69146 Federal Register / Vol. 75, No. 217 / Wednesday, November 10, 2010 / Notices 

3The UPU Postal Operations Council is a 

designated body of the UPU which is responsible 

for rate setting. 

4The Postal Service states that services such as 

‘‘track and trace, home delivery, published delivery 

standards, and use of a common inquiry system’’ 

qualify UPU members for bonuses. Id. Members 

may also seek an inflation-related adjustment to the 

base rate which is capped at 5 percent per year. 

5 Docket Nos. MC2010–11 and CP2010–11, Order 

Adding Inbound Air Parcel Post at UPU Rates to 

Competitive Product List, December 15, 2009 

(Order No. 362). 

II. Background 

The Notice states that Governors’ 

Decision No. 09–15 established prices 

and classifications not of general 

applicability for Inbound Air Parcel Post 

at UPU Rates on November 16, 2009. Id. 

at 1. The rates authorized by Governors’ 

Decision No. 09–15 when there is no 

contractual relationship with the 

tendering postal operator are the highest 

possible inward land rates that the 

United States is eligible for under the 

parcel post regulations. Id. at 2. Air 

parcels comprise inbound parcels 

eligible to receive transportation by air 

rather than surface. Id., Attachment 2, at 

1. 

In the Postal Service’s Request in 

Docket Nos. MC2010–11 and CP2010– 

11, it explains the process for 

determining Inbound Air Parcel Post at 

UPU Rates. In its Request, the Postal 

Service indicates that the United States 

receives both air and surface parcels 

from foreign postal administrations 

which compensate the Postal Service for 

delivery of these parcels in the United 

States. Request at 2. It maintains that it 

has negotiated separate agreements for 

parcel rates with certain foreign posts, 

but most compensate it at the United 

States default rates for inbound parcel 

delivery. Id. Payments between postal 

administrations for handling and 

delivering parcel post are referred to as 

inward land rates. The Postal Service 

notes that inward land rates are set 

according to formulas in the UPU Parcel 

Post Regulations which constitute 

international law. Id. More specifically, 

the UPU Postal Operations Council 

establishes inward land rates.3 Such 

rates are based on a percentage of each 

member’s inward land rate in 2004. Id. 

at 3. UPU members may qualify for 

percentage ‘‘bonuses’’ to their base rate 

based upon their provision of certain 

value-added services.4 Id. The Postal 

Service states it is responsible for 

gathering information that the UPU 

Postal Operations Council uses to 

calculate the rates, including 

completion of a questionnaire on service 

bonus eligibility and submission of 

annual inflation information from the 

Consumer Price Index for All Urban 

Consumers. Id. Based on this and 

similar information from the member 

posts, the UPU International Bureau 

publishes an annual notice establishing 

the postal administration’s parcel rates 

for the following year. Id. 

The Postal Service states that because 

of the unique mechanism for setting 

inward land rates, it chose to establish 

rates for inbound air parcels by 

reference to the Universal Postal 

Convention. Id. 

In Order No. 362, the Commission 

approved the addition of Inbound Air 

Parcel Post at UPU Rates to the 

competitive product list.5

The Postal Service states in its Notice 

that the rates in its filing comport with 

the Governors’ Decision are ‘‘the highest 

possible inward land rates for which the 

Postal Service was eligible based on 

inflation increases and other factors.’’ 

Notice at 2–3. 

The Postal Service asserts that its 

filing demonstrates compliance with 39 

U.S.C. 3633. Id. at 3. 

III. Notice of Filing 

The Commission establishes Docket 

No. CP2011–27 for consideration of 

matters related to the issues identified 

in the Postal Service’s Notice. 

Interested persons may submit 

comments on whether the Postal 

Service’s filing is consistent with the 

policies of 39 U.S.C. 3632 or 3633, and 

39 CFR part 3015. Comments are due no 

later than November 18, 2010. The 

public portions of these filings can be 

accessed via the Commission’s Web site 

(http://www.prc.gov). 

The Commission appoints Paul L. 

Harrington as Public Representative in 

this proceeding. 

IV. Ordering Paragraphs 

It is ordered: 

1. The Commission establishes Docket 

No. CP2011–27 for consideration of the 

issues raised in this docket. 

2. Comments by interested persons in 

this proceeding are due no later than 

November 18, 2010. 

3. Pursuant to 39 U.S.C. 505, Paul L. 

Harrington is appointed to serve as 

officer of the Commission (Public 

Representative) to represent the interest 

of the general public in this proceeding. 

4. The Secretary shall arrange for 

publication of this order in the Federal 

Register. 

By the Commission. 

Shoshana M. Grove, 

Secretary. 

[FR Doc. 2010–28371 Filed 11–9–10; 8:45 am] 

BILLING CODE 7710–FW–P 

RAILROAD RETIREMENT BOARD 

2011 Railroad Experience Rating 

Proclamations, Monthly Compensation 

Base and Other Determinations 

AGENCY: Railroad Retirement Board. 

