This legislation will modernize the federal railroad retirement program by permitting part of rail employees pension funds to be invested in a diversified portfolio.
Current law requires the funds to be invested in U.S. government securities.
I am proud to be one of the early co-sponsors and an advocate of this important piece of legislation. This is a big win for the railroad workers and retirees in the 10 th Congressional District and all across the country. Tier 1 pension funds will remain invested only in federal government securities. Tier 1 benefits are similar to Social Security benefits and are guaranteed. Tier 2 funds are similar to private pension benefits paid over and above Social Security.