The National Railroad Retirement Investment Trust was established by the Railroad Retirement and Survivors' Improvement Act of 2001. The Trust, a tax-exempt entity independent from the Federal Government, became effective February 1, 2002.
The sole purpose of the Trust is to manage and invest railroad retirement assets. The Railroad Retirement and Survivors' Improvement Act authorizes the Trust to invest the assets of the Railroad Retirement Account in a diversified investment portfolio in the same manner as those of private sector retirement plans. Prior to the Act, investment of Railroad Retirement Account assets was limited to U.S. Government securities.
The Trust's Board of Trustees is comprised of seven individuals, three selected by railroad labor unions and three by railroad companies. The seventh is an independent Trustee selected by the other six Trustees. The terms are for 3 years and are staggered.
The Trustees are required to discharge their duties solely in the interest of the RRB, and through it, the participants and beneficiaries of the programs funded under the Railroad Retirement Act. The Trustees are subject to fiduciary rules similar to those required by the Employee Retirement Income Security Act.
The financial statements of the Trust are required to be audited annually by an independent public accountant. In addition, the Trust must submit an annual report to Congress on its operations, including a statement of financial position, a statement of cash flows, a statement on internal accounting and administrative control systems, the independent auditor's report, and any other information necessary to inform Congress about the operations and financial condition of the Trust. All National Railroad Retirement Investment Trust annual management reports and quarterly updates are available online.