United States Railroad Retirement Board

2016 Annual Report
U.S. Railroad Retirement Board

Mission Statement

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

and unemployment/sickness insurance benefit programs for railroad workers and 

their families under the Railroad Retirement Act and the Railroad Unemployment 

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

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

Railroad Retirement Board also administers aspects of the Medicare program and 

has administrative responsibilities under the Social Security Act and the Internal 

Revenue Code.

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

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

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

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

and respond to all inquiries promptly, accurately and clearly.

If you have comments or suggestions regarding the information

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

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

Public Affairs

U.S. Railroad Retirement Board 

844 North Rush Street

Chicago, IL 60611-1275
UNITED STATES

RAILROAD RETIREMENT BOARD

2016 Annual Report

For Fiscal Year Ended September 30, 2015

The Report in Brief 1

A Review of Operations 6

Administrative Developments 34

Legal Rulings 43

Statistical Tables 47

www.rrb.gov

1

The Report in Brief

Benefits and Beneficiaries

Benefits paid under the Railroad Retirement and Railroad Unemployment 

Insurance Acts totaled almost $12.3 billion in the fiscal year ending 

September 30, 2015. Retirement and survivor benefits were paid by the RRB to about 

558,000 beneficiaries during the fiscal year, of whom 525,000 were on the RRB’s 

annuity rolls at the end of the year. Approximately 25,000 railroad employees were paid 

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

payments under both the Railroad Retirement Act and the Railroad Unemployment 

Insurance Act.

Retirement and survivor benefit payments of $12.2 billion during fiscal year 

2015 were $277.6 million more than payments in the prior year. Employee and 

spouse annuitants were paid some $10.0 billion, accounting for 82 percent of the 

total payments. Employees received almost $7.1 billion in age annuities (including 

$1.2 billion to annuitants full retirement age and over originally awarded a disability 

annuity), $1.2 billion in disability annuities and $61.1 million in supplemental 

annuities, while spouses and divorced spouses received almost $1.7 billion.1

 Survivors 

were paid $2.2 billion in annuities and some $3.0 million in lump-sum benefits. The 

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

about 4,000 from fiscal year 2014.

Railroad retirement and unemployment insurance benefits totaling almost 

$12.3 billion were paid by the Railroad Retirement Board (RRB) to about 581,000 

beneficiaries in fiscal year 2015. Financial reports issued in 2016 on the 

solvency of the railroad retirement and railroad unemployment insurance systems 

were both favorable. Total railroad retirement system assets 

equaled $26.3 billion as of September 30, 2015. 

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

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

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

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

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

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

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

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

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

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

report, annuitants full retirement age and over originally awarded a disability annuity are included in the 

employee age and service counts because a disability annuity converts to an age and service annuity when 

the annuitant attains full retirement age.
2 2016 Annual Report, U.S. Railroad Retirement Board

Gross unemployment and sickness benefits paid in fiscal year 2015 totaled about

$104.1 million. Net benefits totaled nearly $83.2 million after adjustment for recoveries of 

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

Total gross benefit payments decreased by approximately $2.1 million while net benefit 

payments decreased by some $1.2 million from the preceding year. In accordance with the 

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

Control Act of 2011, amounts reflect a sequestration reduction of 9.2 percent for days of 

unemployment and sickness after February 28, 2013, 7.2 percent for days after September 

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

Gross unemployment benefits decreased by some 10 percent compared to the previous 

year. Unemployment benefits were at non-recessionary levels due to the phase-out 

of temporary extended benefits. Gross unemployment benefits totaling $36.7 million 

($34.0 million net), including $0.3 million net in temporary extended benefits under the 

American Recovery and Reinvestment Act of 2009 and the Worker, Homeownership, 

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

Insurance Reauthorization, and Job Creation Act of 2010, the Temporary Payroll Tax 

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

and the American Taxpayer Relief Act of 2012, were paid to 9,200 claimants, while gross 

sickness benefits of $67.4 million ($49.2 million net) were paid to 16,000 claimants.

Financial Reports

The RRB’s 2016 railroad retirement financial report to Congress, which addressed 

the period 2016-2040, was generally favorable, concluding that, barring a sudden, 

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

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

projection period. The long-term stability of the system, however, is not assured. Under the 

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

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

The RRB’s 2016 railroad unemployment insurance financial report was also generally 

favorable. Even as projected maximum benefit rates increase 36 percent (from $72 to $98) 

from 2015 to 2026, experience-based contribution rates maintain solvency. The report 

also predicted average employer contribution rates well below the maximum throughout 

the projection period. A 1.5 percent surcharge was imposed in calendar year 2016 in 

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

the report projects a 1.5 percent surcharge in 2017 and 2018, with a surcharge of 1.5 

percent in 2019 predicted under the pessimistic assumption, and likely under both the 

intermediate and optimistic assumptions.
 The Report in Brief 3

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

fiscal year 2015 showed that, as of September 30, 2015, the net asset value of the Trustmanaged assets was $24.5 billion. This represented a decrease from $26.1 billion in the 

previous year, with a net investment return for the year of −1.5 percent. The ending 

balance also reflects a transfer of $1.2 billion to the U.S. Treasury for the payment of 

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

those maintained at the Treasury, equaled $26.3 billion.

The 2016 railroad retirement and railroad unemployment insurance financial reports 

and the National Railroad Retirement Investment Trust’s 2015 annual management report 

are available at www.rrb.gov.

Service Delivery

Customer Service Plan

In fiscal year 2015, customers received benefit services within the timeframes promised 

in the RRB’s Customer Service Plan 98.8 percent of the time.

Service Enhancements

The RRB continued to improve its Employer Reporting System, adding the last remaining form that employers can file electronically and bolstering security. The agency also 

made two online reference databases available to help examiners properly adjudicate 

applications for disability annuities.

Office of Inspector General

During fiscal year 2015, the Office of Inspector General continued its independent oversight of agency operations and its efforts to combat fraud, waste, and abuse. This included 

the issuance of 8 audit reports that recommended improvements in agency operations.

Investigative activities resulted in 19 arrests, 49 indictments and/or informations, 43 

convictions, 27 civil judgments, 57 referrals to the Department of Justice, and more than 

$202 million in financial accomplishments. This reflects potential fraud amounts related 

to programs administered exclusively by the RRB and potential fraud amounts from other 

Federal programs such as Medicare or social security which were identified during Office of 

Inspector General joint investigative work.
4 2016 Annual Report, U.S. Railroad Retirement Board

Selected Data on Benefit Operations

 Fiscal Year Fiscal Year

 Retirement-Survivor 2015 2014

Employee age annuities

Number awarded 10,100 10,200

Awarded Age Annuity

 Number being paid at end of period 190,100 190,200

 Average being paid at end of period $2,625 $2,536

Disability converted to age annuity 1

 Number being paid at end of period 43,100 41,600

 Average being paid at end of period $2,322 $2,252

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 11,000 11,700

Number of occupational disability annuities

 being paid at end of period 23,500 26,200

Average total disability annuity

 being paid at end of period $1,892 $1,846

Average occupational disability annuity

 being paid at end of period $3,025 $2,956

Supplemental employee annuities2

Number awarded 6,200 6,700

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

Average being paid at end of period $42 $42

Spouse and divorced spouse annuities

Number awarded, total 11,300 11,500

Number being paid to divorced

 spouses at end of period 4,700 4,500

Number being paid at end of period, total 143,900 142,600

Average being paid to divorced spouses

 at end of period $610 $590

Average being paid at end 

 of period, total $975 $946

Survivor annuities

Number awarded to aged widow(er)s 5,500 5,600

Number awarded, total 7,100 7,100

Number being paid to aged widow(er)s

 at end of period 94,300 98,400

Number being paid at end of period, total 120,700 125,400

Average being paid at end of period to

Aged widow(er)s $1,576 $1,525

Disabled widow(er)s3 $1,285 $1,250

Widowed mothers (fathers) $1,835 $1,798

Remarried widow(er)s $1,036 $1,005

Divorced widow(er)s $1,040 $1,005

Children $1,055 $1,027

Partition payments4

Number being paid at end of period 1,400 1,300

Average being paid at end of period $308 $302

Lump-sum survivor benefits awarded

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

Average lump-sum death benefit $927 $925

Number of residual payments 5/ 5/

Average residual payment $2,684 $2,304
 The Report in Brief 5

Selected Data on Benefit Operations (Continued)

 Fiscal Year Fiscal Year

 Employees and Earnings6 2015 2014

Average employment 248,000 240,000

Creditable earnings, Railroad Retirement

 Act (billions):

 Tier I $19.83 $18.76

 Tier II $18.26 $17.47

Creditable earnings, Railroad

 Unemployment Insurance Act (billions) $4.32 $4.11

 Benefit Year Benefit Year

 Unemployment-Sickness7 2014-2015 2013-2014

Qualified employees 248,200 247,600

Unemployment benefits

Net amount paid (millions) $30.88 ($34.0)9 $39.98 

Beneficiaries 7,600 (9,200)9 10,000

Number of payments 52,100 69,700

Normal benefit accounts exhausted 1,900 2,300

Average payment per 2-week registration period $578 $550

Sickness benefits

Net amount paid (millions) $48.4 ($49.2)9 $45.3

Beneficiaries 15,500 (16,000)9 15,600

Number of payments 102,700 101,100

Normal benefit accounts exhausted 2,800 2,600

Average payment per 2-week registration period $572 $555

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

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

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

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

after court-ordered partitions. Fiscal year 2015 average includes one supplemental annuity, averaging $70, awarded 

under the 1937 Act.

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

widow(er)s’ annuities.

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

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

5 Fewer than 50.

6 Except for fiscal year 2014 employment, all figures in this section are preliminary.

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

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

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

8 Benefit years 2013-2014 and 2014-2015 include $2.4 million and -$0.3 million, respectively, in temporary extended 

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

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

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

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

by December 31, 2013.

9 Data in parentheses are for fiscal year (October 1, 2014 - September 30, 2015). Unemployment benefits include 

−$0.3 million in temporary extended unemployment benefits.
A Review of Operations

6

RAILROAD RETIREMENT AND 

SURVIVOR PROGRAM

As of September 30, 2015, total railroad retirement system assets, including those 

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

Railroad Retirement Investment Trust (the “Trust” or “NRRIT”), equaled $26.3 billion, a 

decrease of $1.5 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 seven trustees is 

empowered to invest Trust assets in non-governmental assets, such as equities and debt, as 

well as in governmental securities. 

FINANCIAL OPERATIONS - U.S. TREASURY ACCOUNTS

During fiscal year 2015, railroad retirement and survivor benefit payments were 

financed through four U.S. Treasury accounts.

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

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

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

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

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

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

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

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

respectively. The four accounts together incurred $12.2 billion in benefit obligations 

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

Security Administration) during fiscal year 2015.

At the end of fiscal year 2015, total railroad retirement system assets equaled 

$26.3 billion. During fiscal year 2015, benefits totaling approximately $12.3 billion 

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

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

Net unemployment and sickness benefits totaled $86.3 million. 
 A Review of Operations 7

Financing Sources

Payroll Taxes

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

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

to $6.4 billion, representing 51.6 percent of total financing sources (excluding a decrease 

of $1,556.1 million, mostly due to a change in NRRIT net assets) and $443.6 million more 

than in fiscal year 2014.

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

security taxes. The 2015 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 2015 was $118,500, and all earnings were 

subject to the 1.45 percent Medicare tax.

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

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

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

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

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

and $87,000 in 2015 and 2014, respectively, was 4.9 percent on employees in 2015 and 4.4 

percent in 2014. It was 13.1 percent on employers in 2015, and 12.6 percent in 2014.

Tier I and tier II taxes for fiscal year 2015 amounted to $3.1 billion and $3.3 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 2015 amounted to $4.1 billion.

(text continued on page 9)
8 2016 Annual Report, U.S. Railroad Retirement Board

Costs - Fiscal Year 2015 (In Millions)

TOTAL: $12,439.9

RETIREMENT AND SURVIVOR PROGRAM

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

Financing Sources - Fiscal Year 2015 (In Millions)

GROSS TOTAL: $12,476.71

1

Excludes −$1,556.1 million as shown under Other Financing Sources on page 11.

