Home > West's Encyclopedia of American Law > Railroad Retirement Act

The Railroad Retirement Act is a federal law (45 U.S.C.A. § 231 et seq.) enacted by Congress in 1937 that provides a special system of ANNUITY, PENSION, and death benefits to railroad workers.

Congress first passed the Railroad Retirement Act in 1934 to reward the hard work done by railroad workers, recognize the national benefits conferred by railroad work, and encourage the retirement of older railroad workers. By offering the means for railroad workers "to enjoy the closing days of their lives with peace of mind and physical comfort," Congress intended to provide jobs to younger workers and generally improve the operation of the railroads with stronger, more able bodies (H.R. Rep. No. 1711, 74th Cong., 1st Sess. 10 [1935]).

The U.S. Supreme Court rejected the first version of the act. In...