The President's Budget includes three proposed legislations for the Limitation on Administration 

account. The first legislation clarifies the authority of the RRB to hire attorneys through 

competitive civil service. The second legislation 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 third legislation 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 

May 23, 2017 

Enclosure 

cc: The Honorable, Mick Mulvaney, Director 

Office of Management and Budget 

 

 

The President's Budget includes three proposed legislations for the Limitation on Administration 

account. The first legislation clarifies the authority of the RRB to hire attorneys through 

competitive civil service. The second legislation 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 third legislation 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 

May 23, 2017 

Enclosure 

cc: The Honorable, Mick Mulvaney, Director 

Office of Management and Budget 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

JUSTIFICATION OF BUDGET ESTIMATES 

FISCAL YEAR 2018 

TABLE OF CONTENTS 

Page 

Number 

AGENCY OVERVIEW 

Summary of Appropriation Estimates for Fiscal Years 2017 and 2018................... 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 2018 Performance Plan......................................................... 27
 

DUAL BENEFITS PAYMENTS ACCOUNT 

Proposed Appropriation Language.......................................................... 47
 

Explanation of Proposed Appropriation Language....................................... 48
 

Authorizing Legislation....................................................................... 49
 

Appropriations History Table................................................................ 50
 

Funding Sources.............................................................................. 51
 

Amounts Available for Obligation......................................................... 52
 

Explanation of 2018 Request............................................................... 53
 

FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT ACCOUNTS 

Proposed Appropriation Language.......................................................... 55
 

Explanation of Proposed Appropriation Language....................................... 56
 

Authorizing Legislation...................................................................... 57
 

Appropriations History Table................................................................ 57
 

Amounts Available for Obligation.......................................................... 58
 

Explanation of 2018 Request................................................................ 58
 

OTHER INFORMATION 

Summary of Full-time Equivalent Employment.......................................... 59
 

Average ES and GS/GM Salaries and Benefits, and GS/GM Grades.................. 60
 

Employee Relocation Expenses............................................................ 60
 

Legislative Proposals........................................................................... 61
 

ii 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RAILROAD RETIREMENT BOARD 

SUMMARY OF APPROPRIATION ESTIMATES 

FOR FISCAL YEARS 2017 and 2018 

Fiscal Year 2017 Fiscal Year 2018 

Account FTEs Amount FTEs Amount Page 

Limitation on Administration 837 $111,225,000 a/ 798 $111,225,000 9 

Dual Benefits Payments –– $29,000,000 a/ –– $22,000,000 b/ 47 Account 

Federal Payments to the –– $ 150,000 a/ –– $ 150,000 c/ 55 Railroad Retirement Accounts 

Limitation on the Office of 47 $8,437,000 a/ 46 $8,437,000 d/ –– Inspector General 

a/	 The full year 2017 appropriations for these accounts were not enacted at the time the budget was 

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

Construction, Veterans Affair, and Related Agencies Appropriations Act, 2017, and Zika Response 

and Preparedness Act (P.L. 114-223) provided continuing appropriations from October 1 through 

December 9, 2016; Further Continuing and Security Assistance Appropriations Act, 2017 (P.L. 114­

254) provided continuing appropriations from December 10, 2016 through April 28, 2017; and 

Making Further Continuing Appropriations for Fiscal Year 2017, and for Other Purposes (P.L. 115­

30) provided continuing appropriations from April 29 through May 5, 2017. 

The Consolidated Appropriations Act, 2017 (P.L. 115-31) provided $113,500,000 for the Limitation 

on Administration, $25,000,000 for the Dual Benefits Payments Account, $150,000 for the Federal 

Payments to the Railroad Retirement Account and $10,000,000 for the Limitation on the Office of 

Inspector General. 

b/	 The appropriation language provides for $22,000,000 to fund vested dual benefits from general 

revenues of which $2,000,000 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. 

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

will remain available through September 30, 2019. 

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 2016, the RRB paid $12.5 billion, net of recoveries and offsetting collections, 

in retirement and survivor benefits to about 553,000 beneficiaries. This included benefits paid 

on behalf of the Social Security Administration amounting to $1.5 billion to about 111,000 

beneficiaries. The RRB also paid unemployment-sickness benefits of $132.3 million, net of 

recoveries and offsetting collections. About 17,000 railroad workers received unemployment 

insurance benefits, and approximately 17,000 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, 2016, about 13,000 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 2018, it is estimated that the RRB will be reimbursed about $27.8 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, 2016, was approximately $25.1 

billion. From its inception through January 2017, the Trust transferred approximately $19.8 

billion to the RRB to pay railroad benefits, including approximately $1.4 billion in fiscal year 

2016. 

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 21.1 percent, while the tier II tax rate for 

employees can be between 0 percent and 4.9 percent. The calendar year 2017 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 $94,500 in 2017. 

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 2017 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 $127,200 in 2017, 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 2017, the minimum employer contribution rate is 2.15 percent. New 

employers in 2017 will pay a tax of 1.62 percent, which represents the average rate paid by all 

employers in the period 2013 – 2015. For 78 percent of covered employers, the unemployment 

insurance rate assessed will be 2.15 percent in 2017, while 8 percent of employers will pay the 

maximum of 12 percent. 

The 2017 rate is applied to the first $1,545 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 2017 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 

VACANT 

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 

Lynn E. Cousins 

THE BOARD 

Chairman, VACANT 

Labor Member, Walter A. Barrows 

Management Member, Steven J. Anthony 

CHIEF ACTUARY * 

BUREAU OF 

THE ACTUARY 

Frank J. Buzzi 

CHIEF 

FINANCIAL 

OFFICER 

BUREAU OF 

FISCAL 

OPERATION 

VACANT 

OFFICE OF 

GENERAL COUNSEL 

VACANT 

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 

April 2017 
 

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, $111,225,000, 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 2017 appropriation for this account was not enacted at the time the budget was 

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

Security Assistance Appropriations Act, 2017 (P.L. 114-254). The amounts included for 2017 

reflect the annualized level provided by the continuing resolution. 

Military Construction, Veterans Affair, and Related Agencies Appropriations Act, 2017, and Zika 

Response and Preparedness Act (P.L. 114-223) provided continuing appropriations from October 

1 through December 9, 2016. P.L. 114-254 provided continuing appropriations from December 

10, 2016 through April 28, 2017. Making Further Continuing Appropriations for Fiscal Year 2017, 

and for Other Purposes (P.L. 115-30) provided continuing appropriations from April 29 through 

May 5, 2017. The Consolidated Appropriations Act, 2017 (P.L. 115-31) provided $113,500,000 

funding for the Limitation on Administration. 

