New Benefit Year for Railroad
Unemployment and Sickness Benefits
Published: June
2004
Office of Public Affairs 312-751-4777
A new benefit year under the Railroad Unemployment
Insurance Act begins
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, 2004?
Almost all employees will qualify for the new maximum
daily benefit rate of $56.00, which increased from $55.00 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 $560 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
$2,800 in calendar year 2003, not counting more than $1,120 for any month. Those who were first employed in the rail
industry in 2003 must also have at least five months of creditable railroad
service in 2003.
Under certain conditions, employees with 120 or more
months of railroad service who do not qualify on the basis of their 2003
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, 2004, 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 $2,825 in 2004 not counting earnings of more than $1,130 a month.
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 2003, not counting earnings of more than $1,447 per
month.
If normal benefits are exhausted, extended benefits
are payable for up to 65 days (13 consecutive weeks) 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 non-railroad
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 2004 the amount is $1,120, 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
unemployment benefits?
Claimants can apply for unemployment benefits by mail
or electronically.
To apply by mail, claimants must obtain an application
from their labor organization, employer, local Railroad Retirement Board office
or the Board's Web site at www.rrb.gov. The completed application should be mailed to
the local Board 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 apply electronically, claimants should go to the
Board's Web site and click on "MainLine Services" for directions on
establishing an RRB Internet Services account.
Once they establish their online accounts, they will be able to apply
for unemployment benefits, as well as conduct other business with the Board,
over the Internet. However, to ensure
security, they must first go online to get a Password Request Code, which they
will receive by mail in about 7 to 10 days.
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 Internet services.
Employees who have already established online accounts do not need to do
so again.
The local Board 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 Board office processes the application,
biweekly claim forms are mailed to the claimant as long as he or she remains
unemployed and eligible for benefits.
Claim forms should be signed and mailed on or after the last day of the
claim. The completed claim must be
received by a Board office within 15 days of the end of the claim or the date
the claim was mailed to the claimant, whichever is later. Although claimants cannot currently file
their biweekly claims over the Internet, the Board is planning to add this
service and other online services in the future.
Only one application need be filed during a benefit
year, even if a claimant becomes unemployed more than once. However, a claimant must, in such a case,
request biweekly claim forms from a Board field office within 30 days of the
first day for which he or she wants to resume claiming benefits.
10.
How does a person apply for sickness benefits?
An application for sickness benefits can be obtained
from railroad labor organizations, railroad employers, any Board office or the
Board'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.
The Board 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
Board's headquarters in
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 Board
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 Board makes an initial determination on the claim. In addition, the claimant's current employer
is also notified. The Board 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 Board also checks with other Federal agencies and
all 50 States, as well as the
12.
How long does it take to receive payment?
Persons who file an application for benefits may
expect to receive a claim form, or a decision on their application, within 15
days of the date they filed their application.
When they file biweekly claims, they may expect to receive a payment, or
a decision on a claim, within 15 days of the date a Board office receives the claim
form. However, claims for some benefits
may take longer to handle than others if they are more complex, or if a Board
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 a Board 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.
How can claimants receive more information on railroad unemployment or
sickness benefits?
Claimants with questions about unemployment or
sickness benefits should contact the nearest Board office. Most Board offices are open to the public
from
In addition, most of the toll-free Help Line services
are available through the Board's Web site at www.rrb.gov, which also
includes publications that may be downloaded.
A new service provides employee and spouse annuity estimates online, as
part of the Board's plan to allow the railroad public to conduct its business
with the agency online.
Posted