U.S. Railroad Retirement Board

844 North Rush Street

Chicago, IL 60611-1275

Toll Free: (877) 772-5772

TTY: (312) 751-4701

Directory: (312) 751-4300

www.rrb.gov

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U.S. Railroad Retirement Board

Mission Statement

The Railroad Retirement Board’s mission is to administer retirement/survivor 

and unemployment/sickness insurance benefit programs for railroad workers and 

their families under the Railroad Retirement Act and the Railroad Unemployment 

Insurance Act. These programs provide income protection during old age and 

in the event of disability, death or temporary unemployment and sickness. The 

Railroad Retirement Board also administers aspects of the Medicare program and 

has administrative responsibilities under the Social Security Act and the Internal 

Revenue Code.

In carrying out its mission, the Railroad Retirement Board will pay benefits to 

the right people, in the right amounts, in a timely manner, and will take appropriate 

action to safeguard our customers’ trust funds. The Railroad Retirement Board will 

treat every person who comes into contact with the agency with courtesy and concern, 

and respond to all inquiries promptly, accurately and clearly.

If you have comments or suggestions regarding the information

in this report, please let us know. You can call us at 312-751-4777,

e-mail us at opa@rrb.gov or write us at the following address:

Public Affairs

U.S. Railroad Retirement Board 

844 North Rush Street

Chicago, IL 60611-1275
UNITED STATES

RAILROAD RETIREMENT BOARD

2017 Annual Report

For Fiscal Year Ended September 30, 2016

The Report in Brief 1

A Review of Operations 6

Administrative Developments 34

Legal Rulings 44

Statistical Tables 47

www.rrb.gov

1

The Report in Brief

Benefits and Beneficiaries

Benefits paid under the Railroad Retirement and Railroad Unemployment 

Insurance Acts totaled approximately $12.5 billion in the fiscal year ending 

September 30, 2016. Retirement and survivor benefits were paid by the RRB to about 

553,000 beneficiaries during the fiscal year, of whom 522,000 were on the RRB’s 

annuity rolls at the end of the year. Approximately 33,000 railroad employees were paid 

unemployment and/or sickness insurance benefits. Almost 2,000 beneficiaries received 

payments under both the Railroad Retirement Act and the Railroad Unemployment 

Insurance Act.

Retirement and survivor benefit payments of $12.3 billion during fiscal year 2016 

were $173.0 million more than payments in the prior year. Employee and spouse 

annuitants were paid some $10.2 billion, accounting for 83 percent of the total 

payments. Employees received over $7.3 billion in age annuities (including $1.2 billion 

to annuitants full retirement age and over originally awarded a disability annuity), 

$1.1 billion in disability annuities and $61.6 million in supplemental annuities, while 

spouses and divorced spouses received some $1.7 billion.1

 Survivors were paid 

$2.1 billion in annuities and $2.7 million in lump-sum benefits. The total number of 

beneficiaries who received retirement and survivor benefits declined by about 6,000 

from fiscal year 2015.

Railroad retirement and unemployment insurance benefits totaling almost 

$12.5 billion were paid by the Railroad Retirement Board (RRB) to about 583,000 

beneficiaries in fiscal year 2016. Financial reports issued in 2017 on the 

solvency of the railroad retirement and railroad unemployment insurance systems 

were both favorable. Total railroad retirement system assets 

equaled $26.5 billion as of September 30, 2016. 

Note: Statistics are presented on the cash basis of accounting instead of the accrual basis 

of accounting for much of the Report. However, with the exception of the first paragraph 

on page 2, the Federal Income Tax Transfers section on page 9 and the accompanying 

table on page 10, which are also presented as cash, the information on pages 2, 6-14 and 

26-28 is presented on the accrual basis of accounting. The primary difference between 

the two bases of accounting is that the cash basis recognizes revenue and expenditures 

only when cash is received and paid. The accrual basis, on the other hand, recognizes 

revenue when it is earned and expenses when they are incurred.

1 In the Annual Reports for the years through 2014, annuitants who were full retirement age and over and 

who were originally awarded a disability annuity were included in the disability counts. Effective with the 

2015 and later reports, annuitants full retirement age and over originally awarded a disability annuity are 

included in the employee age and service counts because a disability annuity converts to an age and service 

annuity when the annuitant attains full retirement age.
2 2017 Annual Report, U.S. Railroad Retirement Board

Gross unemployment and sickness benefits paid in fiscal year 2016 totaled about

$155.8 million. Net benefits totaled over $133.3 million after adjustment for recoveries of 

benefit payments, including injury settlements, some of which were made in prior years. 

Total gross benefit payments increased by some $51.7 million while net benefit payments 

increased by over $50.1 million from the preceding year. In accordance with the Balanced 

Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act 

of 2011, amounts reflect a sequestration reduction of 7.2 percent for days of unemployment 

and sickness after September 30, 2013, 7.3 percent for days after September 30, 2014, and 

6.8 percent for days after September 30, 2015.

Gross unemployment benefits increased by 119 percent compared to the previous 

year due to an 8 percent decline in employment for fiscal year 2016 as railroad employers 

restructured their organizations and coal shipments fell. Gross unemployment benefits 

totaling $80.2 million ($77.6 million net) were paid to 17,200 claimants, while gross 

sickness benefits of $75.6 million ($55.7 million net) were paid to 16,500 claimants. This 

includes a total of $0.2 million net recoveries in temporary extended unemployment 

benefits under the American Recovery and Reinvestment Act of 2009 and the Worker, 

Homeownership, and Business Assistance Act of 2009, as amended by the Tax Relief, 

Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the Temporary 

Payroll Tax Cut Continuation Act of 2011, the Middle Class Tax Relief and Job Creation 

Act of 2012, and the American Taxpayer Relief Act of 2012.

Financial Reports

The RRB’s 2017 railroad retirement financial report to Congress, which addressed 

the period 2017-2041, was generally favorable, concluding that, barring a sudden, 

unanticipated, large decrease in railroad employment, or substantial investment losses, 

the railroad retirement system will experience no cash-flow problems during the 25-year 

projection period. The long-term stability of the system, however, is still uncertain. Under 

the current financing structure, actual levels of railroad employment and investment 

return over the coming years will determine whether corrective action is necessary.

The RRB’s 2017 railroad unemployment insurance financial report was also generally 

favorable. Even as projected maximum benefit rates increase 46 percent (from $72 to $105) 

from 2016 to 2027, experience-based contribution rates maintain solvency. The report also 

predicted average employer contribution rates well below the maximum throughout the 

projection period. A 1.5 percent surcharge was imposed in calendar year 2017 in order 

to maintain a minimum account balance. Under all three employment assumptions, the 

report projects a 1.5 percent surcharge in 2018, and a 1.5 percent surcharge in 2019 under 

the optimistic and intermediate assumptions, with the possibility of a 2.5 percent

surcharge under the pessimistic assumption. The report also finds a surcharge of 

1.5 percent in 2020 likely under the intermediate and pessimistic assumptions, with 

intermittent surcharges of 1.5 percent in later years.
 The Report in Brief 3

The National Railroad Retirement Investment Trust’s annual management report for 

fiscal year 2016 showed that, as of September 30, 2016, the net asset value of the Trustmanaged assets was $25.1 billion. This represented an increase from $24.5 billion in the 

previous year, with a net investment return for the year of 8.1 percent. The ending balance 

also reflects a transfer of $1.4 billion to the U.S. Treasury for the payment of railroad 

retirement (tier II) benefits. Total railroad retirement system assets, including those 

maintained at the Treasury, equaled $26.5 billion.

The 2017 railroad retirement and railroad unemployment insurance financial reports 

and the National Railroad Retirement Investment Trust’s 2016 annual management report 

are available at www.rrb.gov.

Service Delivery

Customer Service Plan

In fiscal year 2016, customers received benefit services within the timeframes promised 

in the RRB’s Customer Service Plan 98.9 percent of the time.

Service Enhancements

The RRB continued to improve its Employer Reporting System that allows employers 

to submit forms and information electronically, processed a cost-of-living adjustment for 

retirement and survivor benefits, took steps to further reduce improper payments, and 

enabled paperless processing for certain types of disability cases.

Office of Inspector General

During fiscal year 2016, the Office of Inspector General continued its independent 

oversight of agency operations and its efforts to combat fraud, waste, and abuse. This 

included the issuance of 10 audit reports that recommended improvements in agency 

operations.

Investigative activities resulted in 13 arrests, 32 indictments and/or informations, 

36 convictions, 15 civil judgments, 45 referrals to the Department of Justice, and more 

than $25.7 million in financial accomplishments. This reflects potential fraud amounts 

related to programs administered exclusively by the RRB and potential fraud amounts 

from other Federal programs such as Medicare or social security which were identified 

during Office of Inspector General joint investigative work.
4 2017 Annual Report, U.S. Railroad Retirement Board

Selected Data on Benefit Operations

 Fiscal Year Fiscal Year

 Retirement-Survivor 2016 2015

Employee age annuities

Number awarded 10,200 10,100

Awarded Age Annuity

 Number being paid at end of period 190,800 190,100

 Average being paid at end of period $2,675 $2,625

Disability converted to age annuity 1

 Number being paid at end of period 44,700 43,100

 Average being paid at end of period $2,358 $2,322

Employee disability annuities

Number of total disability annuities awarded 700 800

Number of occupational disability

 annuities awarded 900 900

Number of total disability annuities being paid 

 at end of period 10,300 11,000

Number of occupational disability annuities

 being paid at end of period 21,000 23,500

Average total disability annuity

 being paid at end of period $1,911 $1,892

Average occupational disability annuity

 being paid at end of period $3,053 $3,025

Supplemental employee annuities2

Number awarded 5,900 6,200

Number being paid at end of period 123,000 123,000

Average being paid at end of period $42 $42

Spouse and divorced spouse annuities

Number awarded, total 11,400 11,300

Number being paid to divorced

 spouses at end of period 4,900 4,700

Number being paid at end of period, total 145,900 143,900

Average being paid to divorced spouses

 at end of period $622 $610

Average being paid at end 

 of period, total $991 $975

Survivor annuities

Number awarded to aged widow(er)s 5,300 5,500

Number awarded, total 6,700 7,100

Number being paid to aged widow(er)s

 at end of period 90,900 94,300

Number being paid at end of period, total 116,800 120,700

Average being paid at end of period to

Aged widow(er)s $1,618 $1,576

Disabled widow(er)s3 $1,307 $1,285

Widowed mothers (fathers) $1,883 $1,835

Remarried widow(er)s $1,050 $1,036

Divorced widow(er)s $1,055 $1,040

Children $1,066 $1,055

Partition payments4

Number being paid at end of period 1,500 1,400

Average being paid at end of period $307 $308

Lump-sum survivor benefits awarded

Number of lump-sum death benefits 2,800 3,100

Average lump-sum death benefit $921 $927

Number of residual payments 5/ 5/

Average residual payment $5,516 $2,684
 The Report in Brief 5

Selected Data on Benefit Operations (Continued)

 Fiscal Year Fiscal Year

 Employees and Earnings6 2016 2015

Average employment 229,000 249,000

Creditable earnings, Railroad Retirement

 Act (billions):

 Tier I $18.91 $20.12

 Tier II $17.31 $18.50

Creditable earnings, Railroad

 Unemployment Insurance Act (billions) $3.99 $4.33

 Benefit Year Benefit Year

 Unemployment-Sickness7 2015-2016 2014-2015

Qualified employees 254,200 248,200

Unemployment benefits

Net amount paid (millions) $71.78 ($77.6)9 $30.88 

Beneficiaries 16,400 (17,200)9 7,600

Number of payments 112,300 52,100

Normal benefit accounts exhausted 3,300 1,900

Average payment per 2-week registration period $591 $578

Sickness benefits

Net amount paid (millions) $54.5 ($55.7)9 $48.4

Beneficiaries 16,000 (16,500)9 15,500

Number of payments 109,700 102,700

Normal benefit accounts exhausted 3,100 2,800

Average payment per 2-week registration period $592 $572

1 A disability annuity ends when the retiree attains full retirement age, at which time the annuity converts to an age 

and service annuity. Consequently, these annuitants are receiving age and service annuities. Full retirement age is 

age 65 for those born before 1938 and gradually increases to age 67 for those born 1960 and later.

2 Excludes partition payments to spouses and divorced spouses where the employee is deceased. Averages are 

after court-ordered partitions. In fiscal year 2016, there were no supplemental annuities awarded under the 1937 Act.

3 Average in current-payment status includes annuities to disabled widow(er)s age 60 and over now payable as aged 

widow(er)s’ annuities.

4 Limited to partition payments to spouses and divorced spouses where the employee is deceased or not otherwise 

entitled to an annuity. Partition payments from employees on the rolls are included with the employees’ annuities.

5 Fewer than 50.

6 Except for fiscal year 2015 employment, all figures in this section are preliminary.

7 In accordance with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget 

Control Act of 2011, amounts reflect a sequestration reduction of 9.2% for days of unemployment and sickness after 

February 28, 2013, 7.2% for days after September 30, 2013, 7.3% for days after September 30, 2014, and 6.8% for 

days after September 30, 2015.

8 Benefit years 2014-2015 and 2015-2016 include –$0.3 million and –$0.2 million, respectively, in temporary extended 

unemployment benefits authorized by the American Recovery and Reinvestment Act of 2009 and the Worker, 

Homeownership, and Business Assistance Act of 2009, as amended by the Tax Relief, Unemployment Insurance 

Reauthorization, and Job Creation Act of 2010, the Temporary Payroll Tax Cut Continuation Act of 2011, the Middle 

Class Tax Relief and Job Creation Act of 2012, and the American Taxpayer Relief Act of 2012. Benefits had to begin 

by December 31, 2013.

9 Data in parentheses are for fiscal year (October 1, 2015 – September 30, 2016). Unemployment benefits include 

−$0.2 million in temporary extended unemployment benefits.
A Review of Operations

6

RAILROAD RETIREMENT AND 

SURVIVOR PROGRAM

As of September 30, 2016, total railroad retirement system assets, including those 

maintained in U.S. Treasury accounts and those maintained by the National 

Railroad Retirement Investment Trust (the “Trust” or “NRRIT”), equaled $26.5 billion, an 

increase of $0.2 billion during the fiscal year. Amounts in the (RR) Account not needed 

to pay current administrative expenses and amounts in the Social Security Equivalent 

Benefit (SSEB) Account not needed to pay current benefits and administrative expenses 

are transferred to the NRRIT, whose Board of seven trustees is empowered to invest Trust 

assets in non-governmental assets, such as equities and debt, as well as in governmental 

securities. 

FINANCIAL OPERATIONS - U.S. TREASURY ACCOUNTS

During fiscal year 2016, railroad retirement and survivor benefit payments were 

financed through four U.S. Treasury accounts.

The SSEB Account, established in fiscal year 1985, pays the portion of railroad 

retirement benefits equivalent to a social security benefit from various income sources 

related to these benefits. The RR Account funds retirement, survivor and disability 

benefits, in excess of social security equivalent benefits, from payroll taxes on employers 

and employees and other income sources. Supplemental benefit payments are also paid 

from the RR Account. The Dual Benefits Payments (DBP) Account and Federal Payments 

(FP) Account, funded by congressional appropriations from general revenues, finance 

the phase-out costs of certain vested dual benefits and interest on unnegotiated checks, 

respectively. The four accounts together incurred $12.4 billion in benefit obligations 

(excluding $1.5 billion in social security benefits which were reimbursed by the Social 

Security Administration) during fiscal year 2016.

At the end of fiscal year 2016, total railroad retirement system assets equaled 

$26.5 billion. During fiscal year 2016, benefits totaling approximately $12.5 billion 

were paid under the Railroad Retirement and Railroad Unemployment Insurance Acts. 

Retirement and survivor benefits accounted for almost all of this amount. 

Net unemployment and sickness benefits totaled $132.3 million. 
 A Review of Operations 7

Financing Sources

Payroll Taxes

The primary source of income to the railroad retirement and survivor program is 

payroll taxes levied on covered employers and their employees. Payroll taxes amounted to 

$5.9 billion, representing 48.2 percent of total financing sources (excluding an increase of 

$774 million, mostly due to a change in NRRIT net assets) and $505.1 million less than in 

fiscal year 2015.

Railroad employees and employers pay tier I taxes which, by law, are the same as social 

security taxes. The 2016 rate of 7.65 percent was split between 6.20 percent for retirement 

and 1.45 percent for Medicare hospital insurance. The maximum amount of earnings 

subject to the 6.20 percent rate in calendar year 2016 was $118,500, and all earnings were 

subject to the 1.45 percent Medicare tax.

