Railroad Retirement Bill Passes

December 13, 2001

Despite a courageous—if doomed—fight by Senators Don Nickles (R-OK) and Phil Gramm (R-TX), the Senate has passed legislation bailing out the Railroad Retirement System. The legislation would allow the Railroad Retirement Trust Fund to invest in private capital markets, but would still leave taxpayers liable for any losses suffered by the system. In response to opponents of government investment, the legislation had been amended to remove any vestiges of government control over the investment process. However, critics still pointed to enormous fiscal costs associated with the bail out.

2002 Index | 2001 Index | 2000 Index | 1999 Index | 1998 Index