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Week Ending September 29, 2006

H.R.5074 To amend the Railroad Retirement Act of 1974 to provide for continued payment of railroad retirement annuities by the Department of the Treasury, and for other purposes.

Retirement pensions for railroad employees have always been shouldered with the government through the Railroad Retirement Board. A 2001 provision added to the 1974 bill that created the pension rules allowed for the Board to enter into an agreement with a private financial institution that would serve as the disbursing agent for the annuity and death benefits. It was discovered that the private agent cost more than continuing to use the Treasury as the disbursing agent. The private sector financial institution was taking $3 million yearly. Having the Treasury do it cost a million less. This bill officially returns the job to the Secretary of Treasury.

Sponsor: Rep. Don Young (R-AK)

Vote: Passed House by voice vote September 27, 2006

Cost to the taxpayers: CBO estimates the bill would reduce outlays by $2 million in 2007 and by $9 million over the 2007-2011 period

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