Year: 2013

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U.S. Rep. Earl Blumenauer (D-Ore.) will introduce Dec. 4 legislation to fund U.S. transportation infrastructure in the nation now and into the future.

The two bills will establish a series of pilot projects to further study the application of a vehicle-miles-traveled fee and establish a 15-cents-per-gallon increase to the federal gas tax.

“Increased vehicle-fuel efficiency allows for increased demands on our transportation system without contributing as much to its maintenance. An analysis by the Congressional Budget Office based on current driving patterns demonstrates the newest fuel economy standards for automobiles will result in a 21 percent reduction in Highway Trust Fund revenue by 2040,” Blumenauer said.

“There are already significant funding challenges. Congress has transferred $55 billion in general fund revenues to the Highway Trust Fund to avoid bankruptcy since 2009. When the current authorization expires, the Highway Trust Fund will require almost $15 billion a year in addition to existing gas tax receipts, merely to maintain 2009 funding levels.

“Our failure to adequately fund transportation infrastructure imposes huge costs on American citizens and businesses. Last year, congestion cost urban Americans $87.2 billion a year in time wasted sitting in traffic, and higher transportation costs have pushed logistics costs to nearly 10 percent of our gross domestic product. A recent analysis by the American Society of Civil Engineers suggests that the cost of our declining transportation system could result in the loss of 876,000 jobs by 2020. Until we tie our transportation revenues to our transportation demands, this situation will worsen.”

The National Surface Transportation Policy and Revenue Study Commission noted that a vehicle-miles-traveled charge is the “the most promising alternative revenue measure” to our existing gas tax, while the National Surface Transportation Infrastructure Financing Commission reported that “a charge for each mile driven . . . has emerged as the consensus choice for the future.” Both commissions found that this system was efficient at raising revenue.

A number of states, including Oregon, Nevada, Minnesota, Iowa, Texas, and New York have tested pilot projects where they charged drivers for the number of miles they traveled rather than the fuel they consumed. The tests have proved convenient for drivers, demonstrated strong protections for personal privacy, and have been easily administrable.

A recent GAO report on this subject noted, “Should Congress wish to explore mileage fees as a mechanism for funding surface transportation, it should consider establishing a pilot program to evaluate the viability, costs, and benefits of mileage fee systems . . . .”

The Road User Fee Pilot Project establishes a competitive grant program to fund VMT pilot projects that will help answer outstanding questions about privacy, implementation, and equity. These projects will help answer Congress’s outstanding questions, and provide a variety of models from which best practices can be determined.

Blumenauer will hold a press conference Dec. 4 at 10:30 a.m. in room 201 of the Capitol Visitor Center (HVC-201) to announce the proposed legislation.

whitehouselogoPresident Barack Obama Nov. 22 signed an executive order creating a Presidential Emergency Board 244 to help resolve an ongoing dispute between the Long Island Rail Road and some of its employees.

According to the White House, PEB 244 will provide a structure for the two sides to resolve their disagreements. The board will hear evidence and, within 30 days, will deliver a report to the president recommending how the dispute should be resolved.

President Obama also announced that he intends to appoint the following members to Presidential Emergency Board No. 244:

  • Ira F. Jaffe – Chair, Presidential Emergency Board No. 244
  • Roberta Golick – Member, Presidential Emergency Board No. 244
  • Arnold M. Zack – Member, Presidential Emergency Board No. 244

SMART Transportation Division President John Previsich, who is assisting LIRR General Committee of Adjustment GO 505 with this round of negotiations, expressed satisfaction with the establishment of a presidential emergency board.

“The board members are highly respected arbitrators with years of experience in our industry and we welcome their participation in bringing this matter to a satisfactory conclusion,” Previsich said.

