U.S. Railroad Retirement Board

844 North Rush Street

Chicago, IL 60611-1275

Toll Free: (877) 772-5772

TTY: (312) 751-4701

Directory: (312) 751-4300

www.rrb.gov
U.S. Railroad Retirement Board

Mission Statement

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

and unemployment/sickness insurance benefit programs for railroad workers and 

their families under the Railroad Retirement Act and the Railroad Unemployment 

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

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

Railroad Retirement Board also administers aspects of the Medicare program and 

has administrative responsibilities under the Social Security Act and the Internal 

Revenue Code.

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

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

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

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

and respond to all inquiries promptly, accurately and clearly.

If you have comments or suggestions regarding the information

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

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

Public Affairs

U.S. Railroad Retirement Board

844 North Rush Street

Chicago, IL 60611-1275
UNITED STATES

RAILROAD RETIREMENT BOARD

2019 Annual Report

For Fiscal Year Ended September 30, 2018

The Report in Brief 1

A Review of Operations 6

Administrative Developments 34

Legal Rulings 45

Statistical Tables 47

RRB.gov

1

The Report in Brief

Benefits and Beneficiaries

Benefits paid under the Railroad Retirement and Railroad Unemployment

Insurance Acts totaled almost $12.8 billion in the fiscal year ending 

September 30, 2018. Retirement and survivor benefits were paid by the RRB to about 

540,000 beneficiaries during the fiscal year, of whom 512,000 were on the RRB’s 

annuity rolls at the end of the year. Approximately 24,000 railroad employees were paid 

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

payments under both the Railroad Retirement Act and the Railroad Unemployment 

Insurance Act.

Retirement and survivor benefit payments of $12.7 billion during fiscal year 2018 

were $223.5 million more than payments in the prior year. Employee and spouse 

annuitants were paid some $10.6 billion, accounting for 83 percent of the total 

payments. Employees received over $7.7 billion in age annuities (including $1.4 billion 

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

$0.9 billion in disability annuities, and $60.5 million in supplemental annuities, 

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

 Survivors were paid 

$2.1 billion in annuities and approximately $2.3 million in lump-sum benefits. The 

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

about 8,000 from fiscal year 2017.

Railroad retirement and unemployment insurance benefits totaling almost 

$12.8 billion were paid by the Railroad Retirement Board (RRB) to about 563,000 

beneficiaries in fiscal year 2018. Financial reports issued in 2019 on the 

solvency of the railroad retirement and railroad unemployment insurance systems 

were both favorable. Total railroad retirement system assets 

equaled $28.3 billion as of September 30, 2018. 

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 pages 2 and 6, the Federal Income Tax Transfers section on page 9 and the accompanying table on page 10, which are also presented as cash, the information on pages 2, 

6-14 and 26-28 is presented on the accrual basis of accounting. The primary difference

between the 2 bases of accounting is that the cash basis recognizes revenue and expenditures only when cash is received and paid. The accrual basis, on the other hand, recognizes revenue when it is earned and expenses when they are incurred.

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

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

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

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

annuity when the annuitant attains full retirement age.
2 2019 Annual Report, U.S. Railroad Retirement Board

Gross unemployment and sickness benefits paid in fiscal year 2018 totaled about

$117.4 million. Net benefits totaled approximately $92.6 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 about $12.6 million while net 

benefit payments decreased by more than $12.7 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 

6.8 percent for days after September 30, 2015, 6.9 percent for days after September 30, 

2016, and 6.6 percent for days after September 30, 2017.

Gross unemployment benefits decreased by 24 percent compared to the previous 

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

benefits totaling $40.7 million ($37.8 million net) were paid to more than 9,000 claimants, 

while gross sickness benefits totaling $76.8 million ($54.9 million net) were paid to 

almost 15,900 claimants. This includes a total of $0.1 million net recoveries in temporary 

extended unemployment benefits under the American Recovery and Reinvestment Act of 

2009 and the Worker, Homeownership, and Business Assistance Act of 2009, as amended 

by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 

2010, the Temporary Payroll Tax Cut Continuation Act of 2011, the Middle Class Tax 

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

Financial Reports

The RRB’s 2019 railroad retirement financial report to Congress, which covered 

the period 2019-2043, was generally favorable. It concluded that barring a sudden, 

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

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

years. The long-term stability of the system, however, is still uncertain. Under the current 

financing structure, actual levels of railroad employment and investment return over the 

coming years will largely determine whether corrective action is necessary.

The RRB’s 2019 railroad unemployment insurance financial report was also generally 

favorable. Even as projected maximum benefit rates increase 44 percent (from $77 to $111) 

from 2018 to 2029, 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 2019 in order 

to maintain a minimum account balance, with no surcharge expected in 2020 followed 

by a 1.5 percent surcharge the next two years and intermittently thereafter. Under the 

pessimistic employment assumption, a small, short-term cash flow problem is possible 

during fiscal year 2022, with full repayment of the resulting loan by the end of the same 

year.
The Report in Brief 3

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

fiscal year 2018 showed that, as of September 30, 2018, the net asset value of the Trustmanaged assets was $26.6 billion. This represented an increase from $26.5 billion in 

the previous year, with a net investment return for the year of 7.37 percent. The ending 

balance also reflects a transfer of $1.8 billion to the U.S. Treasury for the payment of 

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

those maintained at the Treasury, equaled $28.3 billion.

The 2019 railroad retirement and railroad unemployment insurance financial reports 

and the National Railroad Retirement Investment Trust’s 2018 annual management report 

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

Service Delivery

Customer Service Plan

In fiscal year 2018, 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 issued new Medicare cards to its beneficiaries, processed a cost-of-living 

adjustment for retirement and survivor benefits, continued to improve its Employer 

Reporting System that allows employers to submit forms and information electronically, 

took steps to further reduce improper payments, implemented initiatives to improve 

processing of disability benefits, retirement claims and Medicare applications, and 

increased use of electronic document imaging in its internal systems.

Office of Inspector General

During fiscal year 2018, 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 five audit reports plus a management information report which 

identified the most serious management and performance challenges facing the RRB.

Investigative activities resulted in 19 arrests, 48 indictments and/or informations, 

42 convictions, 22 civil judgments, and more than $147 million in financial accomplishments. This reflects fraud amounts related to programs administered exclusively by the 

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

security which were identified during Office of Inspector General joint investigative work.
4 2019 Annual Report, U.S. Railroad Retirement Board

Selected Data on Benefit Operations

 Fiscal Year Fiscal Year

Retirement-Survivor

1 2018 2017

Employee age annuities

Number awarded 8,700 9,100

Awarded Age Annuity

 Number being paid at end of period 189,600 190,300

 Average being paid at end of period $2,817 $2,731

Disability converted to age annuity 2

 Number being paid at end of period 47,400 46,200

 Average being paid at end of period $2,474 $2,401

Employee disability annuities

Number of total disability annuities awarded 700 700

Number of occupational disability

 annuities awarded 900 900

Number of total disability annuities being paid 

 at end of period 9,100 9,600

Number of occupational disability annuities

 being paid at end of period 16,000 18,300

Average total disability annuity

 being paid at end of period $2,008 $1,938

Average occupational disability annuity

 being paid at end of period $3,164 $3,087

Supplemental employee annuities3

Number awarded 4,200 5,200

Number being paid at end of period 120,200 122,100

Average being paid at end of period $42 $42

Spouse and divorced spouse annuities

Number awarded, total 10,500 10,800

Number being paid to divorced

 spouses at end of period 5,200 5,100

Number being paid at end of period, total 147,700 146,900

Average being paid to divorced spouses

 at end of period $656 $632

Average being paid at end 

 of period, total $1,035 $1,008

Survivor annuities

Number awarded to aged widow(er)s 5,400 5,500

Number awarded, total 6,900 6,900

Number being paid to aged widow(er)s

 at end of period 84,700 87,800

Number being paid at end of period, total 109,600 113,200

Average being paid at end of period to

Aged widow(er)s $1,721 $1,664

Disabled widow(er)s4 $1,367 $1,326

Widowed mothers (fathers) $1,902 $1,878

Remarried widow(er)s $1,114 $1,071

Divorced widow(er)s $1,118 $1,078

Children $1,110 $1,078

Partition payments5

Number being paid at end of period 1,900 1,700

Average being paid at end of period $317 $315

Lump-sum survivor benefits awarded

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

Average lump-sum death benefit $936 $933

Number of residual payments 6/ 6/

Average residual payment $2,077 $1,040
 The Report in Brief 5

Selected Data on Benefit Operations (Continued)

 Fiscal Year Fiscal Year

 Employees and Earnings7 2018 2017

Average employment 223,000 226,000

Creditable earnings, Railroad Retirement

 Act (billions):

 Tier I $18.98 $18.46

 Tier II $17.65 $17.09

Creditable earnings, Railroad

 Unemployment Insurance Act (billions) $4.13 $4.10

 Benefit Year Benefit Year

 Unemployment-Sickness8 2017-2018 2016-2017

Qualified employees 242,100 260,700

Unemployment benefits

Net amount paid (millions) $40.99 ($37.8)10 $53.99 

Beneficiaries 9,300 (9,000)10 13,200

Number of payments 63,000 90,000

Normal benefit accounts exhausted 2,100 3,100

Average payment per 2-week registration period $601 $594

Sickness benefits

Net amount paid (millions) $56.2 ($54.9)10 $59.8

Beneficiaries 15,700 (15,900)10 16,100

Number of payments 115,000 114,400

Normal benefit accounts exhausted 3,500 3,400

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

1 Benefits are through September 30 for the associated years.

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

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

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

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

after court-ordered partitions. There are no annuitants receiving 1937 Act supplemental annuities.

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

widow(er)s’ annuities.

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

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

6 Fewer than 50.

7 Except for fiscal year 2017 employment, all figures in this section are preliminary.

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

Control Act of 2011, amounts reflect a reduction of 7.2% under sequestration for days of unemployment and 

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

September 30, 2015, 6.9% for days after September 30, 2016, and 6.6% for days after September 30, 2017.

9 Benefit years 2016-2017 and 2017-2018 both include –$0.2 million in temporary extended unemployment benefits 

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

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

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

Job Creation Act of 2012, and the American Taxpayer Relief Act of 2012. Benefits had to begin by December 31, 

2013. Current activity reflects recoveries.

10 Data in parentheses are for fiscal year (October 1, 2017 – September 30, 2018). Unemployment benefits include 

−$0.1 million in temporary extended unemployment benefits.
A Review of Operations

6

RAILROAD RETIREMENT AND 

SURVIVOR PROGRAM

As of September 30, 2018, 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 $28.3 billion, an 

increase of $0.5 billion during the fiscal year. Amounts in the (RR) Account not needed 

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

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

are transferred to the NRRIT, whose Board of 7 trustees is empowered to invest Trust 

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

securities. 

FINANCIAL OPERATIONS - U.S. TREASURY ACCOUNTS

During fiscal year 2018, 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 $12.7 billion in benefit obligations 

(excluding $1.8 billion in social security benefits which were reimbursed by the Social 

Security Administration) during fiscal year 2018.

At the end of fiscal year 2018, total railroad retirement system assets equaled 

$28.3 billion. During fiscal year 2018, benefits totaling approximately $12.8 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 $100.2 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 $6.3 billion, representing 47.7 percent of total financing sources (excluding a loss of 

$87.4 million, mostly due to a change in NRRIT net assets) and $353.2 million more than in 

fiscal year 2017.

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

security taxes. The 2018 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 2018 was $128,400, with all earnings 

subject to the 1.45 percent Medicare tax.

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

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

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

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

benefit payments over and above social security levels. This tax, on earnings up to $95,400 

and $94,500 in 2018 and 2017, respectively, was 4.9 percent on employees in both years. It 

was 13.1 percent on employers in both 2018 and 2017.

Tier I and tier II taxes for fiscal year 2018 amounted to $3.0 billion and $3.4 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 2018 amounted to $4.3 billion.

(text continued on page 9)
8 2019 Annual Report, U.S. Railroad Retirement Board

Costs - Fiscal Year 2018 (In Millions)

TOTAL: $12,974.8

RETIREMENT AND SURVIVOR PROGRAM

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

Financing Sources - Fiscal Year 2018 (In Millions)

GROSS TOTAL: $13,256.61

1

Excludes −$87.4 million as shown under Other Financing Sources on page 11.

