Federal Railroad Retirement Act Goes into Effect
By the early 1930s, railroad workers wanted a way to protect their pension payments, which were being negatively affected by declining revenues and benefit inequities among pensioners. Workers banded together and requested government action; the railroads, in turn, proposed a compromise. The Railroad Retirement Act of 1934 was struck down a year later, however, and a new version was passed in 1935. By 1937, the railroads and unions at last agreed on a way to incorporate existing pension plans into a plan regulated by the U.S. government.