Prepared by:
Quality Reporting Service Center
Railroad Retirement Board
844 North Rush Street
Chicago, Illinois 60611-2092
Phone: |
(312) 751-4992 |
Fax: |
(312) 751-7190 |
E-mail: |
QRSC@rrb.gov |
Creditable and Taxable Compensation
The 2008 railroad retirement tax rates and maximum compensation bases are as
follows:
Employee Tier I
|
6.20% |
$102,000
|
Medicare |
1.45% |
No Limit |
Employer Tier I |
6.20%
|
$102,000
|
Medicare
|
1.45% |
No Limit |
Employee Tier II
|
3.9%
|
$75,900
|
Employer Tier II |
12.10% |
$75,900
|
Railroad Unemployment Insurance
|
Variable
|
$1,280 per month |
The Tier II tax rates are determined annually from a tax rate schedule based on
an average account benefits ratio reflecting railroad retirement fund levels.
Employer tax rates can range from 8.2 percent to 22.1 percent. Employee tax
rates can range from 0 percent to 4.9 percent.
Experience Rating
In September 2007, each employer was sent a notice of their 2008 Railroad
Unemployment Insurance Act (RUIA) contribution rate. If you have not received
your notice, please contact the Quality Reporting Service Center.
Retirement and Survivor Benefits
Exempt Amounts for Annual Earnings Test for
Less Than Full Retirement Age Annuitants: In 2008, the annual exempt
amount for less than full retirement age annuitants is $13,560. The monthly
exempt amount for the first year of retirement in 2008 is $1,130.
Exempt Amounts for Annual Earnings Test
for Full Retirement Age Annuitants: In 2008, the annual exempt amount for
full retirement age annuitants is $36,120. The monthly exempt amount for the
first year of retirement in 2008 is $3,010.
Cost-of-living Increase:
Annuitants will receive a cost-of-living increase effective December 2008. Tier
I will increase by 2.3% and Tier II will increase by 0.7%. This increase is
before adjustment for other benefits.
Unemployment and Sickness Benefits
Maximum Daily Benefit Rate: Under the
Railroad Unemployment Insurance Act (RUIA), the maximum daily benefit rate is
equal to 5 percent of the monthly RUIA compensation base, rounded down to the
nearest multiple of $1.00. For days of unemployment and sickness in registration
periods beginning on and after July 1, 2008, the maximum daily rate is $61.00.
The maximum rate for registration periods beginning on or after July 1, 2009, is
$64.00.
Monthly Compensation Base: The
monthly compensation base under the Railroad Unemployment Insurance Act for
calendar year 2008 is $1,280.
Qualifying Base Year Compensation:
The amount of base year compensation required in 2008 to qualify for benefits in
the benefit year beginning July 1, 2009, is $3,200.00.
Compensation of $3,200 is also the amount of creditable compensation required
to end a voluntary leaving of work disqualification period in months in calendar
year 2008. In addition, remuneration earned in calendar year 2008 from
employment covered under the Act cannot be considered subsidiary remuneration if
the employee’s base year earnings are less than $3,200.
Maximum Benefits: The monthly
amount of base year 2008 compensation that can be counted in determining the
maximum amount of normal benefits payable to an employee in the benefit year
beginning July 1, 2009, is $1,653.
Maximum Monthly Compensation Base and the
Earnings Test: For unemployment registration periods beginning July 1,
2008 and later, no benefits are payable for which the total amount of an
employee’s earnings and other remuneration from railroad and non-railroad work
for days in the period exceeds the monthly compensation amount of $1,230. |