Inside Report (4)

Save social security and balance the budget - but not with our pensions!

Citing budget reasons, the White House proposes to shift railroad unemployment benefits to states. The benefits currently are paid from the railroad retirement program. The Railway Labor Executives' Association calls the administration's plan an ''inappropriate federal intrusion. Meanwhile, federal, state, and local government employees - not under social security - are concerned over efforts to shift their pensions into the ailing system to reinforce its reserves. The National Commission of Social Security Reform has proposed such a shift.

The NCSSR says the US could save $110 billion over seven years by bringing into the system all government employees and employees of nonprofit operations who are now exempt.