RAI

L

R

OAD

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

RETIREMENT

B

O

A

RD

U.S.A.
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 retirement 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,

email 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

2021 Annual Report

For Fiscal Year Ended September 30, 2020

The Report in Brief 1

A Review of Operations 6

Administrative Developments 34

Legal Rulings 48

Statistical Tables 51

RRB.gov
1

The Report in Brief

Coronavirus Pandemic

The RRB implemented provisions in the Coronavirus Aid, Relief, and Economic

Security (CARES) Act related to special extended and enhanced unemployment 

benefits, and elimination of the waiting period for unemployment and sickness claims. 

In addition, the agency took a variety of steps to protect its employees and customers 

from COVID-19 while continuing to process and pay benefits in a timely manner.

Benefits and Beneficiaries

Benefits paid by the RRB totaled $13.6 billion in the fiscal year ending September 

30, 2020. Retirement and survivor benefits were paid by the RRB to about 528,000 beneficiaries during the fiscal year, of whom 499,000 were on the RRB’s annuity rolls at 

the end of the year. Approximately 41,000 railroad employees were paid unemployment 

and/or sickness insurance benefits. About 1,000 beneficiaries received payments under 

both the Railroad Retirement Act and the Railroad Unemployment Insurance Act.

Retirement and survivor benefit payments of $13.1 billion during fiscal year 2020 

were $145.7 million more than payments in the prior year. Employee and spouse 

annuitants were paid about $11.0 billion, accounting for 84 percent of the total 

payments. Employees received approximately $8.2 billion in age annuities (including 

$1.5 billion to annuitants full retirement age and over originally awarded a disability 

annuity), $800 million in disability annuities, and $57.9 million in supplemental 

The Railroad Retirement Board (RRB) paid benefits totaling approximately

$13.6 billion, net of recoveries and offsetting collections, to about 568,000 beneficiaries in

fiscal year 2020. Financial reports issued in 2021 on the solvency of the railroad 

retirement and railroad unemployment insurance systems were both favorable. Total 

railroad retirement system assets equaled $25.9 billion as of September 30, 2020. 

Note: Statistics are primarily presented on a cash basis of accounting, rather than an 

accrual basis. The primary difference is that the cash basis recognizes revenue and 

expenditures when cash is actually received/paid, while the accrual basis recognizes 

them when earned/incurred. With the exception of income tax transfers and gross 

unemployment and sickness benefits, the information on pages 2, 6-14, and 26-28 is 

presented on an accrual basis.
2 2021 Annual Report, U.S. Railroad Retirement Board

annuities, with spouses and divorced spouses getting about $1.9 billion.1 Survivors 

received $2.1 billion in annuities and about $1.8 million in lump-sum benefits. The number 

of beneficiaries receiving retirement and survivor benefits declined by about 7,000 from 

fiscal year 2019.

Gross unemployment and sickness benefits paid in fiscal year 2020 totaled about

$363.5 million on a cash basis, including additional benefits authorized under the 

CARES Act totaling about $152.9 million. The CARES Act provided for special extended 

and enhanced unemployment benefits, and eliminated the waiting period for both 

unemployment and sickness claims. Net benefits totaled about $353.5 million on 

an accrual basis after adjustment for recovery of benefit payments, including injury 

settlements, some of which were made in prior years. Total gross benefit payments 

increased by nearly $247.4 million from the prior year, while net benefit payments 

increased by approximately $149.9 million. Under the Continued Assistance to Rail 

Workers Act enacted in December 2020, all unemployment and sickness benefits are 

exempt from sequestration until 30 days after the COVID-19 national emergency ends.

Gross unemployment benefits increased by 567 percent compared to the previous year 

due to the COVID-19 pandemic, as well as enactment of the CARES Act in March 2020. 

Gross unemployment benefits totaling $282.3 million were paid to more than 25,500 

claimants. These benefits include $134.8 million in enhanced benefits, $12.9 million 

in special extended unemployment benefits, and $3.5 million in waiting period waiver 

benefits. Net unemployment benefits were $287.0 million, an increase of almost 448 

percent over the prior year. Gross sickness benefits totaling $81.2 million ($59.2 million 

net), including more than $1.7 million in waiting period waiver benefits, were paid to 

almost 17,600 claimants.

Financial Reports

The RRB’s 28th triennial actuarial valuation, submitted to Congress in 2021, was 

generally favorable. While the COVID-19 pandemic reduced railroad employment in the 

second half of 2020, a return to pre-pandemic employment levels should occur over the 

next 3 years. Barring a sudden, unanticipated, large decrease in railroad employment, 

or substantial investment losses, the railroad retirement system will not experience 

cash-flow problems in the next 34 years. Cash-flow problems arise only under the most 

pessimistic employment assumption, and then not until 2055. 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 

additional corrective action is necessary.

The RRB’s 2021 railroad unemployment insurance financial report continued to reflect 

the effect of the pandemic on unemployment claims. Due to short-term cash-flow problems, 

$120 million was borrowed from the Railroad Retirement Account in fiscal years 2020 and 

1 Prior to the 2015 Annual Report, annuitants who were full retirement age and over and originally awarded a disability annuity were included in the disability counts. Effective with the 2015 Annual Report, they 

were 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.
 The Report in Brief 3

2021. The report projects a 3.5 percent surcharge in calendar year 2022, followed by either 

1.5 percent or 2.5 percent in 2023. Under all employment assumptions, no surcharge is 

likely in 2024. Under the pessimistic assumption, additional loans may be necessary in 

fiscal year 2022, though they will be repaid by the end of the fiscal year.

The National Railroad Retirement Investment Trust’s annual management report 

for fiscal year 2020 showed that, as of September 30, 2020, the net asset value of the 

Trust-managed assets was $24.8 billion. This represented a decrease from $25.4 billion in 

the previous year, with a net investment return for the year of 7.29 percent. The ending 

balance also reflects a transfer of $2.3 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 $25.9 billion.

The 2021 railroad retirement and railroad unemployment insurance financial reports 

and the National Railroad Retirement Investment Trust’s 2019 annual management report 

are available by clicking on the Financial & Reporting tab at RRB.gov.

Service Delivery

Customer Service Plan

In fiscal year 2020, customers received benefit services within the timeframes promised 

in the RRB’s Customer Service Plan 99.0 percent of the time.

Service Enhancements

The RRB continued its partnership with login.gov (which provides identify verification 

and secure access to online services across the government), processed a cost-of-living 

adjustment for retirement and survivor benefits, continued to improve its use of document 

imaging in claims adjudication, took steps to further reduce improper payments, and 

successfully trained three classes of claims examiners.

Office of Inspector General

During fiscal year 2020, 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 6 audit reports, 2 management information reports, 1 risk 

assessment, and the Office of Inspector General’s CARES Act oversight plan.

Investigative activities resulted in 4 arrests, 17 indictments and/or informations, 

25 criminal convictions, 14 civil judgments, and more than $14.8 million in financial 

accomplishments. This reflects fraud amounts related to programs administered 

exclusively by the RRB and fraud amounts from other Federal programs, such as Medicare, 

which were included in the disposition resulting from the investigation. Judicial sentences 

associated with joint casework are not necessarily delineated by agency.
4 2021 Annual Report, U.S. Railroad Retirement Board

Selected Data on Benefit Operations

 Fiscal Year Fiscal Year

 Retirement-Survivor

1 2020 2019

Employee age annuities

Number awarded 7,200 7,700

Awarded Age Annuity

 Number being paid at end of period 186,400 188,400

 Average being paid at end of period $2,985 $2,912

Disability converted to age annuity 2

 Number being paid at end of period 49,300 48,500

 Average being paid at end of period $2,625 $2,564

Employee disability annuities

Number of total disability annuities awarded 800 800

Number of occupational disability

 annuities awarded 900 1,000

Number of total disability annuities being paid 

 at end of period 8,100 8,600

Number of occupational disability annuities

 being paid at end of period 11,900 13,900

Average total disability annuity

 being paid at end of period $2,181 $2,106

Average occupational disability annuity

 being paid at end of period $3,345 $3,266

Supplemental employee annuities3

Number awarded 2,400 3,300

Number being paid at end of period 114,400 117,800

Average being paid at end of period $42 $42

Spouse and divorced spouse annuities

Number awarded, total 8,700 9,800

Number being paid to divorced

 spouses at end of period 5,200 5,300

Number being paid at end of period, total 147,400 148,200

Average being paid to divorced spouses

 at end of period $705 $685

Average being paid at end 

 of period, total $1,088 $1,065

Survivor annuities

Number awarded to aged widow(er)s 5,200 5,000

Number awarded, total 6,400 6,500

Number being paid to aged widow(er)s

 at end of period 79,400 82,000

Number being paid at end of period, total 103,200 106,300

Average being paid at end of period to

Aged widow(er)s $1,840 $1,780

Disabled widow(er)s4 $1,437 $1,401

Widowed mothers (fathers) $1,992 $1,942

Remarried widow(er)s $1,192 $1,152

Divorced widow(er)s $1,203 $1,168

Children $1,195 $1,157

Partition payments5

Number being paid at end of period 2,200 2,100

Average being paid at end of period $324 $321

Lump-sum survivor benefits awarded

Number of lump-sum death benefits 1,800 2,100

Average lump-sum death benefit $933 $948

Number of residual payments 6/ 6/

Average residual payment $429 $1,969
 The Report in Brief 5

Selected Data on Benefit Operations (Continued)

 Fiscal Year Fiscal Year

 Employees and Earnings7 2020 2019

Average employment 202,000 221,000

Creditable earnings, Railroad Retirement

 Act (billions):

 Tier I $17.81 $19.46

 Tier II $16.43 $17.85

Creditable earnings, Railroad

 Unemployment Insurance Act (billions) $3.93 $4.19

 Benefit Year Benefit Year

 Unemployment-Sickness8 2019-2020 2018-2019

Qualified employees 234,600 235,400

Unemployment benefits

Gross amount paid (millions) $182.59 ($282.3) 9, 10 $38.0 

	 Beneficiaries	 	 23,100	 (25,500) 10 7,900

Number of payments 226,500 52,300

Normal benefit accounts exhausted 3,400 1,700

	 Average payment per 2-week registration period	 $648 11 $644

Sickness benefits

	 Gross amount paid (millions)	 $80.0	 ($81.2) 9, 10 $73.5

	 Beneficiaries	 	 15,400	 (17,600) 10 14,400

Number of payments 108,100 102,100

Normal benefit accounts exhausted 3,300 3,000

Average payment per 2-week registration period $650 $638

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 in 1960 and later.

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

after court-ordered partitions.

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. A disability annuity ends when the surviving spouse or divorced spouse attains full retirement 

age, at which time the annuity converts to an age and service annuity. 

5 Limited to partition payments to spouses and divorced spouses whee 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 2019 employment, all figures in this section are preliminary.

8 In accordance with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, amounts reflect 

a reduction of 6.6% for days after September 30, 2017, 6.2% for days after September 30, 2018, and 5.9% for days 

after September 30, 2019.

9 Benefits paid include payments under the CARES Act. For benefit year 2019-2020, this includes $85.1 million in 

unemployment benefits. For fiscal year 2020, this includes $151.2 million in unemployment and $1.7 million in sickness benefits.

10 Data in parentheses are for fiscal year (October 1, 2019 – September 30, 2020).

11 Does not include enhanced unemployment benefits under the CARES Act.

NOTE.--Information with respect to unemployment and sickness benefits paid is reported on a gross basis. Prior to 

2020, it was reported on a net basis.
A Review of Operations

6

RAILROAD RETIREMENT AND 

SURVIVOR PROGRAM

As of September 30, 2020, 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 $25.9 billion, 

a decrease of $1.4 billion during the fiscal year. Amounts in the Railroad Retirement 

(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 2020, 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 $13.1 billion in benefit obligations 

(including $121.4 million interest on financial interchange advances and excluding 

$2.0 billion in social security benefits which were reimbursed by the Social Security 

Administration) during fiscal year 2020.

At the end of fiscal year 2020, total railroad retirement system assets equaled $25.9 

billion. During fiscal year 2020, benefit payments totaled approximately $13.6 billion, net of 

recoveries and offsetting collections. Of this amount, benefit payments totaled $13.2 billion 

for the railroad retirement and survivor benefits program, $198.9 million for the railroad 

unemployment and sickness insurance benefits program, and $154.8 million for the CARES 

Act provisions.
 A Review of Operations 7

Financing Sources

Payroll Taxes

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

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

to $5.1 billion, representing 39.2 percent of total financing sources (excluding a loss of 

$450.2 million, mostly due to a change in NRRIT net assets) and $1.0 billion less than in 

fiscal year 2019.

