I'll refer you to dictionary.com, brainbox. Nowhere does it mention masters degrees. And number 1 could quite happy accommodate the work those people do.
http://dictionary.reference.com/browse/engineer?s=t
1.
a person trained and skilled in the design, construction, and use of engines or machines, or in any of various branches of engineering: a mechanical engineer; a civil engineer.
2.
a person who operates or is in charge of an engine.
3.
Also called locomotive engineer. Railroads. a person who operates or is in charge of a locomotive.
4.
a member of an army, navy, or air force specially trained in engineering work.
5.
a skillful manager: a political engineer.
I suggest that next time you check your "facts" before making yourself look silly.