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, $111,225,000, 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. 

10 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Authorizing Legislation 

2017 2018 

Current Appropriation 

Legislation Authorized estimate Authorized request 

Authorizing legislation -- Indefinite $111,225,000 a/ Indefinite $111,225,000
 

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 2017 appropriation for this account was not enacted at the time the budget was prepared. The 

amounts shown are in accordance with the following Public Laws: 114-223, 114-254 and 115-30. The 

Consolidated Appropriations Act, 2017 (P.L. 115-31) provided $113,500,000 for the Limitation on 

Administration. 

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 
 

 

 

ADMINISTRATIVE EXPENSES a/
 

Budget Authority By Object Classification
 

Limitation on Administration Fiscal year 2016 Fiscal year 2017 Fiscal year 2018 Change (increases 

Direct obligations by object class actual amounts($) b/c/ enacted amounts($) c/d/ estimated amounts($) c/ and decreases) 

Personnel compensation: 

Full-time permanent 58,794,000 61,409,000 59,872,000 -1,537,000 

Positions other than permanent 780,000 541,000 589,000 48,000 

Other personnel compensation 1,356,000 1,331,000 1,670,000 339,000 

Total personnel compensation 60,930,000 63,281,000 62,131,000 -1,150,000 

Personnel benefits: civilian 21,905,000 23,186,000 22,477,000 -709,000 

Benefits for former personnel 284,000 315,000 315,000 0 

Travel and transportation of persons 606,000 682,000 835,000 153,000 

Transportation of things 26,000 36,000 49,000 13,000 

Rental payments to GSA 3,401,000 e/ 3,200,000 3,300,000 100,000 

Communications, utilities, and 4,853,000 5,575,000 5,544,000 -31,000 

miscellaneous charges 

Printing and reproduction 183,000 256,000 287,000 31,000 

Consulting services 1,148,000 405,000 634,000 229,000 

Other services 14,406,000 13,368,000 14,649,000 f/ 1,281,000 

Supplies and materials 566,000 611,000 782,000 171,000 

Equipment 2,917,000 310,000 222,000 -88,000 

Total, direct obligations 111,225,000 111,225,000 111,225,000 0 

Unobligated balance 0 0 0 0 

Total budget authority 111,225,000 111,225,000 111,225,000 0 

a/ In a separate justification document, the Office of Inspector General is requesting $10,000,000 for administrative expenses in fiscal year 2018. 

b/ The amounts included for 2016 reflect the annualized level provided by the Consolidated Appropriations Act, 2016 (P.L. 114-113). 

c/ The Limitation on Administration excludes $31.6 million in fiscal year 2016 that the RRB received in reimbursements from the Centers for Medicare and 

Medicaid Services (CMS) and others. Amounts for fiscal years 2017 and 2018 exclude $28.0 million and $28.3 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 2018. Note - A full-year 2017 appropriation for this account was not enacted at the time the 

budget was prepared. The amounts shown are in accordance with the following Public Laws: 114-223, 114-254 and 115-30. The Consolidated Appropriations 

Act, 2017 (P.L. 115-31) provided $113,500,000 for the Limitation on Administration. 

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

f/ This amount includes $547,200 for security provided by the Federal Protective Service. 

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

12 
 

 

 

 

 

 

 

SUMMARY OF CHANGES a/ 

Appropriation total 

FY 2018 estimate $111,225,000b/ 

FY 2017 level 111,225,000b/ 

Net change $0 

2017 Current (Base) 2018 Change from Base 

Budget Budget 

FTEs Authority FTEs Authority 

Increases: 

Built-in: 

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

Adjustments to average salary estimates ($381,000) 

January 2018 pay raise 1,211,000 

Grade/step increases 454,000 

Other compensation (awards and overtime) 339,000 

Subtotal, built-in salary and FTE increases	 837 $63,281,000 (39) ($1,150,000) 

2. Net change related to personnel benefits: 

Adjustment to previous estimates ($142,000) 

January 2018 pay raise 450,000 

Grade/step increases 169,000 

Other changes (health insurance, etc.) (155,000) 

Subtotal, built-in changes to benefits -- 23,186,000 -- (709,000) 

Subtotal, built-in compensation increases -- ($1,859,000) 

Program: 

1 Travel and transportation of persons -­ 682,000 -­ 153,000 

2. Transportation of things -­ 36,000 -­ 13,000 

3. Rental payments to GSA -­ 3,200,000 -­ 100,000 

4. Printing and reproduction -­ 256,000 -­ 31,000 

5. Consulting services -­ 405,000 -­ 229,000 

6. Other services -­ 13,368,000 -­ 1,281,000 

7. Supplies and materials -­ 611,000 -­ 171,000 

Subtotal, program increases	 $1,978,000 

Decreases: 

Program: 

1.	 Communications, utilities, and misc. charges -- 5,575,000 -- (31,000) 

2. Equipment -- 310,000 -- (88,000) 

Total decreases (119,000) 

Net change	 -- $0 

a/	 Corresponds to page 12 - Administrative Expenses. 

b/	 Reflects funding as reported in the President's Budget for Fiscal Year 2018. Note - A full-year 2017 appropriation for this 

account was not enacted at the time the budget was prepared. The amounts shown are in accordance with the following 

Public Laws: 114-223, 114-254 and 115-30. The Consolidated Appropriations Act, 2017 (P.L. 115-31) provided 

$113,500,000 for the Limitation on Administration. 

Note:	 Dollar amounts are rounded to the nearest thousand. 

13 
 

 

 

 

 

 

 

 

 

 

 

 

 

ADMINISTRATIVE EXPENSES 

Budget Authority by Strategic Goal 

Fiscal year 2016 Fiscal year 2017 Fiscal year 2018 

Limitation on Administration Actual Enacted Estimate 

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

Strategic goal: 

1. Customer service	 624 76 86,985,580 78 640 76 87,764,500 78 606 76 86,474,218 78 

2. Stewardship	 200 24 24,239,420 22 197 24 23,460,500 22 192 24 24,750,782 22 

Total, direct program obligations 824 111,225,000 837 111,225,000 798 111,225,000 

Unobligated balance 0 0 0 

Total budget authority	 824 111,225,000 837 111,225,000 798 111,225,000 

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

1. Provide excellent customer service. 

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

Note:	 A full-year 2017 appropriation for this account was not enacted at the time the budget was prepared. The amounts shown are in accordance 

with the following Public Laws: 114-223, 114-254 and 115-30. The Consolidated Appropriations Act, 2017 (P.L. 115-31) provided 

$113,500,000 for the Limitation on Administration. 