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

security taxes. The 2020 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 2020 was $137,700, 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 $102,300 

and $98,700 in 2020 and 2019, respectively, was 4.9 percent on employees in both years. It 

was 13.1 percent on employers in both 2020 and 2019.

Tier I and tier II taxes for fiscal year 2020 amounted to $2.3 billion and $2.8 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 2020 amounted to $4.9 billion.

(text continued on page 9)
8 2021 Annual Report, U.S. Railroad Retirement Board

Costs - Fiscal Year 2020 (In Millions)

TOTAL: $13,413.5

RETIREMENT AND SURVIVOR PROGRAM

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

Financing Sources - Fiscal Year 2020 (In Millions)

GROSS TOTAL: $12,941.61

1

Excludes −$450.2 million as shown under Other Financing Sources on page 11.

National Railroad 

Retirement 

Investment Trust

Transfers-In 17.6%

$2,280.0

Interest on 

Investments 0.3%

$33.0

Federal Income 

Taxes 5.3%

$686.0

Payroll Taxes 39.2%

$5,068.1

Financial Interchange 37.5%

$4,854.6

General 

Appropriations 0.2%

$19.9

Benefit Payments 97.9%

$13,110.5

Salaries and 

Expenses 1.3%

$171.4

Interest 

Expense 0.8%

$111.9

Other 0.1%

$19.7
 A Review of Operations 9

Interest on Investments and Other Revenue

Interest revenue decreased from $45.9 million in fiscal year 2019 to $33.0 million in 

fiscal year 2020. 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 2020 amounted to $687 million during the year. 

Original transfers for fiscal year 2019 totaled $656 million. Net income tax transfers 

after adjustments were $687 million for fiscal year 2020. Net transfers in fiscal year 2019 

totaled $734 million, including $78 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 2011 

through 2020, including reconciliation adjustments through 2014.

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 2020 and 2019 were $16.0 million and $19.0 million, 

respectively. These amounts include Federal income tax transfers for 2020 and 2019. 

The amount appropriated for fiscal year 2020 was 15.8 percent less than fiscal year 2019, 

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 2019-2020, and also $150,000 for fiscal 

years 2018-2019. 

(text continued on page 13)
10 2021 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 2011-2020 (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

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

2018 255 393 1

2019 267 401 2

2020 289 405 1

Reconciliation adjustments4

2011 (2015) 32 49 ▪ ▪

2012 (2016) 17 60 −1

2013 (2018) 31 66 ▪ ▪

2014 (2019) 1 76 1
 A Review of Operations 11

Railroad Retirement and Survivor Program 

Consolidated Financing Sources, 

Costs and Net Position (Millions)1, 2

For the Fiscal Year Ended September 30 2020 2019

 

Financing Sources:

Payroll Taxes $5,068.1 $6,089.3

Financial Interchange 4,854.6 4,709.7

Interest on Investments and Other Revenue 33.0 45.9

Federal Income Taxes 686.0 731.0

General Appropriations 19.9 24.3

Other (450.2) (1,163.8)

Transfers to the National 

 Railroad Retirement Investment Trust 0.0 0.0

Transfers from the National 

 Railroad Retirement Investment Trust 2,280.0 1,794.0

 Total Financing Sources 12,491.4 12,230.4

Costs:

Benefit Payments 13,110.5 13,008.8

Interest Expense 111.9 113.8

Salaries and Expenses 3 171.4 164.2

Other 19.7 22.8

 Total Costs 13,413.5 13,309.6

Financing Sources over Costs (922.1) (1,079.2)

Net Position - Beginning of Period 26,253.9 27,333.2

Net Position - End of Period $25,331.8 $26,253.9

1

 Source of data is the RRB’s Performance and Accountability Report.

2

 A loan from the Railroad Retirement Account to the Railroad Unemployment Insurance Account was 

processed in September 2020.

3

 Includes unemployment and sickness insurance salaries and expenses of approximately $22.1 million 

and $21.0 million for fiscal years 2020 and 2019, respectively.

Note.--Detail may not add to total due to rounding.
12 2021 Annual Report, U.S. Railroad Retirement Board

Market value of assets managed 

by NRRIT on September 30, 2020 $24.8 billion

Rate of return of investment portfolio 

managed by NRRIT for full year 

ended September 30, 2020 7.29%

Source: NRRIT 

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

National Railroad Retirement Investment Trust (NRRIT) 

Fiscal Year 2020 Summary
 A Review of Operations 13

Other Financing Sources

Other financing sources consisted of $7.2 million to be provided by the Office of 

Personnel Management to pay future retirement benefits to RRB employees. These 

financing sources were offset by a decrease in NRRIT net assets of $594 million, a gain 

on contingent liability of $136.2 million, and a $1.9 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 $171.4 million and 

$164.2 million shown on page 11 for salaries and expenses in fiscal years 2020 and 2019, 

respectively, about $22.1 million for fiscal year 2020 and $21.0 million for fiscal year 2019 

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

costs for fiscal year 2020 and $1.0 million for fiscal year 2019 were for the unemployment 

and sickness insurance program. 

Excluding $23.0 million from total costs of $13.4 billion for fiscal year 2020 and 

$22.0 million from total costs of $13.3 billion for fiscal year 2019, total costs for the railroad 

retirement and survivor program for fiscal year 2020 increased $102.9 million, or 0.8 percent.

Benefit Payments

In fiscal year 2020, railroad retirement benefit payments increased $101.7 million, or 

almost 0.8 percent, to about $13.1 billion on an accrual basis, including $14.1 million in 

vested dual benefits.

Interest Expense

Interest expense of $111.9 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 

$22.1 million for fiscal year 2020 and $21.0 million for fiscal year 2019, salaries and 

expenses for the railroad retirement and survivor program were about $149.3 million for 

fiscal year 2020 and about $143.2 million for fiscal year 2019, a $6.1 million or 4.3 percent

increase. Adjusted by the $22.1 million in salaries and expenses and $0.9 million in 

other costs for the unemployment and sickness insurance program, fiscal year 2020 

administrative expenses for the railroad retirement and survivor program were about

1.11 percent of total costs.
14 2021 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 $6.3 million for the railroad retirement and survivor 

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

addition, carrier refunds of $35.3 million were incurred. These costs were offset by 

approximately $14.2 million in reimbursements from the Centers for Medicare & Medicaid 

Services for Part B Medicare costs and various other revenues of approximately $51,000.

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 2020, the net asset value of Trust-managed assets decreased from 

$25.4 billion on October 1, 2019, to $24.8 billion on September 30, 2020. This includes 

$2.3 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 7.29 percent.

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

Treasury accounts) grew from $20.7 billion in 2002 to $25.9 billion as of the end of fiscal 

year 2020, after net transfers for benefit payments of approximately $26.9 billion over the 

same timeframe.

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

fiscal year 2020 and previous years, as well as reports issued on a quarterly basis, which 

are available by clicking on the Financial & Reporting tab at RRB.gov.

BENEFIT OPERATIONS

Retirement and survivor benefits paid, including vested dual benefits and supplemental employee annuities, totaled $13.1 billion in fiscal year 2020, $146 million more than in 

fiscal year 2019. Benefits were paid to about 527,700 beneficiaries in fiscal year 2020, and 

approximately 499,200 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 

2020 and 2019, 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 2018, tier I benefits increased by 2.8 percent due to a cost-of-living 

adjustment, while tier II benefits increased by 0.9 percent. Increases of 1.6 percent for tier I 

and 0.5 percent for tier II were effective December 2019.

These cost-of-living increases provided additional benefit payments of about $162 million 

in fiscal year 2020 compared to fiscal 

year 2019.

Monthly retirement and survivor 

benefits being paid numbered about 

622,900 at the end of the 2020 fiscal year, 

about 10,800 less than at the end of the 

prior year. Monthly beneficiaries on the 

rolls declined by approximately 7,300 

over the year, from 506,600 to 499,200. 

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 

2020 numbered 255,600, about 3,800 

less than at the end of the previous 

fiscal year. The number of age annuities 

being paid, including 49,300 disability 

annuities converted to age, decreased 

from 236,800 to 235,600 over the year, 

while disability annuities decreased from 

22,600 to 20,000. Supplemental annuities 

being paid to employees declined by approximately 3,400, numbering 114,400 at the end of 

the year. The number of divorced spouse annuities being paid declined by about 100, to 5,200. 

Spouse and divorced spouse annuities together decreased by approximately 800, totaling 

147,400 at year-end. About 103,200 monthly survivor benefits were being paid at the end of 

Amount 

(in millions)

 Fiscal year Fiscal year Percent

 Type of benefit 20201 20192 change

Retirement benefits

Employee annuities

Age3 $8,180.3 $8,000.7 +2.2

Disability 807.0 884.4 −8.8

Supplemental4 57.9 59.4 −2.5

Spouse and divorced

spouse annuities 1,930.2 1,892.3 +2.0

 Total 10,975.4 10,836.8 +1.3

Survivor benefits

Annuities 2,129.6 2,122.9 +0.3

Lump-sum benefits 1.8 2.1 −14.2

 Total 2,131.4 2,125.0 +0.3

Partition payments5 8.5 7.7 +10.1

 Grand total $13,115.3 $12,969.5 +1.1

1Data is from the Monthly Treasury Statement and the Bureau of Fiscal Operations.

2Data is from the Bureau of Fiscal Operations.

3A disability annuity ends when the retiree attains full retirement age, at which time the annuity 

converts to an age and service annuity. FY 2020 and FY 2019 include $1,522.9 million and 

$1,451.6 million, respectively, in payments to annuitants full retirement age and over originally 

awarded a disability annuity.

4Excludes partition payments to spouses and divorced spouses where the employee is 

deceased.

5Limited 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 2021 Annual Report, U.S. Railroad Retirement Board

fiscal year 2020, a decrease of 3,100 from the previous year. Approximately 2,200 partition 

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

entitled to an annuity were being paid at the end of fiscal year 2020, an increase of nearly 

200 from the prior year.

Retirement

Regular employee annuities

Awards of regular employee annuities numbered 8,900 in fiscal year 2020, about 500 

less than in fiscal year 2019. 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 were 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, 

 

 Average

Employee annuities Age at

 awarded in Monthly Years of retirefiscal year 2020 Number Percent amount service ment

Age

Beginning at full

retirement age or over 2,100 23 $2,764 21.3 67.6

Unreduced, beginning 

at age 60 to under full

retirement age 3,000 34 4,346 36.5 61.2

Reduced, beginning at

age 62 to under full

retirement age 2,100 23 2,149 16.4 63.4

Disability 1,700 19 2,937 18.7 54.4

 Total 8,900 100 $3,195 24.9 61.9

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

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 employee is considered 

totally disabled if medical evidence 

shows that a permanent physical or 

mental condition exists which prevents 

the performance of any regular work. A 

condition is considered to be permanent 

if it has lasted or may be expected to last 

for at least 12 months.

An occupational disability annuity 

is based on disability for the employee’s 

regular railroad occupation and is 

payable to employees with a current 

connection with the rail industry at age 

60 if the employee has 10 years of service, 

or at any age if the employee has at 

least 20 years of service. An employee is 

considered occupationally disabled if the 

physical or mental condition is such that 

the employee is permanently disabled 

for work in his or her regular railroad 

occupation, even though the employee 

may be able to perform other kinds of 

work.

Of the year’s 1,700 disability awards, 

800 averaging $2,346 per month were 

for total disability and 900 averaging 

$3,440 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-fifths of all 

employees recently awarded disability 

annuities will meet the medical criteria 

for a disability freeze determination. 

The standards for freeze determinations 

follow social security law and are 

Number of monthly beneficiaries, 

September 30, 2015, and 2020 (thousands)

Amount of benefits paid,

fiscal years 2015 and 2020 (millions)

1

Includes $61.1 million in fiscal year 2015 and $57.9 million 

in fiscal year 2020 for supplemental annuities.

2

Includes divorced spouses.

1

Without supplemental annuity.

2

Includes divorced spouses.

Average monthly amount,

September 30, 2015, and 2020

 Employee Spouse Survivor

$8,345

$1,667 $2,157

$9,045

$1,930 $2,131

2

2015

2020

1

 Employee Spouse Aged widow(er)

$2,581

$975

$1,576

$2,906

$1,088

$1,840

1 2

2015

2020

 Employee Spouse

 (includes

 divorced

 spouses)

 Survivor

268

144

121

256

147

103

2015

2020
18 2021 Annual Report, U.S. Railroad Retirement Board

comparable to the criteria for granting total disability. Also, an employee granted a 

disability freeze may qualify 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 2020, some 6,200, 

or 70 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 $3,639 per month, 

compared to $2,172 for the 2,700 awards based on deferred retirement. Immediate retirees 

averaged 29 years of railroad service, almost twice the average of 16 years for deferred 

retirees. Of the year’s awards, 57 percent of normal age retirements were immediate. 