National Railroad 

Retirement 

Investment Trust

Transfers-In 9.5%

$1,191.0

Interest on

Investments 0.3%

$41.4

Federal Income 

Taxes 5.8%

$718.0

Payroll Taxes 51.6%

$6,432.5 Financial Interchange 32.5%

$4,057.0

General 

Appropriations 0.3%

$36.8

Benefit Payments 98.1%

$12,199.7

Salaries and 

Expenses 1.1%

$139.1

Interest 

Expense 0.8%

$101.1
 A Review of Operations 9

Interest on Investments and Other Revenue

Interest revenue increased from $39.3 million in fiscal year 2014 to $41.4 million in 

fiscal year 2015. 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 2015 amounted to $639 million during the year. 

Original transfers for fiscal year 2014 totaled $580 million. Net income tax transfers after 

adjustments were $720 million for fiscal year 2015, including an $81 million adjustment 

for calendar year 2011. Net transfers in fiscal year 2014 were $620 million, including 

$40 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 2006 

through 2015, including reconciliation adjustments through 2011.

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 2015 and 2014 were $32.0 million and $39.0 million, 

respectively. These amounts include Federal income tax transfers for 2015 and 2014. 

The amount appropriated for fiscal year 2015 was 17.9 percent less than fiscal year 2014, 

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

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

unnegotiated checks was $150,000 for fiscal years 2015/2014, and also $150,000 for fiscal 

years 2014/2013. (text continued on page 13)
10 2016 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 2006-2015 (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

2006 $125 $312 $7

2007 135 334 6

2008 144 325 5

2009 144 304 3

2010 159 315 3

2011 160 300 3

2012 194 318 4

2013 199 333 3

2014 250 348 2

2015 263 386 2

Reconciliation adjustments4

2006 (2012) 24 −39 −1

2007 (2012) 35 −64 1

2008 (2012) 24 −69 1

2009 (2013) 20 2 1

2010 (2013) 23 16 1

2011 (2015) 32 49 --
 A Review of Operations 11

Railroad Retirement and Survivor Program 

Consolidated Financing Sources, 

Costs and Net Position (Millions)1

For the Fiscal Year Ended September 30 2015 2014

 

Financing Sources:

Payroll Taxes $6,432.5 $5,973.2

Financial Interchange 4,057.0 4,037.5

Interest on Investments and Other Revenue 41.4 39.3

Federal Income Taxes 718.0 616.0

General Appropriations 36.8 39.2

Other (1,566.1) 1,127.9

Transfers to the National 

 Railroad Retirement Investment Trust 0.0 0.0

Transfers from the National 

 Railroad Retirement Investment Trust 1,191.0 1,429.0

 Total Financing Sources 10,910.6 13,262.1

Costs:

Benefit Payments 12,199.7 11,950.8

Interest Expense 101.1 104.3

Salaries and Expenses2 139.1 134.4

Other (29.7) (18.8)

 Total Costs 12,410.2 12,170.7

Financing Sources over Costs (1,499.6) 1,091.4

Net Position - Beginning of Period 26,647.4 25,556.0

Net Position - End of Period $25,147.8 $26,647.4

1 Prepared on an accrual basis of accounting. 

2

 Includes unemployment and sickness insurance salaries and expenses of approximately 

 $18.1 million and $17.2 million in each of the fiscal years 2015 and 2014, respectively.
12 2016 Annual Report, U.S. Railroad Retirement Board

Market value of assets managed 

by NRRIT on September 30, 2015 $24.5 billion

Rate of return of investment portfolio 

managed by NRRIT for full year 

ended September 30, 2015 −1.53%

Source: NRRIT 

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

Railroad Retirement Board’s website at www.rrb.gov.

National Railroad Retirement Investment Trust (NRRIT) 

Fiscal Year 2015 Summary
 A Review of Operations 13

Other Financing Sources

Other financing sources consisted of $6.9 million to be provided by the Office of 

Personnel Management to pay future retirement benefits to RRB employees and 

$24.8 million from the railroad unemployment trust funds in transfers-in for current 

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

in NRRIT net assets of $1,574.2 million, transfers-out of $7.4 million for salaries and 

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

of $0.1 million, and a $2.0 million decrease in unexpended appropriations.

Costs 

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

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

unemployment and sickness insurance program. Consequently, of the $139.1 million and 

$134.4 million shown on page 11 for salaries and expenses in fiscal years 2015 and 2014, 

respectively, about $18.1 million for fiscal year 2015 and $17.2 million for fiscal year 2014 

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

costs for fiscal year 2015 and $0.9 million for fiscal year 2014 were for the unemployment 

and sickness insurance program. 

Excluding $19.0 million from total costs of $12.4 billion for fiscal year 2015 and 

$18.1 million from total costs of $12.2 billion for fiscal year 2014, total costs for the railroad 

retirement and survivor program for fiscal year 2015 increased $238.3 million, or 

2.0 percent.

Benefit Payments

In fiscal year 2015, railroad retirement benefit payments increased $248.9 million, or 

almost 2.1 percent, to about $12.2 billion on an accrual basis, including $31.9 million in 

vested dual benefits.

Interest Expense

Interest expense of $101.1 million represents interest on the financial interchange 

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

Salaries and Expenses

Excluding unemployment and sickness insurance salaries and expenses of 

$18.1 million for fiscal year 2015 and $17.2 million for fiscal year 2014, salaries and 

expenses for the railroad retirement and survivor program were about $121.0 million for 

fiscal year 2015 and about $117.2 million for fiscal year 2014, a $3.8 million or 

3.2 percent increase. Adjusted by the $18.1 million in salaries and expenses and 

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

year 2015 administrative expenses for the railroad retirement and survivor program were 

about 0.97 percent of total costs.
14 2016 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 $6.0 million for the railroad retirement and survivor 

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

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

approximately $32.9 million in reimbursements from the Centers for Medicare & Medicaid 

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

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

of approximately $2,500.

NATIONAL RAILROAD RETIREMENT 

INVESTMENT TRUST OPERATIONS 

Funds not needed immediately for benefit payments or administrative expenses are 

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

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

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

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

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

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

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

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

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

the six rail trustees.

During fiscal year 2015, the net asset value of Trust-managed assets decreased from 

$26.1 billion on October 1, 2014, to $24.5 billion on September 30, 2015. This includes 

$1.2 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 −1.5 percent.

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

Treasury accounts) grew from $20.7 billion in 2002 to $26.3 billion as of the end of fiscal 

year 2015, after net transfers for benefit payments of approximately $17.8 billion over the 

same time frame.

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

fiscal year 2015, which is available on the RRB’s website at www.rrb.gov.

BENEFIT OPERATIONS

Retirement and survivor benefits paid, including vested dual benefits and supplemental employee annuities, totaled $12.2 billion in fiscal year 2015, $278 million more than in 

fiscal year 2014. Benefits were paid to about 558,100 beneficiaries in fiscal year 2015, and 

524,800 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 

2015 and 2014, 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.

There was no cost-of-living increase effective in December 2015. Increases of 1.7 percent 

for tier I and 0.6 percent for tier II were effective December 2014, with 1.5 percent for tier I 

and 0.5 percent for tier II in December 2013.

The December 2014 and December 

2013 cost-of-living increases provided 

additional benefit payments of about 

$137 million in fiscal year 2015, compared to payments in fiscal year 2014.

Monthly retirement and survivor 

benefits being paid numbered more than 

656,800 at the end of the 2015 fiscal 

year, some 4,200 less than at the end 

of the prior year. Monthly beneficiaries 

on the rolls declined by approximately 

5,300 over the year, from 530,100 

to 524,800. 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 

2015 numbered 267,800, 1,900 less than 

at the end of the previous fiscal year. 

The number of age annuities being paid, 

including 43,100 disability annuities 

converted to age, rose slightly from 

231,800 to 233,300 over the year, while disability annuities decreased from 37,900 to 34,500. 

Supplemental annuities being paid to employees increased by nearly 1,000, numbering 

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

approximately 200, to 4,700. Spouse and divorced spouse annuities together increased by 

almost 1,300, totaling 143,900 at year-end. More than 120,700 monthly survivor benefits 

Amount 

(in millions)

 Fiscal year Fiscal year Percent

 Type of benefit 2015 2014 change

Retirement benefits

Employee annuities

Age1 $7,086.7 $6,787.9 +4.4

Disability 1,197.0 1,276.8 −6.3

Supplemental2 61.1 60.8 +0.6

Spouse and divorced

spouse annuities 1,667.4 1,599.5 +4.2

 Total 10,012.2 9,724.9 +3.0

Survivor benefits

Annuities 2,153.9 2,164.2 −0.5

Lump-sum benefits 3.0 2.9 +1.8

 Total 2,156.9 2,167.2 −0.5

Partition payments3 5.0 4.3 +15.5

 Grand total $12,174.1 $11,896.4 +2.3

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

time the annuity converts to an age and service annuity. FY 2015 and FY 2014 

include $1,161.2 million and $1,076.1 million, respectively, in payments to 

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

2Excludes partition payments to spouses and divorced spouses where the 

employee is deceased.

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

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

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

Note.--Detail may not add to total due to rounding.
16 2016 Annual Report, U.S. Railroad Retirement Board

were being paid at the end of fiscal year 2015, a decrease of 4,700 from the previous year. 

Approximately 1,400 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 2015, an increase of over 100 from the prior year.

Retirement

Regular employee annuities

Awards of regular employee annuities numbered 11,700 in fiscal year 2015, nearly 300 

less than in fiscal year 2014. Data by type of annuity awarded during the year are given in 

the table shown here.

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

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

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

retirement age (the age 

at which an employee 

can receive full benefits 

with no reduction for 

early retirement). This 

ranges from age 65 for 

those born before 1938 

to age 67 for those born 

in 1960 or later, the 

same as under social 

security. If an employee 

had any creditable 

railroad service before 

August 12, 1983, the 

retirement age for tier 

II purposes will remain 

65. The reduction for 

early retirement is 1/180 

for each of the first 36 months the employee is under full retirement age when his or her 

annuity begins and 1/240 for each additional month.

Rail employees with 30 or more years of service are eligible for regular annuities 

based on age and service at age 60. Certain early retirement reductions are applied if the 

employee first became eligible for a 60/30 annuity July 1, 1984, or later and retired at ages 

60 or 61 before 2002. Employees who retire at 60 or older with at least 30 years of railroad 

service are referred to as 60/30 retirees.

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

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

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

 

 Average

Employee annuities Age at

 awarded in Monthly Years of retirefiscal year 2015 Number Percent amount service ment

Age

Beginning at full

retirement age or over 1,500 13 $2,551 22.0 67.4

Unreduced, beginning 

at age 60 to under full

retirement age 6,000 51 3,853 37.1 60.9

Reduced, beginning at

age 62 to under full

retirement age 2,600 22 1,740 16.0 63.1

Disability 1,700 14 2,611 21.3 55.8

 Total 11,700 100 $3,042 28.3 61.5

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 $1,893 per month were 

for total disability and 900 averaging 

$3,207 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 five-sixths of all 

employees recently awarded disability 

annuities will meet the medical criteria 

for a disability freeze determination. 

Number of monthly beneficiaries, 

September 30, 2010, and 2015 (thousands)

Amount of benefits paid,

fiscal years 2010 and 2015 (millions)

1

Includes $60.3 million in fiscal year 2010 and $61.1 million 

in fiscal year 2015 for supplemental annuities.

2

Includes divorced spouses.

1

Without supplemental annuity.

2

Includes divorced spouses.

Average monthly amount,

September 30, 2010, and 2015

Employee Spouse Survivor

$7,250

$1,338

$2,187

$8,345

$1,667

$2,157

2

2010

2015

1

Employee Spouse Aged widow(er)

$2,196

$817

$1,329

$2,581

$975

$1,576

1 2

2010

2015

Employee Spouse

(includes

divorced

spouses)

Survivor

274

137 144

268

144

121

2010

2015
18 2016 Annual Report, U.S. Railroad Retirement Board

The standards for freeze determinations follow social security law and are comparable to 

the criteria for granting total disability. Also, an employee granted a disability freeze may 

qualify 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 2015, some 8,300, 

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

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

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

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

until retirement. Awards based on immediate retirement averaged $3,535 per month, 

compared to $1,849 for the 3,400 awards based on deferred retirement. Immediate retirees 

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

retirees. Of the year’s awards, 52 percent of normal age retirements were immediate. 

While 95 percent of all 60/30 retirements were immediate, only 25 percent of the reduced 

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

retirements accounted for 71 percent of the year’s disability awards.

