A new benefit year under the Railroad Unemployment Insurance
Act began July 1, 1999. Administered by the U.S. Railroad Retirement Board, this 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, 1999?
Almost all employees will qualify for the new maximum daily benefit rate of $46, which
increased from $44 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 $460 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 $2,312.50 in calendar year 1998, not counting more than
$925 for any month. Those who were first employed in the rail industry in 1998 must also
have at least five months of creditable railroad service in 1998.
Under certain conditions, employees with 120 or more months of railroad service who do
not qualify on the basis of their 1998 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, 1999, 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 $2,425 in 1999, not counting earnings of more than
$970 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 1998, not
counting earnings of more than $1,195 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. Separate waiting periods are
required for unemployment and sickness benefits. 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 by 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. However, that claim can be used to satisfy the waiting 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 1999 the
test amount is $925, 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 claim period. However, the first employee had earnings of $950 from
the five days of employment in that claim period, while the second employee had earnings
of $850. Because the first employee's earnings exceeded $925, 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
current railroad employer, and base-year employer if different. 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. 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 return 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.
Is a claimant's employer notified each time a claim for unemployment or
sickness benefits is filed?
The Railroad Unemployment Insurance Act requires the Board to notify the claimant's
current employer each time a claim for benefits is filed, and to give that employer an
opportunity to submit information relevant to the claim before the Board makes an initial
determination of the claim. The Board must also notify the claimant's base-year employer
each time benefits are paid to a claimant. The base-year employer may appeal the decision
to pay benefits. The appeal does not prevent the timely payment of benefits. However, a
claimant may be required to repay benefits if the appeal is successful.
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 make
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, benefits 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.
Waivers are available to individuals who determine that Direct Deposit would cause a
hardship, and to individuals without bank accounts.
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 a.m. 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 unemployment or sickness 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. |