14 
 

 

 

 

 

STAFFING HISTORY
 

Actual Full-time Equivalent Employment
 

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 -12.7% 

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 837 c/ 13 1.6% 861 -50.7% 

2018 798 d/ -39 -4.7% 900 -53.0% 

a/	 Excludes staffing for the Office of the Inspector General 

b/	 Includes Special Management Improvement Fund FTEs for fiscal years 1994-1996 of 80, 58, 

30 and c/ Reflects an adjusted projection as of May 2017. 

d/	 Reflects the estimated staffing level in the President's proposed budget for fiscal year 2018. 

15 
 

 

 

Funding for Major Contracts 

Estimated 

Title and description FY 2018 

funding ($) 

Information Technology 

•	 Voice Communications System. Funding covers the costs for employee 

workstation changes, cable repairs, and wiring to maintain the Voice Over Internet 

Protocol (VoIP) system. 

•	 IT operations support and memberships. Requested funding includes contractual 

services for Tivoli storage, IBM operations support services and Gartner 

membership. 

•	 Help Desk Contract. Funding for help desk staff to augment RRB staff, and to 

move PC Equipment 

•	 License agreement. Funds are required to maintain the RRB’s Microsoft 

Enterprise License Agreement. 

•	 Disaster recovery. Funding will be used to support warm site operations for back 

up of mainframe and open architecture data. Also, included are two disaster 

recovery tests in accordance with FISMA requirements. 

•	 IT Security. Security authorization and continuous monitoring of RRB 

information systems. 

•	 Secure Wireless Office. Contractor services to support infrastructure. 

•	 Chief Information Officer Initiative. Executive council contract enables peer to 

peer communications such as one-on-one conversations and top-level roundtables, 

to Grow, Develop & Retain IT top talent. The membership allows other senior IT 

leaders to stay focused on Leadership Development and advances the team along a 

powerful pathway—designed to bring maximum value to the agency. This 

Pathways program combines thought leadership, strategies for success, and CIO 

mentoring and coaching in a unique learning environment. 

20,000 

263,300 

491,000 

350,000 

425,000 a/ 

115,500 

90,000 

42,000 

16 
 

 

 

 

 

Funding for Major Contracts 

Estimated 

Title and description FY 2018 

funding ($) 

Support of benefit program activities 

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

used to make disability determinations. 

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

reviews concerning benefit and claim matters and preparation of advisory 

medical opinions. 

Field service training. Contract funding will be used for training claims 

•	 representatives and supervisors and Network Team building meetings. 

•	 Customer satisfaction index. Contractor assistance will be used for 

administering the American Customer Satisfaction Index survey. 

•	 Clerical services. Temporary clerical services to assist with workloads in 

various field offices. 

•	 Other Services. Provides funding for payment of State wage match 

information. 

•	 Social Security. Provides funding for payment of the Death Master File. 

Financial management 

•	 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. 

•	 Financial Management Integration System (FMIS). Funding for continued 

operation and maintenance of FMIS and AgilQuest. 

Administrative support 

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

Records Administration 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. 

3,074,120 

592,382 

106,800 

41,000 

98,155 

12,000 

10,000 a/ 

35,883 a/ 

1,855,000 

270,000 a/ 

17 
 

 

 

 

 

Funding for Major Contracts 

Title and description 

• 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. 

• Equifax. Funding will be used to obtain access to the work number system for 

employment and income information. 

• E-Payroll and human resources services. Funding is required for contracted EPayroll, staff licenses and electronic human resources services provided by 

GSA. Also includes, increased cost associated with a new human resources 

system. 

• Field office support services. Funding is for field office reimbursable work 

authorizations (RWA) and health unit maintenance agreements. 

• Personnel identification system. Funding is required to obtain updated 

personnel identification cards that meet the Homeland Security Presidential 

Directive for secure identification for agency employees and contractors. The 

requested funding also includes leasing a credentialing station at the 

headquarters building. 

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

contracts. 

• Employee assistance program. The RRB provides professional assistance for 

employees with personal problems that adversely affect work performance. 

• Videoconferencing and transcription services. Funding will provide for 

videoconferencing services needed for hearing appeals. 

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

recruitment and hiring services, background investigations, as well as flexible 

spending accounts. 

• Learning Management System. Funding for RRB University/Cornerstone 

System which is the RRB in-house employee training system. 

• Public Debt. Payments will be made to the Bureau of Public Debt for changes 

of station and monthly administrative fees. 

Estimated 

FY 2018 

funding ($) 

525,000 

400,000 

572,509 a/ 

102,800 a/ 

90,000 a/ 

50,100 

41,300 

45,000 

155,000 a/ 

168,000 

20,000 a/ 

18 
 

Funding for Major Contracts 

Estimated 

Title and description FY 2018 

funding ($) 

• Shredding Services. Provides funding for secure and confidential document 25,000 

destruction. 

Facility management services 

• Federal Protective Service costs. Funding is required for protective services, 547,200 a/ 

billed by the Department of Homeland Security, Federal Protective Service. 

• Janitorial and Other Contracts. Funding is needed for janitorial, elevator, labor 1,539,550 

facilities, maintenance, and other contracts necessary for the maintenance and 

operation of the RRB headquarters building. 

• Building security. Funding is required for guard contract. 777,500 

___________ 

Agency total 12,951,099 

a/ Contractual services provided by other Federal Government agencies comprise $2,228,392 of the 

agency program total. 

19 
 

 

 

 

 

 

 

 

 

 

BUDGET AUTHORITY BY FUND
 

Railroad Retirement 

Program 

Fiscal year 2016 

actual amounts 

Fiscal year 

2017 

Fiscal year 

2018 

estimated 

Change, 

FY 2017 

to 

FY 2018 

Direct Program: 

Railroad Retirement Account 67,938,000 70,356,000 70,356,000 0 

Social Security Equivalent 

Benefit 

Account 

28,044,000 26,248,000 26,248,000 0 

Total, direct railroad retirement 

program obligations 95,982,000 96,604,000 96,604,000 0 

Railroad Unemployment and 

Sickness Insurance Program 

Direct Program: 

Railroad Unemployment 

Insurance 

Administration Fund 

15,243,000 14,621,000 14,621,000 0 

Total, direct railroad 

retirement, 

unemployment and sickness 

insurance obligations 

110,795,321 111,225,000 111,225,000 0 

Unobligated balance 

429,679 --­ --­ --­

Total, direct railroad 

retirement, 

unemployment and sickness 

insurance budget authority 

111,225,000 111,225,000 111,225,000 0 

Note: A full-year 2017 appropriation for this account was not enacted at the time the budget was prepared. The 

amounts shown are in accordance with the following Public Laws: 114-223, 114-254 and 115-30. The 

Consolidated Appropriations Act, 2017 (P.L. 115-31) provided $113,500,000 for the Limitation on 

Administration. 

