RAILROAD RETIREMENT BOARD
	

JUSTIFICATION OF 

BUDGET ESTIMATES
	

FISCAL YEAR 2020
	
 

 

 

 

 

 

 

 

 

 

 

 

UNITED STATES OF AMERICA
 

RAILROAD RETIREMENT BOARD
 

844 NORTH RUSH STREET
 

CHICAGO, ILLINOIS 60611-1275
 

BOARD MEMBERS: 

ERHARD R. CHORLÉ, CHAIRMAN
 

JOHN BRAGG, LABOR MEMBER
 

THOMAS R. JAYNE, MANAGEMENT MEMBER
 

The Honorable Nancy Pelosi 

Speaker of the House of Representatives 

Washington, D.C. 20515 

Dear Madam Speaker: 

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

is our Congressional Justification of Budget Estimates for Fiscal Year 2020, which includes our 

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

with the President’s proposals. The President’s proposed budget provides for $116,225,000 for 

the Railroad Retirement Board’s (RRB) administrative expenses in fiscal year 2020. We 

estimate that the proposed funding will provide for a staffing level of 744 full-time equivalent 

staff years (FTEs) and also provide Information Technology (IT) investments of $2,725,000 of 

which $285,000 is designated for cybersecurity, $250,000 to upgrade our core financial 

management system, $500,000 for Records Management System and $1,690,000 toward 

furthering efforts to modernize our legacy benefit systems. 

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

effectively through focused workforce planning and talent management efforts combined with 

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

the agency’s mission. As such, the agency’s request level reflects the direct funding of 

$137,216,000 to provide for 850 FTEs. Budget projections show that at the President’s proposed 

budget level of $116,225,000, the agency would need to evaluate all available options to include 

attrition, buyouts, furloughs, and reduction in force to reach 744 FTEs, which is 106 FTEs less 

than what is needed to sustain the agency’s mission essential functions. 

The agency’s request level of $137,216,000 reflects the current estimate of $11,861,800 in noyear funding for our ongoing IT Modernization Program. The President’s proposed budget 

provides $2,725,000 funding for IT Modernization Program; however, at this level the agency 

would be unable to fund a significant number of mission critical IT investments already in 

progress. The IT investments initiatives that would remain unfunded include: components of the 

Legacy Systems Modernization Services, Enterprise Infrastructure Solutions, Citizen 

Services/Paperless Processing, and Records Management System. The continued funding for 

RRB’s ongoing IT Modernization Program is critical to implementing the President’s 

Management Agenda. RRB’s IT Modernization Program includes reengineering business 

processes and streamlining operations using effective and efficient IT solutions; implementing 

shared and cloud services; deploying citizen-focused self-service digital solutions; as well as 

ensuring data security, confidentiality, integrity, and availability. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$16,000,000 to fund the continuing phase-out costs for vested dual benefits. An additional 

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

for the year exceed the amount available for payments. 

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

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

through September 30, 2021. All of the amounts presented in this letter exclude funding for the 

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

information. 

The President's Budget includes four legislative proposals. The first would amend the Railroad 

Retirement Act to allow the RRB to utilize various hiring authorities available to other Federal 

agencies. The second would amend the Railroad Retirement Act to allow the RRB to utilize 

student and recent graduate hiring authorities available to other Federal agencies. The third 

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

include a felony charge for individuals committing fraud against the Agency. The fourth would 

amend the Social Security Act to provide access for the RRB to the National Directory of New 

Hires and waive the customary fee for the RRB. 

Thank you for your support of this proposed budget. 

Sincerely, 

Original signed 

Erhard R. Chorlé 

Chairman 

March 18, 2019 

Original signed 

John Bragg 

Labor Member 

March 18, 2019 

Original signed 

Thomas R. Jayne 

Management Member 

March 18, 2019 

Enclosure 

cc: The Honorable, Russell Vought, Acting Director 

Office of Management and Budget 
 

 

 

 

 

 

 

 

UNITED STATES OF AMERICA
 

RAILROAD RETIREMENT BOARD
 

844 NORTH RUSH STREET
 

CHICAGO, ILLINOIS 60611-1275
 

BOARD MEMBERS: 

ERHARD R. CHORLÉ, CHAIRMAN
 

JOHN BRAGG, LABOR MEMBER
 

THOMAS R. JAYNE, MANAGEMENT MEMBER
 

The Honorable Michael R. Pence 

President of the Senate 

Washington, D.C. 20510 

Dear Mr. President: 

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

is our Congressional Justification of Budget Estimates for Fiscal Year 2020, which includes our 

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

with the President’s proposals. The President’s proposed budget provides for $116,225,000 for 

the Railroad Retirement Board’s (RRB) administrative expenses in fiscal year 2020. We 

estimate that the proposed funding will provide for a staffing level of 744 full-time equivalent 

staff years (FTEs) and also provide Information Technology (IT) investments of $2,725,000 of 

which $285,000 is designated for cybersecurity, $250,000 to upgrade our core financial 

management system, $500,000 for Records Management System, and $1,690,000 toward 

furthering efforts to modernize our legacy benefit systems. 

