EMPLOYER EXCHANGE 

U.S. Railroad Retirement Board, Quality Reporting Service Center

ISSUE XLV SEPTEMBER 2019

U.S. SUPREME COURT RULING FOR NON-QUALIFIED STOCK OPTIONS

In the case Wisconsin Central Ltd. v. United States, 138 S.Ct. 2067 

(2018), the Supreme Court of the United States (SCOTUS) ruled that 

non-statutory stock options granted to employees are not taxable 

“money remuneration” under Section 3231(e)(1) of the Railroad 

Retirement Tax Act (RRTA). Since non-statutory stock options are no 

longer considered taxable compensation under the RRTA, interim 

instructions for reporting purposes are that they are also no longer 

considered creditable compensation under the Railroad Retirement 

(RRA) and Railroad Unemployment Insurance (RUIA) Acts. For more 

information about the ruling, please consult PL 2019-02, Changes in 

Creditable Compensation for Non-Qualified Stock Options—Effective 

for Compensation Reports for Calendar Year 2018. 

 

RESOURCES FOR EMPLOYERS

The RRB website (RRB.gov) is not just a source of information for 

annuitants and beneficiaries. We also provide a large number of 

resources for rail employers and rail labor organizations. The 

information available is divided into four general categories:

 Employer Online Services – Web-based resources frequently 

used by rail employers and rail labor organizations. 

 Forms – A list of various forms covered employers use to 

report creditable service, compensation, and other related 

activities to the RRB. Available to view and print. 

 Publications – Contains links to newsletters, program/circular 

letters, and additional resources covering topics of interest for 

covered employers.

 Reporting Instructions - Detailed information on the role and 

responsibilities of all covered employers for reporting under the 

RRA and RUIA; along with examples on how and when to 

report to the RRB.

If you have any questions regarding your responsibilities as a 

covered employer, please contact the Quality Reporting Service 

Center (QRSC) using the information listed at the end of this 

newsletter. 

Job Vacancy Listing

The RRB routinely maintains an online job vacancy list as 

openings are reported by hiring railroad employers. In addition to 

the list, employers are encouraged to provide us with a direct link 

to where employment information resides on their company's 

website. To provide the RRB with this information, please contact 

an RRB Field Office at (877) 772-5772 or email JVL@rrb.gov. 

 

FOR YOUR INFORMATION

BA-9 Form Added to ERSNet

The RRB will add Form BA-9, Report of Separation Allowance or 

Severance Pay, to the ERSNet system by the end of September 

2019. The BA-9 is used by employers to report separation 

allowances or severance payments made to employees. This 

report is needed by the RRB to establish disqualification periods 

for unemployment and sickness benefits and to calculate any 

Separation Allowance Lump Sum benefits due at retirement. 

Access to the BA-9 form on ERSNet can be gained by submitting a 

completed Form BA-12, Application for Employer Reporting 

System to the RRB.

 RRB Online Services Survey

Thank you to those who participated in the RRB Railroad 

Employers Focus Groups in July. By providing input regarding 

your interactions with the RRB you have assisted significantly

with our re-engineering efforts. As discussed in the Focus Group, 

we are interested in feedback from your active railroad 

employees to help us make decisions about current and future 

online services offered by the RRB. The RRB Online Services 

Survey (https://survey.us.confirmit.com/wix/p3092699632.aspx?

r=rr) will be open until Friday, September 20, 2019. NOTE: The 

survey will take about 25 minutes, and must be completed in one 

session. All responses are voluntary and anonymous. 

 

Highlights...

COURT RULING RESOURCES FYI REMINDERS
 

 REMINDERS 

Annual Notices under the RUIA

In early October 2019, we will release the ID-40R/S forms, 

Annual Notice under the RUIA, for the 2020 calendar year. These 

forms notify employers of their Railroad Unemployment Insurance 

Act (RUIA) contribution rate to be used during the period of 

January 1 through December 31, 2020. If you do not receive the 

form by the end of the month, please contact the Quality 

Reporting Service Center at the telephone number or email 

address below.

Annuity Estimates 

The RRB Annuity Estimate Operation (AESOP) will be released in 

September. This provides annuity estimates for all of the eligible 

employees for railroad employers and their subsidiaries. The type of 

information can be very helpful with retirement planning. If you do 

not currently receive AESOP for your organization and you want to 

receive it in the coming years, contact QRSC at the number or email 

address listed below. 

Deemed Service

The annual Form GL-99, Employer’s Deemed Service Months 

Questionnaire was released to employers in June of this year. If 

you haven’t already, please return the completed form ASAP. The 

information you provide may result in the RRB awarding additional 

months of service to the applicable employees based on their 

reported service months and Tier II compensation for calendar year 

2018. 

Employee Return to Railroad Service

The RRB released Forms GL-132, Notices of Service Reported for 

Annuitant Who is Receiving an RRB Annuity to employers in order 

to verify whether former employees are correctly receiving 

retirement benefits under the Railroad Retirement Act (RRA). 

Annuitants who return to work for employers covered under the RRA 

are not entitled to retirement annuities from the RRB. Compensation 

can be credited to an employee’s account when paid, regardless of 

when the employee retires or resigns. However, service months 

must be credited when the service is performed. No additional 

service months can be credited after the employee stops working 

and relinquishes his/her rights to work for your company. If service 

had been reported for your former employee after his /her retirement 

annuity began you may have received a Form GL-132. This form will 

help us determine whether the service was credited properly. 

Please help us reconcile these records by completing and returning 

this form to our office as soon as possible. 

U.S. Railroad Retirement Board

Quality Reporting Service Center

844 North Rush Street

Chicago, IL 60611-1275

email: QRSC@rrb.gov | phone: (312) 751-4992 | fax: (312) 751-7123

Experience Rating Specialist: (312) 751-4550

RRB.gov