Re: Are Independent Contractors Committing RRB Fraud?

The question is: Are they working FRA or OSHA and are they paying into the RRB (if they are FRA)? The big problem is where retired railroader are working as independent contractors and failing to report it to the RRB. They could lose their pensions and become felons.

Well… There is one guy who is a admin for DART transit who helps run the commuter rail…

But DART in Del. is mostly a bus company///[4:-)]

In one respect it seems like a double standard. If one should obtain a SSA pension, that person can still work a job under SSA. If fact after you reach your maximum retirement age under SSA you can remain working your current job plus draw full pension until one goes over the allotted monthly/annual amounts to trigger a reduction.

Right now there are not enough rail workers to go around. It would seem RRT could allow Class I retirees to work for Class II or lower railroads and pay into RRB. This would increase the pension fund, give the smaller railroads skilled employees and further aid the smaller roads new hire training.

I am retired from a Class I and I’m not looking for anything near a full time job but, I would not mind working for a smaller road to fill vacation vacancies, etc. The small roads can not afford the guaranteed extra boards of the Class I’s so I see it as an answer to their problems while keeping their costs under controll.

I am suggesting that there is some illegal activity going on. I know several people who are contracting, but they never checked into it. The contract companies are telling them that its ok, but after checking with the RRB it seems that they are in big trouble. All I am trying to say is, if its sounds too good to be true, it probably is. If you get a felony you will lose your pension. If you are working illegally, you will get a felony charge. Do you think that the RRB looks into every single retiree’s working habits? If you have to set up a corporation to mask your earnings, then you are probably going to get dinged by the RRB at some point. Also, if you are teaching you are probably ok. But, if you are licensed (RCO instructor) and working on the ground, then you are screwed. If your job is considerd OJT then you are probably screwed.

It is spring and the sap is rising. If anyone is worried check the RRB website under rules for current connection. If you have 25 years of service and were laid off you can work for anyone you want and not break the connection. You can also work as a independent contractor.

But, the can you draw a pension and work on the ground under jurisdiction of the hours of service? RCO instructiors are under the hours of service; therefore, if you are retired and working in this field, then you are in violation. If you are teaching a class, then you are not in violation, because the hours of service is not in play. You have to consider which job is violating the RRB. Yes, read the RRB website, but please talk to someone at the RRB (in Chicago, not the field offices) before you start contracting. There are many levels that must be considered before your jump into the independent contractor field. I know several people who just found out that they have to return their pensions for each month they worked in. Also, some are being investigated for felony charges. Don’t make their mistake. Check it out first, and don’t trust anyone’s word (even on this site) because the only word that matters is the RRB. They are judge, jury and executioner.

Railroad Retirement Benifits have nothing to do with whether you are subject to the hours of service. Beleve it their are thousands of railroad employees paying into RRR and earning benifts that are not and never were subject to the hours of service. I think we have got a troll.

How about you cite and quote specific instances?

Beyond the usual “I know a guy who knows a guys who worked there” type of stuff.

What you may consider a “work” may not be consider work by the RRRB.

Consulting, and consulting alone is not a violation.

I am in T&E service…if I retired, drew my RRRB annuity, and consulted, I would not be in violation…if on the other hand, I performed service for a carrier in T&E service, and earned a salary above the RRRB threshold amount, that’s a different story.

So give us some concrete proof beyond speculation.

And, as Mr. Wilcox pointed out, hours of service have nothing to do with it…I agree with you Bob, it does smell a little like a troll…

The Social Security Administration’s regulations (and RRB’s, too, probably) are pretty explicit: being a “contract employee” means more than just using one’s own tools. If the people for whom you work can pretty well dictate when, where and how you are to do your job, and regardless of whether you are “on call” or expected to be there at fixed hours, you are an employee and both you and the employer are subject to FICA taxes.

I feel like a spoilsport bringing this up. But the good news is that if in any year you earn more than some prior years’s earnings that were also subject to Social Security taxation and used to derive your monthly benefit, there’s a good chance your retirement payment will go up.

Check out the Railroad Retirement Board “Coverage decisions” (www.rrb.gov, click on “more” on the home page) you will find some cases dealing with the contractors. Each decision will explain how it is determined if one is a for hire contractor or considered an employee.

Al-in chgo has part of the right answer.

If if Quacks like a TROLL. RMR