Since 2013, employees pay an additional 0.9 percent Medicare tax on earnings above 

$200,000 (for those who file an individual return) or $250,000 (for those who file a joint 

return). This additional tax rate is not reflected in the tax rates shown above.

Both employees and employers also pay a tier II tax to finance railroad retirement 

benefit payments over and above social security levels. This tax, on earnings up to $88,200 

in both 2016 and 2015, was 4.9 percent on employees in both years. It was 13.1 percent on 

employers in both 2016 and 2015.

Tier I and tier II taxes for fiscal year 2016 amounted to $2.8 billion and $3.1 billion, 

respectively.

Financial Interchange Transfers

The second major source of income to the railroad retirement and survivor program 

consists of transfers from the social security trust funds under a financial interchange 

between the two systems. The financial interchange is intended to place the Social 

Security Old-Age, Survivors and Disability Insurance and Hospital Insurance Trust Funds 

in the same position in which they would have been had railroad employment been covered 

by the Social Security and Federal Insurance Contributions Acts. This involves computing 

the amount of social security taxes that would have been collected on railroad employment, 

and computing the amount of additional benefits which social security would have paid to 

railroad retirement beneficiaries during the same fiscal year. 

In the computation of the latter amount, credit is given for any social security benefits 

actually paid to railroad retirement beneficiaries. When benefit reimbursements exceed 

payroll taxes, the difference, with an allowance for interest and administrative expenses, 

is transferred from the Social Security Trust Funds to the SSEB Account. If taxes exceed 

benefit reimbursements (this has not happened since 1951), a transfer would be made in 

favor of the Social Security Trust Funds. The net financial interchange transfer to the 

SSEB Account during fiscal year 2016 amounted to $4.1 billion.

(text continued on page 9)
8 2017 Annual Report, U.S. Railroad Retirement Board

Costs - Fiscal Year 2016 (In Millions)

TOTAL: $12,601.7

RETIREMENT AND SURVIVOR PROGRAM

Note.--Percentages may not add to 100 due to rounding.

Financing Sources - Fiscal Year 2016 (In Millions)

GROSS TOTAL: $12,286.21

1

Excludes −$774.0 million as shown under Other Financing Sources on page 11.

National Railroad 

Retirement 

Investment Trust

Transfers-In 11.5%

$1,410.0

Interest on

Investments 0.3%

$34.3

Federal Income 

Taxes 6.2%

$758.0

Payroll Taxes 48.2%

$5,927.4 Financial Interchange 33.6%

$4,123.7

General 

Appropriations 0.3%

$32.8

Benefit Payments 98.1%

$12,364.5

Salaries and 

Expenses 1.1%

$139.7

Interest 

Expense 0.8%

$97.5
 A Review of Operations 9

Interest on Investments and Other Revenue

Interest revenue decreased from $41.4 million in fiscal year 2015 to $34.3 million in 

fiscal year 2016. Interest revenue was also earned from financial interchange advances.

Federal Income Tax Transfers 

Legislation enacted in 1983 subjecting social security and railroad retirement benefits 

to Federal income taxes also provided for a transfer of the tax revenues to the social 

security and railroad retirement systems for the payment of benefits. Most of the revenue 

from income taxes on social security equivalent railroad retirement benefits is transferred 

to the SSEB Account, although a portion attributable to higher-income taxpayers is 

transferred to the Federal Hospital Insurance Trust Fund. Revenue derived from taxing 

regular railroad retirement benefits in excess of social security equivalent benefits is 

transferred to the RR Account. Revenue from taxing the vested dual benefits funded by the 

general revenue appropriations previously described is transferred to the DBP Account.

At the beginning of each quarter, income tax transfers are made from Treasury 

general funds to the SSEB, RR and DBP Accounts. These transfers are estimates of 

expected tax revenues for the quarter. Adjustments are made later to reconcile the 

estimates for a taxable year with actual tax revenues for the year. On a cash basis, 

original tax transfers for fiscal year 2016 amounted to $683 million during the year. 

Original transfers for fiscal year 2015 totaled $639 million. Net income tax transfers after 

adjustments were $759 million for fiscal year 2016, including a $76 million adjustment for 

calendar year 2012. Net transfers in fiscal year 2015 were $720 million, including 

$81 million in reconciliation adjustments.

The information in the preceding paragraph is on a fiscal year basis, while the table 

on page 10 shows income tax transfers to the Accounts for taxable (calendar) years 2007 

through 2016, including reconciliation adjustments through 2012.

General Appropriations

General revenue appropriations were provided by the Railroad Retirement Act of 1974 

to fund the phase-out costs of certain dual railroad retirement/social security benefits 

considered vested prior to 1975, and by the Railroad Retirement Solvency Act of 1983 to 

fund interest on unnegotiated checks. The total amounts appropriated by the Congress for 

vested dual benefits for fiscal years 2016 and 2015 were $28.0 million and $32.0 million, 

respectively. These amounts include Federal income tax transfers for 2016 and 2015. 

The amount appropriated for fiscal year 2016 was 12.5 percent less than fiscal year 2015, 

reflecting the continuing decrease in eligibility for these benefits, which are not increased 

for the cost of living. The total amount appropriated by the Congress for interest on 

unnegotiated checks was $150,000 for fiscal years 2015-2016, and also $150,000 for fiscal 

years 2014-2015. (text continued on page 13)
10 2017 Annual Report, U.S. Railroad Retirement Board

1 Includes non-SSEB portion of tier I.

2 Receives taxes on social security equivalent benefit (SSEB) portion of tier I.

3 Receives taxes on vested dual benefit component beginning October 1, 1988.

4 The year in parentheses is the year the adjustments were made.

Federal Income Tax Transfers by Recipient Account and 

Benefit Component, Taxable Years 2007-2016 (Millions)

 Revenue from taxes on

 RRA benefits

 treated as RRA benefits treated as

 SSA benefits private or public pensions

 Taxable year SSEB Tier II and

 tier I non-SSEB Vested 

 benefits tier I benefits1 dual benefits

 SSEB Account2 RR Account DBP Account3

Original transfers during the year

2007 $135 $334 $6

2008 144 325 5

2009 144 304 3

2010 159 315 3

2011 160 300 3

2012 194 318 4

2013 199 333 3

2014 250 348 2

2015 263 386 2

2016 281 412 2

Reconciliation adjustments4

2007 (2012) 35 −64 1

2008 (2012) 24 −69 1

2009 (2013) 20 2 1

2010 (2013) 23 16 1

2011 (2015) 32 49 -- 

2012 (2016) 17 60 −1
 A Review of Operations 11

Railroad Retirement and Survivor Program 

Consolidated Financing Sources, 

Costs and Net Position (Millions)1

For the Fiscal Year Ended September 30 2016 2015

 

Financing Sources:

Payroll Taxes $5,927.4 $6,432.5

Financial Interchange 4,123.7 4,057.0

Interest on Investments and Other Revenue 34.3 41.4

Federal Income Taxes 758.0 718.0

General Appropriations 32.8 36.8

Other 774.0 (1,566.1)

Transfers to the National 

 Railroad Retirement Investment Trust 0.0 0.0

Transfers from the National 

 Railroad Retirement Investment Trust 1,410.0 1,191.0

 Total Financing Sources 13,060.2 10,910.6

Costs:

Benefit Payments 12,364.5 12,199.7

Interest Expense 97.5 101.1

Salaries and Expenses2 139.7 139.1

Other (25.1) (29.7)

 Total Costs 12,576.6 12,410.2

Financing Sources over Costs 483.6 (1,499.6)

Net Position - Beginning of Period 25,147.8 26,647.4

Net Position - End of Period $25,631.4 $25,147.8

1 Prepared on an accrual basis of accounting. 

2

 Includes unemployment and sickness insurance salaries and expenses of approximately 

 $18.4 million and $18.1 million for fiscal years 2016 and 2015, respectively.
12 2017 Annual Report, U.S. Railroad Retirement Board

Market value of assets managed 

by NRRIT on September 30, 2016 $25.1 billion

Rate of return of investment portfolio 

managed by NRRIT for full year 

ended September 30, 2016 8.13%

Source: NRRIT 

All NRRIT annual management reports and quarterly updates are available on the 

RRB’s website at www.rrb.gov.

National Railroad Retirement Investment Trust (NRRIT) 

Fiscal Year 2016 Summary
 A Review of Operations 13

Other Financing Sources

Other financing sources consisted of $6.2 million to be provided by the Office of 

Personnel Management to pay future retirement benefits to RRB employees and 

$29.3 million from the railroad unemployment trust funds in transfers-in for current 

budget fiscal year salaries and expenses. These financing sources were offset by an 

increase in NRRIT net assets of $632.9 million, transfers-out of $7.3 million for salaries 

and expenses of the RRB’s Office of Inspector General, a gain on contingency liability 

of $0.1 million, and a $7.5 million decrease in unexpended appropriations.

Costs 

The RRB pays all salaries and expenses under a single administrative fund (Limitation 

on Administration) for both the railroad retirement and survivor program and the 

unemployment and sickness insurance program. Consequently, of the $139.7 million and 

$139.1 million shown on page 11 for salaries and expenses in fiscal years 2016 and 2015, 

respectively, about $18.4 million for fiscal year 2016 and $18.1 million for fiscal year 2015 

were for the unemployment and sickness insurance program. About $0.8 million in other 

costs for fiscal year 2016 and $0.9 million for fiscal year 2015 were for the unemployment 

and sickness insurance program. 

Excluding $17.6 million from total costs of $12.6 billion for fiscal year 2016 and 

$19.0 million from total costs of $12.4 billion for fiscal year 2015, total costs for the railroad 

retirement and survivor program for fiscal year 2016 increased $167.9 million, or 

1.4 percent.

Benefit Payments

In fiscal year 2016, railroad retirement benefit payments increased $164.9 million, or 

almost 1.4 percent, to about $12.4 billion on an accrual basis, including $27.5 million in 

vested dual benefits.

Interest Expense

Interest expense of $97.5 million represents interest on the financial interchange 

advances made by the U.S. Treasury during the fiscal year.

Salaries and Expenses

Excluding unemployment and sickness insurance salaries and expenses of 

$18.4 million for fiscal year 2016 and $18.1 million for fiscal year 2015, salaries and 

expenses for the railroad retirement and survivor program were about $121.3 million for 

fiscal year 2016 and about $121.0 million for fiscal year 2015, a $0.3 million or 

0.2 percent increase. Adjusted by the $18.4 million in salaries and expenses and 

$0.8 million in other costs for the unemployment and sickness insurance program, fiscal 

year 2016 administrative expenses for the railroad retirement and survivor program were 

about 0.96 percent of total costs.
14 2017 Annual Report, U.S. Railroad Retirement Board

Other Costs

Other costs consisted primarily of post-retirement benefits (pensions, health and life 

insurance) for RRB employees of $5.4 million for the railroad retirement and survivor 

program and $0.8 million for the unemployment and sickness insurance program. 

In addition, carrier refunds of $0.1 million were incurred. These costs were offset by 

approximately $30.9 million in reimbursements from the Centers for Medicare & Medicaid 

Services for Part B Medicare costs, reimbursement of approximately $0.4 million from the 

RRB’s Office of Inspector General for RRB-incurred expenses, and various other revenues 

of approximately $24,500.

NATIONAL RAILROAD RETIREMENT 

INVESTMENT TRUST OPERATIONS 

Funds not needed immediately for benefit payments or administrative expenses are 

invested through the NRRIT. The Trust was established pursuant to section 105 of the 

Railroad Retirement and Survivors’ Improvement Act of 2001 for the sole purpose of 

investing railroad retirement assets. The Act authorizes the Trust to invest the assets 

of the RR Account in a diversified investment portfolio in the same manner as those of 

private sector retirement plans. Prior to the Act, investment of RR Account assets was 

limited to U.S. Government securities. Although the Trust was created by Congress 

to hold and invest Federal assets, it is not an agency or instrumentality of the Federal 

government. It is a tax-exempt entity governed by a seven-member Board, three selected 

by rail management, three selected by rail labor and one independent trustee selected by 

the six rail trustees.

During fiscal year 2016, the net asset value of Trust-managed assets increased from 

$24.5 billion on October 1, 2015, to $25.1 billion on September 30, 2016. This includes 

$1.4 billion that the Trust transferred to the U.S. Treasury for the payment of railroad 

retirement benefits during the year. The rate of return on Trust-managed assets for the 

year (net of fees) was 8.1 percent.

Total railroad retirement system assets (Trust-managed assets and reserves held in 

Treasury accounts) grew from $20.7 billion in 2002 to $26.5 billion as of the end of fiscal 

year 2016, after net transfers for benefit payments of approximately $19.2 billion over the 

same time frame.

Trust operations are described in detail in the NRRIT Annual Management Report for 

fiscal year 2016, which is available on the RRB’s website at www.rrb.gov.

BENEFIT OPERATIONS

Retirement and survivor benefits paid, including vested dual benefits and supplemental employee annuities, totaled $12.3 billion in fiscal year 2016, $173 million more than in 

fiscal year 2015. Benefits were paid to about 552,500 beneficiaries in fiscal year 2016, and 

nearly 522,000 beneficiaries were being paid at the end of the year.
 A Review of Operations 15

The table shown here presents retirement and survivor benefit payments for fiscal years 

2016 and 2015, by type of benefit, and the percent changes in payments between the 2 years.

Under the two-tier railroad retirement formulas, the tier I annuity portion approximates 

a social security benefit and increases by the cost-of-living percentage applied to social 

security benefits. The tier II portion, which is comparable to retirement benefits paid over 

and above social security benefits to workers in other industries, increases by 32.5 percent of 

the social security percentage.

Effective December 2016, tier I benefits increased by 0.3 percent due to a cost-of-living 

adjustment, while tier II benefits increased by 0.1 percent. There was no cost-of-living 

increase effective in December 2015.

Monthly retirement and survivor 

benefits being paid numbered about 

654,100 at the end of the 2016 fiscal 

year, some 2,700 less than at the end 

of the prior year. Monthly beneficiaries 

on the rolls declined by approximately 

2,800 over the year, from 524,800 

to 522,000. The number of monthly 

benefits paid is always greater than the 

number of beneficiaries on the rolls, 

since many annuitants receive more 

than one type of benefit. Although the 

second benefit is usually a supplemental 

employee annuity, some employees also 

receive a spouse or widow(er)’s annuity.

Regular employee annuities in 

payment status at the end of fiscal year 

2016 numbered 266,900, about 900 less 

than at the end of the previous fiscal 

year. The number of age annuities 

being paid, including 44,700 disability 

annuities converted to age, rose slightly 

from 233,300 to 235,600 over the year, 

while disability annuities decreased 

from 34,500 to 31,300. Supplemental 

annuities being paid to employees 

declined by nearly 100, numbering 

123,000 at the end of the year. The number of divorced spouse annuities being paid rose 

approximately 200, to 4,900. Spouse and divorced spouse annuities together increased 

by almost 2,000, totaling 145,900 at year-end. About 116,800 monthly survivor benefits 

were being paid at the end of fiscal year 2016, a decrease of 3,900 from the previous year. 

Approximately 1,500 partition payments to spouses and divorced spouses where the employee 

Amount 

(in millions)

 Fiscal year Fiscal year Percent

 Type of benefit 2016 2015 change

Retirement benefits

Employee annuities

Age1 $7,309.2 $7,086.7 +3.1

Disability 1,106.2 1,197.0 −7.6

Supplemental2 61.6 61.1 +0.7

Spouse and divorced

spouse annuities 1,725.5 1,667.4 +3.5

 Total 10,202.4 10,012.2 +1.9

Survivor benefits

Annuities 2,136.5 2,153.9 −0.8

Lump-sum benefits 2.7 3.0 −10.1

 Total 2,139.2 2,156.9 −0.8

Partition payments3 5.4 5.0 +9.1

 Grand total $12,347.0 $12,174.1 +1.4

1A disability annuity ends when the retiree attains full retirement age, at which 

time the annuity converts to an age and service annuity. FY 2016 and FY 2015 

include $1,227.7 million and $1,161.2 million, respectively, in payments to 

annuitants full retirement age and over originally awarded a disability annuity.

2Excludes partition payments to spouses and divorced spouses where the 

employee is deceased.

3Limited to partition payments to spouses and divorced spouses where the 

employee is deceased or not otherwise entitled to an annuity. Partition payments 

from employees on the rolls are included with the employees’ annuities.