20 
 

 

 

 

LIMITATION ON ADMINISTRATION
 

Financing 

Financing 

Fiscal year 2016 

actual 

Fiscal year 2017 

enacted 

Fiscal year 2018 

estimate 

Total, direct program obligations 

Unobligated balance 

Limitation 

$110,795,321 

429,679 

$111,225,000 

$111,225,000 

--­

$111,225,000 

$111,225,000 

--­

$111,225,000 

Relation of direct program obligations to outlays 

Obligations incurred, net 

Obligated balance, start of year 

Obligated balance, end of year 

Outlays from limitation 

111,225,000 

0 

(18,831,947) 

$92,393,053 

111,225,000 

18,831,947 

(18,831,947) 

$111,225,000 

111,225,000 

18,831,947 

(18,831,947) 

$111,225,000 

Note:	 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 2017 appropriation for this account was not enacted at the time the budget was prepared. 

The amounts shown are in accordance with the following Public Laws: 114-223, 114-254 and 115­

30. The Consolidated Appropriations Act, 2017 (P.L. 115-31) provided $113,500,000 for the 

Limitation on Administration. 

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 

2016 actual 2017 enacted 2018 estimate 

Direct program sources 

Available from benefit trust funds by 

Congressional appropriation $111,225,000 $111,225,000 $111,225,000 

Direct program uses 

Administrative expenses $110,795,321 $111,225,000 $111,225,000
 

Unobligated balance 429,679 --- --­

Total uses:	 $111,225,000 $111,225,000 $111,225,000 

Note: A full-year 2017 appropriation for this account was not enacted at the time the budget was prepared. 

The amounts shown are in accordance with the following Public Laws: 114-223, 114-254 and 115­

30. The Consolidated Appropriations Act, 2017 (P.L. 115-31) provided $113,500,000 for the 

Limitation on Administration. 

22 
 --- ---

 

 

LIMITATION ON ADMINISTRATION
 

Amounts Available for Obligation
 

Fiscal year 

2016 actual 

Fiscal year 

2017 enacted 

Fiscal year 

2018 estimate 

Appropriation $110,795,321 $111,225,000 $111,225,000 

Unobligated balance 429,679 

Total direct obligations a/ $111,225,000 $111,225,000 $111,225,000 

a/	 The RRB also received reimbursements totaling $31.6 million in fiscal year 2016 and expects to 

receive $28.0 million in fiscal year 2017, and $28.3 million in fiscal year 2018 from CMS and 

others. 

Note: A full-year 2017 appropriation for this account was not enacted at the time the budget was prepared. 

The amounts shown are in accordance with the following Public Laws: 114-223, 114-254 and 115­

30. The Consolidated Appropriations Act, 2017 (P.L. 115-31) provided $113,500,000 for the 

Limitation on Administration. 

23 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

APPROPRIATIONS HISTORY TABLE
 

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

2009 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

105,463,000 

109,073,000 

110,573,000 

112,239,000 

112,415,000 

111,739,000 

112,150,000 

119,918,000 

122,499,000 

111,225,000 

105,463,000 

109,073,000 

--­

--­

--­

--­

--­

--­

--­

105,463,000 

109,073,000 

--­

--­

--­

--­

--­

--­

--­

105,463,000 

109,073,000 

108,854,854 

108,649,264 

108,734,464 

110,300,000 

111,225,000 

111,225,000 

111,225,000 

a/ 

b/ 

c/ 

d/ 

e/ 

f/ 

g/ 

h 

i/ 

a/ Amount reflects funding made available by the Omnibus Appropriations Act, 2009 (P.L. 111-8). 

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

(P.L. 111-117). 

c/ 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). 

d/ 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). 

e/ 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). 

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

(P.L. 113-76). 

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

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

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

113). 

i/ A full-year 2017 appropriation for this account was not enacted at the time the budget was prepared. 

The amounts shown are in accordance with the following Public Laws: 114-223, 114-254 and 115­

30. The Consolidated Appropriations Act, 2017 (P.L. 115-31) provided $113,500,000 for the 

Limitation on Administration. 

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 

2006 582,995 35,617 7,794 6,065 94,108 7,426,518 4,838 

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 (est) 520,400 32,000 6,000 3,000 74,000 6,730,000 6,000 

2018 (est) 516,800 31,000 5,000 3,000 73,000 6,680,000 6,000 

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 

2006 236,000 11,186 64,697 53,781 25,866 155,525 133,519 

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 225,000 (est) 24,371 145,605 120,134 20,219 131,575 111,933 

2017 (est) 221,000 26,000 142,000 117,000 21,000 129,000 110,000 

2018 (est) 217,000 20,000 113,000 93,000 19,000 120,000 102,000 

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 2018
 

Railroad Retirement Board
 

27 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board - Fiscal Year 2018 Performance Plan 

TABLE OF CONTENTS
 

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

Strategic Goal II: 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
 

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

Strategic Goal I: Provide Excellent Customer Service............................................................ 31 

Strategic Objective: Pay benefits timely ........................................................................... 31 

Strategic Objective: Provide a range of choices in service delivery methods................... 32 

and Agency Resources ....................................................................................................... 33 

recorded, and reported appropriately............................................................................ 33
 

Strategic Objective: Ensure the accuracy and integrity of benefit programs .................... 33 

Strategic Objective: Ensure effectiveness, efficiency, and security of operations............ 34 

National Railroad Retirement Investment Trust........................................................... 37
 

Exhibit 1: Performance Plan - FY 2018 .................................................................................. 39
 

28 
 

 

 

 

 

 

 

 

 

Railroad Retirement Board - Fiscal Year 2018 Performance Plan 

Introduction 

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

2018 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 2014 - 2018 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 2018. 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 2018 for each 

performance goal, at the President’s proposed budget level of $111,225,000, 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 2018, 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 2018 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. 

30 
 

 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board - Fiscal Year 2018 Performance Plan 

Strategic Goal I: 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 2018, we plan to 

allocate $87,764,500 and 640 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. 

Our Customer Service Plan includes customer 

service timeliness standards for paying benefits. 

