Trimming Business Fat
the politics of selfishness."
Congress passed the Railroad Retirement Act in 1934, over the pro- tests of the Roosevelt administration. The act nationalized existing pension plans into a Railroad Retirement Fund (RRF) that taxes both workers and employers in a manner similar to (but separate from) Social Security. Lobbying retiree groups has kept pensions generous. Railroad pensions range up to 125 percent of a worker's final salary.
Railroads pay for these generous pensions through high...