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
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

2018 Annual Report

For Fiscal Year Ended September 30, 2017

The Report in Brief 1

A Review of Operations 6

Administrative Developments 34

Legal Rulings 45

Statistical Tables 48

RRB.gov
1

The Report in Brief

Benefits and Beneficiaries

Benefits paid under the Railroad Retirement and Railroad Unemployment 

Insurance Acts totaled almost $12.6 billion in the fiscal year ending 

September 30, 2017. Retirement and survivor benefits were paid by the RRB to about 

548,000 beneficiaries during the fiscal year, of whom 517,000 were on the RRB’s 

annuity rolls at the end of the year. Approximately 28,000 railroad employees were paid 

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

payments under both the Railroad Retirement Act and the Railroad Unemployment 

Insurance Act.

Retirement and survivor benefit payments of $12.5 billion during fiscal year 

2017 were $122.5 million more than payments in the prior year. Employee and 

spouse annuitants were paid some $10.3 billion, accounting for 83 percent of the 

total payments. Employees received almost $7.5 billion in age annuities (including 

$1.3 billion to annuitants full retirement age and over originally awarded a disability 

annuity), $1 billion in disability annuities, and $61.2 million in supplemental annuities, 

while spouses and divorced spouses received approximately $1.8 billion.1

 Survivors 

were paid $2.1 billion in annuities and nearly $2.4 million in lump-sum benefits. The 

total number of beneficiaries who received retirement and survivor benefits declined by 

about 5,000 from fiscal year 2016.

Railroad retirement and unemployment insurance benefits totaling almost 

$12.6 billion were paid by the Railroad Retirement Board (RRB) to about 574,000 

beneficiaries in fiscal year 2017. Financial reports issued in 2018 on the 

solvency of the railroad retirement and railroad unemployment insurance systems 

were both favorable. Total railroad retirement system assets 

equaled $27.8 billion as of September 30, 2017. 

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 2 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 2018 Annual Report, U.S. Railroad Retirement Board

Gross unemployment and sickness benefits paid in fiscal year 2017 totaled about

$130 million. Net benefits totaled almost $105.4 million after adjustment for recoveries of 

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

Total gross benefit payments decreased by some $25.8 million while net benefit payments 

decreased by nearly $28 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 7.3 percent for days of unemployment 

and sickness after September 30, 2014, 6.8 percent for days after September 30, 2015, and 

6.9 percent for days after September 30, 2016.

Gross unemployment benefits decreased by 33 percent compared to the previous 

year due to the slower decline in employment than the prior year. Gross unemployment 

benefits totaling $53.8 million ($46.6 million net) were paid to 12,400 claimants, while 

gross sickness benefits of $76.3 million ($58.8 million net) were paid to 16,400 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 27th triennial actuarial valuation, submitted to Congress in 2018, 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 next 29 years. Cash-flow problems arise 

only under the most pessimistic employment assumption, and then not until 2047. The 

long-term stability of the system, however, is not assured. 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 2018 railroad unemployment insurance financial report was also generally 

favorable. Even as projected maximum benefit rates increase 51 percent (from $72 to $109) 

from 2017 to 2028, 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 2018 in order 

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

report projects a 1.5 percent surcharge in 2019, with a 1.5 percent surcharge probable in 

2020 under the intermediate and pessimistic assumptions, and intermittently thereafter.
 The Report in Brief 3

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

fiscal year 2017 showed that, as of September 30, 2017, the net asset value of the Trustmanaged assets was $26.5 billion. This represented an increase from $25.1 billion in 

the previous year, with a net investment return for the year of 13.4 percent. The ending 

balance also reflects a transfer of $1.8 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 $27.8 billion.

The 2018 railroad retirement and railroad unemployment insurance financial reports 

and the National Railroad Retirement Investment Trust’s 2017 annual management report 

are available at RRB.gov.

Service Delivery

Customer Service Plan

In fiscal year 2017, 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 implemented initiatives to improve processing of disability benefits and Medicare 

payments.

Office of Inspector General

During fiscal year 2017, 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 8 audit reports and 3 assessments that recommended 

improvements in agency operations.

Investigative activities resulted in 3 arrests, 29 indictments and/or informations, 

39 convictions, 11 civil judgments, and more than $149 million in financial accomplishments. This reflects fraud amounts related to programs administered exclusively by the 

RRB as well as fraud amounts from other Federal programs such as Medicare or social 

security which were identified during Office of Inspector General joint investigative work.
4 2018 Annual Report, U.S. Railroad Retirement Board

Selected Data on Benefit Operations

 Fiscal Year Fiscal Year

 Retirement-Survivor

1 2017 2016

Employee age annuities

Number awarded 9,100 10,200

Awarded Age Annuity

 Number being paid at end of period 190,300 190,800

 Average being paid at end of period $2,731 $2,675

Disability converted to age annuity 2

 Number being paid at end of period 46,200 44,700

 Average being paid at end of period $2,401 $2,358

Employee disability annuities

Number of total disability annuities awarded 700 700

Number of occupational disability

 annuities awarded 900 900

Number of total disability annuities being paid 

 at end of period 9,600 10,300

Number of occupational disability annuities

 being paid at end of period 18,300 21,000

Average total disability annuity

 being paid at end of period $1,938 $1,911

Average occupational disability annuity

 being paid at end of period $3,087 $3,053

Supplemental employee annuities3

Number awarded 5,200 5,900

Number being paid at end of period 122,100 123,000

Average being paid at end of period $42 $42

Spouse and divorced spouse annuities

Number awarded, total 10,800 11,400

Number being paid to divorced

 spouses at end of period 5,100 4,900

Number being paid at end of period, total 146,900 145,900

Average being paid to divorced spouses

 at end of period $632 $622

Average being paid at end 

 of period, total $1,008 $991

Survivor annuities

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

Number awarded, total 6,900 6,700

Number being paid to aged widow(er)s

 at end of period 87,800 90,900

Number being paid at end of period, total 113,200 116,800

Average being paid at end of period to

Aged widow(er)s $1,664 $1,618

Disabled widow(er)s4 $1,326 $1,307

Widowed mothers (fathers) $1,878 $1,883

Remarried widow(er)s $1,071 $1,050

Divorced widow(er)s $1,078 $1,055

Children $1,078 $1,066

Partition payments5

Number being paid at end of period 1,700 1,500

Average being paid at end of period $315 $307

Lump-sum survivor benefits awarded

Number of lump-sum death benefits 2,500 2,800

Average lump-sum death benefit $933 $921

Number of residual payments 6/ 6/

Average residual payment $1,040 $5,516
 The Report in Brief 5

Selected Data on Benefit Operations (Continued)

 Fiscal Year Fiscal Year

 Employees and Earnings7 2017 2016

Average employment 225,000 233,000

Creditable earnings, Railroad Retirement

 Act (billions):

 Tier I $18.28 $18.60

 Tier II $16.92 $17.02

Creditable earnings, Railroad

 Unemployment Insurance Act (billions) $4.08 $4.05

 Benefit Year Benefit Year

 Unemployment-Sickness8 2016-2017 2015-2016

Qualified employees 260,700 254,200

Unemployment benefits

Net amount paid (millions) $53.99 ($46.6)10 $71.79 

Beneficiaries 13,200 (12,400)10 16,400

Number of payments 90,000 112,300

Normal benefit accounts exhausted 3,100 3,300

Average payment per 2-week registration period $594 $591

Sickness benefits

Net amount paid (millions) $59.8 ($58.8)10 $54.5

Beneficiaries 16,100 (16,400)10 16,000

Number of payments 114,400 109,700

Normal benefit accounts exhausted 3,400 3,100

Average payment per 2-week registration period $597 $592

1 Benefits are through September 30 for the associated years.

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. There are no annuitants receiving 1937 Act supplemental annuities.

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

widow(er)s’ annuities.

5 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.

6 Fewer than 50.

7 Except for fiscal year 2016 employment, all figures in this section are preliminary.

8 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, 6.8% for days 

after September 30, 2015, and 6.9% for days after September 30, 2016.

9 Benefit years 2015-2016 and 2016-2017 both include –$0.2 million 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.

10 Data in parentheses are for fiscal year (October 1, 2016 – September 30, 2017). 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, 2017, 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 $27.8 billion, 

an increase of $1.3 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 7 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 2017, 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 $12.5 billion in benefit obligations 

(excluding $1.6 billion in social security benefits which were reimbursed by the Social 

Security Administration) during fiscal year 2017.

At the end of fiscal year 2017, total railroad retirement system assets equaled 

$27.8 billion. During fiscal year 2017, benefits totaling approximately $12.6 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 $104.6 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 

$6.0 billion, representing 47 percent of total financing sources (excluding an increase of 

$1,515.6 million, mostly due to a change in NRRIT net assets) and $39.3 million more than 

in fiscal year 2016.

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

security taxes. The 2017 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 2017 was $127,200, with all earnings 

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 $94,500 

and $88,200 in 2017 and 2016, respectively, was 4.9 percent on employees in both years. It 

was 13.1 percent on employers in both 2017 and 2016.

Tier I and tier II taxes for fiscal year 2017 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 2017 amounted to $4.1 billion.

(text continued on page 9)
8 2018 Annual Report, U.S. Railroad Retirement Board

Costs - Fiscal Year 2017 (In Millions)

TOTAL: $12,705.1

RETIREMENT AND SURVIVOR PROGRAM

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

Financing Sources - Fiscal Year 2017 (In Millions)

GROSS TOTAL: $12,692.31

1

Excludes −$1,515.7 million as shown under Other Financing Sources on page 11.