While 92 percent of all 60/30 retirements were immediate, only 41 percent of the reduced 

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

retirements accounted for 80 percent of the year’s disability awards.

The 255,600 retired employees on the rolls as of September 30, 2020, were being paid 

regular monthly annuities averaging $2,906. The table shown here presents data by type of 

annuity for these benefits.

Of the 20,000 disability annuities being paid, 8,100 were for total disability and 11,900 

for occupational disability. The two types of disability annuities averaged $2,181 and 

$3,345, respectively. 

In fiscal year 2020, 

payments of about 

$237 million were 

for total disability 

annuities and 

$570 million for 

occupational 

disability annuities.

About 181,700 

employees on the 

rolls at the end of 

fiscal year 2020 

were immediate 

retirees and their 

regular annuities 

averaged $3,343 per 

month. Annuities 

of the 73,900 deferred retirees averaged $1,833. 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 6 percent for the immediate retirees. 

 Employee annuities Average Percent

in current-payment status monthly immediate

on September 30, 2020 Number Percent amount retirements

Age

Beginning at full

retirement age or over 23,300 9 $2,387 50

Unreduced, beginning 

at age 60 to under full

retirement age 106,500 42 3,782 92

Reduced, beginning at

age 60 to under full

retirement age 56,500 22 1,728 28

Disability converted to

age annuity1 49,300 19 2,625 82

Disability 20,000 8 2,871 80

 Total 255,600 100 $2,906 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 in 1960 and 

later.

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

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

paid to immediate retirees. Combined railroad retirement and social security benefits to 

deferred retirees who were dual beneficiaries averaged $2,132, while combined benefits 

to immediate retirees averaged $3,161. 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 2020 averaged $2,214 per month. Tier I 

amounts of some 7,400 employees were completely offset by social security benefits. Tier I 

amounts being paid averaged $2,045.

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

being paid at the end of fiscal year 2020 averaged $940. 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. Some 6,700 retirees were 

receiving vested dual benefits averaging $157 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 2,400 supplemental annuities were awarded in fiscal year 2020, about 900 

less than in fiscal year 2019. Approximately 2,000 of the awards (85 percent) began 

concurrently with the employee’s regular annuity, while the remaining 400 were to 

employees already receiving a regular annuity. Supplemental annuity awards averaged 

approximately $41 per month after court-ordered partitions; 83 percent were at the 

 Type of retirement 

 

 Dual benefit status Total Immediate Deferred

Receiving social security benefit

 Number 29,200 10,400 18,800 

 Average monthly amount:

 Railroad retirement (regular) $1,075 $1,914 $ 608 

 Social security 1,425 1,247 1,524 

 Combined benefit 2,500 3,161 2,132 

Not receiving social security benefit

 Number 226,500 171,300 55,100 

 Average monthly amount $3,142 $3,430 $2,250

Note.--Detail may not add to total due to rounding.
20 2021 Annual Report, U.S. Railroad Retirement Board

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

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

600 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 averaged $42 and were being paid to over 114,400, or 45 percent, of the retired employees on the rolls at the end of the 2020 fiscal year.

Spouse and divorced spouse annuities

Annuity awards to spouses and divorced spouses of retired employees numbered 8,700 

in fiscal year 2020, 1,100 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 2,300 reduced spouse annuities awarded in fiscal year 2020, 

fewer than 10 averaging $894 per month were to spouses of 30-year employees, and nearly 

2,300 averaging $635 were to spouses of employees with less than 30 years of service.

At the end of fiscal year 2020, almost 142,200 spouse annuities averaging $1,102 per 

month were being paid. Approximately 5,200 divorced spouse annuities averaging $705 per 

month were also being paid. These included nearly 80, averaging $746, 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 $4,260. This included $3,158 in 

regular and supplemental employee annuities and $1,102 in spouse annuities.
 A Review of Operations 21

Almost 59,300, or 40 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 $1,750 per 

month, including $435 

in railroad retirement 

benefits and $1,315 in 

social security benefits. 

Railroad retirement 

annuities to the 85,000 

spouses not receiving 

social security benefits 

averaged $1,549, while 

railroad retirement 

annuities to the 3,100 

divorced spouses 

not receiving social 

security benefits 

averaged $940.

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 may be 

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 142,200 spouses on the rolls at the end of fiscal year 2020, 92,400 were being 

paid tier I amounts averaging $983 per month. The tier I amounts of 49,800 spouses were 

completely offset by other benefits also due. Spouse tier II amounts averaged $502. There 

were no vested dual benefits being paid to spouses at the end of the fiscal year. The 5,200 

divorced spouses on the rolls at the end of fiscal year 2020 were being paid tier I amounts 

averaging $716 per month, not reflecting all annuity adjustments.

Lump-sum retirement benefits

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

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

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

credits for retirement. About $0.2 million was paid in separation/severance lump-sum 

benefits during fiscal year 2020.

 In current-payment 

 Awarded in status on

 fiscal year 2020 September 30, 2020

 Monthly spouse Average Average

benefits Number amount Number amount

Beginning at full

retirement age or over 1,800 $ 672 18,400 $ 641

With minor or disabled 

child in care 200 1,394 1,400 1,458

Unreduced, beginning

at age 60 to under full

retirement age 3,900 1,618 79,900 1,509

Reduced rate 2,300 636 42,500 525

Total 8,100 1,130 142,200 1,102

Divorced spouse

annuities 600 768 5,200 705

Grand total 8,700 $1,105 147,400 $1,088

Note.--Detail may not add to total due to rounding.
22 2021 Annual Report, U.S. Railroad Retirement Board

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

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

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

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

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

maximum. During the 2020 fiscal year, the RRB paid approximately 50 dual retirement tax 

refunds averaging $196. Most of the payments were to employees retiring during the year. 

Fewer than 10 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 6,400 during 

fiscal year 2020, about 50 less than the previous year. More than 103,200 survivor 

annuities were being paid at the end of the fiscal year, including 400 temporarily paid 

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

Approximately 79,400, or 77 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, awarded in the year and 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 calculated as a percentage of an employee tier II benefit. 

Prior to 2002, the percentages were 50 percent for a widow(er), 15 percent for a child, 

and 35 percent for a parent. The total tier II amount for a survivor family was subject to 

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

and all survivor tier II amounts were proportionately adjusted when either limit applied. 

December 2001 legislation established an “initial minimum amount” for widow(er)s which 

provides a tier II benefit equal to 100 percent of the tier II amount of the deceased employee. The maximum tier II amount payable to a family rose to 130 percent of the employee’s 

tier II amount. Widows and widowers are guaranteed a total tier I and tier II amount not 

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

1

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

aged widow(er)’s annuities, as disability annuities convert to age and service annuities at full retirement age.
 A Review of Operations 23

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

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

unreduced annuities is 

gradually rising from 

age 65 to age 67. The 

maximum age reductions 

range from 17.1 percent 

to 20.36 percent, 

depending on the 

widow(er)’s date of birth. 

Excluding nearly 400 

annuities temporarily 

paid at spouse or 

divorced spouse rates, 

aged widow(er)s’ 

annuities being paid at 

the end of the 2020 fiscal 

year included 40,600 

which were reduced for 

age. Aged widow(er)s’ 

tier I amounts being 

paid averaged $1,458 

per month. In over 6,400 

cases, the tier I amount 

was wholly offset by 

reductions for other benefits. Approximately 26,400 aged widow(er)s were also receiving 

social security benefits, and these averaged $1,196. Tier II amounts averaged $502. Less 

than 50 vested dual benefits, averaging $76, 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 2020, tier I amounts being 

paid to disabled widow(er)s on the rolls averaged $1,190. (In about 100 cases, the tier I 

amount was wholly offset by reductions.) Social security benefits being paid to over 1,300 

disabled widow(er)s averaged $1,026. Tier II amounts averaged $295, while the less than 

10 vested dual benefits being paid averaged $95.

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

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

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

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

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

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

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

beneficiaries. Tier I amounts being paid as of the end of fiscal year 2020 averaged $1,455 

for widowed mothers and fathers and $1,104 for children. Fewer than 50 mothers/fathers 

 In current-payment 

 Awarded in status on

 fiscal year 2020 September 30, 2020

 Monthly survivor Average Average

 benefits Number amount Number amount

 Aged widow(er)s 5,200 $2,349 79,400 $1,840

 Disabled widow(er)s1 100 1,681 3,200 1,437

 Widowed mothers

 (fathers) 100 2,053 600 1,992

 Remarried widow(er)s 100 1,334 2,600 1,192

 Divorced widow(er)s 700 1,297 9,700 1,203

 Children:

 Under age 18 300 1,574 1,700 1,511

 Student * 1,876 * 1,589

 Disabled 100 1,416 6,000 1,104

 Parents ▪ ▪ ▪ ▪ * 952

 Total 6,400 ▪ ▪ 103,200 ▪ ▪

 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 2021 Annual Report, U.S. Railroad Retirement Board

and nearly 1,900 children received social security benefits averaging $1,161 and $684, 

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

$571 and $122. 

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. About 1,800 lump-sum death benefits averaging $933 were 

awarded during fiscal year 2020. Approximately 200 benefits were to widow(er)s, while 

more than 1,600 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 

2020 fiscal year, and they averaged $429. 

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 2020, there were about 2,200 spouses and divorced spouses 

receiving payments averaging $324 where the employee was deceased or not otherwise 

entitled to an annuity. While all but 3 received a partitioned tier II benefit, only 

3 percent received a partitioned vested dual benefit and 38 percent received a 

partitioned supplemental benefit.

Medicare Enrollments

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

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

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

period is waived. 
 A Review of Operations 25

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

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

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

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

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

Part D provides optional prescription drug coverage for an additional premium. 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 over 23,900 

beneficiaries for Medicare during fiscal year 2020. As of the end of the fiscal year, about 

463,500 persons were enrolled in the Part A plan, and approximately 445,100 

(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 

$856 million in the 2020 fiscal year.

The regular monthly premium for Part B during fiscal year 2020 was $135.50 for 

coverage through December 2019, and $144.60 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 2020, approximately 19,800 Part B premiums and about 16,300 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 2020 nearly 427,300 annuitants were having their premiums 

withheld. Of the remaining Part B enrollees, almost 2,900 were paying premiums to the 

RRB, either directly or through an intermediary, and 14,900 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 2020, 

about 12,000 Part C premiums and approximately 63,100 Part D premiums were deducted 

from benefits paid by the RRB.
26 2021 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 

2020 were less than financing sources by $211.3 million and the net position increased by 

$211.3 million from $340.9 million at the end of fiscal year 2019 to $552.2 million at 

the end of fiscal year 2020. For fiscal year 2020, as compared to fiscal year 2019, total 

financing sources for the railroad unemployment and sickness insurance program 

increased by $428.1 million (313.2 percent) to $564.8 million.

(text continued on page 28)

Unemployment and Sickness Insurance Program

Consolidated Financing Sources, 

Costs and Net Position (Millions)1, 2

For the Fiscal Year Ended September 30 2020 2019

Financing Sources:

Employer Payroll Taxes $82.7 $131.4

Interest Income 2.1 5.3

General Appropriations 3 480.0 0.0

Other 0.0 0.0 

 Total Financing Sources 564.8 136.7

Costs:

Benefit Payments:

 Unemployment 4 287.0 35.9 

 Sickness 80.6 66.7 

Other (14.1) (13.8)

 Total Costs 353.5 88.8

Financing Sources over Costs 211.3 47.9

Net Position - Beginning of Period 340.9 293.0

Net Position - End of Period $552.2 $340.9

1

Source of data is the RRB’s Performance and Accountability Report. 

2

A loan to the Railroad Unemployment Insurance Account from the Railroad Retirement Account was 

processed in September 2020.

3

Total financing sources include $319.3 million in unexpended appropriations for CARES Act activity.

4

Unemployment benefit payments include about $154.8 million for CARES Act activity in fiscal year 

2020.

Note.--Detail may not add to total due to rounding.
 A Review of Operations 27

Benefit Payments 100%

$367.6

Financing Sources - Fiscal Year 2020 (In Millions)

GROSS TOTAL $564.8

UNEMPLOYMENT AND SICKNESS 

INSURANCE PROGRAM

Costs - Fiscal Year 2020 (In Millions)

TOTAL $367.6 1

Employer Payroll Taxes 14.6%

$82.7

Interest Income 0.4%

$2.1

General Appropriations 85.0% 

$480.0

1

Excludes −$14.1 million as shown under Other Costs on page 26.
28 2021 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 2020, the taxable earnings 

base was the first $1,655 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 2020, the basic tax rates on railroad employers, including covered commuter 

railroads, ranged from a minimum of 0.65 percent to a maximum of 12.0 percent. There 

was no surcharge in 2020. Most employers were assessed the minimum rate in 2020. New 

employers in 2020 paid an initial rate of 3.10 percent.