Through September 30, 2016, 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 342,980 

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 2016 (through 9/30/2016) 

•	 Retirement applications: 94.5% 

(target: 95.0%) 

•	 Survivor applications: 96.1% 

(target: 95.4%) 

•	 Disability applications/payments: 

56.1% 

(target: 82.6%) 

•	 RUIA applications/claims: 99.9% 

(target: 99.4%) 

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. 

31 
 

 

 

Railroad Retirement Board - Fiscal Year 2018 Performance Plan 

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, the ERSNet project has developed and implemented a total of 27 automated services 

for employers to notify, request information or provide a means for correcting and 

transmitting data electronically to and from the RRB. 

Currently, we are working to develop an additional notification for employers that provides 

information about employees who are deceased with Form G-73a.1, Notice of Death. We are 

also developing Form RL-5a, Notice of Annuity Award, which notifies employers when their 

former employees begin to receive their Railroad Retirement annuities. By making these 

notices available on-line, employers will have secure access to the information needed to 

maintain their own benefit payments. This phase will add two additional services to the 

system. 

In fiscal year 2018, the RRB plans to create a process to add the G-251a, Job Information 

Form, to ERSNet. This form requests information from employers about the duties performed 

by employees who file for disability annuities. We will also develop an on-line process to 

allow employers to make corrections to their own contact information with the Form G-117a, 

Designation of Contact Officials. Completion of these services will add two additional 

services to the system. 

32 
 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board - Fiscal Year 2018 Performance Plan 

Strategic Goal II: 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 2018, we plan to allocate 

$23,460,500 and 197 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 commitment, 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 2016, we released our Performance and Accountability Report for fiscal year 

2016. The RRB’s OIG did not express an opinion (disclaimer) on the RRB’s 2016 financial 

statements, which were included in that report. The OIG reported a material weakness in the 

RRB’s financial reporting, and identified the agency’s control environment as a new material 

weakness. The RRB disagrees with the control environment material weakness cited by the 

OIG in fiscal year 2016. Moreover, the RRB believes that, due to insufficient evidence to 

support the assertion, the cited material weakness is 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 

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

goal, we will: 

33 
 

 

 

 

 

 

 

 

 

Railroad Retirement Board - Fiscal Year 2018 Performance Plan 

• 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, $1,588,723 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 PorfoliStat categories 

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

performance management of its IT. 

34 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board - Fiscal Year 2018 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. 

Strategic Management of Human Capital – Like many agencies, the RRB has an aging 

workforce. About 50 percent of our employees have 20 or more years of service and over 

28 percent of the current workforce will be eligible for retirement by fiscal year 2018. To 

prepare for the expected turnover, the agency is placing increased emphasis on strategic 

management of human capital. Each organization has completed workforce planning 

documents that identify the current staffing levels, projected attrition and planned hiring 

through fiscal year 2018, subject to available funding. A new methodology is currently being 

developed to identify potential areas of skills and knowledge gaps and is planned to be 

implemented within the Learning Management System (LMS). This methodology will 

incorporate job analysis of agency positions to identify critical competencies and identify skill 

gaps within our current employee base. 

The agency has been able to utilize the re-employment of retirees to allow retirees under the 

Civil Service Retirement System and the Federal Employees Retirement System to be 

temporarily rehired without losing entitlement to their retirement annuities under Section 

1122(a) of Public Law 111-84, which amended sections 8344 and 8468 of Title 5 of the 

United States Code. The agency has been able to rehire several annuitants on a temporary 

basis to assist in areas that have knowledge gaps due to attrition. 

35 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board - Fiscal Year 2018 Performance Plan 

The RRB is also devoting more attention and resources to training and has provided 

meaningful training programs for our employees. We have offered courses in the areas of 

performance management, and managerial and supervisory development, and we recently 

provided negotiation training and “train the trainer” sessions and Microsoft Office training for 

employees. We also make use of technology in this area, utilizing our on-line presentation 

facility, RRBVision, which allows employees to view training, including a video component, 

in an online format. In addition, all field managers now have ready access to the latest 

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

training of experienced field staff. Lastly, we continue to implement a new internet-based 

software package – Learning Management System (LMS), which effectively formalizes all 

aspects of training for all agency employees, while also providing self-assessments to the 

student and feedback to supervisors on their progress. These initiatives are particularly useful 

to employees and managers in the agency’s field offices. 

The Federal Employee Viewpoint Survey (FEVS) provides our employees the opportunity to 

influence change by submitting feedback about their work environment, leadership, and many 

other aspects of our organization. We were pleased that of the 862 employees invited to 

participate, 481 completed the survey, for a response rate of 56% (compared to a governmentwide response rate of 50%). Forty eight survey items increased since 2014 while only 15 

survey items decreased since 2014. We are also pleased to report that our agency ranked in the 

top ten (out of 37 departments/large agencies) in the areas of Global Satisfaction (7th) and 

Employee Engagement (10th). Employee engagement is a leading indicator of performance 

and is a key objective of the People and Culture goal of the President’s Management Agenda. 

Improving Performance and Accountability – The RRB will take steps to ensure that: 

• Programmatic goals continue to be aggressive, realistic and accurately measured, 

• Program improvement plans result in meaningful outcome improvements, 

• Managers are accountable for achieving goals and improvement plans, and 

• Program performance plans and outcomes are transparent. 

Systems Modernization – The RRB has taken significant strategic steps to improve its 

computer processes, first by moving to a relational database environment, and next by 

optimizing the data that resides in its databases. The next strategic step is to take advantage of 

the optimized relational database structure to modernize the agency’s computer systems and 

automate manual processes that support such systems. 

The data optimization process and the agency’s own analysis have pointed out opportunities 

for modernization. Because of the complexity and size of this project, we are taking a multiyear / multi-phased approach. The underlying principle is that modernization is not reengineering a particular application or system; it involves a holistic approach to building an 

information infrastructure to support the RRB’s critical business processes. 

36 
 

 

 

 

 

 

Railroad Retirement Board - Fiscal Year 2018 Performance Plan 

In addition to modernizing the agency’s mainframe based computer programs, there are 28 

old LAN-based computer programs in need of modernization. Although functioning, these 

outdated systems are becoming more difficult to maintain under the newer server platforms 

and operating systems. 

By modernizing its systems, the RRB will ultimately decrease the time and cost to develop 

and operate the systems, allowing us to focus on new initiatives that will improve business 

practices and control costs. 

RRB staff will be equipped with modern tools and technologies to do their jobs in the most 

efficient and effective manner that leads to sustained customer satisfaction in the railroad 

community we serve. 

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. 