National Railroad 

Retirement 

Investment Trust

Transfers-In 14.3%

$1,821.0

Interest on

Investments 0.2%

$31.2

Federal Income 

Taxes 5.6%

$710.0

Payroll Taxes 47.0%

$5,966.7 Financial Interchange 32.6%

$4,133.4

General 

Appropriations 0.2%

$30.0

Benefit Payments 98.1%

$12,461.0

Salaries and 

Expenses 1.1%

$143.1

Interest 

Expense 0.8%

$101.0
 A Review of Operations 9

Interest on Investments and Other Revenue

Interest revenue decreased from $34.3 million in fiscal year 2016 to $31.2 million in 

fiscal year 2017. 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 2017 amounted to $712 million during the year. 

Original transfers for fiscal year 2016 totaled $683 million. There were no reconciliation 

adjustments in fiscal year 2017. Net transfers in fiscal year 2016 were $759 million, 

including $76 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 2008 

through 2017, 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 2017 and 2016 were $25.0 million and $28.0 million, 

respectively. These amounts include Federal income tax transfers for 2017 and 2016. 

The amount appropriated for fiscal year 2017 was 10.7 percent less than fiscal year 2016, 

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 2016-2017, and also $150,000 for fiscal 

years 2015-2016. 

(text continued on page 13)
10 2018 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 2008-2017 (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

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

2017 292 422 2

Reconciliation adjustments4

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 2017 2016

 

Financing Sources:

Payroll Taxes $5,966.7 $5,927.4

Financial Interchange 4,133.4 4,123.7

Interest on Investments and Other Revenue 31.2 34.3

Federal Income Taxes 710.0 758.0

General Appropriations 30.0 32.8

Other 1,515.7 774.0

Transfers to the National 

 Railroad Retirement Investment Trust 0.0 0.0

Transfers from the National 

 Railroad Retirement Investment Trust 1,821.0 1,410.0

 Total Financing Sources 14,208.0 13,060.2

Costs:

Benefit Payments 12,461.0 12,364.5

Interest Expense 101.0 97.5

Salaries and Expenses2 143.1 139.7

Other (21.2) (25.1)

 Total Costs 12,683.9 12,576.6

Financing Sources over Costs 1,524.1 483.6

Net Position - Beginning of Period 25,631.4 25,147.8

Net Position - End of Period $27,155.5 $25,631.4

1 Prepared on an accrual basis of accounting. 

2

 Includes unemployment and sickness insurance salaries and expenses of approximately 

 $20.0 million and $18.4 million for fiscal years 2017 and 2016, respectively.
12 2018 Annual Report, U.S. Railroad Retirement Board

Market value of assets managed 

by NRRIT on September 30, 2017 $26.5 billion

Rate of return of investment portfolio 

managed by NRRIT for full year 

ended September 30, 2017 13.38%

Source: NRRIT 

All NRRIT annual management reports and quarterly updates are available at RRB.gov.

National Railroad Retirement Investment Trust (NRRIT) 

Fiscal Year 2017 Summary
 A Review of Operations 13

Other Financing Sources

Other financing sources consisted of $6.5 million to be provided by the Office of 

Personnel Management to pay future retirement benefits to RRB employees and 

$26.8 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 $1.3 billion, transfers-out of $8.8 million for salaries 

and expenses of the RRB’s Office of Inspector General, and a $2.4 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 $143.1 million and 

$139.7 million shown on page 11 for salaries and expenses in fiscal years 2017 and 2016, 

respectively, about $20.0 million for fiscal year 2017 and $18.4 million for fiscal year 2016 

were for the unemployment and sickness insurance program. About $0.9 million in other 

costs for fiscal year 2017 and $0.8 million for fiscal year 2016 were for the unemployment 

and sickness insurance program. 

Excluding $17.6 million from total costs of $12.7 billion for fiscal year 2017 and 

$17.6 million from total costs of $12.6 billion for fiscal year 2016, total costs for the railroad 

retirement and survivor program for fiscal year 2017 increased $105.5 million, or 

0.8 percent.

Benefit Payments

In fiscal year 2017, railroad retirement benefit payments increased $96.5 million, or 

almost 0.8 percent, to about $12.5 billion on an accrual basis, including $23.7 million in 

vested dual benefits.

Interest Expense

Interest expense of $101.0 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 

$20.0 million for fiscal year 2017 and $18.4 million for fiscal year 2016, salaries and 

expenses for the railroad retirement and survivor program were about $123.1 million for 

fiscal year 2017 and about $121.3 million for fiscal year 2016, a $1.8 million or 

1.5 percent increase. Adjusted by the $20.0 million in salaries and expenses and 

$0.9 million in other costs for the unemployment and sickness insurance program, fiscal 

year 2017 administrative expenses for the railroad retirement and survivor program were 

about 0.96 percent of total costs.
14 2018 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 $5.6 million for the railroad retirement and survivor 

program and $0.9 million for the unemployment and sickness insurance program. In 

addition, carrier refunds of $3,000 were incurred. These costs were offset by approximately 

$27.2 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 $1,800.

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 2017, the net asset value of Trust-managed assets increased from 

$25.1 billion on October 1, 2016, to $26.5 billion on September 30, 2017. This includes 

$1.8 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 13.4 percent.

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

Treasury accounts) grew from $20.7 billion in 2002 to $27.8 billion as of the end of fiscal 

year 2017, after net transfers for benefit payments of approximately $21.1 billion over the 

same time frame.

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

fiscal year 2017, which is available at RRB.gov.

BENEFIT OPERATIONS

Retirement and survivor benefits paid, including vested dual benefits and supplemental employee annuities, totaled $12.5 billion in fiscal year 2017, $122 million more than in 

fiscal year 2016. Benefits were paid to about 547,700 beneficiaries in fiscal year 2017, and 

nearly 517,000 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 

2017 and 2016, 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 2017, tier I benefits increased by 2.0 percent due to a cost-of-living 

adjustment, while tier II benefits increased by 0.7 percent. Increases of 0.3 percent for tier I 

and 0.1 percent for tier II were effective December 2016.

Monthly retirement and survivor 

benefits being paid numbered nearly 

648,300 at the end of the 2017 fiscal 

year, about 5,900 less than at the end 

of the prior year. Monthly beneficiaries 

on the rolls declined by approximately 

5,000 over the year, from 522,000 

to 517,000. 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 

2017 numbered 264,500, about 2,400 

less than at the end of the previous 

fiscal year. The number of age annuities 

being paid, including 46,200 disability 

annuities converted to age, rose slightly 

from 235,600 to 236,500 over the year, 

while disability annuities decreased 

from 31,300 to 28,000. Supplemental 

annuities being paid to employees 

declined by approximately 900, 

numbering 122,100 at the end of the year. The number of divorced spouse annuities being 

paid rose nearly 200, to 5,100. Spouse and divorced spouse annuities together increased 

by almost 1,000, totaling 146,900 at year-end. About 113,200 monthly survivor benefits 

were being paid at the end of fiscal year 2017, a decrease of 3,600 from the previous year. 

Approximately 1,700 partition payments to spouses and divorced spouses where the employee 

Amount 

(in millions)

 Fiscal year Fiscal year Percent

 Type of benefit 2017 2016 change

Retirement benefits

Employee annuities

Age1 $7,489.8 $7,309.2 +2.5

Disability 1,015.4 1,106.2 −8.2

Supplemental2 61.2 61.6 −0.6

Spouse and divorced

spouse annuities 1,775.0 1,725.5 +2.9

 Total 10,341.4 10,202.4 +1.4

Survivor benefits

Annuities 2,119.5 2,136.5 −0.8

Lump-sum benefits 2.4 2.7 −12.4

 Total 2,121.9 2,139.2 −0.8

Partition payments3 6.2 5.4 +14.8

 Grand total $12,469.5 $12,347.0 +1.0

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

time the annuity converts to an age and service annuity. FY 2017 and FY 2016 

include $1,291.4 million and $1,227.7 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 2018 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 

2017, an increase of nearly 200 from the prior year.

Retirement

Regular employee annuities

Awards of regular employee annuities numbered 10,700 in fiscal year 2017, some 1,200 

less than in fiscal year 2016. 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 2017 Number Percent amount service ment

Age

Beginning at full

retirement age or over 1,800 17 $2,550 21.3 67.5

Unreduced, beginning 

at age 60 to under full

retirement age 4,900 45 4,049 37.2 61.0

Reduced, beginning at

age 62 to under full

retirement age 2,400 23 1,845 15.9 63.3

Disability 1,600 15 2,723 20.9 55.4

 Total 10,700 100 $3,095 27.3 61.8

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 1,600 disability awards, 

700 averaging $2,029 per month were 

for total disability and 900 averaging 

$3,259 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 two-thirds 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, 2012, and 2017 (thousands)

Amount of benefits paid,

fiscal years 2012 and 2017 (millions)

1

Includes $60.8 million in fiscal year 2012 and $61.2 million 

in fiscal year 2017 for supplemental annuities.

2

Includes divorced spouses.

1

Without supplemental annuity.

2

Includes divorced spouses.

Average monthly amount,

September 30, 2012, and 2017

 Employee Spouse Survivor

$7,697

$1,458

$2,172

$8,566

$1,775 $2,122

2

2012

2017

1

 Employee Spouse Aged widow(er)

$2,354

$882

$1,426

$2,669

$1,008

$1,664

1 2

2012

2017

 Employee Spouse

 (includes

 divorced

 spouses)

 Survivor

272

140 134

264

147

113

2012

2017
18 2018 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 2017, nearly 7,400, 

or 69 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 $3,601 per month, 

compared to $1,953 for the 3,300 awards based on deferred retirement. Immediate retirees 

averaged 32 years of railroad service, almost twice the average of 17 years for deferred 

retirees. Of the year’s awards, 53 percent of normal age retirements were immediate. 