Note.--Detail may not add to total due to rounding.
16 2017 Annual Report, U.S. Railroad Retirement Board

is deceased or not otherwise entitled to an annuity were being paid at the end of fiscal year 

2016, an increase of nearly 200 from the prior year.

Retirement

Regular employee annuities

Awards of regular employee annuities numbered 11,900 in fiscal year 2016, nearly 200 

more than in fiscal year 2015. Data by type of annuity awarded during the year are given 

in the table shown here.

Railroad employees with 10 to 29 years of creditable service, or 5 to 9 years of service if 

at least 5 years were after 1995, are eligible for regular annuities based on age and service 

at age 62. Early retirement annuity reductions are applied to annuities awarded before full 

retirement age (the age at which an employee can receive full benefits with no reduction 

for early retirement). This ranges from age 65 for those born before 1938 to age 67 for those 

born in 1960 or later, 

the same as under social 

security. If an employee 

had any creditable 

railroad service before 

August 12, 1983, the 

retirement age for tier 

II purposes will remain 

65. The reduction for 

early retirement is 1/180 

for each of the first 36 

months the employee is 

under full retirement 

age when his or her 

annuity begins and 

1/240 for each additional 

month.

Rail employees with 

30 or more years of service are eligible for regular annuities based on age and service at age 

60. Certain early retirement reductions are applied if the employee first became eligible for 

a 60/30 annuity July 1, 1984, or later and retired at ages 60 or 61 before 2002. Employees 

who retire at 60 or older with at least 30 years of railroad service are referred to as 60/30 

retirees.

Disability awards are based either on total disability or on occupational disability. A 

total disability annuity is based on disability for all employment and is payable at any age 

to employees with at least 10 years of railroad service. Employees with 5-9 years of service, 

if at least 5 years were after 1995, may qualify for tier I only before retirement age on the 

basis of total disability if they also meet certain social security earnings requirements. An 

 

 Average

Employee annuities Age at

 awarded in Monthly Years of retirefiscal year 2016 Number Percent amount service ment

Age

Beginning at full

retirement age or over 1,700 15 $2,484 21.3 67.4

Unreduced, beginning 

at age 60 to under full

retirement age 5,900 49 3,912 37.2 60.9

Reduced, beginning at

age 62 to under full

retirement age 2,600 22 1,801 16.2 63.2

Disability 1,700 14 2,667 21.5 55.3

 Total 11,900 100 $3,060 28.0 61.6

Note.--Detail may not add to total due to rounding.
 A Review of Operations 17

employee is considered totally disabled 

if medical evidence shows that a 

permanent physical or mental condition 

exists which prevents the performance 

of any regular work. A condition is 

considered to be permanent if it has 

lasted or may be expected to last for at 

least 12 months.

An occupational disability annuity 

is based on disability for the employee’s 

regular railroad occupation and is 

payable to employees with a current 

connection with the rail industry at 

age 60 if the employee has 10 years of 

service, or at any age if the employee 

has at least 20 years of service. An 

employee is considered occupationally 

disabled if the physical or mental 

condition is such that the employee is 

permanently disabled for work in his or 

her regular railroad occupation, even 

though the employee may be able to 

perform other kinds of work.

Of the year’s 1,700 disability awards, 

700 averaging $1,944 per month were 

for total disability and 900 averaging 

$3,234 were for occupational disability. 

Many employees who are disabled for all 

employment but are otherwise qualified 

for an occupational disability annuity 

are initially awarded occupational 

disability annuities in order to expedite 

payment.

An estimated four-fifths of all 

employees recently awarded disability 

annuities will meet the medical criteria 

for a disability freeze determination. 

The standards for freeze determinations 

follow social security law and are 

comparable to the criteria for granting 

total disability. Also, an employee 

granted a disability freeze may qualify 

Number of monthly beneficiaries, 

September 30, 2011, and 2016 (thousands)

Amount of benefits paid,

fiscal years 2011 and 2016 (millions)

1

Includes $60.8 million in fiscal year 2011 and $61.6 million 

in fiscal year 2016 for supplemental annuities.

2

Includes divorced spouses.

1

Without supplemental annuity.

2

Includes divorced spouses.

Average monthly amount,

September 30, 2011, and 2016

 Employee Spouse Survivor

$7,399

$1,379

$2,165

$8,477

$1,726 $2,139

2

2011

2016

1

 Employee Spouse Aged widow(er)

$2,244

$839

$1,366

$2,622

$991

$1,618

1 2

2011

2016

 Employee Spouse

 (includes

 divorced

 spouses)

 Survivor

273

138 139

267

146

117

2011

2016
18 2017 Annual Report, U.S. Railroad Retirement Board

for early Medicare coverage and lower Federal income taxes on his or her annuity.

Of the employees who were awarded regular annuities in fiscal year 2016, some 8,400, 

or 71 percent, last worked for a railroad either in the calendar year their annuity began or 

in the preceding year. Such retirements are termed “immediate,” while those that occur 2 or 

more calendar years after the year of last railroad employment are called “deferred.” As a 

group, immediate retirees represent career railroad employees who worked in the industry 

until retirement. Awards based on immediate retirement averaged $3,547 per month, 

compared to $1,887 for the 3,500 awards based on deferred retirement. Immediate retirees 

averaged 33 years of railroad service, almost twice the average of 17 years for deferred 

retirees. Of the year’s awards, 51 percent of normal age retirements were immediate. 

While 95 percent of all 60/30 retirements were immediate, only 28 percent of the reduced 

age awards to employees with less than 30 years of service were immediate. Immediate 

retirements accounted for 74 percent of the year’s disability awards.

The 266,900 retired employees on the rolls as of September 30, 2016, were being paid 

regular monthly annuities averaging $2,622. The table shown here presents data by type of 

annuity for these benefits.

Of the 31,300 disability annuities being paid, 10,300 were for total disability and 

21,000 for occupational disability. The two types of disability annuities averaged $1,911 

and $3,053, respectively. In fiscal year 2016, payments totaled over $254 million for total 

disability annuities and $852 million for occupational disability annuities.

Almost 188,000 

employees on the 

rolls at the end of 

fiscal year 2016 

were immediate 

retirees and their 

regular annuities 

averaged $3,032 per 

month. Annuities of 

the 78,900 deferred 

retirees averaged 

$1,645. Although 

their average 

railroad retirement 

annuity was much 

lower, a greater 

proportion of the 

deferred annuitants 

also received social security benefits – 25 percent compared to 5 percent for the immediate 

retirees. Moreover, the average social security benefit paid to deferred retirees was higher 

than that paid to immediate retirees. Combined railroad retirement and social security 

 Employee annuities Average Percent

in current-payment status monthly immediate

on September 30, 2016 Number Percent amount retirements

Age

Beginning at full

retirement age or over 20,800 8 $2,065 48

Unreduced, beginning 

at age 60 to under full

retirement age 106,600 40 3,427 92

Reduced, beginning at

age 60 to under full

retirement age 63,500 24 1,612 29

Disability converted to

age annuity1 44,700 17 2,358 81

Disability 31,300 12 2,675 80

 Total 266,900 100 $2,622 70

1A disability annuity ends when the retiree attains full retirement age, at which time the annuity converts to an 

age and service annuity. Consequently, these annuitants are receiving age and service annuities. Full retirement age is age 65 for those born before 1938 and gradually increases to age 67 for those born 1960 and later.

Note.--Detail may not add to total due to rounding.
 A Review of Operations 19

benefits to deferred retirees who were dual beneficiaries averaged $1,853, while combined 

benefits to immediate retirees averaged $2,781. The table shown here presents numbers of 

beneficiaries and average benefit amounts for employees on the rolls who were receiving 

social security benefits, and for those who were not, by type of retirement.

Regular employee annuities consist of as many as three components: tier I, tier II, 

and a vested dual benefit. Reductions for early age retirement are made in all components 

in cases where the employee retired before full retirement age with less than 30 years of 

railroad service. The tier I 

component is based on the 

employee’s combined railroad 

and social security covered 

earnings, and is reduced 

by the amount of any social 

security benefit that the 

employee receives. The gross 

tier I amounts of employees 

on the rolls at the end of 

fiscal year 2016 averaged 

$1,992 per month. Tier I 

amounts of nearly 7,100 

employees were completely 

offset by social security 

benefits. Tier I amounts being paid averaged $1,840.

The employee tier II component is based solely on railroad earnings. Tier II amounts 

being paid at the end of fiscal year 2016 averaged $845. Employees are eligible for vested 

dual benefits if, based on their own earnings, they met certain vesting requirements and 

qualified for both railroad retirement and social security benefits at the end of 1974, or, 

in some cases, at the end of an earlier year of last railroad service. Nearly 13,200 retirees 

were receiving vested dual benefits averaging $160 at the end of the fiscal year.

Supplemental employee annuities

A supplemental annuity is payable to employees with a current connection with the 

rail industry at age 60 if the employee has at least 30 years of service, or at age 65 if the 

employee has 25-29 years of service. The employee must also have had some rail service 

before October 1981.

About 5,900 supplemental annuities were awarded in fiscal year 2016, nearly 300 

less than in fiscal year 2015. Approximately 4,700 of the awards (80 percent) began 

concurrently with the employee’s regular annuity, while the remaining 1,200 were to 

employees already receiving a regular annuity. Supplemental annuity awards averaged 

over $41 per month after court-ordered partitions; 85 percent were at the current 

maximum rate of $43. Supplemental annuities are reduced for any part of a private 

railroad pension attributable to employer contributions. During the fiscal year, 1,400 

 Type of retirement 

 

 Dual benefit status Total Immediate Deferred

Receiving social security benefit

 Number 28,600 8,900 19,700

 Average monthly amount:

 Railroad retirement (regular) $890 $1,694 $526

 Social security 1,252 1,087 1,327

 Combined benefit 2,142 2,781 1,853

Not receiving social security benefit

 Number 238,300 179,100 59,200

 Average monthly amount $2,829 $3,098 $2,016

Note.--Detail may not add to total due to rounding.
20 2017 Annual Report, U.S. Railroad Retirement Board

supplemental annuities were not awarded because they were entirely offset by private 

pensions. In fewer than 10 cases, the supplemental annuity was partially offset by the 

pension, or the supplemental annuity was not offset because the pension was reduced.

Supplemental annuities were being paid to almost 123,000, or 46 percent, of the retired 

employees on the rolls at the end of the 2016 fiscal year. These annuities averaged $42 

after court-ordered partitions.

Spouse and divorced spouse annuities

Annuity awards to spouses and divorced spouses of retired employees numbered 11,400 

in fiscal year 2016, 100 more than in the previous year. The table on page 21 presents 

numbers and average amounts of spouse and divorced spouse annuities awarded during 

the year and being paid at the end of the year, by type of annuity and whether subject to 

age reduction.

If an employee is at least age 62 and retires with 10-29 years of railroad service, or has 

5-9 years of service and at least 5 years were after 1995, the employee’s spouse is eligible 

for an annuity at age 62. Full retirement age for a spouse is gradually rising from 65 to 

67, depending on the year of birth. Early retirement reductions are applied to the spouse 

annuity if the spouse retires before full retirement age. The reduction for early retirement 

is 1/144 for each of the first 36 months the spouse is under full retirement age when her or 

his annuity begins and 1/240 for each month (if any) over 36.

If an employee retires with at least 30 years of service and is at least age 60, the 

employee’s spouse is eligible for an annuity at age 60. Prior to 2002, certain early 

retirement reductions were applied to the tier I component of such a spouse annuity if the 

employee retired before age 62, unless the employee attained age 60 and completed 

30 years of service prior to July 1, 1984. If a 30-year employee retired at age 62, no age 

reduction applied to the spouse annuity. December 2001 legislation liberalized early 

retirement benefits for 30-year employees retiring at ages 60 or 61 after 2001 and their 

spouses. A spouse of an employee qualified for an age and service annuity is eligible for 

a spouse annuity at any age if caring for the employee’s unmarried child, and the child is 

under age 18 or the child became disabled before age 22.

Of the approximately 2,700 reduced spouse annuities awarded in fiscal year 2016, 

fewer than 10 averaging $811 per month were to spouses of 30-year employees, and over 

2,700 averaging $542 were to spouses of employees with less than 30 years of service.

At the end of fiscal year 2016, nearly 141,000 spouse annuities averaging $1,004 per 

month were being paid, while 4,900 divorced spouse annuities averaging $622 per month 

were also being paid. These included some 90, averaging $642, where the employee was not 

yet entitled to an annuity. Families with an employee and spouse on the rolls were paid 

combined railroad retirement benefits averaging $3,844. This included $2,840 in regular 

and supplemental employee annuities and $1,004 in spouse annuities.

Approximately 56,000, or 38 percent, of the spouses and divorced spouses on the rolls 

were also receiving social security benefits. Combined railroad retirement and social 
 A Review of Operations 21

security benefits to these annuitants averaged $1,521 per month, including $388 in 

railroad retirement benefits and $1,133 in social security benefits. Railroad retirement 

annuities to the 87,000 

spouses not receiving 

social security benefits 

averaged $1,384, while 

railroad retirement 

annuities to the 2,900 

divorced spouses 

not receiving social 

security benefits 

averaged $827.

Like regular 

employee annuities, 

spouse annuities 

consist of up to three 

components. The tier I 

component equals onehalf of the employee’s 

tier I amount before 

any reduction for 

the employee’s social 

security benefit. The spouse tier I amount is reduced for the spouse’s receipt of a social 

security benefit and may be reduced for a spouse’s public service pension. The tier I portion 

may also be reduced if the spouse receives a railroad retirement employee annuity, but this 

reduction is usually restored through an addition to the spouse tier II amount. Divorced 

spouses receive only a tier I benefit.

The spouse tier II component equals 45 percent of the employee’s tier II amount. 

Railroad retirement amendments in 1981 precluded further awards of vested dual benefits 

to spouses.

Of the 141,000 spouses on the rolls at the end of fiscal year 2016, 94,200 were being 

paid tier I amounts averaging $881 per month. The tier I amounts of 46,800 spouses were 

completely offset by other benefits also due. Spouse tier II amounts averaged $452. Vested 

dual benefits averaging $137 were being paid to fewer than 50 spouses. The 4,900 divorced 

spouses on the rolls at the end of fiscal year 2016 were being paid tier I amounts averaging 

$640 per month, not reflecting all annuity adjustments.

Lump-sum retirement benefits

A lump-sum benefit may be payable at retirement to employees who received 

separation or severance payments after 1984. This benefit approximates the tier II payroll 

taxes deducted from separation or severance payments that did not yield additional service 

credits for retirement. About $0.4 million was paid in separation/severance lump-sum 

benefits during fiscal year 2016.

 In current-payment 

 Awarded in status on

 fiscal year 2016 September 30, 2016

 Monthly spouse Average Average

benefits Number amount Number amount

Beginning at full

retirement age or over 1,700 $598 16,700 $564

With minor or disabled 

child in care 400 1,202 1,800 1,278

Unreduced, beginning

at age 60 to under full

retirement age 5,800 1,495 75,900 1,392

Reduced rate 2,700 543 46,600 518

Total 10,600 1,091 141,000 1,004

Divorced spouse

annuities 800 651 4,900 622

Grand total 11,400 $1,062 145,900 $991

Note.--Detail may not add to total due to rounding.
22 2017 Annual Report, U.S. Railroad Retirement Board

Employees who have at least 10 years of railroad service and are not entitled to a 

vested dual benefit may be eligible for a dual retirement tax refund if they had concurrent 

railroad retirement and social security earnings within the period 1951-74. The refund 

is equal to the social security taxes that the employee paid on the combined railroad and 

social security earnings in excess of the annual railroad retirement creditable earnings 

maximum. During the 2016 fiscal year, the RRB paid nearly 200 dual retirement tax 

refunds averaging $66. Most of the payments were to employees retiring during the year. 

Fewer than 50 refunds were to survivors, mostly widows, of employees who died before 

receiving the refund. Employees entitled to dual retirement tax refunds for years after 

1974 may claim them on their Federal income tax returns.

Survivor 

Monthly benefits

Annuity awards to survivors of deceased railroad employees numbered 6,700 during 

fiscal year 2016, about 300 less than the previous year. About 116,800 survivor annuities 

were being paid at the end of the fiscal year, including 300 temporarily paid at spouse or 

divorced spouse annuity rates pending recomputation to widow(er)s’ rates. Approximately 

90,900, or 78 percent, of the survivor annuities were to aged widows and widowers.

1

The table on page 23 presents numbers and average monthly amounts of survivor 

annuities, by type, for those awarded in the year and those being paid at the end of the 

year.