Information Security Program - The Railroad Retirement Board (RRB) continues to 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 the Office of Management and Budget (OMB) Memorandum M-14-03, Enhancing 

the Security of Federal Information and Information Systems, which aggressively addresses 

gaps in its information security program. RRB has also enrolled in the Department of 

Homeland Security (DHS) Continuous Diagnostic and Mitigation (CDM) Program to improve 

its ISCM strategy pertaining to vulnerability assessment, hardware and software asset 

management, configuration management, and privileged account management. RRB has also 

enrolled in the DHS EINSTEIN 3 Accelerated (E3A) program, which ensures that all of the 

Domain Name System (DNS) and Simple Mail Transfer Protocol (SMTP) are monitored. 

RRB increased its Cross-Agency Priority (CAP) Goal target from three in Fiscal Year (FY) 

2015 to four of the nine capabilities in FY 2016. RRB did not met the CAP goal target for 

Hardware Asset Management in FY 2016 as it did in FY 2015. However, RRB met the target 

for Secure Configuration Management and Other Defenses, and improved in Vulnerability 

Management and Malware Defense. RRB also demonstrated improvement in its 

implementation for Personal Identity Verification (PIV) usage for unprivileged and privileged 

users although these did not meet the CAP Goal target. 

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. 

37 
 

 

Railroad Retirement Board - Fiscal Year 2018 Performance Plan 

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. 

38 
 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2018 Performance Plan 

2013 

Actual 

($108.7m) 

2014 

Actual 

($110.3m) 

2015 

Actual 

( $111.225m) 

2016 

Actual 1/ 

($111.225m) 

2017 

Enacted 

($111.225m) 

2018 

President’s 

Proposed 

($111.225m) 

STRATEGIC GOAL I: Provide Excellent Customer Service 

Strategic Objective: Pay benefits timely. 

Goal leader for objectives I-A-1 through I-A-5; I-A-7 and I-A-8: Michael Tyllas, Director of Programs 

Goal leader for objective I-A-6: Dan Fadden, Director of Field Service 

Goal leader for objective I-A-9: Rachel L. Simmons, Director of Hearings and Appeals 

I-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) 

95.6% 95.2% 95.8% 94.0% 95.0% 94.0% 

1-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) 

97.0% 95.3% 96.5% 96.3% 95.0% 94.0% 

I-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% 96.1% 94.3% 96.0% 94.0% 94.0% 

39 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2018 Performance Plan 

2013 

Actual 

($108.7m) 

2014 

Actual 

($110.3m) 

2015 

Actual 

( $111.225m) 

2016 

Actual 1/ 

($111.225m) 

2017 

Enacted 

($111.225m) 

2018 

President’s 

Proposed 

($111.225m) 

I-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) 

95.4% 95.5% 95.5% 95.1% 94.5% 93.5% 

I-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) 

98.8% 98.4% 98.1% 98.0% 98.0% 97.0% 

I-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% 99.5% 99.0% 

I-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) 

72.5% 42.8% 31.0% 17.4% 70.0% 

Due to 

ongoing 

process 

improvements, 

RRB will rebaseline this 

metric for 

2018. 2/ 

I-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) 

95.1% 95.6% 95.8% 92.6% 94.5% 93.5% 

I-A-9. Reduce the number of days elapsed 

between the date the appeal is filed and a 

decision is rendered. (Measure: average 

elapsed days) 

316 270 261 239 240 250 

40 
 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2018 Performance Plan 

2013 

Actual 

($108.7m) 

2014 

Actual 

($110.3m) 

2015 

Actual 

( $111.225m) 

2016 

Actual 1/ 

($111.225m) 

2017 

Enacted 

($111.225m) 

2018 

President’s 

Proposed 

($111.225m) 

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

Goal leader: Michael Tyllas, Director of Programs 

I-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 

193/ 

services available 

20 

services 

available 

I-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: 

87.0% 98.3% 99.0% 99.0% 99.0% 99.0% 

21 Internet 

services 

available 

26 Internet 

services 

available 

27 Internet 

services 

available 

27 Internet 

services 

available 

29 Internet services 

available4/ 

31 Internet 

services 

available 

STRATEGIC GOAL II: 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 

II-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.) 

97.7% 91.3% 99.6% 90.73% 85.00% 85.00% 

41 
 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2018 Performance Plan 

2013 

Actual 

($108.7m) 

2014 

Actual 

($110.3m) 

2015 

Actual 

( $111.225m) 

2016 

Actual 1/ 

($111.225m) 

2017 

Enacted 

($111.225m) 

2018 

President’s 

Proposed 

($111.225m) 

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

Goal leader II-B-1(a)(b) and II-B-3, 4, and 5: Michael Tyllas, Director of Programs 

Goal leader II-B-2(a): Dan Fadden, Director of Field Service 

Goal leader II-B-2(b): Micheal Pawlak, Director of Unemployment Payment Support Division 

II-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: 

99.84% 99.52% 99.72% 99.92%6/ 99.60% 99.50% 

99.70% 100% 99.91% 99.88%6/ 99.60% 99.50% 

II-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 

98.99% 99.83% 99.23% 99.36% 99.60% 99.50% 

99.42% 99.52% 99.40% 99.94% 99.50% 99.50% 

II-B-3. Overall Initial Disability 

Determination Accuracy. (Measure: % of 

Case Accuracy) 

New 

Indicator for 

FY 2015 

98.6%7/ 95.8%7/ N/A 96.00% 96.00% 

II-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%) 

0.70%8/ 0.59%8/ 0.58%8/ N/A 1.00% 1.00% 

II-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.) 

$4.90: 

$1.00 

$5.20: 

$1.00 

$4.49: 

$1.00 

$4.18: 

$1.00 

$3.859/: 

$1.00 

$3.859/: 

$1.00 

42 
 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2018 Performance Plan 

2013 

Actual 

($108.7m) 

2014 

Actual 

($110.3m) 

2015 

Actual 

( $111.225m) 

2016 

Actual 1/ 

($111.225m) 

2017 

Enacted 

($111.225m) 

2018 

President’s 

Proposed 

($111.225m) 

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

Goal leader: Ram Murthy, Chief Information Officer 

II-C-1. Complete modernization of RRB processing systems 

in accordance with long-range planning goals. (Measure: 

Meet target dates for the project. Yes/No) 

Yes. The 

conversion of 

the EDM 

database was 

completed in 

January 2013. 

The design 

phase of the 

Payment Rate 

and 

Entitlement 

History 

(PREH) 

database was 

completed in 

December 

2013. 

No. The 

target date 

for PREH 

conversion is 

delayed due 

to higher 

priority 

project 

(TPAM) 

mandated by 

US Treasury. 