While 94 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 76 percent of the year’s disability awards.

The 264,500 retired employees on the rolls as of September 30, 2017, were being paid 

regular monthly annuities averaging $2,669. The table shown here presents data by type of 

annuity for these benefits.

Of the 28,000 disability annuities being paid, 9,600 were for total disability and 18,300 

for occupational disability. The two types of disability annuities averaged $1,938 and 

$3,087, respectively. In fiscal year 2017, payments totaled over $243 million for total 

disability annuities and $772 million for occupational disability annuities.

Approximately 

186,800 employees 

on the rolls at 

the end of fiscal 

year 2017 were 

immediate retirees 

and their regular 

annuities averaged 

$3,082 per month. 

Annuities of the 

77,600 deferred 

retirees averaged 

$1,674. 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 

 Employee annuities Average Percent

in current-payment status monthly immediate

on September 30, 2017 Number Percent amount retirements

Age

Beginning at full

retirement age or over 21,300 8 $2,131 48

Unreduced, beginning 

at age 60 to under full

retirement age 107,400 41 3,487 92

Reduced, beginning at

age 60 to under full

retirement age 61,700 23 1,621 29

Disability converted to

age annuity1 46,200 17 2,401 81

Disability 28,000 11 2,691 80

 Total 264,500 100 $2,669 71

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

and social security benefits to deferred retirees who were dual beneficiaries averaged 

$1,895, while combined benefits to immediate retirees averaged $2,842. 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 2017 averaged 

$2,020 per month. Tier I 

amounts of some 7,100 employees were completely offset by social security benefits. Tier I 

amounts being paid averaged $1,867.

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

being paid at the end of fiscal year 2017 averaged $868. 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 11,300 retirees 

were receiving vested dual benefits averaging $159 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.

Almost 5,200 supplemental annuities were awarded in fiscal year 2017, about 700 

less than in fiscal year 2016. Approximately 4,000 of the awards (78 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 

approximately $41 per month after court-ordered partitions; 81 percent were at the current 

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

 Type of retirement 

 

 Dual benefit status Total Immediate Deferred

Receiving social security benefit

 Number 28,600 9,300 19,400

 Average monthly amount:

 Railroad retirement (regular) $ 928 $1,734 $ 543

 Social security 1,274 1,108 1,353

 Combined benefit 2,202 2,842 1,895

Not receiving social security benefit

 Number 235,900 177,600 58,300

 Average monthly amount $2,880 $3,153 $2,049

Note.--Detail may not add to total due to rounding.
20 2018 Annual Report, U.S. Railroad Retirement Board

railroad pension attributable to employer contributions. During the fiscal year, 1,200 

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

pensions. In a few 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 122,100, or 46 percent, of the retired 

employees on the rolls at the end of the 2017 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 10,800 

in fiscal year 2017, 600 less 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 2017, 

fewer than 50 averaging $836 per month were to spouses of 30-year employees, and over 

2,700 averaging $547 were to spouses of employees with less than 30 years of service.

At the end of fiscal year 2017, nearly 141,800 spouse annuities averaging $1,022 per 

month were being paid. Almost 5,100 divorced spouse annuities averaging $632 per month 

were also being paid. These included some 80, averaging $662, 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 $3,915. This included $2,894 in regular 

and supplemental employee annuities and $1,022 in spouse annuities.
 A Review of Operations 21

Some 56,700, or 39 percent, of the spouses and divorced spouses on the rolls were also 

receiving social security benefits. Combined railroad retirement and social security benefits 

to these annuitants 

averaged $1,558 per 

month, including $399 

in railroad retirement 

benefits and $1,159 in 

social security benefits. 

Railroad retirement 

annuities to the 87,100 

spouses not receiving 

social security benefits 

averaged $1,410, while 

railroad retirement 

annuities to the 3,000 

divorced spouses 

not receiving social 

security benefits 

averaged $842.

Like regular 

employee annuities, 

spouse annuities 

consist of up to three components. The tier I component equals one-half 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 141,800 spouses on the rolls at the end of fiscal year 2017, 94,300 were being 

paid tier I amounts averaging $895 per month. The tier I amounts of 47,500 spouses were 

completely offset by other benefits also due. Spouse tier II amounts averaged $464. Vested 

dual benefits averaging $128 were being paid to fewer than 10 spouses. The 5,100 divorced 

spouses on the rolls at the end of fiscal year 2017 were being paid tier I amounts averaging 

$648 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 

 In current-payment 

 Awarded in status on

 fiscal year 2017 September 30, 2017

 Monthly spouse Average Average

benefits Number amount Number amount

Beginning at full

retirement age or over 1,800 $ 624 17,100 $ 582

With minor or disabled 

child in care 300 1,273 1,700 1,308

Unreduced, beginning

at age 60 to under full

retirement age 5,200 1,493 77,500 1,410

Reduced rate 2,700 548 45,500 514

Total 10,100 1,073 141,800 1,022

Divorced spouse

annuities 700 669 5,100 632

Grand total 10,800 $1,047 146,900 $1,008

Note.--Detail may not add to total due to rounding.
22 2018 Annual Report, U.S. Railroad Retirement Board

credits for retirement. About $0.3 million was paid in separation/severance lump-sum 

benefits during fiscal year 2017.

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 2017 fiscal year, the RRB paid over 100 dual retirement tax refunds 

averaging $77. 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 6,900 during 

fiscal year 2017, about 200 more than the previous year. Some 113,200 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 

87,800, 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. 

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

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.

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 

nearly 300 annuities 

temporarily paid at 

spouse or divorced 

spouse rates, aged 

widow(er)s’ annuities 

being paid at the end of the 2017 fiscal year included 44,900 which were reduced for age. 

Aged widow(er)s’ tier I amounts being paid averaged $1,318 per month. In nearly 6,700 

cases, the tier I amount was wholly offset by reductions for other benefits. Approximately 

28,500 aged widow(er)s were also receiving social security benefits, and these averaged 

$1,059. Tier II amounts averaged $448. About 100 vested dual benefits, averaging $72, 

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 2017, tier I amounts being 

paid to disabled widow(er)s on the rolls averaged $1,083. (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 $940. Tier II amounts averaged $287, while the less than 50 

vested dual benefits being paid averaged $107.

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 

 In current-payment 

 Awarded in status on

 fiscal year 2017 September 30, 2017

 Monthly survivor Average Average

 benefits Number amount Number amount

 Aged widow(er)s 5,500 $2,113 87,800 $1,664

 Disabled widow(er)s1 100 1,752 3,500 1,326

 Widowed mothers

 (fathers) 100 1,806 600 1,878

 Remarried widow(er)s 100 1,189 3,000 1,071

 Divorced widow(er)s 700 1,209 9,700 1,078

 Children:

 Under age 18 300 1,379 1,600 1,382

 Student * 1,553 100 1,497

 Disabled 100 1,300 6,800 999

 Parents * 844 * 907

 Total 6,900 ... 113,200 ...

 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 2018 Annual Report, U.S. Railroad Retirement Board

beneficiaries. Tier I amounts being paid as of the end of fiscal year 2017 averaged $1,341 

for widowed mothers and fathers and $995 for children. Fewer than 50 mothers/fathers 

and nearly 2,100 children received social security benefits averaging $1,088 and $633, 

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

$574 and $113. 

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. More than 2,500 lump-sum death benefits averaging $933 

were awarded during fiscal year 2017. Approximately 300 benefits were to widow(er)s, 

while some 2,200 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 

2017 fiscal year; they averaged $1,040. 

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 2017, there were nearly 1,700 spouses and divorced spouses 

receiving payments averaging $315 where the employee was deceased or not otherwise 

entitled to an annuity. While all but 4 received a partitioned tier II benefit, only 

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

partitioned supplemental benefit.
 A Review of Operations 25

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. 

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. 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 

26,400 beneficiaries for Medicare during fiscal year 2017. As of the end of the fiscal year, 

about 465,900 persons were enrolled in the Part A plan, and approximately 446,400 

(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 

$850 million in the 2017 fiscal year.

The regular monthly premium for Part B during fiscal year 2017 was $121.80 for 

coverage through December 2016 and $134.00 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 2017, approximately 14,300 Part B premiums and about 11,300 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 2017 about 427,100 annuitants were having their premiums 

withheld. Of the remaining Part B enrollees, nearly 3,000 were paying premiums to the 

RRB, either directly or through an intermediary, and 16,300 had their premiums paid by 

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

The agency is also able 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 2017, 

about 12,300 Part C premiums and approximately 49,300 Part D premiums were deducted 

from benefits paid by the RRB.
26 2018 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 

2017 were less than financing sources by $10.0 million and the net position increased by 

$9.9 million from $214.6 million at the end of fiscal year 2016 to $224.5 million at the end 

of fiscal year 2017. For fiscal year 2017 as compared to fiscal year 2016, total financing 

sources for the railroad unemployment and sickness insurance program increased by 

$12.1 million (11.7 percent) to $115.2 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 2017 2016

Financing Sources:

Employer Payroll Taxes $126.4 $117.2

Interest Income 4.0 2.3

General Appropriations 0.0 0.0

Other (15.2) (16.4) 

 Total Financing Sources 115.2 103.1

Costs:

Benefit Payments:

 Unemployment 47.6 74.9 

 Sickness 56.8 51.8 

Other2 0.8 5.6

 Total Costs 105.2 132.3

Financing Sources over Costs 10.0 (29.2)

Net Position - Beginning of Period 214.6 243.8

Net Position - End of Period2 $224.6 $214.6

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%

$104.4

Financing Sources - Fiscal Year 2017 (In Millions)

GROSS TOTAL $130.4

UNEMPLOYMENT AND SICKNESS 

INSURANCE PROGRAM

1

Less Transfers-Out and carriers’ refunds of $15.2 million.