The 267,800 retired employees on the rolls as of September 30, 2015, were being paid 

regular monthly annuities averaging $2,581. The table shown here presents data by type of 

annuity for these benefits.

Of the 34,500 disability annuities being paid, 11,000 were for total disability and 

23,500 for occupational disability. The two types of disability annuities averaged $1,892 

and $3,025, respectively. In fiscal year 2015, payments totaled over $265 million for total 

disability annuities 

and $932 million 

for occupational 

disability annuities.

Almost 188,100 

employees on the 

rolls at the end of 

fiscal year 2015 

were immediate 

retirees and their 

regular annuities 

averaged $2,987 per 

month. Annuities of 

the 79,700 deferred 

retirees averaged 

$1,622. Although 

their average 

railroad retirement annuity was much lower, a greater proportion of the deferred annuitants 

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

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

 Employee annuities Average Percent

in current-payment status monthly immediate

on September 30, 2015 Number Percent amount retirements

Age

Beginning at full

retirement age or over 20,400 8 $2,008 47

Unreduced, beginning 

at age 60 to under full

retirement age 104,800 39 3,374 92

Reduced, beginning at

age 60 to under full

retirement age 64,900 24 1,609 30

Disability converted to 43,100 16 2,322 81

age annuity1

Disability 34,500 13 2,663 80

 Total 267,800 100 $2,581 70

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

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

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

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

benefits to deferred retirees who were dual beneficiaries averaged $1,818, while combined 

benefits to immediate retirees averaged $2,721. 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 2015 averaged 

$1,971 per month. Tier I 

amounts of nearly 7,000 employees were completely offset by social security benefits. Tier I 

amounts being paid averaged $1,819.

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

being paid at the end of fiscal year 2015 averaged $821. Employees are eligible for vested 

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

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

in some cases, at the end of an earlier year of last railroad service. Nearly 15,200 retirees 

were receiving vested dual benefits averaging $161 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 6,200 supplemental annuities were awarded in fiscal year 2015, nearly 500 less 

than in fiscal year 2014. More than 4,700 of the awards (77 percent) began concurrently 

with the employee’s regular annuity, while the remaining 1,500 were to employees already 

receiving a regular annuity. Supplemental annuity awards averaged over $41 per month 

after court-ordered partitions; 85 percent were at the current maximum rate of $43. 

Supplemental annuities are reduced for any part of a private railroad pension attributable 

 Type of retirement 

 

 Dual benefit status Total Immediate Deferred

Receiving social security benefit

 Number 28,600 8,500 20,000

 Average monthly amount:

 Railroad retirement (regular) $851 $1,655 $509

 Social security 1,237 1,066 1,309

 Combined benefit 2,088 2,721 1,818

Not receiving social security benefit

 Number 239,200 179,600 59,600

 Average monthly amount $2,787 $3,050 $1,996

Note.--Detail may not add to total due to rounding.
20 2016 Annual Report, U.S. Railroad Retirement Board

to employer contributions. During the fiscal year, 1,700 supplemental annuities were 

not awarded because they were entirely offset by private pensions. In a few cases, the 

supplemental annuity was partially offset by the pension, or the supplemental annuity was 

not offset because the pension was reduced.

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

employees on the rolls at the end of the 2015 fiscal year. These annuities averaged $42 

after court-ordered partitions; one was paid under 1937 Act amendments, which stipulated 

a maximum rate of $70.

Spouse and divorced spouse annuities

Annuity awards to spouses and divorced spouses of retired employees numbered 11,300 

in fiscal year 2015, 200 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 more than 2,800 reduced spouse annuities awarded in fiscal year 2015, fewer 

than 50 averaging $801 per month were to spouses of 30-year employees, and 2,800 

averaging $528 were to spouses of employees with less than 30 years of service.

At the end of fiscal year 2015, over 139,200 spouse annuities averaging $987 per month 

were being paid. More than 4,700 divorced spouse annuities averaging $610 per month 

were also being paid. These included some 90, averaging $679, where the employee was not 

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

combined railroad retirement benefits averaging $3,776. This included $2,788 in regular 

and supplemental employee annuities and $987 in spouse annuities.
 A Review of Operations 21

Approximately 54,700, or 38 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 $1,488 per 

month, including $379 

in railroad retirement 

benefits and $1,109 in 

social security benefits. 

Railroad retirement 

annuities to the 86,500 

spouses not receiving 

social security benefits 

averaged $1,358, while 

railroad retirement 

annuities to the 2,800 

divorced spouses 

not receiving social 

security benefits 

averaged $813.

Like regular 

employee annuities, 

spouse annuities consist of up to three components. The tier I component equals one-half of 

the employee’s tier I amount before any reduction for the employee’s social security benefit. 

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

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

if the spouse receives a railroad retirement employee annuity, but this reduction is usually 

restored through an addition to the spouse tier II amount. Divorced spouses receive only a 

tier I benefit.

The spouse tier II component equals 45 percent of the employee’s tier II amount. Railroad retirement amendments in 1981 precluded further awards of vested dual benefits to 

spouses.

Of the 139,200 spouses on the rolls at the end of fiscal year 2015, 93,600 were being 

paid tier I amounts averaging $869 per month. The tier I amounts of 45,600 spouses were 

completely offset by other benefits also due. Spouse tier II amounts averaged $439. Vested 

dual benefits averaging $126 were being paid to fewer than 50 spouses. The 4,700 divorced 

spouses on the rolls at the end of fiscal year 2015 were being paid tier I amounts averaging 

$629 per month, not reflecting all annuity adjustments.

Lump-sum retirement benefits

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

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

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

 In current-payment 

 Awarded in status on

 fiscal year 2015 September 30, 2015

 Monthly spouse Average Average

benefits Number amount Number amount

Beginning at full

retirement age or over 1,600 $625 16,400 $552

With minor or disabled 

child in care 300 1,154 1,800 1,273

Unreduced, beginning

at age 60 to under full

retirement age 5,900 1,466 73,600 1,376

Reduced rate 2,800 531 47,400 524

Total 10,600 1,083 139,200 987

Divorced spouse

annuities 700 641 4,700 610

Grand total 11,300 $1,055 143,900 $975

Note.--Detail may not add to total due to rounding.
22 2016 Annual Report, U.S. Railroad Retirement Board

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

benefits during fiscal year 2015.

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 2015 fiscal year, the RRB paid over 200 dual retirement tax refunds 

averaging $94. Most of the payments were to employees retiring during the year. Fewer 

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

the refund. Employees entitled to dual retirement tax refunds for years after 1974 may 

claim them on their Federal income tax returns.

Survivor 

Monthly benefits

Annuity awards to survivors of deceased railroad employees numbered 7,100 during 

fiscal year 2015, about 50 less than the previous year. Some 120,700 survivor annuities 

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

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

94,300, or 78 percent, of the survivor annuities were to aged widows and widowers.

1

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

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

year.

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

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

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

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

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

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

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

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

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

if the parent has remarried.

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

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

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

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

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

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

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

1

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

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

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

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

Aged widow(er)s, who 

are eligible for benefits 

at age 60, have their 

tier I and tier II amounts 

reduced if the annuity 

begins before full retirement age. The eligibility age for unreduced 

annuities is gradually 

rising from age 65 to age 

67. The maximum age 

reductions range from 

17.1 percent to 20.36 

percent, depending on 

the widow(er)’s date of 

birth. Excluding some 

200 annuities temporarily paid at spouse or 

divorced spouse rates, 

aged widow(er)s’ annuities being paid at the end 

of the 2015 fiscal year 

included 47,500 which were reduced for age. Aged widow(er)s’ tier I amounts being paid 

averaged $1,286 per month. In approximately 6,800 cases, the tier I amount was wholly 

offset by reductions for other benefits. Nearly 30,200 aged widow(er)s were also receiving 

social security benefits, and these averaged $1,016. Tier II amounts averaged $384. About 

300 vested dual benefits, averaging $73, 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 2015, tier I amounts being 

paid to disabled widow(er)s on the rolls averaged $1,065. (In about 200 cases, the tier I 

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

disabled widow(er)s averaged $927. Tier II amounts averaged $263, while the less than 50 

vested dual benefits being paid averaged $101.

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 2015 averaged $1,347 

 In current-payment 

 Awarded in status on

 fiscal year 2015 September 30, 2015

 Monthly survivor Average Average

 benefits Number amount Number amount

 Aged widow(er)s 5,500 $2,031 94,300 $1,576

 Disabled widow(er)s1 100 1,685 3,700 1,285

 Widowed mothers

 (fathers) 100 1,728 700 1,835

 Remarried widow(er)s 200 1,153 3,300 1,036

 Divorced widow(er)s 700 1,175 9,700 1,040

 Children:

 Under age 18 300 1,312 1,700 1,361

 Student * 1,576 100 1,454

 Disabled 100 1,241 7,200 979

 Parents * 542 * 935

 Total 7,100 ... 120,700 ...

 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 2016 Annual Report, U.S. Railroad Retirement Board

for widowed mothers and fathers and $974 for children. Fewer than 50 mothers/fathers 

and nearly 2,200 children received social security benefits averaging $1,095 and $624, 

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

$528 and $109. 

Lump-sum survivor benefits

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

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

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

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

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

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

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

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

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

insured status requirements. More than 3,100 lump-sum death benefits averaging $927 

were awarded during fiscal year 2015. Approximately 400 benefits were to widow(er)s, 

while some 2,700 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 

2015 fiscal year; they averaged $2,684. 

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 2015, there were nearly 1,400 spouses and divorced spouses 

receiving payments averaging $308 where the employee was deceased or not otherwise 

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

5 percent received a partitioned vested dual benefit and 35 percent received a 

partitioned supplemental benefit.

Medicare Enrollments

The Medicare program provides health insurance to persons ages 65 and older, as 
 A Review of Operations 25

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

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

period is waived. 

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

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

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

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

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

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

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

Medicare.

Eligible railroad retirement annuitants and social security beneficiaries whose benefits 

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

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

apply in order to obtain Medicare coverage. The RRB automatically enrolled almost 27,200 

beneficiaries for Medicare during fiscal year 2015. As of the end of the fiscal year, about 

465,600 persons were enrolled in the Part A plan, and nearly 446,300 (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 

$829 million in the 2015 fiscal year.

The regular monthly premium for Part B was $104.90 throughout fiscal year 2015. 

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 2015, approximately 11,000 Part B 

premiums and about 8,500 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 2015 some 426,100 annuitants were having their premiums 

withheld. Of the remaining Part B enrollees, over 2,600 were paying premiums to the RRB, 

either directly or through an intermediary, and 17,500 had their premiums paid by State 

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

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

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

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

year 2015, more than 9,000 Part C premiums and almost 35,800 Part D premiums were 

deducted from benefits paid by the RRB.
26 2016 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 

2015 exceeded financing sources by $21.8 million and the net position decreased by 

$21.8 million from $265.6 million at the end of fiscal year 2014 to $243.8 million at the end 

of fiscal year 2015. For fiscal year 2015 as compared to fiscal year 2014, total financing 

sources for the railroad unemployment and sickness insurance program increased by 

$40.7 million (173.0 percent) to $64.2 million.

(text continued on page 28)

Unemployment and Sickness Insurance Program

Consolidated Financing Sources, 

Costs and Net Position (Millions)1

For the Fiscal Year Ended September 30 2015 2014

Financing Sources:

Employer Payroll Taxes $74.7 $35.4

Interest Income 2.7 3.9

General Appropriations 0.0 0.0

Other (13.2) (15.8) 

 Total Financing Sources 64.2 23.5

Costs:

Benefit Payments:

 Unemployment 35.7 37.9

 Sickness 50.6 48.7

Other2 (0.3) 0.8

 Total Costs 86.0 87.4

Financing Sources over Costs (21.8) (63.9)

Net Position - Beginning of Period 265.6 329.5

Net Position - End of Period2 $243.8 $265.6

1

Prepared on an accrual basis of accounting. 

2

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

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

Benefit Payments 100%

$86.3

Financing Sources - Fiscal Year 2015 (In Millions)

GROSS TOTAL $77.4

UNEMPLOYMENT AND SICKNESS 

INSURANCE PROGRAM

1

Less Transfers-Out and carriers’ refunds of $13.2 million.