New target: 

April 30, 

2015 

Yes. The 

target date for 

the RUIA XR 

modernization 

and Medicare 

Database 

conversion has 

been met. 

PREH 

conversion is 

delayed due to 

staff working 

on higher 

priority project 

(the Disability 

Program 

Improvement 

Plan). The 

new target date 

is September 

30, 2016. 

No. The 

modernization 

of the Tax 

Database will 

now be 

incorporated 

in the multiyear 

Mainframe 

Applications 

Reengineering 

project. 

Project 

complete. 

Project 

complete. 

II-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 

New 

Performance 

Goal for FY 

2016 

100% 85% 85% 

43 
 

 

 

 

Railroad Retirement Board 

FY 2018 Performance Plan 

2013 

Actual 

($108.7m) 

2014 

Actual 

($110.3m) 

2015 

Actual 

( $111.225m) 

2016 

Actual 1/ 

($111.225m) 

2017 

Enacted 

($111.225m) 

2018 

President’s 

Proposed 

($111.225m) 

II-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 

New 

Performance 

Goal for FY 

2016 

New 

Performance 

Goal for FY 

2016 

New 

Performance 

Goal for FY 

2016 

98.7% 

Continuous 

availability 

target: 

99.0% 

Continuous 

availability 

target: 

99.0% 

b) Hours of 

outage allowed 

per month 

New 

Performance 

Goal for FY 

2016 

New 

Performance 

Goal for FY 

2016 

New 

Performance 

Goal for FY 

2016 

9.38 

Hours of outage 

allowed per 

month: 

7 hours 

Hours of 

outage 

allowed per 

month: 

7 hours 

II-C-4. Innovate – Design for Modularity. Strategy for 

Continuity of Operations Improvements. 

New 

Performance 

Goal for FY 

2016 

New 

Performance 

Goal for FY 

2016 

New 

Performance 

Goal for FY 

2016 

No 

Implement 

automatic 

failover of email 

system to 

alternate facility 

Continue 

working on 

application of 

HTTPS-only 

standard to 

www.rrb.gov 

New New New 

II-C-5. Innovate – Adopt New Technologies. Percentage of 

investments that evaluated cloud alternatives. 

Performance 

Goal for FY 

Performance 

Goal for FY 

Performance 

Goal for FY 50% 98.5% 98.5% 

2016 2016 2016 

II-C-6. Protect – Email Data Loss Prevention. Percentage New New New 

of externally bound emails and their attachments 

automatically encrypted that contain personally identifiable 

Performance 

Goal for FY 

Performance 

Goal for FY 

Performance 

Goal for FY 99.82% 99% 99% 

or credit card information 2016 2016 2016 

II-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 

New 

Performance 

Goal for FY 

2016 

74% 

Unprivileged Network 

Users ≥ 85% 

Privileged Network 

Users 100% 

Unprivileged 

Network Users ≥ 

85% 

Privileged Network 

Users 100% 

44 
 

 

 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2018 Performance Plan 

2013 

Actual 

($108.7m) 

2014 

Actual 

($110.3m) 

2015 

Actual 

( $111.225m) 

2016 

Actual 1/ 

($111.225m) 

2017 

Enacted 

($111.225m) 

2018 

President’s 

Proposed 

($111.225m) 

Strategic objective: Effectively carry out responsibilities with respect to the National Railroad Retirement Investment Trust. 

Goal leader: (Vacant)General Counsel 

II-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, 2016, unless otherwise noted. 2/ 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. 

3/ The goal for planned electronic options offered to our customers for FY 2017 is reduced due to higher priority projects. 4/ The goal for planned ERSNet Services for FY 2017 is reduced due to contracted staffing changes. 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, 2016. 7/ FY 2014 performance was used to establish a baseline. No performance goal was established for FY 2015. 8/	 Actual IP rates for FY 2013, 2014, and 2015 have been adjusted to accurately show that fiscal year data reviewed matches the fiscal year data reported. 

9/	 Our annual goals for FY 2017 and FY 2018 have been adjusted to more closely match the defined performance goal and to be more representative of our current 

return on investment. 

Note: A full-year 2017 appropriation for this account was not enacted at the time the budget was prepared. The amounts shown are in accordance with the following 

Public Laws: 114-223, 114-254 and 115-30. The Consolidated Appropriations Act, 2017 (P.L. 115-31) provided $113,500,000 for the Limitation on Administration. 

45 
Page Intentionally Blank 

46
 
 

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, $22,000,000, 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. 

Note.—A full-year 2017 appropriation for this account was not enacted at the time the budget 

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

Continuing and Security Assistance Appropriations Act, 2017 (P.L. 114-254). The amounts 

included for 2017 reflect the annualized level provided by the continuing resolution. 

Military Construction, Veterans Affair, and Related Agencies Appropriations Act, 2017, and 

Zika Response and Preparedness Act (P.L. 114-223) provided continuing appropriations from 

October 1 through December 9, 2016. P.L. 114-254 provided continuing appropriations from 

December 10, 2016 through April 28, 2017. Making Further Continuing Appropriations for 

Fiscal Year 2017, and for Other Purposes (P.L. 115-30) provided continuing appropriations 

from April 29 through May 5, 2017. The Consolidated Appropriations Act, 2017 (P.L. 115-31) 

provided $25,000,000 funding for the Dual Benefits Payments Account. 

47 
 

 

 

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, 

$22,000,000, 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 $22,000,000 to the Dual Benefits 

Payments Account for payment of vested 

dual benefits. Of the $22,000,000, it is 

estimated that $2 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. 

48 
 

 

 

 

 

 

Authorizing Legislation 

2017 2018 

Current Appropriation 

Legislation Authorized estimate Authorized request 

Railroad Retirement Act of 1974 

as amended: 

Sections 15(d)(1), 7(c)(1), and 

15(i)(2) 

Dual Benefits Payments Indefinite $29,000,000 a/ Indefinite $22,000,000 

a/	 A full-year 2017 appropriation for this account was not enacted at the time the budget was 

prepared. The amounts shown are in accordance with the following Public Laws: 114-223, 

114-254 and 115-30. The Consolidated Appropriations Act, 2017 (P.L. 115-31) provided 

$25,000,000 for the Dual Benefits Payments Account. 

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." 