Costs - Fiscal Year 2017 (In Millions)

TOTAL $104.4

Employer 

Payroll Taxes1 96.9%

$126.4

Interest Income 3.1%

$4.0
28 2018 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 2017, the taxable earnings 

base was the first $1,545 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 2017, 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 2017. Most employers were assessed the minimum 

rate in 2017. New employers in 2017 paid an initial rate of 1.62 percent.

Employer Payroll Taxes

Payroll taxes by employers totaled $126.4 million during fiscal year 2017. This was an 

increase of 7.8 percent or $9.2 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 2017, of which the RRB earned $4.0 million as its pro rata share.

Costs

Total costs for the railroad unemployment and sickness insurance program decreased 

by $27.1 million (20.5 percent) to $105.2 million. 

Benefit Payments

During fiscal year 2017, unemployment insurance benefit payments decreased by 

$27.3 million (36.4 percent) to $47.6 million. Sickness insurance benefit payments 

increased by $5.0 million (9.7 percent) to $56.8 million.
 A Review of Operations 29

BENEFIT OPERATIONS

Net unemployment and sickness benefits totaling nearly $113.7 million were paid 

in the 2016-2017 benefit year, $12.5 million less 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, 6.8 percent for days after September 30, 2015, and 6.9 percent for 

days after September 30, 2016. Beneficiaries numbered 28,500, in comparison to the 

previous year’s total of 31,500. Almost 700 employees received both unemployment and 

sickness benefits during the 2016-2017 benefit year. The number of unemployment benefit 

claimants decreased by 20 percent, while sickness benefit claimants increased by less than 

1 percent. Total net unemployment benefit payments decreased by 25 percent, while net 

sickness benefits increased by 10 percent. The number of employees qualified for benefits 

under the Railroad Unemployment Insurance Act increased 3 percent to 260,700.

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 2016-2017, there were 

10,600 and 13,700 unemployment and sickness benefit waiting period claims, respectively.

Unemployment

Almost 13,200 railroad workers were paid $53.9 million in net unemployment benefits 

during the 2016-2017 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 decreased by approximately 3,200 from the prior year total of 16,400, and the 

benefit amount decreased $17.8 million from the prior year’s total of $71.7 million. The 

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

year 2016-2017, the same as the previous benefit year. 

The mid-month unemployment count in the 2016-2017 benefit year began with a July 

count of 4,100 claimants. The count fluctuated slightly higher until December 2016, when 

it began to rise before peaking at 5,300 in January 2017. The count began to decline in 

February before reaching a low of 2,300 in June 2017. For the 2016-2017 benefit year as 

a whole, the weekly number of claimants averaged 3,800 in comparison to an average 

of 4,800 in the previous benefit year. The overall unemployment benefit claimant rate, 

measured in relation to the number of employees qualified to receive benefits under the 

Railroad Unemployment Insurance Act during a particular time period, fell 22 percent to 

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 2018 Annual Report, U.S. Railroad Retirement Board

Item

 Benefit year 2016-2017 Benefit year 2015-2016

 

 Total

 Unemploy-

 ment1

 

 Sickness

 

 Total

 Unemploy-

 ment1

 

 Sickness

 Applications 36,900 16,800 20,100 43,900 24,100 19,800

 Claims 242,000 108,100 133,800 266,200 137,000 129,200

 Claimants 2 28,500 13,200 16,100 2 31,500 16,400 16,000

 Net amount of benefits3

$113,683,200 $53,859,100 $59,824,100 $126,165,700 $71,655,100 $54,510,600

 Number of payments

 Normal 184,600 83,500 101,100 204,600 106,400 98,100

 Extended 19,800 6,500 13,300 17,500 5,900 11,600

 Total 204,400 90,000 114,400 222,100 112,300 109,700

 Average amount per 

 2-week registration period3

 Normal $599 $596 $601 $594 $593 $596

 Extended 564 566 563 561 564 560

 Total 596 594 597 592 591 592

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 amount for benefit years 2015-2016 and 2016-2017 

each totaled –$0.2 million. 

2 Benefits for both unemployment and sickness were paid to approximately 900 employees in benefit year 2015-2016 and

700 employees in benefit year 2016-2017. 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 9.2% under sequestration for days of unemployment and sickness after February 28, 2013, a 

reduction of 7.2% for days after September 30, 2013, 7.3% for days after September 30, 2014, 6.8% for days after September 

30, 2015, and 6.9% for days after September 30, 2016.

Major unemployment and sickness benefit operations,

benefit years 2016-2017 and 2015-2016

(text continued on page 32)

5.1 per 100 qualified, from the previous year’s 6.5 per 100 qualified, reflecting the slower 

decline in unemployment levels. The median age for all unemployment benefit claimants 

was 39 years, as compared to 38 in the previous benefit year.
 A Review of Operations 31

Unemployment and Sickness Benefit Claimants by Age,

Benefit Year 2016-2017

Claimants under the Railroad Unemployment Insurance Act, 

Benefit Years 2012-2013 through 2016-2017

10,714

9,970

7,568

16,420

13,194

15,841 15,611 15,516 15,963 16,052

2012-2013 2013-2014 2014-2015 2015-2016 2016-2017

Unemployment

Sickness

419

4,173 4,152

2,783

1,565

84 102

1,954

3,787

4,506

5,210

511

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

Unemployment

Sickness
32 2018 Annual Report, U.S. Railroad Retirement Board

Sickness

The number of sickness benefit claimants during the 2016-2017 benefit year was 

16,100, about 100 more than the previous year. The benefit year claimant count increased 

for the second year in a row after hitting the lowest level since sickness benefits began in 

benefit year 1947-1948. Gross sickness benefits of $77.1 million were paid, $3.2 million 

more than in the prior benefit year. Net sickness benefits totaled $59.8 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 $5.3 million in comparison with the 

previous year.

The utilization rate for sickness benefits was 6.2 percent of qualified employees, slightly 

lower than the previous benefit year and the lowest figure since the program’s inception. 

The average duration of sickness was 71 days in benefit year 2016-2017, up from 69 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 (22 percent), 

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

and all ill-defined conditions (7 percent). The median age of all sickness benefit claimants 

was 49 years, the same as the previous benefit year.
 A Review of Operations 33

RAILROAD EMPLOYMENT

The preliminary average monthly railroad employment in fiscal year 2017 fell 3.4 percent to 225,000 from the 233,000 average of the previous fiscal 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 2017, falling to 221,000.

Note.--Numbers for 2016 are preliminary.

Average Railroad Employment

Fiscal Years 2013 through 2017

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 every 

field office. 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 4 

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 4 areas. During fiscal 

year 2017, 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. The timeliness index for retirement applications, survivor 

applications, disability applications and payments only, the processing of which includes 

considerable manual intervention, is 91 percent, whereas the timeliness index for railroad 

unemployment and sickness benefit applications and claims only, a highly automated 

process, is 99.9 percent. Overall performance and processing times during fiscal year 2017 

were the same as in fiscal year 2016 levels. (The composite for 2016 was also 98.9.) The 

RRB also met or exceeded 7 out of 10 of its customer service performance goals for the year 

in its Annual Performance Plan.

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 is to evaluate payment outlays susceptible to improper 

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

administers. The agency completed risk assessments for the Railroad Retirement Act 

(RRA), Railroad Unemployment Insurance Act (RUIA), and Medicare programs in fiscal 

Administrative Developments

The following describes some major activities and issues addressed in 2017 and 2018

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

year 2016. Per OMB guidance, the fiscal year 2019 Annual Performance Plan will be the 

next time risk assessments for these programs have to be completed.

In fiscal year 2017, the agency’s Office of Programs reviewed its RRA and RUIA 

benefit payment programs for fiscal year 2016, as required by OMB Circulars A-123 and 

A-136. (This analysis has been conducted annually since fiscal year 2003.) The RRB’s 

Performance and Accountability Report for fiscal year 2017 (based on fiscal year 2016 data) 

includes the results of that analysis, along with a summary of the root causes of errors and 

projections of future improper payment levels. 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 fiscal year 2017 report was unlike previous agency reports, in that it used 3 

quarters of data from the RRB’s legacy Program Accounts Receivable system, and 1 quarter 

of data from its newest accounting system, the Financial Management Integrated System, 

to compile the improper payment analysis for the RRA and RUIA programs.

In addition, at OMB’s request, the agency submitted an improper payment reduction 

outlook, a breakdown of the root causes, amounts, and percentages of fiscal year 2016 RRA 

and RUIA improper payments, and overpayments recaptured outside payment-recapture 

audits, as well as the dollar amount of confirmed fraud by the Office of Inspector General. 

Information from this request was included on PaymentAccuracy.gov, an OMB-designed 

website which features improper-payment rates for all government agencies.

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 to minimize improper payments and enhance recovery efforts.

Disability Benefits

The RRB undertook several initiatives to improve the accuracy and timeliness of 

disability claims processing.

• In May 2017, “The Work Number” was implemented for use by initial disability 

claims examiners. This system allows agency employees to obtain income 

verification reports that contain basic employment information about an 

individual’s job title, employment status, and income. Such information can be 

extremely useful in adjudicating disability benefit applications. In August 2017, 

this system was expanded to include post examiners conducting continuing 

disability reviews for existing annuitants.

• The agency developed a new form, the Occupational Disability Certification 

(RL-8A), which is released to select disability annuitants to help determine 
36 2018 Annual Report, U.S. Railroad Retirement Board

whether they continue to be disabled. The form was first released to 152 disability 

annuitants in August 2017.

