War on Workers: Ryan Budget targets railroad workers, retirees

http://www.ble.org/pr/news/newsflash.asp?id=5262

CLEVELAND, April 16 - The U.S. House of Representatives has adopted
federal budget legislation sponsored by Budget Committee Chairman Paul
Ryan (R-WI) that would have devastating effects on the retirement security
of both active and retired BLET members, as well as all railroad workers.
The measure passed on March 29 by a vote of 228-191, with 10 Republicans
joining all of the Democrats in voting against it.

Perhaps the most devastating portion of the Ryan Budget are the provisions
that sponsors claim "would conform Tier 1 so that its benefits would equal
those of Social Security, with an estimated savings to taxpayers of $2
billion over 10 years." Enactment of this legislation would eliminate the
Railroad Retirement Occupational Disability program, as well as the
"60/30" provision for allowing early retirement for railroad workers at
age 60 if they have 30 years of service. Under the legislation, the
earliest these individuals could retire would be age 62. Annuities for
spouses of these workers also would be negatively impacted in this manner.
These provisions would negatively affect the annuities of almost 120,000
non-disabled employees, almost 90,000 spouses and over 62,000
occupationally disabled employees.

The Ryan Budget fundamentally misconstrues the relationship between
Railroad Retirement and Social Security, and ignores the fact that all
Railroad Retirement benefits above Social Security - whether Tier 1
benefits or Tier 2 benefits - are fully funded by railroad workers and
their employers; none of these benefits are funded from the general
treasury. Therefore, no actual budgetary savings would result from
enactment of this legislation.

"The Ryan Budget's claim that American taxpayers will realize a savings if
our occupational disability and retirement annuities are gutted is so
blatantly false," BLET National President Dennis R. Pierce said, "that
even the head of the carriers' lobbying group has called out Chairman Ryan
on his deception, and told him not to 'interfere' in our privately-funded
industry pension."

The Ryan Budget also attacks two other key components of the American
social compact in a way that would negatively impact active and retired
railroad workers. Under current law, new retirees receive Social Security
benefits based on the growth in wages. The Ryan Budget would set initial
benefits based on the growth in prices, which over time grow at a slower
rate. This would harm 70% of Social Security beneficiaries by cutting
benefits by roughly 16% for the average new retiree in 2050 and 28% in
2080. These cuts also would affect Tier 1 Railroad Retirement benefits.

The Ryan Budget also would end Medicare as we know it. The Medicare
eligibility age would be raised to 67. This, alone, would increase
out-of-pocket health care costs by $4,300 a year for nearly 1 million
individuals ages 65 and 66, and would cause the costs of the GA 46000 Plan
to soar. Further, the Ryan Budget replaces Medicare's guaranteed benefits
with a "premium support" payment that beneficiaries would use towards the
cost of private insurance or traditional Medicare starting in 2023.

The amount of this voucher would be based on the second cheapest available
plan in the area. There is no guarantee that this payment would actually
cover enough of a premium's cost to actually make the Medicare replacement
health care affordable. In fact, it is more than likely that beneficiaries
would be left with increased out of pocket costs, because the Ryan Budget
caps the amount of the voucher at a half percent above Gross Domestic
Product, which is far below the growth in health insurance costs in recent
years. In fact, the Congressional Budget Office estimates that new
beneficiaries could pay over $1,200 more per year by 2030 and over $5,900
more per year by 2050 under. It also would allow private insurers to
cherry pick the younger and healthier beneficiaries, leaving Medicare with
a disproportionate share of the oldest, sickest and costliest
beneficiaries, driving up costs for the program and setting it on an
unsustainable path.

"This budget is one more example of how Republican Paul Ryan and his
worker-hating allies are trying to hurt middle class Americans - including
the railroad workers who, with the carriers, fully fund their own pension
plan," BLET Vice President & National Legislative Representative John
Tolman said. "Also included are the standard targets - Amtrak and its
workers and high speed rail, by eliminating funding for high speed rail
and limiting overtime for Amtrak workers. But the cuts aren't limited to
only railroad workers. The Ryan Budget also attacks the poor, the sick,
the elderly and the nation's children, while allowing the wealthy to
continue to get away with not paying their fair share by extending the
Bush tax cuts, retaining oil company subsidies and increasing defense
spending by $228 billion."

While the legislation is not expected to be taken up by the Senate in this
session, President Pierce is warning BLET members not to take the threat
lightly.

"The presumptive Republican presidential nominee already has publicly
stated his support for the Ryan Budget, and Chairman Ryan is reported to
be on the 'short list' of potential vice presidential candidates,"
President Pierce said. "If those who support the Ryan Budget capture the
White House and the Senate, and retain the House, this nightmare will
become a reality, and our members' economic security will be set back by
decades. We need to remember this on November 6 and vote for candidates
who will help working Americans."

Mark your calendars for 2012 BLET regional meetings

http://www.ble.org/pr/news/newsflash.asp?id=5200

CLEVELAND, October 28 - BLET members looking to schedule their vacation
time for next year should consider attending one of the organization's
four regional meetings in 2012.

These multi-day meetings combine the best of the Brotherhood - networking,
education and training, and family fun - all in one place. The meetings
provide an excellent opportunity for members to reminisce with old
acquaintances, make new friends, remember those who cannot be with us, and
join together in a way that would make our forefathers proud.

The dates and locations are as follows:

June 24-29, 2012
85th annual Southeastern Meeting Association
Walt Disney World
Orlando, Fla.
Arrangements Chairman Earl Karper (Division 35) is hosting the 2012 SMA at
the Disney Coronado Springs Hotel (1000 West Buena Vista Drive, Lake Buena
Vista, FL 32830, phone: (407) 939-1000). For details, visit
www.SMA2012.com. Contact Brother Karper: ekarper@sma2012.com.

July 29-August 1, 2012
72nd annual International Western Convention
Crown Plaza Hotel
Billings, Mont.
Hosted by Arrangements Chairman Craig Gilchrist (Montana State Legislative
Board Chairman, BLET Division 298) and Co-Chair D.B. Kenner (Division
195). At the Crown Plaza Billings (27 North 27th St., Billings, Mont.
59101, phone: (406) 252-7400).  Contact Brother Gilchrist:
blecag@nemontel.net; or Brother Kenner: kennerdb@yahoo.com.

August 19-24, 2012
74th annual Eastern Union Meeting Association
Atlantic City, N.J.
Hosted by Arrangements Chairman Matt Kronyak (New Jersey State Legislative
Board Chairman and Division 231 Local Chairman), the 2012 EUMA will be at
Bally's Atlantic City (1900 Pacific Ave., Atlantic City, NJ 08401, phone:
(800) 345-7253, www.ballysac.com). Contact Brother Kronyak:
mckronyak@aol.com or (201) 978-6436.

September 9-13, 2012
77th annual Southwestern Convention Meeting
Galveston, Texas
Hosted by Arrangements Chairman Jack Sweeny, Division 776 Local Chairman),
the 2012 SWCM will be at the Moody Gardens Hotel (Seven Hope Blvd.,
Galveston, Texas 77554, phone: (888) 388-8484, www.moodygardenshotel.com).
Contact Brother Sweeny: jrsweeny@coastal-link.net.