Max Baucus: “The railroad retirement trust fund has built up a large balance. The question is what we should do about that. We have…”

“The railroad retirement trust fund has built up a large balance. The question is what we should do about that. We have decided in this legislation that the balance should be reduced by lowering the taxes the railroad companies have to pay--and they are extraordinarily high taxes today--and also increasing survivor benefits, for example, and the early retirement age which conforms with current practices in other industries. The charge is made that the balance will be too low, and that is going to jeopardize the budget, it is going to jeopardize the trust fund. The fact is this legislation provides for many safeguards; there are actuarial reports, financial statements, and reports to the contrary. The actuary himself has said at no time, even under this legislation, will the balance in the trust fund be at such a level that it jeopardizes the fund or payments to the beneficiaries or cause undue strain on the railroad companies.”