press release, September 25, 2013)"> press release, September 25, 2013)" />

7061 East Pleasant Valley Road, Independence, Ohio 44131 • (216) 241-2630 / Fax: (216) 241-6516

Membership
Benefits
News and Issues
Departments
Information
Secretary-Treasurer
Merchandise
Communications
FELA
Events
Links
User Info

Railroad unemployment and sickness benefits to increase due to adjustment in sequestration rate

(Source: U.S. Railroad Retirement Board press release, September 25, 2013)

CHICAGO Beginning October 1, 2013, the U.S. Railroad Retirement Board (RRB) will reduce railroad unemployment and sickness insurance benefits by 7.2 percent due to federal budget cuts first implemented in March 2013. Since that time, these benefits had been reduced by 9.2 percent.

The adjusted reduction amount is based on revised projections of benefit claims and payments under the Railroad Unemployment Insurance Act. It will remain in effect through September 30, 2014, the end of the fiscal year. Reductions in future fiscal years, should they occur, will be calculated based on applicable law.

The 7.2 percent reduction in railroad unemployment and sickness benefits will reduce the maximum daily benefit rate from $68.00 to $63.10. As a result, the total maximum amount payable in a 2-week period with 10 days of unemployment will drop from $680.00 to $631.04.

Certain railroad sickness benefits are also subject to regular tier I railroad retirement taxes, resulting in a further reduction of 7.65 percent. Applying the 7.2 percent reduction to these sickness benefits will result in a daily benefit rate of $58.27, with a maximum 2-week total of $582.77.

Under the previous 9.2 percent reduction, the maximum 2-week unemployment benefit was $617.44, while the maximum for sickness benefits subject to tier I payroll taxes was $570.21.

These reductions are required under the Budget Control Act of 2011 and a subsequent sequestration order filed by President Obama to implement the mandated cuts. The law exempted social security benefits, as well as railroad retirement, survivor, and disability benefits paid by the RRB, from sequestration.

In fiscal year 2012, the RRB paid $11.3 billion in retirement and survivor benefits to about 573,000 beneficiaries, and net unemployment-sickness benefits of $88.5 million to about 26,000 claimants.

Thursday, October 03, 2013

Like us on Facebook at
Facebook.com/BLETNational

Sign up for BLET News Flash Alerts

© 1997-2017 Brotherhood of Locomotive Engineers and Trainmen

 


Decertification Helpline
(216) 694-0240

National Negotiations

Sign up for BLET
News Flash Alerts

DAILY HEADLINES

CP Rail CEO predicts rail consolidation
CSX reduces the number of locomotives in maintenance program
Few safety precautions for MMAs one-person crews, Lac-Megantic trial hears
Transcript of CSX 3Q 2017 earnings call
Commuters are fuming as NJ Transit keeps cancelling the same rush hour train
Unions lead the way in providing health benefits
Extreme winds blow 2 trains off tracks in central Alberta
KCS forms Health, Safety and Environmental unit
Q&A: Railroad Retirement spouse and widow(er)s annuities and public service pensions
Get the latest labor news from the Teamsters

More Headlines