Employer Payroll Taxes

Payroll taxes by employers totaled $82.7 million during fiscal year 2020. This was a 

decrease of 37.1 percent or $48.7 million less 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 

2.4 percent in fiscal year 2020, of which the RRB earned $2.1 million as its pro rata share.

Costs

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

$264.7 million (298.1 percent) to $353.5 million. 

Benefit Payments

During fiscal year 2020, unemployment insurance benefit payments increased by 

$251.1 million (699.4 percent) to $287.0 million. Sickness insurance benefit payments 

increased by $13.9 million (20.8 percent) to $80.6 million.
 A Review of Operations 29

BENEFIT OPERATIONS

Net unemployment and sickness benefits totaling about $232.3 million were paid in 

the 2019-2020 benefit year, $149.9 million more than in the prior year. The CARES Act 

accounted for $81.0 million of the $232.3 million in unemployment benefits. In accordance 

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

amounts reflect a reduction of 6.2 percent for days of unemployment and sickness after 

September 30, 2018, and 5.9 percent for days after September 30, 2019. Beneficiaries 

numbered 37,100, in comparison to the previous year’s total of 21,700. Some 1,400 

employees received both unemployment and sickness benefits during the 2019-2020 

benefit year. The number of unemployment benefit claimants increased by 193 percent, 

while sickness benefit claimants increased by 7 percent. Total net unemployment benefit 

payments increased by 448 percent, while net sickness benefits increased by 17 percent. 

The number of employees qualified for benefits under the Railroad Unemployment 

Insurance Act decreased slightly to 234,600.

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 2019-2020, there were 

21,400 and 13,600 unemployment and sickness benefit waiting period claims, respectively.

Unemployment

Nearly 23,100 railroad workers were paid $173.1 million in net unemployment benefits 

during the 2019-2020 benefit year. The number of benefit claimants increased by almost 

15,200 from the prior year total of 7,900, and the benefit amount increased $141.5 million 

from the prior year’s total of $31.6 million. The average number of compensable days per 

unemployment benefit claimant was 62 in benefit year 2019-2020, five fewer than the 

previous benefit year. The decrease is likely due to the addition of thousands of claimants 

late in the benefit year due to the COVID-19 pandemic, with fewer days possible to claim 

before the benefit year’s end.

The mid-month unemployment count in the 2019-2020 benefit year began with a July 

count of 2,700 claimants. The count fluctuated before reaching 5,900 in January 2020. The 

count declined in February and March until the COVID-19 pandemic began affecting the 

rail industry in April. The mid-month count doubled between April and May before hitting 

a peak of 16,900 in June. For the 2019-2020 benefit year as a whole, the weekly number 

of claimants averaged 6,300 compared to an average of 2,200 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, increased 194 percent to 9.8 per 100 qualified, from 

the previous year’s 3.3 per 100 qualified. The median age for all unemployment benefit 

claimants was 39 years, as compared to 43 in the previous benefit year.

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 2021 Annual Report, U.S. Railroad Retirement Board

Item

 Benefit year 2019-2020 Benefit year 2018-2019

 

 Total

 Unemploy-

 ment1

 

 Sickness

 

 Total

 Unemploy-

 ment1

 

 Sickness

 Applications 63,700 43,900 19,800 30,100 12,200 17,900

 Claims 298,500 171,300 127,200 182,500 63,000 119,600

 Claimants 2 37,100 23,100 15,400 2 21,700 7,900 14,400

 Gross amount of benefits 3 $262,436,200 $182,468,300 $79,967,900 $82,393,800 $31,651,400 $50,742,400

 Number of payments

 Normal 252,600 143,300 95,200 136,000 46,500 89,500

 Extended 31,900 18,800 13,200 18,400 5,800 12,600 

 Enhanced 64,400 64,400 ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

 Total 348,900 226,500 108,400 154,400 52,300 102,100 

 Average amount per 

 2-week registration period 3

 Normal $651 $649 $654 $737 $740 $736

 Extended 631 644 611 607 615 603

 Enhanced 1,200 1,200 ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

 Total 751 806 650 722 726 720

1 Beginning in May 2020, includes special extended unemployment benefits and enhanced benefits paid under 

the CARES Act. In benefit year 2019-2020, special extended unemployment benefits were $7.7 million and 

enhanced unemployment benefits were $77.4 million.

2 Benefits for both unemployment and sickness were paid to approximately 500 employees in benefit years 2018-

2019 and 1,400 employees in benefit year 2019-2020. Those claimants who had only a non-compensable waiting period are not included in the beneficiary counts since no benefits were paid.

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

reflect a reduction of 6.6% under sequestration for days of unemployment and sickness after September 30, 

2017, 6.2% for days after September 30, 2018, and 5.9%for days after September 30, 2019.

NOTE.--Amounts shown are on a gross basis. Priot to the 2020 Annual Report, they were reported on a net 

basis.

Major unemployment and sickness benefit operations,

benefit years 2019-2020 and 2018-2019
 A Review of Operations 31

Unemployment and Sickness Benefit Claimants by Age,

Benefit Year 2019-2020

Claimants under the Railroad Unemployment Insurance Act, 

Benefit Years 2015-2016 through 2019-2020

16,420

13,194

9,317

7,865

23,061

15,963 16,052 15,689

14,351

15,375

2015-2016 2016-2017 2017-2018 2018-2019 2019-2020

Unemployment

Sickness

546

7,124

8,173

4,863

2,188

167 45

1,611

3,743

4,784 4,665

527

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

Unemployment

Sickness
Sickness

The number of sickness benefit claimants during the 2019-2020 benefit year was 

15,400, about 1,000 more than the previous year. This corresponds with an increase in 

sickness due to COVID-19 illnesses. Gross sickness benefits of $80.0 million were paid, 

$6.5 million more than in the prior benefit year. Net sickness benefits totaled $59.2 

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 approximately $8.5 million 

in comparison with the previous year.

The utilization rate for sickness benefits was 6.6 percent of qualified employees, higher 

than the previous benefit year’s rate of 6.1 percent that was the lowest since the program’s 

inception. The average duration of sickness was 70 days in benefit year 2019-2020, down 

slightly from 71 in the previous benefit year.

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

wounds (affecting 24 percent of beneficiaries), diseases of the musculoskeletal system and 

connective tissue (22 percent), mental disorders, including drug and alcohol addictions 

(12 percent), infectious and parasitic diseases (7 percent), and circulatory and heart disease 

(7 percent). The COVID-19 cases were largely grouped into the infectious and parasitic diseases category. The median age of all sickness benefit claimants was 49 years, compared 

with 50 years the previous benefit year.

32 2021 Annual Report, U.S. Railroad Retirement Board
RAILROAD EMPLOYMENT

The preliminary average monthly railroad employment in fiscal year 2020 fell 

9 percent to 202,000 from the 221,000 average of the previous fiscal year. From October 

2015 through January 2018, there was a sustained decline in employment. Then, from 

February through November of 2018, there was a moderate recovery. The decline resumed 

in December 2018 until March 2020. In April 2020, when the COVID-19 pandemic began 

to affect the railroad industry, the decline in employment accelerated. During fiscal year 

2020, employment began at 211,000 in October 2019, and declined to a record low of 

193,000 in June 2020, before increasing slightly to 195,000 in September 2020.

Note.--Numbers for 2020 are preliminary.

Average Railroad Employment

Fiscal Years 2016 through 2020

Note .--Numbers for 2020 are preliminary.

 190,000

 195,000

 200,000

 205,000

 210,000

 215,000

 220,000

 225,000

 230,000

 235,000

 240,000

 A Review of Operations 33
34

Coronavirus Pandemic

As the United States grappled with the effects of the COVID-19 pandemic, the RRB implemented two major pieces of relief legislation in 2020 that affected 

railroad employees and retirees, while also making significant changes to agency 

operations in order to provide service to its customers in a trying time.

Relief Legislation

Enacted on March 27, 2020, the Coronavirus Aid, Relief, and Economic Security 

(CARES) Act included three provisions that impacted payment of benefits under the 

Railroad Unemployment Insurance Act, with each having a separate Treasury appropriation for payment of those benefits. In addition, the CARES Act exempted the benefits provided from reduction due to sequestration. These included the following:

• Special extended unemployment benefits for rail workers with jobless claims during

the period from July 1, 2019, to June 30, 2020, funded by using the approximately

$142 million remaining from the Worker, Homeownership, and Business Assistance

Act of 2009. Benefits had to begin by December 31, 2020.

• Enhanced unemployment benefits of $1,200 per 2-week registration period, for

registration periods beginning on or after April 1, 2020, through July 31, 2020.

An appropriation of $425 million in the CARES Act funded the enhanced amount,

which was payable until the end of a person’s entitlement or until the appropriation

ran out, whichever came first.

• Elimination of waiting periods for unemployment and sickness benefits for registration periods beginning before December 31, 2020. A $50 million appropriation in the

CARES Act funded the benefits payable in lieu of a waiting period, payable until the

earlier of the end of the person’s entitlement or exhaustion of the appropriation.

The legislation also provided one-time payments of $1,200 to adults making less than 

$75,000, or $150,000 for a couple, with the payment reduced for individuals who made up 

Administrative Developments

The following describes major activities and issues addressed in 2019 and 2020 as part 

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

to $99,000, or $198,000 for a couple. Families with children received an additional $500 per 

qualifying dependent.

Program and information technology staff worked together to make the necessary programming changes under the CARES Act as quickly as possible. This was done in several 

phases, with an initial emphasis on the extended unemployment benefits, particularly for 

people who had already exhausted their regular extended benefits. The RRB also gave priority to generating the necessary information for Treasury to allow the Internal Revenue 

Service to make the $1,200 recovery payments. These actions were largely completed within the first two months after enactment of the CARES Act. Subsequent phases to provide 

the enhanced unemployment benefit amount and eliminate the waiting period were completed over the summer. For those actions that took longer to implement, the agency paid 

benefits retroactively to qualified individuals.

Enacted on December 27, 2020, the Continued Assistance to Rail Workers Act 

(CARWA) amended the CARES Act to continue the special extended unemployment benefits and the waiver of the waiting period, while providing a reduced level of enhanced 

unemployment benefits. CARWA also provided that all unemployment and sickness benefits would be exempt from reduction due to sequestration from January 3, 2021, until 30 

days after a presidential termination of the national COVID-19 emergency. The specific 

benefit extensions were as follows:

• Special extended unemployment benefits through April 5, 2021 for anyone who 

received regular unemployment benefits in the benefit year beginning July 1, 2020.

• Enhanced unemployment benefits of $600 per 2-week registration period for registration periods beginning on or after December 27, 2020, through registration periods beginning on or before March 14, 2021.

• Waiver of waiting period extended to March 14, 2021.

Since these provisions represented modifications to benefits previously provided under 

the CARES Act, agency staff was able to complete the operational and programming changes to implement them in the month after enactment of CARWA.

(Note: The American Rescue Plan Act of 2021, enacted on March 11, 2021, included 

further extensions of railroad unemployment changes originally contained in the CARES 

Act. This included a continuation of special extended unemployment benefits and waiver of 

the waiting period through September 6, 2021, along with the enhanced benefit amount of 

$600 per 2-week registration period provided by CARWA. It also included a one-time cash 

payment of $1,400 to individuals making no more than $75,000, or $150,000 for couples, 
36 2021 Annual Report, U.S. Railroad Retirement Board

with the payment quickly phasing out for individuals or couples making more than $10,000 

above those thresholds.)

Agency Operations

In the immediate aftermath of the designation of COVID-19 as a national emergency 

on March 13, 2020, the RRB closed its headquarters and field offices to the public effective March 16, 2020. In addition, the agency moved its employees to a maximum telework 

status. In addition to the presidential declaration, this move was prompted in part by the 

fact that the RRB Chicago headquarters and several of its field offices were located in 

early COVID-19 “hot spots.” The agency continued to provide service by phone and mail. 

Expanded phone service was facilitated by the deployment of 685 cell phones to agency 

employees. These phones were purchased using a $5 million appropriation under the 

CARES Act to procure information technology equipment to improve workforce mobility. 

Changes were also made to allow field personnel to use these phones to answer calls to the 

RRB’s national toll-free number.

