Amtrak 2014 Annual Report Download - page 57

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1509-1694994 49
11. Environmental Matters (continued)
Amtrak has not recorded any receivables for recoveries from other parties or from insurance
recoveries; the amounts included in “Environmental Reserve” in the Consolidated Balance
Sheets reflect only Amtrak’ s estimate of its portion of the gross liability. In those instances
where Amtrak has received a buyout of third party liabilities, the amounts are recorded as credits
against capital expenses, and therefore are not viewed as receivables. The ultimate liability for
environmental remediation is difficult to determine with certainty due to, among other factors,
the number of potentially responsible parties, site-specific cost sharing arrangements, the degree
and types of contamination, potentially unidentified contamination, developing remediation
technology, and evolving statutory and regulatory standards related to environmental matters.
Amtrak’ s management and counsel believe that additional future remedial actions for known
environmental matters will not have a material adverse effect on the Company’ s results of
operations or financial condition.
12. Postretirement Employee Benefits
Amtrak has a qualified non-contributory defined benefit retirement plan (the Retirement Income
Plan) whose assets are held in trust covering non-union employees and certain union employees
who at one time held non-union positions.
Amtrak provides medical benefits to its qualifying retirees and life insurance to some retirees in
limited circumstances under its postretirement benefits program. Railroad union employees’ life
insurance benefits are covered by a separate policy purchased by Amtrak. Under Amtrak’ s
postretirement benefits program, substantially all salaried employees hired prior to April 1, 2013
(as described below) may become eligible for medical benefits if they meet the service
requirement and reach age 55 while they are working for Amtrak. Company-provided medical
benefits are reduced when covered individuals become eligible for Medicare benefits or reach
age 65, whichever comes first. Medical benefits are subject to co-payment provisions and other
limitations.
On March 27, 2013 the Retirement Income Plan and non-union postretirement benefit plan were
amended to provide that no employee hired, rehired or who transfers from a collectively-
bargained position on or after April 1, 2013 will be eligible to participate in these plans.
However, if a non-union employee terminates employment or transfers to a collective bargaining
position and returns within 90 days of the termination or transfer, he or she would be eligible to
re-enter the plans.