RAILROAD RETIREMENT BOARD
 

JUSTIFICATION OF 

BUDGET ESTIMATES
 

FISCAL YEAR 2019
 
 

 

 

 

 

 

 

 

 

 

UNITED STATES OF AMERICA
 

RAILROAD RETIREMENT BOARD
 

844 NORTH RUSH STREET
 

CHICAGO, ILLINOIS 60611-1275
 

BOARD MEMBERS: 

VACANT, CHAIRMAN
 

WALTER A. BARROWS, LABOR MEMBER
 

STEVEN J. ANTHONY, MANAGEMENT MEMBER
 

The Honorable Paul D. Ryan 

Speaker of the House of Representatives 

Washington, D.C. 20515 

Dear Mr. Speaker: 

In compliance with the Office of Management and Budget (OMB) Circular No. A-11, enclosed 

is our Congressional Justification of Budget Estimates for Fiscal Year 2019, which includes our 

Performance Plan for the year. This budget complies with OMB guidance and is in accordance 

with the President’s proposals. The President’s proposed budget provides for $115,225,000 for 

the Railroad Retirement Board’s (RRB) administrative expenses in fiscal year 2019. We estimate 

that the proposed funding will provide for a staffing level of 757 full-time equivalent staff years 

(FTEs) and also provide Information Technology (IT) investments of $4 million of which $2.4 

million is designated for Enterprise Infrastructure Solutions (EIS) and $1.6 million toward 

furthering efforts to modernize our legacy benefit systems. 

The RRB recognizes the ongoing need and responsibility to manage our human capital resources 

effectively through focused workforce planning and talent management efforts combined with 

identifying IT improvements and initiatives to better support a leaner agency, while achieving 

the agency’s mission. Budget projections show that at the President’s proposed budget level of 

$115,225,000, the agency would need to evaluate all available options to include attrition, 

buyouts, furloughs, and reduction in force to reach 757 FTEs, which is 93 FTEs less than what is 

needed to sustain the agency’s mission essential functions. 

The President’s proposed budget provides funding for the RRB’s top IT investment priority, EIS, 

and some funding to continue efforts toward systems modernization; however, the agency would 

be unable to fund a significant number of other mission critical IT investments. The IT 

investments initiatives that would remain unfunded include: components of the Legacy Systems 

Modernization Services, Electronic Records Utilization and Paperless Processing, components of 

Cyber Security and Privacy, Financial Management Integrated Systems Upgrade, and Records 

Management System. The agency’s proposed IT investment initiatives are critical to the RRB’s 

Agency Reform Plan as submitted in accordance with OMB Guidance M-17-22, 

“Comprehensive Plan for Reforming the Federal Government and Reducing the Federal 

Workforce,” as well as promotes compliance with the President’s Executive Order, 

Strengthening the Cybersecurity of Federal Networks and Critical Infrastructure, dated May 11, 

2017 and the related OMB Memorandum, M-17-25. 
 

 

 

 

 

 

 

 

 

 

 

In addition to the requests for administrative expenses, the President’s budget includes 

$19,000,000 to fund the continuing phase-out costs for vested dual benefits. An additional 

amount, not to exceed 2 percent, would also become available if projected dual benefit payments 

for the year exceed the amount available for payments. 

Also, presented in the budget is a request for $150,000 for interest related to uncashed railroad 

retirement checks. The $150,000 is being requested for a 2-year period, and would be available 

through September 30, 2020. All of the amounts presented in this letter exclude funding for the 

RRB’s Office of Inspector General, which submits separate budget and performance 

information. 

The President's Budget includes three legislative proposals. The first legislative proposal 

proposes to amend the Railroad Retirement Act to allow the Railroad Retirement Board to utilize 

various hiring authorities available to other Federal agencies. The second legislative proposal 

proposes to amend the Railroad Retirement Act and the Railroad Unemployment Insurance Act 

to include a felony charge for individuals committing fraud against the Agency. The final 

legislative proposal proposes that the RRB be provided access to the National Directory of New 

Hire (NDNH), a federal database of employment and unemployment insurance information. 

Access to NDNH supports the RRB’s program integrity efforts to prevent improper payments. 

Thank you for your support of this proposed budget. 

Sincerely, 

Original Signed 

Walter A. Barrows 

Steven J. Anthony 

February 12, 2018 

Enclosure 

cc: The Honorable, Mick Mulvaney, Director 

Office of Management and Budget 
 

 

 

 

 

 

 

 

 

 

UNITED STATES OF AMERICA
 

RAILROAD RETIREMENT BOARD
 

844 NORTH RUSH STREET
 

CHICAGO, ILLINOIS 60611-1275
 

BOARD MEMBERS: 

VACANT, CHAIRMAN
 

WALTER A. BARROWS, LABOR MEMBER
 

STEVEN J. ANTHONY, MANAGEMENT MEMBER
 

The Honorable Michael R. Pence 

President of the Senate 

Washington, D.C. 20510 

Dear Mr. President: 

In compliance with the Office of Management and Budget (OMB) Circular No. A-11, enclosed 

is our Congressional Justification of Budget Estimates for Fiscal Year 2019, which includes our 

Performance Plan for the year. This budget complies with OMB guidance and is in accordance 

with the President’s proposals. The President’s proposed budget provides for $115,225,000 for 

the Railroad Retirement Board’s (RRB) administrative expenses in fiscal year 2019. We estimate 

that the proposed funding will provide for a staffing level of 757 full-time equivalent staff years 

(FTEs) and also provide Information Technology (IT) investments of $4 million of which $2.4 

million is designated for Enterprise Infrastructure Solutions (EIS) and $1.6 million toward 

furthering efforts to modernize our legacy benefit systems. 

The RRB recognizes the ongoing need and responsibility to manage our human capital resources 

effectively through focused workforce planning and talent management efforts combined with 

identifying IT improvements and initiatives to better support a leaner agency, while achieving 

the agency’s mission. Budget projections show that at the President’s proposed budget level of 

$115,225,000, the agency would need to evaluate all available options to include attrition, 

buyouts, furloughs, and reduction in force to reach 757 FTEs, which is 93 FTEs less than what is 

needed to sustain the agency’s mission essential functions. 

The President’s proposed budget provides funding for the RRB’s top IT investment priority, EIS, 

and some funding to continue efforts toward systems modernization; however, the agency would 

be unable to fund a significant number of other mission critical IT investments. The IT 

investments initiatives that would remain unfunded include: components of the Legacy Systems 

Modernization Services, Electronic Records Utilization and Paperless Processing, components of 

Cyber Security and Privacy, Financial Management Integrated Systems Upgrade, and Records 

Management System. The agency’s proposed IT investment initiatives are critical to the RRB’s 

Agency Reform Plan as submitted in accordance with OMB Guidance M-17-22, 

“Comprehensive Plan for Reforming the Federal Government and Reducing the Federal 

Workforce,” as well as promotes compliance with the President’s Executive Order, 

Strengthening the Cybersecurity of Federal Networks and Critical Infrastructure, dated May 11, 

2017 and the related OMB Memorandum, M-17-25. 
 

 

 

 

 

 

 

 

 

 

In addition to the requests for administrative expenses, the President’s budget includes 

$19,000,000 to fund the continuing phase-out costs for vested dual benefits. An additional 

amount, not to exceed 2 percent, would also become available if projected dual benefit payments 

for the year exceed the amount available for payments. 

Also, presented in the budget is a request for $150,000 for interest related to uncashed railroad 

retirement checks. The $150,000 is being requested for a 2-year period, and would be available 

through September 30, 2020. All of the amounts presented in this letter exclude funding for the 

RRB’s Office of Inspector General, which submits separate budget and performance 

information. 

The President's Budget includes three legislative proposals. The first legislative proposal 

proposes to amend the Railroad Retirement Act to allow the Railroad Retirement Board to utilize 

various hiring authorities available to other Federal agencies. The second legislative proposal 

proposes to amend the Railroad Retirement Act and the Railroad Unemployment Insurance Act 

to include a felony charge for individuals committing fraud against the Agency. The final 

legislative proposal proposes that the RRB be provided access to the National Directory of New 

Hire (NDNH), a federal database of employment and unemployment insurance information. 

Access to NDNH supports the RRB’s program integrity efforts to prevent improper payments. 

Thank you for your support of this proposed budget. 

Sincerely, 

Original Signed 

Walter A. Barrows 

Steven J. Anthony 

February 12, 2018 

Enclosure 

cc: The Honorable, Mick Mulvaney, Director 

Office of Management and Budget 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

JUSTIFICATION OF BUDGET ESTIMATES 

FISCAL YEAR 2019 

TABLE OF CONTENTS 

Page 

Number 

AGENCY OVERVIEW 

Summary of Appropriation Estimates for Fiscal Years 2018 and 2019................... 1 

Agency Overview................................................................................ 2 

Programs Administered by the Railroad Retirement Board................................. 3 

Financing of Railroad Retirement Benefits................................................... 3 

Financing Provisions of the Railroad Retirement and Survivors’ 

Improvement Act of 2001.................................................................... 4 

Financing of Unemployment and Sickness Insurance Benefits............................ 5 

Description of Appropriation Requests....................................................... 6 

The Board Members............................................................................. 7 

Railroad Retirement Board Organization Chart.............................................. 8 

LIMITATION ON ADMINISTRATION 

Proposed Appropriation Language............................................................. 9 

Explanation of Proposed Appropriation Language.......................................... 10 

Authorizing Legislation......................................................................... 11 

Budget Authority by Object Classification................................................... 12 

Summary of Changes............................................................................ 13 

Budget Authority by Strategic Goal........................................................... 14 

Staffing History.................................................................................. 15 

Funding for Major Contracts................................................................... 16 

Budget Authority by Fund...................................................................... 20 

Financing.......................................................................................... 21 

Sources and Uses of Funds...................................................................... 22 

Amounts Available for Obligation............................................................. 23 

Appropriations History Table.................................................................. 24 

Retirement/Survivor Benefit Program Summary Processing Workload Table.......... 25 

Unemployment/Sickness Insurance Program Summary Processing Workload Table.. 26 

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TABLE OF CONTENTS 

Page 

Number 

PERFORMANCE PLAN 

Fiscal Year 2019 Performance Plan......................................................... 27
 

DUAL BENEFITS PAYMENTS ACCOUNT 

Proposed Appropriation Language.......................................................... 49
 

Explanation of Proposed Appropriation Language....................................... 50
 

Authorizing Legislation....................................................................... 51
 

Appropriations History Table................................................................ 52
 

Funding Sources.............................................................................. 53
 

Amounts Available for Obligation......................................................... 54
 

Explanation of 2019 Request................................................................ 55
 

FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT ACCOUNTS 

Proposed Appropriation Language.......................................................... 57
 

Explanation of Proposed Appropriation Language....................................... 58
 

Authorizing Legislation...................................................................... 59
 

Appropriations History Table................................................................ 60
 

Amounts Available for Obligation.......................................................... 61
 

Explanation of 2019 Request................................................................. 61
 

INFORMATION TECHNOLOGY INTIATIVES 

Information Technology Investment Initiatives 63
 

OTHER INFORMATION 

Summary of Full-time Equivalent Employment.......................................... 69
 

Average ES and GS/GM Salaries and Benefits, and GS/GM Grades.................. 70
 

Employee Relocation Expenses............................................................ 70
 

Legislative Proposals........................................................................... 71
 

ii 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RAILROAD RETIREMENT BOARD 

SUMMARY OF APPROPRIATION ESTIMATES 

FOR FISCAL YEARS 2018 and 2019 

Fiscal Year 2018 Fiscal Year 2019 

Account FTEs Amount FTEs Amount Page 

Limitation on Administration 818 $113,500,000 a/ 757 $115,225,000 9 

Dual Benefits Payments –– $25,000,000 a/ –– $19,000,000 b/ 49 Account 

Federal Payments to the –– $150,000 a/ –– $150,000 c/ 57 Railroad Retirement Accounts 

Limitation on the Office of 52 $10,000,000 a/ 45 $8,437,000 d/ –– Inspector General 

a/	 A full-year 2018 appropriation for this account was not enacted at the time this publication was 

prepared. The Fiscal Year 2018 estimate amount shown is in accordance with Public Laws: 115-56, 

Continuing Appropriations Act, 2018 and Supplemental Appropriations for Disaster Relief 

Requirements Act, 2017 that provided continuing appropriations from October 1, 2017 through 

December 8, 2017; 115-90, Making further continuing appropriations for fiscal year 2018, and other 

purposes that provided continuing appropriations from December 9, 2017 through December 22, 

2017; and 115-96, Further Additional Continuing Appropriations Act, 2018 that provided 

continuing appropriations from December 22, 2017 through January 19, 2018, without the reduction 

applied. 

b/	 The proposed appropriation language provides for $19,000,000 to fund vested dual benefits from 

general revenues of which $1,000,000 is expected from income taxes on vested dual benefits. An 

additional 2 percent reserve will become available only if the product of recipients and the average 

benefit received exceeds the amount available to pay vested dual benefits. The change from the FY 

2019 Budget Submission amount of $18,000,000 was due to an update in the RRB’s Actuarial 

estimate. 

c/	 This amount reflects our latest estimate for interest related to uncashed railroad retirement checks and 

will remain available through September 30, 2020. 

d/	 This limitation is for the Railroad Retirement Board's Office of Inspector General, which submits a 

separate budget justification document and annual performance plan. 

1
 
 

 

 

 

 

AGENCY OVERVIEW
 

The Railroad Retirement Board (RRB) is an independent agency in the executive branch of the 

Federal Government. The RRB's primary function is to administer comprehensive 

retirement/survivor and unemployment/sickness insurance benefit programs for the nation's 

railroad workers and their families under the Railroad Retirement and Railroad Unemployment 

Insurance Acts. In connection with the retirement program, the RRB has administrative 

responsibilities under the Social Security Act for certain benefit payments and railroad workers' 

Medicare coverage. It also assists in the administration of the Internal Revenue Code. 

The RRB is headed by three Board Members appointed by the President of the United States 

with the advice and consent of the Senate. By law, one member is appointed upon 

recommendations made by railroad labor organizations and one upon recommendations of 

railroad employers. The third member, the Chairman, represents the public interest. The Board 

Members' terms of office are 5 years and expire in different years. The President also appoints 

an independent statutory Inspector General for the RRB (who functions outside the control of the 

Board Members, but who reports directly to the Chairman for administrative purposes) who is to 

prevent and detect waste, fraud, and abuse in RRB programs and operations. 

During fiscal year 2017, the RRB paid $12.6 billion, net of recoveries and offsetting collections, 

in retirement and survivor benefits to about 548,000 beneficiaries. This included benefits paid 

on behalf of the Social Security Administration amounting to $1.6 billion to about 116,000 

beneficiaries. The RRB also paid unemployment-sickness benefits of $104.6 million, net of 

recoveries and offsetting collections. About 12,000 railroad workers received unemployment 

insurance benefits, and approximately 16,000 received sickness insurance benefits. 

2
 
 

 

 

 

 

 

Programs Administered by the RRB 

Railroad Retirement Act 

Under the Railroad Retirement Act, the RRB makes monthly benefit payments to qualified 

railroad employees who retire because of age or disability, to eligible spouses of such employees, 

and to survivors of deceased employees. Total and permanent disability annuities are payable to 

employees unable to work at any job, and occupational disability annuities are payable to career 

railroad employees unable to work at their regular railroad jobs. Supplemental annuities are 

payable to career railroad employees with service prior to October 1981. There are also 

provisions for lump-sum payments. 

The Railroad Retirement and Survivors’ Improvement Act of 2001 (P.L. 107-90), enacted on 

December 21, 2001, made a number of major changes to the Railroad Retirement Act. The 

legislation provided for full early retirement eligibility at age 60 for railroad employees with 

30 or more years of service; eliminated the maximum provision that had previously capped some 

employee and spouse railroad retirement benefits; reduced the basic eligibility requirement for an 

employee annuity from 10 to 5 years if performed after 1995; and provided increased benefits for 

some widow(er)s. The Act also authorized the National Railroad Retirement Investment Trust to 

manage and invest the assets of the railroad retirement system in the same array of investment 

alternatives available to private sector pension plans. 

The RRB also administers certain vested dual benefits financed by annual appropriations from 

general funds. As of September 30, 2017, about 11,000 beneficiaries received vested dual 

benefits. 

Railroad Unemployment Insurance Act 

Under the Railroad Unemployment Insurance Act, the RRB pays unemployment insurance 

benefits to railroad workers who are unemployed but ready, willing, and able to work, and 

sickness insurance benefits to railroad workers who are unable to work because of illness, injury, 

or pregnancy. The RRB also assists unemployed railroad workers in securing employment. 

Financing of Railroad Retirement Benefits 

The primary source of income for the railroad retirement/survivor benefit program is payroll 

taxes paid by covered employers and their employees. By law, railroad retirement taxes are 

coordinated with social security taxes. Employees and employers pay tier I taxes at the same 

rate as social security taxes. In addition, both employees and employers pay tier II taxes, which 

are used to finance railroad retirement benefit payments over and above social security benefit 

levels. 

Other sources of income currently include Federal income taxes on railroad retirement annuities, 

appropriations from general funds of the Department of the Treasury (Treasury) provided to 

phase-out vested dual benefits, interest on investments, and the financial interchange with the 

social security trust funds. The financial interchange places the social security trust funds in the 

same position they would be in if railroad service were covered by the Social Security program 

instead of the Railroad Retirement program. In effect, through the financial interchange, the 

3
 
 

 

 

 

 

 

portion of railroad retirement annuities that is equivalent to social security benefits is reinsured 

through the social security system, thereby extending social security protection to railroad 

workers. The Social Security Equivalent Benefit Account is charged with railroad retirement 

benefit payments equivalent to social security benefits, and credited with taxes and transfers 

associated with those benefits. 

