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Barrows

WASHINGTON – A former secretary-treasurer of the Brotherhood of Railroad Signalmen – Walt Barrows – is the new labor member of the Railroad Retirement Board following his Senate confirmation Sept. 27. He succeeds Butch Speakman, who chose to retire.

Barrows began his railroad career as a signalman with Norfolk & Western Railway (now part of Norfolk Southern) in 1974. Since 2004 – while holding his signalmen post — he has been the labor trustee of the National Railroad Retirement Investment Trust, a position earlier held by former UTU General Secretary and Treasurer Dan Johnson.

Separately, Democrat Harry Hoglander and Republican Thomas Beck are awaiting Senate action on their White House nominations to the National Mediation Board (NMB).

Hoglander, educated as an attorney, was nominated to a fourth three-year term to expire in June 2014. Before joining the NMB, he was a legislative aide to Rep. John Tierney (D-Mass.), where he focused on aviation and rail issues. Previously, Hoglander retired as an Air Force fighter pilot, a Trans World Airlines pilot and executive vice president of the Air Line Pilots Association.

Beck, who would succeed Republican Elizabeth Dougherty (for a three-year term expiring in 2013), currently is a Senate-confirmed member of the Federal Labor Relations Authority (FLRA), which administers labor-management relations for non-Postal Service federal employees. Previously, he was an attorney practicing labor and employment law. Beck also teaches, on a part-time basis, courses in legislation and public policy at George Mason University in Virginia.

The third member of the NMB is Democrat Linda Puchala, who was confirmed to her first three-year term in May 2009.

By Calvin Studivant
Alternate Vice President, Bus Department

In late August, a federal appeals court vacated the Federal Motor Carrier Safety Administration’s final rule requiring electronic onboard recorders.

The court said the rule does not sufficiently protect drivers from being harassed by employers to remain at the wheel when they are fatigued. The final rule was scheduled to go into effect in June 2012. A lower court, which had set aside a challenge, was told to revisit the case.

The 7th Circuit Court of Appeals said the FMCSA “needs to consider what types of harassment already exist, how frequently and to what extent harassment happens, and how an electronic device capable of contemporaneous transmission of information to a motor carrier will guard against (or fail to guard against) harassment.”

As a member of the FMCSA advisory committee, I previously voiced concern over this rule, and it is comforting that our concerns were recognized by the appeals court. I expect the lower court will instruct the FMCSA to revise the rule to include better driver protection.

Also of interest to our bus members, the National Labor Relations Board has instructed all carriers subject to the National Labor Relations Act to inform employees of their rights to organize and be represented by a labor union. This will certainly help in our efforts to organize the unorganized. See the separate article on this ruling elsewhere in this issue of the newspaper.

Turning to news of our bus locals, members of Local 1715, Charlotte, N.C., recognize the quality of UTU representation. In recent weeks, three members were returned to work following successful processing of their grievances.

Additionally, the UTU has prevailed in 14 grievances that put $1,000 in back pay into the wallets of each of these Local 1715 members.

We also have begun contract negotiations with the carrier on behalf of Local 1715 drivers. As part of this process, we are restoring respect lost while represented by another organization prior to the UTU representation election victory earlier this year. We are in the process of delivering improved working conditions on the Charlotte property by modifying tentative contracts agreed to by the other organization.

Local 1715 also has completed its local elections. Kevin Moss was elected general chairperson, Hasson Trent was elected vice general chairperson, and Bruce Wright was elected local president. We are very proud of these new officers and the members.

Also in negotiations is Local 172 in Darby, Pa., where Vice President Vic Baffoni is assisting at the bargaining table. 

Amtrak LogoWASHINGTON – Just when federal funding for high-speed rail appeared dead as a rusted rail spike, Senate Democratic Leader Dick Durbin of Illinois exercised his clout and reopened the door – if only slightly.

On Sept. 20, the Senate Transportation Appropriations Committee voted to zero-out all federal funds for high-speed rail. Coming on the heels of a similar House Transportation Appropriations Subcommittee vote, Sen. Frank Lautenberg (D-N.J.) – one of the most ardent congressional supporters of high-speed rail – declared that  elimination of high-speed rail funding is “a casualty of the cuts mandated in the debt-limit deal.”

But when the entire Senate Appropriations Committee met Sept. 21, Durbin was successful in having the entire committee overrule the transportation subcommittee and, instead, approve $100 million for high-speed funding for fiscal year 2012.