Ira F. Jaffe, appointee for chair, Presidential Emergency Board No. 244
Ira F. Jaffe has been an arbitrator and mediator of labor and employment disputes since 1981 and has presided over more than 4,500 cases in a wide variety of industries in the private and public sectors. Jaffe serves on over 60 permanent arbitration panels and has served on four separate PEBs, one in 2001, two in 2007, and one in 2011 in which he served as chair. Jaffe is a member of the National Academy of Arbitrators (NAA) and served as the National President of the Society of Federal Labor Relations Professionals in 1990. As an adjunct professor at the George Washington University Law School, Jaffe taught courses in labor and employment arbitration and mediation, labor law, collective bargaining and labor arbitration, and agency and partnership. He is a Charter Fellow in the American College of Employee Benefits Counsel and has arbitrated and mediated a wide variety of employee benefits disputes. He is also a Fellow in the College of Labor and Employment Lawyers. Jaffe received a B.S. from the Cornell University School of Industrial and Labor Relations and a J.D. from the George Washington University Law School.

Roberta Golick, Appointee for Member, Presidential Emergency Board No. 244
Roberta Golick has been an arbitrator and mediator since 1974, focusing on labor-management disputes. During this time, she has handled thousands of cases in both the private and public sectors. She served as the 2011-12 President of the National Academy of Arbitrators. This is Ms. Golick’s fourth presidential emergency board (PEB) appointment. She was a panel member most recently on the 2011 PEB regarding a dispute between major freight rail carriers and their unions. From 1974 to 1982, Golick served as an arbitrator/mediator at the Massachusetts Board of Conciliation and Arbitration. Golick is a Fellow in the College of Labor and Employment Lawyers, and sits on its First Circuit Credentials Committee. She is featured in the newly released documentary, The Art and Science of Labor Arbitration, which focuses on arbitrators whose careers and contributions are landmarks in labor law policy and in the resolution of industrial disputes. Golick is the 1996 recipient of the Cushing-Gavin Award, given annually by the Boston Labor Guild. She received a B.A. from Barnard College, Columbia University, and a J.D. from Boston University School of Law.

Arnold M. Zack, Appointee for Member, Presidential Emergency Board No. 244
Arnold Zack has been an arbitrator and mediator of over 5,000 labor disputes since 1957 and a member of five presidential emergency boards, serving as chair twice. He served on Presidential Emergency Board No. 243 involving a coalition of the nation’s freight carriers and two coalitions representing eleven railroad unions in 2011. He has just completed a nine year term as judge on the Asian Development Bank Administrative Tribunal. He was the president of the National Academy of Arbitrators from 1994 to 1995. From 1990 to 2000, he was the chair of the Essential Industries Dispute Settlement Board in Bermuda, and the chair of the Essential Services Dispute Settlement Board there from 1998 to 2001. He was the founder and a member of the Board of Control of the Center for Sio-Legal Studies at the University of Natal in South Africa from 1986 to 1990, where he designed dispute resolution systems for employment disputes in South Africa. He has also served and taught as a senior research associate at the Labor and Worklife Program at Harvard Law School since 1985. He is a member of the College of Labor and Employment Lawyers. He has been a Fulbright Scholar and a Wertheim Fellow. He received a B.A. from Tufts University, a J.D. from Yale Law School, and an M.P.A. from Harvard University’s Kennedy School of Government.

Amtrak LogoSeveral cars of the New York City-bound Amtrak Crescent with 218 people aboard went off the tracks in South Carolina early Monday (Nov. 25) as bags flew and jolted passengers clung to each other, authorities and passengers said.

There were no serious injuries, Amtrak said of the 207 passengers and 11 crew members aboard when the cars derailed shortly after midnight in the countryside on a frosty night with 20-degree readings from a cold front sweeping the Southeast.

Read the complete story at ABC News.

Layout 1Railway Age magazine contributing Editor Frank N. Wilner will appear on C-SPAN’s Washington Journal television show Wednesday, Nov. 27, from 8:25 a.m. to 9:15 (EST), discussing his book, Amtrak: Past, Present, Future, and answering audience call-in questions. Wilner formerly was the United Transportation Union’s director of public relations.

The Washington Journal is a forum for leading journalists and public policy makers to discuss key events and legislation.

high_speed_rail_1It may seem improbable, but the odds that faster trains are coming to the Northeast Corridor have jumped recently. That’s because beginning in 2015, the Federal Railroad Administration (FRA) is expected to finally permit modern European designs on tracks throughout the country, running side by side with heavy freight, at all times of day. This decision could cut the weight of U.S. passenger trains in half, meaning trains can go faster, accelerate more quickly, cause less wear on tracks, and get passengers to their destination in less time.