Survivor annuities, like regular employee and spouse annuities, consist of as many 

as three components: tier I, tier II and, for widows and widowers only, a vested dual 

benefit. As with spouses, legislation in 1981 precluded new awards of vested dual benefits 

to widow(er)s. The tier I component is computed according to social security formulas and 

is based on the deceased employee’s combined railroad and social security earnings. A 

reduction is made for the survivor’s receipt of a social security benefit. There may also be 

a tier I reduction if the survivor receives a railroad retirement employee annuity or public 

pension. Remarried and divorced widow(er)s receive a tier I benefit only. A dependent 

parent receives only a tier I amount if another family member is also receiving benefits or 

if the parent has remarried.

Survivor tier II amounts are figured as a percentage of an employee tier II benefit. Prior 

to 2002, the percentages were 50 percent for a widow(er), 15 percent for a child, and 35 percent for a parent. The total tier II amount for a survivor family was subject to a minimum 

of 35 percent and a maximum of 80 percent of the employee tier II benefit, and all survivor 

tier II amounts were proportionately adjusted when either limit applied. December 2001 

legislation established an “initial minimum amount” for widow(er)s which provides a tier II 

benefit equal to 100 percent of the tier II amount of the deceased employee. The maximum 

tier II amount payable to a family rose to 130 percent of the employee’s tier II amount. 

Widows and widowers are guaranteed a total tier I and tier II amount not less than what 

they were paid as a spouse, any necessary increase being added to tier II.

1

Aged widower statistics in the Survivor section exclude benefits to disabled widow(er)s age 60 and over now payable as 

aged widow(er)’s annuities.
 A Review of Operations 23

Aged widow(er)s, who are eligible for benefits at age 60, have their tier I and tier II 

amounts reduced if the annuity begins before full retirement age. The eligibility age for 

unreduced annuities is 

gradually rising from 

age 65 to age 67. The 

maximum age reductions 

range from 17.1 percent 

to 20.36 percent, 

depending on the 

widow(er)’s date of birth. 

Excluding some 200 

annuities temporarily 

paid at spouse or 

divorced spouse rates, 

aged widow(er)s’ 

annuities being paid at 

the end of the 2016 fiscal 

year included 46,200 

which were reduced for 

age. Aged widow(er)s’

tier I amounts being 

paid averaged $1,300 per 

month. In nearly 6,700 

cases, the tier I amount 

was wholly offset by 

reductions for other benefits. Social security benefits were paid to 29,200 aged widow(er)

s, and averaged $1,036. Tier II amounts averaged $416. About 200 vested dual benefits, 

averaging $71, were being paid to aged widow(er)s.

The tier I and tier II amounts of disabled widow(er)s’ annuities, which begin at ages 

50-59, are reduced 28.5 percent for age. At the end of fiscal year 2016, tier I amounts being 

paid to disabled widow(er)s on the rolls averaged $1,072. (In about 100 cases, the tier I 

amount was wholly offset by reductions.) Social security benefits being paid to some 1,400 

disabled widow(er)s averaged $931. Tier II amounts averaged $278, while the less than 50 

vested dual benefits being paid averaged $103.

Tier I amounts paid to widowed mothers and fathers (widows and widowers caring for 

children) generally equal 75 percent of the full amount payable to an aged widow(er) before 

any reductions, similar to a social security mother’s or father’s benefit. Eligible children 

and grandchildren are paid this same tier I amount. However, if the sum of the tier I 

amounts of all members of a survivor family exceeds the social security family maximum, 

then tier I amounts are proportionately reduced so that the total equals the maximum. 

Reductions for the family maximum usually occur when the family includes three or more 

beneficiaries. Tier I amounts being paid as of the end of fiscal year 2016 averaged $1,362 

for widowed mothers and fathers and $984 for children. Fewer than 50 mothers/fathers 

 In current-payment 

 Awarded in status on

 fiscal year 2016 September 30, 2016

 Monthly survivor Average Average

 benefits Number amount Number amount

 Aged widow(er)s 5,300 $2,096 90,900 $1,618

 Disabled widow(er)s1 100 1,677 3,700 1,307

 Widowed mothers

 (fathers) 100 2,034 700 1,883

 Remarried widow(er)s 100 1,166 3,200 1,050

 Divorced widow(er)s 700 1,174 9,700 1,055

 Children:

 Under age 18 300 1,418 1,700 1,375

 Student * 1,526 100 1,492

 Disabled 100 1,208 6,900 987

 Parents * 1,217 * 927

 Total 6,700 ... 116,800 ...

 1Number and average in current-payment status include annuities to disabled widow(er)s 

age 60 and over now payable as aged widow(er)s’ annuities.

 *Fewer than 50.

 Note.--Detail may not add to total due to rounding.
24 2017 Annual Report, U.S. Railroad Retirement Board

and some 2,100 children received social security benefits averaging $1,071 and $629, 

respectively. Tier II amounts paid mothers/fathers and children averaged, respectively, 

$562 and $111. 

Lump-sum survivor benefits

A lump-sum death benefit can be payable at the time of an employee’s death only 

if there are no survivors immediately eligible for monthly benefits. For survivors of 

employees who had at least 10 years of railroad service before 1975, the lump-sum death 

benefit is based on the employee’s earnings through 1974, with a maximum amount of 

approximately $1,200. If the employee completed the 10th year of service after 1974, the 

lump-sum death benefit is limited to $255, the maximum benefit payable under social 

security law, and only the widow or widower living in the same household is eligible for the 

benefit. Lump-sum benefits may also be payable to survivors of employees with less than 

10 years of service, but at least 5 years after 1995, if the employee met the social security 

insured status requirements. Nearly 2,800 lump-sum death benefits averaging $921 were 

awarded during fiscal year 2016. Approximately 300 benefits were to widow(er)s, while 

almost 2,500 were to other individuals who paid the funeral expenses.

Another lump-sum survivor benefit, the residual payment, can be made if no other 

benefits based at least in part on an employee’s railroad service will be payable in the 

future, and the total of prior benefit payments is less than what the employee paid in pre1975 railroad retirement taxes. Fewer than 10 residual payments were awarded in the 

2016 fiscal year; they averaged $5,516. 

Partition Payments

The Pension Protection Act of 2006, as amended, continues the court-ordered 

partitioned portion of the tier II, vested dual and supplemental benefit payments to 

former spouses after the death of the employee. It also allows for payment of court-ordered 

partitioned payments where the employee is not entitled to an annuity if (1) the employee 

has 120 months of railroad service or 60 months of service after 1995, and (2) both the 

employee and spouse or divorced spouse are 62 for a full month, or, if the employee is 

deceased, the employee would be 62 for a full month.

At the end of fiscal year 2016, there were some 1,500 spouses and divorced spouses 

receiving payments averaging $307 where the employee was deceased or not otherwise 

entitled to an annuity. While all but seven received a partitioned tier II benefit, only 

5 percent received a partitioned vested dual benefit and 36 percent received a 

partitioned supplemental benefit.

Medicare Enrollments

The Medicare program provides health insurance to persons ages 65 and older, as 

well as persons under age 65 who have been entitled to monthly benefits based on total 

disability for at least 24 months. In the case of some disability diagnoses, the waiting 

period is waived. 
 A Review of Operations 25

Medicare has several parts to its program. Basic hospital insurance, or Medicare 

Part A, is financed through payroll taxes. There is also an elective supplementary medical 

insurance, or Medicare Part B, plan for which monthly premiums are charged. Medicare 

also offers Medicare Part C (Medicare Advantage) plans that include both Parts A and B 

coverage and additional benefits, sometimes at an additional cost. Finally, Medicare 

Part D provides optional prescription drug coverage for an additional premium. Both 

Medicare Parts C and D are offered through private insurance companies approved by 

Medicare.

Eligible railroad retirement annuitants and social security beneficiaries whose benefits 

are payable by the RRB are automatically enrolled under Part A and Part B; however, 

Part B may be declined by the annuitant or beneficiary. Eligible nonretired persons must 

apply in order to obtain Medicare coverage. The RRB automatically enrolled more than 

27,100 beneficiaries for Medicare during fiscal year 2016. As of the end of the fiscal year, 

about 465,300 persons were enrolled in the Part A plan, and approximately 445,900 

(96 percent) of them were also enrolled in Part B.

Except for benefits for services in Canada, which are paid from the Railroad Retirement 

Account, Part A benefits for railroad enrollees are paid from the Federal Hospital 

Insurance Trust Fund, the same as for persons covered under the social security system. 

Part B benefits are paid from the Federal Supplementary Medical Insurance (SMI) Trust 

Funds. The carrier for Part B claims of railroad Medicare enrollees made payments totaling 

$847 million in the 2016 fiscal year.

The regular monthly premium for Part B during fiscal year 2016 was $104.90 for 

coverage through December 2015 and $121.80 thereafter. Beneficiaries with modified 

adjusted gross incomes above certain thresholds pay higher Part B and Part D premiums 

under the Income Related Monthly Adjustment Amount (IRMAA) provisions of law. At the 

end of fiscal year 2016, approximately 13,600 Part B premiums and about 10,600 Part D 

premiums were increased by an IRMAA amount.

The RRB generally withholds Part B premiums from the annuitant’s benefit payments, 

and at the end of fiscal year 2016 nearly 425,600 annuitants were having their premiums 

withheld. Of the remaining Part B enrollees, over 3,300 were paying premiums to the RRB, 

either directly or through an intermediary, and 17,000 had their premiums paid by state 

agencies. The RRB periodically transfers premiums to the SMI Trust Funds.

Recently, the RRB began offering to collect Part C and Part D premiums from monthly 

benefits through an exchange process. While this option has grown in popularity, many 

annuitants pay their Part C and Part D premiums directly to their plan. At the end of fiscal 

year 2016, about 11,000 Part C premiums and approximately 43,000 Part D premiums 

were deducted from benefits paid by the RRB.
26 2017 Annual Report, U.S. Railroad Retirement Board

RAILROAD UNEMPLOYMENT AND SICKNESS 

INSURANCE PROGRAM

FINANCIAL OPERATIONS

Costs for the railroad unemployment and sickness insurance program during fiscal year 

2016 exceeded financing sources by $29.2 million and the net position decreased by 

$29.3 million from $243.8 million at the end of fiscal year 2015 to $214.6 million at the end 

of fiscal year 2016. For fiscal year 2016 as compared to fiscal year 2015, total financing 

sources for the railroad unemployment and sickness insurance program increased by 

$38.9 million (60.6 percent) to $103.1 million.

(text continued on page 28)

Unemployment and Sickness Insurance Program

Consolidated Financing Sources, 

Costs and Net Position (Millions)1

For the Fiscal Year Ended September 30 2016 2015

Financing Sources:

Employer Payroll Taxes $117.2 $74.7

Interest Income 2.3 2.7

General Appropriations 0.0 0.0

Other (16.4) (13.2) 

 Total Financing Sources 103.1 64.2

Costs:

Benefit Payments:

 Unemployment 74.9 35.7

 Sickness 51.8 50.6

Other2 5.6 (0.3)

 Total Costs 132.3 86.0

Financing Sources over Costs (29.2) (21.8)

Net Position - Beginning of Period 243.8 265.6

Net Position - End of Period2 $214.6 $243.8

1

Prepared on an accrual basis of accounting. 

2

Includes funds from the American Recovery and Reinvestment Act of 2009, and the Worker, 

Homeownership, and Business Assistance Act of 2009, as amended.
 A Review of Operations 27

Benefit Payments 100%

$126.7

Financing Sources - Fiscal Year 2016 (In Millions)

GROSS TOTAL $119.5

UNEMPLOYMENT AND SICKNESS 

INSURANCE PROGRAM

1

Less Transfers-Out and carriers’ refunds of $16.4 million.

Costs - Fiscal Year 2016 (In Millions)

TOTAL $126.7

Employer 

Payroll Taxes1 98.1%

$117.2

Interest Income 1.9%

$2.3
28 2017 Annual Report, U.S. Railroad Retirement Board

Financing Sources

The primary ongoing financing source of the railroad unemployment and sickness 

insurance program is a payroll tax on railroad employers, based on the taxable earnings of 

their employees. The employees themselves are not taxed.

Each employer pays taxes at a rate which takes into consideration its employees’ actual 

incidence of benefit usage. Under experience rating, employers whose employees have low 

incidences of unemployment and sickness pay taxes at a lower rate than those with higher 

levels of benefit usage. Each employer’s rate also has a component for administrative 

expenses and a component to cover costs shared by all employers. The rate applies to 

monthly earnings up to an indexed maximum. In calendar year 2016, the taxable earnings 

base was the first $1,455 of each employee’s monthly earnings. The earnings base is 

indexed each year by a rate which is equal to approximately two-thirds of the annual rate 

of increase in the maximum base for railroad retirement tier I taxes.

In 2016, the basic tax rates on railroad employers, including covered commuter 

railroads, ranged from a minimum of 2.15 percent to a maximum of 12.0 percent. There 

was also a surcharge of 1.5 percent in 2016. Most employers were assessed the minimum 

rate in 2016. New employers in 2016 paid an initial rate of 2.52 percent.

Employer Payroll Taxes

Payroll taxes by employers totaled $117.2 million during fiscal year 2016. This was an 

increase of 56.9 percent or $42.5 million more than the previous year.

Interest

Cash not needed immediately for unemployment and sickness insurance benefits 

or operating expenses is held in the Federal Unemployment Insurance Trust Fund and 

invested by the Secretary of the Treasury. The fund earned an average rate of return of 

2.2 percent in fiscal year 2016, of which the RRB earned $2.3 million as its pro rata share.

Costs

Total costs for the railroad unemployment and sickness insurance program increased by 

$46.3 million (53.8 percent) to $132.3 million. 

Benefit Payments

During fiscal year 2016, unemployment insurance benefit payments increased by 

$39.2 million (109.8 percent) to $74.9 million. Sickness insurance benefit payments 

increased by $1.2 million (2.4 percent) to $51.8 million.
 A Review of Operations 29

BENEFIT OPERATIONS

Net unemployment and sickness benefits totaling nearly $126.2 million were paid 

in the 2015-2016 benefit year, $47.0 million more than in the prior year. In accordance 

with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended 

by the Budget Control Act of 2011, amounts reflect a reduction of 7.2 percent for days 

of unemployment and sickness after September 30, 2013, 7.3 percent for days after 

September 30, 2014, and 6.8 percent for days after September 30, 2015. Beneficiaries 

numbered 31,500, in comparison to the previous year’s total of 22,500. Some 900 employees 

received both unemployment and sickness benefits during the 2015-2016 benefit year. 

The number of unemployment benefit claimants increased by 117 percent, while sickness 

benefit claimants increased by 3 percent. Total net unemployment benefit payments 

increased by 132 percent, while net sickness benefits increased by 13 percent. The number 

of employees qualified for benefits under the Railroad Unemployment Insurance Act 

increased 2 percent to 254,200.

Benefits are payable for each day of unemployment or sickness in excess of 7 during the 

first 14-day registration period in a benefit year. During benefit year 2015-2016, there were 

15,000 and 13,800 unemployment and sickness benefit waiting period claims, respectively.

Unemployment

Over 16,400 railroad workers were paid $71.7 million in net unemployment benefits 

during the 2015-2016 benefit year, including $0.2 million in recovered temporary extended 

benefits under the American Recovery and Reinvestment Act of 2009 and the Worker, 

Homeownership, and Business Assistance Act of 2009, as amended by the Tax Relief, 

Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the Temporary 

Payroll Tax Cut Continuation Act of 2011, the Middle Class Tax Relief and Job Creation 

Act of 2012, and the American Taxpayer Relief Act of 2012. The number of benefit 

claimants increased by approximately 8,900 from the prior year total of 7,600, and the 

benefit amount rose $40.7 million from the prior year’s total of $30.8 million. The average 

number of compensable days per unemployment benefit claimant was 68 in benefit year 

2015-2016, down slightly from 69 days the previous benefit year. 