True, the $100 million, while seeming a large sum, is relatively small given the hundreds of billions of dollars required to build a series of high-speed rail lines in America. Consider that President Obama, earlier in the year, had urged $8 billion for high-speed rail in FY 2012, on top of $10.1 billion previously approved by Congress – with $7 billion of that $10.1 billion already allocated to numerous high-speed rail proposals nationwide.

With the door for high-speed rail funding reopened, the battle now turns to the House and Senate floors, where more money might be appropriated when the final votes are cast for FY 2012 high-speed rail funding.

Amtrak funding also faces a tough battle in the House and Senate.

In the Senate, appropriators are recommending $544 million in Amtrak operating subsidies for FY 2012 ($18 million less than FY 2011 funding) plus $937 million toward capital spending and debt service (an increase of $15 million from the FY 2011 appropriation).

But In the House, appropriators are recommending considerably less for Amtrak in FY 2012 — $227 million for operating subsidies and $899 for capital and debt service.

Also awaiting further House action is a House Transportation Appropriations Subcommittee recommendation to eliminate all federal funding for state-supported Amtrak service in FY 2012. No action on that anti-Amtrak initiative has surfaced in the Senate.

It is unlikely that the House and Senate will reach agreement on FY 2012 Amtrak funding prior to the start of the new fiscal year Oct. 1. More likely is a continuing resolution that will extend FY 2011 funding levels into FY 2012 while lawmakers continue debating FY 2012 funding levels.

The standard basic daily and mileage rates of pay negotiated under the new national rail contract are now available at smart-union.org/td/.

The rate tables pertain to employees in the crafts of conductor, yardman, brakeman, engineer and fireman/hostler who are covered by the national contract and are retroactive to July 1, 2010.

The ratified contract covers some 38,000 UTU members employed by BNSF, CSX, Kansas City Southern, Norfolk Southern, Soo Line, Union Pacific and numerous smaller carriers – all represented in national handling by the rail industry’s National Carriers’ Conference Committee.

To view the rates, select “Documents” in the blue-line menu bar near the top of the UTU homepage, then select “Rates of Pay.” For a direct link to the rate tables, click here.

By James Stem
UTU National Legislative Director

Congress is back from its August recess and eyes are focused on the “Super Committee” of House and Senate members charged with finding $1.5 trillion in budget cuts over the next 10 years.

Should that committee fail to agree — and that is likely — there is an automatic triggering mechanism to cut $1.5 trillion split evenly between defense and discretionary spending.  
 
We will be working to see that Amtrak, transit, essential air service, the National Labor Relations Board and the National Mediation Board are adequately funded. Our fear is all these vital entities will take some financial hit, but we will do our best to preserve funding by visiting, speaking with and educating lawmakers.

We also will continue pursuing hours-of-service technical corrections and improvements to the Family and Medical Leave Act for operating rail employees.

We thought 2011 was an “off year” concerning elections. How wrong that was. 

The assault on state workers’ rights brought legislative recalls in Wisconsin, and a big legislative referral is on tap in November in Ohio. The UTU Collective Bargaining Defense Fund and the UTU PAC are at work protecting basic rights of collective bargaining.

In August, there were recall elections of nine Wisconsin state senators — three Democrats and six Republicans — with all three Democrats easily re-elected and two of the anti-labor Republicans defeated.

The Wisconsin state senate, while still under control by Republican supporters of Gov. Scott Walker, has had the Republican majority reduced to a single seat. One of those Republicans is a moderate whom we hope will help bring reason to that chamber.  

The UTU Collective Bargaining Defense Fund played a meaningful part in the Wisconsin elections. Wisconsin State Legislative Director Tim Deneen worked with our political consultant, Dean Mitchell, and our Washington office to ensure our members were registered to vote and were informed about the candidates’ positions. 

While we were heavily outspent by far-right anti-labor national groups, it was the votes actually cast that mattered. In the end, we showed that labor will not sit back and accept this assault on collective bargaining rights. We are very proud of the 98 percent of our active and retired members who were registered to vote in Wisconsin.

Now, it’s on to Ohio, where we intend to have 98 percent of our active and retired members and their families registered to vote.

Recall that the Ohio legislature passed Senate Bill 5 that repealed collective bargaining rights for public employees, and Gov. John Kasich signed it into law.  Fortunately, Ohio has a referral process, and that legislation is on hold and will be voted on in November.

