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capitol Twelve Pacific Rim countries on Monday reached the most ambitious trade pact in a generation, aiming to liberalize commerce in 40 percent of the world’s economy in a deal that faces skepticism from U.S. lawmakers.

The Trans-Pacific Partnership (TPP) pact struck in Atlanta after marathon talks could reshape industries, change the cost of products from cheese to cancer treatments and have repercussions for drug companies and automakers.

Tired negotiators worked round the clock over the weekend to settle tough issues such as monopoly rights for new biotech drugs. New Zealand’s demand for greater access for its dairy exports was only settled at 5 a.m. EDT (0900 GMT) on Monday.

Read more from Washington Examiner.

Tags against union, Senate Republicans

Railroad retirement beneficiaries are reminded that receipt of a private railroad pension may reduce the amount of a supplemental annuity payable by the Railroad Retirement Board (RRB). The following questions and answers provide information on this subject, as well as how distributions from a 401(k) plan affect supplemental annuities, and whether railroad employee contributions to 401(k) plans are subject to railroad retirement payroll taxes.
1. What are the eligibility requirements for a supplemental annuity?
Individuals receiving a railroad retirement age and service, or disability annuity, can be paid a monthly supplemental annuity at age 60, if the employee has at least 30 years of creditable railroad service, or at age 65 with at least 25 years of service. (Disabled annuitants under full retirement age, which ranges from age 65 to 67, depending on the year of birth, must relinquish employment rights in order for a supplemental annuity to be paid by the RRB.) A “current connection” with the railroad industry is also required, as is at least one month of creditable rail service before October 1981. The maximum monthly supplemental annuity rate is $43.
2. What effect does the receipt of a private railroad pension have on the payment of a supplemental annuity?
If a retired employee also receives a private pension funded entirely or in part by a railroad employer, the supplemental annuity is permanently reduced by the amount of the monthly pension benefit that is based on the railroad employer’s contributions. However, if the employer reduces the pension for the employee’s entitlement to a supplemental annuity, the amount by which the pension is reduced is restored to the supplemental annuity (but does not raise it over the $43 maximum). There is no reduction for a pension paid by a railroad labor organization.
3. What if an employee elects to receive the pension in a lump-sum payment instead of as a monthly benefit?
If a retired employee elects to receive his or her pension in a lump-sum payment instead of as a monthly benefit, the supplemental annuity is reduced in the same way as it would be if the employee was receiving the monthly benefit. If the lump sum is paid in installments, the installment payments are not considered monthly benefit payments, but part of the single, lump-sum payment.
4. Does the receipt of a 401(k) plan distribution reduce the amount of a supplemental annuity?
No. In Legal Opinion L-2014-2, issued January 13, 2014, the RRB’s General Counsel determined that 401(k) plans should not be considered supplemental pension plans as defined by the Railroad Retirement Act and, therefore, employee supplemental annuities should not be reduced due to the receipt of 401 (k) distributions.
In accordance with the legal opinion, the RRB removed the 401(k) distribution reduction from the supplemental annuities of affected beneficiaries effective January 1, 2014, or the supplemental annuity beginning date, whichever date is later. Refunds of the amounts previously deducted for the 401(k) distribution reduction (beginning on the applicable date above) were issued to those beneficiaries in July 2015.
5. Are employee contributions to a 401(k) plan subject to railroad retirement Tier I and Tier II payroll taxes?
Yes. Federal budget legislation enacted in 1989 and effective January 1, 1990, provided that employee contributions to 401(k) plans are subject to railroad retirement payroll taxes and brought the treatment of 401(k) plans under railroad retirement law into conformity with the treatment of such plans under social security law. Consequently, employee contributions to a 401(k) plan are also treated as creditable compensation for railroad retirement benefit purposes. For example, an employee earning $40,000 a year, but who has 10 percent of his earnings deferred under a 401(k) plan, would have only $36,000 reported to the IRS as earnings subject to Federal income tax. However, the entire $40,000 would be subject to railroad retirement payroll taxes and therefore creditable as compensation under the Railroad Retirement Act.
6. How can a person get more information about the effect of private rail pensions and 401(k) plan payments on supplemental annuities?
Persons can contact an RRB field office for more information via the agency’s website, www.rrb.gov, or by calling toll-free at 1-877-772-5772. Most RRB offices are open to the public from 9:00 a.m. to 3:30 p.m., Monday through Friday, except on Federal holidays.