The mid-month unemployment count in the 2015-2016 benefit year began with a 

July count of 2,500 claimants. The count rose steadily during the following months until 

December 2015, when it began to rise quickly; it peaked at 7,800 in February 2016. From 

that point, the count showed a steady decline to 4,000 claimants in June 2016. For the 

2015-2016 benefit year as a whole, the weekly number of claimants averaged 4,800 in 

comparison to an average of 2,200 in the previous benefit year. The overall unemployment 

benefit claimant rate, measured in relation to numbers of employees qualified to receive 

benefits under the Railroad Unemployment Insurance Act during a particular time period, 

NOTE.--Railroad unemployment and sickness benefits are paid on the basis of benefit years beginning July 1 and ending 

June 30 of the following year. Consequently, operational data in this “Benefit Operations” section are generally presented for 

this time span, rather than fiscal years beginning October 1 and ending September 30.
30 2017 Annual Report, U.S. Railroad Retirement Board

Item

 Benefit year 2015-2016 Benefit year 2014-2015

 

 Total

 Unemploy-

 ment1

 

 Sickness

 

 Total

 Unemploy-

 ment1

 

 Sickness

 Applications 43,900 24,100 19,800 30,900 11,500 19,400

 Claims 266,200 137,000 129,200 183,700 62,500 121,300

 Claimants 2 31,500 16,400 16,000 2 22,500 7,600 15,500

 Net amount of benefits3

$126,165,700 $71,655,100 $54,510,600 $79,179,700 $30,751,900 $48,427,800

 Number of payments

 Normal 204,600 106,400 98,100 140,100 47,000 93,200

 Extended 17,500 5,900 11,600 14,600 5,100 9,500

 Total 222,100 112,300 109,700 154,800 52,100 102,700

 Average amount per 

 2-week registration period3

 Normal $594 $593 $596 $577 $581 $575

 Extended 561 564 560 541 544 539

 Total 592 591 592 574 578 572

1 Starting in June 2009, includes temporary extended unemployment benefits authorized by the American Recovery and 

Reinvestment Act of 2009. Benefits had to begin by December 31, 2009. Beginning in November 2009, temporary extended 

unemployment benefits are also being paid under the Worker, Homeownership, and Business Assistance Act of 2009, as 

amended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the Temporary Payroll 

Tax Cut Continuation Act of 2011, the Middle Class Tax Relief and Job Creation Act of 2012, and the American Taxpayer 

Relief Act of 2012. Benefits had to begin by December 31, 2013. The benefit year 2014-2015 amount totaled –$0.3 million 

and the benefit year 2015-2016 amount totaled −$0.2 million. 

2 Benefits for both unemployment and sickness were paid to approximately 600 employees in benefit year 2014-2015 and

900 employees in benefit year 2015-2016. Those claimants who had only a non-compensable waiting period are not included 

in the beneficiary counts since no benefits were paid.

 3 Under the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011, 

amounts reflect a reduction of 7.2% under sequestration for days of unemployment and sickness after September 30, 2013, 

7.3% for days after September 30, 2014, and 6.8% for days after September 30, 2015.

Major unemployment and sickness benefit operations,

benefit years 2015-2016 and 2014-2015

(text continued on page 32)

more than doubled to 6.5 per 100 qualified, from the previous year’s 3.0 per 100 qualified, 

reflecting the decline in unemployment levels. The median age for all unemployment 

benefit claimants was 38 years, as compared to 43 in the previous benefit year.
A Review of Operations 31

Unemployment and Sickness Benefit Claimants by Age,

Benefit Year 2015-2016

Claimants under the Railroad Unemployment Insurance Act, 

Benefit Years 2011-2012 through 2015-2016

9,163

10,714

9,970

7,568

16,420 16,748

15,841 15,611 15,516 15,963

2011-2012 2012-2013 2013-2014 2014-2015 2015-2016

Unemployment

Sickness

748

5,650

4,986

3,275

1,644

89 117

1,982

3,779

4,284

5,360

469

Under 25 25-34 35-44 45-54 55-64 65 & Over

Unemployment

Sickness
32 2017 Annual Report, U.S. Railroad Retirement Board

Sickness

The number of sickness benefit claimants during the 2015-2016 benefit year was 

16,000, some 400 more than the previous year, which had represented the lowest level 

since sickness benefits began in benefit year 1947-1948. Gross sickness benefits of 

$73.9 million were paid, $6.9 million more than in the prior benefit year. Net sickness 

benefits totaled $54.5 million, reflecting repayment of a large amount of benefits following 

settlements of suits for injuries. Benefits payable for an injury are recoverable if the 

claimant is awarded damages or receives a settlement for the injury. Net benefits increased 

by $6.1 million in comparison with the previous year.

The utilization rate for sickness benefits was 6.3 percent of qualified employees, the 

same as the previous benefit year and remaining near the lowest figure since the program’s 

inception. The average duration of sickness was 69 days in benefit year 2015-2016, up from 

66 in the previous benefit year.

Among the most common causes of sickness were injuries that included fractures or 

wounds (affecting 27 percent of beneficiaries), arthritis and disk disorders (21 percent), 

mental disorders, including drug and alcohol addictions (12 percent), and symptoms, signs 

and all ill-defined conditions (9 percent). The median age of all sickness benefit claimants 

was 49 years, compared to 50 in the previous benefit year.
A Review of Operations 33

RAILROAD EMPLOYMENT

Average monthly railroad employment in fiscal year 2016 fell 8 percent to 229,000 from 

the 249,000 average of the previous year. After experiencing an all-time low of 215,000 in 

January 2010, railroad employment began to rebound and continued that recovery through 

the first half of fiscal year 2015, when it peaked in April 2015 at 253,000, the highest 

level since November 1999. Employment then declined through fiscal year 2016, falling to 

224,000.

Note.--Numbers for 2016 are preliminary.

Average Railroad Employment

Fiscal Years 2012 through 2016

215,000

220,000

225,000

230,000

235,000

240,000

245,000

250,000

255,000
34

Performance Management

Customer Service Plan

The RRB’s Customer Service Plan promotes the principles and objectives of 

customer-driven quality service agency-wide. An important part of the plan is to 

keep customers informed of how well the RRB is meeting timeliness standards. The RRB 

publicizes the Customer Service Plan and performance results and posts them in all of its 

field offices. The plan is reviewed and updated periodically based on agency experience, 

customer feedback and comparison with similar best-in-business models.

The agency uses an index to measure the overall timeliness of customer service in four 

benefit areas: retirement applications; survivor applications; disability applications and 

payments; and railroad unemployment and sickness benefit applications and claims. In 

addition, this composite indicator, based on a weighted average, allows for a more concise 

and meaningful presentation of its customer service efforts in these four areas. During 

fiscal year 2016, the overall benefit timeliness index was 98.9 percent. This means that the 

RRB provided benefit services within the timeframes promised in the Customer Service 

Plan 98.9 percent of the time. Performance and processing times during fiscal year 2016 

were very similar to the levels in fiscal year 2015. (The composite for 2015 was 98.8.) The 

RRB also met or exceeded six out of ten of its customer service performance goals for the 

year in its Annual Performance Plan.

“Slippage” Cases

In January 2016, the RRB identified 6,196 railroad retirement beneficiaries that had 

been disadvantaged by not being eligible for protection under a “hold harmless” provision 

in the law. Under that provision, Medicare Part B premiums cannot increase for current 

Medicare enrollees if there is no cost-of-living increase in social security benefits (as was 

the case in December 2015), and their Part B premiums are being withheld by the RRB 

from their social security benefit or tier I portion of their railroad retirement annuity. 

The beneficiaries identified were receiving social security benefits directly from the Social 

Security Administration (SSA), instead of the RRB as provided by law. (These cases 

Administrative Developments

The following describes some major activities and issues addressed in 2016 and 2017

as part of the RRB’s efforts to improve operations and customer service.
 Administrative Developments 35

are commonly referred to as “slippage” cases.) Since SSA was paying benefits directly 

to these individuals, the RRB was unable to deduct the Part B premium from their 

social security benefit in those cases where the tier I portion of their railroad retirement 

annuity was too small to sustain the premium deduction. Since the deduction was coming 

from neither the social security benefit nor tier I, but instead from another portion of 

the railroad retirement annuity (or the premium was being paid through direct billing), 

the beneficiaries were not eligible for protection under the “hold harmless” provision and 

were charged higher premium amounts.

In order for these individuals to take advantage of the “hold harmless” provision, the 

RRB first determined whether they desired certification of their benefits to the RRB. 

If so, the agency could then send a request to SSA to have the social security benefits 

certified for payment to the RRB, as provided by the 1974 amendments to the Railroad 

Retirement Act (RRA).

The agency’s Office of Programs subsequently worked with SSA to develop a new 

program to automate and better coordinate the transfer process between the RRB and 

SSA’s Great Lakes Program Service Center. Using this program, the Office of Programs 

started sending the identified cases to SSA for transfer in August 2016, with the bulk of 

the cases sent in October 2016. The “slippage” project was concluded in January 2017, 

with 5,932 cases certified and transferred to the RRB. The agency was able to process 

and pay 85 percent of the transferred cases mechanically, while the remaining 15 percent 

required some manual handling in the adjudication units. At the end of the project, the 

RRB paid 5,742 refunds of medical insurance premiums totaling just over $1 million. The 

coordinated effort between SSA and RRB saved both agencies a significant amount of 

time and staffing resources, and also provided excellent customer service to beneficiaries 

by allowing them to take advantage of the “hold harmless” provision, both now and in the 

future.

Reducing Improper Payments

The RRB developed an agency risk assessment plan in response to provisions of the 

Improper Payments Elimination and Recovery Act and Office of Management and Budget 

(OMB) guidance. The objective was to evaluate payment outlays susceptible to improper 

payments by assessing risk for all of the benefit and non-benefit programs that the agency 

administers.

In fiscal year 2016, the agency updated its risk assessments for the RRA, the Railroad 

Unemployment Insurance Act (RUIA), and Medicare programs. Each benefit program’s 

updated assessment addressed the OMB-developed risk factors that are likely to contribute 

to improper payments. In addition, the agency reviewed its RRA and RUIA benefit 

payment programs for fiscal year 2015 as required by OMB Circular A-123, and the 

updated OMB Circular A-136. The RRB’s Performance and Accountability Report for Fiscal 

Year 2016 (based on fiscal year 2015 data) includes the results of that analysis, along 

with a summary of the root causes of errors and projections of future improper payment 
36 2017 Annual Report, U.S. Railroad Retirement Board

levels. At OMB’s request, the agency submitted an improper payment reduction outlook, 

breakdown of the root causes, amounts, and percentages of fiscal year 2015 RRA and 

RUIA improper payments, as well as overpayments recaptured outside payment-recapture 

audits and results of the “Do Not Pay” initiative. The analysis shows that the RRB does not 

have significant improper payments, as defined by OMB guidelines for implementing the 

Improper Payments Information Act of 2002.

The RRB will continue to review its benefit payment programs to determine if the level 

of improper payments is significant. Ongoing activities aimed at improving the accuracy 

of payments and reducing erroneous payments include automation enhancements, 

quality assurance reviews, and monitoring programs. This includes looking for additional 

operational improvements that will minimize improper payments and enhance recovery 

efforts.

Service Enhancements

Employer Reporting System

The Employer Reporting System (ERS) is a web-based platform that enables railroad 

employers to submit information to the RRB in an electronic format instead of mailing 

paper forms. In addition to providing a faster means of communication, the ERS increases 

efficiency by reducing manual handling, while enhancing security and protection of 

personally identifiable information (e.g., addresses and social security numbers). In fiscal 

year 2016, the RRB completed upgrades to the ERS servers and delivery platform. The 

upgrades will allow the agency to serve its end users faster and with greater efficiency, 

while enabling additional enhancements in 2017. The RRB also worked with contractors 

to develop requirements and screen designs for adding two forms to the ERS in fiscal year 

2017. Form RL-5a notifies railroads on a monthly basis of employees who have become 

entitled to initial annuity benefits, and Form G-73a informs them of a reported death for a 

former employee. By making these notices available online, employers will have secure and 

timely access to information needed to maintain their own benefit payments.

Cost-of-Living Adjustment

Unlike the previous year, when there was no cost-of-living adjustment (COLA), there 

was a slight COLA in railroad retirement benefits in December 2016. Effective with 

January 2017 payments, the increase for tier I benefits was 0.3 percent, and 0.1 percent 

for tier II. The increase was paid to 531,999 annuitants, and was also included in RRBpaid social security benefits to 116,970 beneficiaries. The total amount of the COLA was 

just over $2 million in railroad retirement annuities and about $566,700 in social security 

benefits. At the same time, the standard Medicare Part B premium increased from $121.80 

to $134.00, but most beneficiaries did not pay this amount due to a “hold harmless” 

provision in the law that provides Part B premiums for current enrollees cannot increase 

by more than the amount of the COLA. Taking into account the previous year, when there 

was no COLA, about 70 percent of Medicare beneficiaries are paying an average Part B 
Administrative Developments 37

premium of $109 a month. However, new enrollees and certain high-income beneficiaries 

are subject to higher premiums.

Benefit Processing Improvements

The RRB implemented enhancements to several processes and systems that will 

improve the processing of a variety of benefits paid by the agency, including the following.

• Completed modernization of the SURPASS system to improve accuracy and ensure 

consistency in the processing and payment of survivor benefits.

• Migrated an updated version of SPEED, the system which processes excess 

earning data. With completion of the new version, reports of estimated earnings 

are processed more quickly and comprehensively, with an associated reduction in 

improper payments.

• Implemented a new interface between ORCS, the overpayment recovery 

correspondence system, and the unemployment-sickness insurance program. The 

new interface generates referrals to agency examiners for review in a timelier 

manner, allowing them to issue letters and billing documents more quickly, and 

automatically loads supporting data for fraud referrals.

• Converted paper records to electronic images for initial employee disability cases 

and terminal employee disability cases, enabling paperless processing. This also 

required changes to a number of related systems and field office processes. In 2017, 

the agency will continue reengineering disability benefits to further shift to an 

electronic environment from a paper-based one.

Officials

Walter A. Barrows continues to serve as the Labor Member, as does Steven J. Anthony 

as the Management Member. Mr. Barrows was appointed to the Board in 2011 and Mr. 

Anthony in 2014. The office of Chairman of the Board has been vacant since August 2015. 

Martin J. Dickman has been the Inspector General for the RRB since 1994.

Effective August 1, 2016, the Board named Daniel J. Fadden as its Senior Executive 

Officer. At the time of his appointment, he was the agency’s Director of Field Service, 

a position in which he continues to serve. An RRB employee since 1983, Mr. Fadden 

became Director of Field Service in February 2013, after having previously served as the 

Deputy Director. As Senior Executive Officer, he chairs the RRB’s Executive Committee, 

coordinating development and implementation of agency policy. Mr. Fadden earned a 

bachelor’s degree from Loyola University Chicago. He replaced George V. Govan, who 

transferred to another federal agency.
38 2017 Annual Report, U.S. Railroad Retirement Board

Human Capital Management

Staffing

Like other organizations in the Federal community, the RRB has an aging workforce, 

with about 50 percent of its employees having 20 or more years of service. Additionally, 

almost 30 percent of the agency’s current workforce will be eligible for retirement by fiscal 

year 2018. To help cope with the loss of experience and bridge the knowledge gap, the RRB 

is placing increased emphasis on strategic management of human capital, particularly in 

the areas of training, development and succession planning. A new methodology is being 

developed to identify potential areas of skill and knowledge gaps, with plans to implement 

it as part of the agency’s learning management system (LMS). This methodology will 

incorporate job analysis of agency positions to identify critical competencies and skill 

gaps within the agency’s workforce. While attrition remains an ongoing concern, it has 

also presented an opportunity for the RRB to increase hiring of entry-level positions, 

particularly those engaged in direct customer service. In 2016, the agency initiated several 

training classes for new claims examiners involved in adjudicating cases in the areas of 

disability, retirement, survivor, Medicare, and sickness/unemployment benefits. The RRB 

anticipates filling additional initial and post-adjudication claims examiner positions in all 

program areas during fiscal years 2017 and 2018.

Training

The training section in the RRB’s Bureau of Human Resources continues to create, 

implement and modify an overall training program with the goal of creating opportunities 

to assist employees in building the competencies needed to achieve the agency’s mission, 

values and strategic goals. In 2016, they created and launched a program for crafting 

individual development plans that can be used by all agency employees, instituted a 

training program for new supervisors, designed an executive candidate development 

program, developed online courseware to satisfy mandatory training requirements, and 

conducted more than 50 in-person, instructor-led training sessions covering 20 soft-skill 

topics.

The agency continues to use its LMS, also known as RRB University, as the cornerstone 

of its training and development activities. This platform allows the agency to accurately 

track, document and deliver training opportunities to employees throughout the RRB, and 

has been incorporated into mandatory technical training for new employees in the Bureau 

of Field Service and the Office of Programs. In 2016, more than 1,000 employees and 

contractors completed 827 different online and instructor-led training courses, for a total of 

17,422 course completions.

