A new benefit year under the Railroad Unemployment Insurance Act
began July 1, 2000. 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, 2000?
Almost all employees will qualify for the new maximum daily benefit
rate of $48, which increased from $46 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 $480 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 earnings of at least $2,425 in calendar year
1999, not counting more than $970 for any month. Those who were first
employed in the rail industry in 1999 must also have at least five
months of creditable railroad service in 1999.
Under certain conditions, employees with 120 or more months of
railroad service who do not qualify on the basis of their 1999
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, 2000, 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 $2,512.50 in 2000, not counting earnings of more than $1,005
a month.
How long are these benefits payable?
Normal unemployment or sickness benefits are each payable for up to
130 days (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 1999, not counting
earnings of more than $1,253 per month.
If normal benefits are exhausted, extended benefits are payable for
up to 65 days (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. However, only one
seven-day waiting period is generally 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. Entitlement to benefits 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?
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. That claim, however, can be used to satisfy the
waiting period.
Earnings include pay from railroad and nonrailroad work, as well as
part-time work 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 2000 the test amount is $970, which corresponds to
the base year monthly compensation amount used in determining
eligibility for benefits in the new benefit year.
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.
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. 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.
Only one application need be filed during a benefit year even if a
claimant becomes unemployed more than once. However, a claimant must,
in such a case, request biweekly claim forms from a Board field office
within 30 days of the first day for which he or she wants to resume
claiming benefits.
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. Benefits may be lost if an application
or claim is filed late.
Is a claimant's employer notified each time a biweekly claim for
unemployment or sickness benefits is filed?
The Railroad Unemployment Insurance Act requires the Board to
notify the claimant's base year 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 on the claim. In addition, the claimant's current
employer is also notified. 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.
The Board also checks with other federal agencies and all 50 states
to detect fraudulent benefit claims; and it checks with physicians to
verify the accuracy of medical statements supporting sickness benefit
claims.
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 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, 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. 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.
NOTE: PLEASE USE FORM BA-6 (6-00) as GRAPHIC WITH THIS BOX.
@ BOX heading = = 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. 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 file of the
addresses of all active railroad employees, employees for whom
compensation was reported in 1999, 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 amount 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
1999 compensation total, employees should be aware that only annual
earnings up to $72,6000 were creditable for railroad retirement
purposes in that year, and that $72,600 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 1998,
1997, and 1996, when the creditable compensation maximums were
$68,400, $65,400 and $62,700, respectively. In addition, the form
identifies the rail employers reporting the employee's 1999 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 in 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 retired
employees of their payroll tax contributions for federal income tax
purposes.
For 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 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 1999. 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 their 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 is available 24 hours a day,
seven days a week, at 1-800-808-0772. Employees can use the 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: 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.
@ BOX heading = Clinton Reappoints Kever, Speakman to Railroad
Retirement Board
President Clinton has reappointed Jerome F. Kever as Carrier Member
and V. M. Speakman, Jr. as Labor Member of the U.S. Railroad
Retirement Board. Their nominations, for terms through August 2003 and
August 2004, respectively, were confirmed by the U.S. Senate on May
24.
Mr. Kever was first appointed to the Board by President Bush on the
recommendations of the Association of American Railroads and the
American Short Line Railroad Association in 1992, and was reappointed
to a second term of office in 1995. A financial consultant to private
industry prior to his Board appointment, he had been Vice President
and Controller of the Santa Fe Pacific Corporation and had held
executive positions with Household International and Deloitte and
Touche.
A Certified Public Accountant, Mr. Kever holds a Bachelor of
Science degree from Indiana University. He is a native of Fort Wayne,
Indiana and now resides in Grayslake, Illinois.
Mr. Speakman was first appointed to the Board by President Bush on the
recommendation of the Railway Labor Executives' Association (RLEA) in
1992, and was reappointed to a second term of office in 1995. Prior to
his appointment, he had been President of the Brotherhood of Railroad
Signalmen since 1987. In this position he also served as Vice Chairman
of the Railway Labor Executives' Association, Chairman of the RLEA's
Committee on Railroad Retirement, and as Secretary-Treasurer of the
Transportation Trades Department of the AFL-CIO. Other posts held in
the Brotherhood of Railroad Signalmen were Vice President, 1985-87;
Director of Research, 1984-85; Grand Lodge Representative, 1979-1984;
and Local Lodge Chairman, 1977-1979. He began his railroad career as a
signalman and foreman of the Penn Central Railroad.
A veteran, Mr. Speakman served with the U.S. Air Force in Vietnam.
He is a native of Ohio, and now resides in Schaumburg, Illinois, with
his wife, Karen.
The 3-Member Board's Chair, Cherryl T. Thomas, was appointed by
President Clinton in 1998, and continues to serve a term of office
through August 2002.
Headquartered in Chicago, the Board provides retirement, survivor,
disability, unemployment and sickness benefit payments totaling about
$8 billion a year, under the Federal Railroad Retirement and
Unemployment Insurance Acts, covering the nation's railroad workforce
and their families.
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