Vested dual benefits are funded by annual appropriations from general funds of the Treasury and 

paid from a separate account, the Dual Benefits Payments Account. Since October 1, 1988, 

revenue from income taxes on these benefits has also been credited to the Dual Benefits 

Payments Account. If the appropriation in a fiscal year does not cover total benefits, individual 

payments must be reduced by proration. 

Amounts needed to administer these programs are authorized by the Congress in annual 

appropriation acts. In addition, the Centers for Medicare and Medicaid Services and others 

reimburse the RRB for certain activities. Beginning in fiscal year 2013, a contractor provides 

Specialty Medicare Administrative Contractor (SMAC) Services to the RRB and Railroad 

Medicare beneficiaries and their medical series providers, nationwide, for Part B Medical 

Services. In fiscal year 2019, it is estimated that the RRB will be reimbursed about $27.9 million 

for such costs. The estimate includes $18 million for SMAC. 

Financing Provisions of the Railroad Retirement and Survivors’
 

Improvement Act of 2001
 

Investment changes. The Railroad Retirement and Survivors’ Improvement Act of 2001 

(RRSIA) provides for the transfer of railroad retirement funds from the Railroad Retirement 

Accounts to the National Railroad Retirement Investment Trust, whose Board of Trustees is 

empowered to invest Trust assets in nongovernmental assets, such as equities and debt, as well as 

in governmental securities. The Railroad Retirement Board also receives transfers from the 

Trust, as needed, to pay railroad retirement and survivor benefits. 

The Trust is not an agency or instrumentality of the Federal Government. Its Board of Trustees 

is comprised of seven members: three members selected by rail labor to represent the interests of 

labor; three members selected by rail management to represent management interests; and one 

independent member selected by a majority of the other six members. The Trustees are 

appointed only from persons who have experience and expertise in the management of financial 

investments and pension plans. The Trustees are subject to reporting and fiduciary standards 

similar to those under the Employee Retirement Income Security Act. 

The RRB transferred $1.502 billion, $19.188 billion, and $586 million to the Trust in fiscal years 

2002, 2003, and 2004, respectively. The Trust has invested the transferred funds and the results 

of these investments are reported to the RRB and posted periodically on the RRB’s website. The 

net asset value of Trust-managed assets on September 30, 2017, was approximately $26.5 

billion. From its inception through January 2018, the Trust transferred approximately $21.9 

billion to the RRB to pay railroad benefits, including approximately $1.8 billion in fiscal year 

2017. 

Payroll taxes. Under the RRSIA, tier II taxes on both employers and employees are based on 

the ratio of certain asset balances to the sum of benefits and administrative expenses 

4
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

(the average account benefits ratio). Depending on the average account benefits ratio, tier II 

taxes for employers can range between 8.2 percent and 22.1 percent, while the tier II tax rate for 

employees can be between 0 percent and 4.9 percent. The calendar year 2018 tier II tax rates are 

13.1 percent and 4.9 percent for rail employers and employees, respectively. The maximum 

amount of earnings subject to tier II taxes is $95,400 in 2018. 

The RRSIA does not affect tier I social security equivalent tax rates, which are the same as for 

social security covered employers and employees. The tier I payroll tax rate for the year 2018 on 

covered rail employees and employers is 7.65 percent for employees. 

For withholding and reporting purposes, the employer tax rate is divided into 6.20 percent for 

retirement and 1.45 percent for Medicare hospital insurance. The maximum amount of an 

employee’s earnings subject to the 6.20 percent rate is $128,400 in 2018, but there is no 

maximum on earnings subject to the Medicare tax rate. 

Supplemental annuities. The RRSIA also repealed the railroad retirement supplemental 

annuity tax paid by covered employers, and eliminated the separate Railroad Retirement 

Supplemental Account. While supplemental railroad retirement annuities provided by the 

Railroad Retirement Act continue to be due and payable, they are now funded from the Railroad 

Retirement Account. 

Financing of Unemployment and Sickness Insurance Benefits 

The railroad unemployment and sickness insurance program is financed by payroll taxes paid by 

covered employers. The Railroad Unemployment Insurance and Retirement Improvement Act of 

1988 (Public Law 100-647) amended the Railroad Unemployment Insurance Act to provide for 

an experience-rated employer contribution system responsive to fluctuations in railroad 

employment and benefit usage. 

For calendar year 2018, the minimum employer contribution rate is 2.15 percent. New 

employers in 2018 will pay a tax of 1.97 percent, which represents the average rate paid by all 

employers in the period 2014 – 2016. For 78 percent of covered employers, the unemployment 

insurance rate assessed will be 2.15 percent in 2018, while 7 percent of employers will pay the 

maximum of 12 percent. 

The 2018 rate is applied to the first $1,560 earned monthly by each employee. In accordance 

with Public Law 100-647, the wage base is indexed each year to approximately two-thirds of the 

cumulative growth in average national wages since 1984. An employer's overall rate under the 

system cannot exceed 12 percent, or 12.5 percent if the maximum surcharge described below is 

in effect. These rates include a component to cover costs shared by all employers and 0.65 

percent of the employers' taxable payroll is permanently appropriated to the RRB for 

administrative expenses. In addition, a surcharge is added to employers' unemployment 

contributions for any calendar year when the balance in the Railroad Unemployment Insurance 

Account on the previous June 30 is less than a certain amount. Depending on the account 

balance, the surcharge rate may be 1.5, 2.5, or 3.5 percent of the wage base. 

5
 
 

 

 

 

Description of Appropriation Requests 

Limitation on Administration 

This is the single administrative account for the RRB, which provides funding for the 

administration of both the railroad retirement/survivor and the unemployment/sickness insurance 

benefit programs. Amounts needed for this limitation are derived from the Railroad Retirement 

Account, the Social Security Equivalent Benefit Account, and the Railroad Unemployment 

Insurance Administration Fund. 

Dual Benefits Payments Account 

Section 15(d) of the Railroad Retirement Act provides for a Dual Benefits Payments Account 

which is separate from other railroad retirement accounts. The vested dual benefit portion of 

railroad retirement annuities is paid from this account and is funded by appropriations from 

general revenues. 

Federal Payments to the Railroad Retirement Accounts 

This account was established in conjunction with the implementation of the Railroad Retirement 

Solvency Act of 1983. Section 417 of the act amended the Railroad Retirement Act to provide 

for the reimbursement of unnegotiated benefit checks to the extent that such reimbursements are 

provided for, in advance, in appropriations acts. This account is the vehicle through which such 

appropriations are made. 

Under provisions of the Competitive Equality Banking Act of 1987, funds for the principal 

amount of uncashed checks are appropriated to the Treasury and then transferred directly to the 

appropriate RRB accounts. As a result, in fiscal year 1991, the RRB began receiving credits to 

this account for only the interest portion of the uncashed check transfers. This account also acts 

as a conduit for transferring income taxes on benefits to the other railroad retirement accounts. 

Limitation on the Office of the Inspector General 

This appropriation request, which is described in a separate justification document, is for the 

Office of the Inspector General. The 1988 amendments to the Inspector General Act of 1978 

(Public Law 100-504) included the RRB as an "establishment" covered by the Inspector General 

Act and specified the Chairman of the RRB as the head of the establishment for purposes of the 

act. Previously, the Railroad Retirement Solvency Act of 1983 had amended the Railroad 

Retirement Act of 1974 to provide for an Office of Inspector General at the RRB. 

6
 
 

 

 

 

The Board Members 

Incumbent's name/ 

(Title) 

Term 

expiration 

Date 

RRB compensation 

rate effective 

January 2018 Professional affiliations 

Vacant 

(Chairman) 

Steven J. Anthony 

(Management Member) 

08-28-18 $155,500 Virginia Bar, Missouri Bar, US 

Supreme Court Bar 

Walter A. Barrows 

(Labor Member) 

08-28-14 $155,500 Brotherhood of Railroad Signalmen, 

Federal Managers' Association, 

American Federation of Government 

Employees 

7
 
8 

 

 

 

 

 

 

 

 

 

 

U.S. RAILROAD RETIREMENT BOARD 

EXECUTIVE COMMITTEE 

MEMBER 

VACANT 

MEMBER 

Ana M. Kocur 

MEMBER 

Keith B. Earley 

MEMBER 

Michael A. Tyllas 

SENIOR EXECUTIVE 

OFFICER 

Daniel J. Fadden 

MEMBER 

Ram Murthy 

OFFICE OF 

INSPECTOR 

GENERAL 

Martin J. Dickman 

OFFICE OF 

EQUAL 

OPPORTUNITY 

VACANT 

THE BOARD 

Chairman, VACANT 

Labor Member, Walter A. Barrows 

Management Member, Steven J. Anthony 

CHIEF ACTUARY * 

BUREAU OF 

THE ACTUARY AND 

RESEARCH 

Frank J. Buzzi 

CHIEF 

FINANCIAL 

OFFICER 

BUREAU OF 

FISCAL 

OPERATION 

VACANT 

OFFICE OF 

GENERAL COUNSEL 

Ana M. Kocur 

OFFICE OF 

LEGISLATIVE 

AFFAIRS 

Beverly Britton Fraser 

BUREAU OF 

HEARINGS AND 

APPEALS 

Rachel L. Simmons 

SECRETARY TO 

THE BOARD 

Martha P. Rico 

The Inspector General reports administratively to the Chairman. 

The Director of Equal Opportunity reports administratively to the 

Director of Administration and programmatically to the Board. 

* Non-voting member of the Executive Committee 8 

OFFICE OF 

ADMINISTRATION 

Keith B. Earley 

ACQUISITION 

MANAGEMENT 

Paul T. Ahern 

BUILDING AND 

SUPPORT 

OPERATIONS 

Scott Rush 

PUBLIC AFFAIRS 

Michael P. Freeman 

BUREAU OF HUMAN 

RESOURCES 

Marguerite V. Daniels 

OFFICE OF 

PROGRAMS 

Michael A. Tyllas 

POLICY AND 

SYSTEMS 

Kimberly A. Price-Butler 

PROGRAM 

EVALUATION AND 

MANAGEMENT 

SERVICES 

Janet M. Hallman 

RETIREMENT/ 

SURVIVOR 

BENEFITS 

Valerie F. Allen 

CHIEF 

INFORMATION 

OFFICER 

BUREAU OF 

INFORMATION 

SERVICES 

Ram Murthy 

BUREAU OF 

FIELD SERVICE 

Daniel J. Fadden 

UNEMPLOYMENT 

AND PROGRAMS 

SUPPORT 

Micheal T. Pawlak 

DISABILITY 

BENEFITS 

Sherita Boots 

January 2018 
 

JUSTIFICATION OF ESTIMATES 

The Administration’s Proposed Appropriation Language 

LIMITATION ON ADMINISTRATION 

For necessary expenses for the Railroad Retirement Board ("Board") for administration of the 

Railroad Retirement Act and the Railroad Unemployment Insurance Act, $115,225,000 to be 

derived in such amounts as determined by the Board from the railroad retirement accounts and 

from moneys credited to the railroad unemployment insurance administration fund: Provided, 

That notwithstanding section 7(b)(9) of the Railroad Retirement Act this limitation may be used to 

hire attorneys only through the excepted service: Provided further, That the previous proviso shall 

not change the status under Federal employment laws of any attorney hired by the Railroad 

Retirement Board prior to January 1, 2013. 

Note: A full year 2018 appropriation for this account was not enacted at the time the budget was 

prepared; therefore, the budget assumes this account is operating under the Continuing 

Appropriations Act, 2018 (Division D of P.L. 115-56, as amended). The amounts included in 2018 

reflect the annualized level provided by the continuing resolution. 

9
 
 

Explanation of Proposed Appropriation Language 

Appropriation language Explanation 

For necessary expenses for the Railroad 

Retirement Board (“Board'') for 

administration of the Railroad Retirement 

Act and the Railroad Unemployment 

Insurance Act, $115,225,000 to be derived 

in such amounts as determined by the 

Board from the railroad retirement 

accounts and from moneys credited to the 

railroad unemployment insurance 

administration fund: Provided, That 

notwithstanding section 7(b)(9) of the 

Railroad Retirement Act this limitation 

may be used to hire attorneys only 

through the excepted service: Provided 

further, That the previous proviso shall 

not change the status under Federal 

employment laws of any attorney hired by 

the Railroad Retirement Board prior to 

January 1, 2013. 

This budget request is for funds to 

administer the railroad retirement/survivor 

and unemployment/sickness insurance 

benefit programs under a single 

administrative account. The Limitation on 

Administration Account draws on the 

following trust fund accounts for funding: 

Railroad Retirement Account, Social 

Security Equivalent Benefit Account, and 

the Railroad Unemployment Insurance 

Administration Fund. 

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Authorizing Legislation 

2018 2019 

Current Appropriation 

Legislation Authorized estimate Authorized request 

Authorizing legislation -- Indefinite $113,500,000 a/ Indefinite $115,225,000
 

Railroad Retirement Act:
 

Section 15(a), first two
 

sentences of section,
 

and Section 15A(c)
 

Authorizing legislation -- Railroad
 

Unemployment Insurance Act:
 

Section 11(a)
 

a/	 A full-year 2018 appropriation for this account was not enacted at the time this publication was 

prepared. The Fiscal Year 2018 estimate amount shown is in accordance with Public Laws: 115-56, 

Continuing Appropriations Act, 2018 and Supplemental Appropriations for Disaster Relief Requirements 

Act, 2017 that provided continuing appropriations from October 1, 2017 through December 8, 2017; 

115-90, Making further continuing appropriations for fiscal year 2018, and other purposes that provided 

continuing appropriations from December 9, 2017 through December 22, 2017; and 115-96, Further 

Additional Continuing Appropriations Act, 2018 that provided continuing appropriations from 

December 22, 2017 through January 19, 2018, without the reduction applied. 

Section 15(a) of the Railroad Retirement Act: 

"The Railroad Retirement Account established by section 15(a) of the Railroad Retirement Act of 1937 

shall continue to be maintained in the Treasury of the United States. There is hereby appropriated to 

such Account for each fiscal year, beginning with the fiscal year ending June 30, 1975, to provide for 

the payment of benefits to be made from such Account in accordance with the provisions of section 

7(c)(1) of this Act, and to provide for expenses necessary for the Board in the administration of all 

provisions of this Act, an amount equal to amounts covered into the Treasury (minus refunds) during 

each fiscal year under the Railroad Retirement Tax Act.” 

Section 15 A(c) (1) of the Railroad Retirement Act: 

"Except as otherwise provided in this section, amounts in the Social Security Equivalent Benefit 

Account shall be available only for purposes of paying social security equivalent benefits under this Act 

and to provide for the administrative expenses of the Board allocable to social security equivalent 

benefits." 

Section 11(a) of the Railroad Unemployment Insurance Act: 

"The Secretary of the Treasury shall maintain in the unemployment trust fund established pursuant 

to section 904 of the Social Security Act an account to be known as the railroad unemployment 

insurance administration fund. This unemployment insurance administration fund shall consist of 

(i) such part of all contributions collected pursuant to section 8 of this Act as equals 0.65 per 

centum of the total compensation on which such contributions are based; (ii) all amounts advanced 

to the fund by the Secretary of the Treasury pursuant to this section; (iii) all amounts appropriated 

by subsection (b) of this section; and (iv) such additional amounts as Congress may appropriate for 

expenses necessary or incidental to administering this Act. Such additional amounts are hereby 

authorized to be appropriated." 

11
 
Limitation on Administration 

Direct obligations by object class 

Personnel compensation: 

Full-time permanent 

Positions other than permanent 

Other personnel compensation 

Total personnel compensation 

Personnel benefits: civilian 

Benefits for former personnel 

Travel and transportation of persons 

Transportation of things 

Rental payments to GSA 

Communications, utilities, and 

miscellaneous charges 

Printing and reproduction 

Consulting services 

Other services 

Supplies and materials 

Equipment 

Total, direct obligations
 

Unobligated balance
 

Total budget authority
 

ADMINISTRATIVE EXPENSES a/
 

Budget Authority By Object Classification
 

Fiscal year 2017 

actual amounts($) b/c/ 

61,607,000 

767,000 

1,202,000 

63,576,000 

23,379,000 

305,000 

599,000 

16,000 

3,300,000 e/ 

5,400,000 

246,000 

735,000 

14,244,000 

560,000 

1,140,000 

113,500,000 

0 

113,500,000 

Fiscal year 2018 

estimated amounts($) c/d/ 

63,291,000 

541,000 

1,670,000 

65,502,000 

21,381,000 

315,000 

835,000 

49,000 

3,300,000 

5,544,000 

287,000 

634,000 

14,649,000 

782,000 

222,000 

113,500,000 

0 

113,500,000 

1,259,000 

Fiscal year 2019 Change (increases 

estimated amounts($) c/ and decreases) 

58,950,000 -4,341,000 

386,000 -155,000 

-411,000 

60,595,000 -4,907,000 

20,194,000 -1,187,000 

154,000 -161,000 

1,169,000 334,000 

102,000 53,000 

3,400,000 100,000 

5,773,000 229,000 

307,000 20,000 

397,000 -237,000 

21,138,000 f/ 6,489,000 

720,000 -62,000 

1,276,000 1,054,000 

115,225,000 1,725,000 

0 0 

115,225,000 1,725,000 

a/	 In a separate justification document, the Office of Inspector General is requesting $8,437,000 for administrative expenses in fiscal year 2019. 

b/	 The amounts included for 2017 reflect the annualized level provided by the The Consolidated Appropriations Act, 2017 (P.L. 115-31). 

c/	 The Limitation on Administration excludes $28.9. million in fiscal year 2017 that the RRB received in reimbursements from the Centers for Medicare and Medicaid Services (CMS) and 

others. Amounts for fiscal years 2018 and 2019 exclude $28.6 million and $27.9 million respectively that the RRB expects to be reimbursed in each fiscal year from CMS and others. 

d/	 Reflects funding as reported in the President's Budget for Fiscal Year 2019. Note - A full-year 2018 appropriation was not enacted at the time the Presidents budget was prepared; therefore 

the budget assumes this amount is operating under the Further Additional Continuing Appropriations Act, 2017 (P.L. 115-96). 

e/	 Reflects the payment of actual costs to the General Services Administration (GSA) for the rental of space. 

f/	 This amount includes $4 million for IT initiatives EIS and the modernization of the RRB's legacy benefit sysems as well as increases in the cost of building/equipment operation and 

maintenance ($1.5M), increases in IT licensing and software ($.5M), and increases in IT contracts ($.5M). 