The RRB also adopted enhanced screening procedures for the limited number of 

employees and contractors entering the headquarters building, including temperature 

checks and screening questions related to COVID-19 exposure or symptoms, along with 

deployment of hand sanitizers throughout the offices. In the year following the emergency 

declaration, the RRB was fortunate that only 20 employees – 15 at headquarters and 5 

in field offices – reported testing positive for COVID-19. In most cases, the positive test 

involved an employee working remotely. In cases in which a positive employee was in 

the office, the adjacent workspaces received a deep cleaning and sanitization before any 

employees could return to those areas. A larger number of agency employees also self-quarantined during this period due to actual or likely exposure to an infected person. The RRB 

also initiated ongoing efforts to plan for a safe return to work by its employees, based on 

relevant Federal guidance and monitoring local conditions.

Performance Management

Customer Service Plan

The RRB’s Customer Service Plan promotes the principles and objectives of customerdriven quality service agencywide. 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 has developed an index to measure the overall timeliness of customer 

service in four benefit areas: retirement applications; survivor applications; disability 
Administrative Developments 37

applications and payments; and railroad unemployment and sickness benefit applications 

and claims. This composite indicator, based on a weighted average, provides a concise 

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

year 2020, the overall benefit timeliness index was 99.0 percent. The timeliness index for 

retirement applications, survivor applications, and disability applications and payments, 

the processing of which includes considerable manual intervention, was 90.9 percent. The 

timeliness index for railroad unemployment and sickness benefit applications and claims, a 

highly automated process, was 99.7 percent. The RRB also met or exceeded six out of ten of 

its customer service performance goals for the year in its Annual Performance Plan.

Reducing Improper Payments

The RRB’s estimated improper payment rate for the Railroad Retirement Act (RRA) 

and Railroad Unemployment Insurance Act (RUIA) programs has consistently fallen below 

the statutory thresholds for “significant improper payments.” In fiscal year 2018, the RRB 

requested reporting relief for these two programs following the relevant guidance in Office 

of Management and Budget (OMB) Circular A-123, Appendix C, Part II.A.3. OMB approved 

this request in July 2018. As a result, the RRB’s improper payment analysis for these 

two programs was not published in the agency’s Performance and Accountability Report 

(P&AR) for fiscal years 2018, 2019, and 2020. During fiscal year 2020, the agency did 

conduct and publish risk assessments for the RRA and RUIA programs in the “Payment 

Integrity” section of the fiscal year 2020 P&AR.

The risk assessment conducted for the RRA program demonstrated that the program 

continues to be under the statutory thresholds of “significant improper payments.” 

Therefore, reporting relief will continue until the next scheduled risk assessment in fiscal 

year 2023. The risk assessment for the RUIA program also concluded that the improper 

payment rate continues to fall below the law’s thresholds for “significant” improper 

payments. However, formal improper payment reporting will resume in the fiscal year 

2021 P&AR due to provisions in the CARES Act of 2020 that directly affected payment of 

unemployment and sickness benefits.

In addition, pursuant to requests from OMB, the RRB submitted information on 

overpayments recaptured outside payment recapture audits and the dollar amounts of 

confirmed fraud, as determined by the agency’s Office of Inspector General. The agency 

also completed a supplemental information request for the RRA, RUIA, and Medicare 

programs. All of the information provided to OMB was incorporated into its website, 

PaymentAccuracy.gov, and is available for public viewing.
38 2021 Annual Report, U.S. Railroad Retirement Board

Service Enhancements

Login.gov

Launched in 2017 by the General Services Administration, login.gov provides a 

single sign-on solution that enables citizens to access several government programs and 

services using the same email address and password. Login.gov verifies a user’s identity 

during the account creation process and each time the user tries to access the system, 

providing an extra layer of security to protect personal information. The RRB provides 

access to this portal and online services through the myRRB application on its website. 

The RRB continued integration and promotion of login.gov as customer demand related 

to unemployment and sickness benefits increased substantially due to the COVID-19 

pandemic and related relief legislation. For example, four times as many login.gov

accounts were created in April 2020 than the previous four months combined. (The RRB 

surpassed 50,000 accounts in February 2021.)

Through the integration with login.gov, claimants can verify their identity online and 

immediately apply for unemployment benefits without having to phone or visit agency 

offices or mail any forms. Agency staff also participated in online forums throughout 

the year, geared towards other Federal agencies, in which they spoke about their 

experiences with login.gov and how it provided a scalable solution to help meet pandemic 

demands. As more agencies partner with login.gov, the RRB anticipates savings through 

economies of scale, but also a better customer experience by using a single user name and 

password to access multiple Federal benefits and programs.

Cost-of-Living Adjustment

In December 2020, tier I benefits increased by 1.3 percent while tier II benefits rose by 

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

the January 2021 payments, with income tax withholding calculated using updated tax 

tables. The standard Medicare Part B premium for 2021 increased from $144.60 per month 

to $148.50, with increased premiums for some high-income beneficiaries.

Imaging

The RRB made significant use of recently purchased software, Auto Import, as a result 

of the COVID-19 pandemic. Many processes at the agency remain dependent on paper. 

As most employees worked remotely, they were unable to access paper documents or send 

them directly to the agency’s imaging system. Auto Import allows electronic documents 

to be sent to the imaging system without the need to print and scan physical documents. 

Imaging analysts worked to embed the software into various workflows so that documents 

could be received and handled electronically by the appropriate unit. Some agency units 
Administrative Developments 39

are also using a special barcoded coversheet when using Auto Import to take advantage 

of a feature called “E-Route.” This automatically indexes the document for immediate 

access and viewing in the imaging system, while also creating a workflow transaction in 

the claim management and tracking application, thereby allowing supervisors to assign it 

to an examiner for handling. Auto Import facilitated the submission of tens of thousands 

of documents to imaging, allowing them to be processed in a timely manner with staff 

working remotely. Analysts continue to configure the software and coversheets to enhance 

workflow wherever possible, and process improvements enabled with Auto Import will 

continue beyond any pandemic restrictions.

Officials

Erhard Chorlé continues to serve as Chairman of the Railroad Retirement Board, 

John Bragg as the Labor Member, and Thomas Jayne as the Management Member. All 

three first assumed office in February 2019. Martin Dickman has served as the Inspector 

General for the RRB since 1994.

In August 2020, the Board appointed Dr. Elizabeth Bonson as its Chief Medical Officer. 

She is double board-certified in preventive medicine and occupational/environmental 

health. Prior to her appointment, she served as a physician clinical reviewer providing 

utilization review and management for healthcare services. She also spent five years in 

clinical practice, specializing in occupational health, and served as Associate Medical 

Director for the Washington State Department of Labor and Industries, responsible for 

provider education and best-practice program development for worker-related healthcare. 

In September 2020, the Board named Spiridoula Mavrothalasitis as Director of Hearings 

and Appeals. Before her appointment, she oversaw the Legal Division for the Illinois 

Department of Insurance, and also had experience overseeing the Workers Compensation 

Division for the City of Chicago and serving as an Assistant Corporation Counsel in the 

Employment Litigation Division. Previously, she was an Assistant Inspector General in the 

Office of the Executive Inspector General for the Agencies of the Illinois Governor and was 

in private practice handling a variety of business litigation.

Human Capital Management

Staffing

Nearly 40 percent of RRB employees have 20 or more years of service, while 32 percent 

of the current workforce will be eligible for retirement by fiscal year 2022. To better 

prepare the agency to ensure that its human capital needs are met in order to achieve its 

mission and support the railroad public it serves, the RRB continues to place increased 

emphasis on strategic management of human capital, particularly in the areas of workforce 

planning, knowledge management, training, development, recruitment, and succession 
40 2021 Annual Report, U.S. Railroad Retirement Board

planning. For example, through its workforce planning efforts, the RRB is utilizing its 

Strategic Plan as one component when analyzing and aligning its workforce to link work 

requirements to the agency’s mission and identify potential areas of skill and knowledge 

gaps. The RRB continues to maximize new and existing technologies to help streamline 

human capital practices. As another example, in 2020, the RRB partnered with the Office 

of Personnel Management (OPM) to assess, redefine, and refine its succession planning 

program.

The RRB also continues to automate its assessment and hiring process. In 2020, the 

agency partnered with OPM to develop online assessment tools for entry-level claims 

examiners and claims representative positions. The agency also utilized the Pathways 

Recent Graduate Program, which is geared to attracting individuals who have completed 

a degree or certificate within the previous two years – six years if fulfilling a military 

obligation – to a career in Federal service. The staffing and recruitment section in 

the RRB’s Bureau of Human Resources made nearly 1,300 minimum qualification 

determinations for 65 job announcements in fiscal year 2020. Through the Pathways 

program, the agency received 508 applications from across the country for two job 

announcements. The RRB had a combined total of 509 outside applicants for the 

claims assistant and claims representative positions, both of which are key drivers 

for accomplishing the agency’s mission. In addition to automating many of its current 

practices, the Bureau of Human Resources has continued to review, revise, and update 

outdated human capital policies and procedures at the agency, as well as to implement 

various COVID-19 benefits afforded to Federal employees.

Two training classes for initial and post-adjudication examiners of retirement and 

survivor benefits were completed in 2020. There were ten initial trainees and seven postadjudication trainees in the classes completed in the spring and summer. These positions 

are critical to the agency’s success in meeting its mission due to the central nature of 

this workload and its highly complex nature. The initial examiners are responsible for 

processing initial retirement and survivor applications and initial social security payments. 

The post examiners are responsible for the maintenance of the initial payments, annuitants 

in current pay status, processing annuity adjustments, releasing overpayment letters 

and performing authorization review of actions by subordinate examiners. Another class 

completed in 2020 was for initial examiners of disability benefits, who are responsible for 

adjudicating disability applications under the Railroad Retirement Act and some disability 

freeze determinations under the Social Security Act.

The RRB also started the agency’s first remote training program for seven new user 

analysts hired under the Pathways Recent Graduate Program. Six are being trained in 

adjudication of retirement and survivor claims, with one trained in unemployment and 
Administrative Developments 41

sickness claims. All of the trainees will be trained in subjects and skills needed by user 

analysts such as procedure writing, forms development, system maintenance, and the 

systems development lifecycle. Formal classroom training will end in June 2021, followed 

by mentoring and on-the-job training until they reach the target qualifications and grade 

level. In terms of future hiring/training, the agency hopes to have a class of up to 15 

unemployment and sickness examiners in the last quarter of fiscal year 2021, and a class 

for Medicare examiners in fiscal year 2022, with the number yet to be determined.

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 2020, the training section conducted orientation and onboarding 

programs for new employees, and also held workshops throughout the year on creation and 

implementation of individual development plans. The section also created and published 

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

Federal training requirements, new policies and procedures, and on-demand automated 

training to educate agency personnel on the provisions, rules, and program notifications 

related to the CARES Act. The section also developed an informational video on the postpandemic return to facilities and in-person work for RRB employees. Lastly, the section 

partnered with the agency’s Bureau of Information Services to implement agencywide 

information security training strategies for all employees, and targeted customized, rolebased training for employees in information technology positions.

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 2020, more than 967 employees and 

contractors completed 1,783 individual learning objects (i.e., online courses, instructor-led 

training, form requirements, course curricula, etc.) managed through the LMS, for a total 

of 28,073 learning-object completions, an increase of 15 percent from the 24,374 in 2019.

Office of Programs staff also took advantage of 14 external training courses in 2019, 

including offerings on communication skills, contract management, instructional design, 

labor relations, presentation skills, project management, sexual harassment in the 

workplace, and supervisory skills. 
42 2021 Annual Report, U.S. Railroad Retirement Board

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. The core survey items were reduced in the 2020 

survey and a new section was included to address the potential challenges and changes 

employees faced due to the COVID-19 pandemic. Of the 801 agency employees invited to 

participate, 412 completed the survey, for a response rate of 51.4 percent, an increase of 

8.6 percent from the prior year. Twenty-three survey items were identified as strengths (65 

percent or more positive) while no survey items were identified as a challenge (35 percent 

or more negative). Additionally, scores for 22 items increased from the previous survey, 

while only 11 items decreased. The agency’s “engagement index” score exceeded OPM’s goal 

for 2020 of 71 percent, and met or exceeded the governmentwide benchmarks in all areas.

As for COVID-specific content added to the 2020 survey, results indicated that 

employees felt the agency supported their well-being and work needs during the 

pandemic. Over 80 percent of employees indicated that senior leaders provided effective 

communications about the pandemic, and nearly 85 percent of employees felt their 

supervisor supported their efforts to stay healthy and safe while working. The results of the 

survey, and these new items in particular, provide an important opportunity to assess the 

agency’s current state and inform future emergency policies and actions.