National Railroad 

Retirement 

Investment Trust

Transfers-In 13.6%

$1,809.0

Interest on 

Investments 0.3%

$40.8

Federal Income 

Taxes 5.8%

$770.0

Payroll Taxes 47.7%

$6,319.9 Financial Interchange 32.4%

$4,290.0

General 

Appropriations 0.2%

$26.9

Benefit Payments 98.1%

$12,722.6

Salaries and 

Expenses 1.1%

$145.6

Interest 

Expense 0.8%

$106.6
A Review of Operations 9

Interest on Investments and Other Revenue

Interest revenue increased from $31.2 million in fiscal year 2017 to $40.8 million in 

fiscal year 2018. 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 2018 amounted to $674 million during the year. 

Original transfers for fiscal year 2017 totaled $712 million. Net income tax transfers after 

adjustments were $771 million for fiscal year 2018, including a $97 million adjustment 

for calendar year 2013. Net transfers in fiscal year 2017 were $712 million. There were no 

reconciliation adjustments in fiscal year 2017.

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 2009 

through 2018, including reconciliation adjustments through 2013.

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 2018 and 2017 were $22.0 million and $25.0 million, 

respectively. These amounts include Federal income tax transfers for 2018 and 2017. 

The amount appropriated for fiscal year 2018 was 12 percent less than fiscal year 2017, 

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 2017-2018, and also $150,000 for fiscal 

years 2016-2017. (text continued on page 13)
10 2019 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 2009-2018 (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

2009 $144 $304 $3

2010 159 315 3

2011 160 300 3

2012 194 318 4

2013 199 333 3

2014 250 348 2

2015 263 386 2

2016 281 412 2

2017 292 422 2

2018 255 393 1

Reconciliation adjustments4

2009 (2013) 20 2 1

2010 (2013) 23 16 1

2011 (2015) 32 49 ▪ ▪

2012 (2016) 17 60 −1

2013 (2018) 31 66 ▪ ▪
A Review of Operations 11

Railroad Retirement and Survivor Program 

Consolidated Financing Sources, 

Costs and Net Position (Millions) 

For the Fiscal Year Ended September 30 2018 2017

Financing Sources:

Payroll Taxes $6,319.9 $5,966.7

Financial Interchange 4,290.0 4,133.4

Interest on Investments and Other Revenue 40.8 31.2

Federal Income Taxes 770.0 710.0

General Appropriations 26.9 30.0

Other (87.4) 1,515.7

Transfers to the National 

 Railroad Retirement Investment Trust 0.0 0.0

Transfers from the National 

 Railroad Retirement Investment Trust 1,809.0 1,821.0

 Total Financing Sources 13,169.2 14,208.0

Costs:

Benefit Payments 12,722.6 12,461.0

Interest Expense 106.6 101.0

Salaries and Expenses1 145.6 143.1

Other (23.5) (21.2)

 Total Costs 12,951.3 12,683.9

Financing Sources over Costs 217.9 1,524.1

Net Position - Beginning of Period 27,155.5 25,631.4

Net Position - End of Period $27,373.4 $27,155.5

1

 Includes unemployment and sickness insurance salaries and expenses of approximately 

 $19.2 million and $20.0 million for fiscal years 2018 and 2017, respectively.
12 2019 Annual Report, U.S. Railroad Retirement Board

Market value of assets managed 

by NRRIT on September 30, 2018 $26.6 billion

Rate of return of investment portfolio 

managed by NRRIT for full year 

ended September 30, 2018 7.37%

Source: NRRIT 

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

National Railroad Retirement Investment Trust (NRRIT) 

Fiscal Year 2018 Summary
A Review of Operations 13

Other Financing Sources

Other financing sources consisted of $6.7million to be provided by the Office of 

Personnel Management to pay future retirement benefits to RRB employees and 

$29.2 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 $101.9 million, transfers-out of $9.5 million for salaries and 

expenses of the RRB’s Office of Inspector General, a loss on contingent liability of $181.0 

million, and a $17.1 million increase 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 $145.6 million and 

$143.1 million shown on page 11 for salaries and expenses in fiscal years 2018 and 2017, 

respectively, about $19.2 million for fiscal year 2018 and $20.0 million for fiscal year 2017 

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

costs for fiscal year 2018 and $0.9 million for fiscal year 2017 were for the unemployment 

and sickness insurance program. 

Excluding $20.9 million from total costs of $13.0 billion for fiscal year 2018 and 

$20.9 million from total costs of $12.7 billion for fiscal year 2017, total costs for the railroad retirement and survivor program for fiscal year 2018 increased $268.2 million, or 

2.1 percent.

Benefit Payments

In fiscal year 2018, railroad retirement benefit payments increased $261.6 million, or 

almost 2.1 percent, to about $12.7 billion on an accrual basis, including $20.3 million in 

vested dual benefits.

Interest Expense

Interest expense of $106.6 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 

$19.2 million for fiscal year 2018 and $20.0 million for fiscal year 2017, salaries and 

expenses for the railroad retirement and survivor program were about $126.4 million for 

fiscal year 2018 and about $123.1 million for fiscal year 2017, a $3.3 million or 

2.7 percent increase. Adjusted by the $19.2 million in salaries and expenses and 

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

year 2018 administrative expenses for the railroad retirement and survivor program were 

about 0.97 percent of total costs.
14 2019 Annual Report, U.S. Railroad Retirement Board

Other Costs

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

insurance) for RRB employees of $5.8 million for the railroad retirement and survivor 

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

In addition, carrier refunds of $34,000 were incurred. These costs were offset by 

approximately $29.8 million in reimbursements from the Centers for Medicare & Medicaid 

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

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

of approximately $1,500.

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 2018, the net asset value of Trust-managed assets increased from 

$26.5 billion on October 1, 2017, to $26.6 billion on September 30, 2018. This includes 

$1.8 billion that the Trust transferred to the U.S. Treasury for the payment of railroad 

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

year (net of fees) was 7.37 percent.

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

Treasury accounts) grew from $20.7 billion in 2002 to $28.3 billion as of the end of fiscal 

year 2018, after net transfers for benefit payments of approximately $22.9 billion over the 

same time frame.

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

fiscal year 2018, which is available by clicking on the Financial & Reporting tab at RRB.

gov.

BENEFIT OPERATIONS

Retirement and survivor benefits paid, including vested dual benefits and supplemental employee annuities, totaled $12.7 billion in fiscal year 2018, $224 million more than in 

fiscal year 2017. Benefits were paid to about 540,100 beneficiaries in fiscal year 2018, and 

approximately 511,900 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 

2018 and 2017, by type of benefit, and the percent changes in payments between the 2 years.

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

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

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

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

the social security percentage.

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

adjustment, while tier II benefits increased by 0.1 percent. Increases of 2.0 percent for tier I 

and 0.7 percent for tier II were effective December 2017.

These cost-of-living increases provided additional benefit payments of 

about $135 million in fiscal year 2018 

compared to fiscal year 2017.

Monthly retirement and survivor 

benefits being paid numbered nearly 

641,500 at the end of the 2018 fiscal 

year, about 6,800 less than at the end 

of the prior year. Monthly beneficiaries 

on the rolls declined by approximately 

5,000 over the year, from 517,000 

to 511,900. 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 

2018 numbered 262,100, about 2,400 

less than at the end of the previous 

fiscal year. The number of age annuities 

being paid, including 47,400 disability 

annuities converted to age, rose slightly 

from 236,500 to 237,000 over the year, 

while disability annuities decreased from 28,000 to 25,100. Supplemental annuities being 

paid to employees declined by approximately 1,800, numbering 120,200 at the end of the 

year. The number of divorced spouse annuities being paid rose over 100, to 5,200. Spouse 

and divorced spouse annuities together increased by almost 900, totaling 147,700 at yearend. About 109,600 monthly survivor benefits were being paid at the end of fiscal year 2018, 

Amount 

(in millions)

Fiscal year Fiscal year Percent

 Type of benefit 2018 2017 change

Retirement benefits

Employee annuities

Age1 $7,739.4 $7,489.8 +3.3

Disability 933.7 1,015.4 −8.0

Supplemental2 60.5 61.2 −1.1

Spouse and divorced

spouse annuities 1,833.5 1,775.0 +3.3

Total 10,567.2 10,341.4 +2.2

Survivor benefits

Annuities 2,116.5 2,119.5 −0.1

Lump-sum benefits 2.3 2.4 −1.3

Total 2,118.8 2,121.9 −0.1

Partition payments3 7.0 6.2 +12.1

Grand total $12,693.0 $12,469.5 +1.8

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

time the annuity converts to an age and service annuity. FY 2018 and FY 2017 

include $1,368.6 million and $1,291.4 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 2019 Annual Report, U.S. Railroad Retirement Board

a decrease of 3,600 from the previous year. Approximately 1,900 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 2018, an increase of nearly 200 from 

the prior year.

Retirement

Regular employee annuities

Awards of regular employee annuities numbered 10,300 in fiscal year 2018, nearly 400 

less than in fiscal year 2017. Data by type of annuity awarded during the year are given in 

the table shown here.

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

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

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

retirement age (the age 

at which an employee 

can receive full benefits 

with no reduction for 

early retirement). This 

ranges from age 65 for 

those born before 1938 

to age 67 for those born 

in 1960 or later, the 

same as under social 

security. If an employee 

had any creditable 

railroad service before 

August 12, 1983, the 

retirement age for tier 

II purposes will remain 

65. The reduction for

early retirement is 1/180 

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

annuity begins and 1/240 for each additional month.

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

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

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

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

service are referred to as 60/30 retirees.

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

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

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

Average

Employee annuities Age at

 awarded in Monthly Years of retirefiscal year 2018 Number Percent amount service ment

Age

Beginning at full

retirement age or over 1,900 18 $2,573 21.1 67.5

Unreduced, beginning 

at age 60 to under full

retirement age 4,300 42 4,151 37.1 61.0

Reduced, beginning at

age 62 to under full

retirement age 2,500 24 1,988 16.3 63.3

Disability 1,700 16 2,775 20.1 54.8

 Total 10,300 100 $3,121 26.5 61.8

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, 

700 averaging $2,082 per month were 

for total disability and 900 averaging 

$3,343 were for occupational disability. 

Many employees who are disabled for all 

employment but are otherwise qualified 

for an occupational disability annuity 

are initially awarded occupational 

disability annuities in order to expedite 

payment.

An estimated two-thirds of all 

employees recently awarded disability 

annuities will meet the medical criteria 

for a disability freeze determination. 

Number of monthly beneficiaries, 

September 30, 2013, and 2018 (thousands)

Amount of benefits paid,

fiscal years 2013 and 2018 (millions)

1

Includes $60.6 million in fiscal year 2013 and $60.5 million 

in fiscal year 2018 for supplemental annuities.

2

Includes divorced spouses.

1

Without supplemental annuity.

2

Includes divorced spouses.

Average monthly amount,

September 30, 2013, and 2018

 Employee Spouse Survivor

$7,926

$1,530

$2,175

$8,734

$1,834 $2,119

2

2013

2018

1

 Employee Spouse Aged widow(er)

$2,430

$915

$1,476

$2,748

$1,035

$1,721

1 2

2013

2018

 Employee Spouse

 (includes

 divorced

 spouses)

 Survivor

271

141 130

262

148

110

2013

2018
18 2019 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 2018, nearly 7,200, 

or 69 percent, last worked for a railroad either in the calendar year their annuity began or 

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

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

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

until retirement. Awards based on immediate retirement averaged $3,609 per month, 

compared to $2,021 for the 3,200 awards based on deferred retirement. Immediate retirees 

averaged 31 years of railroad service, almost twice the average of 17 years for deferred 

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

While 93 percent of all 60/30 retirements were immediate, only 35 percent of the reduced 

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

retirements accounted for 78 percent of the year’s disability awards.

The 262,100 retired employees on the rolls as of September 30, 2018, were being paid 

regular monthly annuities averaging $2,748. The table shown here presents data by type of 

annuity for these benefits.

Of the 25,100 disability annuities being paid, 9,100 were for total disability and 16,000 

for occupational disability. The two types of disability annuities averaged $2,008 and 

$3,164, respectively. 

In fiscal year 

2018, payments 

totaled about $237 

million for total 

disability annuities 

and $697 million 

for occupational 

disability annuities.