The Office of Programs also started a 9-month training program for user analysts in its 

Policy and Systems division in June 2016. These employees develop procedures and testing, 

and update systems for examiner use in handling applications and claims for benefits. 
Administrative Developments 39

Enhancing analyst skills in these areas should allow the agency to improve the accuracy 

and efficiency of claims examiners in adjudicating, processing and paying benefits.

Employee Recognition

The RRB recognizes its employees for their contributions to the agency, and service 

to the railroad public, as part of its annual “Award for Excellence” program. All agency 

employees, supervisors and work teams have the opportunity to be recognized for their 

accomplishments, with the nominees, finalists and winners honored at an annual awards 

ceremony. The 29th annual awards ceremony was held in July 2016 in Kasbeer Hall 

at Loyola University Chicago’s nearby Water Tower campus. The program honored 21 

individual nominations and eight team nominations. The RRB also participates in the 

Chicago Federal Executive Board’s “Federal Employee of the Year” awards program that 

recognizes outstanding Federal employees throughout the metropolitan area. In 2016, 

the RRB had three individual nominations and one team nomination.

Employee Survey

The Federal Employee Viewpoint Survey, conducted by the Office of Personnel 

Management (OPM), is a tool that measures employees’ perceptions of whether, and 

to what extent, conditions characterizing successful organizations are present in their 

agencies. Once again, the responses by RRB employees were positive. Thirty-six survey 

items were identified as strengths (greater than or equal to 65 percent positive) while 

only two survey items were identified as challenges (greater than or equal to 35 percent 

negative). In addition, the agency’s “engagement index” score met OPM’s goal for 2016 of 

67 percent, and met or exceeded the governmentwide score in all areas (overall, leaders 

lead, supervisors, and intrinsic work experience). The RRB’s “global satisfaction index” 

of 67 percent also exceeded the governmentwide average in all areas (job satisfaction, 

organization satisfaction, pay satisfaction, and recommend agency).

Based on OPM guidelines for determining notable results, the RRB scored especially 

high (greater than 65 percent favorable) on the majority of items measuring personal work 

experiences. Over 91 percent of the RRB respondents think the work they do is important, 

88 percent know how their work relates to the agency’s goals and priorities, and 72 percent 

feel their work gives them a feeling of personal accomplishment. About 80 percent like the 

kind of work they do and feel they are held accountable for achieving results. Additionally, 

81 percent of agency employees feel supported by their supervisors in balancing work and 

other life issues.

The lowest scores were on items gauging performance culture and talent management, 

although these scores still represent a minority of the employees that responded. For 

example, only 32 percent felt that pay raises depend on how well employees perform their 

jobs and only 34 percent agreed that steps are taken to deal with poor performers. In 

addition, only 38 percent thought that creativity and innovation are rewarded, which is an 

area the agency intends to focus on improving in the coming years.
40 2017 Annual Report, U.S. Railroad Retirement Board

Information Technology

Information Security

The RRB is committed to protecting its annuitants’ information from unauthorized use 

or disclosure, and continues to work on improving its security capabilities. In 2016, the 

RRB’s information security team administered statutorily required security-awareness 

training for all agency employees and contractors. Staff members identified as having 

more significant information security responsibilities participated in enhanced rolebased security training. In addition, the RRB’s privacy team prepared and coordinated 

training for all employees on safeguarding controlled unclassified information, federal tax 

information and Privacy Act information.

Mainframe Applications Reengineering

The RRB continues to make progress in a multiyear effort to convert the agency’s 

current mainframe computing environment to a Microsoft Windows-based system. 

Reengineering critical legacy mainframe applications supports agency operations by 

enabling a future-ready workforce with modern tools and technologies. This will allow 

them to do their jobs in the most efficient and effective manner, contributing to sustained 

customer satisfaction in the railroad community. The RRB began the conversion effort in 

fiscal year 2016 by purchasing additional hardware to house the new infrastructure and 

converting applications related to the taxation of retirement benefits. The project team 

completed the first iteration of the automated code conversion which includes all legacy 

code for the taxation system. The RRB plans to use the converted system to deliver the 

2017 annual tax statements (RRB-1099) in January 2018.

The RRB also modernized the Payment Rate and Entitlement History database to 

follow the new “master data” model, which enforces data standards on the agency’s most 

critical data, thereby consolidating data from many “silos” into a uniform format in a single 

place. This reduces data redundancy, improves data quality, standardizes code structures, 

and eases data access. The enhancements to this comprehensive database will help position 

the RRB to further integrate applications and systems.

Information Resources Management

In fiscal year 2016, the RRB coordinated and secured computer matching agreements 

with 22 states and two agreements with the SSA. The agency also secured OMB approval 

of 18 information collections. A central goal of the OMB review process is to help agencies 

strike a balance between collecting information needed to fulfill their statutory missions 

and guarding against unnecessary or duplicative requests that impose unjustified costs on 

the public.
41 2013 Annual Report, U.S. Railroad Retirement Board Administrative Developments 41

Office of Equal Opportunity

Equal Opportunity Policies and Procedures

The agency’s Equal Employment Opportunity complaint program has policies 

and procedures in place to address all forms of discrimination, including harassment; 

training is conducted to ensure employees know their rights and responsibilities; and 

the discrimination complaint process has the elements of impartiality, timeliness and 

credibility. Both the agency’s website and its intranet include information to ensure the 

public and agency employees have access to information regarding the discrimination 

complaint program.

Diversity Program

Throughout the year, the agency’s Office of Equal Opportunity (OEO) sponsored 

many events and activities to foster an inclusive work environment and enhance the 

understanding of disability issues. These included a variety of cultural enrichment events 

to commemorate African American History Month, Women’s History Month, Asian 

Pacific Heritage Month and Hispanic Heritage Month, as well as an event that was part 

of an ongoing program theme of “What if I become disabled tomorrow?” Also, the Federal 

Women’s Program Committee was reinstated, and this group will focus on helping women 

overcome employment hurdles and enjoy opportunities to successfully advance in their 

careers within the federal government.

Recruitment

The RRB is committed to maintaining a diverse workforce. The OEO worked 

cooperatively with the Bureau of Human Resources in 2016 to create a diverse pool of 

external job applicants by identifying sources for the recruitment of individuals with 

disabilities, various underrepresented groups, and disabled veterans.

Public Information Activities

The RRB maintains direct contact with railroad retirement beneficiaries through 

its field offices located across the country. Field personnel explain benefit rights and 

responsibilities on an individual basis, assist railroad employees in applying for benefits 

and answer any questions related to the benefit programs. The RRB also relies on railroad 

labor groups and employers for assistance in keeping railroad personnel informed about its 

benefit programs.

At informational conferences sponsored by the Labor Member of the Board for railroad 

labor union officials, RRB representatives describe and discuss the benefits available 

under the railroad retirement-survivor, unemployment-sickness and Medicare programs, 
42 2017 Annual Report, U.S. Railroad Retirement Board

and the attendees are provided with comprehensive informational materials. Now in its 

60th year, in 2016 a total of 1,249 railroad labor union officials attended 31 informational 

conferences held in cities throughout the United States. The Labor Member’s Office in 2014 

also launched a new program of pre-retirement seminars designed for railroad employees 

and their spouses nearing retirement. Thirteen seminars were held during 2016, with 

658 individuals in attendance. In addition, railroad labor unions frequently request that 

RRB representatives speak before their meetings, seminars and conventions. In 2016, the 

Labor Member’s Office was represented at 17 union gatherings attended by 2,328 railroad 

labor officials. Field personnel addressed 51 local union meetings with 1,921 members in 

attendance.

Hosted by the Office of the Labor Member, RRB executives and staff helped conduct 

the National Reporting Officers (NRO) meeting. This took place at agency headquarters 

in October 2016, and included guest speakers from the Internal Revenue Service and the 

SSA. An NRO is a rail union official responsible for reporting compensation and depositing 

railroad retirement and unemployment insurance taxes on behalf of his or her members, 

and the 2016 meeting included 11 first-time attendees among the 19 participants.

Topics covered at the NRO meeting included the RRB’s information technology 

goals, plans for improving the disability program, field service initiatives, multi-factor 

authentication efforts, debt recovery activities and online services for employers, as well as 

audits and basic reporting requirements. Labor Member Barrows also provided an update 

on the state of the agency, and William C. Walpert, a member of the Board of Trustees, 

gave a report on the status of the National Railroad Retirement Investment Trust.

At seminars for railroad executives and managers, agency representatives review 

programs, financing, and administration, with special emphasis on those areas which 

require cooperation between railroads and RRB offices. During 2016, the Management 

Member’s Office conducted three seminars for 180 railroad officials, as well as benefit 

update presentations and pre-retirement counseling seminars attended by railroad 

employees and their spouses. In August 2016, the Office of the Management Member 

hosted representatives of several Class I employers, which include the largest railroads, for 

an informational session at RRB headquarters. The meeting covered plans to improve the 

disability program, changes to online payment and reporting systems, and compensation 

issues, among others.

Office of Inspector General

The Office of Inspector General (OIG) for the RRB focuses its audit and investigative 

efforts on protecting the integrity of the agency’s trust funds by providing comprehensive 

program and operational oversight. Reports issued by the OIG, and other documents 

referenced in this section, can be found at www.rrb.gov/oig. 
43 2013 Annual Report, U.S. Railroad Retirement Board Administrative Developments 43

Office of Audit

During fiscal year 2016, the Office of Audit published 10 reports, completed its 

mandated CyberScope reporting and assessment of risk associated with purchase and 

travel cards, and issued findings and recommendations to agency management. Their 

reports focused on the following topics: failure of the RRB to calculate reimbursed Medicare 

costs in accordance with federal requirements; control weaknesses that diminish the value 

of medical opinions in the RRB’s disability determination process; audit of the RRB’s fiscal 

year 2015 financial statements; and recommended improvements to the RRB’s method 

for recording and reporting overpayments identified by death matches. In total, this work 

identified $635 million in questioned costs. In addition, the Office of Audit underwent a 

peer review and received a rating of “pass” during fiscal year 2016.

Pursuant to the Reports Consolidation Act of 2000 and the requirements of OMB 

Circular A-136, the OIG issued a document that identified the most serious management 

challenges facing the RRB and its progress in addressing them. The OIG identified the 

following challenges: program integrity to strengthen the RRB’s disability program; 

information technology security and modernization; oversight of railroad Medicare; 

preventing and detecting improper payments; agency succession planning; material 

weaknesses for financial statement reporting; and limited transparency at the National 

Railroad Retirement Investment Trust.

Office of Investigations

The Office of Investigations focuses on identifying, investigating, and presenting 

RRB fraud cases for prosecution or monetary recovery action. It also seeks to prevent 

and deter RRB program fraud by reporting systemic weaknesses in agency operations 

and processes identified through investigative work. In order to maximize the impact of 

its resources, the office pursues cooperative investigative activities in coordination with 

other inspectors general, such as the Office of Inspector General for the Department of 

Health and Human Services, and law enforcement agencies, such as the Federal Bureau 

of Investigation and the U.S. Secret Service. 

As of September 30, 2016, the Office of Investigations’ caseload totaled 233 matters, 

which represents approximately $595.0 million in potential fraud losses.1

 During 

fiscal year 2016, the office secured 13 arrests, 32 indictments and/or informations, 36 

convictions, 15 civil judgments, 45 referrals to the Department of Justice, and more than 

$25.7 million in financial accomplishments.2

1 This reflects potential fraud amounts related to programs administered exclusively by the RRB and potential 

fraud amounts from other Federal programs such as Medicare or social security which have been identified by 

Office of Investigations’ joint investigative work.

2 The total amount of financial accomplishments reflects fraud amounts related to programs administered 

exclusively by the RRB and fraud amounts from other federal programs such as Medicare or social 

security which were included in the disposition resulting from the investigation.
Legal Rulings

44

Court Cases

Six petitions for review were filed during the year, and six cases were ruled upon 

by Courts of Appeals. At the conclusion of fiscal year 2016, there were five cases 

pending decisions with the various Courts of Appeals. 

Legal Opinions

The RRB’s Office of General Counsel issued 63 formal legal opinions in fiscal year 2016. 

The following are of special interest.

Improper Payments Elimination and Recovery Act L-2016-23

Issued June 17, 2016. This opinion concerns the classification of underpayments under 

the Railroad Unemployment Insurance Act (RUIA). The agency’s Office of Programs 

currently has eight classifications of RUIA underpayments. The opinion found that each 

of the classes of RUIA underpayments have been correctly categorized in accordance 

with the Improper Payments Elimination and Recovery Act of 2010. Underpayments 

due to receiving new or corrected information post-award are not reportable as improper 

payments under the Act.

Common-Law Marriage – South Carolina L-2016-38

Issued August 25, 2016. This opinion involves a spouse applicant who claimed she was 

the common-law spouse of the annuitant. Both the employee and spouse applicant alleged 

that they believed their living together made them legally married. There are two lines 

of South Carolina common law marriage cases. The first provides that a common-law 

marriage may be proved by a preponderance of the evidence. The second line is based on a 

“strong presumption in favor of marriage by cohabitation, apparently matrimonial, coupled 

with social acceptance over a long period of time.” This opinion finds that the greater 

weight of the evidence suggests the parties considered each other to be a friend/significant 

other rather than a spouse.

RRB Medicare Premiums – Waivers of Recovery of Overpayments L-2016-39

Issued August 25, 2016. A group of railroad retirement beneficiaries was overpaid 

benefits because the correct amount of the Medicare Part B premium was not withheld 

Six rulings on cases involving the RRB were issued by Courts of Appeals 

during fiscal year 2016, and 63 legal opinions were issued

by the RRB’s Office of General Counsel.
Legal Rulings 45

for the period 1989 through 2013. The Board has authority under section 7(d)(1) of the 

Railroad Retirement Act (RRA) to issue a mass adjustment of Medicare premiums, such 

that premium amounts owed by annuitants is equal to the premium amounts withheld. 

This procedure does not require an individualized assessment of fault or using the 

procedures for waiver of recovery of overpayments contained in section 10 of the RRA. 

However, the Improper Payments Improvements Act now requires that the total amount 

of pre-adjustment overpayment be calculated and reported. The reasoning in L-1975-409 

regarding mass waiver of recovery of overpayments under section 10 of the RRA remains 

valid.

Appeals

Any claimant for benefits under the RRA or the RUIA may appeal a determination he 

or she feels is not justified. This appeal must be filed within certain time frames. Appeals 

are heard and decided by the RRB’s Bureau of Hearings and Appeals. An appellant who is 

dissatisfied with the decision on his or her appeal may further appeal the case to the threemember Board within a prescribed period of time.

RRA

 During fiscal year 2016, 223 appeals were filed with the Bureau of Hearings 

and Appeals under the RRA, and the Bureau rendered decisions in 245 appeals. The 

reconsideration decision was sustained in 118 cases. In 127 appeals the decision was 

favorable to the claimant in whole or in part.

Fifty-five appeals were filed with the three-member Board in fiscal year 2016 which, 

added to the 149 appeals carried over from the previous year, brought the total to be 

considered to 204. Of 61 decisions, three were remanded to the Bureau of Hearings and 

Appeals, three were dismissed, eight were granted, and eight were partially favorable. At 

the end of the year, 143 appeals were pending before the Board.

RUIA

During fiscal year 2016, 42 appeals were filed with the Bureau of Hearings and Appeals 

under the RUIA, and the Bureau rendered decisions in 36 appeals. The reconsideration 

decision was sustained in 24 cases. In 12 appeals the decision was favorable to the 

claimant in whole or in part.

 Two appeals were filed with the Board in fiscal year 2016, which were added to the 

six carried over from the previous year, bringing the total to be considered to eight. The 

Board rendered decisions in two affirming the decision of the hearings officer. At the end of 

the year, six appeals were pending before the Board.

