, August 1, 2001

MEWS FROM Robert L. Ehrlich, Jr. Second Congressional District of Maryland 1 407 York Road, Suite 304 Lutherville, Maryland 21093 315 Cannon House Office Building Washington, D.C. 20515 FOR IMMEDIATE RELEASE: Wednesday, August 1, 2001 CONTACT: Henry Fawell 202/225-3061 Congressman Ehrlich Votes to Modernize Railroad Retirement Benefits WASHINGTON, D.C. - Congressman Bob Ehrlich (MD-2) voted Tuesday to reform and privatize the railroad retirement pension system, which provides benefits to nearly 700,000 railroad employees and retirees, and their spouses and widows. HR. 1140, The Railroad Retirement and Survivors ' Benefit Improvement Act of 2001, of which Congressman Ehrlich was a cosponsor, was enacted in the House of Representatives 384-33. H.R. 1 140 modernizes the government-run railroad retiree benefits system by establishing a privately-run Railroad Retirement Trust Fund and Railroad Retirement Investment Trust. Currently, investment of rail retirement assets is limited to U.S. government securities. H.R. 1 140, however, would encourage increased earnings on benefits by investing the railroad retirement trust fund balance in a private, diversified portfolio. Congressman Ehrlich stated, “In Maryland’s 2nd congressional district alone, over 2,000 railroad retirees and their loved ones rely on these retirement benefits. By establishing a privately-run trust for their benefits, Maryland’s rail workers can reap the financial rewards of America’s long¬ term economic strength.” H.R. 1 140 also provides widows and widowers better benefits in the event of a railroad retiree’s death. Currently, the amount received by a widow or widower is not guaranteed, and family income can suffer drastically following the death of a railroad retiree. H.R. 1 140, however, guarantees that widows receive benefits equal to the annuity to which the railroad retiree was entitled at the time of death. In addition, H.R. 1 140 reduces the retirement age from 62 to 60 years of age for those with 30 years of service, and allows an employee to be vested in the system after five years of service, rather than 10 years, as currently required.