ACTION: Notice. 

SUMMARY: Pursuant to section 8(c)(2) 

and section 12(r)(3) of the Railroad 

Unemployment Insurance Act (Act) (45 

U.S.C. 358(c)(2) and 45 U.S.C. 362(r)(3), 

respectively), the Board gives notice of 

the following: 

1. The balance to the credit of the 

Railroad Unemployment Insurance 

(RUI) Account, as of June 30, 2010, is 

$109,226.81; 

2. The September 30, 2010, balance of 

any new loans to the RUI Account, 

including accrued interest, is 

$47,377,543.22; 

3. The system compensation base is 

$3,509,356,938.87 as of June 30, 2010; 

4. The cumulative system unallocated 

charge balance is ($328,338,446.22) as of 

June 30, 2010; 

5. The pooled credit ratio for calendar 

year 2011 is zero; 

6. The pooled charged ratio for 

calendar year 2011 is zero; 

7. The surcharge rate for calendar year 

2011 is 2.5 percent; 

8. The monthly compensation base 

under section 1(i) of the Act is $1,330 

for months in calendar year 2011; 

9. The amount described in sections 

1(k) and 3 of the Act as ‘‘2.5 times the 

monthly compensation base’’ is $3,325 

for base year (calendar year) 2011; 

10. The amount described in section 

4(a–2)(i)(A) of the Act as ‘‘2.5 times the 

monthly compensation base’’ is $3,325 

with respect to disqualifications ending 

in calendar year 2011; 

11. The amount described in section 

2(c) of the Act as ‘‘an amount that bears 

the same ratio to $775 as the monthly 

compensation base for that year as 

computed under section 1(i) of this Act 

bears to $600’’ is $1,718 for months in 

calendar year 2011; 

12. The maximum daily benefit rate 

under section 2(a)(3) of the Act is $66 

with respect to days of unemployment 

and days of sickness in registration 

periods beginning after June 30, 2011. 

DATES: The balance in notice (1) and the 

determinations made in notices (3) 

through (7) are based on data as of June 

30, 2010. The balance in notice (2) is 

based on data as of September 30, 2010. 

The determinations made in notices (5) 

through (7) apply to the calculation, 

under section 8(a)(1)(C) of the Act, of 

employer contribution rates for 2011. 

The determinations made in notices (8) 

through (11) are effective January 1, 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 217 / Wednesday, November 10, 2010 / Notices 69147 

2011. The determination made in notice 

(12) is effective for registration periods 

beginning after June 30, 2011. 

ADDRESSES: Secretary to the Board, 

Railroad Retirement Board, 844 Rush 

Street, Chicago, Illinois 60611–2092. 

FOR FURTHER INFORMATION CONTACT: 

Marla L. Huddleston, Bureau of the 

Actuary, Railroad Retirement Board, 844 

Rush Street, Chicago, Illinois 60611– 

2092, telephone (312) 751–4779. 

SUPPLEMENTARY INFORMATION: The RRB 

is required by section 8(c)(1) of the 

Railroad Unemployment Insurance Act 

(Act) (45 U.S.C. 358(c)(1)) as amended 

by Public Law 100–647, to proclaim by 

October 15 of each year certain systemwide factors used in calculating 

experience-based employer contribution 

rates for the following year. The RRB is 

further required by section 8(c)(2) of the 

Act (45 U.S.C. 358(c)(2)) to publish the 

amounts so determined and proclaimed. 

The RRB is required by section 12(r)(3) 

of the Act (45 U.S.C. 362(r)(3)) to 

publish by December 11, 2010, the 

computation of the calendar year 2011 

monthly compensation base (section 1(i) 

of the Act) and amounts described in 

sections 1(k), 2(c), 3 and 4(a–2)(i)(A) of 

the Act which are related to changes in 

the monthly compensation base. Also, 

the RRB is required to publish, by June 

11, 2011, the maximum daily benefit 

rate under section 2(a)(3) of the Act for 

days of unemployment and days of 

sickness in registration periods 

beginning after June 30, 2011. 

Surcharge Rate 

A surcharge is added in the 

calculation of each employer’s 

contribution rate, subject to the 

applicable maximum rate, for a calendar 

year whenever the balance to the credit 

of the RUI Account on the preceding 

June 30 is less than the greater of $100 

million or the amount that bears the 

same ratio to $100 million as the system 

compensation base for that June 30 

bears to the system compensation base 

as of June 30, 1991. If the RUI Account 

balance is less than $100 million (as 

indexed), but at least $50 million (as 

indexed), the surcharge will be 1.5 

percent. If the RUI Account balance is 

less than $50 million (as indexed), but 

greater than zero, the surcharge will be 

2.5 percent. The maximum surcharge of 

3.5 percent applies if the RUI Account 

balance is less than zero. 

The system compensation base as of 

June 30, 1991 was $2,763,287,237.04. 

