U.S. RAILROAD RETIREMENT BOARD V. FRITZ
449 U.S. 166 (1980)
NATURE OF THE CASE: This is an appeal of an order invalidating statutory changes in a
railroad retirement system.
FACTS: Before 1974, railroad retirees received benefits from the Social Security and
railroad retirement systems. In 1974, Congress passed an act changing the benefit plans,
favoring some retirees over others. Some workers qualified for dual benefits, some did not.
Fritz (P) and other employees who did not qualify for dual benefits under the new law
challenged it as a violation of equal protection. Appellee and others filed this class
action seeking a declaratory judgment that it is unconstitutional under the Due Process
Clause of the Fifth Amendment because it irrationally distinguishes between classes of
annuitants. Appellee contended below that it was irrational for Congress to have drawn a
distinction between employees who had more than 10 years but less than 25 years of railroad
employment simply on the basis of whether they had a 'current connection' with the railroad
industry as of the changeover date or as of the date of retirement. The District Court
agreed with appellee that a differentiation based solely on whether an employee was 'active'
in the railroad business as of 1974 was not 'rationally related' to the congressional
purposes of insuring the solvency of the railroad retirement system and protecting vested
benefits.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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