Message to the Congress Transmitting the Annual Report of the Railroad Retirement Board
September 25, 1986
To the Congress of the United States:
I hereby submit to the Congress the Annual Report of the Railroad Retirement Board for Fiscal Year 1985, pursuant to the provisions of Section 7(b)(6) of the Railroad Retirement Act, enacted October 16, 1974, and Section 12(1) of the Railroad Unemployment Insurance Act, enacted June 25, 1938.
The Railroad Retirement Board's chief actuary informs me he anticipates cash-flow problems in the rail industry pension fund, and states that ``an upward adjustment in financing can no longer be regarded as premature.'' Refinancing legislation enacted in 1974, 1981, and 1983 has been required to prevent the rail pension fund from going broke three times in the last decade, and significant, constant declines in rail employment levels continue to deteriorate rail pension assets. With yet another financial crisis threatening the pension fund's ability to pay railroad retirees' benefits, the Administration agrees with the Board's chief actuary, Board Chairman Gielow, and Board Member Chamberlain that measures are needed now to forestall financing problems. I therefore concur with Mr. Chamberlain that raising rail management pension contributions 1.5% on January 1, 1987, is a prudent course to follow.
The White House,
September 25, 1986.