Almost 185,600 

employees on the 

rolls at the end of 

fiscal year 2018 

were immediate 

retirees and their 

regular annuities 

averaged $3,170 per 

month. Annuities 

of the 76,500 deferred retirees averaged $1,724. 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. 

 Employee annuities Average Percent

in current-payment status monthly immediate

on September 30, 2018 Number Percent amount retirements

Age

Beginning at full

retirement age or over 21,800 8 $2,219 49

Unreduced, beginning 

at age 60 to under full

retirement age 107,600 41 3,587 92

Reduced, beginning at

age 60 to under full

retirement age 60,100 23 1,654 28

Disability converted to

age annuity1 47,400 18 2,474 81

Disability 25,100 10 2,746 80

 Total 262,100 100 $2,748 71

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

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

later.

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

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

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

deferred retirees who were dual beneficiaries averaged $1,967, while combined benefits 

to immediate retirees averaged $2,949. 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 2018 averaged $2,081 per month. Tier I 

amounts of some 7,200 employees were completely offset by social security benefits. Tier I 

amounts being paid averaged $1,924.

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

being paid at the end of fiscal year 2018 averaged $894. Employees are eligible for vested 

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

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

some cases, at the end of an earlier year of last railroad service. Some 9,600 retirees were 

receiving vested dual benefits averaging $159 at the end of the fiscal year.

Supplemental employee annuities

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

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

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

before October 1981.

Almost 4,200 supplemental annuities were awarded in fiscal year 2018, about 1,000 

less than in fiscal year 2017. Approximately 3,200 of the awards (77 percent) began 

concurrently with the employee’s regular annuity, while the remaining 900 were to 

employees already receiving a regular annuity. Supplemental annuity awards averaged 

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

 Type of retirement

 Dual benefit status Total Immediate Deferred

Receiving social security benefit

 Number 28,700 9,600 19,200

 Average monthly amount:

 Railroad retirement (regular) $ 975 $1,797 $ 564

 Social security 1,320 1,152 1,404

 Combined benefit 2,295 2,949 1,967

Not receiving social security benefit

 Number 233,300 176,000 57,300

 Average monthly amount $2,966 $3,245 $2,111

Note.--Detail may not add to total due to rounding.
20 2019 Annual Report, U.S. Railroad Retirement Board

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

railroad pension attributable to employer contributions. During the fiscal year, 1,100 

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

pensions. There were no cases in which the supplemental annuity was partially offset by 

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

Supplemental annuities averaged $42 and were being paid to over 120,200, or 46 percent, of the retired employees on the rolls at the end of the 2018 fiscal year.

Spouse and divorced spouse annuities

Annuity awards to spouses and divorced spouses of retired employees numbered 10,500 

in fiscal year 2018, 300 less than in the previous year. The table on page 21 presents 

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

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

age reduction.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Of the approximately 2,700 reduced spouse annuities awarded in fiscal year 2018, 

fewer than 50 averaging $667 per month were to spouses of 30-year employees, and nearly 

2,700 averaging $574 were to spouses of employees with less than 30 years of service.

At the end of fiscal year 2018, over 142,500 spouse annuities averaging $1,049 per 

month were being paid. Almost 5,200 divorced spouse annuities averaging $656 per month 

were also being paid. These included nearly 90, averaging $667, where the employee was 

not yet entitled to an annuity. Families with an employee and spouse on the rolls were paid 

combined railroad retirement benefits averaging $4,032. This included $2,983 in regular 

and supplemental employee annuities and $1,049 in spouse annuities.
A Review of Operations 21

Some 57,700, or 39 percent, of the spouses and divorced spouses on the rolls were also 

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

to these annuitants 

averaged $1,618 per 

month, including $412 

in railroad retirement 

benefits and $1,207 in 

social security benefits. 

Railroad retirement 

annuities to the 86,900 

spouses not receiving 

social security benefits 

averaged $1,455, while 

railroad retirement 

annuities to the 3,100 

divorced spouses 

not receiving social 

security benefits 

averaged $875.

Like regular 

employee annuities, 

spouse annuities 

consist of up to three components. The tier I component equals one-half of the employee’s 

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

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

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

spouse receives a railroad retirement employee annuity, but this reduction may be restored 

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

benefit.

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

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

to spouses.

Of the 142,500 spouses on the rolls at the end of fiscal year 2018, 94,100 were being 

paid tier I amounts averaging $923 per month. The tier I amounts of 48,400 spouses were 

completely offset by other benefits also due. Spouse tier II amounts averaged $478. Vested 

dual benefits averaging $103 were being paid to fewer than 5 spouses. The 5,200 divorced 

spouses on the rolls at the end of fiscal year 2018 were being paid tier I amounts averaging 

$669 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 2018 September 30, 2018

 Monthly spouse Average Average

benefits Number amount Number amount

Beginning at full

retirement age or over 1,800 $ 640 17,500 $ 602

With minor or disabled 

child in care 200 1,273 1,600 1,360

Unreduced, beginning

at age 60 to under full

retirement age 4,900 1,510 78,900 1,443

Reduced rate 2,700 574 44,500 516

Total 9,700 1,082 142,500 1,049

Divorced spouse

annuities 800 717 5,200 656

Grand total 10,500 $1,054 147,700 $1,035

Note.--Detail may not add to total due to rounding.
22 2019 Annual Report, U.S. Railroad Retirement Board

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

benefits during fiscal year 2018.

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 2018 fiscal year, the RRB paid nearly 100 dual retirement tax 

refunds averaging $75. Most of the payments were to employees retiring during the year. 

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

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

1974 may claim them on their Federal income tax returns.

Survivor 

Monthly benefits

Annuity awards to survivors of deceased railroad employees numbered 6,900 during 

fiscal year 2018, about 100 less than the previous year. Some 109,600 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 

84,700, or 77 percent, of the survivor annuities were to aged widows and widowers.

1

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

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

year.

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

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

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

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

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

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

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

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

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

if the parent has remarried.

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

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

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

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

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

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

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

1

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

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

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

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

Aged widow(er)s,

who are eligible for 

benefits at age 60, have 

their tier I and tier II 

amounts reduced if the 

annuity begins before 

full retirement age. 

The eligibility age for 

unreduced annuities 

is gradually rising 

from age 65 to age 67. 

The maximum age 

reductions range from 

17.1 percent to 20.36 

percent, depending on 

the widow(er)’s date 

of birth. Excluding 

nearly 300 annuities 

temporarily paid at 

spouse or divorced 

spouse rates, aged 

widow(er)s’ annuities 

being paid at the end of the 2018 fiscal year included 43,500 which were reduced for age. 

Aged widow(er)s’ tier I amounts being paid averaged $1,361 per month. In nearly 6,600 

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

27,700 aged widow(er)s were also receiving social security benefits, and these averaged 

$1,103. Tier II amounts averaged $467. About 100 vested dual benefits, averaging $69, 

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 2018, tier I amounts being

paid to disabled widow(er)s on the rolls averaged $1,120. (In about 100 cases, the tier I

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

disabled widow(er)s averaged $964. Tier II amounts averaged $292, while the less than 50

vested dual benefits being paid averaged $106.

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

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

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

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

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

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

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

In current-payment

Awarded in status on

fiscal year 2018 September 30, 2018

 Monthly survivor Average Average

 benefits Number amount Number amount

 Aged widow(er)s 5,400 $2,188 84,700 $1,721

 Disabled widow(er)s1 100 1,864 3,400 1,367

 Widowed mothers

 (fathers) 100 1,864 600 1,902

 Remarried widow(er)s 100 1,270 2,900 1,114

 Divorced widow(er)s 800 1,222 9,800 1,118

 Children:

 Under age 18 300 1,415 1,600 1,409

 Student * 1,493 100 1,626

 Disabled 100 1,292 6,500 1,031

 Parents * 1,097 * 962

 Total 6,900 ... 109,600 ...

 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 2019 Annual Report, U.S. Railroad Retirement Board

beneficiaries. Tier I amounts being paid as of the end of fiscal year 2018 averaged $1,371 

for widowed mothers and fathers and $1,027 for children. Fewer than 50 mothers/fathers 

and over 2,000 children received social security benefits averaging $1,085 and $649, 

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

$560 and $115. 

Lump-sum survivor benefits

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

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

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

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

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

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

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

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

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

insured status requirements. Nearly 2,500 lump-sum death benefits averaging $936 were 

awarded during fiscal year 2018. Approximately 300 benefits were to widow(er)s, while 

almost 2,200 were to other individuals who paid the funeral expenses.

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

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

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

2018 fiscal year, and they averaged $2,077. 

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 2018, there were nearly 1,900 spouses and divorced spouses 

receiving payments averaging $317 where the employee was deceased or not otherwise 

entitled to an annuity. While all but 1 received a partitioned tier II benefit, only 

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

partitioned supplemental benefit.
A Review of Operations 25

Medicare Enrollments

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

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

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

period is waived. 

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

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

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

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

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

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

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

Eligible railroad retirement annuitants and social security beneficiaries whose benefits 

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

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

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

26,600 beneficiaries for Medicare during fiscal year 2018. As of the end of the fiscal year, 

about 465,400 persons were enrolled in the Part A plan, and approximately 446,100 

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

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

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

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

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

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

$868 million in the 2018 fiscal year.

The regular monthly premium for Part B during fiscal year 2018 was $134.00. 

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 2018, approximately 14,500 Part B 

premiums and about 11,600 Part D premiums were increased by an IRMAA amount.

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

and at the end of fiscal year 2018 about 427,700 annuitants were having their premiums 

withheld. Of the remaining Part B enrollees, nearly 2,700 were paying premiums to the 

RRB, either directly or through an intermediary, and 15,800 had their premiums paid by 

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

The agency is also able to collect Part C and Part D premiums from monthly benefits 

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

pay their Part C and Part D premiums directly to their plan. At the end of fiscal year 2018, 

about 12,800 Part C premiums and approximately 54,900 Part D premiums were deducted 

from benefits paid by the RRB.
26 2019 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 

2018 were less than financing sources by $24.4 million and the net position increased by 

$24.4 million from $224.6 million at the end of fiscal year 2017 to $249.0 million at the end 

of fiscal year 2018. For fiscal year 2018, as compared to fiscal year 2017, total financing 

sources for the railroad unemployment and sickness insurance program decreased by 

$0.7 million (0.6 percent) to $114.5 million.

(text continued on page 28)

Unemployment and Sickness Insurance Program

Consolidated Financing Sources, 

Costs and Net Position (Millions)

For the Fiscal Year Ended September 30 2018 2017

Financing Sources:

Employer Payroll Taxes $133.8 $126.4

Interest Income1 0.0 4.0

General Appropriations 0.0 0.0

Other (19.3) (15.2) 

 Total Financing Sources 114.5 115.2

Costs:

Benefit Payments:

 Unemployment 28.1 47.6 

 Sickness 67.0 56.8 

Other (5.0) 0.8

 Total Costs 90.1 105.2

Financing Sources over Costs 24.4 10.0

Net Position - Beginning of Period 224.6 214.6

Net Position - End of Period2 $249.0 $224.6

1

Interest income of $2.5 million was offset by a similar amount in account receivables adjustments in 

fiscal year 2018. 

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%

$95.1

Financing Sources - Fiscal Year 2018 (In Millions)

GROSS TOTAL $133.8

UNEMPLOYMENT AND SICKNESS 

INSURANCE PROGRAM

1

Less Transfers-Out and carriers’ refunds of $19.3 million.

Costs - Fiscal Year 2018 (In Millions)

TOTAL $95.1

Employer 

Payroll Taxes1 100%

$133.8
28 2019 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 2018, the taxable earnings 

base was the first $1,560 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 2018, 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 2018. Most employers were assessed the minimum 

rate in 2018. New employers in 2018 paid an initial rate of 1.97 percent.

Employer Payroll Taxes

Payroll taxes by employers totaled $133.8 million during fiscal year 2018. This was an 

increase of 5.9 percent or $7.4 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 2018, of which the RRB earned $2.5 million as its pro rata share. 

(The interest income of $2.5 million was offset by a similar amount in accounts receivables 

adjustments.)

Costs

Total costs for the railroad unemployment and sickness insurance program decreased 

by $15.1 million (14.4 percent) to $90.1 million. 