Tags Railroad Retirement Board, RRB

WASHINGTON – The U.S. Department of Transportation’s Federal Transit Administration (FTA) is announcing the availability of $22.5 million through the latest round of the Low or No Emission Vehicle Deployment Program (LoNo) that will help deploy the next generation of energy-efficient vehicles nationwide. The funds are intended to encourage adoption of green technologies in transit buses, such as hydrogen fuel cells and electric and hybrid engines.

“These grants will help ensure that the future of mass transit is energy-efficient and friendly to the environment,” said U.S. Transportation Secretary Anthony Foxx. “This funding will reduce our dependence on fossil fuels and support the growing sustainable energy industry in the United States.”

The FTA’s Low or No Emission Vehicle Deployment Program was established under the Moving Ahead for Progress in the 21st Century Act (MAP-21). It focuses on commercializing the cleanest and most energy-efficient U.S.-made transit buses to help reduce emissions like carbon dioxide and carbon monoxide. The LoNo program builds on the success of FTA’s National Fuel Cell Bus Program, which invested in the research, development and testing of alternative fuels and related equipment for the transit industry.

A Notice of Funding Availability for the FTA LoNo Program can be found in the Federal Register. The previous round of LoNo funding, announced in February 2015, awarded $55 million in grants to ten organizations nationwide.

“The LoNo program has helped deploy environmentally-sound, technologically-advanced vehicles across the country, providing a better riding experience for passengers and improving public health,” said Acting FTA Administrator Therese McMillan. “By reducing fuel and maintenance costs, these modern vehicles are a great public investment – saving taxpayer money in the long run while powering innovative American enterprises.”

FTA will award the LoNo funds on a competitive basis to transit agencies and state transportation departments working either independently or jointly with bus manufacturers already making low- and zero-emission buses. Priority will be given to proposals that, among other criteria:

Use tested bus models with proven effectiveness, especially zero-emission models;
Exhibit strong transit agency and community commitment, including technical and project management skills; and
Demonstrate understanding of and accommodation for public safety.

In addition, all LoNo procurements will have to follow FTA Buy America regulations and undergo Bus Testing at FTA’s facility in Altoona, Pa.

Of the $22.5 million available in LoNo grant funds, a minimum of $3.0 million is available to support facilities and related equipment. Transit agencies may also use a portion of their annual FTA formula funds to purchase additional vehicles.

In addition to their environmental benefits, LoNo transit buses will, in the long run, help transit agencies save money on fuel and maintenance costs. According to the National Renewable Energy Laboratory, zero-emission buses can achieve up to 87% greater fuel economy compared to buses running on diesel and other fuels.

Tags DOT, FTA, grants, low emission buses

Portland, Maine — A bankruptcy judge on Thursday morning will consider approval of the bankruptcy reorganization plan for the Montreal, Maine and Atlantic Railway.

The railroad was responsible for an oil train derailment in 2013 that killed 48 people, leveled the downtown of Lac-Megantic, Quebec, and became a flashpoint for regulators in the United States and Canada to issue new safety standards for trains carrying flammable fuels.

U.S. Bankruptcy Judge Peter Cary began hearing motions to confirm the liquidation plan for the railroad at 9 a.m., first dealing with a motion from Canadian Pacific Railway requesting unredacted settlement agreements between the bankruptcy estate and 24 other parties.