Note:	 Amounts shown in the table are rounded to the nearest thousand. 

12
 
 

 

 

 

SUMMARY OF CHANGES a/ 

Appropriation total 

FY 2019 estimate $115,225,000 

FY 2018 level 113,500,000 b/ 

Net change $1,725,000 

2018 Current (Base) 2019 Change from Base 

Budget Budget 

FTEs Authority FTEs Authority 

Increases/Decreases: 

Built-in: 

1 Net change related to full-time and part-time salaries: 

Change in FTEs ($4,770,728) 

Adjustments to average salary estimates ($479,000) 

January 2018 pay raise 292,000 

Grade/step increases 461,000 

Other compensation (awards and overtime) (411,000) 

Subtotal, built-in salary and FTE 

increases/decreases 818 $65,502,000 (61) ($4,907,000) 

2 Net change related to personnel benefits: 

Change in FTEs ($1,624,000) 

Adjustment to previous estimates ($163,000) 

January 2018 pay raise 99,000 

Grade/step increases 157,000 

Other changes (health insurance, etc.) 344,000 

Subtotal, built-in changes to benefits increases/decreases -­ 21,381,000 -­ (1,187,000) 

Subtotal, built-in compensation increases/decreases -­ ($6,094,000) 

Program: 

1 Travel and transportation of persons -­ 835,000 -­ 334,000 

2 Transportation of things -­ 49,000 -­ 53,000 

3 Rental payments to GSA -­ 3,300,000 -­ 100,000 

4 Communications, utilities, and misc. charges -­ 5,544,000 -­ 229,000 

5 Printing and reproduction -­ 287,000 -­ 20,000 

6 Other services -­ 14,649,000 -­ 6,489,000 

7 Equipment -­ 222,000 -­ 1,054,000 

Subtotal, program increases $8,279,000 

Decreases: 

Program: 

1 Benefits for former personnel -­ 315,000 -­ (161,000) 

2 Consulting services -­ 634,000 -­ (237,000) 

3 Supplies and materials -­ 782,000 -­ (62,000) 

Total decreases ($460,000) 

Net change -­ $1,725,000 

a/ Corresponds to page 12 - Administrative Expenses. 

b/ Reflects funding as reported in the President's Budget for Fiscal Year 2019. Note - A full-year 2018 appropriation was not enacted at 

the time the President’s budget was prepared; therefore the budget assumes this amount is operating under the Further Additional 

Continuing Appropriations Act, 2018 (P.L. 115-96). 

Note: Dollar amounts are rounded to the nearest thousand. 

13
 
 

 

 

 

ADMINISTRATIVE EXPENSES 

Budget Authority by Strategic Goal (a) 

Fiscal year 2017 Fiscal year 2018 Fiscal year 2019 

Limitation on Administration Actual Estimate Estimate

Program by strategic goal FTEs % Amounts ($) % FTEs % Amounts ($) % FTEs % Amounts ($) %

 Strategic goal:

 1. Modernize information technology	 37 5 $5,133,863 4 37 5 5,634,503 5

 2. Customer service	 652 76 89,561,290 79 625 76 $89,546,063 79 618 82 89,439,213 78

 3. Stewardship	 201 24 23,938,710 21 156 19 $18,820,074 17 102 13 20,151,285 22

 Total, direct program obligations 853 113,500,000 818 113,500,000 757 115,225,000

 Unobligated balance 0 0 0

 Total budget authority	 853 113,500,000 818 113,500,000 757 115,225,000 

The Railroad Retirement Board's Strategic Plan includes these strategic goals.

 1. Modernize information technology (IT) operations to sustain mission essential services. 

 2. Provide excellent customer service. 

 3. Serve as responsible stewards for our customers' trust funds and agency resources. 

(a) Modernize information technology is a new strategic goal in the 2018-2022 Strategic Plan and has been given the highest priority. In 2017 customer service was

 the 1st strategic goal and stewardship was the 2nd strategic goal.

14
 
STAFFING HISTORY
 

Actual Full-time Equivalent Employment
 

a/ 

b/ 

c/ 

d/ 

Cumulative 

Percent Cumulative percent change 

Fiscal Change from change from FTE since fiscal 

year Total FTEs a/ previous year previous year Reduction year 1993 

1993 1,698 b/ --­ --­ --­ --­

1994 1,615 b/ -83 -4.9% 83 -4.9% 

1995 1,483 b/ -132 -8.2% 215 -4.9% 

1996 1,401 b/ -82 -5.5% 297 -17.5% 

1997 1,297 -104 -7.4% 401 -23.6% 

1998 1,227 -70 -5.4% 471 -27.7% 

1999 1,196 -31 -2.5% 502 -29.6% 

2000 1,136 -60 -5.0% 562 -33.1% 

2001 1,101 -35 -3.1% 597 -35.2% 

2002 1,099 -2 -0.2% 599 -35.3% 

2003 1,079 -20 -1.8% 619 -36.5% 

2004 1,048 -31 -2.9% 650 -38.3% 

2005 957 -91 -8.7% 741 -43.6% 

2006 940 -17 -1.8% 758 -44.6% 

2007 927 -13 -1.4% 771 -45.4% 

2008 918 -9 -1.0% 780 -45.9% 

2009 897 -21 -2.3% 801 -47.2% 

2010 908 11 1.2% 790 -46.5% 

2011 903 -5 -0.6% 795 -46.8% 

2012 884 -19 -2.1% 814 -47.9% 

2013 865 -19 -2.1% 833 -49.1% 

2014 825 -40 -4.6% 873 -51.4% 

2015 835 10 1.2% 863 -50.8% 

2016 824 -11 -1.3% 874 -51.5% 

2017 853 29 3.5% 845 -49.8% 

2018 818 c/ -35 -4.1% 880 -51.8% 

2019 757 d/ -61 -7.5% 941 -55.4% 

Excludes staffing for the Office of the Inspector General 

Includes Special Management Improvement Fund FTEs for fiscal years 1993-1996 of 80, 58, 30 

Reflects an adjusted projection as of January 2018. 

Reflects the estimated staffing level in the President's proposed budget for fiscal year 2019. The 

estimated 757 FTEs, is 93 FTEs less than what is needed to sustain the agency’s mission essential 

functions. Funding for the agency’s Information Technology investments would improve the agency’s 

ability to sustain organizational performance at lower FTE levels in the future. 

15
 
 

 

 

Funding for Major Contracts 

This chart shows contracts of $10,000 and over that are planned for fiscal year 2019 in the following Budget 

Oject Class (BOC) categories: consulting services (BOC 251), government contracts (BOC 253), medical fees 

(BOC 256), maintenance of facilities (BOC 254), contractual services (BOC 252), and equipment and 

equipment maintenance (BOC 310/257). 

Estimated
 

FY 2019
 

BOC Title and description funding ($)
 

Information Technology 

252/310 •	 Voice Communications System. Voice Data Wiring and Voice 40,000 

Over Internet Protocol (VoIP) System Equipment 

252 •	 IT operations support and memberships. Requested funding 294,965
 

includes IBM operations support services and IT Research Services
 

membership. 

252 •	 Help Desk Contract. Funding for help desk staff to augment RRB 499,905
 

staff, and to move PC Equipment
 

252 •	 License agreement. Funds are required to maintain the RRB’s 590,000
 

Microsoft Enterprise License Agreement.
 

253 •	 Disaster recovery. Funding will be used to support services via an 196,100 a/
 

interagency agreement with USDA-NITC Oct. 1 - Sept. 30
 

252 •	 IT Security. Security authorization and continuous monitoring of 132,825
 

RRB information systems. 

252 •	 Enterprise Infrastructure Solutions (EIS). Funding for agency 2,400,000
 

migration to modern telecommunications and IT services.
 

252 •	 Legacy Systems Modernization Services. Funding is needed to 1,600,000
 

modernize the RRB's IT systems, in order to mitigate cyber security
 

risks, improve fraud prevention and detection abilities, and to 

support a more effective, efficient, and leaner workforce.
 

310 •	 IT End of Life Replacement Equipment. Replacements for 1,120,000
 

Malware Analysis Workstations, IT Security laptops, network 

printers, digital forensics, routers and switches, KVM switch, Log
 

management, network access controls, it security servers, network 

monitoring switch, and intrusion prevention/detection systems. EIS
 

Conversion- Line 2 of 2 - Router purchase for MPLS replacement.
 

16
 
 

 

 

 

Funding for Major Contracts 

BOC	 Title and description 

257 •	 IT Software & Maintenance Renewals. CA ERWI Data modular 

plus 1, websense web filter, Ray & Shoup Software, Kalinda, Toad, 

Nipper, Redhat, BMC, Vanguard software, Attachmate, Service 

Now, Global 360 Open Text, SAP Business Objects, VMWare, 

CISCO Smartnet, Log Management, SourceOne. 

Support of benefit program activities 

256 •	 Medical fees. Funding is required for medical services and hospital 

transcripts used to make disability determinations. 

251 •	 Consultative medical services. Funding will be used for medical 

evidence reviews concerning benefit and claim matters and
 

preparation of advisory medical opinions.
 

252 •	 Field service training. Contract funding will be used for training
 

claims representatives and supervisors. Network Team building
 

meetings. New Contact Representative Training.
 

252 •	 Clerical services. Temporary clerical services to assist with
 

workloads in various field offices.
 

253 •	 Other Services (Federal). Funding is needed for American
 

Customer Satisfaction Index (ASCI) survey.
 

252 •	 Other Services (NON-Federal). Funding is needed for monthly
 

State Wage Match income processing.
 

253 •	 Social Security Death Match. Funding is needed for monthly SSA 

Death Match processing. 

Financial management 

252 •	 Payments to Treasury. Funding is required for fees by the
 

Department of the Treasury for issuing checks and making
 

electronic funds transfers on the RRB’s behalf, as well as postage
 

costs incurred for RRB mailings released by the Treasury.
 

252 •	 Payroll Costs. Funding is for payroll costs related to PAR and labor 

distribution. 

Estimated 

FY 2019 

funding ($) 

2,880,235 

2,146,678 

342,622 

80,000 

79,382 

41,000 a/ 

12,000 

74,000 a/ 

33,000 a/ 

190,000 a/ 

17
 
 

 

Funding for Major Contracts 

BOC	 Title and description 

253 •	 Travel & Transportation Costs. Funding is for payments for TMC
 

and voucher fees: Carlson Wagonlit Travel.
 

257	 Migration of Labor distribution report. Funding will be used to 

support FMIS Annual O&M and AquilQuest O&M.
 

Administrative support 

253 •	 File management services. Fees will be paid to the National 

Archives and Records Administration (NARA) for services by the
 

Federal Records Center (FRC) to maintain the RRB claim files.
 

This cost includes $24,000 for shuttle service to transport files
 

between RRB headquarters and the FRC. 

252 •	 Photocopiers. Funding is required to continue contractual services 

for photocopiers in the RRB’s headquarters building, including high 

speed copiers that are used to prepare program related booklets, 

pamphlets, and other informational material. 

253 •	 Field office support services. Funding is required for field office
 

alterations, miscellaneous and administrative support services. 

RWA Services. 42,800 Health Units.
 

253 •	 OPM Background Investigations. Funding is required to obtain 

background investigations for agency employees and contractors. 

252 •	 Shipping and receiving. Funds are required to continue shipping
 

and receiving services. 

251 •	 Employee assistance program. The RRB provides professional
 

assistance for employees with personal problems that adversely
 

affect work performance and Program Activities.
 

252 •	 Videoconferencing and transcription services. Funding will provide 

for videoconferencing services needed for hearing appeals. 

Estimated 

FY 2019 

funding ($) 

14,140 

1,900,000 

a/ 

270,000 a/ 

395,700 

96,600 a/ 

120,000 

55,000 

40,000 

a/ 

60,000 

18
 
 

 

 

 

Funding for Major Contracts 

BOC	 Title and description 

253 •	 Recruitment and hiring services. Funding will be used to pay OPM 

for recruitment and hiring services, background investigations, as 

well as flexible spending accounts. GSA Payroll/HRIT, Change of 

Stations and Administrative Fees, OPM: USA Jobs and FSAFEDS, 

Feddesk. 

252 •	 Learning Management System. Funding is for the RRB's in-house 

online educational/training courses and programs. 

252 •	 Shredding Services. Funding is for the secure destruction of agency 

documents. 

Facility management services 

253 •	 Federal Protective Service costs. Funding is required for protective 

services, billed by the Department of Homeland Security, Federal 

Protective Service. 

254 •	 Janitorial services. Funding is needed for janitorial services for the 

RRB headquarters building. 

254 •	 Building security. Funding is required for guard service and
 

cleaning service for the RRB headquarters building.
 

254 •	 Executive Order 13693. Funding is required to install retrofit
 

lighting for 3 floors of the Headquarters building.
 

254/257 •	 Miscellaneous Building Contracts. Contracts for the maintenance 

of entrance turnstyles, elevators, chillers, fire alarms, asbestos 

abatement, air conditioning, and delegation of authority. 

Agency total 

Estimated 

FY 2019 

funding ($) 

460,000 a/ 

171,000 

30,000 

570,000 a/ 

800,000 

660,000 

450,000 

385,500 

19,260,652 

a/ Contractual services provided by Federal Government agencies comprise $2,064,840 

of the agency program total. 

19
 
 

 

 

 

 

 

 

 

 

 

 

 

BUDGET AUTHORITY BY FUND
 

Railroad Retirement 

Program 

Fiscal year 2017 

actual amounts 

Fiscal year 

2018 

estimated 

Fiscal year 

2019 

estimated 

Change, 

FY 2018 

to 

FY 2019 

Direct Program: 

Railroad Retirement Account 71,195,455 71,800,000 72,940,000 1,140,000 

Social Security Equivalent 

Benefit 

Account 

27,859,090 25,080,000 26,200,000 1,120,000 

Total, direct railroad retirement 

program obligations 99,054,545 96,880,000 99,140,000 2,260,000 

Railroad Unemployment and 

Sickness Insurance Program 

Direct Program: 

Railroad Unemployment 

Insurance 

Administration Fund 

14,445,455 16,620,000 16,085,000 (535,000) 

Total, direct railroad 

retirement, 

unemployment and sickness 

insurance obligations 

113,205,056 113,500,000 115,225,000 1,725,000 

Unobligated balance 

294,944 --­ --­ --­

Total, direct railroad 

retirement, 

unemployment and sickness 

insurance budget authority 

113,500,000 113,500,000 115,225,000 1,725,000 

Note: A full-year 2018 appropriation for this account was not enacted at the time this publication was 

prepared. The amounts shown are in accordance with Public Laws:115-56, Continuing 

Appropriations Act, 2018 and Supplemental Appropriations for Disaster Relief Requirements 

Act, 2017; 115-90, Further Continuing Appropriations Act, 2018; and 115-96, Further 

Additional Continuing Appropriations Act, 2018 without the reduction applied. 

20
 
 

 

 

 

 

 

LIMITATION ON ADMINISTRATION
 

Financing 

Financing 

Fiscal year 2017 

actual 

Fiscal year 2018 

estimate 

Fiscal year 2019 

estimate 

Total, direct program obligations 

Unobligated balance 

Limitation 

$113,205,056 

294,944 

$113,500,000 

113,500,000 

--­

$113,500,000 

$115,225,000 

--­

$115,225,000 

Relation of direct program obligations to outlays 

Obligations incurred, net 

Obligated balance, start of year 

Obligated balance, end of year 

Outlays from limitation 

113,500,000 

0 

(26,608,614) 

$86,891,3860 

113,500,000 

26,608,614 

(26,608,614) 

$113,500,000 

115,225,000 

26,608,614 

(26,608,614) 

$115,225,000 

Notes: Funds to administer the Railroad Retirement Act and the Railroad Unemployment Insurance Act are 

combined into a single administrative account. Funds to administer the Railroad Retirement Act are 

transferred from the Railroad Retirement Account and the Social Security Equivalent Benefit 

Account to the Limitation on Administration. Funds required to administer the Railroad 

Unemployment Insurance Act are transferred from the Railroad Unemployment Insurance 

Administration Fund to the Limitation on Administration. 

A full-year 2018 appropriation for this account was not enacted at the time this publication was 

prepared. The amounts shown are in accordance with the following Public Laws: 115-56, 

Continuing Appropriations Act, 2018 and Supplemental Appropriations for Disaster Relief 

Requirements Act, 2017; 115-90, Further Continuing Appropriations Act, 2018; and 115-96, 

Further Additional Continuing Appropriations Act, 2018 without the reduction applied. 

21
 
 

 

 

 

 

The financial operations of the Limitation on Administration can also be expressed in a sources and 

uses of funds table as shown below. 