How much time? The decision by the FRA to finally shelve regulatory requirements from the 1920s means that lighter replacement train sets for the Acela could cut the trip from Boston to New York by 30 minutes (the trains can maneuver the curvy tracks of New England at higher speeds) and the faster acceleration and braking could shave 5 to 10 minutes off the trip from New York to Washington.

Read the complete story at The Daily Beast.

 

whitehouselogoToday, President Barack Obama signed an Executive Order creating a Presidential Emergency Board to help resolve an ongoing dispute between the Long Island Rail Road Company and some of its employees.
The Presidential Emergency Board will provide a structure for the two sides to resolve their disagreements.  The Presidential Emergency Board will hear evidence and, within 30 days, will deliver a report to the President recommending how the dispute should be resolved.
President Obama also announced that he intends to appoint the following members to Presidential Emergency Board No. 244:

  • Ira F. Jaffe – Chair, Presidential Emergency Board No. 244
  • Roberta Golick – Member, Presidential Emergency Board No. 244
  • Arnold M. Zack – Member, Presidential Emergency Board No. 244

SMART Transportation Division President John Previsich, who is assisting LIRR General Committee of Adjustment GO 505 with this round of negotiations, expressed satisfaction with the establishment of a presidential emergency board.
“The board members are highly respected arbitrators with years of experience in our industry and we welcome their participation in bringing this matter to a satisfactory conclusion,” Previsich said.
Ira F. Jaffe, Appointee for Chair, Presidential Emergency Board No. 244
Ira F. Jaffe has been an arbitrator and mediator of labor and employment disputes since 1981 and has presided over more than 4,500 cases in a wide variety of industries in the private and public sectors.  Mr. Jaffe serves on over 60 permanent arbitration panels and has served on four separate PEBs, one in 2001, two in 2007, and one in 2011 in which he served as Chair.  Mr. Jaffe is a member of the National Academy of Arbitrators (NAA) and served as the National President of the Society of Federal Labor Relations Professionals in 1990.  As an Adjunct Professor at the George Washington University Law School, Mr. Jaffe taught courses in labor and employment arbitration and mediation, labor law, collective bargaining and labor arbitration, and agency and partnership.  He is a Charter Fellow in the American College of Employee Benefits Counsel and has arbitrated and mediated a wide variety of employee benefits disputes.  He is also a Fellow in the College of Labor and Employment Lawyers.  Mr. Jaffe received a B.S. from the Cornell University School of Industrial and Labor Relations and a J.D. from the George Washington University Law School.
Roberta Golick, Appointee for Member, Presidential Emergency Board No. 244
Roberta Golick has been an arbitrator and mediator since 1974, focusing on labor-management disputes.  During this time, she has handled thousands of cases in both the private and public sectors.  She served as the 2011-12 President of the National Academy of Arbitrators.  This is Ms. Golick’s fourth Presidential Emergency Board (PEB) appointment.  She was a panel member most recently on the 2011 PEB regarding a dispute between major freight rail carriers and their unions.  From 1974 to 1982, Ms. Golick served as an arbitrator/mediator at the Massachusetts Board of Conciliation and Arbitration.  Ms. Golick is a Fellow in the College of Labor and Employment Lawyers, and sits on its First Circuit Credentials Committee.  She is featured in the newly released documentary, The Art and Science of Labor Arbitration, which focuses on arbitrators whose careers and contributions are landmarks in labor law policy and in the resolution of industrial disputes.  Ms. Golick is the 1996 recipient of the Cushing-Gavin Award, given annually by the Boston Labor Guild.  She received a B.A. from Barnard College, Columbia University, and a J.D. from Boston University School of Law.
Arnold M. Zack, Appointee for Member, Presidential Emergency Board No. 244
Arnold Zack has been an arbitrator and mediator of over 5,000 labor disputes since 1957 and a member of five Presidential Emergency Boards, serving as Chair twice.  He served on Presidential Emergency Board No. 243 involving a coalition of the Nation’s freight carriers and two coalitions representing eleven railroad unions in 2011.  He has just completed a nine year term as Judge on the Asian Development Bank Administrative Tribunal.  He was the President of the National Academy of Arbitrators from 1994 to 1995.  From 1990 to 2000, he was the Chair of the Essential Industries Dispute Settlement Board in Bermuda, and the Chair of the Essential Services Dispute Settlement Board there from 1998 to 2001.  He was the founder and a member of the Board of Control of the Center for Sio-Legal Studies at the University of Natal in South Africa from 1986 to 1990, where he designed dispute resolution systems for employment disputes in South Africa.  He has also served and taught as a senior research associate at the Labor and Worklife Program at Harvard Law School since 1985.  He is a member of the College of Labor and Employment Lawyers.  He has been a Fulbright Scholar and a Wertheim Fellow.  He received a B.A. from Tufts University, a J.D. from Yale Law School, and an M.P.A. from Harvard University’s Kennedy School of Government.