Benefit Payments

During fiscal year 2018, unemployment insurance benefit payments decreased by 

$19.5 million (41.0 percent) to $28.1 million. Sickness insurance benefit payments 

increased by $10.2 million (18.0 percent) to $67.0 million.
A Review of Operations 29

BENEFIT OPERATIONS

Net unemployment and sickness benefits totaling about $97.1 million were paid in the 

2017-2018 benefit year, $16.6 million less than in the prior year. In accordance with the 

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

Control Act of 2011, amounts reflect a reduction of 7.3 percent for days of unemployment 

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

6.9 percent for days after September 30, 2016, and 6.6 percent for days after September 

30, 2017. Beneficiaries numbered 24,500, in comparison to the previous year’s total of 

28,500. Over 500 employees received both unemployment and sickness benefits during the 

2017-2018 benefit year. The number of unemployment benefit claimants decreased by 29 

percent, while sickness benefit claimants decreased by 2 percent. Total net unemployment 

benefit payments decreased by 24 percent, while net sickness benefits decreased by 6 

percent. The number of employees qualified for benefits under the Railroad Unemployment 

Insurance Act decreased 7 percent to 242,100.

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 2017-2018, there were 

7,800 and 13,200 unemployment and sickness benefit waiting period claims, respectively.

Unemployment

Some 9,300 railroad workers were paid $40.9 million in net unemployment benefits 

during the 2017-2018 benefit year, including $0.2 million in recovered temporary extended 

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

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

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

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

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

claimants decreased by approximately 3,900 from the prior year total of 13,200, and the 

benefit amount decreased $13.0 million from the prior year’s total of $53.9 million. The 

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

year 2017-2018, the same as the previous benefit year. 

The mid-month unemployment count in the 2017-2018 benefit year began with a July 

count of 2,500 claimants. The count fluctuated before reaching a peak of 3,700 in January 

2018. The count began to decline in February before reaching a low of 1,600 in May 2018. 

For the 2017-2018 benefit year as a whole, the weekly number of claimants averaged 

2,600 in comparison to an average of 3,800 in the previous benefit year. The overall 

unemployment benefit claimant rate, measured in relation to the number of employees 

qualified to receive benefits under the Railroad Unemployment Insurance Act during a 

particular time period, fell 24 percent to 3.8 per 100 qualified, from the previous year’s 5.1 

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 2019 Annual Report, U.S. Railroad Retirement Board

Item

Benefit year 2017-2018 Benefit year 2016-2017

Total

 Unemploy-

 ment1 Sickness Total

 Unemploy-

 ment1

 Sickness

 Applications 32,100 12,500 19,600 36,900 16,800 20,100

 Claims 209,200 75,500 133,700 242,000 108,100 133,800

 Claimants 2 24,500 9,300 15,700 2 28,500 13,200 16,100

 Net amount of benefits3

$97,053,600 $40,879,500 $56,174,100 $113,683,200 $53,859,100 $59,824,100

 Number of payments

 Normal 157,100 56,600 100,500 184,600 83,500 101,100

 Extended 20,800 6,400 14,500 19,800 6,500 13,300

 Total 177,900 63,000 115,000 204,400 90,000 114,400

 Average amount per 

2-week registration period3

Normal $603 $604 $602 $599 $596 $601

Extended 563 569 560 564 566 563

 Total 598 601 597 596 594 597

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

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

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

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

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

Relief Act of 2012. Benefits had to begin by December 31, 2013. The amount for benefit years 2016-2017 and 2017-2018 

each totaled –$0.2 million. Current activity reflects recoveries. 

2 Benefits for both unemployment and sickness were paid to approximately 700 employees in benefit year 2016-2017 and

500 employees in benefit year 2017-2018. 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 7.2% for days after September 30, 2013, 7.3% for days after September 30, 2014, 

6.8% for days after September 30, 2015, 6.9% for days after September 30, 2016, and 6.6% for days after September 30, 

2017.

Major unemployment and sickness benefit operations,

benefit years 2017-2018 and 2016-2017

(text continued on page 32)

per 100 qualified. The median age for all unemployment benefit claimants was 42 years, as 

compared to 39 in the previous benefit year.
 A Review of Operations 31

Unemployment and Sickness Benefit Claimants by Age,

Benefit Year 2017-2018

Claimants under the Railroad Unemployment Insurance Act, 

Benefit Years 2013-2014 through 2017-2018

9,970

7,568

16,420

13,194

9,317

15,611 15,516 15,963 16,052 15,689

2013-2014 2014-2015 2015-2016 2016-2017 2017-2018

Unemployment

Sickness

145

2,224

2,983

2,412

1,432

79 121

1,748

3,602

4,651

5,099

510

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

Unemployment

Sickness
32 2019 Annual Report, U.S. Railroad Retirement Board

Sickness

The number of sickness benefit claimants during the 2017-2018 benefit year was 

15,700, nearly 400 less than the previous year. Gross sickness benefits of $77.3 million 

were paid, $0.3 million more than in the prior benefit year. Net sickness benefits totaled 

$56.2 million, reflecting repayment of a large amount of benefits following settlements of 

suits for injuries. Benefits payable for an injury are recoverable if the claimant is awarded 

damages or receives a settlement for the injury. Net benefits decreased by approximately 

$3.7 million in comparison with the previous year.

The utilization rate for sickness benefits was 6.5 percent of qualified employees, higher 

than the previous benefit year’s rate of 6.2 percent, which was the lowest figure since the 

program’s inception. The average duration of sickness was 73 days in benefit year 2017-

2018, up from 71 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 (23 percent), 

mental disorders, including drug and alcohol addictions (12 percent), circulatory and heart 

disease (7 percent), and symptoms, signs and all ill-defined conditions (7 percent). The 

median age of all sickness benefit claimants was 50 years, as compared to 49 years in the 

previous benefit year.
 A Review of Operations 33

RAILROAD EMPLOYMENT

The preliminary average monthly railroad employment in fiscal year 2018 fell 1.3 

percent to 223,000 from the 226,000 average of the previous fiscal year. After a period of 

sustained growth, recent railroad employment peaked in April 2015 at 253,000, the highest level since November 1999. Employment then declined 11.5 percent through September 

2018. January 2018 had the lowest employment level of fiscal year 2018 at 220,000, while 

May 2018 had the highest employment level of 225,000.

Note.--Numbers for 2018 are preliminary.

Average Railroad Employment

Fiscal Years 2014 through 2018

215,000

220,000

225,000

230,000

235,000

240,000

245,000

250,000

255,000
34

Performance Management

Customer Service Plan

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

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

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

publicizes the Customer Service Plan and performance results and posts them in every 

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

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

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

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 2018, 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. The timeliness index for retirement applications, 

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

includes considerable manual intervention, is 91.4 percent, whereas the timeliness index 

for railroad unemployment and sickness benefit applications and claims only, a highly 

automated process, is 99.9 percent. Overall timeliness was virtually the same as the 

previous fiscal year, declining by just a tenth of a percentage point. The RRB also met 

or exceeded eight out of ten of its customer service performance goals for the year in its 

Annual Performance Plan.

Reducing Improper Payments

The RRB prepares risk assessments in response to provisions of the Improper 

Payments Elimination and Recovery Act (IPERA) and Office of Management and 

Budget (OMB) guidance. The objective is to evaluate payment outlays susceptible to 

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

that the agency administers. Risk assessments for the Railroad Retirement Act (RRA), 

Railroad Unemployment Insurance Act (RUIA), and railroad Medicare programs were 

Administrative Developments

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

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

previously included in the Fiscal Year 2016 Performance and Accountability Report. 

Per OMB guidance, if the RRA or RUIA programs undergo any significant legislative or 

programmatic changes, significant funding increases, and/or changes that would result in a 

substantial impact, the agency will perform a new risk assessment of the affected program. 

The railroad Medicare risk assessment will be conducted again following the prescribed 

risk assessment schedule from OMB.

The RRB’s estimated improper payment rate for the RRA and RUIA programs has 

consistently fallen below the statutory threshold for “significant improper payments.” 

Therefore, the RRB requested reporting relief for these two programs following the 

guidance in OMB Circular A-123, Appendix C, Part II.A.3. OMB granted the RRB 

reporting relief for the RRA and RUIA programs in July 2018. Medicare was the only 

program with payment integrity data reported in fiscal year 2018. Medicare data included 

analysis of the Medicare fee-for-service payment data from the Centers for Medicare 

and Medicaid Services’ comprehensive error rate testing (CERT) program issued in 

November 2017. This included claims sampled between July 1, 2015, and June 30, 2016. 

The reporting requirements of IPERA were incorporated into the Medicare portion of the 

payment integrity report.

In addition, pursuant to a request from OMB, the RRB provided the railroad Medicare 

improper payment amount and percentage, reduction outlook, root cause breakdown, and 

overpayments recaptured outside payment recapture audits, as well as the dollar amounts 

of confirmed fraud per the agency’s Office of Inspector General. Information provided to 

OMB was incorporated into their website, PaymentAccuracy.gov, which features current 

and historical improper payment data for all government agencies and is available to 

the public for viewing. The RRB subsequently validated the agency’s information on this 

website to ensure its accuracy.

Disability Benefits

The RRB continued to make improvements in its disability claims processes.

• Access to The Work Number (TWN) system was expanded to include field office 

managers, hearings officers, and program evaluation staff. The TWN system 

allows authorized RRB employees to obtain income verification reports that 

contain basic employment information about an individual’s job title, employment 

status, and income. TWN access was first made available to the RRB’s disability 

claims examiners in fiscal year 2017.

• In August 2018, the RRB decided to no longer release the RL-8A, Occupational 

Disability Certification, to disabled annuitants meeting certain criteria. The RRB 

had first implemented the RL-8A in August 2017, and released the forms to 152 

disability annuitants. The decision to no longer release nor conduct continuing 

disability reviews (CDRs) for this specific group of disabled annuitants was based 

on the findings and recommendations of the Government Accountability Office 
36 2019 Annual Report, U.S. Railroad Retirement Board

in its report issued on February 21, 2018, Railroad Retirement Board, Actions 

Needed to Improve the Effectiveness and Oversight of Continuing Disability 

Reviews (GAO-18- 287). As a result, form RL- 8A was declared obsolete.

• The conversion of disability paper records to electronic imaging includes all initial

claims types (employees, widow(er)s, and children). In 2019, the “Disability to

Imaging” project team will attempt to add additional workloads to the paperless

process, such as CDRs. Also, plans are underway to improve the electronic

document routing process. The reengineering of other business processes

will further ease the migration from a paper-based system to an electronic

environment.

Service Enhancements

Employer Reporting System

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

railroad employers to submit information to the RRB through a secure and efficient 

electronic process instead of mailing paper forms. In fiscal year 2018, the agency added 

an electronic version of forms GL-4, Discrepancies on Service/Compensation Report, and 

GL-4a, Discrepancies on Service/Compensation Report Tracer to ERSNet. Employers now 

have the ability to receive both notices electronically and on-demand via the internet.

Cost-of-Living Adjustment

In December 2018, tier I benefits increased by 2.8 percent while tier II benefits rose 

by 0.9 percent, due to a cost-of-living adjustment (COLA). The increases were effective 

with the January 2019 payments, with income tax withholding calculated using updated 

tax tables. The increase was paid to 523,161 annuitants, and was also included in RRBpaid social security benefits to 125,041 beneficiaries. The total amount of the COLA was 

almost $20.3 million in railroad retirement annuities and $4.3 million in social security 

benefits. The standard Medicare Part B premium for 2019 increased from $134 per month 

to $135.50, with increased premiums for some high-income beneficiaries.

New Medicare Cards

Section 501 of the Medicare Access and CHIP Reauthorization Act of 2015 provided 

for removal of social security numbers on Medicare cards and replacement with a unique 

Medicare-specific number. While this effort was led by the Centers for Medicare and 

Medicaid Services (CMS), the RRB had responsibility for issuing the replacement cards to 

its 475,226 Medicare beneficiaries. With contractor support, the cards were printed and 

released on June 21, 2018. By replacing the social security number with a unique Medicare 

identifier, beneficiaries will be less susceptible to identity theft.
Administrative Developments 37

Officials

For the first time since 1934, three new Board Members simultaneously assumed office. 