Costs - Fiscal Year 2015 (In Millions)

TOTAL $86.3

Employer 

Payroll Taxes1 96.5%

 $74.7

Interest Income 3.5%

$2.7
28 2016 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 2015, the taxable earnings 

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

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

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

In 2015, the basic tax rates on railroad employers, including covered commuter 

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

was also a surcharge of 1.5 percent in 2015. Most employers were assessed the minimum 

rate in 2015. New employers in 2015 paid an initial rate of 4.09 percent.

Employer Payroll Taxes

Payroll taxes by employers totaled $74.7 million during fiscal year 2015. This was an 

increase of 111 percent or $39.3 million more than the previous year.

Interest

Cash not needed immediately for unemployment and sickness insurance benefits 

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

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

2.3 percent in fiscal year 2015, of which the RRB earned $2.7 million as its pro rata share.

Costs

Total costs for the railroad unemployment and sickness insurance program decreased 

by $1.4 million (1.6 percent) to $86.0 million. 

Benefit Payments

During fiscal year 2015, unemployment insurance benefit payments decreased by 

$2.2 million (5.8 percent) to $35.7 million. Sickness insurance benefit payments increased 

by $1.9 million (3.9 percent) to $50.6 million.
 A Review of Operations 29

BENEFIT OPERATIONS

Net unemployment and sickness benefits totaling nearly $79.2 million were paid in 

the 2014-2015 benefit year, $6.0 million less than in the prior year. In accordance with the 

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

Control Act of 2011, amounts reflect a reduction of 9.2 percent for days of unemployment 

and sickness after February 28, 2013, 7.2 percent for days after September 30, 2013, 

and 7.3 percent for days after September 30, 2014. Beneficiaries numbered 22,500, in 

comparison to the previous year’s total of 24,800. Nearly 600 employees received both 

unemployment and sickness benefits during the 2014-2015 benefit year. The number of 

unemployment benefit claimants decreased by some 24 percent, while sickness benefit 

claimants decreased by about 1 percent. Total net unemployment benefit payments 

decreased by nearly 23 percent, while net sickness benefits increased by about 7 percent. 

The number of employees qualified for benefits under the Railroad Unemployment 

Insurance Act stayed nearly constant, rising slightly to 248,200.

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

first 14-day registration period in a benefit year. During benefit year 2014-2015, there were 

6,300 and 13,400 unemployment and sickness benefit waiting period claims, respectively.

Unemployment

About 7,600 railroad workers were paid $30.8 million in net unemployment benefits 

during the 2014-2015 benefit year, including $0.3 million in recovered temporary extended 

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

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

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

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

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

claimants decreased by some 2,400 from the prior year total of 10,000, while the benefit 

amount fell $9.1 million from the prior year’s total of $39.9 million. The average number of 

compensable days per unemployment benefit claimant was 69 in benefit year 2014-2015, 

the same as the previous benefit year. 

The mid-month unemployment count in the 2014-2015 benefit year began with a July 

count of 2,100 claimants. The count steadily rose during the following months until it 

peaked at 2,600 in November 2014. After November 2014, the count dropped in December 

before nearly repeating the same level in January 2015, then dropped again the following 

months until reaching a benefit year low of 1,800 in May 2015. For the 2014-2015 benefit 

year as a whole, the weekly number of claimants averaged 2,200 in comparison to an 

average of 3,000 in the previous benefit year. The overall unemployment benefit claimant 

rate, measured in relation to numbers of employees qualified to receive benefits under 

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 2016 Annual Report, U.S. Railroad Retirement Board

Item

 Benefit year 2014-2015 Benefit year 2013-2014

 

 Total

 Unemploy-

 ment1

 

 Sickness

 

 Total

 Unemploy-

 ment1

 

 Sickness

 Applications 30,900 11,500 19,400 32,100 13,100 19,100

 Claims 183,700 62,500 121,300 202,800 82,900 119,900

 Claimants 2 22,500 7,600 15,500 2 24,800 10,000 15,600

 Net amount of benefits3

$79,179,700 $30,751,900 $48,427,800 $85,183,000 $39,867,100 $45,315,900

 Number of payments

 Normal 140,100 47,000 93,200 151,600 59,400 92,100

 Extended 14,600 5,100 9,500 19,200 10,300 8,900

 Total 154,800 52,100 102,700 170,800 69,700 101,100

 Average amount per 

 2-week registration period3

 Normal $577 $581 $575 $556 $553 $558

 Extended 541 544 539 527 529 525

 Total 574 578 572 553 550 555

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

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

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

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

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

Relief Act of 2012. Benefits had to begin by December 31, 2013. The benefit year 2013-2014 amount totaled $2.4 million and 

the benefit year 2014-2015 amount totaled −$0.3 million. 

2 Benefits for both unemployment and sickness were paid to approximately 700 employees in benefit year 2013-2014 and 600 

employees in benefit year 2014-2015. 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 by the Budget Control Act 

of 2011, amounts reflect a reduction of 9.2% under sequestration for days of unemployment and sickness after February 28, 

2013, 7.2% for days after September 30, 2013, and 7.3% for days after September 30, 2014.

Major unemployment and sickness benefit operations,

benefit years 2014-2015 and 2013-2014

(text continued on page 32)

the Railroad Unemployment Insurance Act during a particular time period, fell to 3.0 per 

100 qualified, from the previous year’s 4.0 per 100 qualified, reflecting the continuation of 

normal unemployment levels. The median age for all unemployment benefit claimants was 

43 years, as compared to 42 in the previous benefit year.
A Review of Operations 31

Unemployment and Sickness Benefit Claimants by Age,

Benefit Year 2014-2015

Claimants under the Railroad Unemployment Insurance Act, 

Benefit Years 2010-2011 through 2014-2015

11,639

9,163

10,714

9,970

7,568

17,362 16,748

15,841 15,611 15,516

2010-2011 2011-2012 2012-2013 2013-2014 2014-2015

Unemployment

Sickness

141

1,594

2,361

2,078

1,294

100 100

1,880

3,602

4,098

5,456

380

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

Unemployment

Sickness
32 2016 Annual Report, U.S. Railroad Retirement Board

Sickness

The number of sickness benefit claimants during the 2014-2015 benefit year was 

15,500, a difference of less than 100 lower than the previous year. The benefit year 

claimant count was the lowest since sickness benefits began in benefit year 1947-1948. 

Gross sickness benefits of $67.0 million were paid, $2.9 million more than in the prior 

benefit year. Net sickness benefits totaled $48.4 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 $3.1 million in comparison with the previous year.

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

same as the previous benefit year. The benefit year utilization rate was the lowest since 

the program’s inception. The average duration of sickness was 66 days in benefit year 

2014-2015, up from 65 in the previous benefit year.

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

wounds (affecting 27 percent of beneficiaries), arthritis and disk disorders (22 percent), 

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

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

was 50 years, the same as the previous benefit year.
A Review of Operations 33

RAILROAD EMPLOYMENT

Average monthly railroad employment in fiscal year 2015 rose approximately 3 percent 

to 248,000 from the 240,000 average of the previous year. After experiencing an all-time 

low of 215,000 in January 2010, railroad employment began to rebound in 2010 and continued that recovery through the first half of fiscal year 2015. Fiscal year 2015 average 

railroad employment began at 246,000 and increased through April 2015 when it peaked at 

252,000, the highest level since December 1999. In May 2015, railroad employment began 

to decline and by September 2015 it had fallen to 243,000.

Note.--Numbers for 2015 are preliminary.

Average Railroad Employment

Fiscal Years 2011 through 2015

215,000

220,000

225,000

230,000

235,000

240,000

245,000

250,000

255,000
34

Performance Management

Customer Satisfaction Survey

Working with the Department of the Interior’s National Business Center 

Federal Consulting Group, government agencies use the American Customer 

Satisfaction Index (ACSI) survey to gauge their level of service and benchmark their 

performance. The ACSI also helps agencies focus on those processes, based on customer 

feedback, which will have the biggest impact on an agency’s ability to deliver the highest 

quality products and services. In fiscal year 2015, the RRB conducted an ACSI survey of 

railroad employers on their dealings with the agency. This was the first time employers 

had been the subject of a survey, which covered direct contact with RRB personnel and 

various forms of electronic communication. The RRB earned a score of 77 in this survey, 

which compares very favorably with the overall ACSI score of 64 for the Federal government.

Customer Service Plan

The RRB’s Customer Service Plan promotes the principles and objectives of customerdriven quality service agency-wide. An important part of the plan is to keep customers 

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

Customer Service Plan and performance results and posts them in all of its field offices. 

The plan is reviewed and updated periodically based on agency experience, customer 

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

The agency has developed an index to measure the overall timeliness of customer 

service in four benefit areas: retirement applications; survivor applications; disability 

applications and payments; and railroad unemployment and sickness benefit applications 

and claims. In addition, this composite indicator, based on a weighted average, allows for 

a more concise and meaningful presentation of its customer service efforts in these four 

areas. During fiscal year 2015, the overall benefit timeliness index was 98.8 percent. This 

means that the RRB provided benefit services within the timeframes promised in the 

Customer Service Plan 98.8 percent of the time. Performance and processing times during 

Administrative Developments

The following describes some major activities and issues addressed in 2015 and 2016

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

fiscal year 2015 were very similar to the levels in fiscal year 2014. (The composite for 2014 

was 98.9.) The RRB also met or exceeded eight out of ten customer service goals for the 

year in its Annual Performance Plan.

Reducing Improper Payments

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

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

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

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

administers. 

The agency completed risk assessments for both the Railroad Retirement Act and 

Railroad Unemployment Insurance Act programs, and also conducted an analysis of the 

programs for fiscal year 2014, as has been done annually since fiscal year 2003. The RRB’s 

Performance and Accountability Report for fiscal year 2015 (based on fiscal year 2014 data) 

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

description of the actions taken to address and prevent improper payments, and projections 

of future improper payment levels. The information was also provided to OMB, along 

with an improper payment reduction outlook, a breakdown of the root causes, amounts 

and percentages of improper payments for both programs in fiscal year 2014, and detail 

on recaptured overpayments. The review shows that the RRB does not have significant 

improper payments, as defined by OMB guidelines for implementing the Improper 

Payments Information Act of 2002. Risk assessments for non-benefit programs indicated 

that they were not susceptible to significant improper payments.

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

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

of the payments and reducing erroneous payments include automation enhancements, 

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

operational improvements that will minimize improper payments and enhance recovery 

efforts.

Service Enhancements

Employer Reporting System

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

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

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

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

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

year 2015, the RRB added the final service and compensation report to the ERS, the Form 

BA-9, which allows employers to submit information on separation allowances paid to 
36 2016 Annual Report, U.S. Railroad Retirement Board

employees. The agency is also developing a multifactor authentication system that allows 

users to reset their own passwords in a secure manner.

Cost-of-Living Adjustment

For the third time since the implementation of the automatic cost-of-living adjustment 

(COLA) in 1975, there was no COLA effective in January 2016 because there was no 

increase in the Consumer Price Index from the third quarter of 2014 to the same period in 

2015. And while the monthly Medicare Part B premium increased from $104.90 to $121.80, 

most beneficiaries did not have to pay the increase due to a “hold harmless” provision 

that provides Part B premiums cannot increase for current enrollees if there is no COLA. 

However, new enrollees and certain high-income beneficiaries did pay higher premiums.

Benefit Processing Improvements

The RRB implemented two improvements in 2015 to improve processing of disability 

applications and payment of Railroad Unemployment Insurance Act benefits.

• In October 2015, the agency implemented use of two disability online applications: 

Stedman’s Online Medical Dictionary and Occubrowse. These applications assist 

claim examiners during case adjudication and streamline work processes. In addition, 

Occubrowse is used by the Social Security Administration, which will promote 

consistency between the two agencies concerning job information for disability cases.

• In July 2015, the RRB revised its daily Railroad Unemployment Insurance Act 

process to make payments to state child support agencies under garnishment orders 

by direct deposit.

Officials

Michael S. Schwartz, who had served as Chairman of the Railroad Retirement Board 

since 2003, retired August 31, 2015. Walter A. Barrows continues to serve as the Labor 

Member, as does Steven J. Anthony as the Management Member. Mr. Barrows was 

appointed to the Board in 2011 and Mr. Anthony in 2014. Martin J. Dickman has been the 

Inspector General for the RRB since 1994.