jfk“Those who would destroy or further limit the rights of organized labor — those who would cripple collective bargaining or prevent organization of the unorganized — do a disservice to the cause of democracy.
Fifty years or so ago the American Labor Movement was little more than a group of dreamers, and look at it now. From coast to coast, in factories, stores, warehouse and business establishments of all kinds, industrial democracy is at work.
Employees, represented by free and democratic trade unions of their own choosing, participate actively in determining their wages, hours and working conditions. Their living standards are the highest in the world. Their job rights are protected by collective bargaining agreements. They have fringe benefits that were unheard of less than a generation ago.
Our labor unions are not narrow, self-seeking groups. They have raised wages, shortened hours and provided supplemental benefits. Through collective bargaining and grievance procedures, they have brought justice and democracy to the shop floor. But their work goes beyond their own jobs, and even beyond our borders.”
Our unions have fought for aid to education, for better housing, for development of our national resources, and for saving the family-sized farms. They have spoken, not for narrow self-interest, but for the public interest and for the people.”
 

RRB_seal_150pxThe payment of a railroad retirement annuity can be affected by entitlement to social security benefits, as well as certain other government benefits. Such dual entitlement, if not reported to the Railroad Retirement Board (RRB), can result in benefit overpayments that have to be repaid, sometimes with interest and penalties. The following questions and answers describe how dual benefit payments are adjusted by the RRB for annuitants eligible for social security benefits and/or other benefit payments.

1. How are dual benefits paid to persons entitled to both railroad retirement and social security benefits?

Since 1975, if a railroad retirement annuitant is also awarded a social security benefit, the Social Security Administration determines the amount due, but a combined monthly dual benefit payment should, in most cases, be issued by the RRB after the railroad retirement annuity has been reduced for the social security benefit.

2. Why is a railroad retirement annuity reduced when a social security benefit is also payable?

The tier I portion of a railroad retirement annuity is based on both the railroad retirement and social security credits acquired by an employee and figured under social security formulas. It approximates what social security would pay if railroad work were covered by social security. Tier I benefits are, therefore, reduced by the amount of any actual social security benefit paid on the basis of nonrailroad employment, in order to prevent a duplication of benefits based on social security-covered earnings.

The tier I dual benefit reduction also applies to the annuity of an employee qualified for social security benefits on the earnings record of another person, such as a spouse. And, the tier I portion of a spouse or survivor annuity is reduced for any social security entitlement, even if the social security benefit is based on the spouse’s or survivor’s own earnings. These reductions follow principles of social security law that, in effect, limit payment to the higher of any two or more benefits payable to an individual at one time. An annuitant is required to advise the RRB if any benefits are received directly from the Social Security Administration or if those benefits increase (other than for a cost-of living increase).

However, the tier II portion of a railroad retirement annuity is based on railroad service and earnings alone, is computed under a separate formula, and is not reduced for entitlement to a social security benefit.