In February 2019, Erhard Chorlé was sworn in as the Chairman, John Bragg as the Labor 

Member, and Thomas Jayne as the Management Member. At the time of his appointment, 

Mr. Chorlé was a partner with the Chicago law firm of Pedersen & Houpt, following a long 

career as a senior official in Illinois state government. Mr. Bragg was a vice president with 

the Brotherhood of Railroad Signalmen and, in that capacity, also a permanent member 

of the National Railroad Adjustment Board. Mr. Jayne was a senior general attorney 

for the BNSF Railway Company and, before that, a partner with the St. Louis law firm 

of Thompson Coburn LLP. Mr. Bragg replaced Walter Barrows, and Mr. Jayne replaced 

Steven Anthony, both of whom retired. The Board’s previous Chairman, Michael Schwartz, 

retired in August 2015. Martin Dickman continues to serve as the Inspector General for the 

RRB, a position he has held since 1994.

Human Capital Management

Staffing

More than half of the RRB’s employees have 20 or more years of service, and almost 

34 percent of the current workforce will be eligible for retirement by fiscal year 2020. To 

help cope with the loss of experience and bridge the knowledge gap, the agency is placing 

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

training, development and succession planning. The RRB continues to work on developing 

a new methodology to identify potential areas of skill and knowledge gaps which it plans 

to implement through the agency’s Learning Management System (LMS). The LMS is an 

information system that assists the agency in managing and planning its training program. 

This new methodology will incorporate job analysis of agency positions to identify critical 

competencies and skill gaps within the current employee base, which the LMS can be used 

to address.

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

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

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

representative positions. In fiscal year 2018, the RRB posted openings for claims examiner 

positions (Medicare and unemployment/sickness insurance), in addition to claims assistant 

and claims representative positions. All of these openings drew a high volume of applicants. 

The agency also announced a number of priority information technology and security jobs 

for the Bureau of Information Services.

From the above announcements, 130 internal and 35 external candidates were 

selected for positions including claims assistant, claims representative, equal employment 

opportunity specialist, actuary, accountant, and one position (chief financial officer) in the 

Senior Executive Service.
38 2019 Annual Report, U.S. Railroad Retirement Board

Several training classes for new claims examiners were initiated or completed in 2018, 

including examiners in the areas of initial disability adjudication, as well as initial and 

post-entitlement retirement and survivor benefits. Training classes for initial adjudication 

of unemployment and sickness benefits, as well as Medicare-related actions, started in 

February 2019, with projected completion dates in late fall or early winter. The Office of 

Programs projects a continuing need for numerous initial and post training classes for 

employees who are responsible for customer service, adjudication, and policy and systems 

for both the RRA and RUIA through fiscal year 2021.

Training

The training section in the RRB’s Bureau of Human Resources continues to create, 

implement and modify an overall training program with the goal of creating opportunities 

to assist employees in building the knowledge, skills and abilities needed to achieve the 

agency’s strategic goals. In 2018, they coordinated and hosted the RRB Employee Fair 

for headquarters employees. About 200 employees participated in the 2-day event that 

included workshops and informational booths for different RRB-provided services and 

topics. In addition, the training team conducted workshops on individual development 

plans throughout the year. They also implemented an onboarding program for new 

employees; created and published 12 online courses to the agency’s LMS to satisfy 

mandatory federal training requirements, as well as online training for new policies and 

procedures implemented during the year; and, coordinated the delivery of more than 34 

in-person, instructor-led training sessions on soft-skill courses.

The agency continues to use its LMS, also known as RRB University, as the cornerstone 

of its training and development activities. This platform allows the agency to accurately 

track, document and deliver training opportunities to employees throughout the RRB, and 

has been incorporated into mandatory technical training for employees in the agency’s 

Bureau of Field Service and Office of Programs. In 2018, more than 1,010 employees and 

contractors completed 1,339 individual learning objects (i.e. online courses, instructor-led 

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

of 22,370 learning-object completions.

Employee Survey

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

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

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

employees to the 2018 survey were positive. Of the 861 employees invited to complete 

the survey, 413 did so, for a response rate of 48 percent. Scoring for 39 survey items 

were identified as strengths (65 percent or more positive) while only 2 survey items were 

identified as a challenge (35 percent or more negative). The agency’s “engagement index” 

score met OPM’s goal for 2018 of 68 percent, and met or exceeded the governmentwide 

benchmarks in all areas.
Administrative Developments 39

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. About 94 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 75 percent 

feel their work gives them a feeling of personal accomplishment. Almost 82 percent like the 

kind of work they do, and 83 percent feel they are held accountable for achieving results. 

Also, 81 percent of agency employees feel supported by their supervisors in balancing work 

and other life issues.

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

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

example, only 34 percent agree that steps are taken to deal with poor performers, while 

39 percent feel creativity and innovation are rewarded. Almost 40 percent feel they do 

not have sufficient resources to get their jobs done. As a result, this is an area the agency 

intends to concentrate on improving in the coming years.

Employee Recognition

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

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

employees, supervisors and work teams have the opportunity to be recognized for their 

accomplishments, with the nominees, finalists and winners honored at an annual awards 

ceremony. The 31st awards ceremony was held in July 2018 at Kasbeer Hall on Loyola 

University Chicago’s neighboring Water Tower campus. The program honored eight 

individual nominations and two team nominations.

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 

2018, the RRB’s information security team administered statutorily required securityawareness training for agency employees and contractors. Staff members identified 

as having more significant information security responsibilities participated in 

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

and coordinated training for all employees and necessary contractors on safeguarding 

controlled unclassified information, federal tax information, and Privacy Act information. 
40 2019 Annual Report, U.S. Railroad Retirement Board

Information Resources Management

In fiscal year 2018, the RRB received approval from the National Archives and 

Records Administration (NARA) of NA-1005 for the management of email records under 

a “Capstone” approach. NARA established this approach for managing and scheduling 

email records with NARA Bulletin 2013-02. Retention periods are determined by the role or 

position of the individual, rather than by the content of each email message. All emails of 

specified senior (Capstone) officials are permanent, and all other agency employee accounts 

are temporary subject to a common disposal period, such as seven years. This approach is 

simpler and easier to automate.

Process Improvements

The RRB implemented several improvements to assist employees in the Office of 

Programs in effectively and efficiently processing benefit claims and payments.

• In June 2018, the new Automated Retirement Payments (ARP) program was

successfully migrated into production. ARP is closely associated with the agency’s

Application Express (APPLE) system, since the filing of an application for employee,

spouse or divorced spouse retirement benefits on APPLE will initiate ARP. The

new program evaluates and formats the information in the retirement application

entered in APPLE, along with several other systems, in order to process initial

retirement claims and Medicare applications, along with some other cases that

required manual handling. This new program helps set the stage for the agency to

replace its current legacy systems.

• The purpose of the latest version of the System to Process Excess Earnings Data

(SPEED) is to automate permanent work deductions to retirement benefits by

developing and implementing a mechanical process rather than applying them

manually. In addition to processing the necessary work deductions, the new

program generates and releases any overpayment letters, and posts the information

to the RRB’s financial management system.

• A bar code was added to all RUIA mainframe-produced letters. The bar code is

used to automatically index documents scanned to imaging without the need for

manual intervention. Index means to assign the SSN, or claim number, form type,

and sometimes the employee’s name to an individual document. By automatically

indexing scanned documents, the items are immediately available for viewing.

Changes were also made to use a bar-coded cover sheet for actionable documents

scanned by field offices to benefit processing units at headquarters. The bar code

is used to automatically index the document, making it immediately available and

instantly routing it to an appropriate work queue for handling. Previously, the

cover sheet was only used to scan non-actionable, file-only documents. Scanning

applications were updated in each of the 53 field offices to handle the changes.
41 2018 Annual Report, U.S. Railroad Retirement Board Administrative Developments 41

• The RRB implemented a new web application, the Electronic List of Managed

Objectives (ELMO), to replace an older, non-supported dBase application known as

TICKLER. Using the new ELMO application, RRB employees can create call-ups

for future RRA and RUIA work items, as well as tracers for internal processes of

existing work items.

Disaster Recovery Test

In August 2018, the RRB conducted a successful agencywide disaster recovery 

test, with no major issues or material weaknesses identified. Similar to past tests, all 

participating staff performed their activities from their alternate work-at-home site 

rather than onsite at agency headquarters.

Office of Equal Opportunity

Equal Opportunity Policies and Procedures

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

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

is provided to ensure employees know their rights and responsibilities under various 

federal laws and executive orders. The discrimination complaint process and the antiharassment complaint process have the elements of impartiality, timeliness and credibility. 

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

agency employees have access to information regarding the complaint programs. 

Diversity Program

Throughout the year, the agency’s Office of Equal Opportunity (OEO) sponsored 

many events and activities to foster an inclusive work environment and enhance the 

understanding of disability issues. These included a variety of cultural enrichment events 

to commemorate African American History Month, Women’s History Month, Asian 

Pacific Heritage Month, and Hispanic Heritage Month, as well as National Disability in 

Employment Awareness Month. These events/programs are organized by the OEO’s three 

employee committees: the Workplace Diversity Committee, the Federal Women’s Program 

Committee and the Employee’s with Disabilities Advisory Council. 

Recruitment

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

cooperatively with the Bureau of Human Resources in 2018 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.
42 2019 Annual Report, U.S. Railroad Retirement Board

Public Information Activities

The RRB maintains direct contact with railroad retirement beneficiaries through 

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

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

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

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

benefit programs.

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

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

and Railroad Unemployment Insurance Acts since 1957. At informational conferences 

sponsored by the Labor Member of the Board, RRB representatives described and discussed 

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

Medicare programs, and provided attendees with comprehensive informational materials. 

In 2018 a total of 600 individuals affiliated with rail labor attended 16 informational 

conferences. The office also sponsors a program of pre-retirement seminars designed for 

railroad employees and spouses nearing retirement. Mid-2018 the platform was reshaped 

to better align outreach efforts and agency resources with current needs and interests of 

the rail community. Beginning in September 2018, informational conferences and preretirement seminars sponsored by the Office of the Labor Member were combined into a 

single program, offered to those nearing retirement and local union officers. In 2018, 23 

seminars were held in RRB-serviced cities throughout the country with 817 individuals in 

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

speak before their meetings, seminars and conventions. In 2018, the Labor Member’s Office 

was represented at 19 union gatherings attended by 4,255 railroad labor officials. Field 

personnel addressed 32 local union meetings with 1,440 members in attendance.

Hosted by the Office of the Labor Member, RRB executives and staff helped conduct 

the National Reporting Officers (NRO) meeting. This took place at agency headquarters 

in October 2018, and included presentations by RRB staff and a representative of the 

Internal Revenue Service (IRS). An NRO is a rail union official responsible for reporting 

compensation and depositing railroad retirement and unemployment insurance taxes on 

behalf of his or her members, and 21 individuals attended the 2018 meeting. Topics covered 

included the following: RRB’s strategic plan and information technology modernization; 

plans for improving the disability program; field service initiatives; online services and 

multi-factor authentication; unemployment and sickness benefits for participants in an 

employee-assistance program; RRB and IRS audits; recent court decisions; reporting and 

tax issues; and retirement annuities. Trustee William C. Walpert also gave a report on the 

status of the National Railroad Retirement Investment Trust.

At seminars for railroad executives and managers, agency representatives review 

programs, financing, and administration, with special emphasis on those areas which 

require cooperation between railroads and RRB offices. During 2018, the Management 
Administrative Developments 43

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

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

employees and their spouses.

The Management Member’s Office also hosted the 10th annual National Rail Employer 

Training Seminar in Chicago in August 2018, attended by 153 reporting personnel from 

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

Social Security Administration, presented on a variety of topics, including: RRB and IRS 

audits; basic reporting and specific IRS reporting issues; employer coverage; the railroad 

unemployment insurance program’s experience rating system; services and reporting 

forms available on the agency website or ERSNet; debt collection issues; cyber security; 

retirement and survivor annuities; and effects of recent courts decisions. The RRB’s Office 

of Inspector General also conducted a session on efforts to protect the RRB 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 here can be found at RRB.gov/OurAgency/InspectorGeneral/Library. 

