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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!

NMB logo; National Mediation BoardWASHINGTON – Most Railway Labor Act Section 3 arbitration cases will grind to a halt Sept. 30 if Congress does not pass a new appropriation for the National Mediation Board.

The federal government’s fiscal year ends Sept. 30 and Congress has not passed an appropriation to fund NMB-financed arbitrations for the 2012 fiscal year beginning Oct. 1.

The NMB  has thus advised arbitrators that they “cannot engage in any Section 3 work for fiscal year 2012 [beginning Oct. 1] until you have received a work order for fiscal year 2012, and that order has been signed and returned to the NMB.

“As a result, arbitrators do not have the authority to schedule any hearings for fiscal Year 2012. All arbitrators and parties are notified that no funds will be authorized for travel for the month of October,” said the NMB.

In the absence of a fiscal year 2012 appropriation, Congress could still pass – prior to Sept. 30 — what is known as a “continuing resolution,” which would extend fiscal year 2011 funding into fiscal year 2012. If that occurs, the NMB said it “will immediately issue work orders to arbitrators.”

The NMB said it “will make every effort to authorize some days that may be utilized for decisions in accordance with the NMB’s policy for the past five fiscal years. However, these authorizations will be made with minimal advance notice. These days may be used for hearing cases if no travel is involved (either because the parties travel to the neutral, or because the case is heard using the NMB’s online technology). The Anti-Deficiency Act precludes arbitrators from hearing cases for free,” said the NMB.

Questions should be directed to Darrell Dancer at the NMB at (202) 692-5055.

MARRERO, La. – CSX conductor Jonathan Batieste, 29, with a wife and four young daughters between the ages of three and 12, died unexpectedly Aug. 22 following a motorcycle accident.
Batieste, a member of UTU Local 1066 in New Orleans, signed on with CSX just 13 months ago. He was recovering from his injuries and was undergoing physical therapy when he developed a blood clot that claimed his life.
“This young family is in need of help,” said Louisiana State Legislative Director Gary Devall.
Donations may be sent to the “Jonathan Batieste Donation Account” at Capital One Bank, 3800 General de Gaulle Drive, New Orleans, LA 70114.

If you retired from railroad service on or after April 1, 1967, you may be eligible for a $2,000 retiree life insurance benefit.
Benefits are administered by MetLife for all retirees from railroads participating in the National Railway Carriers’ / UTU Health & Welfare Plan and the Railroad Employees’ National Health and Welfare Plan (formerly GA-23000).
To file a claim, or to obtain a change-of-beneficiary card, call the following toll-free number:

MetLife 1 (800) 310-7770.

Those who retire on disability are urged to contact MetLife soon after their retirement to ensure their eligibility for this benefit.
Retirees are urged to keep this notice with their other important documents and to keep the designated beneficiary up to date.
When filing a claim, it will be very helpful to know the date the employee last worked, the name of the employing railroad, and the employee’s Social Security number. These items will assist in the prompt processing of claims.

WASHINGTON – Federal Transit Administration bus-project and other transit funding – in danger owing to political squabbling — will remain in place at least through March 31, 2012, following House and Senate action to extend temporarily, for the eighth time since 2009, highway taxes that fund transit programs.

The House and Senate also agreed Sept. 15 to a new four-month extension of Federal Aviation Administration taxes that fund the Essential Air Services program vital to regional airlines that employ UTU-represented pilots and flight attendants. It was the 22nd temporary extension for this program since 2007.

The president said he will sign the temporary extensions into law, allowing more time for the House and Senate to continue attempts at reaching compromise on a permanent extension of transit and EAS programs that have been stalled for years.

The highway bill extension ensures that more than $4 billion from the Highway Trust Fund for Federal Transit Administration formula and bus programs will remain available for spending through March 31. Disagreement between the House and Senate on the number of years to authorize a new highway/transit spending bill is the reason for that stall.

A permanent FAA reauthorization, which includes the EAS program, is stalled over an inability to agree on future EAS subsidies, and an attempt by House Republicans to include in the bill a provision overturning a 2010 National Mediation Board rulemaking. That rulemaking changed the rules for representation elections from counting those not voting as “no” votes, to determining outcomes based only on those voting.

The sister of UTU General Chairperson Anthony Simon (Long Island Rail Road, GO 505) died Sept. 15 following a long-struggle with cancer.
Cards of condolence may be sent to Simon at his general committee office at Suite 3, 200-B West Main St., Babylon, N.Y. 11702.

By General Secretary & Treasurer Kim Thompson

As a young railroad employee, I wondered why we had the wages and benefits that we had, why we had rules for assignments and for the work we performed. I wondered what could be done to make things right when things didn’t seem right. Only then did I attend my first local meeting.

I discovered local officers conduct the meeting in an orderly fashion and officers give reports related to their positions. I discovered that due to our collectively bargained agreement, a grievance process exists through which we can submit claims for violation of our rights. But what are those rights? What is the contract?

Further interest revealed that our “contract” is actually a compendium of many agreements made over a period of time. The Railway Labor Act provides that all agreements remain in effect until changed. They do not expire. This means that interpretation is required as to what earlier agreements have been changed by later agreements, and interpretation can be made only by the parties to agreement — the UTU and the carriers.

Had my local not held regular meetings, I would not have had an opportunity to learn the basics of how my union works. Had my local officers not conducted meetings in an orderly and professional manner, I would not have learned about my contract and how it is applied.

I don’t recall ever being invited to attend my first local meeting. Maybe I was invited, but too self-centered or all-knowing to care. Maybe I was too busy to take the time.

I have learned much about this industry in the years since my early local meetings, but the foundation for my understanding began there. I am eternally grateful for that opportunity, and for the desire to learn from a reliable source.

My message to you is to attend your local meetings.

Be active and take part in discussions. Ask questions of your local officers.  If so moved, run for local office. The more you become involved, the more of an asset you are to your union. 

Most importantly, ask a member to attend your local meeting, especially the young members. We can all make a difference.