The system compensation base for June 

30, 2010 was $3,509,356,938.87. The 

ratio of $3,509,356,938.87 to 

$2,763,287,237.04 is 1.26999354. 

Multiplying 1.26999354 by $100 million 

yields $126,999,354. Multiplying $50 

million by 1.26999354 produces 

$63,499,677. The Account balance on 

June 30, 2010, was $109,226.81. 

Accordingly, the surcharge rate for 

calendar year 2011 is 2.5 percent. 

Monthly Compensation Base 

For years after 1988, section 1(i) of the 

Act contains a formula for determining 

the monthly compensation base. Under 

the prescribed formula, the monthly 

compensation base increases by 

approximately two-thirds of the 

cumulative growth in average national 

wages since 1984. The monthly 

compensation base for months in 

calendar year 2011 shall be equal to the 

greater of (a) $600 or (b) $600 [1 + 

{(A¥37,800)/56,700}], where A equals 

the amount of the applicable base with 

respect to tier 1 taxes for 2011 under 

section 3231(e)(2) of the Internal 

Revenue Code of 1986. Section 1(i) 

further provides that if the amount so 

determined is not a multiple of $5, it 

shall be rounded to the nearest multiple 

of $5. 

The calendar year 2011 tier 1 tax base 

is $106,800. Subtracting $37,800 from 

$106,800 produces $69,000. Dividing 

$69,000 by $56,700 yields a ratio of 

1.21693122. Adding one gives 

2.21693122. Multiplying $600 by the 

amount 2.21693122 produces the 

amount of $1,330.16, which must then 

be rounded to $1,330. Accordingly, the 

monthly compensation base is 

determined to be $1,330 for months in 

calendar year 2011. 

Amounts Related to Changes in 

Monthly Compensation Base 

For years after 1988, sections 1(k), 3, 

4(a–2)(i)(A) and 2(c) of the Act contain 

formulas for determining amounts 

related to the monthly compensation 

base. 

Under section 1(k), remuneration 

earned from employment covered under 

the Act cannot be considered subsidiary 

remuneration if the employee’s base 

year compensation is less than 2.5 times 

the monthly compensation base for 

months in such base year. Under section 

3, an employee shall be a ‘‘qualified 

employee’’ if his/her base year 

compensation is not less than 2.5 times 

the monthly compensation base for 

months in such base year. Under section 

4(a–2)(i)(A), an employee who leaves 

work voluntarily without good cause is 

disqualified from receiving 

unemployment benefits until he has 

been paid compensation of not less than 

2.5 times the monthly compensation 

base for months in the calendar year in 

which the disqualification ends. 

Multiplying 2.5 by the calendar year 

2011 monthly compensation base of 

$1,330 produces $3,325. Accordingly, 

the amount determined under sections 

1(k), 3 and 4(a–2)(i)(A) is $3,325 for 

calendar year 2011. 

Under section 2(c), the maximum 

amount of normal benefits paid for days 

of unemployment within a benefit year 

and the maximum amount of normal 

benefits paid for days of sickness within 

a benefit year shall not exceed an 

employee’s compensation in the base 

year. In determining an employee’s base 

year compensation, any money 

remuneration in a month not in excess 

of an amount that bears the same ratio 

to $775 as the monthly compensation 

base for that year bears to $600 shall be 

taken into account. 

The calendar year 2011 monthly 

compensation base is $1,330. The ratio 

of $1,330 to $600 is 2.21666667. 

Multiplying 2.21666667 by $775 

produces $1,718. Accordingly, the 

amount determined under section 2(c) is 

$1,718 for months in calendar year 

2011. 

Maximum Daily Benefit Rate 

Section 2(a)(3) contains a formula for 

determining the maximum daily benefit 

rate for registration periods beginning 

after June 30, 1989, and after each June 

30 thereafter. Legislation enacted on 

October 9, 1996, revised the formula for 

indexing maximum daily benefit rates. 

Under the prescribed formula, the 

maximum daily benefit rate increases by 

approximately two-thirds of the 

cumulative growth in average national 

wages since 1984. The maximum daily 

benefit rate for registration periods 

beginning after June 30, 2011, shall be 

equal to 5 percent of the monthly 

compensation base for the base year 

immediately preceding the beginning of 

the benefit year. Section 2(a)(3) further 

provides that if the amount so computed 

is not a multiple of $1, it shall be 

rounded down to the nearest multiple of 

$1. 

The calendar year 2010 monthly 

compensation base is $1,330. 

Multiplying $1,330 by 0.05 yields 

$66.50, which must then be rounded 

down to $66. Accordingly, the 

maximum daily benefit rate for days of 

unemployment and days of sickness 

beginning in registration periods after 

June 30, 2011, is determined to be $66. 

Dated: November 4, 2010. 

By authority of the Board. 

Beatrice Ezerski, 

Secretary to the Board. 

[FR Doc. 2010–28345 Filed 11–9–10; 8:45 am] 

BILLING CODE 7905–01–P 


emcdonald on DSK2BSOYB1PROD with NOTICES