RRB Issues Statements Of Service

Each year, the U.S. Railroad Retirement Board prepares a "Certificate of Service Months and Compensation" (Form BA-6) for every railroad employee who received creditable railroad compensation in the previous calendar year. In past years, while most employees received Form BA-6 directly from the Board, some forms were distributed through employers. This year, all of the forms were mailed to employees by the Board during the latter half of June. While the Board has made every effort to compile and keep current a list of the addresses of all active railroad employees, employees for whom compensation was reported in 1997, but who had not received a Form BA-6 by mid-July, or need a replacement, should contact the nearest Board field office.

Form BA-6 provides employees with a record of their railroad retirement service and compensation. While the form has no cash value, the information shown is used to determine whether an employee qualifies for benefits and the amounts of those benefits.

It is important that employees review their Form BA-6 to see whether their own records of service months and creditable compensation agree with the figures shown on the form. In checking the 1997 compensation total, employees should be aware that only annual earnings up to $65,400 were creditable for railroad retirement purposes in that year, and that $65,400 is the maximum amount shown on the form. To assist employees in reviewing their service credits, the form also shows service credited on a month-by-month basis for 1996, 1995, and 1994, when the creditable compensation maximums were $62,700, $61,200 and $60,600, respectively. In addition, the form identifies the rail employers reporting the employee's 1997 service and compensation.

Besides the months of service reported by rail employers, Form BA-6 shows the number of any additional service months deemed by the Board. Deemed service months may be credited under certain conditions for an employee who did not work all 12 months of the year, but had creditable tier II earnings exceeding monthly prorations of the creditable tier II earnings maximum for the year. However, the total of reported and deemed service months may never exceed 12 in a calendar year, and no service months, reported or deemed, can be credited after retirement, severance, resignation, discharge, or death.

In addition to regular compensation which generally yields service month credits, the form shows miscellaneous compensation, such as taxable sickness payments.

The Form BA-6 also shows the cumulative amount of tier II railroad retirement payroll taxes paid by the employee over and above tier I social security equivalent payroll taxes. While the Board does not collect or maintain payroll tax information, the Board computes this amount from its compensation records in order to advise employees, after their retirement, of these payroll tax contributions for Federal income tax purposes.

For former employees who received separation or severance payments, the form, in the section designated "Taxable Amount," shows the amounts of any separation allowance or severance payments in the last four years that were subject to railroad retirement tier II taxes. This information is shown on the form because a lump sum, approximating part or all of the tier II taxes deducted from such payments made after 1984 which did not provide additional tier II credits, may be payable by the Board upon retirement to employees with 120 months of service, or to survivors if the employee dies before retirement. The amount of an allowance included in an employee's regular compensation is shown under "Compensation Amount."

An employee who receives Form BA-6 with an incorrect name, address, date of birth or social security number can have the information corrected by contacting the nearest Board field office. If there is a name difference, an employee should be aware that the form may not show his or her full surname if the surname exceeds 10 letters, "Junior" or "Senior" was used with the surname, or the employee first worked for a railroad in 1997. Employees may also contact a Board field office to request a detailed breakdown, by year, of all railroad service and compensation credited to them. For most employees, the address and phone number of the Board office serving the employee's area is provided on the form. Employees can also locate the nearest field office by visiting the Board's Web site at www.rrb.gov, looking in the telephone directory under "United States Government," or checking with a union representative, rail employer, local post office or Federal Information Center. In addition, a toll-free automated Help Line to request a detailed breakdown of their creditable railroad service and compensation, as well as to find the address and telephone number of the Board office serving their area.

Any other discrepancies in Form BA-6 should be reported promptly in writing to the Protest Unit-ESTC, U.S. Railroad Retirement Board, 844 North Rush Street, Chicago, Illinois, 60611-2092. The employee must include his or her social security number in the letter. The Form BA-6 also explains what other documentation and information should be provided. The law limits to four years the period during which corrections can be made.

President Clinton Appoints New Railroad Retirement Board Chair

President Clinton has appointed Cherryl T. Thomas as Chair of the U.S. Railroad Retirement Board. Her nomination was confirmed by the Senate on April 27, and she was sworn into office on June 3. Ms. Thomas succeeds Glen L. Bower.

An independent federal agency headquartered in Chicago, the RRB administers the $8 billion-a-year benefit programs provided under the Federal Railroad Retirement and Unemployment Insurance Acts covering the nation's railroad workforce and their families.

