Brothers and sisters of rail labor, If I may be so bold please allow me to speak on a subject that needs to be addressed. That subject: Railroad Retirement.

Some of you may recall back in 1997 a proposal was written to change the retirement age to age 55, OR 360 service months (30 years). Initially the Railroad Retirement Board went nuts. It couldn't happen, it would bankrupt the system, it was a pipe dream. Then some of the Labor Leaders voiced the same opinions as well as "a snowballs chance in hell" and some of them are still in office today! How do I know that? Well, for one, I wrote the proposal for 55 OR 30. And I kept darned near every piece of paper in regards to the struggle that finally got us the 60/30 that we current have.

But quite frankly, there is one heck of a lot more that can, and needs, to be done. It is thus that I am again calling on the rank and file for dialogue for reasonable changes to the current system. (no, I wasn't a big supporter of 60/30)

1. Change the system so that we can retire earlier than 60 years of age, or 30 years credible service if we so desire. In other words, a choice. That change can be a 2% reduction in retirement benefits (pay) for each year under age 60 with said earlier retirement not to be less than age 55. And retirement at age 60 even if the person has less than 30 credible years service with the same 2% reduction, per year for each year under 30 credible years service.

Example: Retirement choice at age 55 with 30, or more, credible years service would equal a 10% reduction in retirement pay. Or Retirement at age 60 with 25 years credible service would equal a 10% reduction in retirement pay.

2. Spouses of railroad workers receive full retirement benefit's the day the worker retires, or dies, whichever comes first regardless of the spouses age or medical condition.

3. Any railroad worker that leaves service through permanent, or total, or occupational disability would be provided, at the carriers' expense, full medical benefits for themselves and their spouses and dependent children, until the disabled worker reaches the age to qualify for Medicare AND the carriers would provide any supplemental necessary. Those same benefits would be extended to the spouse of a disabled worker at the carriers expense AND the dependent children until age 21, or 25 if a student at an accredited college or university, or longer if the child is disabled.

4. Any railroad worker that leaves railroad service through permanent, or total, or occupational disability would continue to accrue service months until reaching full retirement age and credited years service. If you aren't aware of it, 60/30 provided the carriers, collectively, with an annual savings of $400 million per year. That is money that they no longer put into your retirement account. (1998 figures) Point number 5 is take the caps off of railroad retirement taxable earnings. Everyone from a basic force trackman to the CEO pays from each paycheck, all year. That alone would increase an additionally $500 million per year (again 1998 figures) into the Railroad Retirement account. Basically, what I'm saying is that, yes, the money for these proposed changes is there, and NO it will not bankrupt our retirement system.

And as a final little nudge, are you aware that U.S. Representative James Oberstar had offered a compromise before the current changes were enacted that would have given us 58/30 rather than 60/30? Yep, it's true. The proposed age, or credible service months changes, that I am proposing (and proposed in the past) provide the railroad worker a viable choice for earlier than 60 years of age retirement if they so choose. It is in no way meant to be mandatory.

It is criminal that anyone that leaves the railroad through disability should have to worry about medical coverage, eye care, and dental when it is quite likely the railroad industry is what crippled them! And the carrier doesn't have to step up to the plate for that care? I don't think so. When our broken body gives out make the carrier pony up the same, if not better, coverage for crippling us.

And our spouses supported us through our career. Why should they not receive those same full benefits the day we retire, or die, regardless of that spouse's age or medical condition? I appreciate your taking the time to read. Now is the time for us to act.

In total solidarity,

Ronald D. Friend

Currently 55 years of age with 38 years service.