3. Are there any exceptions to the railroad retirement annuity reduction for social security benefits?

No. However, if an employee qualified for dual benefits before 1975 and met certain vesting requirements, he or she can receive an additional annuity amount which offsets, in part, the dual benefit reduction. This additional amount, which reflects the dual benefits payable prior to 1975, is called a vested dual benefit payment. Legislation enacted in 1974 coordinated dual railroad retirement and social security benefit payments to eliminate certain duplications, but this legislation also included a grandfather provision to preserve the pre-1975 dual benefits of persons meeting certain vesting requirements by including vested dual benefit payments in their annuities.

Awards of these vested dual benefit amounts are now limited only to vested railroad employees with dual coverage on their own earnings. Spouses and widow(er)s retiring since 1981 no longer qualify. Fewer than ten vested dual benefits were awarded in fiscal year 2013.

4. Are there any funding limitations on the payment of vested dual benefits?

Vested dual benefit payments are funded by annual appropriations from general U.S. Treasury revenues. These appropriations account for less than one percent of total financing sources for the railroad retirement system. Payment of vested dual benefits is dependent on the time and amount of such appropriations. If the appropriation in a fiscal year is for less than the estimated total vested dual benefit payments, individual payments must be reduced.

5. Can Federal, State, or local government pensions also result in dual benefit reductions in a railroad retirement annuity?

Tier I benefits for employees first eligible for a railroad retirement annuity and a Federal, State or local government pension after 1985 may be reduced for receipt of a public pension based, in part or in whole, on employment not covered by social security or railroad retirement after 1956. This may also apply to certain other payments not covered by railroad retirement or social security, such as from a non-profit organization or from a foreign government or a foreign employer. Usually, an employee’s tier I benefit will not be reduced by more than 1/2 of his or her pension from noncovered employment. However, if the employee is under age 65 and receiving a disability annuity, the tier I benefit may be reduced by an added amount if the pension from noncovered employment is a public disability benefit.

Military service pensions, payments by the Department of Veterans Affairs, or certain benefits payable by a foreign government as a result of a totalization agreement between that government and the United States will not cause a reduction.

6. How does the public service pension apply to spouse or widow(er)s’ benefits?

The tier I portion of a spouse’s or widow(er)’s annuity may be reduced for receipt of any Federal, State or local government pension separately payable to the spouse or widow(er) based on her or his own earnings. The reduction generally does not apply if the employment on which the public service pension is based was covered under the Social Security Act throughout the last 60 months of public employment. Most military service pensions and payments from the Department of Veterans Affairs will not cause a reduction. Pensions paid by a foreign government or interstate instrumentality will also not cause a reduction. For spouses and widow(er)s subject to a public service pension reduction, the tier I reduction is equal to 2/3 of the amount of the public service pension.

7. What dual benefit restrictions apply when both a husband and wife are rail employees entitled to railroad retirement annuities?

If both the employee and spouse are railroad employees and either had some railroad service before 1975, the spouse tier I amount is reduced by the amount of the railroad employee tier I to which the spouse is entitled and that initial reduction is restored in the spouse tier II amount. The spouse tier I amount cannot be reduced below zero.

If both the employee and spouse started railroad employment after 1974, the amount of any spouse or divorced spouse annuity is reduced by the amount of the employee annuity to which the spouse is also entitled.

In survivor cases, if a widow or dependent widower is also a railroad employee annuitant, and either the widow(er) or the deceased employee had 120 months of railroad service before 1975, the tier I reduction may be partially restored in the survivor tier II amount.

If either the deceased employee or the widow(er) had some railroad service before 1975 but less than 120 months of service, the widow(er)’s own employee annuity and the tier II portion of the survivor annuity would be payable to the widow(er). The tier I portion of the survivor annuity would be payable only to the extent that it exceeds the tier I portion of the widow(er)’s own employee annuity.

If the widow(er) is entitled to a railroad retirement employee annuity and neither the widow(er) nor the deceased employee had any railroad service befo
re 1975, the survivor annuity (tier I and tier II) payable to the widow(er) is reduced by the total amount of the widow(er)’s own employee annuity.