STATISTICAL

TABLES
48 2017 Annual Report, U.S. Railroad Retirement Board Table 1.--Beneficiaries and benefits paid under the Railroad Retirement Act and the Railroad Unemployment Insurance Act, by fiscal year, 2007-2016, cash basis Total1 Retirement2 Survivor2 Unemployment3, 4 Sickness4 BENEFICIARIES (in thousands) 2007....................................................... 641 444 180 10 19 2008....................................................... 623 433 174 11 19 2009....................................................... 626 430 167 24 18 2010....................................................... 617 428 161 22 18 2011....................................................... 603 429 156 11 18 2012....................................................... 595 429 150 10 17 2013....................................................... 592 429 146 11 16 2014....................................................... 585 428 141 10 16 2015....................................................... 581 428 136 9 16 2016....................................................... 583 428 131 17 17 BENEFIT PAYMENTS (in millions) 2007....................................................... $9,871.5 $7,641.1 $2,156.4 $27.8 $46.2 2008....................................................... 10,115.4 7,877.0 2,158.1 35.1 44.9 2009....................................................... 10,663.8 8,311.0 2,192.0 111.7 48.1

2010....................................................... 10,939.8 8,588.6 2,187.1 109.6 50.02011....................................................... 11,047.2 8,778.5 2,165.3 48.3 52.32012....................................................... 11,418.8 9,155.4 2,171.7 41.1 47.52013....................................................... 11,726.4 9,456.5 2,175.5 47.8 42.92014....................................................... 11,980.9 9,724.9 2,167.2 37.7 46.72015....................................................... 12,257.3 10,012.2 2,156.9 34.0 49.22016....................................................... 12,480.4 10,202.4 2,139.2 77.6 55.71 Beginning in fiscal year 2008, beneficiaries and benefit payments include partition payments to spouses and divorced spouses where the employee is deceased or not otherwise entitled to an annuity. Benefit payments also include a small amount of payments for hospital insurance benefits for services in Canada.

2 Retirement benefits include vested dual benefit and supplemental annuity payments. Survivor benefits include vested dual benefit payments.3 Includes temporary extended unemployment benefits under the American Recovery and Reinvestment Act of 2009 and Worker, Homeownership, and Business Assistance

 Act of 2009, as amended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the Temporary Payroll Tax Cut Continuation Act of 2011, the Middle Class Tax Relief and Job Creation Act of 2012, and the American Taxpayer Relief Act of 2012. Benefits had to begin by December 31, 2013.4 In accordance with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011, amounts reflect a reduction of 9.2% under sequestration for days of unemployment and sickness after February 28, 2013, 7.2% for days after September 30, 2013, 7.3% for days after September 30, 2014, and 6.8% for days after September 30, 2015.

Fiscal year

NOTE.-- Number of beneficiaries represents all individuals paid benefits in year. In total number for each year, beneficiaries are counted only once, even though they may have received more than one type of benefit. In fiscal year 2016, 6,800 individuals received both retirement and survivor benefits, 900 employees received both unemployment and sickness benefits, and 1,900 employees received benefits under both the Railroad Retirement Act and the Railroad Unemployment Insurance Act. 

These figures are partly estimated, and totals for earlier years are similarly adjusted.
 

StatisticalTables 49

Item 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

RAILROAD RETIREMENT ACCOUNTReceipts

Tax transfers 1..................................................................... $2,637.8 $2,636.5 $2,501.2 $2,599.0 $2,712.7 $2,659.8 $3,140.2 $3,392.2 $3,760.8 $3,586.7Interest and profit on investments 2....................................... 19.3 12.9 12.0 11.0 12.3 11.4 9.0 14.0 17.2 16.8Transfers from the National RR Investment Trust 3.................. 1,391.0 1,298.0 1,553.0 1,989.0 1,744.0 2,026.0 1,581.0 1,429.0 1,191.0 1,410.0Transfers from the SSEB Account 3.......................................... 181.0 147.0 ........ 81.0 255.0 19.0 171.0 93.0 129.0 ........ Loan repayments from RUI Account 4..................................... ........ ........ ........ ........ 48.4 ........ ........ ........ ........ ........ Loan repayments from DBP Account 4..................................... ........ ........ ........ ........ ........ ........ ........ 4.5 ........ ........ 

Expenditures

Benefit payments 5............................................................... $4,073.0 $4,121.8 $4,326.9 $4,474.4 $4,600.3 $4,775.0 $4,906.2 $5,044.0 $5,106.8 $5,229.0Financial Interchange adjustment 6.......................................... (45.7) (100.0) (104.6) (13.1) (88.5) (141.9) (166.6) (164.0) (162.3) (146.5)Net transfers to administration................................................ 64.0 58.4 63.4 68.7 73.6 69.6 70.2 69.3 72.1 72.3Loans to RUI Account......................................................... ........ ........ ........ 46.5 ........ ........ ........ ........ ........ ........ Loans to DBP Account 7......................................................... ........ ........ ........ ........ ........ ........ ........ 4.5 ........ ........ 

Balance at end of period 8............................................................ $616.9 $632.0 $418.2 $519.0 $706.5 $720.2 $811.7 $791.8 $877.3 $739.6SOCIAL SECURITY EQUIVALENT BENEFIT ACCOUNT 9Receipts

Tax transfers 1..................................................................... $2,538.0 $2,649.3 $2,528.9 $2,514.9 $2,675.3 $2,878.5 $2,954.1 $3,163.1 $3,389.3 $3,097.5Interest and profit on investments 2....................................... 29.0 19.9 19.0 18.9 21.9 20.1 22.4 21.9 24.3 18.6Transfers under financial interchange 10................................. 4,019.8 4,049.9 4,137.3 4,391.6 4,574.3 4,651.0 4,499.0 4,700.8 4,676.6 4,662.7Advances against financial interchange 11.............................. 3,232.3 3,385.6 3,661.1 3,819.0 3,820.4 3,738.6 3,943.0 3,886.1 3,849.9 3,926.1

Expenditures

Benefit payments................................................................. $5,637.9 $5,835.8 $6,107.6 $6,243.7 $6,291.1 $6,506.7 $6,686.9 $6,815.2 $7,035.4 $7,090.4Financial Interchange adjustment 6.......................................... 45.7 100.0 104.6 13.1 88.5 141.9 166.6 164.0 162.3 146.5Net transfers to administration................................................ 25.6 38.5 32.5 33.6 29.6 31.4 30.1 32.3 32.9 30.0Transfers under financial interchange 10................................. 483.3 525.7 524.3 535.1 477.2 510.9 576.6 611.6 594.7 656.8Repayment of advances against financial interchange 4............ 3,418.7 3,410.8 3,564.8 3,837.6 3,946.6 3,946.3 3,863.1 4,041.9 3,982.7 3,940.1Transfers to the National RR Investment Trust/RR Account 3...... 181.0 147.0 ........ 81.0 255.0 19.0 171.0 93.0 129.0 ........ 

Balance at end of period............................................................... $744.2 $791.2 $803.8 $804.0 $807.9 $939.8 $863.9 $877.8 $880.8 $721.9See footnotes at end of table.

Table 2.--Status of the Railroad Retirement Act accounts and trust funds, by fiscal year, 2007-2016 (in millions), cash basis

Fiscal Year
50 2017 Annual Report, U.S. Railroad Retirement Board Item 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 NATIONAL RAILROAD RETIREMENT INVESTMENT TRUST 12 Cash and investment balance at end of period 13........................... $32,631.4 $25,271.5 $23,330.8 $23,770.4 $22,119.0 $23,586.2 $24,963.7 $26,039.9 $24,483.9 $25,007.7 DUAL BENEFITS PAYMENTS ACCOUNT 14 Dual benefit transfers 15............................................................... $88.0 $79.0 $72.0 $64.0 $56.9 $50.9 $44.9 $39.0 $34.0 $29.0 Loans from Railroad Retirement Account 7.................................... ........ ........ ........ ........ ........ ........ ........ 4.5 ........ ........ Benefit payments........................................................................ 86.5 77.7 69.5 62.1 55.2 48.6 42.6 37.2 31.9 27.5 Repayment of loans from Railroad Retirement Account 4.................. ........ ........ ........ ........ ........ ........ ........ 4.5 ........ ........ Balance at end of period 8............................................................ $1.5 $1.3 $2.5 $1.9 $1.7 $2.3 $2.3 $1.8 $2.1 $1.5 Table 2.--Status of the Railroad Retirement Act accounts and trust funds, by fiscal year, 2007-2016 (in millions), cash basis - Continued Fiscal Year

1 Net of U.S. Treasury adjustments for payroll tax refunds to certain carriers and their employees for prior periods. Includes Federal income tax transfers under section 72(r) of the Internal

Revenue Code as amended. In calendar years 2011-2012, Social Security Equivalent Benefit Account includes general revenue transfers under the Tax Relief, Unemployment Insurance

Reauthorization, and Job Creation Act of 2010 and the Middle Class Tax Relief and Job Creation Act of 2012, respectively. The final reconciliation for calendar years 2011-2012

occurred in June 2015. In fiscal year 2012, Social Security Equivalent Benefit Account includes one-time general revenue transfer under the Hiring Incentives to Restore Employment Actof 2010.

2 Net of interest on U.S. Treasury adjustments for payroll tax refunds (see note 1). 3 Under the Railroad Retirement and Survivors' Improvement Act of 2001, as amended, the portion of the Railroad Retirement Account not needed to pay current administrative expenses

is to be transferred to the National Railroad Retirement Investment Trust. The Trust may transfer funds back to the Railroad Retirement Account for payment of benefits. The balance of the Social Security Equivalent Benefit (SSEB) Account not needed to pay current benefits and administrative expenses is to be transferred to the Trust or to the Railroad Retirement Account. The SSEB Account transferred funds to the Trust in fiscal year 2003 and to the Railroad Retirement Account thereafter. 4 Includes interest. 5 Effective January 1, 2002, supplemental benefits are paid from the Railroad Retirement Account. 6 Adjustments in benefit payments charged to the Social Security Equivalent Benefit Account as compared to actual financial interchange benefits, with interest. 7 Due to delay in enactment of a continuing resolution, the Dual Benefits Payments Account borrowed $4,500,000 from the Railroad Retirement Account in October 2013 in order to pay

vested dual benefits. The loan was repaid in its entirety in December 2013. 8 The Railroad Retirement Account balance reflects: (a) the current net difference between Railroad Retirement Board payments of social security benefits and the receipt of 

reimbursements for such payments; (b) liabilities for uncashed check credits received from U.S. Treasury; and (c) credits for undistributed payment returns and recoveries. The Dual

Benefits Payments Account balance does not carry over to the following year. 9 Established October 1, 1984, to keep track of the financing and payment of social security level portions of railroad retirement benefits.

10 Transfers to or from OASDHI Trust Funds under section 7(c)(2) of the 1974 Railroad Retirement Act.11 Advances, including interest, from U.S. Treasury to offset lag in receipt of financial interchange funds under section 7(c)(4) of the 1974 Railroad Retirement Act as amended.12 Established February 1, 2002, for investment of railroad retirement assets.13 Source: National Railroad Retirement Investment Trust.14 Established October 1, 1981, to keep track of the financing and payment of vested dual benefits.15 Transfers from U.S. Treasury under section 15(d) of the Railroad Retirement Act of 1974 and Federal income tax transfers under section 72(r) of the Internal Revenue Code as amended.
 

StatisticalTables 51

Table 3.--Status of the Railroad Unemployment Insurance Account, by fiscal year, 2012-2016 (in thousands), cash basis

Fiscal year

 Item 2012 2013 2014 2015 2016

RECEIPTS

 Taxes............................................................... $184,452 $84,679 $6,248 $46,672 $90,241 Interest............................................................ 4,106 5,686 4,415 3,165 2,514

 Transfer from Administration fund

 under sec. 11(d) of the RUI Act........................... 11,219 10,706 12,257 11,339 13,375 Undistributed recoveries of benefit payments1...... (21) (110) (271) 368 2,458 Total............................................................... $199,755 $100,961 $22,649 $61,544 $108,588

EXPENDITURES

 Benefit payments2, 3.......................................... $81,782 $83,691 $83,823 $83,501 $133,492 Funding for Office of Inspector General............... 1,022 941 1,037 1,053 1,080 Total............................................................... $82,804 $84,633 $84,860 $84,554 $134,572Cash balance end of period................................. $163,895 $180,223 $118,012 $95,002 $69,019

1 Net of distributed payments.2 Excludes temporary extended unemployment benefits authorized by the American Recovery and Reinvestment Act of 2009, the Worker, Homeownership, and Business Assistance Act of 2009,

 the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the Temporary Payroll Tax Cut Continuation Act of 2011, the Middle Class Tax Relief and Job Creation Act of 2012, and the American Taxpayer Relief Act of 2012. Benefits had to begin by December 31, 2013. FY 2012: $6,737,000; FY 2013: $6,982,000; FY 2014: $619,000; FY 2015: –$308,000; and FY 2016: –$154,000.3 In accordance with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011, amounts reflect a reduction of 9.2% under sequestration for days of unemployment and sickness after February 28, 2013, 7.2% for days after September 30, 2013, 7.3% for days after September 30, 2014, and 6.8% for days after September 30, 2015.
52 2017 Annual Report, U.S. Railroad Retirement Board Table 4.--Status of the RUIA Administration Fund, by fiscal year, 2007-2016 (in thousands), cash basis Transfer to Railroad Unemployment Insurance Taxes and Administrative Account under Balance at Fiscal year interest expenditures1 Sec. 11d2 end of period 2007...................................... $23,082 $14,415 $8,923 $9,907 2008...................................... 23,945 14,713 8,711 10,427 2009...................................... 23,151 14,305 9,808 9,465 2010...................................... 22,990 15,729 8,305 8,421 2011...................................... 23,722 12,442 7,918 11,783 2012...................................... 25,463 14,608 11,219 11,419 2013...................................... 26,202 14,591 10,706 12,324 2014...................................... 25,225 15,172 12,257 10,120 2015...................................... 28,063 12,987 11,339 13,858 2016...................................... 27,146 15,498 13,375 12,132 

1 Expenditures for each year included encumbrances as of end of year. Fiscal years 2007-2009 and 2011-2016 reflect 

reallocation of prior period administrative expenses between the Railroad Retirement Act and Railroad Unemployment Insurance Act programs.

2 Transfers to the Railroad Unemployment Insurance Account are based on the excess of the accrual balance on the prior

September 30 over $6,000,000.
 

StatisticalTables 53

Retired employees

Spouses

Awarded Disability and Widowed

age converted Supple- divorced Aged Disabled mothers Remarried Divorced 

 Total1 annuity to age2 Disability mental3 spouses widow(er)s4 widow(er)s5 (fathers)4 Children widow(er)s widow(er)s4

NUMBER AT END OF YEAR2007 ............................ 696,472 193,282 34,147 50,172 121,188 137,371 129,350 4,596 877 11,078 4,751 9,6152008 ............................ 686,636 191,146 34,401 49,648 120,824 136,332 124,089 4,450 832 10,692 4,552 9,5522009 ............................ 680,534 190,302 34,688 49,116 120,778 136,467 119,459 4,323 814 10,417 4,361 9,5202010 ............................ 676,653 190,236 35,557 47,960 121,166 137,112 114,929 4,251 776 10,168 4,161 9,5952011 ............................ 672,484 190,100 36,259 46,850 121,422 138,253 110,372 4,136 745 9,881 4,003 9,5982012 ............................ 668,957 189,909 37,370 45,066 121,614 139,741 106,268 4,081 739 9,687 3,824 9,6602013 ............................ 664,055 189,569 39,506 41,745 121,530 140,894 102,186 3,965 703 9,463 3,666 9,7102014 ............................ 661,069 190,224 41,554 37,891 122,086 142,626 98,435 3,868 688 9,164 3,506 9,7472015 ............................ 656,847 190,114 43,141 34,514 123,037 143,920 94,279 3,741 665 8,978 3,344 9,7042016 ............................ 654,127 190,835 44,744 31,308 122,966 145,891 90,919 3,660 652 8,695 3,187 9,709AVERAGE AMOUNT2007 ............................ ......... $1,890 $1,713 $2,203 $42 $709 $1,173 $989 $1,471 $853 $781 $7732008 ............................ ......... 1,982 1,787 2,267 42 742 1,222 1,025 1,529 879 816 8042009 ............................ ......... 2,126 1,909 2,400 42 795 1,294 1,084 1,597 935 879 8672010 ............................ ......... 2,186 1,954 2,419 42 817 1,329 1,108 1,643 937 896 8802011 ............................ ......... 2,244 1,995 2,437 42 839 1,366 1,133 1,663 941 907 8922012 ............................ ......... 2,363 2,098 2,526 42 882 1,426 1,181 1,700 980 956 9382013 ............................ ......... 2,451 2,180 2,574 42 915 1,476 1,217 1,757 1,006 986 9742014 ............................ ......... 2,536 2,252 2,613 42 946 1,525 1,250 1,798 1,027 1,005 1,0052015 ............................ ......... 2,625 2,322 2,663 42 975 1,576 1,285 1,835 1,055 1,036 1,0402016 ............................ ......... 2,675 2,358 2,675 42 991 1,618 1,307 1,883 1,066 1,050 1,055

1 Includes annuities to parents and, beginning in fiscal year 2008, partition payments to spouses and divorced spouses where the employee is deceased or not otherwise entitled to

an annuity. On September 30, 2016, there were 22 parents' annuities in current-payment status averaging $927 and 1,539 partition payments averaging $307.