In April 2016, the Board appointed Beverly Britton Fraser as Director of Legislative 

Affairs/Legislative Counsel. In that capacity, she will manage the RRB’s Office of 

Legislative Affairs in Washington, DC, serve as the agency’s liaison with congressional 

and executive branch offices in the Capital, and provide legal and legislative advice to the 

Board Members and agency executives. At the time of her appointment, Ms. Britton Fraser 

was Senior Counsel for the House Committee on Oversight & Government Reform in the 

U.S. Congress, a position she had held since April 2009. She earned a bachelor’s degree 

from Cornell University and a J.D. from the University of Buffalo Law School. She replaced 

Margaret Lindsley, who retired in February 2016 with more than 35 years of RRB service.
Administrative Developments 37

Human Capital Management

Staffing

Like other organizations in the Federal community, the RRB has an aging workforce, 

with about 55 percent of its employees having 20 or more years of service. Additionally, 

over 40 percent of the agency’s current workforce will be eligible for retirement by fiscal 

year 2019. To help cope with the loss of experience and bridge the knowledge gap, the RRB 

is placing increased emphasis on strategic management of human capital, particularly in 

the areas of training, development and succession planning. While attrition remains an 

ongoing concern, it has also presented an opportunity for the RRB to increase hiring of 

entry-level positions, particularly those engaged in direct customer service. In 2015, the 

agency launched one training class for claims examiners involved in the adjudication and 

processing of sickness and unemployment benefit claims. The RRB is filling additional 

training classes for retirement, survivor, unemployment, sickness and Medicare claims 

examiners in summer 2016.

Training

The RRB has devoted more attention and resources to training in recent years, 

providing meaningful development programs for its employees. One example is the 

reestablishment of the training section within the Bureau of Human Resources. This unit 

is charged with creating, implementing and modifying overall training and developmental 

policies, procedures and programs on an agencywide basis. The primary goal is to create 

training opportunities to assist RRB employees in building the competencies needed 

to achieve the agency’s mission, values and strategic goals. They utilize training needs 

assessments and surveys to prioritize needs in these areas, and have also made expanded 

use of technology.

This has included use of a recently acquired learning management system (LMS). 

The LMS is an internet-based program which effectively formalizes all aspects of training 

for RRB employees, while also providing self-assessments to “students” and feedback 

to supervisors on their progress. Since the LMS became operational in May 2015, 880 

employees and contractors have taken 516 different online or instructor-led training 

courses on 13,601 occasions. In addition, all agency field managers now have access to the 

latest webinar technology to facilitate remote training of new employees, as well as ongoing 

training of experienced staff.

In 2015, the Office of Programs also completed several training classes for employees 

involved in the adjudication and processing of the RRB’s benefit programs. This included 

two training programs for initial adjudication of Railroad Retirement Act claims (one 

retirement and one survivor), along with three post-adjudication programs (two retirement 

and one survivor). Another training program for initial examiners of disability benefit 

applications was also completed during the year.
38 2016 Annual Report, U.S. Railroad Retirement Board

Employee Recognition

The RRB recognizes its employees for their contributions to the agency and service 

to the railroad public as part of its annual “Award for Excellence” program. All agency 

employees have the opportunity to be recognized for their accomplishments individually 

or as part of a team in various categories. The 28th annual awards ceremony was held 

in August 2015 in Kasbeer Hall at Loyola University of Chicago’s nearby Water Tower 

campus. The program honored 14 individual nominations and 5 team nominations. The 

RRB also participates in the Chicago Federal Executive Board’s “Federal Employee of the 

Year” awards program, which recognizes outstanding Federal employees throughout the 

metropolitan area. In 2015, the RRB had seven individual and three team nominations.

Employee Survey

The Federal Employee Viewpoint Survey, conducted by the Office of Personnel 

Management (OPM), is a tool that measures employees’ perceptions of whether, and 

to what extent, conditions characterizing successful organizations are present in their 

agencies. Of 862 RRB employees invited to participate in the 2015 survey, 481 completed 

the survey, for a response rate of 56 percent (compared to a governmentwide rate of 50 

percent). Forty-eight survey items had higher scores than in 2014, while only 15 showed a 

decrease. The RRB ranked in the top ten out of 37 departments/large agencies in the areas 

of global satisfaction (7th) and employee engagement (10th). Based on OPM guidelines 

for determining notable results, the RRB scored especially high (greater than 65 percent 

favorable) on the majority of items measuring personal work experiences. Over 92 percent 

of the RRB respondents think the work they do is important, 87 percent know how their 

work relates to the agency’s goals and priorities, and 79 percent feel their work gives them 

a feeling of personal accomplishment. Eighty-two percent like the kind of work they do, and 

87 percent feel they are held accountable for achieving results. Additionally, 83 percent 

of agency employees feel supported by their supervisors in balancing work and other life 

issues.

The lowest scores were on items gauging performance culture and talent management, 

although these scores still represent a minority of the employees that responded. For 

example, only 36 percent felt that pay raises depend on how well employees perform 

their jobs, and only 35 percent agreed that steps are taken to deal with poor performers 

(compared to a governmentwide figure of 28 percent). Only 30 percent of respondents felt 

that creativity and innovation are rewarded, which is an area that the RRB intends to 

concentrate on improving in the coming years.
Administrative Developments 39

Information Technology

Information Security

The RRB is committed to protecting its annuitants’ information from unauthorized use 

or disclosure, and continues to work on improving its security capabilities. In fiscal year 

2015, the RRB’s information security team administered statutorily required securityawareness training for all agency employees and contractors. Staff members identified as 

having more significant information security responsibilities participated in enhanced rolebased security training. Also, the RRB’s privacy team prepared and coordinated training 

for all employees on controlling unclassified information, federal tax awareness and the 

Privacy Act.

Mainframe Applications Reengineering

In fiscal year 2015, the RRB awarded a services contract to undertake a multiyear 

effort to convert the agency’s current mainframe computing environment to a Microsoft 

Windows-based system. Reengineering critical legacy mainframe applications supports 

agency operations by enabling a future-ready RRB workforce equipped with modern tools 

and technologies. This will allow them to do their jobs in the most efficient and effective 

manner, contributing to sustained customer satisfaction in the railroad community. The 

RRB will begin the conversion effort in fiscal year 2016 by purchasing additional hardware 

to house the new infrastructure and converting applications related to the taxation of 

retirement benefits.

Information Resources Management

In fiscal year 2015, the RRB coordinated and secured computer matching agreements 

with 11 states. The agency also secured Office of Management and Budget (OMB) approval 

of 18 information collections. A central goal of the OMB review process is to help agencies 

strike a balance between collecting information needed to fulfill their statutory missions 

and guarding against unnecessary or duplicative requests that impose unjustified costs 

on the public. In addition, the RRB’s records management team implemented agencywide 

records management training as required by the “Managing Government Records 

Directive” in OMB Memorandum M-12-18.

Office of Equal Opportunity

Diversity Program

Throughout the year, the agency’s Office of Equal Opportunity sponsored many events 

and activities to foster an inclusive work environment and enhance the understanding 

of disability issues. The Workplace Diversity Committee presented a variety of cultural 

enrichment events to commemorate African American History Month, Women’s History 
40 2016 Annual Report, U.S. Railroad Retirement Board

Month, Asian Pacific Heritage Month and Hispanic Heritage Month. The Employees with 

Disabilities Advisory Council also presented a disability awareness fair featuring several 

community, government and commercial organizations that provide services and products 

for individuals with disabilities.

Equal Opportunity Policies and Procedures

The agency’s Equal Employment Opportunity complaint program has policies and 

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

discrimination complaint process has the required elements of impartiality, timeliness 

and credibility. Training is conducted to ensure that employees know their rights and 

responsibilities. In 2016, several policies and procedures were updated to reflect changes in 

Equal Employment Opportunity Commission regulations and guidance.

Recruitment

The RRB is committed to maintaining a diverse workforce. The Office of Equal Opportunity worked cooperatively with the Bureau of Human Resources in 2015 to create 

a diverse pool of external job applicants by identifying sources for the recruitment of 

individuals with disabilities, various underrepresented groups, and disabled veterans.

Public Information Activities

The RRB maintains direct contact with railroad retirement beneficiaries through 

its field offices located across the country. Field personnel explain benefit rights and 

responsibilities on an individual basis, assist railroad employees in applying for benefits 

and answer any questions related to the benefit programs. The RRB also relies on railroad 

labor groups and employers for assistance in keeping railroad personnel informed about its 

benefit programs.

At informational conferences sponsored by the Labor Member of the Board for railroad 

labor union officials, RRB representatives describe and discuss the benefits available 

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

and the attendees are provided with comprehensive informational materials. Now in its 

59th year, in 2015 a total of 1,381 railroad labor union officials attended 37 informational 

conferences held in cities throughout the United States. The Labor Member’s Office in 2014 

also launched a new program of pre-retirement seminars designed for railroad employees 

and their spouses nearing retirement. Nine seminars were held during 2015, with 538 

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

representatives speak before their meetings, seminars and conventions. In 2015, the 

Labor Member’s Office was represented at 17 union gatherings attended by 2,471 railroad 

labor officials. Field personnel addressed 53 local union meetings with 2,395 members in 

attendance.
41 2013 Annual Report, U.S. Railroad Retirement Board Administrative Developments 41

The Management Member’s Office hosted the 9th annual National Rail Employer 

Training Seminar in Chicago in late August 2015, attended by 179 reporting personnel 

from around the country. RRB executives and staff, along with guest speakers from the 

Internal Revenue Service (IRS), presented on a variety of topics, including: RRB and IRS 

audits; basic reporting; employer coverage; the Railroad Unemployment Insurance Act’s 

experience rating system; web-based services; internet reporting and claim forms available 

on the Employer Reporting System (ERS); processing tax and debt payments and claims 

using Pay.Gov and the ERS; retirement and survivor annuities; and IRS reporting issues. 

The employers were also able to attend a session conducted by the RRB’s Office of Inspector 

General on efforts to protect the railroad retirement trust funds. The Management 

Member’s Office hosts the seminar every three years, in addition to other meetings and 

seminars during the year for rail executives and managers.

Office of Inspector General

The Office of Inspector General (OIG) for the RRB focuses its audit and investigative 

efforts on protecting the integrity of the agency’s trust funds by providing comprehensive 

program and operational oversight. Reports issued by the OIG, and other documents 

referenced in this section, can be found at www.rrb.gov/oig. 

Office of Audit

During fiscal year 2015, the Office of Audit published 8 reports, completed its mandated 

CyberScope reporting and assessment of risk associated with purchase and travel cards, 

and issued findings and recommendations to agency management. Their reports focused 

on the following topics: the RRB’s financial statements for fiscal years 2013 and 2014; 

information technology security; the RRB’s compliance with the Improper Payments 

Elimination and Recovery Act; internal controls over creditable service and compensation 

related to injury settlements; vulnerabilities related to railroad Medicare chiropractic 

payments; and internal controls over obligations at the RRB. In total, this work identified 

$149 million in questioned costs. In addition, the Office of Audit underwent a peer review 

and received a rating of “pass” during fiscal year 2015.

Pursuant to the Reports Consolidation Act of 2000 and the requirements of Office 

of Management and Budget Circular A-136, the OIG issued a document that identified 

the most serious management challenges facing the RRB and its progress in addressing 

them. The OIG identified the following challenges: program integrity to strengthen the 

RRB’s disability program; information technology security and modernization; oversight 

of railroad Medicare; preventing and detecting improper payments; agency succession 

planning; material weaknesses for financial statement reporting; and limited transparency 

at the National Railroad Retirement Investment Trust.
42 2016 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 law enforcement agencies, such as the Federal Bureau of Investigation and 

the U.S. Secret Service. 

As of September 30, 2015, the Office of Investigations’ caseload totaled 295 matters, 

which represents approximately $556.0 million in potential fraud losses.1

 During 

fiscal year 2015, the office secured 19 arrests, 49 indictments and/or informations, 43 

convictions, 27 civil judgments, 57 referrals to the Department of Justice, and more than 

$202.7 million in financial accomplishments.2

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

fraud amounts from other Federal programs such as Medicare or social security which have been identified by 

Office of Investigations’ joint investigative work.

2 The total amount of financial accomplishments reflects fraud amounts related to programs administered 

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

security which were included in the disposition resulting from the investigation.
Legal Rulings

43

Court Cases

Three petitions for review were filed during the year, and two cases were ruled upon 

by Courts of Appeal. At the conclusion of fiscal year 2015, there were five cases 

pending decisions before various Courts of Appeal. 

Legal Opinions

The RRB’s Office of General Counsel issued 61 formal legal opinions in fiscal year 2015. 