49 
 

 

 

 

Appropriations History Table 

Dual Benefits Payments Account a/ 

Year 

Budget estimate to 

the Congress House allowance Senate allowance 

Appropriation/ 

continuing 

resolution 

2009 

2010 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

72,000,000 

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 

72,000,000 

64,000,000 

--­

--­

--­

--­

--­

--­

--­

72,000,000 

64,000,000 

--­

--­

--­

--­

--­

--­

--­

72,000,000 

64,000,000 

56,886,000 

50,914,950 

50,914,950 

39,000,000 

34,000,000 

29,000,000 

29,000,000 

b/ 

c/ 

d/ 

e/ 

f/ 

g/ 

h/ 

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/ A full-year 2017 appropriation for this account was not enacted at the time the budget was prepared. The 

amounts shown are in accordance with the following Public Laws: 114-223, 114-254 and 115-30. The 

Consolidated Appropriations Act, 2017 (P.L. 115-31) provided $25,000,000 for the Dual Benefits Payments 

Account. 

50 
 

Funding Sources 

The proposed fiscal year 2018 appropriation language calls for funding from the following 

source. 

Funding sources Budget authority a/ 

General revenue $22,000,000 

[Of the $22,000,000 to be funded 

from general revenue, $2,000,000 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 ...." 

51 
 

 

 

 

 

 

 

 

 

Dual Benefits Payments Account 

Amounts Available for Obligation 

Fiscal year Fiscal year Fiscal year 

2016 Actual 2017 2018 Estimate 

Appropriation, excluding 2% contingency 

reserve (general funds of the Treasury) $29,000,000 $29,000,000 $22,000,000 

Transfer from other accounts (Federal 

Payments to the Railroad Retirement 

Accounts) 2,000 a/ 2,000 a/ 2,000 a/ 

Subtotal:	 $29,002,000 $29,002,000 $22,002,000 

Less: 

Unobligated balance $1,453,063 --- --­

Total obligations (payments to beneficiaries) $27,548,937 $29,002,000 $22,002,000 

a/ This amount represents this account’s share of interest on uncashed checks. 

Note: A full-year 2017 appropriation for this account was not enacted at the time the budget was 

prepared. The amounts shown are in accordance with the following Public Laws: 114-223, 

114-254 and 115-30. The Consolidated Appropriations Act, 2017 (P.L. 115-31) provided 

$25,000,000 for the Dual Benefits Payments Account. 

52 
 

 

 

 

Explanation of 2018 Request 

This is the 43rd 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. 

53 
 

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 2018 appropriation language provides for 12 monthly payments to this 

account from general revenues and specifies that $22,000,000 be appropriated for benefits. 

In addition, the proposed language provides that an additional amount not to exceed 

2 percent of the $22,000,000 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. 

54 
 

 

 

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 2017 appropriation for this account was not enacted at the time the budget 

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

Continuing and Security Assistance Appropriations Act, 2017 (P.L. 114-254). The amounts 

included for 2017 reflect the annualized level provided by the continuing resolution. 

Military Construction, Veterans Affair, and Related Agencies Appropriations Act, 2017, and 

Zika Response and Preparedness Act (P.L. 114-223) provided continuing appropriations from 

October 1 through December 9, 2016. P.L. 114-254 provided continuing appropriations from 

December 10, 2016 through April 28, 2017. Making Further Continuing Appropriations for 

Fiscal Year 2017, and for Other Purposes (P.L. 115-30) provided continuing appropriations 

from April 29 through May 5, 2017. The Consolidated Appropriations Act, 2017 (P.L. 115­

31) provided $150,000 funding for the Federal Payments to the Railroad Retirement Accounts. 

55 
 

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, 2019, 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. 

56 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Authorizing Legislation 

2017 2018 

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." 

Appropriations History Table 

Fiscal Budget estimate House Senate 

Year to the Congress allowance allowance Appropriation 

2009 $150,000 $150,000 $150,000 $150,000 

2010 150,000 150,000 150,000 150,000 

2011 150,000 150,000 150,000 150,000 

2012 150,000 --­ --­ 150,000 

2013 150,000 --­ --­ 150,000 

2014 150,000 --­ --­ 150,000 

2015 150,000 --­ --­ 150,000 

2016 150,000 --­ --­ 150,000 

2017 150,000 --­ --­ 150,000 a/ 

2018 150,000 --­ --­

a/	 A full-year 2017 appropriation for this account was not enacted at the time the budget 

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

114-223, 114-254 and 115-30. The Consolidated Appropriations Act, 2017 (P.L. 

115-31) provided $150,000 in funding for this account. 

Note:	 Amounts appropriated are available for 2 years. 

57 
 

 

 

 

 

 

 

 

 

 

 

Federal Payments to the Railroad Retirement Accounts 

(Appropriations for Uncashed Checks) 

Amounts Available for Obligation 

Fiscal year Fiscal year Fiscal year 

2016 actual 2017 estimate 2018 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 292,033 200,000 200,000 

Total obligations $7,967 $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 2018 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 2018 provides that funds would be available for 

2 years, through September 30, 2019. 

58 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RAILROAD RETIREMENT BOARD
 

Summary of Full-Time Equivalent Employment
 

Series Rank 

FY 2016 

actual 

FY 2017 

estimate 

FY 2018 

estimate 

Executive Level III 1 1 1 

Level IV 2 2 2 

Senior Executive Service ES-00 7 7 7 

General Schedule/Management GS/GM-15 29 34 32 

GS/GM-14 54 61 58 

GS/GM-13 106 96 92 

GS-12 190 204 194 

GS-11 126 115 110 

GS-10 116 121 115 

GS-9 53 56 53 

GS-8 33 36 34 

GS-7 51 56 53 

GS-6 7 7 7 

GS-5 32 9 9 

GS-4 17 32 31 

GS-3 0 0 0 

GS-2 0 0 0 

Wage Board All Levels 0 0 0 

Combined Total 824 837 798 

Positions in the Office of Inspector General are excluded. 

59 
 

AVERAGE ES AND GS/GM SALARIES AND BENEFITS 

AND GS/GM GRADES 

FY 2016 FY 2017 FY 2018 

actual estimate estimate 

Average ES salary $176,605 $184,038 $185,418
 

Average ES benefits 55,421 59,171 58,166
 

Total, ES 232,026 243,209 243,584 

Average GS/GM salary $84,262 $85,064 $87,746
 

Average GS/GM benefits 26,443 27,349 27,526
 

Total, GS/GM 110,705 112,413 115,272 

Average GS/GM grade 12.4 12.4 12.5 

RAILROAD RETIREMENT BOARD
 

EMPLOYEE RELOCATION EXPENSES
 

Past year Current year Budget year 

FY 2016 FY 2017 FY 2018 

Total $37,548 $342,000 $242,000 

60 
 

 

 

LEGISLATIVE PROPOSALS FOR FY 2018
 

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. 

61 
 

 

 

 

 

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 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. 

62