The International Association of Machinists and Aerospace Workers announced on Apr. 22 that it is supporting the introduction of the bipartisan Railroad Retirement Fairness Act in both the U.S. Senate and House. The legislation aims to correct what union leaders call outdated rules that penalize railroad retirees and their spouses who continue working after retirement.
The issue centers on Last Pre-Retirement Non-Railroad Employment (LPE) rules, which were established nearly 90 years ago. These rules can reduce railroad retirement benefits by up to 50 percent for retirees who take side jobs or perform caregiving duties, even after reaching full retirement age. Union officials say this system treats railroad workers differently from those covered by Social Security.
The push for legislative change began when Dave Tackett, a locomotive machinist at Amtrak’s Wilmington shops and an elected New Castle County Councilmember, learned he would face a steep cut to his Tier II benefits due to modest public service wages under the LPE rule. Tackett said, “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?’ I’m grateful to our elected officials in Washington, D.C. for understanding this fundamental unfairness, and for championing the LPE’s removal.”
Union leaders argue that current LPE deductions discourage part-time work among retirees, limit their ability to help fill labor shortages, and create administrative burdens due to complex legal interpretations required by these rules. Brian Bryant, International President of IAM Union 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their own advocacy, this is exactly what we’re talking about… And Brother Tackett’s efforts to eliminate this unfair, outdated provision serves as a perfect example of democracy in action.”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 also welcomed the bill: “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 (TCU/IAM) added: “Railroaders work all kinds of jobs… 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 passing this legislation would align railroad retiree policies with broader national standards while removing unnecessary penalties faced by working retirees.
