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 first 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 2000, but who had not received a Form BA-6 by late June,
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 2000 compensation total, employees should be aware
that only annual earnings up to $76,200 were creditable for railroad
retirement purposes in that year, and that $76,200 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 1999, 1998 and 1997, when the creditable compensation
maximums were $72,600, $68,400 and $65,400, respectively. In addition,
the form identifies the rail employers reporting the employee's 2000
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.
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."
The Form BA-6 also shows, in the section
designated "Employee Contributions," 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.
A section has been added to the back of the
form advising employees to submit proofs of age and/or military
service in advance of their actual retirement. Filing these proofs
with the Board in advance will streamline the benefit application
process and prevent payment delays.
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.
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. In addition, a toll-free
automate 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.
Benefit Rate Increase for Railroad Unemployment and Sickness
Benefits
The maximum daily benefit
rate payable for claims under the Railroad Unemployment Insurance Act
increased to $50 from $48, in the new benefit year which began July 1,
2001. Benefits are normally paid for the number of days of
unemployment or sickness over four in 14-day registration periods, so
maximum benefits for biweekly claims will total $500.
During the first 14-day claim period in a benefit
year, benefits are payable for each day of unemployment or sickness in
excess of seven, rather than four, which, in effect, provides a
one-week waiting period. Initial sickness claims must also begin with
four consecutive days of sickness. However, only one waiting period is
required during any period of continuing unemployment or sickness,
even if that period continues into a subsequent benefit year.
Therefore, claimants already on the rolls will normally not be
required to serve another waiting period because of the onset of the
new benefit year.
To qualify for normal railroad unemployment or
sickness benefits, an employee must have had railroad earnings of at
least $2,512.50 in calendar year 2000, not counting more than $1,005
for any month. Those who were first employed in the rail industry in
2000 must also have at least five months of creditable railroad
service in 2000.
Under certain conditions, employees with ten or
more years of service, who do not qualify in the new benefit year on
the basis of their 2000 earnings, may still be able to receive
benefits after June 30, 2001. Ten-year employees who received normal
benefits in the benefit year ending June 30, 2001, might still be
eligible for extended benefits, and ten-year employees may be eligible
for accelerated benefits if they have rail earnings of at least $2,625
in 2001, not counting earnings of more than $1,050 a month.
Application forms for unemployment and sickness
benefits may be obtained from railroad employers, railroad labor
organizations, any Railroad Retirement Board office, or the Board's
Web site at www.rrb.gov. 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. Field
office locations can also be found on the Board's Web site at www.rrb.gov. |