Office of Audit

During fiscal year 2018, the Office of Audit published six reports, including mandated 

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

Improper Payments Elimination and Recovery Act (IPERA) of 2010 compliance audit, 

the annual financial statement audit, and an assessment of the RRB’s compliance with 

the Digital Accountability and Transparency Act of 2014. The OIG also issued an audit 

of the RRB’s enterprise risk management process. In total, the Office of Audit issued 

50 recommendations to agency management and identified more than $408 million in 

questioned costs.

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

Circular A-136, the OIG issued a document that identified the most serious management 

challenges facing the RRB and its progress in addressing them. The OIG identified the 

following challenges: program integrity to strengthen the RRB’s disability program; 

information technology security and systems modernization; management of railroad 

Medicare; the RRB’s continued noncompliance with IPERA and assessing payment 

accuracy; human capital management; material weaknesses related to financial statement 

reporting; and lack of RRB oversight of the National Railroad Retirement Investment 

Trust.
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.

44 2019 Annual Report, U.S. Railroad Retirement Board

Office of Investigations

The Office of Investigations focuses on identifying, investigating, and presenting RRB 

fraud cases for prosecution or monetary recovery action. It also seeks to prevent and 

deter RRB program fraud by reporting systemic weaknesses in agency operations and 

processes identified through investigative work. In order to maximize the impact of its 

resources, the office pursues cooperative investigative activities in coordination with other 

Inspectors General, such as the Office of Inspector General for the Department of Health 

and Human Services, and other law enforcement agencies, such as the Federal Bureau of 

Investigation and the U.S. Secret Service. 

As of September 30, 2018, the Office of Investigations’ caseload totaled 273 matters, 

which represents more than $558 million in potential fraud losses.1

 During fiscal year 

2018, the office secured 19 arrests, 48 indictments and/or informations, 42 convictions, 22 

civil judgments, and more than $147 million in financial accomplishments.2
Legal Rulings

45

Court Cases

Two petitions for review were filed during the fiscal year in the U.S. Circuit Courts

of Appeal, with no rulings issued and both cases still pending at the end of the 

year. In addition, one case was opened in the U.S. District Court for the Southern District 

of Texas but it was subsequently dismissed. 

Legal Opinions

The RRB’s Office of General Counsel issued eight formal legal opinions in fiscal year 

2018. The following are of special interest.

Development of Current Medical Evidence L-2017-59

The opinion clarifies that under section 220.45(b) of the RRB’s regulations, the 

development of additional medical evidence covering the preceding 12 months may not 

be required when finding a claimant disabled, provided that the record is complete and 

detailed enough to allow the RRB to make a disability determination. The decision as to 

whether or not to develop medical evidence covering the preceding 12 months should be 

made on a case-by-case basis.

In-Home Support Services L-2017-60, L-2017-61

Two opinions addressed the topic of whether or not earnings by annuitants providing 

in-home support services should be counted as earnings for work deduction purposes. 

The opinions analyzed the work deduction rules for in-home services in the states of 

Washington and Virginia. Both opinions found that the annuitants’ earnings were to be 

considered wages, and that work deductions were appropriate.

Restated MOU between Treasury and RRB L-2018-2

The General Counsel provided historical background on the memorandums of 

understanding (MOUs) between the Secretary of the Treasury and the RRB regarding 

advances the RRB receives from the U.S. Treasury in order to pay Social Security 

Equivalent Benefits (SSEB) to certain annuitants. The opinion explained that the 

Department of the Treasury provided a “Restatement” of all prior MOUs to allow for one 

consolidated review, which makes for easier tracking of the current terms of the MOU. 

Three cases involving the RRB were filed with federal courts

 and the RRB’s Office of General Counsel issued 

eight legal opinions during fiscal year 2018.
The opinion reviewed the Restated MOU and provided recommendations for action by the 

three-member Board.

Appeals

Any claimant for benefits under the Railroad Retirement Act (RRA) or the Railroad 

Unemployment Insurance Act (RUIA) may appeal a determination he or she feels is not 

justified. This appeal must be filed within certain time frames. Appeals are heard and 

decided by the RRB’s Bureau of Hearings and Appeals. An appellant who is dissatisfied 

with the decision on his or her appeal may further appeal the case to the three-member 

Board within a prescribed period of time.

RRA

 During fiscal year 2018, 220 appeals were filed with the Bureau of Hearings and 

Appeals under the RRA, and the Bureau rendered decisions in 262 appeals. The 

reconsideration decision was sustained in 149 cases. In 113 appeals the decision was 

favorable to the claimant in whole or in part.

Seventy-eight appeals were filed with the Board in fiscal year 2018, and the Board 

issued 60 decisions. In 44 cases the previous ruling of the hearings officer was affirmed, in 

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

partially favorable. The Board remanded 8 cases to the Bureau of Hearings and Appeals. 

Two appeals were dismissed. At the end of the year, 131 appeals were pending before the 

Board.

RUIA

 During fiscal year 2018, 43 appeals were filed with the Bureau of Hearings and 

Appeals under the RUIA, and the Bureau rendered decisions in 43 appeals. The 

reconsideration decision was sustained in 23 cases. In 20 appeals the decision was 

favorable to the claimant in whole or in part.

Eight appeals were filed with the Board in fiscal year 2018. The Board rendered 

decisions in 2 appeals affirming the decision of the hearings officer, and in 1 appeal the 

decision was favorable to the appellant. At the end of the year 9 appeals were pending 

before the Board.

46 2019 Annual Report, U.S. Railroad Retirement Board
STATISTICAL

TABLES
Total1 Retirement2 Survivor2 Unemployment3, 4 Sickness4

BENEFICIARIES (in thousands)2009....................................................... 626 430 167 24 182010....................................................... 617 428 161 22 182011....................................................... 603 429 156 11 182012....................................................... 595 429 150 10 172013....................................................... 592 429 146 11 162014....................................................... 585 428 141 10 162015....................................................... 581 428 136 9 162016....................................................... 583 428 131 17 172017....................................................... 574 427 127 12 162018....................................................... 563 423 123 9 16BENEFIT PAYMENTS (in millions)2009....................................................... $10,663.8 $8,311.0 $2,192.0 $111.7 $48.12010....................................................... 10,939.8 8,588.6 2,187.1 109.6 50.02011....................................................... 11,047.2 8,778.5 2,165.3 48.3 52.32012....................................................... 11,418.8 9,155.4 2,171.7 41.1 47.52013....................................................... 11,726.4 9,456.5 2,175.5 47.8 42.92014....................................................... 11,980.9 9,724.9 2,167.2 37.7 46.72015....................................................... 12,257.3 10,012.2 2,156.9 34.0 49.22016....................................................... 12,480.4 10,202.4 2,139.2 77.6 55.72017....................................................... 12,574.9 10,341.4 2,121.9 46.6 58.82018....................................................... 12,785.7 10,567.2 2,118.8 37.8 54.91 Beginning in fiscal year 2008, beneficiaries and benefit payments include partition payments to spouses and divorced spouses where the employee is deceased or not otherwise entitled to an annuity. Benefit payments also include a small amount of payments for hospital insurance benefits for services in Canada.

2 Retirement benefits include vested dual benefit and supplemental annuity payments. Survivor benefits include vested dual benefit payments.3 Includes temporary extended unemployment benefits under the American Recovery and Reinvestment Act of 2009 and Worker, Homeownership, and Business Assistance

 Act of 2009, as amended by the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the Temporary Payroll Tax Cut Continuation Act of 2011, the Middle Class Tax Relief and Job Creation Act of 2012, and the American Taxpayer Relief Act of 2012. Benefits had to begin by December 31, 2013.4 In accordance with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011, amounts reflect a reduction of 9.2% under  sequestration for days of unemployment and sickness after February 28, 2013, 7.2% for days after September 30, 2013, 7.3% for days after September 30, 2014, 6.8% for  days after September 30, 2015, 6.9% for days after September 30, 2016, and 6.6% for days after September 30, 2017.

Table 1.--Beneficiaries and benefits paid under the Railroad Retirement Act and the Railroad Unemployment Insurance Act, by fiscal year, 2009-2018, cash basis

Fiscal year

NOTE.--Number of beneficiaries represents all individuals paid benefits in year. In total number for each year, beneficiaries are counted only once, even though they may have received more than one type of benefit. In fiscal year 2018, 6,700 individuals received both retirement and survivor benefits, 500 employees received both unemployment and sickness benefits, and 1,900 employees received benefits under both the Railroad Retirement Act and the Railroad Unemployment Insurance Act. These figures are partly estimated, and totals for earlier years are similarly adjusted.

48 2019 Annual Report, U.S. Railroad Retirement Board
 

StatisticalTables 49

Item 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 

RAILROAD RETIREMENT ACCOUNTReceipts

Tax transfers 1..................................................................... $2,501.2 $2,599.0 $2,712.7 $2,659.8 $3,140.2 $3,392.2 $3,760.8 $3,586.7 $3,562.9 $3,822.9Interest and profit on investments 2....................................... 12.0 11.0 12.3 11.4 9.0 14.0 17.2 16.8 16.4 15.8Transfers from the National RR Investment Trust 3.................. 1,553.0 1,989.0 1,744.0 2,026.0 1,581.0 1,429.0 1,191.0 1,410.0 1,821.0 1,809.0Transfers from the SSEB Account 3....................................... ........ 81.0 255.0 19.0 171.0 93.0 129.0 ........ (296.0) 91.0Loan repayments from RUI Account 4..................................... ........ ........ 48.4 ........ ........ ........ ........ ........ ........ ........ Loan repayments from DBP Account 4..................................... ........ ........ ........ ........ ........ 4.5 ........ ........ ........ ........ 

Expenditures

Benefit payments 5............................................................... $4,326.9 $4,474.4 $4,600.3 $4,775.0 $4,906.2 $5,044.0 $5,106.8 $5,229.0 $5,321.4 $5,446.1Financial Interchange adjustment 6....................................... (104.6) (13.1) (88.5) (141.9) (166.6) (164.0) (162.3) (146.5) ........ ........ Net transfers to administration............................................. 63.4 68.7 73.6 69.6 70.2 69.3 72.1 72.3 76.7 85.7Loans to RUI Account......................................................... ........ 46.5 ........ ........ ........ ........ ........ ........ ........ ........ Loans to DBP Account 7...................................................... ........ ........ ........ ........ ........ 4.5 ........ ........ ........ ........ 

Balance at end of period 8............................................................ $418.2 $519.0 $706.5 $720.2 $811.7 $791.8 $877.3 $739.6 $446.7 $656.1SOCIAL SECURITY EQUIVALENT BENEFIT ACCOUNT 9Receipts

Tax transfers 1..................................................................... $2,528.9 $2,514.9 $2,675.3 $2,878.5 $2,954.1 $3,163.1 $3,389.3 $3,097.5 $3,113.8 $3,267.3Interest and profit on investments 2....................................... 19.0 18.9 21.9 20.1 22.4 21.9 24.3 18.6 14.9 24.4Transfers under financial interchange 10................................. 4,137.3 4,391.6 4,574.3 4,651.0 4,499.0 4,700.8 4,676.6 4,662.7 4,522.5 4,942.4Advances against financial interchange 11.............................. 3,661.1 3,819.0 3,820.4 3,738.6 3,943.0 3,886.1 3,849.9 3,926.1 4,095.4 4,109.1

Expenditures

Benefit payments............................................................... $6,107.6 $6,243.7 $6,291.1 $6,506.7 $6,686.9 $6,815.2 $7,035.4 $7,090.4 $7,124.5 $7,226.7Financial Interchange adjustment 6....................................... 104.6 13.1 88.5 141.9 166.6 164.0 162.3 146.5 ........ ........ Net transfers to administration............................................. 32.5 33.6 29.6 31.4 30.1 32.3 32.9 30.0 30.5 29.8Transfers under financial interchange 10................................. 524.3 535.1 477.2 510.9 576.6 611.6 594.7 656.8 637.4 596.5Repayment of advances against financial interchange 4............ 3,564.8 3,837.6 3,946.6 3,946.3 3,863.1 4,041.9 3,982.7 3,940.1 4,054.5 4,194.3Transfers to the National RR Investment Trust/RR Account 3... ........ 81.0 255.0 19.0 171.0 93.0 129.0 ........ (296.0) 91.0

Balance at end of period............................................................ $803.8 $804.0 $807.9 $939.8 $863.9 $877.8 $880.8 $721.9 $917.6 $1,122.4

See footnotes at end of table.