Sources and Uses of Funds 

Fiscal year Fiscal year Fiscal year 

2017 actual 2018 estimate 2019 estimate 

Direct program sources 

Available from benefit trust funds by 

Congressional appropriation $113,500,000 $113,500,000 $115,225,000 

Direct program uses 

Administrative expenses $113,205,056 $113,500,000 $115,225,000
 

Unobligated balance 294,944 --- --­

Total uses:	 $113,500,000 $113,500,000 $115,225,000 

Note:	 A full-year 2018 appropriation for this account was not enacted at the time this publication 

was prepared. The amounts shown are in accordance with the following Public Laws: 

115-56, Continuing Appropriations Act, 2018 and Supplemental Appropriations for 

Disaster Relief Requirements Act, 2017; 115-90, Further Continuing Appropriations Act, 

2018; and 115-96, Further Additional Continuing Appropriations Act, 2018 without the 

reduction applied. 

22
 
 --- ---

 

 

 

 

LIMITATION ON ADMINISTRATION
 

Amounts Available for Obligation
 

Fiscal year 

2017 actual 

Fiscal year 

2018 estimate 

Fiscal year 

2019 estimate 

Appropriation $113,205,056 $113,500,000 $115,225,000 

Unobligated balance 294,944 

Total direct obligations a/ $113,500,000 $113,500,000 $115,225,000 

a/	 The RRB also received reimbursements totaling $28 million in fiscal year 2017 and expects to 

receive $28.6 million in fiscal year 2018, and $ 27.9 million in fiscal year 2019 from CMS and 

others. 

Note:	 A full-year 2018 appropriation for this account was not enacted at the time this 

publication was prepared. The amounts shown are in accordance with the following 

Public Laws: 115-56, Continuing Appropriations Act, 2018 and Supplemental 

Appropriations for Disaster Relief Requirements Act, 2017, 115-90, Further Continuing 

Appropriations Act, 2018 and 115-96, Further Additional Continuing Appropriations Act, 

2018 without the reduction applied. 

23
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APPROPRIATIONS HISTORY TABLE
 

Budget Appropriation/ estimate House Senate continuing Year to the allowance allowance resolution Congress 

2010 109,073,000 109,073,000 109,073,000 109,073,000 a/ 

2011 110,573,000 --- --- 108,854,854 b/ 

2012 112,239,000 --- --- 108,649,264 c/ 

2013 112,415,000 --- --- 108,734,464 d/ 

2014 111,739,000 --- --- 110,300,000 e/ 

2015 112,150,000 --- --- 111,225,000 f/ 

2016 119,918,000 --- --- 111,225,000 g/ 

2017 122,499,000 --- --- 113,500,000 h/ 

2018 111,225,000 113,500,000 114,500,000 113,500,000 i/ 

2019 115,225,000 

a/	 Reflects the appropriation made available by the Consolidated Appropriations Act, 2010 

(P.L. 111-117). 

b/	 Reflects the appropriation of $109,073,000, less a rescission of $218,146 under the Department of 

Defense and Full-Year Continuing Appropriations Act, 2011 (P.L. 112-10). 

c/	 Reflects the appropriation of $108,855,000, less a rescission of $205,736 under the Departments of 

Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2012 

(P.L. 112-74). 

d/	 Reflects the appropriation of $111,149,000, less a rescission of $222,298, and a sequester of 

$2,192,238, under the Consolidated and Further Continuing Appropriations Act, 2013 (P.L. 113-6). 

e/	 Reflects the appropriation made available by the Consolidated Appropriations Act, 2014 

(P.L. 113-76). 

f/	 Reflects the appropriation made available by the Consolidated and Further Continuing Appropriations 

Act, 2015 (P.L. 113-235). 

g/	 Reflects the appropriation made available by the Consolidated Appropriations Act, 2016 (P.L. 114­

113). 

h/	 Reflects the appropriation made available by the Consolidated Appropriations Act, 2017 (P.L. 115­

31). 

i/	 A full-year 2018 appropriation for this account was not enacted at the time this publication was 

prepared. The amount shown is in accordance with the following Public Laws: 115-56, Continuing 

Appropriations Act, 2018 and Supplemental Appropriations for Disaster Relief Requirements Act, 

2017; 115-90, Further Continuing Appropriations Act, 2018; and 115-96, Further Additional 

Continuing Appropriations Act, 2018 without the reduction applied. 

24
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retirement/Survivor Benefit Program 

Summary Processing Workload Table 

Fiscal 

years 

Average 

number of 

annuitants 

New 

applications 

Supplemental 

annuity 

applications 

Social 

Security 

initial 

awards 1 

Post-payment 

adjustments 

Number of 

payments 

Medicare 

enrollments 2 

2007 3 571,271 37,134 9,345 5,965 113,489 7,349,904 5,188 

2008 562,347 36,909 9,176 6,010 99,525 7,191,744 5,686 

2009 554,124 37,248 9,725 8,128 110,534 7,104,066 5,235 

2010 549,154 37,384 9,581 12,563 120,102 7,055,426 5,204 

2011 544,256 37,231 9,743 9,275 93,425 7,011,155 5,803 

2012 540,080 35,856 9,341 9,342 85,206 6,967,676 6,522 

2013 534,982 36,041 9,075 3,116 80,786 6,921,034 6,306 

2014 530,367 35,368 8,802 3,124 76,440 6,864,029 6,270 

2015 526,487 34,234 8,145 3,417 66,316 6,825,427 6,851 

2016 522,839 33,019 7,497 3,739 74,056 6,779,413 6,573 

2017 518,416 31,479 6,520 4526 79,221 6,752,770 7,379 

2018 (est) 515,900 30,000 6,000 5,000 79,000 6,710,000 7,000 

2019 (est) 512,200 28,000 5,000 4,000 78,000 6,650,000 7,000 

1/ Beginning in fiscal year 2013, Social Security initial awards no longer include mechanical adjustments. 

2/ Excludes attainments. 

3/ Post-payment adjustments reflect 21,358 receipts due to the processing of special adjustments for annuity 

increases resulting from changes in retirement service and earnings credits reported by railroad employers 

over a period of several years. 

25
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Railroad Unemployment/Sickness Insurance Program 

Summary Processing Workload Table 

Unemployment insurance	 Sickness insurance 

Fiscal Railroad 

Years employment 1/ Applications Claims Payments Applications Claims Payments 

2007 237,000 13,002 71,156 58,385 22,996 148,607 127,372 

2008 235,000 13,483 79,016 65,388 21,932 140,788 120,498 

2009 223,000 39,509 230,476 2/ 198,230 2/ 21,466 138,993 118,770 

2010 221,000 18,721 210,965 3/ 190,152 3/ 21,476 139,653 119,426 

2011 229,000 12,756 93,598 4/ 83,144 4/ 20,797 136,014 115,705 

2012 234,000 12,914 83,120 5/ 72,776 5/ 20,240 129,318 110,154 

2013 237,000 14,944 96,871 6/ 84,365 6/ 19,110 119,364 100,951 

2014 242,000 11,982 77,580 6/ 64,864 6/ 19,335 120,838 102,020 

2015 247,000 14,177 67,643 55,368 19,467 121,271 102,540 

2016 231,000 24,371 145,605 120,134 20,219 131,575 111,933 

2017 223,000 (est) 14,372 96,777 80,748 20,087 132,557 113,163 

2018 (est) 221,000 16,000 91,000 76,000 19,000 125,000 107,000 

2019 (est) 217,000 15,000 84,000 70,000 19,000 122,000 104,000 

1/	 Average annual railroad employment is based on mid-month counts and presented on a calendar year basis. 

2/	 Includes unemployment insurance claims and payments under the American Recovery and Reinvestment Act of 2009 (P.L. 111-5). 

Benefits had to begin by December 31, 2009. 

3/	 Includes unemployment insurance claims and payments under P.L. 111-5 and the Worker, Homeownership, and Business 

Assistance Act of 2009 (P.L. 111-92). 

4/	 Includes unemployment insurance claims and payments under P.L. 111-5, P.L. 111-92, and the Tax Relief, Unemployment Insurance 

Reauthorization, and Job Creation Act of 2010 (PL. 111-312). 

5/	 Includes unemployment insurance claims and payments under P.L. 111-92, P.L. 111-312, the Temporary Payroll Tax Cut Continuation 

Act of 2011 (P.L. 112-78), and the Middle Class Tax Relief and Job Creation Act of 2012 (P.L. 112-96). 

6/	 Includes unemployment insurance claims and payments under P.L. 111-92, P.L. 111-312, P.L. 112-78, P.L. 112-96, and the American 

Taxpayer Relief Act of 2012 (P.L. 112-240). Benefits had to begin by December 31, 2013. 

26
 
 

 

PERFORMANCE
 

PLAN
 

Fiscal Year 2019
 

Railroad Retirement Board
 

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Railroad Retirement Board - Fiscal Year 2019 Performance Plan 

TABLE OF CONTENTS
 

Introduction .............................................................................................................................. 29
 

Mission Statement .................................................................................................................... 30
 

Strategic Goal I: Modernize Information Technology Operations to Sustain 

Mission Essential Services ................................................................................................. 31
 

Strategic Objective: Legacy Systems Modernization........................................................ 31
 

Strategic Goal III: Serve as Responsible Stewards for Our Customers’ Trust Funds
 

Strategic Objective: Ensure that trust fund assets are protected, collected, 

Strategic Objective: Effectively carry out responsibilities with respect to the
 

Strategic Goal II: Provide Excellent Customer Service .......................................................... 33
 

Strategic Objective: Pay benefits timely ........................................................................... 33
 

Strategic Objective: Provide a range of choices in service delivery methods................... 34
 

and Agency Resources ....................................................................................................... 35
 

recorded, and reported appropriately............................................................................ 35
 

Strategic Objective: Ensure the accuracy and integrity of benefit programs .................... 35
 

Strategic Objective: Ensure effectiveness, efficiency, and security of operations............ 36
 

National Railroad Retirement Investment Trust........................................................... 40
 

Exhibit 1: Performance Plan - FY 2019 .................................................................................. 41
 

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Railroad Retirement Board - Fiscal Year 2019 Performance Plan 

Introduction 

The Railroad Retirement Board (RRB) has developed this performance budget for fiscal year 

2019 to support our mission (see mission statement on the following page) and to 

communicate our intentions for meeting challenges and seeking opportunities. We will use 

the plan to hold managers accountable for achieving program results and to improve program 

effectiveness and public accountability by promoting a continued focus on results, service 

quality, and customer satisfaction. We will also use the plan to help managers improve 

service delivery by requiring that they plan for meeting program objectives and by providing 

them with information about program results and service quality. 

This plan is closely linked to our Strategic Plan for Fiscal Years 2018 - 2022 and can be 

easily cross-referenced to that plan. The performance budget provides detailed performance 

goals, performance indicators and target levels to guide agency managers as they implement 

our Strategic Plan. It also communicates our plans to our stakeholders, including the railroad 

community, the Administration, the Congress, and other government agencies. It is one part 

of a comprehensive set of interlocking plans that cover all major aspects of agency operations. 

In this plan, we have established specific performance goals (with performance indicators and 

projected performance levels) to be achieved in fiscal year 2019. Additionally, it supports our 

other functional plans required to manage the agency. These functional plans include the 

Customer Service Plan and the Information Technology Capital Plan. These plans 

support the annual submission of the agency budget to the Office of Management and Budget 

(OMB) and the Congress. 

The RRB’s strategic and performance goals are presented in the sections following our 

mission statement. Information on anticipated performance in fiscal year 2019 for each 

performance goal, at the President’s proposed budget level of $115,225,000, is provided in 

Exhibit I. To provide for ongoing improvement in performance and accountability, we will 

continue to set programmatic goals which are aggressive, realistic and accurately measured. 

We will also ensure that planned improvements are transparent and result in meaningful 

outcomes, and that agency managers are accountable for achieving performance goals. 

We will also prepare and submit to the President and the Congress a report on program 

performance for fiscal year 2019, as part of our Performance and Accountability Report. The 

report will be reviewed by the RRB’s Office of Inspector General (OIG) to help ensure the 

reliability and utility of our performance information. The reported information will be 

derived from agency systems and will compare the performance goals and indicators to actual 

program performance for the fiscal year. 

This performance budget meets the requirements of the GPRA Modernization Act and was 

prepared by RRB employees. 

29
 
Railroad Retirement Board - Fiscal Year 2019 Performance Plan 

RAILROAD RETIREMENT BOARD 

MISSION STATEMENT
 

The RRB’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 RRB 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 RRB 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 RRB will treat every person who comes into contact with the 

agency with courtesy and concern, and respond to all inquiries promptly, accurately and 

clearly. 

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Railroad Retirement Board - Fiscal Year 2019 Performance Plan 

Strategic Goal I: Modernize Information Technology (IT) Operations to sustain mission 

essential services. At the President’s proposed budget level for fiscal year 2019, we plan to 

allocate $5,634,503 and 37 full-time equivalent employees (FTEs) to this strategic goal. 

Today, our mission essential programs are straining under the burden of being maintained by 

legacy computer systems built 40 years ago. There have been no appropriated resources in the 

last decade to re-engineer and modernize these legacy systems to meet the demands of the 

railroad community, which expects self-service digital solutions today. Our workforce is 

rapidly aging, with the average employee serving 30 years at retirement. Institutional 

knowledge diminishes as this workforce retires and it is increasingly difficult to find the 

legacy skills needed to maintain these systems. To continue providing the excellent service to 

our beneficiaries, we need to transform these legacy systems through automation and build 

modern digital services while safeguarding information anywhere, anytime, in all ways 

throughout the information life cycle. Our strategy to modernize encompasses multiple 

iterations over various phases in a new environment to minimize impact to the current legacy 

environment. We use automated code conversion tools as well as automated test and data 

validation tools, to transform the 12 Million lines of legacy mainframe-based COBOL and PC 

/ Web programming code. 

Strategic Objective: Legacy Systems Modernization. The primary focus is to complete the 

transformation to the new platform before the agency has to make a significant investment to 

maintain and update the existing mainframe-based environment and before the aging 

workforce retires in large numbers taking with them the institutional knowledge. 

We have established five performance goals that focus on the specifics of achieving this 

strategic objective. 

•	 Transform Tax and EDM systems (3 million lines of legacy COBOL) from the
 

mainframe to distributed architecture.
 

The RRB will transform the Taxation and EDM systems using a like-to-like migration 

approach. These systems built using COBOL/CICS/DB2 legacy technology will be 

transformed into the distributed architecture namely Microsoft C#/.NET/SQL Server. 

• Deliver online retirement forms (AA-1, AA-3) as citizen centric digital solutions. 

The RRB will continue to implement self-service digital solutions for our customers 

and end users. The online employee retirement application (Form AA-1) along with 

the companion spouse retirement application (Form AA-3) will be implemented using 

strong Identity Proofing and Multi-Factor Authentication. 

•	 Transition Mission Essential Programs (9 million lines of legacy COBOL) from the 

End-of-Life Mainframe hardware. 

The RRB is faced with the risks of the end-of-life for mainframe (Dec 2018) along 

with the attrition of the mainframe systems engineers. Our market research indicates 

that the legacy re-platform solution can be achieved in 15 to 18 months. The goal is to 

seek contractor services to re-platform the RRB’s legacy mainframe applications, 

currently written in COBOL/CICS/DB2, to a Microsoft Server Operating System. We 

will: 

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Railroad Retirement Board - Fiscal Year 2019 Performance Plan 

o	 re-platform all legacy mainframe applications with zero or minimal code change, 

and the transitioned applications will use Enterprise SQL server databases; 

o	 transition services from third party software to the Server platform, and these 

include scheduling, printing, security (Vanguard RACF), backup /restore, and 

reporting services; 

o	 achieve the same or greater level of business functionality and performance with 

the Server based system than was accomplished through the legacy system; 

o	 ensure, the accuracy of the annuity and benefit calculations performed by the 

transitioned code will be the same as the legacy system; 

o	 ensure the quality of all printed materials created by the transitioned code will be 

the same as the legacy system; 

o	 not alter the sequence of jobs comprising the nightly production execution 

schedule; and
 

o	 convert all legacy data i.e. DB2 and VSAM databases to SQL Server database with 

same referential integrity of the data structures. 

•	 Complete the assessment for re-engineering Mission Essential Programs 

The RRB will put out a solicitation to seek Subject Matter Expertise in conducting a 

business process re-engineering of our mission essential services, and deliver a 

roadmap and blueprint for RRB to leverage shared and cloud services, including the 

transition from batch oriented processing to interactive transactional processing. This 

blueprint enables RRB to build the next set of deliverables: 

o	 to achieve the legacy transformation, namely shared services in terms of Imaging, 

Records Management, Prescriptive Analytics, and Audit/Compliance, along with 

the Private Cloud for storage and resource heavy workloads. 

o	 to leverage the cloud services for Case Management, Customer Management, 

Desktop-as-a-Service, DevOps, Continuous Monitoring, Website portal, and 

Railroad Community Self-service solutions. 

•	 Complete the migration of agency network and telecommunication services to new 

services in EIS 

As part of modernization, we have an opportunity to consolidate network services, 

improve architecture and modernize our network infrastructure. With the emerging 

cloud solutions we optimize our network backbone connectivity to overcome latency 

issues when our users access Cloud Services. The migration will be completed in 

separate deliverables. 

o	 The first task is for Web Content delivery services. These services will provide a 

publicly accessible web interface to access www.rrb.gov. 

o	 The second task will address the agency’s Enterprise-wide Voice 

Communications. Services in the Voice solicitation include Automatic Call 

Distribution (ACD), Interactive Voice Response (IVR), call conferencing, stationto-station calling (on-network and off-network), National Toll Free Services and 

other collaboration tools. 

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Railroad Retirement Board - Fiscal Year 2019 Performance Plan 

o	 The third task is the RRB’s Wide Area Network (WAN) Multiprotocol Label 

Switching (MPLS) data communications. This will include the Field Offices and 

other remote location data communications. 

o	 The fourth task will address to the RRB’s non-MPLS WAN. This will include the 

agency’s public internet connectivity and other inter-agency and business partner 

data network connectivity. 

