The Deseret News (Salt Lake City, UT)

December 22, 2001, Saturday

SECTION: WIRE; Pg. A03

New law OKs investing of rail retirement funds

WASHINGTON (AP) -- President Bush signed legislation Friday that would allow, for the first time, a $15 billion railroad retirement fund to be invested in stocks and bonds. Bush signed the Railroad Retirement and Survivors Improvement Act of 2001 with neither fanfare nor comment.

The bill would cut payroll taxes for rail companies; allow workers with 30 years of service to retire at age 60, down from 62; and increase benefits for surviving spouses of railroad retirees by an average of $300 a month, according to the Association of American Railroads.

Rail retirement benefits are paid under a 1930s-era program older than Social Security. The legislation would move $15.6 billion out of lower-earning Treasury bonds and into private markets.