The following are of particular interest.

Same-Sex Marriage – Obergefell v. Hodges L-2015-3.1

Issued August 14, 2015. The opinion finds that the holding of the U.S. Supreme Court in 

Obergefell v. Hodges must be applied retroactively to eight pending applications for spousal 

benefits. The opinion is a change in interpretation from Legal Opinion L-2015-03, which 

applied the decision in United States v. Windsor, 570 U.S. 12, 133 S. Ct. 2675 (2013). The 

Windsor decision addressed the U.S. Courts of Appeals circuit split regarding the validity 

of same-sex marriages. Eight applications involving railroad employees and spouses who 

were married in a U.S. State which recognized same-sex marriages at the time of their 

marriage, but were living in a State which did not recognize their marriage prior to the 

decision in Obergefell v. Hodges, were pending with the RRB.

The General Counsel advised that in light of the Obergefell decision, the RRB must 

comply with the Supreme Court ruling as it did in Legal Opinion L-1967-137, in which the 

Associate General Counsel advised the Director of Retirement Claims to retroactively apply 

the Supreme Court decision in Loving v. Virginia, 388 U.S. 1 (1967), which invalidated 

State laws banning interracial marriages.

Presidential and Federal Records Act Amendments of 2014 L-2015-13

Issued May 6, 2015. The Presidential and Federal Records Act Amendments of 2014 

(P.L. 113-187) were signed into law by President Obama on November 26, 2014. The 

opinion provides a brief analysis of the law, which requires the President, Vice President, 

and “covered” employees to forward a complete copy of any non-official electronic 

Two rulings on cases involving the RRB were issued by Courts of Appeal 

during fiscal year 2015, and 61 legal opinions were issued

by the RRB’s Office of General Counsel.
44 2016 Annual Report, U.S. Railroad Retirement Board 

messaging account to an official electronic messaging account within 20 days after the 

record was created or transmitted. The opinion also provides a summary of how the law 

expands the types of unlawful forms of destruction of electronic records and the duties of 

Federal agency heads to notify the National Archives and Records Administration of any 

destruction of records in the custody of the agency.

Amendment of 20 CFR 220.45 L-2015-43

Issued September 14, 2015. The opinion, addressed to the three-member Board, 

proposed an amend-ment to section 220.45 of the agency’s regulations. The amendment 

would modify the requirements for the evidence submitted by an applicant applying for a 

disability annuity. The current regulation simply requires the claimant to provide evidence 

of the claimed disability, but doesn’t require the claimant to submit all evidence related to 

the disability. The amendment would change the RRB’s regulation to mirror the change 

in the Social Security Administration’s regulation. The new amendment would require an 

applicant to inform or submit to the RRB all evidence known to the applicant that “relates 

to” their disability claim.

Appeals

Any claimant for benefits under the Railroad Retirement or Railroad Unemployment 

Insurance Acts 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.

Railroad Retirement Act

 During fiscal year 2015, 298 appeals were filed with the Bureau of Hearings and 

Appeals under the Railroad Retirement Act, and the Bureau rendered decisions in 342 

appeals. The reconsideration decision was sustained in 181 cases. In 161 appeals the 

decision was favorable to the claimant in whole or in part.

Eighty-two appeals were filed with the three-member Board in fiscal year 2015, which, 

added to the 63* appeals carried over from the previous year, brought the total to be 

considered to 145. Of 39 decisions, 33 sustained previous rulings of the hearings officer, 

two were remanded to the Bureau of Hearings and Appeals, two were dismissed and two 

granted. At the end of the year, 105 appeals were pending before the Board.

* – A new electronic docketing system showed the end-of-year balance at 63, rather than 100 as reported in the 2015 Annual 

Report.
Railroad Unemployment Insurance Act

During fiscal year 2015, 30 appeals were filed with the Bureau of Hearings and Appeals 

under the Railroad Unemployment Insurance Act, and the Bureau rendered decisions in 

40 appeals. The reconsideration decision was sustained in 33 cases. In seven appeals the 

decision was favorable to the claimant in whole or in part.

 Five appeals were filed with the Board in fiscal year 2015, which were added to the 

10** carried over from the previous year, bringing the total to be considered to 15. The 

Board rendered decisions in three of the appeals, one affirming the decision of the hearings 

officer, one remanding the case to the Bureau of Hearings and Appeals and one granting 

the appeal. At the end of the year, 12 appeals were pending before the Board.

Legal Rulings 45

** – A new electronic docketing system showed the end-of-year balance at 10, rather than 9 as reported in the 2015 Annual 

Report.

STATISTICAL

TABLES
48 2016 Annual Report, U.S. Railroad Retirement Board Total1 Retirement2 Survivor2 Unemployment3, 4 Sickness4 BENEFICIARIES (in thousands) 2006....................................................... 643 441 187 9 20 2007....................................................... 641 444 180 10 19 2008....................................................... 623 433 174 11 19 2009....................................................... 626 430 167 24 18 2010....................................................... 617 428 161 22 18 2011....................................................... 603 429 156 11 18 2012....................................................... 595 429 150 10 17 2013....................................................... 592 429 146 11 16 2014....................................................... 585 428 141 10 16 2015....................................................... 581 428 136 9 16 BENEFIT PAYMENTS (in millions) 2006....................................................... $9,513.7 $7,294.0 $2,146.9 $30.8 $42.1 2007....................................................... 9,871.5 7,641.1 2,156.4 27.8 46.2

2008....................................................... 10,115.4 7,877.0 2,158.1 35.1 44.92009....................................................... 10,663.8 8,311.0 2,192.0 111.7 48.12010....................................................... 10,939.8 8,588.6 2,187.1 109.6 50.02011....................................................... 11,047.2 8,778.5 2,165.3 48.3 52.32012....................................................... 11,418.8 9,155.4 2,171.7 41.1 47.52013....................................................... 11,726.4 9,456.5 2,175.5 47.8 42.92014....................................................... 11,980.9 9,724.9 2,167.2 37.7 46.72015....................................................... 12,257.3 10,012.2 2,156.9 34.0 49.21 Beginning in fiscal year 2008, beneficiaries and benefit payments include partition payments to spouses and divorced spouses where the employee is deceased or not otherwise entitled to an annuity. Benefit payments also include a small amount of payments for hospital insurance benefits for services in Canada.

2 Retirement benefits include vested dual benefit and supplemental annuity payments. Survivor benefits include vested dual benefit payments.3 Includes temporary extended unemployment benefits under the American Recovery and Reinvestment Act of 2009 and Worker, Homeownership, and Business Assistance

 Act of 2009, as amended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the Temporary Payroll Tax Cut Continuation Act of 2011, the Middle Class Tax Relief and Job Creation Act of 2012, and the American Taxpayer Relief Act of 2012.4 In accordance with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011, amounts reflect a reduction of 9.2% under  sequestration for days of unemployment and sickness after February 28, 2013, 7.2% for days after September 30, 2013, and 7.3% for days after September 30, 2014.

Fiscal year

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

 by fiscal year, 2006-2015, cash basis

NOTE.-- Number of beneficiaries represents all individuals paid benefits in year. In total number for each year, beneficiaries are counted only once, even though they may have received more than one type of benefit. In fiscal year 2015, 7,300 individuals received both retirement and survivor benefits, 600 employees received both unemployment and 

sickness benefits, and 1,800 employees received benefits under both the Railroad Retirement Act and the Railroad Unemployment Insurance Act. These figures are partly 

estimated, and totals for earlier years are similarly adjusted.
 

StatisticalTables 49

Item 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

RAILROAD RETIREMENT ACCOUNTReceipts

Tax transfers 1.....................................................................$2,674.8 $2,637.8 $2,636.5 $2,501.2 $2,599.0 $2,712.7 $2,659.8 $3,140.2 $3,392.2 $3,760.8Interest and profit on investments 2....................................... 19.6 19.3 12.9 12.0 11.0 12.3 11.4 9.0 14.0 17.2Transfers from the National RR Investment Trust 3.................. 947.0 1,391.0 1,298.0 1,553.0 1,989.0 1,744.0 2,026.0 1,581.0 1,429.0 1,191.0Transfers from the SSEB Account 3....................................... 38.0 181.0 147.0 ........ 81.0 255.0 19.0 171.0 93.0 129.0Loan repayments from RUI Account 4..................................... ........ ........ ........ ........ ........ 48.4 ........ ........ ........ ........ Loan repayments from DBP Account 4.................................. ........ ........ ........ ........ ........ ........ ........ ........ 4.5 ........ 

Expenditures

Benefit payments 5...............................................................$3,808.8 $4,073.0 $4,121.8 $4,326.9 $4,474.4 $4,600.3 $4,775.0 $4,906.2 $5,044.0 $5,106.8Financial Interchange adjustment 6....................................... (85.9) (45.7) (100.0) (104.6) (13.1) (88.5) (141.9) (166.6) (164.0) (162.3)Net transfers to administration............................................. 69.9 64.0 58.4 63.4 68.7 73.6 69.6 70.2 69.3 72.1Loans to RUI Account......................................................... ........ ........ ........ ........ 46.5 ........ ........ ........ ........ ........ Loans to DBP Account 7...................................................... ........ ........ ........ ........ ........ ........ ........ ........ 4.5 ........ 

Balance at end of period 8......................................................... $479.4 $616.9 $632.0 $418.2 $519.0 $706.5 $720.2 $811.7 $791.8 $877.3SOCIAL SECURITY EQUIVALENT BENEFIT ACCOUNT 9Receipts

Tax transfers 1.....................................................................$2,462.5 $2,538.0 $2,649.3 $2,528.9 $2,514.9 $2,675.3 $2,878.5 $2,954.1 $3,163.1 $3,389.3Interest and profit on investments 2....................................... 28.0 29.0 19.9 19.0 18.9 21.9 20.1 22.4 21.9 24.3Transfers under financial interchange 10................................. 3,846.3 4,019.8 4,049.9 4,137.3 4,391.6 4,574.3 4,651.0 4,499.0 4,700.8 4,676.6Advances against financial interchange 11.............................. 3,241.3 3,232.3 3,385.6 3,661.1 3,819.0 3,820.4 3,738.6 3,943.0 3,886.1 3,849.9

Expenditures

Benefit payments............................................................... $5,536.1 $5,637.9 $5,835.8 $6,107.6 $6,243.7 $6,291.1 $6,506.7 $6,686.9 $6,815.2 $7,035.4Financial Interchange adjustment 6....................................... 85.9 45.7 100.0 104.6 13.1 88.5 141.9 166.6 164.0 162.3Net transfers to administration............................................. 24.3 25.6 38.5 32.5 33.6 29.6 31.4 30.1 32.3 32.9Transfers under financial interchange 10................................. 471.5 483.3 525.7 524.3 535.1 477.2 510.9 576.6 611.6 594.7Repayment of advances against financial interchange 4............ 3,419.7 3,418.7 3,410.8 3,564.8 3,837.6 3,946.6 3,946.3 3,863.1 4,041.9 3,982.7Transfers to the National RR Investment Trust/RR Account 3... 38.0 181.0 147.0 ........ 81.0 255.0 19.0 171.0 93.0 129.0

Balance at end of period............................................................ $717.4 $744.2 $791.2 $803.8 $804.0 $807.9 $939.8 $863.9 $877.8 $880.8See footnotes at end of table.