Prior to her appointment, Ms. Thomas had served since 1994 as Commissioner of the Department of Buildings for the City of Chicago. In her 30-year career with the City of Chicago, Ms. Thomas also served as Deputy Chief of Staff to Mayor Richard M. Daley from 1992 to 1994, Director of Personnel Policy and Utilization for the Department of Water from 1989 to 1992, and Director of Management Services for the Department of Aviation from 1983 to 1989.

A native and resident of Chicago, Ms. Thomas received her B.S. degree in Biology and Chemistry from Marquette University, and her M.S. degree in Physiology from the University of Illinois at Chicago.

New Benefit Year for Railroad Unemployment and Sickness Benefits

A new benefit year under the Railroad Unemployment Insurance Act provides two kinds of benefits for qualified railroaders: unemployment benefits for those who become unemployed but are ready, willing and able to work; and sickness benefits for those who are unable to work because of sickness or injury. Sickness benefits are also payable to female rail workers for periods of time when they are not able to work because of pregnancy and childbirth.

The following questions and answers describe these benefits, their eligibility requirements, and how to claim them.

What is the daily benefit rate payable in the new benefit year beginning July 1, 1998?

Almost all employees will qualify for the new maximum daily benefit rate of $44, which increased from $43 under indexing provisions reflecting the growth in average national wages. Benefits are generally payable for days of unemployment or sickness in excess of four in biweekly claim periods, which yields $440 for each two full weeks of unemployment or sickness. However, sickness benefits resulting from other than on-the-job injuries are subject to tier I railroad retirement payroll taxes for the first six months after the employee last worked.

What are the eligibility requirements for railroad unemployment and sickness benefits in the new benefit year?

To qualify for normal railroad unemployment or sickness benefits, an employee must have had railroad earnings of at least $2,225 in calendar year 1997, not counting more than $890 for any month. Those who were not employed in the rail industry before 1997 must also have at least five months of creditable railroad service in 1997.

Under certain conditions, employees with 120 or more months of railroad service who do not qualify on the basis of their 1997 earnings may still be able to receive benefits in the new benefit year. Employees with 120 or more months of service who received normal benefits in the benefit year ending June 30, 1998, may be eligible for extended benefits, and employees with 120 or more months of service might qualify for accelerated benefits if they have rail earnings of at least $2,312.50 in 1998, not counting earnings of more than $925 a month.

How long are these benefits payable?

Normal unemployment or sickness benefits are each payable for up to 26 weeks in a benefit year. The total amount of each kind of benefit which may be paid in the new benefit year cannot exceed the employee's railroad earnings in calendar year 1997, not counting earnings of more than $1,150 per month.

If normal benefits are exhausted, extended benefits are payable for up to 13 consecutive weeks to employees with 10 or more years of service.

What is the waiting-period requirement for unemployment and sickness benefits?

Benefits are normally paid for the number of days of unemployment or sickness over four in 14-day claim periods. However, during the first 14-day claim period in a benefit year, benefits are only payable for each day of unemployment or sickness in excess of seven which, in effect, provides a one-week waiting period. But, only one seven-day waiting period is required during any period of continuing unemployment or sickness, even if that period continues into a subsequent benefit year.

Initial sickness claims must also begin with four consecutive days of sickness.

Are there special waiting-period requirements if unemployment is due to a strike?

If a worker is unemployed because of a strike conducted in accordance with the Railway Labor Act, benefits are payable for days of unemployment during 14-day claim periods after the first claim period, but no benefits are payable for days of unemployment during the first 14 days of the strike.

If a strike is in violation of the Railway Labor Act, unemployment benefits are not payable to employees participating in the strike. However, employees not among those participating in such an illegal strike, but who are unemployed on account of the strike, may receive benefits after the first two weeks of the strike.

While a benefit year waiting period cannot count toward a strike waiting period, the 14-day strike waiting period may count as the benefit year waiting period if a worker subsequently becomes unemployed for reasons other than a strike later in the benefit year.

Can employees in train-and-engine service receive unemployment benefits for days when they are standing by or laying over between scheduled runs?

No, not if they are standing or laying over between regularly assigned trips or they missed a turn in pool service.

Can extra-board employees receive unemployment benefits between jobs?

Yes, but only if the miles and/or hours they actually worked were less than the equivalent of normal full-time work in their class of service during the 14-day claim period. It would also depend on the employee's earnings.

How would an employee's earnings in a claim period affect his or her eligibility for unemployment benefits?

