Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: TUESDAY, March 6, 1990 TAG: 9003062072
SECTION: VIRGINIA PAGE: B1 EDITION: METRO
SOURCE: JOEL TURNER MUNICIPAL WRITER
DATELINE: LENGTH: Medium
Trout, a retired economic development specialist for Norfolk Southern, announced his resignation last month 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 turns 60.
But on Monday he learned that he won't be eligible for a pension until he is 62.
Because of the unexpected development, Trout, a Democrat, said he will run as an independent 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 employed.
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 still would be employed.
Trout said he 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 and he would have 30 years of credit when he reached 60.
Railroad employees must have 30 years or 360 months of creditable service to receive a pension before they reach 62.
But P.J. Gilmer, NS' director of benefits, notified Trout late last week that he won't be eligible for a pension until he reaches 62 because he had 348 months of service.
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 headquarters in 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 a letter to Trout.
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.
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.
The three council seats up for election on May 1 are now held by Trout, Musser and Robert Garland.
Garland, a Republican, said he hasn't decided whether to seek a new term.
Roland Macher, a businessman who owns an antiques mall on the City Market and a chain of restaurants, will seek the GOP nomination for one of the council seats. The Republicans will choose their candidates at a mass meeting tonight.
by CNB