Waiting Period

To satisfy a one-week waiting period requirement, no benefits are payable for your first 7 days of sickness in your first claim in a period of continuing sickness, unless you have already served a waiting period in the benefit year. Benefits are payable for each remaining day of sickness in your first claim. For example, if you claim all 14 days in your first claim, you will be paid benefits for 7 days. If you are eligible and your claims are continuous from one benefit year to another, you generally will serve only one waiting period in your period of continuing sickness.

If you have at least 4 consecutive days of sickness and 5 days of sickness overall, you should file a claim for benefits. Even though no benefits may be payable if the claim is your first claim in the benefit year, your claim must be filed in order to satisfy the waiting period requirement. If you have more than 7 days of sickness in your waiting period claim, benefits will be paid for the number of days of sickness over 7. After your first claim, benefits will be paid for all days over 4 for other claims in the benefit year.

A "period of continuing sickness" means either (1) a period of consecutive days of sickness, whether from one or more causes, or (2) a period of successive days of sickness due to a single cause without interruption of more than 90 consecutive days which are not days of sickness.

Normal Benefits

You can receive normal benefits for as many as 130 days (26 weeks) in a benefit year, but your benefits cannot be more than your base year wages counting not more than a prescribed amount for any month. Benefit rights are exhausted when a benefit year ends (normally June 30) or earlier if benefit payments equal base year creditable earnings.

Example
For purposes of determining maximum normal benefits payable in the general benefit year beginning July 1, 2005, monthly earnings of up to $1,460.00 are counted for months in base year 2004. For base year 2005, the monthly compensation base for maximum benefits is $1,485.00.

Extended Benefits

If you have 10 or more years of service and exhaust your normal sickness benefits, you may be eligible to receive extended benefits for up to 65 days (7 consecutive 14-day claim periods having 10 days payable in each). Also, if you are not qualified for benefits in the current benefit year, but received normal benefits in the previous year, you may still be eligible for extended benefits.

To qualify for extended benefits, you must not have voluntarily retired. Extended sickness benefits are not payable once you attain age 65.

Accelerated Benefits

Under certain special provisions, if you have 10 or more years of service, you can receive benefits before the regular beginning date of a benefit year. To qualify, you must be qualified for the next benefit year, but not the current year. You must also have 14 or more consecutive days of sickness and not have voluntarily retired. Accelerated sickness benefits are not payable once you attain age 65.

Daily Benefit Rate

Your daily benefit rate is 60 percent of the daily rate of pay for your last job in the base year, but not less than $12.70 a day or more than 5 percent of the monthly compensation base.

For example, the monthly compensation base for 2004 is $1,130.00, which results in a maximum daily benefit rate of $56.00 for periods beginning after June 30, 2005. That rate increases to $57.00 for periods beginning after June 30, 2006. The maximum benefit rate is subject to increases under indexing rules reflecting the growth in average national wages. Contact your local RRB field office if you need information about the maximum benefits rates for other periods.

Your daily rate of pay is your straight-time rate of pay including any cost-of living allowances, but not including overtime or other extra pay.

For mileage employees in train and engine service, the straight-time rate is the rate of pay for the number of miles in a basic workday, depending on occupation and class of service. Earnings for miles run over the number of miles in a basic workday do not count.

Number of Days of Sickness

After you have satisfied the benefit year waiting period requirement, benefits are generally paid for days of sickness over 4 in 14-day claim periods.

Tier I Tax Deductions

Except for benefits paid for on-the-job injuries, sickness benefits are subject to Tier I railroad retirement taxes if paid within 6 months after the month in which you last worked. Tier I tax deductions reduce the amount of benefits payable for a claim.