Information Technology

System Modernization

The RRB made significant progress as it turns its focus from the stabilization phase 

to the modernization phase of improving its information technology (IT) capabilities. The 

agency continues to look for opportunities to accelerate the modernization of systems 

and assets that directly support the mobility of the RRB workforce. To this end, the 

agency completed development of a modernization roadmap path analysis using 18F, 

a technology and design consultancy for the Federal government within the General 

Services Administration. The purpose of the path analysis project was to receive 

assessment services to analyze RRB business processes, applications, and systems that 

support the end-to-end services for railroad beneficiaries and railroad employers. In 

the first quarter of fiscal year 2021, 18F completed a synthesis of findings as well as 

preliminary recommendations identifying the next steps toward a potential modernization 

solution. This information will serve as the foundation for a strategic approach to this 

effort.
The RRB also completed planning and acquisition for two significant IT modernization 

projects. Both of them are targeted for completion by the end of fiscal year 2021.

• Migration of the RRB data center mainframe and disaster recovery site to IBM 

operations on the IBM zCloud for Government. The transition provides RRB optimization 

of mainframe operations and enables both IT and application modernization.

• The migration to cloud email through Microsoft’s cloud solution (M365) with the 

capability to expand collaboration tools such as Teams and SharePoint Online.

In addition, the on-premises production web/database servers were migrated to the 

Microsoft Azure Cloud in March 2021. A total of 86 applications now reside in RRB’s 

Azure cloud and are being used in full production capacity. Working together, IT and 

program staff assisted in this migration of application by testing and verifying their 

functionality in the cloud environment.

SEARCH Expansion Project

In fiscal year 2019, the agency began a project to expand tables and fields in the 

Service Earnings and Railroad Compensation History (SEARCH) program. The project 

was divided into two phases. The first phase, completed early in fiscal year 2020, 

expanded the number of tables from the year 2020 to the year 2034, or an additional 14 

years. The second, more complex phase expanded the field length of various SEARCH 

fields. This involved the expansion of the primary insurance amount field and the tier 

II contribution field. Following integration testing, the second phase was completed in 

June 2020. As a result, SEARCH now has data tables expanded to the year 2034, with all 

necessary data fields expanded from four bytes to five bytes, as well as other systems that 

interface with SEARCH.

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 2020, the 

RRB’s information security team administered statutorily required security-awareness 

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.

The agency plans to strengthen the cybersecurity of the RRB and improve information 

security monitoring by implementing a continuous diagnostics and mitigation (CDM) tool, 

Administrative Developments 43
as recommended by the Department of Homeland Security (DHS) and the Cybersecurity 

Infrastructure Security Agency (CISA). Specifically, the RRB will implement Qualys, 

a software-as-a-service CDM tool to assess hardware, software, security management 

configuration, and software vulnerabilities in the last quarter of fiscal year 2021. Qualys 

will continuously scan the RRB network and devices for security risks and send the data 

to CISA to create an RRB dashboard that aggregates and displays information about 

what is happening on the agency network and critical vulnerabilities. The dashboard 

will help the agency to be more effective in resolving security incidents and threats. RRB 

data will also feed into the DHS Federal dashboard for use in calculating an agencywide 

adaptive risk enumeration (AWARE) score. This gives agencies a view of cyber risks so 

they can assess the size and scope of their vulnerabilities, prioritize actions, and address 

the most significant problems first.

Information Resources Management

In fiscal year 2020, the RRB coordinated and secured computer-matching agreements 

with 15 states. The agency also secured Office of Management and Budget (OMB) 

approval of 13 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.

Disaster Recovery Test

In September 2020, the RRB conducted a successful agencywide disaster recovery test. 

This was the fourth annual test conducted over a 2-day period, with all testers accessing 

applications and systems from remote locations. Testing included access to the agency’s 

virtual private network, as well as mainframe applications and menus. The test identified 

no major issues or material weaknesses.

Equal Opportunity

Policies and Procedures

The agency’s Equal Employment Opportunity (EEO) complaint program has policies 

and procedures in place to address all forms of discrimination, including harassment. The 

discrimination complaint process and the anti-harassment complaint process have the 

elements of impartiality, timeliness and credibility. 

Both the agency’s website and its intranet include information to ensure that the public 

and agency employees have access to information regarding the complaint programs. 

Training is provided to ensure that employees know their rights and responsibilities under 

44 2021 Annual Report, U.S. Railroad Retirement Board
various Federal laws and executive orders. In fiscal year 2020, the agency’s Office of Equal 

Opportunity (OEO) updated the agency’s anti-harassment policy and provided procedural 

instructions for the policy to be administered through the RRB’s Office of Administration. 

EEO policies such as the sexual harassment policy and the EEO policy are posted on 

every floor at headquarters and in each agency field office. All EEO policies and complaint 

procedures are also downloaded to the internal intranet where all employees have access.

Diversity Program

Throughout the year, and in the midst of the COVID-19 pandemic, OEO sponsored 

online events to foster an inclusive work environment. These included cultural enrichment 

videos to commemorate African American History Month and Hispanic Heritage Month. 

Once the pandemic is over, OEO plans to resume diversity events for Native American 

Heritage Month, Women’s History Month, Asian Pacific Heritage Month, as well as 

National Disability in Employment Month. The OEO’s three committees – the Workplace 

Diversity Committee, the Federal Women’s Program Committee, and the Employees with 

Disabilities Advisory Council – organize the events/programs. 

Recruitment

The RRB is committed to maintaining a diverse workforce. OEO continued to work 

cooperatively with the Bureau of Human Resources in 2020 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.

The Office of the Labor Member has proactively helped educate rail union officials about 

the benefits available to members and their families under the Railroad Retirement and 

Railroad Unemployment Insurance Acts since 1957. At pre-retirement seminars sponsored 

by the Labor Member of the Board, RRB employees describe and discuss the benefits 

available under the railroad retirement-survivor, unemployment-sickness, and Medicare 

programs, and provide attendees with comprehensive informational materials. These 

meetings are attended by officials and members of rail labor unions, as well as railroad 

Administrative Developments 45
employees and spouses nearing retirement. In addition, railroad labor unions frequently 

request that RRB representatives speak before their meetings and conventions.

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. The Management Member’s Office 

conducts these seminars for railroad officials, as well as other benefit update presentations 

and pre-retirement counseling seminars attended by railroad employees and their spouses.

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 here can be found at RRB.gov/OurAgency/InspectorGeneral/Library. 

Office of Audit

During fiscal year 2020, the Office of Audit published nine reports, including mandated 

audits such as the annual information security audit, the annual Improper Payments 

Elimination and Recovery Act of 2010 compliance audit, the annual financial statement 

audit, and the annual compliance audits for two different 2014 laws – the Digital 

Accountability and Transparency Act and the Federal Information Security Modernization 

Act. The OIG also issued audits of the RRB’s telework program and the railroad Medicare 

program. In total, the Office of Audit issued 58 recommendations to agency management 

and identified more than $100,000 in questioned costs.

 Additionally, 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: disability program integrity; information technology 

security and complete systems modernization; management of railroad Medicare; payment 

accuracy and transparency; financial management and reporting; and compliance concerns 

with various guidance.

In response to the coronavirus pandemic, the OIG issued its CARES Act oversight plan, 

plus an interim report regarding CARES Act expenditures and controls. The interim report 

addressed concerns about the RRB’s purchase and deployment of mobile phones for all 

employees and about CARES Act benefit payments being issued without any concurrent 

checks against state wages and unemployment benefits for the same period. 

46 2021 Annual Report, U.S. Railroad Retirement Board
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 other law enforcement agencies, such as the Federal Bureau of 

Investigation and the U.S. Secret Service.

During fiscal year 2020, the office secured 4 arrests, 17 indictments and/or 

informations, 25 criminal convictions, 14 civil judgments, and more than $14.8 million in 

financial accomplishments. This reflects fraud amounts related to programs administered 

exclusively by the RRB and fraud amounts from other Federal programs, such as 

Medicare, which were included in the disposition resulting from the investigation. 

Judicial sentences associated with joint casework are not necessarily delineated by 

agency.

As of September 30, 2020, the Office of Investigations’ caseload totaled 283 matters, 

which represents almost $551 million in potential fraud losses. This reflects potential 

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

fraud amounts from other Federal programs, such as Medicare, which have been 

identified during the office’s joint investigative work. Potential fraud amounts associated 

with joint casework may not necessarily be delineated by agency.

Administrative Developments 47
Legal Rulings

48

Court Cases

One petition for review was filed during the fiscal year in a U.S. Circuit Court of 

Appeals, which was dismissed before the end of the fiscal year. All four cases 

filed in the U.S. Circuit Courts of Appeals in previous fiscal years were also dismissed 

before the end of fiscal year 2020. The one case that was filed in the U.S. District Court for 

the Southern District of Georgia the previous fiscal year remained pending. Finally, the 

petition for certiorari that was filed in the U.S. Supreme Court the previous fiscal year also 

remained pending at the end of fiscal year 2020.

Appeals

Any claimant for benefits under the Railroad Retirement Act (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 2020, 167 appeals were filed with the Bureau of Hearings and 

Appeals under the RRA, and the Bureau rendered decisions in 209 appeals. The Bureau 

rendered decisions favorable in whole or in part to the claimant in 101 appeals. The Bureau 

issued denials in 71 cases, affirming the previous decision, and dismissed 37 cases.

Thirty-two appeals were filed with the Board in fiscal year 2020, and the Board issued 

30 decisions. In 14 cases the previous ruling of the hearings officer was affirmed, in 6 cases 

the decision was fully favorable to the appellant, and in 2 cases the decision was partially 

favorable. The Board remanded 6 cases to the Bureau of Hearings and Appeals, and 2 

appeals were dismissed. At the end of the year, 102 appeals were pending before the Board.

RUIA

 During fiscal year 2020, 29 appeals were filed with the Bureau of Hearings and 

Appeals under the RUIA, and the Bureau rendered decisions in 31 appeals. The Bureau 

During fiscal year 2020, one case involving the RRB was filed in Federal court and the 

agency issued 272 decisions on claimant appeals of previous agency determinations.
issued decisions favorable in whole or in part to the claimant in 8 appeals. The Bureau 

issued denials in 11 cases, affirming the previous decision, and dismissed 12 cases.

Three appeals were filed with the Board in fiscal year 2020. The Board rendered 

decisions in 2 appeals, affirming the decision of the hearings officer. At the end of the year, 

13 appeals were pending before the Board.

Legal Rulings 49
STATISTICAL

TABLES
Total1 Retirement2 Survivor2 Unemployment3 Sickness3

BENEFICIARIES (in thousands)2011....................................................... 603 429 156 11 18

2012....................................................... 595 429 150 10 17

2013....................................................... 592 429 146 11 16

2014....................................................... 585 428 141 10 16

2015....................................................... 581 428 136 9 16

2016....................................................... 583 428 131 17 17

2017....................................................... 574 427 127 12 16

2018....................................................... 563 423 123 9 16

2019....................................................... 557 422 119 9 15

2020....................................................... 4568 418 116 26 18

BENEFIT PAYMENTS (in millions)2011....................................................... $11,072.7 $8,778.5 $2,165.3 5$52.1 $76.92012....................................................... 11,446.3 9,155.4 2,171.7 546.2 73.02013....................................................... 11,748.1 9,456.5 2,175.5 551.5 64.62014....................................................... 11,998.3 9,724.9 2,167.2 540.8 65.42015....................................................... 12,273.2 10,012.2 2,156.9 36.7 67.42016....................................................... 12,497.4 10,202.4 2,139.2 80.2 75.62017....................................................... 12,593.3 10,341.4 2,121.9 53.8 76.32018....................................................... 12,803.5 10,567.2 2,118.8 40.7 76.82019....................................................... 13,077.9 10,836.8 2,125.0 42.3 73.82020....................................................... 13,470.3 10,975.4 2,131.4 6282.3 681.2

1 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. The number of beneficiaries represents all individuals paid benefits in year. In the total number for each  year, beneficiaries are counted only once, even though they may have received more than one type of benefit.

2 Retirement benefits include vested dual benefit and supplemental annuity payments. Survivor benefits include vested dual benefit payments but exclude partition payments.

3 In accordance with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, 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, 6.9% for days after September 30, 2016, 6.6% for days after September 30, 2017, 6.2% for days after September 30, 2018, and 5.9% for days after September 30, 2019.4 In fiscal year 2020, 7,100 individuals received both retirement and survivor benefits, 1,800 employees received both unemployment and sickness benefits, and 1,300 employees received benefits under both the Railroad Retirement Act and the Railroad Unemployment Insurance Act. 5 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, 2013.6 Starting in May 2020, includes temporary waiting period waiver benefits, extended unemployment benefits, and enhanced unemployment benefits authorized by the Coronavirus Aid, Relief, and

Table 1.--Beneficiaries and benefits paid under the Railroad Retirement Act and the Railroad Unemployment Insurance Act, by fiscal year, 2011-2020, cash basis

 Economic Security Act of 2020. Gross unemployment benefits for these temporary payments were $151.2 million, gross sickness benefits were $1.7 million for Fiscal Year 2020.NOTE.--In Annual Reports through 2019, information in this table, with respect to unemployment and sickness benefits paid, was reported on a net basis. Beginning with the 2020 report, these amounts are shown on a gross basis. 

