Prepared by Public Affairs 312-751-4777
A new benefit year under the Railroad Unemployment Insurance Act
begins July 1, 2012. 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, 2012?
Almost all employees will qualify for the maximum daily benefit rate, which
remains $66. Benefits are generally payable for the number of days of
unemployment or sickness over four in 14-day claim periods, which yields $660
for each two full weeks of unemployment or sickness. Sickness benefits payable
for the first 6 months after the month the employee last worked are subject to
tier I railroad retirement payroll taxes, unless benefits are being paid for an
on-the-job injury.
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 $3,325 in calendar year 2011,
counting no more than $1,330 for any month. These are the same amounts that
applied to calendar year 2010. Those who were first employed in the rail
industry in 2011 must also have at least five months of creditable railroad
service in 2011.
Under certain conditions, employees who do not qualify on the basis of their
2011earnings may still be able to receive benefits in the new benefit year.
Employees with 120 or more cumulative months of service who received normal
benefits in the benefit year ending June 30, 2012, may be eligible for extended
benefits, and employees with 120 or more cumulative months of service might
qualify for accelerated benefits if they have rail earnings of at least
$3,412.50 in 2012, not counting earnings of more than $1,365 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 2011, counting earnings up to $1,718 per month, the same amount as
in calendar year 2010.
If normal benefits are exhausted, extended benefits are payable for up to 65
days (during 7 consecutive claim periods) to employees with at least 10 years of
service (120 or more cumulative service months).
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 registration periods. Initial sickness claims must also
begin with four consecutive days of sickness. 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. (If an employee has at least five days of unemployment
or five days of sickness in a 14-day period, he or she should still file for
benefits.) 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.
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 not payable for days of unemployment during the
first 14 days of the strike, but benefits are payable during subsequent 14-day
periods.
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 registration 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 2012, the amount remains $1,330,
which corresponds to the base year monthly compensation amount used in
determining eligibility for benefits. Also, even if an earnings test applies on
the first claim in a benefit year, this will not prevent the first claim from
satisfying the waiting period in a 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 website 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 online account at www.rrb.gov. For security purposes,
first time users must apply for a Password Request Code (PRC), which they will
receive by regular mail in about 10 business days. To do this, they should click
on the "request a PRC" link on the "Benefit
Online Services" page of the RRB's website. 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 right 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 available on the RRB's website, as long as he or
she remains unemployed and eligible for benefits. Claim forms should be signed
and sent on or after the last day of the claim. This can be done by mail or
electronically. The completed claim must be received by an RRB office within 15
days of the end of the claim or the date the claim form was mailed to the
claimant or made available online, whichever is later. Claimants must
not file both a paper claim and an
online claim for the same period(s).
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 office within 30 days of the first day for
which he or she wants to resume claiming benefits. These claims may then be
filed by mail or online.
10. How does a person apply for and claim
sickness benefits?
An application for
sickness benefits can be obtained from railroad labor organizations, railroad
employers, any RRB office or the agency's website. 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. Employees should note that they must
indicate on the application whether they are applying for sickness benefits
because they were injured at work or have a work-related illness. They must also
indicate whether they have filed or expect to file a lawsuit or claim against a
third party for personal injury. If a claimant receives sickness benefits for an
injury or illness for which he or she is paid damages, it is important to be
aware that the RRB is entitled to reimbursement of either the amount of the
benefits paid for the injury or illness, or the net amount of the settlement,
after deducting the claimant's gross medical, hospital, and legal expenses,
whichever is less.
If the employee is too sick to complete the application, someone else may do so.
In such cases, a family member should also complete Form SI-10, "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 RRB also makes claim forms available for
completion online by those employees who establish an online account as
described in question 9. 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 or made available online, whichever is
later. Benefits may be lost if an application or claim is filed late.
Claimants are reminded that while claim forms for sickness benefits can be
submitted online, applications and statements of sickness must be returned to
the RRB by mail.
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 conducts 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 the U.S.
Treasury's Direct Deposit program. 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.
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 "Benefit Online Services" page on the RRB's website, www.rrb.gov. 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
their address currently on record and, if applicable, their Direct Deposit
information.
To use this service, claimants must establish an online 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
an RRB office by calling
toll
free at 1-877-772-5772. Claimants can also find the address of the RRB
office serving their area and get information about their claims and benefit
payments by calling this toll-free number. 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. Field office locations can also be found by visiting www.rrb.gov.
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