The RRB will continuously monitor, measure, and perform value driven services to ensure the 

predictable outcome of a successful modernization for IT operations to sustain essential 

services. To achieve this goal we are deploying agile principles such as breaking up multiyearlong projects into a series of short releases focused on the most critical or Key 

Performance Indicators to increase the opportunity for success, as well as ensuring frequent 

standup meetings, or daily scrums, as an effective mean to convey information, and to 

facilitate quick resolution of identified risks and issues. 

Strategic Goal II: Provide Excellent Customer Service. We aim to satisfy our customers’ 

expectations for quality service in terms of service delivery options and levels and manner of 

performance. At the President’s proposed budget level for fiscal year 2019, we plan to 

allocate $89,439,213 and 618 full-time equivalent employees (FTEs) to this strategic goal. 

We have established two performance goals that focus on the specifics of achieving this 

strategic goal. 

Strategic Objective: Pay benefits timely. The RRB is committed to ensuring that we pay 

benefits in a timely manner. We have nine objectives in place to track the timeliness of the 

actions we take in a year regarding both Railroad Retirement Act (RRA) and Railroad 

Unemployment Insurance Act (RUIA) programs. In addition, we will: 

•	 Ensure accurate, up-to-date, accessible instructions to support our front-line
 

employees as they provide customer support.
 

•	 Inform our customers about their responsibilities. 

•	 Ensure that the Customer Service Plan is comprehensive and is revised when 

appropriate.
 

•	 Promote direct deposit for benefit payments. 

•	 Monitor key payment workloads. 

•	 Allocate resources effectively. 

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Railroad Retirement Board - Fiscal Year 2019 Performance Plan 

Our Customer Service Plan includes customer 

service timeliness standards for paying benefits. 

Through September 30, 2017, the overall actual 

performance was 98.9 percent. This means that 

customers received benefit services within the 

timeframes promised in the Customer Service 

Plan for nearly 99 percent of the 288,942 

service transactions for which timeliness was 

measured. 

The inset at the right shows composite results in 

four combined categories of services. 

Communications with RRB customers 

Overall Timeliness Performance 

Fiscal Year 2017 (through 9/30/2017) 

•	 Retirement applications: 95.2% 

(target: 95.0%) 

•	 Survivor applications: 96.6% 

(target: 95.4%) 

•	 Disability applications/payments: 

54.3% (target: 82.5%) 

•	 RUIA applications/claims: 99.9% 

(target: 99.5%) 

In addition to making payments, we provide a variety of information to our customers. We 

provide general information through our website, publications, and our toll-free number. We 

also provide information to individuals through annual statements of wages and 

compensation, annuity estimates, notices of annuity and benefit awards and changes, annual 

income tax statements, and answers to questions regarding benefits. In addition, we use an 

on-line presentation facility called RRBVision to provide information and training to the 

public and rail employers. 

Strategic Objective: Provide a range of choices in service delivery methods. To fulfill 

customers’ needs, we must provide high quality, accurate services on a timely basis, and in 

ways that are accessible and convenient to all our customers, including the elderly and those 

with impairments. Consistent with our vision statement, we strive to provide a broad range of 

choices for customer service. Our level of performance will be measured by how well we 

succeed in providing the level of service our customers expect, and by the number of new 

electronic services we can provide in each program at a reasonable cost. Our goal is to 

expand customer choice by offering alternative access to our major services. To achieve our 

goals in this area, we plan to: 

•	 Increase opportunities for our customers to conduct business in a secure manner over 

the Internet. 

•	 Continue to develop electronic services that enable the employer to conduct daily 

business transactions and file required reports in an efficient, effective and secure 

manner. 

To date, a total of 29 automated ERSNet services exist for employers to notify, request or 

provide a means for correcting and transmitting data electronically to and from the Railroad 

Retirement Board (RRB). An additional service will be added in fiscal year 2018 with the 

completion and implementation of the Suspense and Error Tracking System (SETS). This 

service will automatically notify employers when records on their BA-3, Annual Report reject 

from posting to the employee accounts. This will bring the total number of services available 

to 30 in the ERSNet system. 

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Railroad Retirement Board - Fiscal Year 2019 Performance Plan 

The RRB will continue to pursue enhancements in fiscal year 2019 with the development and 

implementation of the Form G-251A, Job Information Report and the Form G-117a, 

Designation of Contact Officials. This will add two additional services to the system. 

In fiscal year 2020, RRB in-house staff will develop on-line ERSNet processes for the Form 

RL-13g, Notice to Employer of Relinquishment of Rights of Disability Annuitant Who 

Attained Age 65 and the AESOP, Employee Retirement Estimate File. 

Strategic Goal III: Serve as Responsible Stewards for Our Customers’ Trust Funds and 

Agency Resources. The RRB is committed to fulfilling its fiduciary responsibilities to the rail 

community. At the President’s proposed budget level for fiscal year 2019, we plan to allocate 

$20,151,285 and 102 FTEs to this strategic goal. We have established four performance goals 

that focus on the specifics of achieving this strategic goal. 

Strategic Objective: Ensure that trust fund assets are protected, collected, recorded and 

reported appropriately. The RRB is committed to prudent management of its trust funds. 

Our success in this objective is reflected through annual audited financial statements, actuarial 

valuations, financial projections, benefit payment accuracy, debt collection, experience-based 

contribution rates, and payroll tax and railroad employee compensation reconciliations. We 

also have responsibilities with regard to the National Railroad Retirement Investment Trust, 

which are addressed under performance goal II-D. To accomplish this objective, we will: 

•	 Continue to issue annual audited financial statements. 

•	 Monitor the solvency of the trust funds through a sound program of actuarial
 

valuations and financial projections. 

•	 Correctly estimate the amounts needed for future benefit payments. 

•	 Verify that payroll taxes are fully collected and properly recorded. 

•	 Issue accurate, timely determinations and notices of contribution rates required under 

the unemployment and sickness insurance program. 

•	 Continue to carry out the RRB’s debt management policy. 

In November 2017, we released our Performance and Accountability Report for fiscal year 

2017. The RRB’s OIG did not express an opinion (disclaimer) on the RRB’s 2017 financial 

statements, which were included in that report. The OIG continued to report material 

weaknesses in the RRB’s financial reporting and control environment. The RRB rejects the 

material weaknesses and the basis the OIG cited for the disclaimer of opinion. Moreover, the 

RRB believes that, due to insufficient evidence to support the assertion, the cited material 

weaknesses are unfounded. RRB management takes corrective action as necessary and 

continues to devote substantial resources to strengthen its processes and enforce 

accountability for internal controls. Actions taken in previous fiscal years have significantly 

improved accuracy and consistency of recorded amounts and effectiveness of controls. 

Strategic Objective: Ensure the accuracy and integrity of benefit programs. The 

principal indicators of accuracy are the benefit payment accuracy rates in each program. Our 

performance goal is to ensure that we can continue to meet or exceed 99 percent payment 

35
 
 

 

 

 

 

 

 

 

Railroad Retirement Board - Fiscal Year 2019 Performance Plan 

accuracy in the payments we initiate or manually adjust in a given year. To accomplish this 

goal, we will: 

• Monitor payment accuracy and the levels of improper payments, and identify problems. 

• Provide feedback and take additional preventive actions as appropriate. 

• Maintain established matching programs. 

• Continue our program integrity reviews. 

Under the Improper Payments Information Act (IPIA) of 2002, and the Improper Payments 

Elimination and Recovery Act (IPERA) of 2010, the RRB reviews and reports on the amount 

of erroneous payments and engages in activities to reduce them. Since improper payment 

reporting began, the amounts attributable to the RRB’s two benefit programs (the RRA and 

the RUIA) have been below the definition of “significant” improper payments identified in the 

law and related guidance issued by OMB. 

As part of our fiduciary responsibilities to the rail community, we must ensure that the correct 

benefit amounts are being paid to the right people. We match our benefit payments against 

the Social Security Administration’s earnings and benefits database, the Centers for Medicare 

& Medicaid Services' death records, the Office of Personnel Management’s benefit records, 

and State wage reports, exclusively via secure electronic transmissions. We also administer 

other benefit monitoring programs to identify and prevent erroneous payments, and refer some 

cases to the RRB’s OIG for investigation. After investigation, the Inspector General may 

pursue more aggressive actions, which include civil and criminal prosecution. 

We measure the effectiveness of the program integrity efforts each year by comparing the 

dollars identified as improper payments and saved through these initiatives to their cost. For 

example, in fiscal year 2016, the RRB invested the equivalent of about 29 full-time 

employees, at a cost of approximately $2.8 million, in program integrity efforts. This resulted 

in over $10.3 million in recoverables, $1.6 million in benefits saved, and the referral of 22 

cases to the OIG for investigation. This is approximately $4.18 in savings for each $1.00 

invested in these activities. 

Strategic Objective: Ensure effectiveness, efficiency and security of operations. How we 

do our business is a critical component of good stewardship. The RRB is committed to 

effective, efficient and secure internal operations. Many factors and programs contribute to 

this goal. We use our management control review process as a means of reviewing critical 

agency processes in order to provide reasonable assurance of the effectiveness and efficiency 

of our programs and operations. If material weaknesses are detected, we take corrective 

action. In addition, we perform a variety of quality assurance activities to ensure that our 

benefit programs comply with established policies, standards and procedures. We consider 

the findings from these reviews as we plan our information technology initiatives. 

In support of the Administration’s direction to agencies to assess the effectiveness of current 

information technology (IT) management practices and address opportunities to improve 

management of IT resources we added measurements based on the PorfolioStat categories 

Deliver, Innovate and Protect. The measurements ensure that the agency engages in proactive 

performance management of its IT. 

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Railroad Retirement Board - Fiscal Year 2019 Performance Plan 

•	 Deliver – Deliver on Budget Percent of IT Projects costs within 10% of budgeted 

costs. 

•	 Deliver – Meet Customer Expectations. WWW.RRB.GOV Internet Services (Mainline 

and Employer Reporting System) Continuous availability experienced by end users. 

•	 Innovate – Design for Modularity. Strategy for Continuity of Operations
 

Improvements.
 

•	 Protect – Email Data Loss Prevention. Percentage of externally bound emails and 

their attachments automatically encrypted that contain personally identifiable or 

credit card information. 

•	 Protect –Percentage of agency employees required to use a Personal Identity
 

Verification (PIV) card to authenticate.
 

The measurements ensure that the agency engages in proactive performance management of 

information technology by ensuring effectiveness, efficiency and security of operations. The 

use of performance measures and management processes allows the RRB to monitor actual 

versus expected results, while also providing appropriate oversight and quality control. The 

status of each measure is captured and evaluated monthly by those responsible for overseeing 

the measure, evaluated quarterly by the Office of the Chief Information Officer to ensure that 

the activity is meeting the expected measure, and reported annually in the agency’s fiscal year 

performance plan. 

In addition to our ongoing activities, during the planning period we will continue to 

emphasize key areas related to strategic management of human capital, improving program 

performance and accountability, and systems security. 

Maximizing Employee Performance 

Like many agencies, the RRB has an aging workforce. Almost 50 percent of our employees 

have 20 or more years of service and over 31 percent of the current workforce will be eligible 

for retirement by fiscal year 2019. To prepare for the expected turnover while adhering to the 

Administration’s “Comprehensive Plan for Reforming the Federal Government and Reducing 

the Federal Civilian Workforce”, the agency is placing increased emphasis on maximizing 

employee performance. The RRB’s plan to maximize employee performance consists of two 

separate yet interrelated plans – The Human Capital Analysis Plan and the Plan to Maximize 

Employee Performance. By improving the organization’s effectiveness and workforce 

management, RRB will better utilize the Federal workforce and manage our limited human 

capital resources. By strategically evaluating the positions within the RRB, we can then focus 

on maximizing employee performance. 

Maximizing employee performance focuses on an ever-evolving evaluation and 

implementation of an effective performance management system and an on-going evaluation 

of RRB’s human resources within the Agency. This includes ensuring an efficient and 

effective workforce, setting an achievable and high level of performance expectations for 

employees, ensuring accountability for managing performance, as well as rehabilitating poor 

performers and/or removing employees unable to perform at an acceptable level of 

competence. 

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Railroad Retirement Board - Fiscal Year 2019 Performance Plan 

Human Capital Analysis Plan 

Human Capital Analysis consists of a series of steps that would help guide organizational 

design and position structure, keep positions current, and assist in maximizing employee 

performance. This methodology develops the resources and data necessary to continuously 

analyze the RRB workforce and ensure prudent, fiscally responsible personnel and 

organizational decisions. 

•	 Job Analysis - conduct job analysis according to accepted practice to identify critical 

competencies for each position and grade within the RRB. This process will create an 

up-to-date position repository on which all other Human Capital Analysis Plan steps 

are based. Additionally, accurate job analysis is legally defensible and can be utilized 

in staffing, Human Resource Development (HRD), and performance management 

efforts. 

•	 Competency Model Development – develop an RRB competency model utilizing job 

analysis information to identify agency competencies, position competencies, 

leadership/management competencies, and executive competencies. Each individual 

competency will be behaviorally defined at five proficiency levels and include 

example work behaviors. The use of previously validated or developed models will 

also be used to reduce project time. 

•	 Skill Gap Analysis –job analysis and competency model development will identify 

the knowledge and skills need to perform a given position and at what proficiency 

level. A Skill Gap Analysis will be conducted based on this information to determine 

the gap between knowledge and skills necessary and those currently possessed at the 

agency and/or individual level. 

•	 Training Needs and Career Development Analysis –Skill Gap Analysis results will 

identify knowledge and skill deficiencies throughout the agency. Utilizing those 

results, a Training Needs Analysis will be conducted to identify critical developmental 

needs and provide necessary training opportunities to improve. Additional work will 

be completed to better identify career paths within the RRB and necessary 

competencies needed for employees to progress. 

Plan to Maximize Employee Performance 

In place at the RRB are three distinct performance management systems based on an 

employee’s supervisory status, each 5-tiered performance management system is listed below: 

•	 Bargaining/non-bargaining unit employees, 

•	 supervisors/managers, and 

•	 SES employees 

In the bargaining/non bargaining performance system, modifications to performance standards 

must be reviewed by Human Resources (HR functions are centralized to Chicago, IL) prior to 

implementation. In reviewing performance standard changes and submissions, HR Employee 

Relations specialists utilize a performance standard checklist as well as OPM’s handbook for 

measuring employee performance as a guide when assisting supervisors/managers in 

developing and implementing meaningful and relevant performance standards. 

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Railroad Retirement Board - Fiscal Year 2019 Performance Plan 

In FY15, RRB performed a 100% review of performance evaluations. The review was 

conducted to ensure compliance with RRB policy and to identify and correct deficiencies or 

errors in the evaluation. In addition, managers and supervisors are reminded to review and/or 

update performance standards whenever they are looking to post a vacancy announcement. In 

FY16, RRB conducted a random sample (with 95% confidence level and 5% allowed margin 

of error) of performance evaluations to ensure compliance with RRB policy and correct any 

deficiencies. In addition, the sample provided valuable feedback and opportunity for HR to 

follow-up with managers and supervisors to address unacceptable performance ratings. 

Regardless of the applicable performance management system in question, performance 

management at the RRB is aimed at improving individual and organizational effectiveness by 

relating pay levels, pay adjustments and awards to individual and organizational performance. 

Performance management is deemed essential at the RRB and is viewed as a continuous 

process given performance management related decisions have the potential to impact other 

personnel actions (e.g. within-grade-increases, career options, career ladder promotions, 

work-at-home eligibility, training opportunities, overtime qualification considerations, 

demotion, retention and reduction-in-force (RIF) rights.) 

Effective performance management at the RRB provides an objective means of measuring 

actual work performance by considering factors such as; organizational mission, functional 

delegation, position descriptions, general output requirements of the position, critical 

elements, performance standards, job performance, performance appraisal, and performance 

feedback. 

Strengthening IT Portfolio Management – In support of the Administration’s direction to 

agencies to assess the effectiveness of current information technology (IT) management 

practices and address opportunities to improve management of IT resources, we continue to 

use measurements based on the PorfolioStat categories Deliver, Innovate and Protect. The 

measurements ensure that the agency engages in proactive performance management of its IT 

portfolio. 

Information Security Program - Information security is a critical consideration for 

government agencies where maintaining the public’s trust is essential. The RRB relies 

extensively on computerized systems to support its mission operations and store the sensitive 

information that it collects. The RRB’s information security program is established and 

maintained to reasonably protect systems data and resources against internal failures, human 

errors, attacks and natural catastrophes that might cause improper disclosure, modification, 

destruction, or denial of services. 

We continued to make progress towards a compliant Information Security program to 

improve the RRB's security posture. RRB has implemented an Information Security 

Continuous Monitoring (ISCM) Strategy as outlined in OMB Memorandum M-14-03: 

Enhancing the Security of Federal Information and Information Systems. This strategy 

addressed the gaps in the Information Security program. We have partnered with the 

Department of Homeland Security (DHS) in the Continuous Diagnostic and Mitigation 

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Railroad Retirement Board - Fiscal Year 2019 Performance Plan 

(CDM) program. This partnership with DHS will further improve our Information Security 

program pertaining to vulnerability assessment, hardware and software management, 

configuration management, and privileged account management. We have also enrolled in 

the DHS EINSTEIN-3 Accelerated (E3A) program that ensures all of the Domain Name 

System (DNS) and Simple Mail Transfer Protocol (SMTP) are monitored by these services. 

We continue to manage the risk of the critical infrastructure considering asset management, 

remote access, identity management, and network protection. Specifically: 

•	 Asset Management – we have enrolled in the DHS CDM Continuous Monitoring as a 

Service (CMaaS) to provide better visibility of current hardware and software and to 

automatically detect unauthorized hardware and software. The CDM solution is 

scheduled to be implemented in 2018. 

•	 Identity Management – we now have a multi-factor authentication solution in place 

and as part of CMaaS, we will be implementing credential management for general 

users and privileged access management for system administrators. 