Fiscal Year

Table 2.--Status of the Railroad Retirement Act accounts and trust funds, by fiscal year, 2009-2018 (in millions), cash basis
50 2019 Annual Report, U.S. Railroad Retirement Board Item 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 NATIONAL RAILROAD RETIREMENT INVESTMENT TRUST 12 Cash and investment balance at end of period 13...........................$23,330.8 $23,770.4 $22,119.0 $23,586.2 $24,963.7 $26,039.9 $24,483.9 $25,007.7 $26,389.6 $26,468.7 DUAL BENEFITS PAYMENTS ACCOUNT 14 Dual benefit transfers 15............................................................... $72.0 $64.0 $56.9 $50.9 $44.9 $39.0 $34.0 $29.0 $25.0 $22.0 Loans from Railroad Retirement Account 7.................................... ........ ........ ........ ........ ........ 4.5 ........ ........ ........ ........ Benefit payments..................................................................... 69.5 62.1 55.2 48.6 42.6 37.2 31.9 27.5 23.6 20.2 Repayment of loans from Railroad Retirement Account 4............... ........ ........ ........ ........ ........ 4.5 ........ ........ ........ ........ Balance at end of period 8............................................................ $2.5 $1.9 $1.7 $2.3 $2.3 $1.8 $2.1 $1.5 $1.4 $1.8 Table 2.--Status of the Railroad Retirement Act accounts and trust funds, by fiscal year, 2009-2018 (in millions), cash basis - Continued Fiscal Year

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

Revenue Code as amended. In calendar years 2011-2012, Social Security Equivalent Benefit Account includes general revenue transfers under the Tax Relief, Unemployment InsuranceReauthorization, and Job Creation Act of 2010 and the Middle Class Tax Relief and Job Creation Act of 2012, respectively. The final reconciliation for calendar years 2011-2012occurred in June 2015. In fiscal year 2012, Social Security Equivalent Benefit Account includes a one-time general revenue transfer under the Hiring Incentives to Restore Employment Actof 2010.

2 Net of interest on U.S. Treasury adjustments for payroll tax refunds (see note 1). 3 Under the Railroad Retirement and Survivors' Improvement Act of 2001, as amended, the portion of the Railroad Retirement Account not needed to pay current administrative expenses

is to be transferred to the National Railroad Retirement Investment Trust (Trust). The Trust may transfer funds back to the Railroad Retirement Account for payment of benefits. The balance of the Social Security Equivalent Benefit (SSEB) Account not needed to pay current benefits and administrative expenses is to be transferred to the Trust or to the Railroad Retirement Account. The SSEB Account transferred funds to the Trust in fiscal year 2003 and to the Railroad Retirement Account thereafter. In fiscal year 2017 the Railroad RetirementAccount transferred funds to the SSEB Account to pay benefits. In fiscal year 2018 the SSEB Account transferred funds to the Railroad Retirement Account to pay benefits. 4 Includes interest. 5 Effective January 1, 2002, supplemental benefits are paid from the Railroad Retirement Account. 6 Adjustments in benefit payments charged to the Social Security Equivalent Benefit Account as compared to actual financial interchange benefits, with interest. This adjustment was

discontinued in fiscal year 2017.

7 Due to delay in enactment of a continuing resolution, the Dual Benefits Payments Account borrowed $4,500,000 from the Railroad Retirement Account in October 2013 in order to pay

vested dual benefits. The loan was repaid in entirety in December 2013. 8 The Railroad Retirement Account balance reflects (a) the current net difference between Railroad Retirement Board payments of social security benefits and the receipt of 

reimbursements for such payments, (b) liabilities for uncashed check credits received from U.S. Treasury, and (c) credits for undistributed payment returns and recoveries. The DualBenefits Payments Account balance does not carry over to the following year. 9 Established October 1, 1984, to keep track of the financing and payment of social security level portions of railroad retirement benefits.

10 Transfers to or from OASDHI Trust Funds under section 7(c)(2) of the 1974 Railroad Retirement Act.11 Advances, including interest, from U.S. Treasury to offset lag in receipt of financial interchange funds under section 7(c)(4) of the 1974 Railroad Retirement Act as amended.12 Established February 1, 2002, for investment of railroad retirement assets.13 Source: National Railroad Retirement Investment Trust.14 Established October 1, 1981, to keep track of the financing and payment of vested dual benefits.15 Transfers from U.S. Treasury under section 15(d) of the Railroad Retirement Act of 1974 and Federal income tax transfers under section 72(r) of the Internal Revenue Code as amended.
 

StatisticalTables 51

Table 3.--Status of the Railroad Unemployment Insurance Account, by fiscal year, 2014-2018 (in thousands), cash basis

Fiscal year

 Item 2014 2015 2016 2017 2018

RECEIPTS

 Taxes............................................................... $6,248 $46,672 $90,241 $100,030 $108,255 Interest............................................................ 4,415 3,165 2,514 1,945 2,480

 Transfer from Administration fund

 under sec. 11(d) of the RUI Act........................ 12,257 11,339 13,375 12,357 11,208 Undistributed recoveries of benefit payments1...... (271) 368 2,458 (2,866) (439) Total............................................................ $22,649 $61,544 $108,588 $111,466 $121,504

EXPENDITURES

 Benefit payments2, 3.......................................... $83,823 $83,501 $133,492 $105,614 $92,750 Funding for Office of Inspector General............... 1,037 1,053 1,080 1,260 1,522 Total............................................................ $84,860 $84,554 $134,572 $106,875 $94,272Cash balance end of period................................. $118,012 $95,002 $69,019 $73,610 $100,843

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. Current activity primarily reflects recoveries. FY 2014: $619,000, FY 2015: -$308,000, FY 2016: -$154,000, FY 2017: -$229,000, and FY 2018: -$101,000.3 In accordance with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011, amounts reflect a reduction of 9.2% under sequestration for days of unemployment and sickness after February 28, 2013, 7.2% for days after September 30, 2013, 7.3% for days after September 30, 2014, 6.8% for days after September 30, 2015, 6.9% for days after September 30, 2016, and 6.6% for days after September 30, 2017.
52 2019 Annual Report, U.S. Railroad Retirement Board Table 4.--Status of the RUIA Administration Fund, by fiscal year, 2009-2018 (in thousands), cash basis Transfer to Railroad Unemployment Insurance Taxes and Administrative Account under Balance at Fiscal year interest expenditures1 Sec. 11d2 end of period 2009...................................... $23,151 $14,305 $9,808 $9,465 2010...................................... 22,990 15,729 8,305 8,421 2011...................................... 23,722 12,442 7,918 11,783 2012...................................... 25,463 14,608 11,219 11,419 2013...................................... 26,202 14,591 10,706 12,324 2014...................................... 25,225 15,172 12,257 10,120 2015...................................... 28,063 12,987 11,339 13,858 2016...................................... 27,146 15,498 13,375 12,132 2017...................................... 26,551 14,842 12,357 11,483 2018...................................... 25,621 17,429 11,208 8,467 

1 Expenditures for each year included encumbrances as of end of year. Fiscal years 2009 and 2011-2017 reflect 

reallocation of prior period administrative expenses between the Railroad Retirement Act and Railroad Unemployment Insurance Act programs.

2 Transfers to the Railroad Unemployment Insurance Account are based on the excess of the accrual balance on the prior

September 30 over $6,000,000.
 

StatisticalTables 53

Retired employees

Spouses

Awarded Disability and Widowed

age converted Supple- divorced Aged Disabled mothers Remarried Divorced 

 Total1 annuity to age2 Disability mental3 spouses widow(er)s4 widow(er)s5 (fathers)4 Children widow(er)s widow(er)s4

NUMBER AT END OF YEAR2009 ............................ 680,534 190,302 34,688 49,116 120,778 136,467 119,459 4,323 814 10,417 4,361 9,5202010 ............................ 676,653 190,236 35,557 47,960 121,166 137,112 114,929 4,251 776 10,168 4,161 9,5952011 ............................ 672,484 190,100 36,259 46,850 121,422 138,253 110,372 4,136 745 9,881 4,003 9,5982012 ............................ 668,957 189,909 37,370 45,066 121,614 139,741 106,268 4,081 739 9,687 3,824 9,6602013 ............................ 664,055 189,569 39,506 41,745 121,530 140,894 102,186 3,965 703 9,463 3,666 9,7102014 ............................ 661,069 190,224 41,554 37,891 122,086 142,626 98,435 3,868 688 9,164 3,506 9,7472015 ............................ 656,847 190,114 43,141 34,514 123,037 143,920 94,279 3,741 665 8,978 3,344 9,7042016 ............................ 654,127 190,835 44,744 31,308 122,966 145,891 90,919 3,660 652 8,695 3,187 9,7092017 ............................ 648,277 190,301 46,180 27,990 122,050 146,850 87,817 3,528 623 8,478 3,037 9,7082018 ............................ 641,470 189,571 47,436 25,059 120,222 147,708 84,710 3,378 604 8,232 2,903 9,760AVERAGE AMOUNT2009 ............................ ......... $2,126 $1,909 $2,400 $42 $795 $1,294 $1,084 $1,597 $935 $879 $8672010 ............................ ......... 2,186 1,954 2,419 42 817 1,329 1,108 1,643 937 896 8802011 ............................ ......... 2,244 1,995 2,437 42 839 1,366 1,133 1,663 941 907 8922012 ............................ ......... 2,363 2,098 2,526 42 882 1,426 1,181 1,700 980 956 9382013 ............................ ......... 2,451 2,180 2,574 42 915 1,476 1,217 1,757 1,006 986 9742014 ............................ ......... 2,536 2,252 2,613 42 946 1,525 1,250 1,798 1,027 1,005 1,0052015 ............................ ......... 2,625 2,322 2,663 42 975 1,576 1,285 1,835 1,055 1,036 1,0402016 ............................ ......... 2,675 2,358 2,675 42 991 1,618 1,307 1,883 1,066 1,050 1,0552017 ............................ ......... 2,731 2,401 2,691 42 1,008 1,664 1,326 1,878 1,078 1,071 1,0782018 ............................ ......... 2,817 2,474 2,746 42 1,035 1,721 1,367 1,902 1,110 1,114 1,118

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, 2018, there were 22 parents' annuities in current-payment status averaging $962 and 1,865 partition payments averaging $317.

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

3 Excludes partition payments to spouses and divorced spouses where the employee is deceased. Averages are after court-ordered partitions.4 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. 

Fiscal year

Table 5.--Number and average amount of retirement and survivor annuities in current-payment status at end of year,

by type of annuitant and fiscal year, 2009-2018
54 2019 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 2009.......................... 39,317 10,310 3,213 7,015 10,919 6,283 181 142 463 166 622 2010.......................... 40,191 10,712 3,161 7,319 11,256 6,163 189 99 429 157 702 2011.......................... 39,647 10,542 3,086 7,087 11,301 6,053 173 110 417 158 718 2012.......................... 38,649 10,054 2,858 6,778 11,479 5,828 181 115 454 164 734 2013.......................... 38,094 10,211 2,324 6,502 11,444 5,995 164 111 456 146 739 2014.......................... 37,294 10,210 1,800 6,673 11,495 5,582 133 111 398 144 745 20153........................ 36,316 10,059 1,686 6,194 11,300 5,546 120 99 462 151 696 2016......................... 35,950 10,236 1,682 5,910 11,373 5,319 123 94 380 116 715 2017......................... 33,540 9,121 1,562 5,178 10,758 5,484 86 86 390 127 746 2018......................... 31,795 8,665 1,662 4,155 10,459 5,411 78 94 379 123 766 Cumulative 1937-2018 5,303,956 1,541,222 530,357 532,080 1,243,560 1,062,335 19,212 85,691 239,951 16,345 29,646 AVERAGE AMOUNT

2009......................... ........ $2,685 $2,558 $41 $931 $1,708 $1,443 $1,709 $1,233 $1,030 $996

2010......................... ........ 2,786 2,509 41 950 1,740 1,536 1,778 1,203 1,064 963

2011......................... ........ 2,814 2,524 41 958 1,789 1,531 1,779 1,194 1,077 991

2012......................... ........ 2,888 2,585 41 981 1,859 1,515 1,647 1,220 1,130 1,049

2013......................... ........ 2,921 2,565 41 1,003 1,911 1,503 1,916 1,332 1,161 1,104

2014......................... ........ 3,041 2,624 41 1,024 1,985 1,615 1,874 1,294 1,151 1,095

2015......................... ........ 3,114 2,611 41 1,055 2,031 1,685 1,728 1,302 1,153 1,175

2016......................... ........ 3,124 2,667 41 1,062 2,096 1,677 2,034 1,371 1,166 1,174

2017......................... ........ 3,159 2,723 41 1,047 2,113 1,752 1,806 1,368 1,189 1,209

2018......................... ........ 3,188 2,775 41 1,054 2,188 1,864 1,864 1,386 1,270 1,222

Fiscal year

Table 6.--Number and average amount of retirement and survivor annuities awarded during year, by type of annuitant and fiscal year, 2009-2018

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 2018 total includes 3 annuities to parents averaging $1,097. Cumulative total includes 3,557 annuities to parents.