Fiscal Year

Table 2.--Status of the Railroad Retirement Act accounts and trust funds, 

by fiscal year, 2006-2015 (in millions), cash basis
50 2016 Annual Report, U.S. Railroad Retirement Board Item 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 NATIONAL RAILROAD RETIREMENT INVESTMENT TRUST 12 Cash and investment balance at end of period 13.....................$29,327.9 $32,631.4 $25,271.5 $23,330.8 $23,770.4 $22,119.0 $23,586.2 $24,963.7 $26,039.9 $24,483.9 DUAL BENEFITS PAYMENTS ACCOUNT 14 Dual benefit transfers 15...................................................... $97.0 $88.0 $79.0 $72.0 $64.0 $56.9 $50.9 $44.9 $39.0 $34.0 Loans from Railroad Retirement Account 7........................... ........ ........ ........ ........ ........ ........ ........ ........ 4.5 ........ Benefit payments............................................................... 96.0 86.5 77.7 69.5 62.1 55.2 48.6 42.6 37.2 31.9 Repayment of loans from Railroad Retirement Account 4......... ........ ........ ........ ........ ........ ........ ........ ........ 4.5 ........ Balance at end of period 8................................................... $1.0 $1.5 $1.3 $2.5 $1.9 $1.7 $2.3 $2.3 $1.8 $2.1 Table 2.--Status of the Railroad Retirement Act accounts and trust funds, by fiscal year, 2006-2015 (in millions), cash basis - Continued Fiscal Year

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

Revenue Code, as amended. In calendar years 2011-2012, Social Security Equivalent Benefit Account includes general revenue transfers under the Tax Relief, Unemployment 

Insurance Reauthorization, and Job Creation Act of 2010 and the Middle Class Tax Relief and Job Creation Act of 2012, respectively. The final reconciliation for calendar years

2011-2012 occurred in June 2015. In fiscal year 2012, Social Security Equivalent Benefit Account includes one-time general revenue transfer under the Hiring Incentives to Restore

Employment 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. 4 Includes interest. 5 Effective January 1, 2002, supplemental benefits are paid from the Railroad Retirement Account. 6 Adjustments in benefit payments charged to the Social Security Equivalent Benefit Account as compared to actual financial interchange benefits, with interest. 7 Due to delay in enactment of a continuing resolution, the Dual Benefits Payments Account borrowed $4,500,000 from the Railroad Retirement Account in October 2013 in order to payvested dual benefits. The loan was repaid in entirety in December 2013. 8 The Railroad Retirement Account balance reflects (a) the current net difference between Board payments of social security benefits and the receipt of reimbursements for such payments, (b) liabilities for uncashed check credits received from U.S. Treasury, and (c) credits for undistributed payment returns and recoveries. The Dual Benefits Payments Accountbalance does not carry over to the following year. 9 Established October 1, 1984, to keep track of the financing and payment of social security level portions of railroad retirement benefits.

10 Transfers to or from OASDHI Trust Funds under section 7(c)(2) of the Railroad Retirement Act of 1974.11 Advances, including interest, from U.S. Treasury to offset lag in receipt of financial interchange funds under section 7(c)(4) of the Railroad Retirement Act of 1974, as amended.12 Established February 1, 2002, for investment of railroad retirement assets.13 Source: National Railroad Retirement Investment Trust.14 Established October 1, 1981, to keep track of the financing and payment of vested dual benefits.15 Transfers from U.S. Treasury under section 15(d) of the Railroad Retirement Act of 1974 and Federal income tax transfers under section 72(r) of the Internal Revenue Code, as 

amended.
 

StatisticalTables 51

Table 3.--Status of the Railroad Unemployment Insurance Account, by fiscal year, 2011-2015 (in thousands), cash basis

Fiscal year

 Item 2011 2012 2013 2014 2015

RECEIPTS

 Taxes............................................................... $149,287 $184,452 $84,679 $6,248 $46,672 Interest............................................................ 1,933 4,106 5,686 4,415 3,165

 Transfer from Administration fund

 under Sec. 11(d) of the RUI Act........................ 7,918 11,219 10,706 12,257 11,339 Undistributed recoveries of benefit payments1...... (48) (21) (110) (271) 368 Total............................................................ $159,089 $199,755 $100,961 $22,649 $61,544

EXPENDITURES

 Benefit payments2, 3.......................................... $91,929 $81,782 $83,691 $83,823 $83,501 Repayment of RRA Loans................................. 48,408 .... .... .... ....  Funding for Office of Inspector General............... 1,077 1,022 941 1,037 1,053 Total............................................................ $141,414 $82,804 $84,633 $84,860 $84,554Cash balance end of period................................. $46,944 $163,895 $180,223 $118,012 $95,002

LOANS DUE RAILROAD RETIREMENT ACCOUNT

 Loans............................................................... .... .... .... .... ....  Interest accrued................................................ $1,030 .... .... .... ....  Repayment from RUI Account.............................. 48,408 .... .... .... .... Due RR Account end of period.............................. .... .... .... .... .... 

1 Net of distributed payments.2 Excludes temporary extended unemployment benefits authorized by the American Recovery and Reinvestment Act of 2009, the Worker, Homeownership, and Business Assistance Act of 2009,

 the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the Temporary Payroll Tax Cut Continuation Act of 2011, the Middle Class Tax Relief and Job Creation Act of 2012, and the American Taxpayer Relief Act of 2012. Benefits had to begin by December 31, 2013. FY 2011: $8,736,000, FY 2012: $6,737,000, FY 2013: $6,982,000, FY 2014: $619,000, and FY 2015: −$308,000.3 In accordance with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011, amounts reflect a reduction of 9.2% under sequestration for days of unemployment and sickness after February 28, 2013, 7.2% for days after September 30, 2013, and 7.3% for days after September 30, 2014.
52 2016 Annual Report, U.S. Railroad Retirement Board Table 4.--Status of the RUIA Administration Fund, by fiscal year, 2006-2015 (in thousands), cash basis Transfer to Railroad Unemployment Insurance Taxes and Administrative Account under Balance at Fiscal year interest expenditures1 Sec. 11d 2 end of period 2006...................................... $21,980 $10,610 $6,664 $10,163 2007...................................... 23,082 14,415 8,923 9,907 2008...................................... 23,945 14,713 8,711 10,427 2009...................................... 23,151 14,305 9,808 9,465 2010...................................... 22,990 15,729 8,305 8,421 2011...................................... 23,722 12,442 7,918 11,783 2012...................................... 25,463 14,608 11,219 11,419 2013...................................... 26,202 14,591 10,706 12,324 2014...................................... 25,225 15,172 12,257 10,120 

2015...................................... 28,063 12,987 11,339 13,858 

1 Expenditures for each year included encumbrances as of end of year. Fiscal years 2006-2009 and 2011-2015 reflect 

reallocation of prior period administrative expenses between the Railroad Retirement Act and Railroad Unemployment Insurance Act programs.

2 Transfers to the Railroad Unemployment Insurance Account are based on the excess of the accrual balance on the prior

September 30 over $6,000,000.
 

StatisticalTables 53

Retired employees

Spouses

Awarded Disability and Widowed

age converted Supple- divorced Aged Disabled mothers Remarried Divorced 

 Total1 annuity to age2 Disability mental3 spouses widow(er)s4 widow(er)s5 (fathers)4 Children widow(er)s widow(er)s

NUMBER AT END OF YEAR2006 ............................... 706,158 195,380 34,050 50,271 121,407 138,492 134,811 4,733 927 11,448 4,907 9,6822007 ............................... 696,472 193,282 34,147 50,172 121,188 137,371 129,350 4,596 877 11,078 4,751 9,6152008 ............................... 686,636 191,146 34,401 49,648 120,824 136,332 124,089 4,450 832 10,692 4,552 9,5522009 ............................... 680,534 190,302 34,688 49,116 120,778 136,467 119,459 4,323 814 10,417 4,361 9,5202010 ............................... 676,653 190,236 35,557 47,960 121,166 137,112 114,929 4,251 776 10,168 4,161 9,5952011 ............................... 672,484 190,100 36,259 46,850 121,422 138,253 110,372 4,136 745 9,881 4,003 9,5982012 ............................... 668,957 189,909 37,370 45,066 121,614 139,741 106,268 4,081 739 9,687 3,824 9,6602013 ............................... 664,055 189,569 39,506 41,745 121,530 140,894 102,186 3,965 703 9,463 3,666 9,7102014 ............................... 661,069 190,224 41,554 37,891 122,086 142,626 98,435 3,868 688 9,164 3,506 9,7472015 ............................... 656,847 190,114 43,141 34,514 123,037 143,920 94,279 3,741 665 8,978 3,344 9,704

AVERAGE AMOUNT

2006 ............................... ......... $1,789 $1,628 $2,117 $42 $671 $1,122 $946 $1,423 $823 $747 $7402007 ............................... ......... 1,890 1,713 2,203 42 709 1,173 989 1,471 853 781 7732008 ............................... ......... 1,982 1,787 2,267 42 742 1,222 1,025 1,529 879 816 8042009 ............................... ......... 2,126 1,909 2,400 42 795 1,294 1,084 1,597 935 879 8672010 ............................... ......... 2,186 1,954 2,419 42 817 1,329 1,108 1,643 937 896 8802011 ............................... ......... 2,244 1,995 2,437 42 839 1,366 1,133 1,663 941 907 8922012 ............................... ......... 2,363 2,098 2,526 42 882 1,426 1,181 1,700 980 956 9382013 ............................... ......... 2,451 2,180 2,574 42 915 1,476 1,217 1,757 1,006 986 9742014 ............................... ......... 2,536 2,252 2,613 42 946 1,525 1,250 1,798 1,027 1,005 1,0052015 ............................... ......... 2,625 2,322 2,663 42 975 1,576 1,285 1,835 1,055 1,036 1,040

1 Includes annuities to parents and, beginning in fiscal year 2008, partition payments to spouses and divorced spouses where the employee is deceased or not

 otherwise entitled to an annuity. On September 30, 2015, there were 25 parents' annuities in current-payment status averaging $935 and 1,385 partition payments

 averaging $308. 2 A disability annuity ends when the retiree attains full retirement age, at which time the annuity converts to an age and service annuity. Consequently, these annuitants are receiving age and service annuities. Full retirement age is age 65 for those born before 1938 and gradually increases to age 67 for those born 1960 and later.

3 Excludes partition payments to spouses and divorced spouses where the employee is deceased. Averages are after court-ordered partitions.4 Numbers include annuities temporarily being paid at spouse annuity rates, pending final adjudication of survivor annuities. 5 Includes annuities to disabled widow(er)s age 60 and over now payable as aged widow(er)s' annuities. 

Table 5.--Number and average amount of retirement and survivor annuities in current-payment status at end of year,

NOTE.--Data exclude survivor (option) annuities, last payable in December 2005. 

by type of annuitant and fiscal year, 2006-2015

Fiscal year
54 2016 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 2006........................ 35,137 7,919 4,128 5,717 8,830 6,820 204 107 504 197 709 2007......................... 38,743 9,643 3,619 7,273 10,065 6,482 205 113 498 182 661 2008.......................... 38,591 9,753 3,402 7,090 10,127 6,511 166 143 515 188 693 2009.......................... 39,317 10,310 3,213 7,015 10,919 6,283 181 142 463 166 622 2010.......................... 40,191 10,712 3,161 7,319 11,256 6,163 189 99 429 157 702 2011.......................... 39,647 10,542 3,086 7,087 11,301 6,053 173 110 417 158 718 2012.......................... 38,649 10,054 2,858 6,778 11,479 5,828 181 115 454 164 734 2013.......................... 38,094 10,211 2,324 6,502 11,444 5,995 164 111 456 146 739 2014.......................... 37,294 10,210 1,800 6,673 11,495 5,582 133 111 398 144 745 2015.......................... 37,423 10,059 1,686 6,194 11,300 5,546 120 99 462 151 696 Cumulative 1937-2015 5,202,766 1,513,431 525,530 516,905 1,211,468 1,046,120 18,925 85,418 238,804 15,973 26,642

AVERAGE AMOUNT2006........................ ........ $2,389 $2,308 $41 $794 $1,493 $1,334 $1,492 $1,056 $865 $8222007......................... ........ 2,562 2,397 41 890 1,557 1,373 1,585 1,099 885 8542008.......................... ........ 2,650 2,441 41 911 1,629 1,385 1,721 1,153 964 9012009.......................... ........ 2,685 2,558 41 931 1,708 1,443 1,709 1,233 1,030 9962010.......................... ........ 2,786 2,509 41 950 1,740 1,536 1,778 1,203 1,064 9632011.......................... ........ 2,814 2,524 41 958 1,789 1,531 1,779 1,194 1,077 9912012.......................... ........ 2,888 2,585 41 981 1,859 1,515 1,647 1,220 1,130 1,0492013.......................... ........ 2,921 2,565 41 1,003 1,911 1,503 1,916 1,332 1,161 1,1042014.......................... ........ 3,041 2,624 41 1,024 1,985 1,615 1,874 1,294 1,151 1,0952015.......................... ........ 3,114 2,611 41 1,055 2,031 1,685 1,728 1,302 1,153 1,175

Fiscal year

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

by type of annuitant and fiscal year, 2006-2015

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 2015 total includes 3 annuities to parents averaging $542. Cumulative total includes 3,550 annuities to parents.

2 Excludes partition payments to spouses and divorced spouses where the employee is deceased. Averages are after court-ordered partitions.

