WASHINGTON — The Senate today passed a measure under which a $15 billion railroad retirement fund would be invested in stocks and bonds for the first time. Critics said the measure would increase the federal deficit and unduly put tax dollars at risk, according to wire service reports.
The bill, which passed the Senate by 90 to 9, would cut payroll taxes for rail companies, allow workers with 30 years’ service to retire at age 60, down from 62, and increase benefits for surviving spouses of railroad retirees by an average of $300 a month, the Association of American Railroads said.
The rail group’s president, Edward R. Hamburger, said the measure would provide “a better, more secure retirement for hundreds of thousands of railroad workers and retirees.” The organization has been doggedly lobbying for the bill for over a year for the companies and about one million rail workers, retirees and surviving spouses.
The legislation returns to the House, where a nearly identical bill passed overwhelmingly in July. President Bush has not taken a position, but the Senate majority leader, Tom Daschle, Democrat of South Dakota, said that he expected the president to sign it into law and that there were easily enough votes to override a veto.
The legislation would involve only part of the fund, moving $15.6 billion out of lower-earning Treasury bonds and into private markets.