2 Excludes partition payments to spouses and divorced spouses where the employee is deceased. Averages are after court-ordered partitions.3 Supplemental annuity awards exclude more than 1,000 restorations due to Legal Opinion 2014-2, Reductions to Supplemental Annuities for 401(k) Distributions.

NOTE.--Cumulative figures reflect adjustments not made in yearly data, but average amounts for each year include effects of changes in rates made by the end of the year. 
 

StatisticalTables 55

Total1 Retirement benefits2 Survivor benefits

 Monthly Monthly Monthly

State3 Number amount Number amount Number amount

Alabama........................................................................... 11,700 $19,195 9,600 $15,829 2,100 $3,363Alaska.............................................................................. 200 305 200 247 (4) 57Arizona............................................................................. 11,900 19,385 9,900 16,173 2,000 3,195

Arkansas......................................................................... 12,300 19,968 10,400 16,900 1,900 3,053

California......................................................................... 31,200 48,891 25,500 40,336 5,600 8,529Colorado........................................................................... 10,500 17,899 9,000 15,496 1,500 2,395Connecticut........................................................................ 2,900 5,773 2,400 4,880 500 892Delaware.......................................................................... 2,900 5,205 2,600 4,588 400 616Washington DC................................................................... 400 629 300 551 100 78Florida.............................................................................. 35,800 59,003 30,100 50,356 5,600 8,616Georgia............................................................................ 21,100 35,018 17,800 29,735 3,300 5,274Hawaii............................................................................... 200 266 200 223 (4) 42Idaho................................................................................ 5,700 9,420 4,800 7,934 900 1,476Illinois............................................................................... 39,300 63,196 32,400 52,474 6,700 10,674Indiana............................................................................. 18,700 30,697 15,400 25,278 3,300 5,395Iowa.................................................................................. 11,200 18,389 9,300 15,344 1,800 3,027Kansas............................................................................. 16,800 28,284 14,200 23,992 2,600 4,278Kentucky........................................................................... 17,300 27,320 14,100 22,281 3,100 5,024Louisiana.......................................................................... 9,000 14,475 7,400 11,934 1,600 2,536Maine................................................................................ 2,800 4,109 2,200 3,277 600 831Maryland........................................................................... 10,300 16,832 8,500 14,200 1,700 2,625Massachusetts.................................................................... 4,600 7,601 3,800 6,408 800 1,191Michigan........................................................................... 15,800 25,160 12,800 20,442 2,900 4,698Minnesota......................................................................... 16,800 26,995 13,800 22,487 2,900 4,488Mississippi......................................................................... 6,900 10,908 5,600 8,861 1,300 2,045Missouri............................................................................ 23,300 37,613 19,600 31,782 3,600 5,806Montana........................................................................... 7,500 12,426 6,400 10,649 1,000 1,769Nebraska.......................................................................... 18,700 33,891 16,500 30,050 2,200 3,823Nevada............................................................................. 4,000 6,391 3,300 5,380 600 1,007New Hampshire.................................................................. 1,100 1,749 900 1,457 200 291New Jersey........................................................................ 10,000 18,186 8,100 15,310 1,800 2,875New Mexico....................................................................... 5,000 8,052 4,000 6,605 900 1,441New York.......................................................................... 23,700 42,191 19,300 35,494 4,400 6,687North Carolina..................................................................... 12,100 18,889 9,800 15,536 2,300 3,346North Dakota...................................................................... 4,000 6,687 3,300 5,541 700 1,141See footnotes at end of table.

Table 7.-- Retirement and survivor benefits in current-payment status on September 30, 2018, by class and state (amounts in thousands)
56 2019 Annual Report, U.S. Railroad Retirement Board Total1 Retirement benefits2 Survivor benefits Monthly Monthly Monthly State3 Number amount Number amount Number amount Ohio................................................................................ 28,400 $44,371 22,600 $35,319 5,700 $9,032 Oklahoma........................................................................ 5,900 9,558 4,800 7,765 1,100 1,787 Oregon............................................................................ 9,300 14,740 7,600 12,168 1,600 2,555 Pennsylvania..................................................................... 36,500 60,035 29,200 48,624 7,200 11,394 Rhode Island..................................................................... 700 1,243 600 1,053 100 190 South Carolina................................................................... 8,400 13,762 7,000 11,601 1,400 2,154 South Dakota.................................................................... 2,200 3,692 1,900 3,211 300 478 Tennessee....................................................................... 14,900 24,254 12,400 20,289 2,500 3,952 Texas.............................................................................. 42,300 72,000 35,200 60,617 6,900 11,311 Utah................................................................................. 6,000 10,257 5,000 8,583 1,000 1,666 Vermont.......................................................................... 800 1,173 700 925 200 247 Virginia............................................................................ 19,100 31,555 15,600 26,119 3,500 5,425 Washington...................................................................... 13,000 21,229 10,700 17,530 2,200 3,688 West Virginia..................................................................... 9,300 15,185 7,400 12,068 1,900 3,111 Wisconsin........................................................................ 11,700 18,460 9,700 15,341 1,900 3,106

Wyoming........................................................................ 4,700 8,491 4,200 7,537 500 946

Outside United States:

Canada............................................................................ 2,000 1,311 1,400 684 700 627Mexico............................................................................ 200 179 100 67 100 112Other............................................................................... 600 702 400 480 200 222 Total5............................................................................. 641,500 $1,053,213 530,000 $878,029 109,600 $174,592

Table 7.-- Retirement and survivor benefits in current-payment status on September 30, 2018, by class and state (amounts in thousands) - Continued

1 Includes 1,900 partition payments to spouses and divorced spouses where the employee is deceased or not otherwise entitled to an annuity. 2 Includes 120,200 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, 2018.4 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 2013-2014 through 2017-2018, cash basis

Item 2013-20141 2014-20151 2015-20161 2016-20171 2017-20181

Qualified employees................................. 247,600 248,200 254,200 260,700 242,100

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

UNEMPLOYMENT BENEFITS

Net amount of benefits paid (thousands) $39,867 $30,752 $71,655 $53,859 $40,880

Payments:2 Number................................................... 69,700 52,100 112,300 90,000 63,000 Average amount per two week claim period......................................... $550 $578 $591 $594 $601

Beneficiaries............................................... 10,000 7,600 16,400 13,200 9,300Applications received................................ 13,100 11,500 24,100 16,800 12,500

Claims received.......................................... 82,900 62,500 137,000 108,100 75,500Normal benefit accounts exhausted........ 2,300 1,900 3,300 3,100 2,100

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

SICKNESS BENEFITS

Net amount of benefits paid (thousands) $45,316 $48,428 $54,511 $59,824 $56,174

Payments:2 Number................................................... 101,100 102,700 109,700 114,400 115,000

 Average amount per two week claim period......................................... $555 $572 $592 $597 $597

Beneficiaries............................................... 15,600 15,500 16,000 16,100 15,700

Applications received................................ 19,100 19,400 19,800 20,100 19,600

Claims received.......................................... 119,900 121,300 129,200 133,800 133,700

Normal benefit accounts exhausted........ 2,600 2,800 3,100 3,400 3,500

Non-compensable waiting period only3.. (4) 100 (4) (4) (4)

1 In accordance with the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act of 2011, amounts reflect a

reduction of 9.2% under sequestration for days of unemployment and sickness after February 28, 2013, 7.2% for days after September 30, 2013, 7.3% for days after September 30, 2014, 6.8% for days after September 30, 2015, 6.9% for days after September 30, 2016, and 6.6% for days afterSeptember 30, 2017.

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 $2,391,000 in 2013-2014, -$327,000 in 2014-2015, -$212,000 in 2015-2016, -$167,000 in 2016-2017,and -$169,000 in 2017-2018. 

Current activity primarily reflects recoveries.
Table 9.--All employees, new entrants, employees qualified for RUIA benefits, and related data, by employer, 2017

All employees New entrants Creditable Compensation (thousands)

With

With 12 months sufficient Qualified Qualified

of service service for for RUIA for RUIA

Type or name of employer Total in 2017 RRA annuity benefits Total benefits Tier I Tier II RUIA

TYPE OF EMPLOYER Class I line-haul railroads................................................ 163,363 131,797 127,318 157,033 6,161 2,983 $12,247,383 $11,607,963 $2,762,824Non-Class I line-haul railroads and switching & terminal companies................................. 22,935 17,188 14,909 20,732 1,995 1,047 1,335,285 1,287,753 358,148Commuter railroads1................................................ 50,430 41,142 36,221 48,694 2,988 1,853 3,952,341 3,623,086 860,180Car-loan companies......................................................... 2,270 1,760 1,236 2,149 179 113 143,268 136,499 37,694Labor organizations......................................................... 2,402 1,804 1,729 2,024 186 78 185,224 157,840 34,564Miscellaneous employers2....................................... 5,176 3,667 2,948 4,785 679 411 382,180 338,957 81,203 Total 246,576 197,358 184,361 235,417 12,188 6,485 $18,245,681 $17,152,098 $4,134,612SELECTED EMPLOYERS BNSF Railway Co............................................................. 45,047 37,726 33,674 43,813 1,072 468 $3,655,408 $3,427,744 $780,613

Canadian National, U.S. Operations Bessemer and Lake Erie Railroad Co........................ 68 61 47 68 ..... ..... 4,775 4,728 1,225

 Chicago Central and Pacific Railroad Co.................. 298 233 210 288 24 18 23,900 21,844 4,958

 Grand Trunk Western Railroad Co............................. 801 625 589 771 36 13 66,008 60,763 13,393

 Illinois Central Railroad Co......................................... 4,078 3,262 3,007 3,914 308 197 338,461 308,030 68,689

 Pittsburgh and Conneaut Dock Co............................ 35 26 17 35 ..... ..... 1,778 1,778 596

 Wisconsin Central Transportation Corp.................... 2,323 1,737 1,529 2,147 288 142 184,118 170,453 37,735

Canadian Pacific, Soo Line Corporation Dakota, Minnesota & Eastern Railroad Corp............ 706 557 536 661 58 41 50,419 48,322 11,389 Delaware and Hudson Railway Co. Inc...................... 232 170 186 221 9 2 15,138 14,642 3,828

 Soo Line Railroad Co.................................................. 2,247 1,755 1,759 2,119 104 52 181,190 165,504 36,778CSX Transportation Inc................................................... 26,015 20,107 22,024 25,193 84 58 1,967,959 1,865,243 433,657

Kansas City Southern Railway Co................................. 3,049 2,541 2,198 2,899 216 109 228,388 214,704 51,748

 Gateway Eastern Railway Co...................................... 12 8 11 10 1 ..... 651 643 168

 Texas Mexican Railway Co.......................................... 231 169 164 223 3 1 18,246 17,471 3,825

National Railroad Passenger Corp. (Amtrak)................ 21,923 17,468 15,387 21,097 1,251 741 1,521,215 1,438,481 369,937

Norfolk Southern Corp.................................................... 29,544 23,954 23,188 28,148 1,666 823 1,990,882 1,924,946 496,589

Union Pacific Railroad Co............................................... 48,677 38,866 38,179 46,523 2,292 1,059 3,520,064 3,361,148 817,633

1 Includes National Railroad Passenger Corp. (Amtrak).2 Includes lessor companies, employer associations and miscellaneous carrier affiliates.NOTE.--Tier I compensation excludes miscellaneous compensation taxable at the tier I tax rate.

58 2019 Annual Report, U.S. Railroad Retirement Board

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