Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: MONDAY, March 5, 1990 TAG: 9003052361
SECTION: VIRGINIA PAGE: A/1 EDITION: EVENING
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Medium
Trout, a retired economic development specialist for Norfolk Southern, had planned to resign because he thought his railroad pension would be reduced if he remained on council.
Trout, 59, thought he would start receiving a pension next month when he reaches 60.
But he said today he has learned that he won't be eligible for a pension until he reaches 62.
Because of the unexpected development, Trout, a Democrat, said he will run as an independent and seek a new term in the May 1 election.
Councilman Howard Musser, School Board member William White and James Harvey, a former councilman, were nominated by Democrats at a mass meeting on Saturday.
Earlier this year, Trout said, he inquired about his pension at the U.S. Railroad Retirement Board's Roanoke office. He said he was told his benefits would be reduced if he remained on council because he would be considered an employee.
Federal law regulates railroad pensions and the reduction in benefits for those who are employed when they begin receiving a pension.
Trout said he was told then that his pension would be reduced even if he refused to accept his $12,000 salary as a councilman because he would still be considered employed.
On Feb. 23, he announced that he was going to resign from council because he said the financial sacrifice was too large for him to remain on council.
Trout said he had assumed that he would be eligible for a pension when he reached 60 because he had worked for the railroad for 29 years before he accepted an early retirement buyout from NS when he was 57.
Trout said he thought the five-year buyout for his early retirement would provide enough additional credit for service so he would have 30 years of credit when he reached 60.
Railroad employees must have 30 years or 360 months of creditable service in order to receive a pension before they reach 62.
But P.J. Gilmer, NS's director of benefits, notified Trout late last week that he apparently won't be eligible for a pension until he reaches 62 because he has only 29 years of service (348 months).
In a letter to Trout that was dated March 1, Gilmer said:
"We recently read the announcement in the Roanoke Times & World-News that you are going to resign from City Council in order to accept retirement age from the U. S. Railroad Retirement Board.
"According to our records, you have only 348 months of service creditable under the Railroad Retirement Act. If our records are correct, you are not eligible to retire with the Railroad Retirement Board until you reach age 62."
Gilmer said today that Trout's buyout retirement settlement with NS didn't provide him any additional credit for service for the railroad retirement pension. NS's records show that Trout had only 348 months of credit when he retired at age 57.
Gilmer also indicated that Trout may be able to remain on council without any reduction in his pension after he reaches 62.
"We have checked with the Railroad Retirement Board headquartersin Chicago, and are advised that in some cases, elected officials are not required to surrender public office in order to draw Railroad Retirement annuities," Gilmer said in his letter to Trout.
"It may be advantageous to you to request a written determination of your situation from the Railroad Retirement Board prior to reaching age 62."
Trout said he received Gilmer's letter last Friday afternoon after he had dictated his resignation letter. But he hadn't signed the resignation letter or delivered it to the City Clerk's office when he received Gilmer's letter.
He said he will seek a written determination by the Railroad Retirement Board as Gilmer suggested.
In the meantime, Trout has decided to remain on council and seek a new term as an independent. He must file a petition with the Circuit Court Clerk by Tuesday night.
If he wins re-election in May, Trout said he will remain on council for the full four-year term even if he has to take a reduction in his pension when he reaches 62.
"I am very delighted that Mr. Gilmer took the time to inquire into my situation," he said. "I will be a candidate, and if elected, I will complete my term and be grateful to the citizens who have faith in me."
by CNB