The UTU Collective Bargaining Defense Fund will be working hard in Ohio to defeat this measure. Ohio State Legislative Director Glenn Newsom has been coordinating with Dean Mitchell to urge UTU members and their families to register to vote. They will be doing informational mailings about the significance of the vote. 

While we can’t raise the money anti-labor extremists can for these efforts, we can work to encourage UTU members and their families to register to vote, ensure they are informed on the issues, and that they cast ballots.

In the end, it’s not the amount of money that is spent. It’s the votes cast.

If you or a family member is not registered to vote in Ohio, please do so today.  If you need assistance, call the National Legislative Office at (202) 543-7714 for assistance. 

Financial fraud can empty your life savings. Here are 10 steps suggested by best-selling author Charles Murray.

  1. Every deal is a potential scam: Recognize that fraud is an act of deceit by one party intended to induce another to part with something of value.
  2. Map out your goals before shopping or investing: There’s a difference between “buying” and “being sold.”
  3. Avoid mixing business with pleasure: According to the National Institute of Justice, the attempt to defraud is more successful if a person knows or knows of the offender.
  4. Don’t get greedy: Remain calm and dispassionate.
  5. Be suspicious of “inside information,” “hot tips” and “one-time offers”: Why you instead of Tom-Dick-and-Harry?
  6. Educate yourself: Beware of getting all your information from the seller.
  7. Double check all facts: A cheat doesn’t want himself or his deal scrutinized.
  8. Don’t wilt when the heat is turned up: It takes a secure person to say “no” to pressure and manipulation.
  9. A promise is only as good as the person behind it.
  10. Scams copy the same methods used in legitimate business dealings: Spotting the difference can be difficult. Five tell-tale signs:

• Something is promised that borders between reasonable and “too good to be true”;
• Victims typically know or know of the swindler;
• A sense of urgency exists;
• A cheat doesn’t want himself or the deal scrutinized;
• High-pressure sales tactics are used.

There are many investment instruments including your own UTUIA annuities that are available in which to place retirement funds that can provide the necessary security and still provide a cash stream in retirement years.
In speaking with a financial adviser, find out what their experience has been. Check their credentials and demand other client references. And never write a check directly to an individual. Your payment should be to the investment firm or to the investment fund itself. A request for direct payment to an individual is a big red flag!
Remember, your retirement funds represent a lifetime of savings, and there is no “do-over.”

Medicare is the primary health insurance for retirees and their spouses. It is available for those over age 65, those under 65 with certain disabilities, and those of any age with permanent kidney failure. It consists of Parts A, B, C and D.

Part A helps cover inpatient care in hospitals and a skilled nursing facility, hospice and home health care.

Part B helps cover doctors’ services, hospital outpatient care and home health care, as well as some preventive services to help maintain your health and to keep certain illnesses from getting worse.

Part C is a Medicare advantage plan similar to an HMO or PPO — health plans run by Medicare-approved private insurance companies. Medicare advantage plans generally include Parts A, B and D.

Part D is a prescription drug program provided by a Medicare-approved private insurance company to help cover the cost of prescription drugs.

You should enroll in Medicare Parts A, B and D when you are first eligible. If you delay enrollment, you will be subject to additional costs for the coverage.

Railroad employees should call the Railroad Retirement Board’s toll-free information line at (877) 772-5772 for enrollment and other information, or Palmetto GBA at (800) 833-4455.

Non-railroad employees should call Medicare at (800) 633-4227, or visit http://www.medicare.gov.

Medicare can send you a handbook, “Medicare & You,” explaining all aspects of Medicare, or the handbook may be ordered or downloaded at the Medicare website.

How long will you live after you retire, and will you have enough money to live on comfortably?

Good question. That’s why – before you retire – you should think about post-retirement economic security, because few things could be worse than money running out during what are supposed to be carefree years.

A balanced retirement portfolio should resemble a three-legged stool.

The first leg is your Tier I Railroad Retirement, Social Security or CalPERS (the California retirement system for public employees), plus Tier II Railroad Retirement and/or an employer pension.

The second leg is the equity in your home, plus your personal savings, such as certificates of deposit and mutual funds.

The third leg of this financial stool are annuities, IRAs, 401(k) plans and whole life insurance.

These three financial legs are the assets to support you through retirement. The fewer legs, or the lower value of any legs, could mean a less secure financial situation during retirement.

