Prepared by Public Affairs 312-751-4777
The American Recovery and Reinvestment Act of 2009 (Recovery Act), signed
into law by President Obama on February 17, 2009, contains a number of
provisions that affect railroad retirement annuitants and railroad workers.
Among other provisions, this Act provides up to 13 weeks of special extended
unemployment benefits for certain railroad workers who exhaust their rights to
the benefits normally provided under the Railroad Unemployment Insurance Act (RUIA).
The following questions and answers provide information about these special
extended unemployment benefits.
1. Who will receive the special extended
unemployment benefits?
- Railroad workers who previously were not eligible for extended unemployment
benefits because they did not have 10 years of railroad service (120 cumulative
service months) may be eligible for up to 65 days within an extended period
consisting of 7 consecutive 2-week registration periods.
- Railroad workers who were previously eligible for extended unemployment
benefits of up to 65 days may now be eligible for extended benefits of up to 130
days within an extended period consisting of 13 consecutive 2-week registration
periods.
2. I have 8 years of railroad service and I
ran out of my normal unemployment benefits on January 15, 2009. Am I eligible to
receive the special extended unemployment benefits?
Yes, you would be eligible to receive up to 65 days within an extended period
consisting of 7 consecutive 2-week registration periods. Your extended benefit
period would begin on January 16, 2009, and benefits would be payable provided
that you were still unemployed and ready, willing and able to work.
3. I have 20 years of railroad service and I
exhausted my extended unemployment benefits on February 27, 2009. Am I eligible
to receive the special extended unemployment benefits?
Yes, you would be eligible to receive an additional 65 days within an extended
period consisting of a total of 13 consecutive 2-week registration periods. Your
extended benefit period would last an additional 7 consecutive 2-week
registration periods past February 27. Benefits would be payable provided that
you were still unemployed and ready, willing and able to work.
4. What effect will the new law have on
sickness benefits?
The extended unemployment benefit provisions of the American Recovery and
Reinvestment Act apply only to unemployment benefits. No additional extended
sickness benefits are payable. If you have less than 10 years of service, you
are still not eligible for extended sickness benefits. If you have 10 or more years of service, you are still eligible to receive up to 65 days
within an extended sickness benefit period consisting of 7 consecutive 2-week
registration periods.
5. What must I do to receive my special
extended unemployment benefits?
The Railroad Retirement Board (RRB) will mail notices to eligible employees who
previously exhausted their rights to normal or extended unemployment benefits.
The notice will provide information about their extended unemployment
benefit period beginning and ending dates. The RRB will also mail claim forms
for days in the extended period. If you do not receive a notice and you believe
you are eligible for these added benefits, you can contact your local RRB office
as outlined below.
6. When will my special extended
unemployment benefit period begin?
In general, your special extended unemployment benefit period will begin the day
after you exhausted any normal or regular extended unemployment benefits.
7. What is the latest date that a special
extended benefit period can begin?
Special extended unemployment benefit periods can begin no later than December
31, 2009.
8. When will my special extended
unemployment benefits end?
Special extended unemployment benefits are being paid from the appropriation of
$20 million provided by the American Recovery and Reinvestment Act. Payment of
special unemployment benefits will stop at the end of a person’s extended
unemployment benefit period or when the $20 million has been spent - whichever
comes first.
9. I returned to work and am now unemployed
again. Can my special extended unemployment period beginning date be changed?
It depends. Extended benefit periods are frozen periods once they are
established. If you exhausted normal benefits and did not receive any extended
unemployment benefits, we can change the beginning date of your special extended
unemployment benefit period. If, however, you already received some extended
unemployment benefits but are now eligible for the additional 65 days, your
extended benefit period beginning date can’t be changed. Instead, we will change
the ending date of your extended period to allow for the payment of any
additional days you may be entitled to.
10. How can I file my claims?
Upon receipt of the unemployment claims, you may file your claims by mailing
them to your local RRB office or by filing them over the Internet at www.rrb.gov.
You will need to establish a PIN/password to file your claims over the Internet.
11. What is the fastest way to get my
benefits?
Filing your claims over the Internet and signing up for Direct Deposit help
ensure faster delivery of your claims and benefit payments. You should establish
a PIN/password account at www.rrb.gov now so that you can file your claims over
the Internet once you receive notice that your extended period has been
established. In addition, please notify your local RRB office if you have moved
or if your bank
account information has changed. Also, even if your Direct Deposit information
has not changed but you were last paid benefits in 2008, call us to report this
information again so we can pay your benefits faster and safer electronically.
You may contact your local RRB office to sign up for Direct Deposit, make
changes to your existing Direct Deposit information and update your address.
12. When will you start paying these special
benefits?
Benefits paid under the Railroad Unemployment Insurance Act are financed from
taxes paid by railroad employers. However, these special extended unemployment
benefits are being paid specifically from a $20 million appropriation provided
under the Recovery Act legislation. Many of our automated systems need to be
changed to allow for this exception. We are working on these changes and expect
to begin paying eligible individuals no later than June 30, 2009.
13. What if I exhaust all of my normal,
regular extended and/or special extended unemployment benefits?
A new benefit year begins July 1, 2009. You may receive unemployment benefits
beginning
July 1 or later if your railroad earnings were at least $3,200 in calendar year
2008, counting no more than $1,280 a month. You can obtain an application for
benefits at your local RRB office or file an application over the Internet at
www.rrb.gov. Applications are also available through railroad employers and many
labor organizations. If you file for unemployment benefits, your application
must be received within 30 days of the first day for which you want to claim
benefits, or you may lose benefits.
14. Will the special extended unemployment
benefits I receive because of the Recovery Act count as income for Federal
income tax purposes?
Yes. Under current law, all unemployment benefits are subject to taxation. We
will report the amount of the special extended benefits you receive because of
the Recovery Act on the Form 1099-G you receive in January, along with all other
railroad unemployment benefits paid to you during the previous year. Under
another provision of the Recovery Act, however, there will be no Federal income
tax on the first $2,400 of unemployment benefits paid to you in 2009. This
special rule applies only to unemployment benefits paid to you in 2009.
15. I am a railroad employer. Will the
payment of these special extended unemployment benefits to my employees affect
my RUIA experience-based contribution rate?
No, any special extended unemployment benefits paid based on the American
Recovery and Reinvestment Act of 2009 will be charged to the $20 million
appropriation we will receive. These benefits will not be charged to the
claimant’s base year employer’s benefit account balance and consequently will
not be used when calculating the base year employer’s experience-rated RUIA
contribution rate for any future years.
16. How do I get more information?
Please call your local RRB office toll-free at 1-877-772-5772 (1-877-RRB-5RRB),
or check our Web site at www.rrb.gov for further information.
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