Program United States

Letter Railroad Retirement Board

 

______________________________________________________________________________

Office of Programs Chicago, IL 60611-2092

Quality Reporting Service Center (312) 751-4992

______________________________________________________________________________

CONTACT: Edward Roberts No. 2012-07

PHONE: (312) 751-4646 Date: June 29, 2012

TO: Unemployment and Sickness Contact Officials 

SUBJECT: New Benefit Year Information

______________________________________________________________________________

Purpose The purpose of this program letter is to inform you of:

• a new benefit year beginning date and qualifications;

• an increase in the maximum daily benefit rate; and

• a new dollar threshold for determining whether the earnings test applies.

New benefit A new benefit year for railroad unemployment and sickness insurance benefits

year begins July 1, 2012 and ends June 30, 2013.

New benefit To qualify for benefits in the new benefit year, an employee must have

year $3,325.00 in creditable railroad earnings in calendar year 2011, counting no

qualifications more than $1,330.00 per month. If 2011 was an employee's first year of railroad 

work, he or she must also have railroad service in at least 5 months of 2011.

Continued on next page
New Benefit Year Information, Continued

Waiting Benefits are payable for days of unemployment or sickness over 7 in an

period employee's first 14-day claim in the new benefit year. This satisfies a required 

one-week waiting period. The one-week waiting period applies to both the first 

claim for unemployment benefits and the first claim for sickness benefits in the 

benefit year. In order to satisfy the waiting period requirement, the first claim 

must contain more than 4 days of unemployment or sickness. Initial sickness 

claims must begin with 4 consecutive days of sickness. After the waiting period 

is satisfied, benefits are generally payable for the number of days of 

unemployment or sickness over 4 in each 14-day claim period.

The change in benefit years will not cause an interruption in the payment of 

normal benefits to claimants who continue to be unemployed or sick from one 

benefit year into the next benefit year. An employee who continues to be 

unemployed or sick from one benefit year into the next needs to satisfy only one 

waiting period; a second waiting period is not required when the employee's 

benefit claims continue into a new benefit year.

 

Employees who are currently receiving extended unemployment benefits or 

extended sickness benefits also do not have another waiting period at this time. 

A new waiting period is required only if the employee claims benefits in the 

new benefit year. The new benefit year begins after the end of the extension of 

the previous benefit year.

Maximum The maximum daily benefit rate for railroad unemployment and sickness

daily benefit benefits remains $66.00 for registration periods beginning after June 30,

rate 2012. The maximum daily benefit rate is indexed to national wage levels.

The maximum benefit rate will yield $660.00 for two full weeks of 

unemployment or sickness (10 days at $66.00 per day). Some sickness benefits 

are subject to withholding of 5.65% for tier I retirement taxes, which can reduce 

biweekly payments to $622.71 from $660.00 for a full 2-week claim.

Earnings test 

rules

Under the RUIA’s earnings test provision, unemployment benefits are not 

payable for any registration period in which the total amount of an employee's 

earnings or other remuneration from railroad and non-railroad work for days 

in the period exceeds the amount of the RUIA monthly compensation base. 

For claims in benefit years 2011 and 2012 the earnings test amount is 

$1,330.00.

 Continued on next page
New Benefit Year Information, Continued

Earnings Note: Although no benefits are payable for days denied because of the earnings

test rules test, the days remain days of unemployment for purposes of satisfying the

(continued) waiting period requirement and determining periods of continuing 

unemployment. In addition, the earnings test does not apply to claims for 

sickness benefits.

Reporting When you review our notices of unemployment claims filed by your employees,

earnings on please check on whether the employee's earnings for days in the period

prepayment exceeded the amount of the monthly compensation base. Earnings include pay

notices employees did not earn because they failed to mark up, report for duty on time,

 or were otherwise not available for work.

Use the following table to determine how to report the amount of the employee's 

earnings.

If you receive prepayment 

claim notices...

then report the amount of the 

employee's earnings by...

on paper notice Form ID-4K telephoning the RRB office shown on 

our notice.

electronically through RAILINC indicating the employee's earnings in 

the NTE segment of your response, e.g. 

show "Gross Earnings Equal $______.

Note: Days claimed by an employee but denied because of the earnings test are 

indicated by a day code of 4 in the Claim Profile area on our notices of benefit 

claims (Forms ID-4E and ID-4K, and electronic RU1 and RU4 notices). A day 

code of 4 also indicates a claimed day of unemployment denied because of 

mileage or other work restrictions. A list of day codes and their corresponding 

meanings is included as attachment A with this letter.

Additional For additional information about the earnings test for unemployment claims

information and other provisions of the RUIA , please refer to our Circular Letter No. UI-C233. For information about our prepayment notices of claims, refer to Circular 

Letter No. UI-C-229. Both of these letters, as well as a copy of this letter, are 

available on our Web site at http://www.rrb.gov. 
 

 Claimants may file their applications for unemployment benefits, as well as 

 their subsequent biweekly claims, online. Employees are encouraged 

 to establish online accounts while still employed so the account is ready if they 

 ever need to apply for these benefits or use other internet services.

RRB Services To file their applications -- or their biweekly claims -- online, claimants should 

Online access RRB.gov and click on “Benefit Online Services” for directions on

 establishing an RRB Internet Services account. Once they establish their online

 accounts, they will be able to file their applications and claims for

 unemployment benefits, as well as conduct other business with the RRB, over

 the internet.

 ________________________________________________________________

 ________________________________________________________________

 

Contact Please call Edward Roberts of Policy and Systems for any comments or 

questions about information in this program letter. His telephone number is 

(312) 751-4646.
1

Attachment A

Claim Profile - Day Codes

Unemployment

0 Day not claimed

1 Claimed day of unemployment/available for work

2 Employed, day not claimed

3 Claimed day of unemployment, denied for miscellaneous

reasons (Refer to Information Codes.)

4 Claimed day of unemployment, denied because of work

restrictions and/or denied for the earnings test

5 Claimed day of unemployment, denied due to improper

registration

6 Claimed day of unemployment, denied for miscellaneous

reasons

7 Claimed day of unemployment, benefits reduced because

of receipt of social insurance

8 Claimed day of unemployment, denied because of

unavailability for work

9 Claimed day of unemployment, denied because of

receipt of remuneration

Sickness

0 Day not claimed

1 Claimed day of sickness

2 Employed, day not claimed

3 Claimed day of sickness, denied for miscellaneous

reasons (Refer to Information Codes.)

4 Claimed day of sickness, denied due to improper

advance registration

5 Claimed day of sickness, denied due to improper

delayed registration

6 Claimed day of sickness, denied for miscellaneous

reasons

7 Claimed day of sickness, benefits reduced because of

receipt of social insurance

8 Claimed day of sickness, denied due to ability to work

9 Claimed day of sickness, denied because of the receipt

of remuneration