Determining available assets before you retire is essential. You may, for example, choose to wait another year or two before retiring and build up assets in one or more legs of your financial stool. 

Younger members are wise to consider these financial legs long before they retire.

The UTU Insurance Association can help build the third leg of your financial stool prior to, and even during, retirement.

UTUIA whole life policies provide a death benefit while accumulating cash value. The death benefit protects your surviving family if you die; and the cash value becomes a source of tax-deferred savings available during your retirement years.

UTUIA annuities and individual retirement accounts (IRAs) earn guaranteed interest that is tax deferred until you draw down the balance. You may invest in UTUIA annuities up to age 85.

Existing IRAs and/or employer 401(k) plans may be rolled over into a UTUIA IRA.

To learn how the UTUIA can help make your retirement more secure, talk with a UTUIA field supervisor, call the UTUIA toll-free line at (800) 558-8842, or click here.

To apply for Railroad Retirement or Social Security benefits, you must provide certain information, and it is suggested you begin the process at least three months prior to your anticipated retirement date.
You will need the following information to register successfully for benefits:

  • Proof of age: An original birth certificate or a certified copy (not a photocopy). If a birth certificate is not available, the Railroad Retirement Board or Social Security will advise you how to proceed.
  • Proof of marriage: An original or a certified copy (not a photocopy) of the marriage certificate.
  • Proof of military service. To be eligible for military credits, you will need a copy of your discharge papers (DD-214). Note: When you were discharged, you likely were encouraged to file a copy of your DD-214 with the recorder of deeds in your hometown.
  • A copy of your most recent IRS form W-2 from your employer (filed with your tax return).

Railroad employees contemplating retirement are eligible to receive a “Retirement Made Easy” kit from UnitedHealthcare. To obtain the kit, rail employees should call UnitedHealthcare at (800) 842-5252.
Also, if you have dependent children, you should have available original or certified copies of their birth certificates.

After a lifetime of hard work, UTU rail, bus and airline members look forward to a secure retirement.

In an ideal world, it would be that simple. In the real world, careful planning and attention to detail are essential.

Topping the list of retirement concerns are money and health-care insurance; but you also must present certain documentation prior to receiving benefits.

Sources of income

As a rule of thumb, between 70 and 80 percent of pre-retirement income is needed to enjoy a comfortable retirement, says the Social Security Administration.

Neither Railroad Retirement (covering career railroad workers), Social Security nor CalPERS (covering certain California public transit agency workers) was intended to be a retirees’ sole source of income, and thus will replace only about 40 percent of pre-retirement income, says the Social Security Administration.

Railroad Retirement, Social Security and CalPERS retirement benefits should be thought of as part of a three-legged financial security stool — the other two legs to include other investments, such as your home equity, certificates of deposit, individual retirement accounts (IRAs), a 401(k) savings plan and whole life insurance.

Those taking early retirement, or retiring on a disability, may be eligible for certain supplemental benefits until they reach full retirement age. If you are retiring early, you should determine from your employer, Medicare and/or Railroad Retirement, Social Security or CalPERS, what supplemental benefits may be available to you.

Monthly benefits

Railroad Retirement and Social Security annuitants and their spouses will receive monthly benefit checks directly from the federal government.

It is wise to arrange, when applying for retirement benefits, to have the checks deposited electronically into your bank account.

Whether it’s Railroad Retirement, Social Security or CalPERS, those agencies will respond to your request for estimates of monthly retirement benefits available to you and your spouse. One of your first pre-retirement chores should be to obtain this estimate, because those benefits will be the foundation of your post-retirement income. You may also wish to speak with a certified financial planner, and/or a UTUIA field representative, about post-retirement financial issues.

Time to retire

Filing for retirement benefits — and investigating Medicare health care options – should begin at least three months prior to your planned retirement date.

Filing for benefits generally is accomplished by visiting a Railroad Retirement, Social Security or CalPERS field office, where you will be asked to provide various documents necessary for the processing of retirement benefits payable to you and your spouse. Information on the location of field offices may be obtained by calling the toll-free telephone numbers listed on this page.

During the pre-retirement interview, you may determine that there is an advantage to you or your spouse waiting a little longer to draw retirement benefits. Be sure to enquire about limitations on post-retirement earnings, and how such earnings may reduce Railroad Retirement, Social Security or CalPERS benefits.

With some advance planning and attention to detail, the transition from employment to retirement should be smooth sailing. The best time to begin the process is now!