Fiscal year

52 2021 Annual Report, U.S. Railroad Retirement Board
 

StatisticalTables 53

Item 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 

RAILROAD RETIREMENT ACCOUNTReceipts

Tax transfers 1..................................................................... $2,712.7 $2,659.8 $3,140.2 $3,392.2 $3,760.8 $3,586.7 $3,562.9 $3,822.9 $3,730.4 $3,120.0Interest and profit on investments 2....................................... 12.3 11.4 9.0 14.0 17.2 16.8 16.4 15.8 11.0 (18.6)Transfers from the National RR Investment Trust 3.................. 1,744.0 2,026.0 1,581.0 1,429.0 1,191.0 1,410.0 1,821.0 1,809.0 1,794.0 2,280.0Transfers from the SSEB Account 3....................................... 255.0 19.0 171.0 93.0 129.0 ........ (296.0) 91.0 191.0 (83.0)Loan repayments from RUI Account 4..................................... 48.4 ........ ........ ........ ........ ........ ........ ........ ........ ........ Loan repayments from DBP Account 4..................................... ........ ........ ........ 4.5 ........ ........ ........ ........ ........ ........ 

Expenditures

Benefit payments 5............................................................... $4,600.3 $4,775.0 $4,906.2 $5,044.0 $5,106.8 $5,229.0 $5,321.4 $5,446.1 $5,548.2 $5,591.5Financial Interchange adjustment 6.......................................... (88.5) (141.9) (166.6) (164.0) (162.3) (146.5) ........ ........ ........ ........ Net transfers to administration............................................. 73.6 69.6 70.2 69.3 72.1 72.3 76.7 85.7 84.1 88.4Loans to RUI Account......................................................... ........ ........ ........ ........ ........ ........ ........ ........ ........ 22.0Loans to DBP Account 7...................................................... ........ ........ ........ 4.5 ........ ........ ........ ........ ........ ........ 

SOCIAL SECURITY EQUIVALENT BENEFIT ACCOUNT 8Receipts

Tax transfers 1..................................................................... $2,675.3 $2,878.5 $2,954.1 $3,163.1 $3,389.3 $3,097.5 $3,113.8 $3,267.3 $3,129.8 $2,594.0Interest and profit on investments 2....................................... 21.9 20.1 22.4 21.9 24.3 18.6 14.9 24.4 23.4 (9.4)Transfers under financial interchange 9.................................... 4,574.3 4,651.0 4,499.0 4,700.8 4,676.6 4,662.7 4,522.5 4,942.4 4,946.4 4,987.7Advances against financial interchange 10.............................. 3,820.4 3,738.6 3,943.0 3,886.1 3,849.9 3,926.1 4,095.4 4,109.1 4,306.4 4,793.0

Expenditures

Benefit payments................................................................ $6,291.1 $6,506.7 $6,686.9 $6,815.2 $7,035.4 $7,090.4 $7,124.5 $7,226.7 $7,403.8 $7,509.8Financial Interchange adjustment 6.......................................... 88.5 141.9 166.6 164.0 162.3 146.5 ........ ........ ........ ........ Net transfers to administration............................................. 29.6 31.4 30.1 32.3 32.9 30.0 30.5 29.8 33.4 29.4Transfers under financial interchange 11................................. 477.2 510.9 576.6 611.6 594.7 656.8 637.4 596.5 570.3 606.4Repayment of advances against financial interchange 4............ 3,946.6 3,946.3 3,863.1 4,041.9 3,982.7 3,940.1 4,054.5 4,194.3 4,202.4 4,458.2Transfers to the National RR Investment Trust/RR Account 3...... 255.0 19.0 171.0 93.0 129.0 ........ (296.0) 91.0 191.0 (83.0)

See footnotes at end of table.

Table 2.--Status of the Railroad Retirement Act accounts and trust funds, by fiscal year, 2011-2020 (In millions), cash basis

Fiscal Year
54 2021 Annual Report, U.S. Railroad Retirement Board Item 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 NATIONAL RAILROAD RETIREMENT INVESTMENT TRUST 11 Cash and investment balance at end of period 12........................... $22,119.0 $23,586.2 $24,963.7 $26,039.9 $24,483.9 $25,007.7 $26,389.6 $26,468.7 $25,332.4 $24,468.6 DUAL BENEFITS PAYMENTS ACCOUNT 13 Loans from Railroad Retirement Account 7.................................... ........ ........ ........ $4.5 ........ ........ ........ ........ ........ ........ Benefit payments........................................................................ $55.2 $48.6 $42.6 37.2 $31.9 $27.5 $23.6 $20.2 $17.1 $14.0 Repayment of loans from Railroad Retirement Account 4............... ........ ........ ........ 4.5 ........ ........ ........ ........ ........ ........ Table 2.--Status of the Railroad Retirement Act accounts and trust funds, by fiscal year, 2011-2020 (in millions), cash basis - Continued Fiscal Year

1 Net of U.S. Treasury adjustments for payroll tax refunds to certain carriers and their employees for prior periods. Includes Federal income tax transfers under section 72(r) of the

Internal Revenue Code as amended. In calendar years 2011-2012, Social Security Equivalent Benefit Account includes general revenue transfers under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 and the Middle Class Tax Relief and Job Creation Act of 2012, respectively. The final reconciliation for calendar

years 2011-2012 occurred in June 2015. In fiscal year 2012, Social Security Equivalent Benefit Account includes a one-time general revenue transfer under the Hiring Incentives toRestore Employment Act of 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 years 2017

and 2020, the Railroad Retirement Account transferred funds to the SSEB Account to pay benefits. In fiscal years 2018 and 2019, the SSEB Account transferred funds not needed 

to pay current beneefits and administrative expenses to the Railroad Retirement Account. 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 Established October 1, 1984, to keep track of the financing and payment of social security level portions of railroad retirement benefits. 9 Transfers to or from OASDHI Trust Funds under section 7(c)(2) of the 1974 Railroad Retirement Act.

10 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.11 Established February 1, 2002, for investment of railroad retirement assets.12 Source: National Railroad Retirement Investment Trust.13 Established October 1, 1981, to keep track of the financing and payment of vested dual benefits.

NOTE.--This Table has been revised to only include information from the U.S. Department of the Treasury's Monthly Treasury Statements and other resources withinthe U.S. Railroad Retirement Board's Bureau of the Actuary and Research.
 

StatisticalTables 55

Table 3.--Status of the Railroad Unemployment Insurance Account, by fiscal year, 2016-2020 (in thousands), cash basis

Fiscal year

 Item 2016 2017 2018 2019 2020RECEIPTS Taxes............................................................... $90,241 $100,030 $108,255 $105,243 $52,931 Interest............................................................ 2,514 1,945 2,480 2,058 2,284 Transfer from Administration fund under sec. 11(d) of the RUI Act........................... 13,375 12,357 11,208 9,674 9,401 Undistributed recoveries of benefit payments1...... 2,458 (2,866) (439) (42) 1,013 Loans from the RR Account................................ -- -- -- -- 22,000 Total............................................................... $108,588 $111,466 $121,504 $116,933 $87,629EXPENDITURES Benefit payments2............................................. $133,492 $105,614 $92,750 $87,768 $188,186 Funding for Office of Inspector General............... 1,080 1,260 1,522 1,421 1,363 Total............................................................... $134,572 $106,875 $94,272 $89,189 $189,549Cash balance end of period.................................... $69,019 $73,610 $100,843 $128,587 $26,667LOANS DUE RAILROAD RETIREMENT ACCOUNT Loans............................................................... -- -- -- -- $22,000 Interest Accrued................................................. -- -- -- -- -- Repayment from RUI Account............................. -- -- -- -- -- Due RR Account end of period............................ -- -- -- -- $22,000

1 Net of distributed payments.2 In accordance with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, amounts reflect a reduction of 7.3% under sequestration for days of unemployment

 and sickness after September 30, 2014, 6.8% for days after September 30, 2015, 6.9% for days after September 30, 2016, 6.6% for days after September 30, 2017, 6.2% for days after September 30, 2018, and 5.9% for days after September 30, 2019.
56 2021 Annual Report, U.S. Railroad Retirement Board Table 4.--Status of the RUIA Administration Fund, by fiscal year, 2011-2020 (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 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 2018...................................... 25,621 17,429 11,208 8,467 2019...................................... 26,203 16,066 9,674 8,930 2020...................................... 27,186 15,253 9,401 11,463 

1 Expenditures for each year included encumbrances as of end of year. Fiscal years 2011-2020 reflect reallocation of prior 

period administrative expenses between the Railroad Retirement Act and Railroad Unemployment Insurance Act programs.

2 Transfers to the Railroad Unemployment Insurance Account are based on the excess of the accrual balance on the prior

September 30 over $6,000,000.
 

StatisticalTables 57

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 YEAR2011 ............................ 672,484 190,100 36,259 46,850 121,422 138,253 110,372 4,136 745 9,881 4,003 9,5982012 ............................ 668,957 189,909 37,370 45,066 121,614 139,741 106,268 4,081 739 9,687 3,824 9,6602013 ............................ 664,055 189,569 39,506 41,745 121,530 140,894 102,186 3,965 703 9,463 3,666 9,7102014 ............................ 661,069 190,224 41,554 37,891 122,086 142,626 98,435 3,868 688 9,164 3,506 9,7472015 ............................ 656,847 190,114 43,141 34,514 123,037 143,920 94,279 3,741 665 8,978 3,344 9,7042016 ............................ 654,127 190,835 44,744 31,308 122,966 145,891 90,919 3,660 652 8,695 3,187 9,7092017 ............................ 648,277 190,301 46,180 27,990 122,050 146,850 87,817 3,528 623 8,478 3,037 9,7082018 ............................ 641,470 189,571 47,436 25,059 120,222 147,708 84,710 3,378 604 8,232 2,903 9,7602019 ............................ 633,742 188,372 48,475 22,552 117,831 148,163 81,959 3,277 576 7,957 2,743 9,7642020 ............................ 622,932 186,357 49,278 19,996 114,444 147,412 79,406 3,176 570 7,726 2,566 9,746AVERAGE AMOUNT2011 ............................ ......... $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 1,0782018 ............................ ......... 2,817 2,474 2,746 42 1,035 1,721 1,367 1,902 1,110 1,114 1,1182019 ............................ ......... 2,912 2,564 2,822 42 1,065 1,780 1,401 1,942 1,157 1,152 1,1682020 ............................ ......... 2,985 2,625 2,871 42 1,088 1,840 1,437 1,992 1,195 1,192 1,203

1 Includes annuities to parents and partition payments to spouses and divorced spouses where the employee is deceased or not otherwise entitled to an annuity. On 

 September 30, 2020, there were 15 parents' annuities in current-payment status averaging $952 and 2,240 partition payments averaging $324.2 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 gradually increases, from age 65 to 67, for those born between 1937 and 1960. It is age 67 for those born after 1959 and age 65 for those born before 1938.

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, 2011-2020

Fiscal year
58 2021 Annual Report, U.S. Railroad Retirement Board Retired employees Spouses and Widowed Supple- divorced Aged Disabled mothers Remarried Divorced Total1 Age Disability mental2 spouses widow(er)s widow(er)s (fathers) Children widow(er)s widow(er)s NUMBER AWARDED 2011.......................... 39,647 10,542 3,086 7,087 11,301 6,053 173 110 417 158 718 2012.......................... 38,649 10,054 2,858 6,778 11,479 5,828 181 115 454 164 734 2013.......................... 38,094 10,211 2,324 6,502 11,444 5,995 164 111 456 146 739 2014.......................... 37,294 10,210 1,800 6,673 11,495 5,582 133 111 398 144 745 20153........................ 36,316 10,059 1,686 6,194 11,300 5,546 120 99 462 151 696 2016......................... 35,950 10,236 1,682 5,910 11,373 5,319 123 94 380 116 715 2017......................... 33,540 9,121 1,562 5,178 10,758 5,484 86 86 390 127 746 2018......................... 31,795 8,665 1,662 4,155 10,459 5,411 78 94 379 123 766 2019......................... 28,997 7,663 1,767 3,294 9,799 5,036 100 88 394 107 748 2020......................... 26,493 7,203 1,713 2,386 8,748 5,153 87 90 379 79 655

Cumulative 1937-2020 5,358,807 1,555,946 533,788 537,671 1,261,747 1,072,525 19,399 85,869 240,724 16,531 31,049AVERAGE AMOUNT2011......................... ........ $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 1,049

2013......................... ........ 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 1,2092018......................... ........ 3,188 2,775 41 1,054 2,188 1,864 1,864 1,386 1,270 1,2222019......................... ........ 3,173 2,880 41 1,057 2,299 1,563 1,940 1,487 1,249 1,2712020......................... ........ 3,256 2,937 41 1,105 2,349 1,681 2,053 1,549 1,334 1,297

Table 6.--Number and average amount of retirement and survivor annuities awarded during year, by type of annuitant and fiscal year, 2011-2020

Fiscal year

1 Excludes partition payments to spouses and divorced spouses where the employee is deceased or not otherwise entitled to an annuity. Includes annuities to parents. 