• While all initial disability claim types (employee, widow, and children) have been 

converted from paper files to digital images, in 2018 the RRB plans to add more 

disability workloads to this project, such as continuing disability reviews. Coupled 

with the reengineering of other business processes, this will enhance migration 

from a paper-based system to an electronic environment for all disability benefit 

processes.

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 fiscal year 2017, the agency added an electronic version of Form RL-5a, 

Notice of Annuity Award, and Form G73a.1, Notice of Death of Railroad Retirement 

Annuitant, to the ERS. Employers can now receive both notices electronically and 

on-demand via the internet. As additional employers enroll in this service, this will reduce 

manual processing, as well as printing and mailing costs.

Cost-of-Living Adjustment

In December 2017, tier I benefits increased by 2 percent while tier II benefits rose by 

0.7 percent, due to a cost-of-living adjustment (COLA). The increases were effective with 

the January 2018 payments, with Federal income taxes calculated using new tax tables. 

The increase was paid to 528,376 annuitants, and was also included in RRB-paid social 

security benefits to 118,324 beneficiaries. The total amount of the COLA was just over 

$14.4 million in railroad retirement annuities and almost $2.8 million in social security 

benefits. The standard Medicare Part B premium for 2017 stayed the same as the previous 

year at $134 per month, with increased premiums for some high-income beneficiaries.

Medicare Payments and Premiums

The Medicare Payment System went into production in January 2017. This system 

was developed to allow Medicare claims examiners to create award activities for refunding 

Medicare premiums and paying Medicare Part A hospital insurance benefits for services 

furnished in Canada. In addition, a new Medicare interface with the agency’s Overpayment 

Recovery Correspondence System went into production in April 2017. This system can now 

be used by Medicare examiners to review overpayments and prepare letters to beneficiaries 

that are more informative and timely.
Administrative Developments 37

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.

In June 2017, the Board named Ana M. Kocur as its General Counsel. At the time of 

her appointment, she was Deputy Director of the Executive Office for Immigration Review 

at the Department of Justice in Washington, D.C. In March 2018, the Board named 

Shawna R. Weekley as its Chief Financial Officer and Pamela M. Tate as its Director of 

Equal Opportunity. Before joining the RRB’s Bureau of Fiscal Operations in January 2017, 

Ms. Weekley worked for the Department of Energy, most recently as Director of Accounting 

and Finance at its Chicago Office of Science, based at Argonne National Laboratory. Ms. 

Tate has been an RRB employee since 1985, starting out as a claims examiner. Since 2008, 

she has been an equal employment specialist at the agency.

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, 

about 30 percent of the agency’s current workforce will be eligible for retirement by 

the end of fiscal year 2019. 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 currently being developed to identify potential areas of skills and 

knowledge gaps and is planned to be implemented within the Learning Management 

System (LMS). This methodology will incorporate job analysis of agency positions to 

identify critical competencies and identify skill gaps within our current employee base.

The RRB continues to work on improving its assessment and hiring processes. With 

assistance from the Office of Personnel Management (OPM), the agency has developed 

online assessment tools for entry-level claims examiners and claims representative 

positions. Because of budget constraints, external hiring slowed considerably in 2017, and 

the agency was unable to hire any external candidates for retirement, survivor, Medicare, 

and sickness/unemployment claims examiner or claims representative positions. The RRB 

does expect to fill several of these positions in fiscal year 2018, along with some external 

hires in actuarial and information technology positions.

Despite the lack of external hiring in 2017, several training classes for new claims 

examiners were initiated or completed, including initial and post examiners in the areas 

of disability benefits, retirement benefits, survivor benefits, unemployment and sickness 
38 2018 Annual Report, U.S. Railroad Retirement Board

benefits, and Medicare. The RRB projects a continuing need for additional initial and post 

training classes in the RRA and RUIA program areas into fiscal year 2019.

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 knowledge, skills and abilities needed to achieve the 

agency’s strategic goals. In 2017, they hosted the first ever employee fair for headquarters 

employees. It was a 2-day event that included workshops and informational booths for 

different RRB-provided services and topics. In addition, the training team conducted 

workshops on individual development plans throughout the year. They also hosted 

and coordinated a 3-day program for new supervisors; created and published online 

courseware to the agency’s Learning Management System (LMS) to satisfy mandatory 

Federal training requirements, as well as online training for new policies and procedures 

implemented during the year; assisted in developing LMS training curriculums for new 

claims representatives and claims examiners; and, coordinated the delivery of more than 

25 in-person, instructor-led training sessions on 19 technical and 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 employees in the agency’s 

Bureau of Field Service and Office of Programs. In 2017, more than 989 employees and 

contractors completed 832 different online and instructor-led training courses managed 

through the LMS, for a total of 19,020 course completions.

In 2017, the Office of Programs also completed a 9-month training program for user 

analysts in its Policy and Systems division. These employees develop procedures and 

testing, and update systems for examiner use in handling benefit applications and claims. 

Enhancing analyst skills in these areas will allow the agency to improve the performance of 

claims examiners in adjudicating, processing and paying benefits.

Employee Survey

The Federal Employee Viewpoint Survey, developed by OPM, is a tool that measures 

employees’ perceptions of whether, and to what extent, conditions characterizing successful 

organizations are present in their agencies. Similar to prior years, the responses by RRB 

employees to the 2017 survey were positive. Of particular note, of the 870 employees 

invited to complete the survey, 449 did so, for a response rate of 52 percent, an increase 

of 14 percent over 2016. Scoring for 55 survey items increased from 2016, while only 11 

items had lower scores. Additionally, 41 survey items were identified as strengths (65 

percent or more positive) while only 1 survey item was identified as a challenge (35 percent 

or more negative). The agency’s “engagement index” score met OPM’s goal for 2017 of 69 
Administrative Developments 39

percent, and met or exceeded the governmentwide score in all areas (overall, leaders lead, 

supervisors, and intrinsic work experience).

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 93 percent of the RRB respondents think the work they do is important, 

about 86 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. Almost 80 

percent like the kind of work they do, and 84 percent feel they are held accountable for 

achieving results. Also, 83 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 37 percent agree that steps are taken to deal with poor performers, while 

39 percent feel creativity and innovation are rewarded. Almost 35 percent feel they do not 

have sufficient resources to get their jobs done, with this item showing the largest decline 

from the previous survey (3 percentage points). As a result, this is an area the agency 

intends to concentrate on improving in the coming years.

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 30th awards ceremony was held in July 2017 at Kasbeer Hall on Loyola 

University Chicago’s nearby Water Tower campus. The program honored 11 individual 

nominations and 4 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 2017, the RRB 

had 1 individual nomination and 1 team nomination. Susan Leszkowicz, a supervisory 

auditor in the agency’s Office of Inspector General, was named the winner in the career 

achievement category.

Information Technology

Website Redesign

In 2017, the RRB launched its extensively improved public-facing website, 

RRB.gov. Throughout the revision process, the project team focused on creating a more 

approachable, better organized website accessible from any device. The site was re-built 

from scratch using innovative technology known as Drupal, an open source web content 

management system popular across other digital government platforms. Drupal’s key 
40 2018 Annual Report, U.S. Railroad Retirement Board

features enhance user experience for web content managers and site visitors alike that 

align with Federal priorities in efficiency, transparency, and accessibility, including:

• Efficient Content Management and Rapid Delivery – Content providers can 

now control, edit, and publish their own material without relying on technical 

programming staff. With this more direct workflow, content is managed and 

delivered instantly.

• Flexible Usability and Mobile-Friendly – RRB.gov is now configured for 

responsive compatibility, ehancing convenience for browsing the site from any 

device regardless of screen size.

• Improved Accessibility – The new framework enables staff to adopt, implement, 

and maintain accessibility standards required by law for website visitors with 

disabilities.

• Enriched User Experience – A clean, consistent presentation offers quick and 

easy access to essential information. The main menu is now streamlined and 

equipped with dropdown subcategories prompting intuitive navigation.

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 

2017, the RRB’s information security team administered statutorily required securityawareness training for agency employees and contractors. Staff members identified 

as having more significant information security responsibilities participated in 

enhanced role-based security training. In addition, the RRB’s privacy team prepared 

and coordinated training for all employees and necessary contractors on safeguarding 

controlled unclassified information, Federal tax information and Privacy Act information. 

Information Resources Management

In fiscal year 2017, the RRB coordinated and secured computer matching agreements 

with 18 states. The agency also secured OMB approval of 24 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.

Digital Savings

The RRB worked internally to develop a central repository for the agency’s procedure 

manuals using Microsoft’s SharePoint platform. Previously, the RRB paid annual 

maintenance and licensing fees to a contractor for this capability, resulting in savings of 

approximately $40,000. Also, the RRB revised its RUIA processes to cease producing paper 
41 2018 Annual Report, U.S. Railroad Retirement Board Administrative Developments 41

unemployment and sickness claims for online filers. This change resulted in a 52 percent 

reduction in printed claim volume, saving the agency about $32,000.

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?”

Recruitment

The RRB is committed to maintaining a diverse workforce. The OEO worked 

cooperatively with the Bureau of Human Resources in 2017 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, and the 
42 2018 Annual Report, U.S. Railroad Retirement Board

attendees are provided with comprehensive informational materials. Now in its 61st year, 

in 2017 a total of 1,078 railroad labor union officials attended 29 informational conferences 

held in cities throughout the United States. The Labor Member’s Office also sponsors a 

program of pre-retirement seminars designed for railroad employees and their spouses 

nearing retirement. Thirteen seminars were held during 2017, with 582 individuals in 

attendance. In addition, railroad labor unions frequently request that RRB representatives 

speak before their meetings, seminars and conventions. In 2017, the Labor Member’s Office 

was represented at 14 union gatherings attended by 1,751 railroad labor officials. Field 

personnel addressed 41 local union meetings with 1,334 members in attendance.