2 A disability annuity ends when the retiree attains full retirement age, at which time the annuity converts to an age and service annuity. Consequently, these annuitants are receiving age and service annuities. Full retirement age is age 65 for those born before 1938 and gradually increases to age 67 for those born 1960 and later.

3 Excludes partition payments to spouses and divorced spouses where the employee is deceased. Averages are after court-ordered partitions.4 Numbers include annuities temporarily being paid at spouse annuity rates, pending final adjudication of survivor annuities. 5 Includes annuities to disabled widow(er)s age 60 and over now payable as aged widow(er)s' annuities. 

NOTE.--Data exclude survivor (option) annuities, last payable in December 2005.

Table 5.--Number and average amount of retirement and survivor annuities in current-payment status at end of year,

by type of annuitant and fiscal year, 2007-2016

Fiscal year
54 2017 Annual Report, U.S. Railroad Retirement Board Retired employees Spouses and Widowed Supple- divorced Aged Disabled mothers Remarried Divorced Total1 Age Disability mental2 spouses widow(er)s widow(er)s (fathers) Children widow(er)s widow(er)s NUMBER AWARDED 2007 ........................ 38,743 9,643 3,619 7,273 10,065 6,482 205 113 498 182 661 2008.......................... 38,591 9,753 3,402 7,090 10,127 6,511 166 143 515 188 693 2009.......................... 39,317 10,310 3,213 7,015 10,919 6,283 181 142 463 166 622 2010.......................... 40,191 10,712 3,161 7,319 11,256 6,163 189 99 429 157 702 2011.......................... 39,647 10,542 3,086 7,087 11,301 6,053 173 110 417 158 718 2012.......................... 38,649 10,054 2,858 6,778 11,479 5,828 181 115 454 164 734 2013.......................... 38,094 10,211 2,324 6,502 11,444 5,995 164 111 456 146 739 2014.......................... 37,294 10,210 1,800 6,673 11,495 5,582 133 111 398 144 745 20153........................ 36,316 10,059 1,686 6,194 11,300 5,546 120 99 462 151 696 2016......................... 35,950 10,236 1,682 5,910 11,373 5,319 123 94 380 116 715 Cumulative 1937-2016 5,239,208 1,523,587 527,184 522,799 1,222,681 1,051,438 19,048 85,512 239,183 16,090 28,134

AVERAGE AMOUNT2007......................... ........ $2,562 $2,397 $41 $890 $1,557 $1,373 $1,585 $1,099 $885 $8542008......................... ........ 2,650 2,441 41 911 1,629 1,385 1,721 1,153 964 9012009......................... ........ 2,685 2,558 41 931 1,708 1,443 1,709 1,233 1,030 9962010......................... ........ 2,786 2,509 41 950 1,740 1,536 1,778 1,203 1,064 9632011......................... ........ 2,814 2,524 41 958 1,789 1,531 1,779 1,194 1,077 9912012......................... ........ 2,888 2,585 41 981 1,859 1,515 1,647 1,220 1,130 1,0492013......................... ........ 2,921 2,565 41 1,003 1,911 1,503 1,916 1,332 1,161 1,1042014......................... ........ 3,041 2,624 41 1,024 1,985 1,615 1,874 1,294 1,151 1,0952015......................... ........ 3,114 2,611 41 1,055 2,031 1,685 1,728 1,302 1,153 1,1752016......................... ........ 3,124 2,667 41 1,062 2,096 1,677 2,034 1,371 1,166 1,174

Table 6.--Number and average amount of retirement and survivor annuities awarded during year, by type of annuitant and fiscal year, 2007-2016

Fiscal year

1 Excludes partition payments to spouses and divorced spouses where the employee is deceased or not otherwise entitled to an annuity. Includes annuities to parents. 

Fiscal year 2016 total includes 2 annuities to parents averaging $1,217. Cumulative total includes 3,552 annuities to parents.

2 Excludes partition payments to spouses and divorced spouses where the employee is deceased. Averages are after court-ordered partitions.3 Supplemental annuity awards exclude more than 1,000 restorations due to Legal Opinion 2014-2, Reductions to Supplemental Annuities for 401(k) Distributions.

NOTE.--Cumulative figures reflect adjustments not made in yearly data, but average amounts for each year include effects of changes in rates made by the end of the year. 
 

StatisticalTables 55

Total1 Retirement benefits2 Survivor benefits

 Monthly Monthly Monthly

State3 Number amount Number amount Number amount

Alabama..................................................................... 11,900 $18,737 9,700 $15,416 2,200 $3,318Alaska........................................................................ 200 313 200 262 (4) 50Arizona........................................................................ 11,800 18,235 9,700 15,042 2,100 3,180Arkansas..................................................................... 12,500 19,498 10,500 16,570 1,900 2,914California..................................................................... 32,600 48,975 26,600 40,298 6,000 8,655Colorado..................................................................... 10,400 16,973 8,800 14,585 1,600 2,383Connecticut................................................................ 2,900 5,368 2,300 4,493 600 873Delaware..................................................................... 2,800 4,671 2,400 4,036 400 633Washington DC............................................................ 500 633 400 541 100 93Florida........................................................................ 36,200 56,883 30,300 48,420 5,800 8,442Georgia........................................................................ 21,200 33,829 17,800 28,676 3,400 5,146Hawaii........................................................................ 200 281 200 228 (4) 52Idaho......................................................................... 5,800 9,217 4,800 7,724 900 1,488Illinois........................................................................ 40,400 62,069 33,100 51,171 7,200 10,858Indiana........................................................................ 19,300 30,275 15,800 24,925 3,500 5,333Iowa........................................................................... 11,300 17,730 9,300 14,692 1,900 3,026Kansas........................................................................ 17,300 27,883 14,600 23,590 2,700 4,280Kentucky..................................................................... 17,900 27,232 14,600 22,241 3,200 4,978Louisiana................................................................... 9,100 14,199 7,400 11,593 1,700 2,602Maine........................................................................... 2,900 4,199 2,300 3,312 600 886Maryland..................................................................... 10,300 16,080 8,400 13,309 1,900 2,766Massachusetts............................................................ 4,600 7,172 3,800 5,926 800 1,245Michigan..................................................................... 16,400 25,071 13,400 20,469 3,000 4,587Minnesota.................................................................. 17,500 26,952 14,400 22,311 3,100 4,623Mississippi.................................................................. 7,200 10,903 5,900 8,831 1,400 2,070Missouri..................................................................... 23,800 36,943 19,900 31,090 3,800 5,832Montana..................................................................... 7,300 11,715 6,200 9,901 1,100 1,808Nebraska..................................................................... 18,000 31,108 15,700 27,427 2,200 3,665Nevada...................................................................... 4,000 6,209 3,400 5,192 700 1,014New Hampshire........................................................... 1,000 1,592 800 1,307 200 285New Jersey................................................................. 10,000 17,079 8,000 14,128 2,000 2,950New Mexico................................................................ 5,100 7,885 4,100 6,432 1,000 1,448New York..................................................................... 24,000 40,685 19,300 33,845 4,700 6,832North Carolina.............................................................. 12,300 18,389 9,900 14,968 2,400 3,415North Dakota............................................................... 3,900 6,264 3,200 5,127 700 1,134See footnotes at end of table.

Table 7.--Retirement and survivor benefits in current-payment status on September 30, 2016, by class and state (amounts in thousands)
56 2017 Annual Report, U.S. Railroad Retirement Board Total1 Retirement benefits2 Survivor benefits Monthly Monthly Monthly State3 Number amount Number amount Number amount Ohio........................................................................... 29,800 $44,710 23,600 $35,385 6,200 $9,308 Oklahoma.................................................................. 6,000 9,391 4,900 7,651 1,100 1,735 Oregon...................................................................... 9,500 14,626 7,800 12,054 1,700 2,560 Pennsylvania............................................................. 37,900 59,486 29,800 47,491 8,000 11,982 Rhode Island.............................................................. 700 1,107 600 925 100 182 South Carolina............................................................ 8,500 13,183 7,000 11,057 1,500 2,121 South Dakota............................................................. 2,200 3,416 1,900 2,952 300 463 Tennessee.................................................................. 15,100 23,623 12,500 19,666 2,700 3,947 Texas.......................................................................... 42,200 68,449 34,900 57,353 7,100 11,042 Utah........................................................................... 6,200 10,034 5,100 8,291 1,100 1,738 Vermont..................................................................... 900 1,194 700 910 200 283 Virginia..................................................................... 19,700 31,016 16,000 25,575 3,700 5,434 Washington............................................................... 13,400 20,883 10,900 17,161 2,400 3,712 West Virginia.............................................................. 9,600 14,959 7,500 11,775 2,100 3,179

Wisconsin.................................................................. 12,100 18,246 9,900 14,959 2,100 3,276Wyoming.................................................................. 4,500 7,771 3,900 6,828 600 936Outside United States:Canada...................................................................... 2,200 1,433 1,400 746 700 687Mexico...................................................................... 200 197 100 75 100 123Other.......................................................................... 600 727 400 495 200 232 Total5...................................................................... 654,100 $1,025,717 535,700 $849,441 116,800 $175,805

Table 7.--Retirement and survivor benefits in current-payment status on September 30, 2016, by class and state (amounts in thousands) - Continued

1 Includes 1,500 partition payments to spouses and divorced spouses where the employee is deceased or not otherwise entitled to an annuity. 2 Includes 123,000 supplemental annuities to employees receiving regular annuities. In a relatively small number of cases, employees were also receiving spouse or

widow(er)'s benefits.

3 State of residence of beneficiary on September 30, 2016.4 Less than 50.5 Includes beneficiaries whose state of residence was unknown.

NOTE.--Retirement benefits include regular and supplemental employee annuities, spouse annuities and divorced spouse annuities. Survivor benefits include annuities to aged and disabled widow(er)s, widowed mothers and fathers, remarried and divorced widow(er)s, children, parents, and widow(er)s annuities temporarily being paid at 

spouse annuity rates pending final adjudication of survivor annuities. Benefit amounts exclude social security payments to dual beneficiaries.
 

StatisticalTables 57

Table 8.-- Principal administrative data for the unemployment and sickness benefit programs, 

benefit years 2011-2012 through 2015-2016, cash basis

Item 2011-2012 2012-20131 2013-20141 2014-20151 2015-20161

Qualified employees................................. 235,100 243,800 247,600 248,200 254,200Maximum daily benefit rate...................... $66 $66 $68 $70 $72

UNEMPLOYMENT BENEFITS

Net amount of benefits paid (thousands) $40,691 $47,174 $39,867 $30,752 $71,655Payments:2 Number................................................... 71,800 83,500 69,700 52,100 112,300 Average amount per two week claim period......................................... $573 $557 $550 $578 $591Beneficiaries............................................... 9,200 10,700 10,000 7,600 16,400Applications received................................ 12,300 14,500 13,100 11,500 24,100Claims received.......................................... 81,400 96,000 82,900 62,500 137,000Normal benefit accounts exhausted........ 2,200 2,500 2,300 1,900 3,300Non-compensable waiting period only3.. (4) (4) (4) (4) (4)

SICKNESS BENEFITS

Net amount of benefits paid (thousands) $49,056 $43,394 $45,316 $48,428 $54,511Payments:2 Number................................................... 112,200 102,500 101,100 102,700 109,700 Average amount per two week claim period......................................... $585 $571 $555 $572 $592Beneficiaries............................................... 16,700 15,800 15,600 15,500 16,000Applications received................................ 20,600 19,400 19,100 19,400 19,800Claims received.......................................... 131,700 121,100 119,900 121,300 129,200Normal benefit accounts exhausted........ 3,000 2,600 2,600 2,800 3,100Non-compensable waiting period only3.. 100 (4) (4) 100 (4)

1 In accordance with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011, amounts reflect a

reduction of 9.2% under sequestration for days of unemployment and sickness after February 28, 2013, 7.2% for days after September 30, 2013, 7.3%for days after September 30, 2014, and 6.8% for days after September 30, 2015.

2 Not adjusted for recoveries or settlements of underpayments.3 Benefits are payable for each day of unemployment or sickness in excess of 7 during the first 14-day registration period in a benefit year.4 Less than 50.

NOTE.--Data covered program activities during the year, regardless of when unemployment or sickness occurred. Starting in June 2009, includes temporary extended unemployment benefits authorized by the American Recovery and Reinvestment Act of 2009, the Worker, Homeownership, and Business Assistance Act of 2009, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the Temporary Payroll Tax Cut Continuation Act of 2011, the Middle Class Tax Relief and Job Creation Act of 2012 and the American Taxpayer Relief Act of 2012. Benefits had to begin by December 31, 2013. Net benefits for 

these temporary payments were: $7,011,000 in 2011-2012; $6,868,000 in 2012-2013; $2,391,000 in 2013-2014; –$327,000 in 2014-2015; and –$212,000 in 2015-2016.
58 2017 Annual Report, U.S. Railroad Retirement Board Table 9--All employees, new entrants, employees qualified for RUIA benefits, and related data, by employer, 2015 All employees New entrants Creditable compensation (thousands) With With 12 months sufficient Qualified Qualified of service service for for RUIA for RUIA Class or name of employer Total in 2015 RRA annuity benefits Total benefits Tier I Tier II RUIA CLASS OF EMPLOYER Class I railroads.......................................................... 210,478 167,321 140,784 203,615 14,301 10,706 $15,492,686 $14,433,782 $3,353,097 Class II railroads......................................................... 5,587 4,346 3,534 5,242 509 316 353,180 337,675 86,009 Class III railroads and switching & terminal companies........................... 46,338 36,572 31,969 43,582 3,847 2,327 3,269,914 2,977,740 722,729 Car-loan companies................................................... 2,155 1,492 1,030 1,965 523 371 122,400 116,078 31,821 Miscellaneous employers1.................................... 6,971 5,331 4,233 6,277 743 413 497,907 434,984 103,037 Total.......................................................................... 271,529 215,062 181,550 260,681 19,923 14,133 $19,736,086 $18,300,259 $4,296,693 SELECTED EMPLOYERS BNSF Railway Co....................................................... 51,633 41,566 31,815 50,255 3,104 2,250 $4,054,932 $3,727,080 $830,873

Canadian National, U.S. Operations Bessemer and Lake Erie Railroad Co.................. 82 61 49 79 7 6 5,561 5,390 1,258

 Chicago Central and Pacific Railroad Co............ 286 233 212 280 11 10 23,905 21,437 4,674 Grand Trunk Western Railroad Co....................... 886 669 606 877 39 37 76,363 66,901 14,192 Illinois Central Railroad Co................................... 4,246 3,399 2,939 4,159 223 176 347,379 311,781 68,262

 Pittsburgh and Conneaut Dock Co...................... 46 32 22 44 7 6 2,455 2,455 679 Wisconsin Central Transportation Corp.............. 2,289 1,819 1,481 2,240 125 115 188,873 170,387 36,647

Canadian Pacific, Soo Line Corporation Dakota, Minnesota & Eastern Railroad Corp...... 769 618 503 738 42 35 45,633 44,412 11,884 Delaware and Hudson Railway Co. Inc................ 327 210 211 303 9 8 20,628 19,473 4,683 Soo Line Railroad Co............................................. 2,762 2,125 1,786 2,619 180 128 199,323 185,927 42,596

CSX Transportation Inc............................................. 32,396 25,569 22,297 31,384 1,504 1,214 2,456,707 2,286,277 515,114

Kansas City Southern Railway Co........................... 3,195 2,538 2,094 3,024 264 157 227,630 213,341 50,325

 Gateway Eastern Railway Co................................ 10 10 9 10 ..... ..... 656 648 175

 Texas Mexican Railway Co.................................... 263 196 123 254 16 9 19,933 18,388 4,084National Railroad Passenger Corp. (Amtrak).......... 22,663 17,855 15,531 21,738 1,825 1,215 1,563,891 1,459,803 358,455

Norfolk Southern Corp.............................................. 33,165 26,549 22,964 31,675 3,110 2,157 2,280,480 2,163,522 525,416

Union Pacific Railroad Co......................................... 55,460 43,872 38,142 53,936 3,835 3,183 3,978,336 3,736,558 883,779

1 Includes labor organizations, lessor companies, employer associations and miscellaneous carrier affiliates.

NOTE.--Tier I compensation excludes miscellaneous compensation taxable at the tier I tax rate.

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