An earnings test is applied to unemployment claims. If a claimant's earnings for days worked, and/or days of vacation or paid leave, in a 14-day claim period are more than a certain indexed amount, no benefits are payable for any days of unemployment in that period. Earnings include pay from railroad and nonrailroad work, as well as part-time and self-employment. Earnings also include pay that an employee would have earned except for a failure to mark up or report for duty on time, or because he or she missed a turn in pool service or was otherwise not ready or willing to work. For the benefit year that begins July 1998 the test amount is $890, which corresponds to the base year monthly compensation amount used in determining eligibility for benefits in the new benefit year.

For example, two employees who have already served initial waiting periods file identical claims which include nine days of unemployment and five days of employment during the same 14-day period. However, the first employee had earnings of $900 from the five days of employment in that claim period, while the second employee had earnings of $800. Because the first employee's earnings exceeded $890, no benefits are payable for any days of unemployment during this claim period. However, the second employee would be eligible for five days of benefits.

How does a person claim unemployment benefits?

In order to receive unemployment benefits, claimants must obtain an application from their labor organization, employer, local Railroad Retirement Board office or the Board's Web site at www.rrb.gov. The completed application should be mailed to the local Board office as soon as possible and, in any case, must be filed within 30 days of the date on which the claimant became unemployed or the first day for which he or she wishes to claim benefits. Benefits may be lost if the application is filed late.

However, only one application need be filed during a benefit year even if a claimant becomes unemployed more than once. In that case, the claimant must request a new claim form from a Board field office within 30 days of the first day for which he or she wants to claim benefits.

The local Board office reviews the completed application and notifies the claimant's railroad employer. The employer has the opportunity to provide information about the benefit application. After the Board office processes the application, biweekly claim forms are mailed to the claimant as long as he or she remains unemployed and eligible for benefits. Claim forms should be signed and mailed on or after the last day of the claim. The completed claims must be received by a Board office within 15 days of the end of the claim or the date the claim was mailed to the claimant, whichever is later.

How does a person claim sickness benefits?

An application for sickness benefits can be obtained from railroad labor organizations, railroad employers, any Board office or the Board's Web site. An application and a doctor's statement of sickness are required at the beginning of each period of continuing sickness for which benefits are claimed.

The Board suggests that employees keep an application on hand for use in claiming sickness benefits, and that family members know where the form is kept and how to use it. If an employee becomes unable to work because of sickness or injury, the employee should complete the application and take or send it to his or her doctor for completion of the statement of sickness. If the employee is too sick to complete the application, someone else may do so. In such cases, a family member should also complete the "Statement of Authority to Act for Employee," which accompanies the statement of sickness.

After completion, the forms should be mailed to the Board's headquarters in Chicago by the seventh day of the illness or injury for which benefits are claimed. After the Board receives the application and statement of sickness and determines eligibility, biweekly claim forms are mailed to the claimant for completion and returned to a Board field office for processing. The claim forms must be received at the Board within 30 days of the last day of the claim period, or within 30 days of the date the claim form was mailed to the claimant, whichever is later.

How long does it take to receive payment?

Persons who file an application for benefits may expect to receive a claim form, or a decision on their application, within 15 days of the date they filed their application. When they file for biweekly claims, they may expect to receive a payment, or a decision on a claim, within 15 days of the date a Board office receives the claim form. However, claims for some benefits may take longer to handle than others if they are more complex, or if a Board office has to get information from other people or organizations. If this happens, claimants may expect an explanation and an estimate of the time required to made a decision.

Claimants who think a Board office made the wrong decision about their benefits have the right to ask for review and to appeal. They will be notified of these rights each time an unfavorable decision is made on their claims.

How are payments made?

Railroad unemployment and sickness insurance benefits are paid by Direct Deposit. With Direct Deposit, benefit payments are made electronically to an employee's bank, savings and loan, credit union or other financial institution. New applicants for unemployment and sickness benefits will be asked to provide information needed for Direct Deposit enrollment.

How can claimants receive more information on railroad unemployment or sickness benefits?

Claimants with questions about unemployment or sickness benefits should contact the nearest Board office. Most Board offices are open to the public from 9:00 am. to 3:30 p.m., Monday through Friday. Claimants can find the address and phone number of the Board office serving their area, and also get information about their claims and benefit payments by calling the toll-free RRB Help-Line at 1-800-808-0772. The RRB Help-Line is an automated telephone service available 24 hours a day, 7 days a week. Callers to the RRB Help-Line who want information about their claims and benefit payments need a Personal Identification Number (PIN), which is printed on the back of each claim form.

In addition, information on benefit requirements, customer service standards, field office locations, and other topics can be accessed through the Board's Web site.