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 2017, the Management 

Member’s Office conducted 5 seminars/presentations for 260 railroad officials, as well as 

benefit update presentations and pre-retirement counseling seminars attended by railroad 

employees and their spouses. In August 2017, the Office of the Management Member 

hosted 19 representatives of several Class I employers, which include the largest railroads, 

for an informational session at RRB headquarters. The meeting covered updates on agency 

initiatives regarding the disability program, issues related to electronic payments, and 

changes to online reporting forms and systems, including development of a new online 

benefit application in conjunction with the governmentwide Login.Gov effort.

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 RRB.gov/oig. 

Office of Audit

During fiscal year 2017, the Office of Audit published 11 reports, including mandated 

audits and assessments such as the annual information security audit, the annual 

Improper Payments Elimination and Recovery Acts of 2010 and 2012 compliance audit, and 

the annual financial statement audit. Other issued audits focused on the following topics: 

compliance with Federal records management directives; the RRB’s program evaluation 

process; and the RRB’s compliance with Federal travel regulations. In total, the Office of 

Audit issued 110 recommendations to agency management and identified $19 million in 

questioned costs. 

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; management of railroad Medicare; 
43 2018 Annual Report, U.S. Railroad Retirement Board Administrative Developments 43

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, 2017, the Office of Investigations’ caseload totaled 290 matters, 

which represents more than $552.8 million in potential fraud losses.1

 During fiscal year 

2017, the office secured 3 arrests, 29 indictments and/or informations, 39 convictions, 11 

civil judgments, and more than $149 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

45

Court Cases

One petition for review was filed during the year, and 5 cases were ruled upon 

by several circuits of the U.S. Courts of Appeal. At the conclusion of fiscal year 

2017, there were no cases pending decisions with any circuit of the U.S. Courts of Appeal. 

Legal Opinions

The RRB’s Office of General Counsel issued 59 formal legal opinions in fiscal year 2017. 

The following are of special interest.

Independent Partition Awards L-2017-03

This opinion clarifies procedures for payment of a partition award to a former spouse 

when the railroad employee is not receiving an annuity. The opinion provides details for 

calculating partitions in the event of employee death and when the employee becomes 

re-entitled to an annuity at a later date. The opinion also explains that in the event of 

employee death, a court order entered prior to employee death, but served on the RRB after 

death, may still be honored for partition payment.

Railroad Compensation as Excess Earnings for Work Deductions L-2017-04

This opinion addresses Section 2(f)(1) of the Railroad Retirement Act (RRA), which 

provides for deductions to the tier I portion of an annuity on account of work pursuant to 

Section 203 of the Social Security Act as if tier I were a benefit under the Social Security 

Act. The opinion determines that railroad earnings should be treated the same as social 

security wages for work deduction and annual earnings test purposes. The opinion also 

addresses month-by-month earnings and monthly exempt amounts and details rules for 

grace-year earnings.

Church Donations L-2017-16

Pursuant to the RRA, an overpayment may be waived if the individual is found 

without fault in causing the overpayment and if recovery would deprive the individual of 

ordinary and necessary living expenses or be against equity or good conscience. The RRB’s 

regulations do not specifically state that donations to a church are considered as ordinary 

and necessary living expenses, but the examples set forth in section 255.12(d) of the RRB’s 

Five rulings on cases involving the RRB were issued by the various U.S. Courts

of Appeal during fiscal year 2017, and 59 legal opinions were issued

 by the RRB’S Office of General Counsel.
regulations and in relevant sections of the agency’s Retirement Claims Manual are not 

exclusive. Donations to a church or other religious entity can be interpreted to fall within 

section 255.12(d)(4) of the RRB’s regulations based on the Social Security Administration’s 

Program Operations Manual (POMS GN 02250.120), which specifically refers to such a 

donation as an ordinary and necessary living expense. However, the governing provisions 

of the Internal Revenue Code should be followed when allowing the maximum amount 

of the donation that can be considered as an expense that can be deducted from an 

individual’s adjusted gross income. 

State Payments for In-Home Supportive Services L-2017-28

The recipient of a disability annuity was receiving payments under a Medicaid waiver 

to care for a disabled adult child. Such payments qualify as earnings for purposes of work 

deductions from a disability annuity. The fact that these payments are not taxable under 

the Internal Revenue Code or the Federal Insurance Contributions Act (social security)

does not require a different result. Under the variant of the Wisconsin waiver program at 

issue, the employment relationship is between the caregiver and the waiver recipient, and 

earnings to the caregiver should be evaluated as regular employment. 

Appropriations – Seal L-2017-46

This opinion provides guidance on the unofficial use of the RRB seal. The opinion 

describes steps that must be taken to obtain agency approval for use of the seal. It also 

describes the copyright exception that prevents the agency seal from being considered part 

of the public domain.

Appeals

Any claimant for benefits under the RRA or the Railroad Unemployment Insurance 

Act (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 three-member Board within a prescribed period 

of time.

RRA

 During fiscal year 2017, 292 appeals were filed with the Bureau of Hearings 

and Appeals under the RRA, and the Bureau rendered decisions in 279 appeals. The 

reconsideration decision was sustained in 153 cases. In 126 appeals the decision was 

favorable to the claimant in whole or in part.

Forty-eight appeals were filed with the Board in fiscal year 2017, and the Board issued 

89 decisions. In 60 cases the previous ruling of the hearings officer was affirmed, in 5 cases 

the decision was fully favorable to the appellant, and in 6 cases the decision was partially 

favorable. The Board remanded 8 cases: 4 to the Bureau of Hearings and Appeals, 3 to the 

Office of Programs, and 1 to the Debt Recovery Division. Ten appeals were dismissed. At 

the end of the year, 113 appeals were pending before the Board.

46 2018 Annual Report, U.S. Railroad Retirement Board 
Legal Rulings 47

RUIA

 During fiscal year 2017, 54 appeals were filed with the Bureau of Hearings and 

Appeals under the RUIA, and the Bureau rendered decisions in 56 appeals. The 

reconsideration decision was sustained in 40 cases. In 16 appeals the decision was 

favorable to the claimant in whole or in part.

Seven appeals were filed with the Board in fiscal year 2017. The Board rendered 

decisions in 8 appeals affirming the decision of the hearings officer, and in 3 appeals the 

decision was favorable to the appellant. At the end of the year, 7 appeals were pending 

before the Board.
STATISTICAL

TABLES
 

StatisticalTables 49

Total1 Retirement2 Survivor2 Unemployment3, 4 Sickness4

BENEFICIARIES (in thousands)2008....................................................... 623 433 174 11 192009....................................................... 626 430 167 24 182010....................................................... 617 428 161 22 182011....................................................... 603 429 156 11 182012....................................................... 595 429 150 10 172013....................................................... 592 429 146 11 162014....................................................... 585 428 141 10 162015....................................................... 581 428 136 9 162016....................................................... 583 428 131 17 172017....................................................... 574 427 127 12 16BENEFIT PAYMENTS (in millions)2008....................................................... $10,115.4 $7,877.0 $2,158.1 $35.1 $44.92009....................................................... 10,663.8 8,311.0 2,192.0 111.7 48.12010....................................................... 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 55.72017....................................................... 12,574.9 10,341.4 2,121.9 46.6 58.81 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, 6.8% for  days after September 30, 2015, and 6.9% for days after September 30, 2016.

Table 1.--Beneficiaries and benefits paid under the Railroad Retirement Act

Fiscal year

and the Railroad Unemployment Insurance Act, by fiscal year, 2008-2017, cash basis

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 2017, 7,000 individuals received both retirement and survivor benefits, 800 employees received both unemployment and sickness benefits, and 1,800 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.
Item 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

RAILROAD RETIREMENT ACCOUNTReceipts

Tax transfers 1..................................................................... $2,636.5 $2,501.2 $2,599.0 $2,712.7 $2,659.8 $3,140.2 $3,392.2 $3,760.8 $3,586.7 $3,562.9Interest and profit on investments 2....................................... 12.9 12.0 11.0 12.3 11.4 9.0 14.0 17.2 16.8 16.4Transfers from the National RR Investment Trust 3.................. 1,298.0 1,553.0 1,989.0 1,744.0 2,026.0 1,581.0 1,429.0 1,191.0 1,410.0 1,821.0Transfers from the SSEB Account 3....................................... 147.0 ........ 81.0 255.0 19.0 171.0 93.0 129.0 ........ (296.0)Loan repayments from RUI Account 4..................................... ........ ........ ........ 48.4 ........ ........ ........ ........ ........ ........ Loan repayments from DBP Account 4..................................... ........ ........ ........ ........ ........ ........ 4.5 ........ ........ ........ 

Expenditures

Benefit payments 5............................................................... $4,121.8 $4,326.9 $4,474.4 $4,600.3 $4,775.0 $4,906.2 $5,044.0 $5,106.8 $5,229.0 $5,321.4Financial Interchange adjustment 6....................................... (100.0) (104.6) (13.1) (88.5) (141.9) (166.6) (164.0) (162.3) (146.5) ........ Net transfers to administration............................................. 58.4 63.4 68.7 73.6 69.6 70.2 69.3 72.1 72.3 76.7Loans to RUI Account......................................................... ........ ........ 46.5 ........ ........ ........ ........ ........ ........ ........ Loans to DBP Account 7...................................................... ........ ........ ........ ........ ........ ........ 4.5 ........ ........ ........ 