8. Can workers’ compensation or public disability benefits affect railroad retirement benefits?

If an employee is receiving a railroad retirement disability annuity, tier I benefits for the employee and spouse may, under certain circumstances, be reduced for receipt of workers’ compensation or public disability benefits.

9. How can an annuitant find out if receipt of any dual benefits might affect his or her railroad retirement annuity?

If an annuitant becomes entitled to any of the previously discussed dual benefit payments, or if there is any question as to whether a dual benefit payment requires a reduction in an annuity, he or she should contact an RRB field office by calling toll-free at (877) 772-5772. Annuitants can find the address of the RRB office serving their area by calling this number or by visiting www.rrb.gov. Most RRB offices are open to the public from 9 a.m. to 3:30 p.m., Monday through Friday, except on federal holidays.

caduceusUTU members and their dependents insured under the Railroad Employees National Early Retirement Major Medical Benefit (ERMA) Plan (GA-46000) will have their lifetime maximum amount of coverage increased, effective Jan. 1.

ERMA is a comprehensive benefits plan for employees who retire at or after age 60 with 30 years of service. The plan covers qualified employees, spouses and dependents until the employee reaches age 65. If the employee qualifies for Medicare before reaching 65, ERMA no longer covers the employee, but dependents continue coverage until the employee reaches age 65. ERMA is not applicable when any covered individual becomes Medicare eligible.

The lifetime maximum, effective Jan. 1, 2014, will be $141,400, an increase of $5,200.

The formula for increasing the lifetime maximum under ERMA was agreed upon by labor and management in 2001. The new lifetime maximum was derived by utilizing the October 2013 Consumer Price Index data for hospital and related services and physician services.

For individuals who have reached the lifetime maximum, the incremental maximum available is applied to eligible expenses submitted for dates of service on or after Jan. 1, the effective date of the new maximum.

This change will apply to all railroads and crafts participating in ERMA.

 

railyard1-150pxWASHINGTON – The Association of American Railroads Nov. 21 issued the following statement from President and CEO Edward R. Hamberger in response to the Senate Commerce Committee staff report Update on the Financial State of the Class I Freight Rail Industry.

“Unfortunately the Committee’s updated report ignores that the rail industry’s return to financial health has resulted in record private investments – not taxpayer dollars – being plowed back into the nation’s rail network that serves the needs of diverse freight shippers and passengers alike. At a time when there is pressure to reduce government spending on just about everything – including transportation infrastructure – the country’s privately owned freight railroads have, in the last three years alone, reinvested nearly $70 billion back into the rail system, including $25.5 billion in 2012. This includes billions of dollars in a new, Congressionally-mandated, state-of-the-art positive train control system that the Rail Safety Improvement Act of 2008 requires railroads to install by the end of 2015.

There is nothing wrong with success. In fact, the rail industry’s success is predicated on the fact that the balanced regulatory system in place today is working. This success should be lauded, not undermined. Freight railroads provide safe, reliable and efficient service to American businesses large and small, and help keep them competitive in domestic and world markets, all the while keeping average rates lower than where they were 30 years ago when the Staggers Act was passed.

The rail industry didn’t stand on the sidelines during the recession, we continued investing and we continued hiring. In fact, our industry has seen almost a 6 percent increase in employment the last three years and as many as one in five of all new hires are veterans. That is a track record we are proud of.

Much is riding on freight rail to continue helping deliver our recovering economy and all efforts should be focused on letting the current system work.”

Earlier in the day, Commerce, Science and Transportation Committee Chairman John D. Rockefeller IV issued an update to the 2010 Committee Majority Staff Report that examined the financial state of the rail industry, concluding that the financial performance of dominant Class I freight rail companies is at its strongest since the passage of the Staggers Act of 1980.

“The Staggers Act was designed to give a boost to the rail industry during a time when railroads were struggling – but today the railroads are enjoying tremendous financial success,” Rockefeller said. “At this point the evidence is clear that the dominant freight railroads are financially strong.”

“It is not any secret that I think that – more than three decades after the Staggers Act – the Surface Transportation Board (STB) needs to take a close hard look at whether large freight rail companies now enjoy an unfair competitive advantage,” Rockefeller added.