•	 Remote Access – we deployed managed services for hardware encryption and have 

upgraded our Cisco ASA firewalls to strengthen information security controls for VPN 

remote access. 

•	 Network Protection – as part of CMaaS, we will further improve the Defense in Depth 

configuration in place, namely the Intrusion Prevention System (IPS), Network Access 

Control (NAC), and the Security Information and Event Management (SIEM). 

Strategic Objective: Effectively carry out responsibilities with respect to the National 

Railroad Retirement Investment Trust. Although the RRB no longer has primary 

responsibility for the investment of the trust fund monies, it continues to have responsibilities 

in ensuring that the National Railroad Retirement Investment Trust (NRRIT), and its sevenmember Board of Trustees, comply with the provisions of the Railroad Retirement Act. This 

responsibility will be fulfilled through review of the monthly, quarterly and annually 

submitted reports by the NRRIT, and its auditors’ reports. In addition, the RRB’s Board 

Members and General Counsel meet twice annually with the Trustees and receive detailed 

briefings during periodic telephone conferences. 

The RRB has authority to bring civil action should it detect any violation of the Railroad 

Retirement Act or non-compliance with any provisions of that Act. 

To facilitate coordination among the NRRIT and Federal Government organizations, the 

Department of the Treasury, OMB, NRRIT and RRB have entered into a voluntary 

memorandum of understanding concerning budgetary, accounting and financial reporting 

responsibilities. 

40
 
 

 

 

 

Railroad Retirement Board 

FY 2019 Performance Plan 

2014 

Actual 

($110.3m) 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

2017 

Actual 1/ 

($113.5m) 

2018 

Continuing 

Resolution 

($113.5m) 

2019 

President’s 

Proposed 

($115.225m) 

STRATEGIC GOAL I: Modernize Information Technology (IT) Operations to sustain mission essential services 

Strategic Objective: Legacy Systems Modernization 

Goal leader: Ram Murthy, Chief Information Officer 

I-A-1. Transform Tax and EDM 

systems (3 million lines of legacy 

COBOL) from the mainframe to 

distributed architecture. 

New 

Performance 

Goal for FY 

2018 

New 

Performance 

Goal for FY 

2018 

New 

Performance 

Goal for FY 

2018 

New 

Performance 

Goal for FY 

2018 

Measure: 

Transformation 

Complete 

Performance Goal 

achieved 

I-A-2. Deliver online retirement 

forms (AA-1, AA-3) as citizen 

centric digital solutions. 

New 

Performance 

Goal for FY 

2018 

New 

Performance 

Goal for FY 

2018 

New 

Performance 

Goal for FY 

2018 

New 

Performance 

Goal for FY 

2018 

Measure: 

Online Service 

delivered 

Performance Goal 

achieved 

I-A-3. Transition Mission Essential 

Programs from the End-of-Life 

Mainframe hardware. 

New 

Performance 

Goal for FY 

2019 

New 

Performance 

Goal for FY 

2019 

New 

Performance 

Goal for FY 

2019 

New 

Performance 

Goal for FY 

2019 

New 

Performance 

Goal for FY 

2019 

Measure: 

Transition 

Complete 

I-A-4. Complete the assessment for 

re-engineering Mission Essential 

Programs. 

New 

Performance 

Goal for FY 

2019 

New 

Performance 

Goal for FY 

2019 

New 

Performance 

Goal for FY 

2019 

New 

Performance 

Goal for FY 

2019 

New 

Performance 

Goal for FY 

2019 

Measure: 

Assessment and 

blueprint delivered 

1-A-5. Complete the migration of 

agency network and 

telecommunication services to new 

services in EIS. 

New 

Performance 

Goal for FY 

2019 

New 

Performance 

Goal for FY 

2019 

New 

Performance 

Goal for FY 

2019 

New 

Performance 

Goal for FY 

2019 

New 

Performance 

Goal for FY 

2019 

Measure: 

Migration 

Complete 

41
 
 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2019 Performance Plan 

2014 

Actual 

($110.3m) 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

2017 

Actual 1/ 

($113.5m) 

2018 

Continuing 

Resolution 

($113.5m) 

2019 

President’s 

Proposed 

($115.225m) 

STRATEGIC GOAL II: Provide Excellent Customer Service 

Strategic Objective: Pay benefits timely. 

Goal leader for objectives II-A-1 through II-A-5; II-A-7 and II-A-8: Michael Tyllas, Director of Programs 

Goal leader for objective II-A-6: Dan Fadden, Director of Field Service 

Goal leader for objective II-A-9: Rachel L. Simmons, Director of Hearings and Appeals 

II-A-1. RRB makes a decision to pay or 

deny a railroad retirement employee or 

spouse initial annuity application within 

35 days of the annuity beginning date, if 

advanced filed. 

(Measure: % ≤ 35 days) 

95.2% 95.8% 94.0% 95.0% 94.0% 94.0% 

II-A-2. RRB makes a decision to pay or 

deny a railroad retirement employee or 

spouse initial annuity application within 

60 days of the date the application was 

filed. 

(Measure: % ≤ 60 days) 

95.3% 96.5% 96.3% 95.5% 94.0% 94.0% 

II-A-3. RRB makes a decision to pay, 

deny or transfer to SSA an initial 

annuity application for a railroad 

retirement survivor not already 

receiving a benefit within 60 days of the 

annuity beginning date, or date filed 

(whichever is later). 

(Measure: % ≤ 60 days) 

96.1% 94.3% 96.0% 96.9% 94.0% 94.0% 

42
 
 

 

 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2019 Performance Plan 

2014 

Actual 

($110.3m) 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

2017 

Actual 1/ 

($113.5m) 

2018 

Continuing 

Resolution 

($113.5m) 

2019 

President’s 

Proposed 

($115.225m) 

II-A-4. RRB makes a decision to pay, deny 

or transfer to SSA an initial annuity 

application for a railroad retirement 

survivor already receiving the benefits as a 

spouse within 30 days of the RRB’s receipt 

of first notice of the employee’s death. 

(Measure: % ≤ 30 days) 

95.5% 95.5% 95.1% 96.1% 93.5% 94.0% 

II-A-5. RRB makes a decision to pay or 

deny a lump sum death benefit within 60 

days of the date the application was filed. 

(Measure: % ≤ 60 days) 

98.4% 98.1% 98.0% 97.5% 97.0% 97.0% 

II-A-6. RRB certifies a payment or releases 

a letter of denial of UI or SI benefits within 

10 days of the date RRB receives the claim. 

(Measure: % ≤ 10 days) 

99.9% 99.9% 99.9% 99.9% 98.0% 2/ 98.0% 

II-A-7. RRB makes a decision to pay or 

deny a benefit for a disabled applicant or 

family member within 100 days of the date 

the application is filed. (Measure: % ≤ 100 

days) 

42.8% 31.0% 17.4% 14.7% 

Due to ongoing 

process 

improvements, 

RRB will rebaseline this 

metric for 2018. 

3/ 

Due to 

ongoing 

process 

improvements, 

RRB will rebaseline this 

metric for 

2018. 3/ 

II-A-8. RRB makes a payment to a disabled 

applicant within 25 days of the date of 

decision or earliest payment date, whichever 

is later. 

(Measure: % < 25 days) 

95.6% 95.8% 92.6% 92.5% 93.5% 94.0% 

II-A-9. Reduce the number of days elapsed 

between the date the appeal is filed and a 

decision is rendered. (Measure: average 

elapsed days) 

270 261 239 217 250 230 

43
 
 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2019 Performance Plan 

2014 

Actual 

($110.3m) 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

2017 

Actual 1/ 

($113.5m) 

2018 

Continuing 

Resolution 

($113.5m) 

2019 

President’s 

Proposed 

($115.225m) 

Strategic Objective: Provide a range of choices in service delivery methods. 

Goal leader: Michael Tyllas, Director of Programs 

II-B-1. Offer electronic options to our 

customers, allowing them alternative ways 

to perform primary services via the Internet 

or interactive voice response systems. 

(Measure: Number of services available 

through electronic media) 

19 

services 

available 

19 services 

available 

19 

services 

available 

19 

services 

available 

20 

services available 

21 

services 

available 

II-B-2. Enable employers to use the 

Internet to conduct business with the RRB, 

in support of the Government Paperwork 

Elimination Act. 

a) Employers 

using ERS: 

(Measures: percentage of employers who 

use the on-line Employer Reporting System 

(ERS); number of services available 

through electronic media) 

b) Internet 

services: 

98.3% 99.0% 99.0% 99.0% 99.0% 99.0% 

26 Internet 

services 

available 

27 Internet 

services 

available 

27 Internet 

services 

available 

29 Internet 

services 

available 

30 Internet services 

available 4/ 

32 Internet 

services 

available 4/ 

STRATEGIC GOAL III: Serve as Responsible Stewards for Our Customers’ Trust Funds and Agency Resources 

Strategic Objective: Ensure that trust fund assets are protected, collected, recorded, and reported appropriately. 

Goal leader: Shawna Weekley, Deputy Chief Financial Officer 

III-A-1. Debts will be collected through 

billing, offset, reclamation, referral to 

outside collection programs, and a variety 

of other collection efforts. 

(Measure: total overpayments recovered in 

the fiscal year / total overpayments 

established in the fiscal year.) 

91.3% 99.6% 90.73% 85.58% 85.00% 85.00% 

44
 
 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2019 Performance Plan 

2014 

Actual 

($110.3m) 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

2017 

Actual 1/ 

($113.5m) 

2018 

Continuing 

Resolution 

($113.5m) 

2019 

President’s 

Proposed 

($115.225m) 

Strategic Objective: Ensure the accuracy and integrity of benefit programs. 

Goal leader III-B-1(a)(b) and III-B-3, 4, and 5: Michael Tyllas, Director of Programs 

Goal leader III-B-2(a): Dan Fadden, Director of Field Service 

Goal leader III-B-2(b): Micheal Pawlak, Director of Unemployment Payment Support Division 

III-B-1. Achieve a railroad retirement benefit 

payment accuracy rate 5/ of at least 99%. 

a) Initial 

payments: 

(Measure: percent accuracy rate) 

b) Sample post 

recurring 

payments: 

99.52% 99.72% 99.69% 99.95%6/ 99.50% 99.60% 

100% 99.91% 99.70% 99.88%6/ 99.50% 99.60% 

III-B-2. Achieve a railroad unemployment/ 

sickness insurance benefit payment accuracy 

rate 5/ of at least 99%. 

a) Unemployment 

(Measure: percent accuracy rate) b) Sickness 

99.83% 99.23% 99.36% 96.85%7/ 97.00%8/ 97.00%8/ 

99.52% 99.40% 99.94% 99.40%7/ 99.50% 97.50% 

III-B-3. Overall Initial Disability 

Determination Accuracy. (Measure: % of 

Case Accuracy) 

98.6%9/ 95.8%9/ 94.40% N/A 96.0% 95.0% 

III-B-4. Maintain the level of Railroad 

Retirement Act (RRA) improper payments 

below the OMB threshold. (Measure: prior to 

FY14, below 2.5%; beginning FY14, below 

1.5%) 

0.59%10/ 0.58%10/ 0.60% N/A 1.00% 1.00% 

III-B-5. Achieve a return of at least $3.60 for 

each dollar spent on program integrity 

activities. (Measure: recoverables and 

savings per dollar spent.) 

$5.20: 

$1.00 

$4.49: 

$1.00 

$4.18: 

$1.00 N/A $3.8511/: $1.00 

$3.85: 

$1.00 

45
 
 

 

 

 

 

Railroad Retirement Board 

FY 2019 Performance Plan 

2014 

Actual 

($110.3m) 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

2017 

Actual 1/ 

($113.5m) 

2018 

Continuing 

Resolution 

($113.5m) 

2019 

President’s 

Proposed 

($115.225m) 

Strategic Objective: Ensure effectiveness, efficiency, and security of operations. 

Goal leader: Ram Murthy, Chief Information Officer 

III-C-2. Deliver – Deliver on Budget. Percent of 

IT Projects costs within 10% of budgeted cost. 

New 

Performance 

Goal for FY 

2016 

New 

Performance 

Goal for FY 

2016 

100% 100% 85% 85% 

III-C-3. Deliver – Meet Customer Expectations. 

WWW.RRB.GOV Internet Services (Mainline and 

employer Reporting System) Continuous 

availability experienced by end users 

a) Continuous 

availability 

target 

b) Hours of 

outage allowed 

per month 

New 

Performance 

Goal for FY 

2016 

New 

Performance 

Goal for FY 

2016 

98.7% 99.2% 99% 

New 

Performance 

Goal for FY 

2016 

New 

Performance 

Goal for FY 

2016 

9.38 hours 6.52 hours 

Hours of 

outage allowed 

per month: 

7 hours 

III-C-4. Innovate – Design for Modularity. Strategy for Continuity 

of Operations Improvements. 

New 

Performance 

Goal for FY 

2016 

New 

Performance 

Goal for FY 

2016 

No 

Completed 

applying 

HTTPS-only 

standard to 

www.rrb.gov 

Implement 

automatic 

failover of 

email system 

to alternate 

facility 

III-C-5. Innovate – Adopt New Technologies. Percentage of 

investments that evaluated cloud alternatives. 

New 

Performance 

Goal for FY 

2016 

New 

Performance 

Goal for FY 

2016 

50% 91.67% 98.5% 

III-C-6. Protect – Email Data Loss Prevention. Percentage of 

externally bound emails and their attachments automatically 

encrypted that contain personally identifiable or credit card 

information 

New 

Performance 

Goal for FY 

2016 

New 

Performance 

Goal for FY 

2016 

99.82% 99.93% 99% 

III-C-7. Protect – Percentage of agency employees required to use a 

Personal Identity Verification (PIV) card to authenticate. 

New 

Performance 

Goal for FY 

2016 

New 

Performance 

Goal for FY 

2016 

74% 77% 

Unprivileged 

Network Users 

≥85% 

Privileged 

Network Users 

100% 

46
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2019 Performance Plan 

2014 

Actual 

($110.3m) 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

2017 

Actual 1/ 

($113.5m) 

2018 

Continuing 

Resolution 

($113.5m) 

2019 

President’s Proposed 

($115.225m) 

Strategic objective: Effectively carry out responsibilities with respect to the National Railroad Retirement Investment Trust. 

Goal leader: Ana M. Kocur, General Counsel 

III-D-1. Timely review information 

reported by the National Railroad 

Retirement Investment Trust to carry 

out RRB’s oversight responsibility 

under section 15(j) (5) (F) of the 

Railroad Retirement Act. Reports are 

to be reviewed within 30 days of 

receipt. (Measure: Yes/No) 

Yes Yes Yes Yes Yes Yes 

Footnotes are following: 

1/ Actual results represent status as of September 30, 2017, unless otherwise noted. 2/ The goal for Unemployment and Sickness claim timeliness has been lowered for FY 2018. There is a lack of funding to support the hiring of additional Field Service staff 

needed to perform these tasks at the same level of performance as seen in prior years. 3/ Disability Benefits Division (DBD) is re-baselining the customer service standard. The last known process assessment was conducted in 2010, which noted the 2009 performance 

fell short of the customer service goal by 7.5%. In May 2016, a Gantt analysis identified that the disability process takes 245 days for a decision. Based on increased staffing and 

revising business processes, DBD is determining a more appropriate goal. 4/ The goal for planned ERSNet Services for FY 2018 and FY 2019 has been reduced due to the loss of funding for contracted services and competing projects for in-house resources. 5/	 The payment accuracy rate is the percentage of dollars paid correctly as a result of adjudication actions performed. 6/ The actual results represent status as of March 31, 2017. 7/	 The actual results represent status as of June 30, 2017. 8/	 The goal for Unemployment payment accuracy has been lowered for FY 2018 and FY 2019. There is a lack of funding to support the hiring of additional Field Service staff to 

perform these tasks at the same level of performance as seen in prior years. 

9/	 FY 2014 performance was used to establish a baseline. No performance goal was established for FY 2015. 10/ Actual IP rates for FY 2014 and 2015 were adjusted to accurately show that fiscal year data reviewed matches the fiscal year data reported. 11/ Our annual goal for FY 2018 was adjusted to more closely match the defined performance goal, and to be more representative of our current return on investment. 

Note: A full-year 2018 appropriation was not enacted at the time this publication was prepared. The amount shown is in accordance with the following Public Laws: 115-56, 

Continuing Appropriations Act, 2018 and Supplemental Appropriations for Disaster Relief Requirements Act, 2017; 115-90, Further Continuing Appropriations Act, 2018; and 

115-96, Further Additional Continuing Appropriations Act, 2018 without the reduction applied. 

47
 
Page Intentionally Blank 

48
 
 

 

JUSTIFICATION OF ESTIMATES 

The Administration’s Proposed Appropriation Language 

DUAL BENEFITS PAYMENTS ACCOUNT 

For payment to the Dual Benefits Payments Account, authorized under section 15(d) of the 

Railroad Retirement Act of 1974, $19,000,000, which shall include amounts becoming available 

in fiscal year 2019 pursuant to section 224(c)(1)(B) of Public Law 98–76; and in addition, an 

amount, not to exceed 2 percent of the amount provided herein, shall be available proportional 

to the amount by which the product of recipients and the average benefit received exceeds the 

amount available for payment of vested dual benefits: Provided, That the total amount provided 

herein shall be credited in 12 approximately equal amounts on the first day of each month in 

the fiscal year. 

Note:	 A full year 2018 appropriation for this account was not enacted at the time the budget 

was prepared; therefore, the budget assumes this account is operating under the 

Continuing Appropriations Act, 2018 (Division D of P.L. 115-56, as amended). The 

amounts included in 2018 reflect the annualized level provided by the continuing 

resolution. The change from the FY 2019 Budget Submission amount of $18,000,000 

was due to an update in the RRB’s Actuarial estimate. 