Balance at end of period 8............................................................ $632.0 $418.2 $519.0 $706.5 $720.2 $811.7 $791.8 $877.3 $739.6 $446.7SOCIAL SECURITY EQUIVALENT BENEFIT ACCOUNT 9Receipts

Tax transfers 1..................................................................... $2,649.3 $2,528.9 $2,514.9 $2,675.3 $2,878.5 $2,954.1 $3,163.1 $3,389.3 $3,097.5 $3,113.8Interest and profit on investments 2....................................... 19.9 19.0 18.9 21.9 20.1 22.4 21.9 24.3 18.6 14.9Transfers under financial interchange 10................................. 4,049.9 4,137.3 4,391.6 4,574.3 4,651.0 4,499.0 4,700.8 4,676.6 4,662.7 4,522.5Advances against financial interchange 11.............................. 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 4,095.4

Expenditures

Benefit payments................................................................ $5,835.8 $6,107.6 $6,243.7 $6,291.1 $6,506.7 $6,686.9 $6,815.2 $7,035.4 $7,090.4 $7,124.5Financial Interchange adjustment 6....................................... 100.0 104.6 13.1 88.5 141.9 166.6 164.0 162.3 146.5 ........ Net transfers to administration............................................. 38.5 32.5 33.6 29.6 31.4 30.1 32.3 32.9 30.0 30.5Transfers under financial interchange 10................................. 525.7 524.3 535.1 477.2 510.9 576.6 611.6 594.7 656.8 637.4Repayment of advances against financial interchange 4............ 3,410.8 3,564.8 3,837.6 3,946.6 3,946.3 3,863.1 4,041.9 3,982.7 3,940.1 4,054.5Transfers to the National RR Investment Trust/RR Account 3... 147.0 ........ 81.0 255.0 19.0 171.0 93.0 129.0 ........ (296.0)

Balance at end of period............................................................ $791.2 $803.8 $804.0 $807.9 $939.8 $863.9 $877.8 $880.8 $721.9 $917.6

See footnotes at end of table.

Table 2.--Status of the Railroad Retirement Act accounts and trust funds, by fiscal year, 2008-2017 (in millions), cash basis

Fiscal Year

50 2018 Annual Report, U.S. Railroad Retirement Board
 

StatisticalTables 51

Item 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

NATIONAL RAILROAD RETIREMENT INVESTMENT TRUST 12Cash and investment balance at end of period 13........................... $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 $26,389.6DUAL BENEFITS PAYMENTS ACCOUNT 14Dual benefit transfers 15............................................................... $79.0 $72.0 $64.0 $56.9 $50.9 $44.9 $39.0 $34.0 $29.0 $25.0Loans from Railroad Retirement Account 7.................................... ........ ........ ........ ........ ........ ........ 4.5 ........ ........ ........ Benefit payments........................................................................ 77.7 69.5 62.1 55.2 48.6 42.6 37.2 31.9 27.5 23.6Repayment of loans from Railroad Retirement Account 4............... ........ ........ ........ ........ ........ ........ 4.5 ........ ........ ........ Balance at end of period 8............................................................ $1.3 $2.5 $1.9 $1.7 $2.3 $2.3 $1.8 $2.1 $1.5 $1.4

Table 2.--Status of the Railroad Retirement Act accounts and trust funds, by fiscal year, 2008-2017 (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 InsuranceReauthorization, 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 2011-2012occurred in June 2015. In fiscal year 2012, Social Security Equivalent Benefit Account includes a 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 (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. In fiscal year 2017 the Railroad RetirementAccount transferred funds to the SSEB Account to pay benefits.

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. This adjustment was

discontinued in fiscal year 2017.

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 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 DualBenefits 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.
52 2018 Annual Report, U.S. Railroad Retirement Board

Table 3.--Status of the Railroad Unemployment Insurance Account, by fiscal year, 2013-2017 (in thousands), cash basis

Fiscal year

 Item 2013 2014 2015 2016 2017

RECEIPTS

 Taxes............................................................... $84,679 $6,248 $46,672 $90,241 $100,030 Interest............................................................ 5,686 4,415 3,165 2,514 1,945

 Transfer from Administration fund

 under sec. 11(d) of the RUI Act........................ 10,706 12,257 11,339 13,375 12,357 Undistributed recoveries of benefit payments1...... (110) (271) 368 2,458 (2,866) Total............................................................ $100,961 $22,649 $61,544 $108,588 $111,466

EXPENDITURES

 Benefit payments2, 3.......................................... $83,691 $83,823 $83,501 $133,492 $105,614 Funding for Office of Inspector General............... 941 1,037 1,053 1,080 1,260 Total............................................................ $84,633 $84,860 $84,554 $134,572 $106,875Cash balance end of period................................. $180,223 $118,012 $95,002 $69,019 $73,610

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 2013: $6,982,000, FY 2014: $619,000, FY 2015: -$308,000, FY 2016: -$154,000, and FY 2017: -$229,000.3 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, 6.8% for days after September 30, 2015, and 6.9% for days after September 30, 2016.
 

StatisticalTables 53

Table 4.--Status of the RUIA Administration Fund, by fiscal year, 2008-2017 (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

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 

2017...................................... 26,551 14,842 12,357 11,483 

1 Expenditures for each year included encumbrances as of end of year. Fiscal years 2008-2009 and 2011-2017 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.
54 2018 Annual Report, U.S. Railroad Retirement Board 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 YEAR 2008 ............................ 686,636 191,146 34,401 49,648 120,824 136,332 124,089 4,450 832 10,692 4,552 9,552 2009 ............................ 680,534 190,302 34,688 49,116 120,778 136,467 119,459 4,323 814 10,417 4,361 9,520 2010 ............................ 676,653 190,236 35,557 47,960 121,166 137,112 114,929 4,251 776 10,168 4,161 9,595 2011 ............................ 672,484 190,100 36,259 46,850 121,422 138,253 110,372 4,136 745 9,881 4,003 9,598 2012 ............................ 668,957 189,909 37,370 45,066 121,614 139,741 106,268 4,081 739 9,687 3,824 9,660 2013 ............................ 664,055 189,569 39,506 41,745 121,530 140,894 102,186 3,965 703 9,463 3,666 9,710 2014 ............................ 661,069 190,224 41,554 37,891 122,086 142,626 98,435 3,868 688 9,164 3,506 9,747 2015 ............................ 656,847 190,114 43,141 34,514 123,037 143,920 94,279 3,741 665 8,978 3,344 9,704 2016 ............................ 654,127 190,835 44,744 31,308 122,966 145,891 90,919 3,660 652 8,695 3,187 9,709 2017 ............................ 648,277 190,301 46,180 27,990 122,050 146,850 87,817 3,528 623 8,478 3,037 9,708 AVERAGE AMOUNT 2008 ............................ ......... $1,982 $1,787 $2,267 $42 $742 $1,222 $1,025 $1,529 $879 $816 $804

2009 ............................ ......... 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 1,0552017 ............................ ......... 2,731 2,401 2,691 42 1,008 1,664 1,326 1,878 1,078 1,071 1,078

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, 2017, there were 20 parents' annuities in current-payment status averaging $907 and 1,695 partition payments averaging $315.

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. 

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, 2008-2017

Fiscal year
 

StatisticalTables 55

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 AWARDED2008.......................... 38,591 9,753 3,402 7,090 10,127 6,511 166 143 515 188 6932009.......................... 39,317 10,310 3,213 7,015 10,919 6,283 181 142 463 166 6222010.......................... 40,191 10,712 3,161 7,319 11,256 6,163 189 99 429 157 7022011.......................... 39,647 10,542 3,086 7,087 11,301 6,053 173 110 417 158 7182012.......................... 38,649 10,054 2,858 6,778 11,479 5,828 181 115 454 164 7342013.......................... 38,094 10,211 2,324 6,502 11,444 5,995 164 111 456 146 7392014.......................... 37,294 10,210 1,800 6,673 11,495 5,582 133 111 398 144 74520153........................ 36,316 10,059 1,686 6,194 11,300 5,546 120 99 462 151 6962016......................... 35,950 10,236 1,682 5,910 11,373 5,319 123 94 380 116 7152017......................... 33,540 9,121 1,562 5,178 10,758 5,484 86 86 390 127 746Cumulative 1937-2017 5,272,471 1,532,634 528,721 527,967 1,233,265 1,056,924 19,134 85,598 239,574 16,220 28,880AVERAGE AMOUNT2008......................... ........ $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 1,1742017......................... ........ 3,159 2,723 41 1,047 2,113 1,752 1,806 1,368 1,189 1,209

Table 6.--Number and average amount of retirement and survivor annuities awarded during year,

Fiscal year

by type of annuitant and fiscal year, 2008-2017

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 2017 total includes 2 annuities to parents averaging $844. Cumulative total includes 3,554 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. 
56 2018 Annual Report, U.S. Railroad Retirement Board