Fiscal year 2020 total includes no annuities to parents. Cumulative total includes 3,558 annuities to parents.

2 Excludes partition payments to spouses and divorced spouses where the employee is deceased. Averages are after court-ordered partitions.3 Supplemental annuity awards exclude more than 1,000 restorations due to Legal Opinion 2014-2, Reductions to Supplemental Annuities for 401(k) Distributions.

NOTE.--Cumulative figures reflect adjustments not made in yearly data, but average amounts for each year include effects of changes in rates made by the end of the year. 
 

StatisticalTables 59

Total1 Retirement benefits2 Survivor benefits

 Monthly Monthly Monthly

State3 Number amount Number amount Number amount

Alabama........................................................................... 11,300 $19,644 9,400 $16,211 2,000 $3,429Alaska............................................................................. 200 300 200 240 (4) 59Arizona............................................................................ 11,900 20,720 9,900 17,385 1,900 3,313Arkansas......................................................................... 12,100 20,547 10,100 17,377 1,900 3,150California......................................................................... 29,700 49,219 24,500 40,888 5,200 8,303Colorado.......................................................................... 10,500 18,867 9,100 16,428 1,400 2,428Connecticut....................................................................... 2,900 6,144 2,400 5,212 500 930Delaware.......................................................................... 3,100 5,734 2,700 5,103 400 629Washington DC.................................................................. 400 633 300 561 100 72Florida............................................................................. 35,100 61,207 29,600 52,311 5,400 8,858Georgia............................................................................ 20,600 36,251 17,400 30,597 3,200 5,643Hawaii.............................................................................. 200 281 100 229 (4) 52Idaho................................................................................ 5,600 9,792 4,800 8,338 800 1,444Illinois............................................................................... 37,600 64,493 31,300 53,894 6,200 10,546Indiana............................................................................. 18,200 31,380 15,000 25,910 3,100 5,445Iowa................................................................................. 10,900 18,888 9,200 15,903 1,700 2,961Kansas............................................................................. 16,300 29,015 13,800 24,589 2,500 4,411Kentucky.......................................................................... 16,600 27,572 13,500 22,456 3,000 5,100Louisiana.......................................................................... 8,800 14,995 7,200 12,441 1,500 2,546Maine............................................................................... 2,600 4,091 2,100 3,304 500 785Maryland.......................................................................... 10,100 17,405 8,400 14,839 1,600 2,558Massachusetts................................................................... 4,500 7,896 3,800 6,790 700 1,104Michigan.......................................................................... 14,900 25,090 12,100 20,481 2,600 4,582Minnesota......................................................................... 15,900 26,938 13,200 22,619 2,600 4,301Mississippi........................................................................ 6,600 11,108 5,400 8,997 1,200 2,106Missouri........................................................................... 22,800 38,980 19,200 33,012 3,500 5,935Montana........................................................................... 7,400 13,161 6,400 11,347 1,000 1,806Nebraska.......................................................................... 19,000 36,381 16,800 32,360 2,100 3,998Nevada............................................................................. 3,900 6,594 3,300 5,581 600 1,008New Hampshire.................................................................. 1,100 1,871 900 1,579 200 290New Jersey....................................................................... 9,900 19,446 8,200 16,545 1,700 2,898New Mexico....................................................................... 4,800 8,194 3,900 6,763 800 1,422New York.......................................................................... 23,100 44,071 19,000 37,426 4,000 6,632North Carolina..................................................................... 11,800 19,453 9,600 16,032 2,200 3,412North Dakota...................................................................... 3,900 7,039 3,300 5,917 600 1,117See footnotes at end of table.

Table 7.--Retirement and survivor benefits in current-payment status on September 30, 2020, by class and state (Amounts in thousands)
60 2021 Annual Report, U.S. Railroad Retirement Board Total1 Retirement benefits2 Survivor benefits Monthly Monthly Monthly State3 Number amount Number amount Number amount Ohio................................................................................. 26,500 $43,848 21,200 $34,927 5,300 $8,894 Oklahoma......................................................................... 5,800 9,888 4,700 8,046 1,100 1,833 Oregon............................................................................. 8,900 14,878 7,400 12,304 1,500 2,554 Pennsylvania...................................................................... 34,800 60,737 28,300 49,870 6,500 10,847 Rhode Island...................................................................... 700 1,304 600 1,125 100 178 South Carolina.................................................................... 8,400 14,571 7,000 12,299 1,400 2,263 South Dakota..................................................................... 2,300 4,001 2,000 3,524 300 474 Tennessee........................................................................ 14,600 25,020 12,100 20,897 2,400 4,108 Texas............................................................................... 41,900 75,768 34,900 63,784 6,800 11,892 Utah.................................................................................. 5,900 10,533 4,900 8,848 900 1,676 Vermont........................................................................... 800 1,168 600 939 100 229 Virginia............................................................................. 18,400 32,115 15,000 26,686 3,300 5,416 Washington....................................................................... 12,500 21,571 10,300 17,786 2,100 3,771

West Virginia....................................................................... 8,900 15,324 7,100 12,349 1,700 2,965Wisconsin......................................................................... 11,300 18,811 9,500 15,727 1,800 3,069Wyoming.......................................................................... 4,800 9,183 4,200 8,141 500 1,034

Outside United States:

Canada............................................................................. 1,900 1,192 1,300 649 600 543Mexico............................................................................. 200 175 100 60 100 115Other................................................................................ 500 703 400 464 200 238 Total5............................................................................... 622,900 $1,084,197 517,500 $908,097 103,200 $175,376

Table 7.--Retirement and survivor benefits in current-payment status on September 30, 2020, by class and state (Amounts in thousands) - Continued

1 Includes 2,240 partition payments to spouses and divorced spouses where the employee is deceased or not otherwise entitled to an annuity. 2 Includes 114,400 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, 2020.4 Less than 50.5 Includes beneficiaries whose state of residence was unknown.NOTE.--Retirement benefits include regular and supplemental employee annuities, spouse annuities and divorced spouse annuities. Survivor benefits include annuities to aged and disabled widow(er)s, widowed mothers and fathers, remarried and divorced widow(er)s, children, parents, and widow(er)s annuities temporarily being paid at spouse annuity rates pending final adjudication of survivor annuities. Benefit amounts exclude social security payments to dual beneficiaries.
 

StatisticalTables 61

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

benefit years 2015-2016 through 2019-2020, cash basis

Item 2015-2016 2016-2017 2017-2018 2018-2019 2019-20201

Qualified employees................................. 254,200 260,700 242,100 235,400 234,600

Maximum daily benefit rate...................... $72 $72 $72 $77 $78

UNEMPLOYMENT BENEFITS2

Gross amount of benefits paid (thousands)3 $75,337 $59,888 $42,588 $37,994 $182,468Payments: Number................................................... 112,300 90,000 63,000 52,300 226,500

 Average amount per two week claim period......................................... $591 $594 $601 $644 4$648

Beneficiaries............................................... 16,400 13,200 9,300 7,900 23,100

Applications received................................ 24,100 16,800 12,500 12,200 43,900

Claims received.......................................... 137,000 108,100 75,500 63,000 171,300

Normal benefit accounts exhausted........ 3,300 3,100 2,100 1,700 3,400

SICKNESS BENEFITS2

Gross amount of benefits paid (thousands)3 $73,892 $77,075 $77,346 $73,492 $79,968Payments: Number................................................... 109,700 114,400 115,000 102,100 108,100

 Average amount per two week claim period......................................... $592 $597 $597 $638 $650

Beneficiaries............................................... 16,000 16,100 15,700 14,400 15,400

Applications received................................ 19,800 20,100 19,600 17,900 19,800

Claims received.......................................... 129,200 133,800 133,700 119,600 127,200

Normal benefit accounts exhausted........ 3,100 3,400 3,500 3,000 3,300

1 Starting in May 2020, includes temporary extended unemployment benefits and enhanced unemployment benefits authorized by the Coronavirus Aid, Relief, and 

Economic Security (CARES) Act of 2020. Gross benefits for these temporary payments were $85,086,000 for 2019-2020.

2 In accordance with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, 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 afterSeptember 30, 2015, 6.9% for days after September 30, 2016, 6.6% for days after September 30, 2017, 6.2% for days after September 30, 2018 and 5.9% for days after September 30, 2019.

3 In Annual Reports through 2019, information on this table, with respect to benefits paid, was reported on a net basis. Beginning with 2020’s report, these amounts

are now shown on a gross basis.

4 Average payment does not include enhanced unemployment benefit payments made under the CARES Act.
Table 9.--All employees, new entrants, employees qualified for RUIA benefits, and related data, by employer, 2019

All employees New entrants Creditable Compensation (thousands)

With

With 12 months sufficient Qualified Qualified

of service service for for RUIA for RUIA

Type or name of employer Total in 2019 RRA annuity benefits Total benefits Tier I Tier II RUIA

TYPE OF EMPLOYER Class I line-haul railroads................................................ 155,262 123,095 124,979 149,781 4,292 2,615 $12,530,937 $11,769,171 $2,706,284Non-Class I line-haul railroads and switching & terminal companies................................. 23,692 17,451 15,391 21,336 2,404 1,351 1,462,029 1,407,812 383,008Commuter railroads1................................................ 50,029 41,162 37,005 48,178 2,682 1,667 4,214,158 3,839,495 887,036Car-loan companies......................................................... 2,523 2,010 1,314 2,406 204 134 157,728 151,978 43,735Labor organizations......................................................... 2,342 1,789 1,667 1,955 189 70 191,653 161,741 35,251Miscellaneous employers2....................................... 4,989 3,896 2,939 4,715 502 356 405,835 359,074 84,245 Total 238,837 189,403 183,295 228,371 10,273 6,193 $18,962,340 $17,689,269 $4,139,560SELECTED EMPLOYERS BNSF Railway Co............................................................. 46,425 38,716 36,452 45,357 1,226 874 $4,023,083 $3,730,822 $833,523

Canadian National, U.S. Operations Bessemer and Lake Erie Railroad Co......................... 65 57 56 64 1 1 4,802 4,771 1,183

 Chicago Central and Pacific Railroad Co.................. 303 250 230 301 9 9 26,695 24,440 5,474

 Grand Trunk Western Railroad Co............................. 833 650 611 808 47 36 72,648 66,258 14,523

 Illinois Central Railroad Co......................................... 4,324 3,472 3,235 4,240 183 147 382,254 350,073 77,314 Pittsburgh and Conneaut Dock Co............................. 32 23 26 31 ..... ..... 1,926 1,926 558 Wisconsin Central Transportation Corp.................... 2,494 1,993 1,749 2,426 143 103 227,620 207,797 44,348Canadian Pacific, Soo Line Corporation Dakota, Minnesota & Eastern Railroad Corp............. 738 603 518 697 37 16 53,262 51,705 12,729

 Delaware and Hudson Railway Co. Inc...................... 212 167 178 207 13 11 14,503 14,170 3,778

 Soo Line Railroad Co.................................................. 2,318 1,847 1,764 2,215 108 82 201,740 183,526 40,206

CSX Transportation Inc................................................... 21,301 17,312 19,401 20,619 414 234 1,777,650 1,671,166 363,459Kansas City Southern Railway Co.................................. 3,137 2,508 2,325 2,997 190 105 244,351 231,140 54,536 Gateway Eastern Railway Co...................................... 1 ..... 1 1 ..... ..... 55 55 11

 Texas Mexican Railway Co.......................................... 295 233 176 281 32 21 23,755 22,318 5,094

National Railroad Passenger Corp. (Amtrak)................ 20,989 16,670 15,402 19,951 1,192 682 1,616,286 1,504,044 365,153

Norfolk Southern Corp..................................................... 27,814 20,769 21,697 26,523 1,097 505 2,058,823 1,952,933 474,529

Union Pacific Railroad Co............................................... 44,970 34,495 36,560 43,014 792 471 3,417,770 3,256,071 775,019

1 Includes National Railroad Passenger Corp. (Amtrak).2 Includes lessor companies, employer associations and miscellaneous carrier affiliates.NOTE.--Tier I compensation excludes miscellaneous compensation taxable at the tier I tax rate.

62 2021 Annual Report, U.S. Railroad Retirement Board
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