49
 
 

 

 

 

Explanation of Proposed Appropriation Language 

Appropriation language Explanation 

For payment to the Dual Benefits Payments 

Account, authorized under section 15(d) of 

the Railroad Retirement Act of 1974, 

$19,000,000, which shall include amounts 

becoming available in fiscal year 2018 

pursuant to section 224(c)(1)(B) of Public 

Law 98-76; and in addition, an amount, not 

to exceed 2 percent of the amount provided 

herein, shall be available proportional to 

the amount by which the product of 

recipients and the average benefit received 

exceeds the amount available for payment 

of vested dual benefits: Provided, That the 

total amount provided herein shall be 

credited in 12 approximately equal 

amounts on the first day of each month in 

the fiscal year. 

The proposed appropriation language 

provides $19,000,000 to the Dual Benefits 

Payments Account for payment of vested 

dual benefits. Of the $19,000,000, it is 

estimated that $1 million will be derived 

from income tax revenues as provided by 

Section 224(c) (1) (B) of Public Law 98-76. 

Also, an additional reserve amount, not to 

exceed 2 percent, will be made available 

only if the product of recipients and the 

average benefit received exceeds the amount 

available. The monies provided to the Dual 

Benefits Payments Account are to be made 

available to the account on a monthly basis 

in 12 approximately equal amounts. The 

change from the FY 2019 Budget 

Submission amount of $18,000,000 was due 

to an update in the RRB’s Actuarial 

estimate. 

50
 
 

 

 

 

 

 

 

Authorizing Legislation 

2018 2019 

Continuing Appropriation 

Legislation Authorized Resolution Authorized request 

Railroad Retirement Act of 1974 

as amended: 

Sections 15(d)(1), 7(c)(1), and 

15(i)(2) 

Dual Benefits Payments Indefinite $25,000,000 a/ Indefinite $19,000,000 

a/	 A full-year 2018 appropriation for this account was not enacted at the time this publication 

was prepared. The Fiscal Year 2018 estimate amount shown is in accordance with Public 

Laws: 115-56, Continuing Appropriations Act, 2018 and Supplemental Appropriations for 

Disaster Relief Requirements Act, 2017 that provided continuing appropriations from October 

1, 2017 through December 8, 2017; 115-90, Making further continuing appropriations for 

fiscal year 2018, and other purposes that provided continuing appropriations from December 

9, 2017 through December 22, 2017; and 115-96, Further Additional Continuing 

Appropriations Act, 2018 that provided continuing appropriations from December 22, 2017 

through January 19, 2018, without the reduction applied. The change from the FY 2019 

Budget Submission amount of $18,000,000 was due to an update in the RRB’s Actuarial 

estimate. 

Section 15(d) (1): 

"There is hereby created an account in the Treasury of the United States to be known 

as the Dual Benefits Payments Account. There is hereby authorized to be appropriated 

to such account for each fiscal year beginning with the fiscal year ending September 

30, 1982, such sums as are necessary to pay during such fiscal year the amounts of 

annuities estimated by the Board to be paid under sections 3(h), 4(e), and 4(h) of this 

Act and under sections 204(a)(3), 204(a)(4), 206(3), and 207(3) of Public Law 93­

445." 

Section 7(c) (1): 

"In any fiscal year, the total amounts paid under such sections shall not exceed the total 

sums appropriated to the Dual Benefits Payments Account for that fiscal year." 

Section 15(i) (2): 

"The Secretary of the Treasury shall, on a monthly basis, credit each account 

established in the Treasury for the payment of benefits under this Act for the 

proportionate amount of benefit checks (including interest thereon) drawn on each 

such Account more than six months previously but not presented for payment and not 

previously credited to such Account, to the extent provided in advance in appropriation 

Acts." 

51
 
 

 

 

 

Appropriations History Table 

Dual Benefits Payments Account a/ 

Year 

Budget estimate to 

the Congress House allowance Senate allowance 

Appropriation/ 

continuing 

resolution 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

64,000,000 

57,000,000 

51,000,000 

45,000,000 

39,000,000 

34,000,000 

29,000,000 

25,000,000 

22,000,000 

19,000,000 

64,000,000 

--­

--­

--­

--­

--­

--­

--­

22,000,000 

64,000,000 

--­

--­

--­

--­

--­

--­

--­

22,000,000 

64,000,000 

56,886,000 

50,914,950 

50,914,950 

39,000,000 

34,000,000 

29,000,000 

25,000,000 

25,000,000 

b/ 

c/ 

d/ 

e/ 

f/ 

g/ 

h/ 

i/ 

a/ For all amounts on the following table, the appropriation language provides that an additional amount, not to 

exceed 2 percent of the appropriation amount, shall become available under certain conditions to provide for full 

payment of vested dual benefits. The appropriation language also specifies that the amount made available will 

be credited to the account on a monthly basis in 12 approximately equal amounts. 

b/ Amount reflects the level of funding provided by the Department of Defense and Full-Year Continuing 

Appropriations Act, 2011 (P.L. 112-10). This amount reflects an appropriation of $57,000,000 less a rescission 

of $114,000. 

c/ Amount reflects an appropriation of $51,000,000, less a rescission of $85,050 provided by the Departments of 

Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2012 (P.L. 112­

74). 

d/ Amount reflects an appropriation of $50,914,950 provided by the Consolidated and Further Continuing 

Appropriation Act, 2013 (P.L. 113-6). 

e/ Amount reflects an appropriation of $39,000,000 provided by the Consolidated Appropriation Act, 2014 (P.L. 

113-76). 

f/ Amount reflects an appropriation of $34,000,000 provided by the Consolidated and Further Appropriation Act, 

2015 (P.L. 113-235). 

g/ Amount reflects an appropriation of $29,000,000 provided by the Consolidated Appropriations Act, 2016 

(P.L. 114-113). 

h/ The Consolidated Appropriations Act, 2017 (P.L. 115-31) provided $25,000,000 for the Dual Benefits Payments 

Account. 

i/ A full-year 2018 appropriation for this account was not enacted at the time this publication prepared. The 

amount shown is in accordance with the following Public Laws: 115-56, 115-90 and 115-96 without the 

reduction applied. The change from the FY 2019 Budget Submission amount of $18,000,000 was due to an 

update in the RRB’s Actuarial estimate. 

52
 
 

 

 

Funding Sources 

The proposed fiscal year 2019 appropriation language calls for funding from the following 

source. 

Funding sources Budget authority a/ 

General revenue $19,000,000 

[Of the $19,000,000 to be funded 

from general revenue, $1,000,000 is 

expected from income taxes on 

vested dual benefits.] 

a/	 The proposed appropriation language provides that "... an amount, not to exceed 

2 percent of the amount provided herein, shall be available proportional to the amount 

by which the product of recipients and the average benefit received exceeds the amount 

available for payment of vested dual benefits ...." 

Note:	 The change from the FY 2019 Budget Submission amount of $18,000,000 was due to an 

update in the RRB’s Actuarial estimate. 

53
 
 

 

 

 

 

 

 

 

 

 

Dual Benefits Payments Account 

Amounts Available for Obligation 

Fiscal year Fiscal year Fiscal year 

2017 Actual 2018 Estimate 2019 Estimate 

Appropriation, excluding 2% contingency 

reserve (general funds of the Treasury) $25,000,000 $25,000,000 $19,000,000 

Transfer from other accounts (Federal 

Payments to the Railroad Retirement 

Accounts) 2,000 a/ 2,000 a/ 2,000 a/ 

Subtotal:	 $25,002,000 $25,002,000 $19,002,000 

Less: 

Unobligated balance $1,253,285 --- --­

Total obligations (payments to beneficiaries) $23,749,715 $25,002,000 $19,002,000 

a/ This amount represents this account’s share of interest on uncashed checks. 

Note: A full-year 2018 appropriation for this account was not enacted at the time this publication 

was prepared. The amount shown is in accordance with the following Public Laws: 115­

56, 115-90 and 115-96 without the reduction applied. The change from the FY 2019 

Budget Submission amount of $18,000,000 was due to an update in the RRB’s Actuarial 

estimate. 

54
 
 

 

 

 

Explanation of 2019 Request 

This is the 44th request for appropriations authorized by the Railroad Retirement Act of 

1974 to fund vested dual benefits received by railroad retirees who, under prior law, would 

have become covered by both the railroad retirement system and the social security system 

because railroad retirement was not fully coordinated with social security from 1937 to 

1974. 

Under laws in effect prior to 1975, a worker engaging in covered employment under both 

the Railroad Retirement Act and Social Security Act could receive benefits separately 

under both Acts. Because the social security benefit formula is weighted in favor of the 

low wage earner, the total of a worker’s benefits from both systems averaged more than 

annuities of railroad employees who worked in the rail industry exclusively, and who had 

paid proportionally higher retirement taxes for the purpose of receiving higher benefits. 

The cost of the dual benefits was borne by the railroad retirement system since they 

reduced the system’s income from its financial interchange with the social security system. 

This situation was the major cause of the poor financial condition of the railroad retirement 

system in the early 1970s. In order to improve the systems financial condition, the 

Railroad Retirement Act of 1974 provided that the tier I component of the railroad 

retirement annuity be reduced by any social security benefit. This essentially integrated 

the two systems and eliminated the advantage of qualifying for benefits under both 

systems. 

However, it was generally considered unfair to eliminate this advantage entirely for those 

already retired or close to retirement when the 1974 Act became effective. The 1974 Act, 

therefore, provided for a restoration of benefits which were considered vested at the end of 

1974. The restored amount was known as the “vested dual benefit.” 

After considering various alternatives, the Congress authorized general fund appropriations 

to finance the cost of phasing out dual benefits. The Congress considered it unfair to 

impose this cost on current and future railroad employees because such employees would 

not be permitted to receive dual benefits upon retirement (except where vested rights were 

involved). Similarly, the Congress believed that it would be unfair to impose this cost on 

railroads because railroads had not benefitted and had consistently opposed the creation 

and expansion of dual benefits. Financing the vested dual benefit component of railroad 

retirement annuities from general revenues was supported by a precedent regarding 

military service and by the fact that the dual benefit problem had been brought about by 

prior Congressional action repealing past dual benefit restrictions over the objections of the 

railroads. 

Under the 1974 Act, appropriations had been authorized from general revenues for the 

phase-out costs of vested dual benefits. The amounts were to be sufficient to fund vested 

dual benefits on a level payment basis over the years 1976-2000. Because there was no 

provision in the law to reduce vested dual benefits to a level that would be fully covered by 

the amount appropriated, railroad retirement taxes were being used to cover the shortfall in 

the appropriation from general revenues. This led to a drain on the Railroad Retirement 

Account and contributed to a cash flow crisis. 

55
 
 

 

 

 

To stop the resulting drain on the Railroad Retirement Account, the 1981 amendments 

changed vested dual benefits to a pay-as-you-go basis rather than a level-payment system. 

Starting in fiscal year 1982, vested dual benefits were to be reduced so as not to exceed the 

amount of the annual appropriation. 

The Railroad Retirement Solvency Act of 1983 provided that revenues generated from 

income taxes on vested dual benefits be credited to the Railroad Retirement Account for 

fiscal years 1984 through 1988, and thereafter to the Dual Benefits Payments Account. 

Thus, since fiscal year 1989, these taxes have been credited to the Dual Benefits Payments 

Account and applied as an offset to the amount of funding needed from general revenues. 

The fiscal year 2019 appropriation language provides for 12 monthly payments to this 

account from general revenues and specifies that $19,000,000 be appropriated for benefits. 

In addition, the proposed language provides that an additional amount not to exceed 

2 percent of the $19,000,000 appropriated shall be available proportional to the amount by 

which the product of recipients and the average benefit received exceeds the amount 

available for payment of vested dual benefits. The change from the FY 2019 Budget 

Submission amount of $18,000,000 was due to an update in the RRB’s Actuarial estimate. 

56
 
 

 

 

JUSTIFICATION OF ESTIMATES 

The Administration’s Proposed Appropriation Language 

FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT ACCOUNTS 

For payment to the accounts established in the Treasury for the payment of benefits under the 

Railroad Retirement Act for interest earned on unnegotiated checks, $150,000, to remain 

available through September 30, 2019, which shall be the maximum amount available for 

payment pursuant to section 417 of Public Law 98–76. 

Note: A full year 2018 appropriation for this account was not enacted at the time the budget 

was prepared; therefore, the budget assumes this account is operating under the Continuing 

Appropriations Act, 2018 (Division D of P.L. 115-56, as amended). The amounts included in 

2018 reflect the annualized level provided by the continuing resolution. 

57
 
 

Explanation of Proposed Appropriation Language 

Appropriation language Explanation 

For payment to the accounts established 

in the Treasury for the payment of 

benefits under the Railroad Retirement 

Act for interest earned on unnegotiated 

checks, $150,000, to remain available 

through September 30, 2020, which shall 

be the maximum amount available for 

payment pursuant to section 417 of Public 

Law 98-76. 

Section 417 of Public Law 98-76 (Railroad 

Retirement Solvency Act of 1983) amended 

the Railroad Retirement Act of 1974 to 

provide for monthly transfers from the 

Treasury of amounts for benefit checks 

drawn 6 months earlier and not presented for 

payment. 

Since fiscal year 1991, the RRB does not 

receive credits to this account for the 

principal amount of uncashed railroad 

retirement checks under provisions of the 

Competitive Equality Banking Act of 1987. 

Instead, such funds, which are appropriated 

to the Treasury, are transferred directly to 

the railroad retirement accounts and the 

Dual Benefits Payments Account. Interest 

on uncashed railroad retirement checks, 

however, must still be appropriated in 

advance to this account. 

58
 
Authorizing Legislation 

2018 2019 

Legislation Authorized Current 

estimate Authorized Appropriation request 

Railroad Retirement 

Solvency Act of 1983, Indefinite $150,000 a/ Indefinite $150,000 

Section 417 

Competitive Equality 

Banking Act of 1987, 

Section 1003 

Railroad Retirement Act of 

1974, as amended, 

Section 15(i)(2) 

"The Secretary of the Treasury shall, on a monthly basis, credit each account 

established in the Treasury for the payment of benefits under this Act for the 

proportionate amount of benefit checks (including interest thereon) drawn on 

each such Account more than six months previously but not presented for 

payment and not previously credited to such Account, to the extent provided 

in advance in appropriation Acts." 

59
 
 

 

 

 

 

 

 

 

 

Appropriations History Table 

Appropriation/ 

Fiscal Budget estimate House Senate continuing 

Year To the congress allowance allowance resolution 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

$150,000 

150,000 

150,000 

150,000 

150,000 

150,000 

150,000 

150,000 

150,000 

150,000 

$150,000 

150,000 

--­

--­

--­

--­

--­

--­

150,000 

--­

$150,000 

150,000 

--­

--­

--­

--­

--­

--­

150,000 

--­

$150,000 

150,000 

150,000 

150,000 

150,000 

150,000 

150,000 

150,000 

150,000 a/ 

a/ A full-year 2018 appropriation for this account was not enacted at the time this 

publication was prepared. The amount shown is in accordance with the following Public 

Laws: 115-56, 115-90 and 115-96 without the reduction applied. 

Note: Amounts appropriated are available for 2 years. 

60
 
 

 

 

 

 

 

 

 

 

 

 

 

Federal Payments to the Railroad Retirement Accounts 

(Appropriations for Uncashed Checks) 

Amounts Available for Obligation 

Fiscal year Fiscal year Fiscal year 

2017 actual 2018 estimate 2019 estimate 

Appropriation $150,000 $150,000 $150,000 

Plus: 

Unobligated balance, start of year 150,000 a/ 150,000 a/ 150,000 a/ 

Subtotal: $300,000 $300,000 $300,000 

Less: 

Unobligated balance, end of year 290,049 200,000 200,000 

Total obligations $9,951 $100,000 $100,000 

a/	 Of the total end of year unobligated balance, only the $150,000 appropriated in the 

previous fiscal year is brought forward into the subsequent fiscal year. 

Explanation of 2019 Request 

Prior to enactment of Section 417 of the Railroad Retirement Solvency Act of 1983, amounts 

for uncashed benefit checks were not credited to the Railroad Retirement Accounts. Section 

417 provided a two-part process for recovering unnegotiated benefit check amounts. The 

first part, represented by the 1985 appropriation request, was a catch-up mechanism to credit 

the accounts with the amount of all uncashed checks issued prior to May 1985 that the 

Treasury and the RRB could jointly identify from accounting records. The amount agreed 

upon and appropriated in 1985 was $15 million and was to remain available through 

September 30, 1986. 

The second part of the process went into effect for checks issued on and after May 1, 1985. 

From that date, on a monthly basis, the Treasury transferred to the account amounts 

represented by checks drawn 6 months earlier and not presented for payment. These 

amounts were provided for, in advance, in appropriation acts. For fiscal year 1991 and 

thereafter, the RRB is to seek appropriation authority only for the interest earned on 

unnegotiated checks. Under provisions of the Competitive Equality Banking Act of 1987, 

the principal amount of uncashed railroad retirement checks is to be appropriated to the 

Treasury, which in turn shall transfer such amounts directly to the appropriate RRB accounts. 

The appropriation proposed for fiscal year 2019 provides that funds would be available for 

2 years, through September 30, 2020. 

61
 
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62
 
 

 

 

 

 

 

 

 

 

 

 

 

Information Technology Investment Initiatives 

For fiscal year 2019, OMB guidance provides for an IT investment level of $1,600,000 for 

LSMS and $2,400,000 for EIS; however, this level does not encompass all needed IT 

investments included in the Agency Request shown below. The IT investments initiatives 

that would remain unfunded include: components of the Legacy Systems Modernization 

Services, Electronic Records Utilization and Paperless Processing, components of Cyber 

Security and Privacy, Financial Management Integrated Systems Upgrade, and Records 

Management System. 