NOTE.--Cumulative figures reflect adjustments not made in yearly data, but average amounts for each year include effects of changes in rates made by the end of the year. 
 

StatisticalTables 55

Total1 Retirement benefits2 Survivor benefits

 Monthly Monthly Monthly

State3 Number amount Number amount Number amount

Alabama......................................................................... 11,800 $18,528 9,600 $15,211 2,200 $3,316Alaska........................................................................... 200 306 200 249 (4) 57Arizona.......................................................................... 11,800 17,952 9,700 14,805 2,100 3,136Arkansas........................................................................ 12,500 19,378 10,500 16,508 1,900 2,858California........................................................................ 33,200 49,126 26,800 40,273 6,200 8,835Colorado........................................................................ 10,300 16,472 8,600 14,104 1,600 2,363Connecticut..................................................................... 2,900 5,215 2,300 4,295 600 919Delaware........................................................................ 2,700 4,474 2,300 3,839 400 633Washington DC................................................................ 500 625 400 527 100 98Florida............................................................................ 36,100 55,798 30,100 47,351 6,000 8,427Georgia.......................................................................... 21,200 33,349 17,700 28,213 3,400 5,128Hawaii............................................................................ 200 282 200 232 (4) 50Idaho.............................................................................. 5,800 9,031 4,800 7,552 900 1,474Illinois............................................................................. 40,800 61,550 33,300 50,621 7,400 10,893Indiana........................................................................... 19,500 30,090 15,800 24,596 3,600 5,481Iowa................................................................................ 11,200 17,243 9,200 14,171 2,000 3,062Kansas........................................................................... 17,400 27,575 14,500 23,199 2,800 4,364Kentucky........................................................................ 18,000 27,109 14,600 22,110 3,300 4,989Louisiana........................................................................ 9,200 14,033 7,400 11,383 1,800 2,647Maine............................................................................. 3,000 4,260 2,400 3,338 600 920Maryland........................................................................ 10,300 15,685 8,200 12,822 2,000 2,859Massachusetts................................................................. 4,600 7,062 3,700 5,770 900 1,291Michigan........................................................................ 16,700 25,019 13,600 20,427 3,100 4,579Minnesota....................................................................... 17,700 26,848 14,500 22,093 3,200 4,740Mississippi....................................................................... 7,400 10,988 5,900 8,890 1,400 2,095Missouri......................................................................... 23,700 36,436 19,700 30,537 4,000 5,879Montana......................................................................... 7,300 11,500 6,100 9,688 1,200 1,806Nebraska........................................................................ 17,400 29,600 15,100 25,991 2,200 3,594Nevada........................................................................... 4,100 6,248 3,400 5,237 700 1,008New Hampshire................................................................ 1,000 1,529 800 1,239 200 289New Jersey...................................................................... 10,000 16,726 7,900 13,737 2,100 2,987New Mexico..................................................................... 5,100 7,819 4,100 6,349 1,000 1,465New York........................................................................ 24,300 40,440 19,400 33,502 4,900 6,930North Carolina................................................................... 12,400 18,276 9,900 14,842 2,500 3,429North Dakota.................................................................... 3,800 6,109 3,100 4,952 700 1,152

See footnotes at end of table.

Table 7.--Retirement and survivor benefits in current-payment status on September 30, 2015,

 by class and state (amounts in thousands)
56 2016 Annual Report, U.S. Railroad Retirement Board Total1 Retirement benefits2 Survivor benefits Monthly Monthly Monthly State3 Number amount Number amount Number amount Ohio................................................................................ 30,400 $44,962 23,900 $35,476 6,400 $9,474 Oklahoma........................................................................ 6,100 9,351 4,900 7,654 1,100 1,693 Oregon............................................................................ 9,600 14,595 7,800 11,947 1,800 2,637 Pennsylvania..................................................................... 38,400 59,346 29,800 46,960 8,500 12,374 Rhode Island..................................................................... 700 1,046 500 857 100 189 South Carolina................................................................... 8,400 12,970 6,900 10,845 1,500 2,121 South Dakota.................................................................... 2,100 3,241 1,800 2,786 300 453 Tennessee....................................................................... 15,100 23,288 12,400 19,372 2,700 3,906 Texas.............................................................................. 42,200 67,317 34,700 56,207 7,300 11,059 Utah................................................................................. 6,300 10,061 5,200 8,325 1,100 1,731 Vermont.......................................................................... 900 1,167 700 897 200 270 Virginia............................................................................ 20,000 30,868 16,100 25,356 3,900 5,505 Washington...................................................................... 13,400 20,661 10,900 16,932 2,500 3,719

West Virginia..................................................................... 9,800 14,988 7,600 11,701 2,200 3,282Wisconsin........................................................................ 12,200 18,106 10,000 14,867 2,200 3,229Wyoming........................................................................ 4,300 7,280 3,700 6,348 600 926Outside United States:Canada............................................................................ 2,200 1,508 1,400 773 800 734Mexico............................................................................ 200 204 100 73 100 131Other............................................................................... 600 725 400 487 200 238 Total5............................................................................. 656,800 $1,014,387 534,700 $836,534 120,700 $177,427

Table 7.--Retirement and survivor benefits in current-payment status on September 30, 2015,

 by class and state (amounts in thousands) - Continued

1 Includes 1,400 partition payments to spouses and divorced spouses where the employee is deceased or not otherwise entitled to an annuity. 2 Includes 123,000 supplemental annuities to employees receiving regular annuities. In a relatively small number of cases, employees were also receiving spouse or widow(er)'s benefits.3 State of residence of beneficiary on September 30, 2015.4 Less than 50.5 Includes beneficiaries whose state of residence was unknown.

NOTE.--Retirement benefits include regular and supplemental employee annuities, spouse annuities and divorced spouse annuities. Survivor benefits include annuities to aged and 

disabled widow(er)s, widowed mothers and fathers, remarried and divorced widow(er)s, children, parents, and widow(er)s annuities temporarily being paid at spouse annuity rates pending 

final adjudication of survivor annuities. Benefit amounts exclude social security payments to dual beneficiaries.
 

StatisticalTables 57

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

benefit years 2010-2011 through 2014-2015, cash basis

Item 2010-2011 2011-2012 2012-20131 2013-20141 2014-20151

Qualified employees................................. 239,100 235,100 243,800 247,600 248,200Maximum daily benefit rate...................... $66 $66 $66 $68 $70

UNEMPLOYMENT BENEFITS

Net amount of benefits paid (thousands) $51,424 $40,691 $47,174 $39,867 $30,752Payments:2 Number................................................... 89,300 71,800 83,500 69,700 52,100 Average amount per two week claim period......................................... $566 $573 $557 $550 $578Beneficiaries............................................... 11,600 9,200 10,700 10,000 7,600Applications received................................ 14,500 12,300 14,500 13,100 11,500Claims received.......................................... 101,100 81,400 96,000 82,900 62,500Normal benefit accounts exhausted........ 2,800 2,200 2,500 2,300 1,900Non-compensable waiting period only3.. (4) (4) (4) (4) (4)

SICKNESS BENEFITS

Net amount of benefits paid (thousands) $51,161 $49,056 $43,394 $45,316 $48,428Payments:2 Number................................................... 117,100 112,200 102,500 101,100 102,700 Average amount per two week claim period......................................... $585 $585 $571 $555 $572Beneficiaries............................................... 17,400 16,700 15,800 15,600 15,500Applications received................................ 21,200 20,600 19,400 19,100 19,400Claims received.......................................... 137,300 131,700 121,100 119,900 121,300Normal benefit accounts exhausted........ 3,100 3,000 2,600 2,600 2,800Non-compensable waiting period only3.. 100 100 (4) (4) 100

1 In accordance with the Emergency Balanced Budget and Deficit Control Act of 1985, as amended by the Budget Control Act of 2011, amounts reflect a 

reduction of 9.2% under sequestration for days of unemployment and sickness after February 28, 2013, 7.2% for days after September 30, 2013, and 7.3% for days after September 30, 2014.

2 Not adjusted for recoveries or settlements of underpayments.3 Benefits are payable for each day of unemployment or sickness in excess of 7 during the first 14-day registration period in a benefit year.4 Less than 50.

NOTE.--Data covered program activities during the year, regardless of when unemployment or sickness occurred. Starting in June 2009, includes temporary extended unemployment benefits authorized by the American Recovery and Reinvestment Act of 2009, the Worker, Homeownership, and Business Assistance Act of 2009, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the Temporary Payroll Tax Cut Continuation Act of 2011, 

the Middle Class Tax Relief and Job Creation Act of 2012 and the American Taxpayer Relief Act of 2012. Benefits had to begin by December 31, 2013. Net benefits for these temporary payments were $9,388,000 in 2010-2011, $7,011,000 in 2011-2012, $6,868,000 in 2012-2013, $2,391,000 in 2013-2014, and

−$327,000 in 2014-2015.
58 2016 Annual Report, U.S. Railroad Retirement Board Table 9.--All employees, new entrants, employees qualified for RUIA benefits and related data, by employer, 2014 All employees New entrants With With 12 months sufficient Qualified Qualified of service service for for RUIA for RUIA Class or name of employer Total in 2014 RRA annuity benefits Total benefits Tier I Tier II RUIA CLASS OF EMPLOYER Class I railroads................................................................. 210,749 166,027 142,116 198,842 21,667 12,805 $14,932,102 $13,918,867 $3,268,554 Class II railroads................................................................ 5,512 4,188 3,560 5,086 621 367 339,372 324,228 83,019 Class III railroads and switching & terminal companies................................... 45,734 36,145 32,222 42,736 3,941 2,207 3,147,515 2,869,477 701,506 Car-loan companies.......................................................... 1,731 1,380 991 1,574 226 103 101,782 96,212 26,556 Miscellaneous employers1.......................................... 6,725 5,205 3,557 6,005 763 380 465,786 406,614 98,278 Total................................................................................. 270,451 212,945 182,446 254,243 27,218 15,862 $18,986,558 $17,615,397 $4,177,913 SELECTED EMPLOYERS BNSF Railway Co............................................................... 51,783 40,857 32,213 49,197 7,221 5,153 $3,910,862 $3,586,928 $809,843 Canadian National, U.S. Operations

 Bessemer and Lake Erie Railroad Co.......................... 79 55 50 68 15 4 4,721 4,629 1,084

 Chicago Central and Pacific Railroad Co.................... 291 232 215 276 23 10 23,986 21,121 4,579

 Grand Trunk Western Railroad Co............................... 920 668 642 863 103 55 73,597 65,384 13,901 Illinois Central Railroad Co........................................... 4,290 3,371 2,941 4,076 402 237 348,016 306,933 66,842 Pittsburgh and Conneaut Dock Co.............................. 43 25 24 37 13 10 2,074 2,074 562

 Wisconsin Central LTD............................................ 2,334 1,675 1,474 2,192 307 193 196,390 171,918 35,279Canadian Pacific, Soo Line Corporation Dakota, Minnesota & Eastern Railroad Corp.............. 823 592 526 756 88 45 46,528 45,523 12,081 Delaware and Hudson Railway Co. Inc....................... 510 372 361 489 39 26 32,945 31,139 7,820

 Soo Line Railroad Co.................................................... 2,936 2,057 1,825 2,653 322 152 198,159 185,888 42,068CSX Transportation Inc..................................................... 33,227 26,037 22,431 31,093 2,870 1,379 2,335,318 2,193,125 512,147Kansas City Southern Railway Co................................... 3,150 2,521 2,068 2,963 322 182 220,796 207,382 49,037 Gateway Eastern Railway Co....................................... 11 10 9 11 ..... ..... 667 662 181

 Texas Mexican Railway Co........................................... 274 196 126 248 51 28 18,991 17,596 4,092

National Railroad Passenger Corp. (Amtrak)................. 22,429 17,724 15,775 21,537 1,706 1,108 1,496,066 1,399,209 352,241Norfolk Southern Corp...................................................... 31,997 26,081 22,294 30,307 2,251 1,102 2,140,530 2,040,415 500,362Union Pacific Railroad Co................................................. 55,652 43,554 39,142 52,076 5,934 3,121 3,882,455 3,638,942 856,434

1 Includes labor organizations, lessor companies, employer associations and miscellaneous carrier affiliates.

NOTE.--Tier I compensation excludes miscellaneous compensation taxable at the tier I tax rate.

Creditable Compensation (thousands)

U.S. Railroad Retirement Board

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