Total1 Retirement benefits2 Survivor benefits

 Monthly Monthly Monthly

State3 Number amount Number amount Number amount

Alabama........................................................................... 11,800 $18,904 9,700 $15,543 2,100 $3,358Alaska.............................................................................. 200 292 200 238 (4) 53Arizona............................................................................. 11,900 18,761 9,800 15,553 2,000 3,191Arkansas......................................................................... 12,400 19,661 10,400 16,664 1,900 2,984California......................................................................... 32,000 48,760 26,100 40,172 5,800 8,564Colorado........................................................................... 10,400 17,313 8,900 14,898 1,500 2,409Connecticut........................................................................ 2,900 5,516 2,300 4,637 600 878Delaware.......................................................................... 2,900 4,898 2,500 4,284 400 613Washington DC................................................................... 400 623 300 532 100 91Florida.............................................................................. 36,200 57,896 30,400 49,378 5,800 8,491Georgia............................................................................ 21,100 34,219 17,800 29,035 3,300 5,177Hawaii............................................................................... 200 264 200 216 (4) 47Idaho................................................................................ 5,700 9,256 4,800 7,752 900 1,496Illinois............................................................................... 39,900 62,296 32,800 51,529 6,900 10,724Indiana............................................................................. 19,100 30,376 15,600 25,016 3,400 5,340Iowa.................................................................................. 11,300 18,057 9,400 15,065 1,900 2,977Kansas............................................................................. 17,100 28,021 14,400 23,689 2,600 4,319Kentucky........................................................................... 17,600 27,113 14,400 22,071 3,200 5,029Louisiana.......................................................................... 9,100 14,195 7,400 11,667 1,700 2,524Maine................................................................................ 2,900 4,126 2,300 3,255 600 869Maryland........................................................................... 10,300 16,327 8,400 13,636 1,800 2,687Massachusetts.................................................................... 4,600 7,255 3,800 6,064 800 1,190Michigan........................................................................... 16,000 24,907 13,100 20,284 2,900 4,605Minnesota......................................................................... 17,100 26,813 14,100 22,262 3,000 4,530Mississippi......................................................................... 7,000 10,817 5,700 8,753 1,300 2,061Missouri............................................................................ 23,500 37,097 19,700 31,231 3,800 5,844Montana........................................................................... 7,400 11,930 6,300 10,153 1,100 1,769Nebraska.......................................................................... 18,300 32,285 16,100 28,527 2,200 3,741Nevada............................................................................. 4,000 6,293 3,400 5,276 700 1,013New Hampshire.................................................................. 1,000 1,660 900 1,376 200 284New Jersey........................................................................ 10,000 17,619 8,100 14,723 1,900 2,894New Mexico....................................................................... 5,000 7,903 4,100 6,463 900 1,435New York.......................................................................... 23,800 41,186 19,300 34,436 4,500 6,741North Carolina..................................................................... 12,200 18,502 9,900 15,170 2,300 3,325North Dakota...................................................................... 3,900 6,436 3,200 5,289 700 1,142See footnotes at end of table.

Table 7.--Retirement and survivor benefits in current-payment status on September 30, 2017, by class and state (amounts in thousands)
 

StatisticalTables 57

Total1 Retirement benefits2 Survivor benefits

 Monthly Monthly Monthly

State3 Number amount Number amount Number amount

Ohio................................................................................ 29,200 $44,391 23,200 $35,237 5,900 $9,136Oklahoma........................................................................ 6,000 9,446 4,800 7,647 1,100 1,793Oregon............................................................................ 9,400 14,629 7,800 12,068 1,600 2,547Pennsylvania..................................................................... 37,300 59,428 29,600 47,831 7,600 11,580Rhode Island..................................................................... 700 1,198 600 1,015 100 183South Carolina................................................................... 8,400 13,321 7,000 11,198 1,400 2,119South Dakota.................................................................... 2,200 3,547 1,900 3,072 300 473Tennessee....................................................................... 15,100 23,953 12,400 19,935 2,600 4,006Texas.............................................................................. 42,300 69,775 35,200 58,629 7,000 11,082Utah................................................................................. 6,100 10,106 5,100 8,400 1,000 1,699Vermont.......................................................................... 800 1,175 700 902 200 272Virginia............................................................................ 19,400 31,103 15,800 25,698 3,600 5,395Washington...................................................................... 13,200 20,895 10,800 17,224 2,300 3,661West Virginia..................................................................... 9,500 15,018 7,500 11,875 2,000 3,138Wisconsin........................................................................ 11,900 18,200 9,800 15,012 2,000 3,177Wyoming........................................................................ 4,600 8,054 4,000 7,114 500 933Outside United States:Canada............................................................................ 2,100 1,353 1,400 702 700 651Mexico............................................................................ 200 194 100 72 100 122Other............................................................................... 600 724 400 501 200 223 Total5............................................................................. 648,300 $1,034,098 533,400 $858,980 113,200 $174,585

Table 7.--Retirement and survivor benefits in current-payment status on September 30, 2017, by class and state (amounts in thousands) - Continued

1 Includes 1,700 partition payments to spouses and divorced spouses where the employee is deceased or not otherwise entitled to an annuity. 2 Includes 122,000 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, 2017.4 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.
58 2018 Annual Report, U.S. Railroad Retirement Board

Table 8.-- Principal administrative data for the unemployment and sickness benefit programs, 

benefit years 2012-2013 through 2016-2017, cash basis

Item 2012-20131 2013-20141 2014-20151 2015-20161 2016-20171

Qualified employees................................. 243,800 247,600 248,200 254,200 260,700

Maximum daily benefit rate...................... $66 $68 $70 $72 $72

UNEMPLOYMENT BENEFITS

Net amount of benefits paid (thousands) $47,174 $39,867 $30,752 $71,655 $53,859

Payments:2 Number................................................... 83,500 69,700 52,100 112,300 90,000 Average amount per two week claim period......................................... $557 $550 $578 $591 $594Beneficiaries............................................... 10,700 10,000 7,600 16,400 13,200Applications received................................ 14,500 13,100 11,500 24,100 16,800Claims received.......................................... 96,000 82,900 62,500 137,000 108,100

Normal benefit accounts exhausted........ 2,500 2,300 1,900 3,300 3,100

Non-compensable waiting period only3.. (4) (4) (4) (4) (4)

SICKNESS BENEFITS

Net amount of benefits paid (thousands) $43,394 $45,316 $48,428 $54,511 $59,824Payments:2 Number................................................... 102,500 101,100 102,700 109,700 114,400

 Average amount per two week claim period......................................... $571 $555 $572 $592 $597Beneficiaries............................................... 15,800 15,600 15,500 16,000 16,100Applications received................................ 19,400 19,100 19,400 19,800 20,100Claims received.......................................... 121,100 119,900 121,300 129,200 133,800

Normal benefit accounts exhausted........ 2,600 2,600 2,800 3,100 3,400

Non-compensable waiting period only3.. (4) (4) 100 (4) (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, 6.8% for days after September 30, 2015, and 6.9% for days after September 30, 2016.

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 $6,868,000 in 2012-2013, $2,391,000 in 2013-2014, -$327,000 in 2014-2015, -$212,000 in 2015-2016, and -$167,000 in 2016-2017.
Table 9.--All employees, new entrants, employees qualified for RUIA benefits, and related data, by employer, 2016

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 2016 RRA annuity benefits Total benefits Tier I Tier II RUIA

CLASS OF EMPLOYER Class I railroads................................................................ 192,173 154,587 143,892 185,102 3,171 1,727 $13,775,322 $12,942,499 $3,051,533Class II railroads............................................................... 5,178 4,212 3,419 4,841 270 128 335,541 320,075 79,987

Class III railroads and switching & terminal companies................................. 46,158 36,915 31,978 43,498 3,148 1,845 3,300,740 3,006,082 720,701

Car-loan companies......................................................... 2,195 1,803 1,112 2,099 221 165 133,686 127,302 35,120

Miscellaneous employers1....................................... 7,248 5,693 4,486 6,582 642 361 522,568 455,622 108,242

 Total................................................................................ 252,952 203,210 184,887 242,122 7,452 4,226 $18,067,857 $16,851,582 $3,995,583SELECTED EMPLOYERS BNSF Railway Co............................................................. 46,936 38,048 33,553 45,576 163 73 $3,618,670 $3,339,442 $750,364

Canadian National, U.S. Operations Bessemer and Lake Erie Railroad Co........................ 74 58 48 72 1 1 5,007 4,922 1,178

 Chicago Central and Pacific Railroad Co.................. 280 215 206 275 9 8 22,495 20,210 4,465

 Grand Trunk Western Railroad Co............................. 812 627 628 796 16 16 67,020 59,933 12,708

 Illinois Central Railroad Co......................................... 3,937 3,216 2,936 3,834 82 38 315,270 285,520 63,222

 Pittsburgh and Conneaut Dock Co............................ 42 23 20 38 1 1 1,866 1,866 607

 Wisconsin Central Transportation Corp........... 2,110 1,719 1,519 2,071 32 15 171,911 157,882 34,073Canadian Pacific, Soo Line Corporation Dakota, Minnesota & Eastern Railroad Corp............ 678 537 529 648 7 6 46,932 44,405 10,384

 Delaware and Hudson Railway Co. Inc...................... 253 173 185 248 ..... ..... 15,690 15,136 3,888

 Soo Line Railroad Co.................................................. 2,385 1,797 1,745 2,267 47 18 175,483 160,064 36,350

CSX Transportation Inc................................................... 28,487 22,169 22,724 27,160 144 80 2,052,877 1,944,454 445,137

Kansas City Southern Railway Co................................. 3,045 2,523 2,178 2,943 90 54 213,918 203,604 48,949

 Gateway Eastern Railway Co...................................... 10 10 10 10 ..... ..... 634 634 175

 Texas Mexican Railway Co.......................................... 227 191 140 214 2 1 17,750 16,359 3,585National Railroad Passenger Corp. (Amtrak)................ 22,424 17,890 15,493 21,617 1,376 890 1,511,195 1,414,614 357,824

Norfolk Southern Corp.................................................... 30,969 24,660 23,594 29,372 750 290 1,993,552 1,930,419 485,177

Union Pacific Railroad Co............................................... 49,504 40,731 38,384 47,961 451 236 3,545,050 3,343,035 793,447

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.

 Statistical Tables 59

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

RRB.gov