Prepared by Public Affairs 312-751-4777
A new benefit year under the
Railroad Unemployment Insurance Act begins July
1, 2008. Administered by the Railroad Retirement Board (RRB), 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 unable to work because of pregnancy and childbirth.
The following questions and answers describe these benefits, their eligibility
requirements, and how to claim them.
1. What is the daily benefit rate payable in the new benefit year beginning July
1, 2008?
Almost all employees will qualify for the new maximum daily benefit rate of $61,
which increased from $59 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 $610 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.
2. 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 $3,075 in calendar year 2007, not
counting more than $1,230 for any month. Those who were first employed in the
rail industry in 2007 must also have at least five months of creditable railroad
service in 2007.
Under certain conditions, employees with 120 or more months of railroad service
who do not qualify on the basis of their 2007 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, 2008,
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 $3,200 in 2008, not counting earnings of more than $1,280 a month.
In order to qualify for extended unemployment benefits, a claimant must not have
voluntarily quit work without good cause and not have voluntarily retired. To
qualify for extended sickness benefits, a claimant must not have voluntarily
retired and must be under age 65.
To be eligible for accelerated benefits, a claimant must have 14 or more
consecutive days of either unemployment or sickness; not have voluntarily
retired or, if claiming unemployment benefits, quit work without good cause; and
be under age 65 when claiming sickness benefits.
3. 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 2007, counting earnings up to $1,589 per month.
If normal benefits are exhausted, extended benefits are payable for up to 65
days (during 7 consecutive registration periods) to employees with 10 or more
years of service.
4. 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.
5. 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.
6. 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.
7. 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.
8. 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 2008 the indexed amount is $1,230,
which corresponds to the base year monthly compensation amount used in
determining eligibility for benefits in the new benefit year.
9. How does a person apply for, as well as claim, unemployment benefits?
Claimants can file their applications for unemployment benefits, as well as
their subsequent biweekly claims, by mail or online.
To apply by mail, claimants must obtain an application from their labor
organization, employer, local RRB office or the agency’s Web site at www.rrb.gov.
The completed application should be mailed to the local RRB 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.
To file their applications -- or their biweekly claims -- online, claimants must
first establish an RRB Internet Services account. For security purposes, first
time users must apply for a Password Request Code, which they will receive by
mail in about 10 business days. To do this, they should click on “Benefit Online
Services” and select “request a PRC.” Once they establish their online accounts,
they will be able to file their applications and biweekly claims for
unemployment benefits as well as conduct other business with the RRB over the
Internet. Employees are encouraged to establish online accounts while still
employed so the account is ready if they ever need to apply for these benefits
or use other select RRB Internet services. Employees who have already
established online accounts do not need to do so again.
The local RRB office reviews the completed application, whether it was submitted
by mail or online, 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 RRB office processes the application, biweekly claim forms are mailed
to the claimant, and are also made available on the RRB’s Web site, as long as
he or she remains unemployed and eligible for benefits. The time for filing a
claim is 15 days from the last day of the claim period or 15 days from the date
the claim form is mailed to the claimant or made available online, whichever is
later. Claimants should not file both a paper claim and an online claim for the
same period.
Only one application needs to be filed during a benefit year, even if a claimant
becomes unemployed more than once. However, a claimant must, in such a case,
request a claim form from an RRB field office within 30 days of the first day
for which he or she wants to resume claiming benefits. These claims may also be
filed by mail or online.
10. How does a person apply for sickness benefits?
An application for sickness benefits can be obtained from railroad labor
organizations, railroad employers, any RRB office or the agency’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. Claimants
should make a special effort to have the doctor’s statement of sickness
completed promptly since no claims can be paid without it.
The RRB 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 then have his or her doctor
complete 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 RRB’s headquarters in
Chicago by the seventh day of the illness or injury for which benefits are
claimed. However, applications received after 10 days but within 30 days of the
first day for which an employee wishes to claim benefits are generally
considered timely filed if there is a good reason for the delay. After the RRB
receives the application and statement of sickness and determines eligibility,
biweekly claim forms are mailed to the claimant for completion and return to an
RRB field office for processing. The claim forms must be received at the RRB
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.
Although claimants cannot currently file applications or biweekly claims for
railroad sickness benefits over the Internet, the RRB is planning to add the
online filing of sickness claims in the future.
11. 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 RRB 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 RRB makes an initial determination on the claim. In addition, the
claimant’s current employer is also notified. The RRB must also notify the
claimant’s base-year employer each time benefits are paid to a claimant. The
base-year employer may protest the decision to pay benefits. Such a protest does
not prevent the timely payment of benefits. However, a claimant may be required
to repay benefits if the employer’s protest is successful.
The RRB also checks with other Federal agencies and all 50 States, as well as
the District of Columbia and Puerto Rico, to detect fraudulent benefit claims
and it checks with physicians to verify the accuracy of medical statements
supporting sickness benefit claims.
12. How long does it take to receive payment?
Under the RRB’s Customer Service Plan, if a claimant files an application for
unemployment or sickness benefits, a decision will be made within 10 days of the
date the application was filed. If a claim for subsequent biweekly unemployment
or sickness benefits is filed, a decision will be made within 10 days of the
date the RRB received the claim form. If the claimant is entitled to benefits,
benefits will generally be paid within one week of that decision.
However, some claims for benefits may take longer to handle than others if they
are more complex, or if an RRB 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 an RRB 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.
13. 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.
14. Can claimants access information online about their railroad unemployment
and sickness benefit payments?
Claimants can access information about their individual railroad unemployment
insurance account statements via the Internet. These account statements provide
a summary of the unemployment and sickness benefits paid under the Railroad
Unemployment Insurance Act to rail employees.
This online service, called “RUIA Account Statement,” displays the type and
amount of a claimant’s last five benefit payments, the claim period for which
the payments were made, and the dates that the payments were approved. Claimants
can also confirm the RRB’s receipt of their latest application or claim for
unemployment or sickness benefits, along with the receipt of any supplemental
doctor’s statement required to continue the payment of sickness benefits. In
addition, the service allows claimants to view the address currently on record
for them and, if applicable, their direct deposit information.
To use this service, claimants must establish an Internet Services account, as
described in the answer to question 9.
15. How can claimants receive more information on railroad unemployment or
sickness benefits?
Claimants with questions about unemployment or sickness benefits should contact
the nearest RRB office. Most RRB offices are open to the public from 9:00 a.m.
to 3:30 p.m., Monday through Friday, except on Federal holidays. Claimants can
find the address and phone number of the RRB 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. Information about
unemployment or sickness claims and benefit payments is available on the Help
Line for those who have a Personal Identification Number (PIN), which is printed
on the back of each claim form mailed to the claimant.
In addition, most of the toll-free Help Line services are available through the
RRB’s Web site, which also includes publications that may be downloaded.
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