The following list of prioritized IT investment initiatives are critical to the RRB’s Agency 

Reform Plan as submitted in accordance with OMB Guidance M-17-22, “Comprehensive 

Plan for Reforming the Federal Government and Reducing the Federal Workforce,” as well 

as promotes compliance with the President’s Executive Order, Strengthening the 

Cybersecurity of Federal Networks and Critical Infrastructure, dated May 11, 2017 and the 

related OMB Memorandum, M-17-25. 

Investment Agency 

Request Level 

OMB 

Guidance 

Additional 

Need 

1 Enterprise Infrastructure Solutions (EIS) 2,400,000 2,400,000 0 

2 Legacy Systems Modernization Services (LSMS) 7,280,000 1,600,000 5,680,000 

3 Electronic Records Utilization and Paperless Processing 2,200,000 0 2,200,000 

4 Cybersecurity and Privacy 1,072,000 0 1,072,000 

5 Financial Management Integrated System (FMIS) Upgrade 1,250,000 0 1,250,000 

6 Records Management System 1,315,000 0 1,315,000 

$15,517,000 $4,000,000 $11,517,000 

Priority 1: Enterprise Infrastructure Solutions (EIS)1 

Investment Agency 

Request Level 

OMB 

Guidance 

Additional 

Need 

Enterprise Infrastructure Solutions (EIS) $2,400,000 $2,400,000 0 

The Enterprise Infrastructure Solutions (EIS) contract and related project is the RRB’s 

highest priority for FY 2019 and directly aligns to the RRB Agency Reform Plan’s third 

proposal to “Improve Organizational Efficiency and Effectiveness.” GSA has established 

this single new EIS program, to replace all of the existing contract vehicles for government 

telecommunications and infrastructure solutions. The transition must be completed no later 

than March 2020, and gives RRB the opportunity to consolidate network services, as well as 

to re-architect and modernize our network infrastructure. 

1 The EIS project is the top priority for FY 2019 due to the expiration of GSA’s Networx contract and the priority to 

complete transition to the new contract vehicle by March 2020. The LSMS project is still the first priority for FY 2018 and 

out years, with the exception of FY 2019. 

63
 
 

 

 

 

 

 

Using the assigned $2.4M in FY 2019, the RRB will move forward with the EIS transition 

for network related equipment, services and parallel operations as needed during the 

transition. With the assigned funding, we will issue four major solicitations. The first 

solicitation will be for Web Content delivery services. These services will provide a publicly 

accessible web interface to access www.rrb.gov. The second solicitation will address the 

agencies Enterprise-wide Voice Communications. Services in the Voice solicitation include 

Automatic Call Distribution (ACD), Interactive Voice Response (IVR), call conferencing, 

station-to-station calling (on-network and off-network), National Toll Free Services and 

other collaboration tools. The third solicitation is the RRB’s Wide Area Network (WAN) 

Multiprotocol Label Switching (MPLS) data communications. This will include the Field 

Offices and other remote location data communications. The fourth solicitation will address 

to the RRB’s non-MPLS WAN. This will include the agencies public internet connectivity, 

other inter-agencies and business partner data network connectivity. 

Much of the transition will migrate existing technology to similar or enhanced technology in 

a “like for like” fashion, where applicable. As applicable the RRB will pursue technological 

enhancements and efficiencies factoring in return on investment, capital expense, and human 

capital effort. This EIS contract enables RRB to reinvent its network infrastructure. By 

combining the previously implemented disparate Voice over IP (VoIP) systems at the Field 

locations and the HQ, we enable a uniform 5-digit dialing across all nationwide offices of the 

RRB. With the emerging cloud solutions we optimize our network backbone connectivity to 

overcome latency issues when our users access cloud services. The market trend is in 

advanced automation combined with just in time analytics to create networking solutions. 

Where feasible we leverage software based networking services, namely Network 

Virtualization and SDWAN services. 

Priority 2: Legacy Systems Modernization Services (LSMS) 

Investment Agency 

Request Level 

OMB 

Guidance 

Additional 

Need 

Legacy Systems Modernization Services (LSMS) $7,280,000 $1,600,000 $5,680,000 

The RRB’s Legacy Systems Modernization Services (LSMS) project is the RRB’s second 

priority for FY 2019 (remains the first priority in FY 2018 and out years with the exception 

of FY 2019) and directly aligns to the RRB Agency Reform Plan’s first proposal to “Improve 

Organizational Efficiency and Effectiveness.” The project seeks to modernize the RRB’s IT 

systems, in order to mitigate cyber security risks, improve fraud prevention and detection 

abilities, and to support a more effective, efficient and leaner workforce. 

64
 
 

 

 

 

 

 

 

 

 

Currently, the RRB’s adjudication and benefit payment systems have aged substantially and 

have grown too complex and costly to maintain. The RRB’s mainframe environment 

includes 200 major distinct applications systems consisting of approximately 12 million lines 

of code in COBOL. In addition to work inefficiencies, securing and defending RRB’s 

network and critical information infrastructure from cyber-attacks has become increasingly 

difficult. It is costly and extremely resource intensive heavy to protect sensitive customer 

data in the legacy systems. Using an incremental and iterative approach, we will transform 

high risk enterprise systems with a digital first perspective. 

With the limited agency funding, the current LSMS phase is estimated to complete in 7 

years. In other words, it will take an additional 5 years beyond what was envisioned two 

fiscal years ago. This project extension adds new risks with the end-of-life for agency’s 

mainframe computer (Dec 2018) along with the attrition of the mainframe support staff (Dec 

2018). To mitigate these risks sooner rather than later, the revised plan is to first focus on the 

mainframe risk alone (by legacy re-platform), and then mitigate the risk of COBOL 

applications. Under the legacy re-platform approach, the agency will transition the current 

COBOL based applications from the mainframe environment to a server based platform. This 

legacy re-platform solution is the highest priority in FY 2018. Market research indicates that 

our legacy re-platform solution can be achieved in 15 to 18 months. 

Assuming that the agency is able to set aside funding in FY 2018 to complete the legacy replatform approach, then the $1.6M in FY 2019 will enable RRB to start, but not complete, 

the re-engineering of the benefit processing services. It is estimated that an additional 

$5.68M is needed in FY 2019 and $10.1M subsequently, for a total of $17.38M to complete 

the entire re-engineering effort. With the $1.6M we begin this phase by conducting the 

business process re-engineering and architecture blueprint to enable shared services from the 

Cloud. The agency has the opportunity to rethink our business processes and how best to 

fulfill the mission. To facilitate this thinking, we will bring in external contractors (subject 

matter experts) to deliver the blueprint. Based on the blue print and with the projected 

funding in the upcoming fiscal years, we build and complete the next set of deliverables to 

achieve the transformation, namely: 

1.	 The core services for the agency that cannot be outsourced (benefit calculation and 

payment processing); 

2.	 The closely tied shared services in terms of Imaging, Records Management,
 

Prescriptive Analytics, and Audit/Compliance; and 

3.	 All other services that are available as Cloud services in a Government Community 

Cloud. 

The impact from not receiving any additional funds for FY 2019 (beyond the $1.6M) is that 

we cannot mitigate the risk of COBOL applications sooner. Considering the steps outlined 

above, the limited funding will get us started (but unable to complete) on step (1) from the 

blue print mentioned above, and we postpone the other steps (2) and (3). In other words, the 

agency will have to postpone the transition to the private cloud for storage of High Value 

Assets, and to the external Government Community Cloud for Case Management, Customer 

Management, Desktop-as-a-Service, DevOps, Continuous Monitoring, Website portal, and 

Railroad Community Self-service solutions. 

65
 
 

 

 

 

 

 

 

 

 

 

 

UNFUNDED INFORMATION TECHNOLOGY INVESTMENT PRIORITIES 

As the RRB's current IT environment ages, the risk increases for aggravated security issues, 

reduced efficiencies, inability to meet critical mission workforce needs, and inadequate 

project oversight. Delays or restrictions on funding the implementation of these initiatives 

will hamper the RRB's ability to meet its mission and strategic goals. 

Under the President’s proposed FY 2019 budget, the following mission critical initiatives did 

not receive funding. 

Priority 3 (Unfunded): Electronic Records Utilization and Paperless Processing 

Investment Agency 

Request Level 

OMB 

Guidance 

Additional 

Need 

Electronic Records Utilization and 

Paperless Processing $2,200,000 0 $2,200,000 

RRB’s Electronic Records Utilization and Paperless Processing initiative is the RRB’s third 

priority and directly aligns to the RRB Agency Reform Plan’s fourth proposal to “Improve 

Organizational Efficiency and Effectiveness.” The RRB proposes to establish an electronic 

imaging and records system, which will eliminate a significant portion of its paper-based 

processing. RRB will also migrate to paperless disability program processing as a future 

automation goal. 

Automating manual processes is critical for increasing employee efficiency and effectiveness 

in a benefits-paying environment. In addition, migration to an electronic method of 

processing disability claims would provide a means for real-time detection and prevention of 

disability fraud by facilitating greater data modeling to reduce fraud, waste and abuse while 

also enabling the use of data mining techniques that will assist auditors and investigators. 

Enhancements to the current system will enable the electronic export of e-mails, direct 

receipt of third party documents and faxes, as well as streamlining the process of scanning a 

claim folder to imaging. 

Priority 4 (Unfunded): Cybersecurity and Privacy 

Investment Agency 

Request Level 

OMB 

Guidance 

Additional 

Need 

Cybersecurity and Privacy $1,072,000 0 $1,072,000 

The agency’s cybersecurity and privacy strategy is to make attacks ineffective through 

prevention and detection through continuous monitoring. Funding will enhance the RRB’s 

information security and privacy program activities, which directly support the President’s 

Executive Order on Strengthening the Cybersecurity of Federal Networks and Critical 

Infrastructure. Because of the sensitivities related to security and privacy program activities, 

specifics for this element are intentionally omitted and available internally only. 

66
 
 

 

 

 

 

 

In general, RRB mitigates risk through the complementary use of technology, such as 

firewalls, integrity checkers, virus scanners, intrusion detection systems, anti-virus software 

and other special security devices, and well-trained personnel. To supplement the agency’s 

continuous monitoring strategy, we recently formed a partnership with the Department of 

Homeland Security (DHS) and enrolled in the Continuous Diagnostic Mitigation (CDM) 

program. The CDM program increases the agency’s visibility of potential threats 

continuously. 

Priority 5 (Unfunded): Financial Management Integrated System Upgrade 

Investment Agency 

Request Level 

OMB 

Guidance 

Additional 

Need 

Financial Management Integrated 

System (FMIS) Upgrade $1,250,000 0 $1,250,000 

In compliance with Financial Management Line of Business (FMLOB) guidance RRB 

commenced using a core financial management system in a cloud environment hosted by a 

shared service provider (CGI Federal Inc.) at the beginning of fiscal year 2014. The system, 

called the Financial Management Integrated System (FMIS), currently supports the 

processing and reporting functions of budget preparation and execution, acquisition and 

purchasing, accounts payable and disbursement, general ledger, external reporting, fixed 

assets and accounts receivable. The system is supported by CGI Federal’s proprietary 

financial system software – Momentum. The RRB is currently using the version of 

Momentum that was available at the time of migration - 7.0. Since that time, CGI has 

released five updated versions of Momentum containing significant added functional 

enhancements and regulatory updates that reflect current Federal guidance and mandates. 

The funding will support a migration by RRB to the most current version of the Momentum 

software, 7.5, and increase the agency’s ability to meet its business and reporting 

requirements efficiently and timely. 

Priority 6 (Unfunded): Records Management System $1,315,000 

Investment Agency 

Request Level 

OMB 

Guidance 

Additional 

Need 

Records Management System $1,315,000 0 $1,315,000 

OMB memorandum M-12-18, Managing Government Records Directive, mandated that by 

Fiscal Year 2019, all Executive Branch agencies implement efforts to reform records 

management policies and practices and to develop a 21st-century framework for the 

management of Government records. The RRB did not receive funding to meet this 

mandate. 

The RRB acquired contractor services in fiscal year 2015 to perform an assessment of its 

records management program to meet the requirements of OMB M-12-18. Deliverables 

included an evaluation of current records management processes with a focus on 

identification of areas where improvement is necessary, and the development of a tactical 

67
 
action plan to meet the requirements of OMB M-12-18 going forward in future fiscal years. 

The contract assessment included a recommendation that the RRB implement an Records 

Management System (RMS) based on the action plan. 

This funding will support RRB’s plan to develop and implement a new cloud based RMS. 

When complete, the RMS will identify, maintain, classify and dispose of RRB electronic 

records including disability related records and e-mail, according to specified records 

disposition policies. Completion of this project will support our third proposals to “Improve 

Organizational Efficiency and Effectiveness” as discussed in the RRB’s Agency Reform Plan 

in accordance with OMB Guidance M-17-22. 

68
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RAILROAD RETIREMENT BOARD
 

Summary of Full-Time Equivalent Employment
 

Series Rank 

FY 2017 

actual 

FY 2018 

estimate 

FY 2019 

estimate 

Executive Level III 0 1 1 

Level IV 2 2 2 

Senior Executive Service ES-00 6 7 7 

General Schedule/Management GS/GM-15 35 32 32 

GS/GM-14 64 60 52 

GS/GM-13 101 96 90 

GS-12 213 202 189 

GS-11 115 111 99 

GS-10 117 114 99 

GS-9 59 57 47 

GS-8 40 38 27 

GS-7 54 52 45 

GS-6 7 7 6 

GS-5 12 10 41 

GS-4 28 29 20 

GS-3 0 0 0 

GS-2 0 0 0 

All Levels Combined Total 853 818 757 

Positions in the Office of Inspector General are excluded. 

Note: The estimated 757 FTEs, is 93 FTEs less than what is needed to sustain the agency’s 

mission essential functions. Funding for the agency’s Information Technology investments 

would improve the agency’s ability to sustain organizational performance at lower FTE levels in 

the future. 

69
 
AVERAGE ES/SES AND GS/GM SALARIES AND BENEFITS 

AND GS/GM GRADES 

FY 2017 FY 2018 FY 2019 

actual Estimate estimate 

Average ES/SES salary $177,274 $176,042 $176,042
 

Average ES/SES benefits 57,046 51,018 51,658
 

Total, ES/SES 234,320 227,060 227,700 

Average GS/GM salary $83,850 $89,763 $90,197
 

Average GS/GM benefits 26,983 26,014 26,468
 

Total, GS/GM 110,833 115,777 116,665 

Average GS/GM grade 12.3 12.4 12.4 

RAILROAD RETIREMENT BOARD
 

EMPLOYEE RELOCATION EXPENSES
 

Past year Current year Budget year 

FY 2017 FY 2018 FY 2019 

Total $217,475 $402,500 $234,000 

70
 
 

 

 

LEGISLATIVE PROPOSALS FOR FY 2019
 

1.	 Amend the Railroad Retirement Act to allow the Railroad Retirement Board to 

utilize various hiring authorities available to other Federal agencies. 

Section 7(b) (9) of the Railroad Retirement Act contains language requiring that all 

employees of the Railroad Retirement Board, except for one assistant for each Board 

Member, must be hired under the competitive civil service. 

Elimination of this requirement would enable the Railroad Retirement Board to use 

various hiring authorities offered by the Office of Personnel Management. 

2.	 Amend the Railroad Retirement Act and the Railroad Unemployment Insurance 

Act to include a felony charge for individuals committing fraud against the Agency. 

Section 13 of the Railroad Retirement Act and Section 9 of the Railroad Unemployment 

Insurance Act contain misdemeanor charges for individuals committing fraud against the 

Railroad Retirement Board. 

The Railroad Retirement Board proposes to amend the Railroad Retirement and Railroad 

Unemployment Insurance Acts to include a felony charge for individuals committing 

fraud against the Agency. 

Under this proposal, both the Railroad Retirement Act and the Railroad Unemployment 

Insurance Act would be amended to include a felony charge similar to violations under 

42 U.S.C. § 408, 18 U.S.C. § 1001, or 18 U.S.C. § 287. 

3.	 Amend the Social Security Act to provide access for the Railroad Retirement Board 

to the National Directory of New Hires and to waive the customary fees for the 

RRB. 

The Social Security Act provides for a National Directory of New Hires (NDNH). The 

Directory is used to enhance child support payments and in enforcement of the tax laws 

of the United States. In addition, the Commissioner of Social Security is granted access 

to the Directory. 

71
 
 

 

 

 

The 2017 Budget included a package of proposals to allow additional programs and 

agencies authority to access the National Directory of New Hire Data, a federal database 

of employment and unemployment insurance information administered by the Office of 

Child Support Enforcement within the Department of Health and Human Services (HHS). 

Access to this data is tightly controlled by statute, and HHS implements strong privacy, 

confidentiality, and security protections to protect the data from unauthorized use or 

disclosure. Currently several programs are successfully using this data for program 

integrity, implementation, and research purposes, and the use of that data has led to 

important insights and program integrity gains. The 2017 Budget proposed to build on 

this strong history of data stewardship and protection to allow additional programs and 

agencies to access this valuable data to learn what works and improve program 

implementation, while continuing to protect the privacy, security and confidentiality of 

that data. Included in this package was the Railroad Retirement Board (RRB). 

The Railroad Retirement Board pays benefits under both the Railroad Retirement and 

Railroad Unemployment Insurance Acts that are based in part on a claimant’s earnings. 

The RRB currently conducts wage matches with all 50 States to detect improper 

payments. The 2017 Budget proposed access to NDNH for the RRB in order to conduct 

wage matches, establish eligibility for disability benefits in a more efficient manner, and 

detect potential improper payment of benefits under the Railroad Retirement and 

Railroad Unemployment Insurance Acts. 

72