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

effectively through focused workforce planning and talent management efforts combined with 

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

the agency’s mission. As such, the agency’s request level reflects the direct funding of 

$137,216,000 to provide for 850 FTEs. Budget projections show that at the President’s proposed 

budget level of $116,225,000, the agency would need to evaluate all available options to include 

attrition, buyouts, furloughs, and reduction in force to reach 744 FTEs, which is 106 FTEs less 

than what is needed to sustain the agency’s mission essential functions. 

The agency’s request level of $137,216,000 reflects the current estimate of $11,861,800 in noyear funding for our ongoing IT Modernization Program. The President’s proposed budget 

provides $2,725,000 funding for IT Modernization Program; however, at this level the agency 

would be unable to fund a significant number of mission critical IT investments already in 

progress. The IT investments initiatives that would remain unfunded include: components of the 

Legacy Systems Modernization Services, Enterprise Infrastructure Solutions (EIS), Citizen 

Services/Paperless Processing, and Records Management System. The continued funding for 

RRB’s ongoing IT Modernization Program is critical to implementing the President’s 

Management Agenda. RRB’s IT Modernization Program includes reengineering business 

processes and streamlining operations using effective and efficient IT solutions; implementing 

shared and cloud services; deploying citizen-focused self-service digital solutions; as well as 

ensuring data security, confidentiality, integrity, and availability. 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

$16,000,000 to fund the continuing phase-out costs for vested dual benefits. An additional 

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

for the year exceed the amount available for payments. 

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

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

through September 30, 2021. All of the amounts presented in this letter exclude funding for the 

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

information. 

The President's Budget includes four legislative proposals. The first would amend the Railroad 

Retirement Act to allow the RRB to utilize various hiring authorities available to other Federal 

agencies. The second would amend the Railroad Retirement Act to allow the RRB to utilize 

student and recent graduate hiring authorities available to other Federal agencies. The third 

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

include a felony charge for individuals committing fraud against the Agency. The fourth would 

amend the Social security Act to provide access for the RRB to the National Directory of New 

Hires and waive the customary fee for the RRB. 

Thank you for your support of this proposed budget. 

Sincerely, 

Original signed 

Erhard R. Chorlé 

Chairman 

March 18, 2019 

Original signed 

John Bragg 

Labor Member 

March 18, 2019 

Original signed 

Thomas R. Jayne 

Management Member 

March 18, 2019 

Enclosure 

cc: The Honorable, Russell Vought, Acting Director 

Office of Management and Budget 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

JUSTIFICATION OF BUDGET ESTIMATES 

FISCAL YEAR 2020 

TABLE OF CONTENTS 

Page 

Number 

AGENCY OVERVIEW 

Summary of Appropriation Estimates for Fiscal Years 2019 and 2020................... 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 

Legislation........................................................................................ 11 

Budget Authority by Object Classification................................................... 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 2020 Performance Plan......................................................... 27
 

DUAL BENEFITS PAYMENTS ACCOUNT 

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

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

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

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

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

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

Explanation of 2020 Request................................................................ 55
 

FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT ACCOUNTS 

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

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

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

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

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

Explanation of 2020 Request................................................................. 61
 

INFORMATION TECHNOLOGY INTIATIVES 

Information Technology Investment Initiatives.......................................... 63
 

OTHER INFORMATION 

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

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

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

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

ii 
 

 

 

 

 

 

 

 

 

 

 

 

 

RAILROAD RETIREMENT BOARD 

SUMMARY OF APPROPRIATION ESTIMATES 

FOR FISCAL YEARS 2019 and 2020 

Fiscal Year 2019 Fiscal Year 2020 

Account FTEs Amount FTEs Amount Page 

Limitation on Administration 798 $123,500,000 a/ 744 $116,225,000 b/ 9 

Dual Benefits Payments –– $19,000,000 a/ –– $16,000,000 c/ 49 Account 

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

Limitation on the Office of 54 $11,000,000 a/ 54 $11,000,000 e/ –– Inspector General 

a/	 A full-year 2019 appropriation was enacted on September 28, 2018, pursuant to the Department of 

Defense and Labor, Health and Human Services, and Education Appropriations Act, 2019 and 

Continuing Appropriations Act, 2019 (P. L. 115-245) and includes $113,500,000 for the Limitation 

on Administration account and $10,000,000 for Information Technology Modernization. 

b/	 This amount reflects the President’s proposed budget amount. The Agency’s Limitation on 

Administration request level for Fiscal Year 2020 is $137,216,000, which would support 850 FTE 

and includes $11,861,800 for Information Technology Modernization. The Agency’s request level 

amount has been revised from $136,833,000 as reported in the RRB’s Fiscal Year 2020 Budget 

Submission primarily due to updated cost estimates for certain Information Technology 

Modernization projects. 

c/	 The proposed appropriation language provides for $16,000,000 to fund vested dual benefits from 

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

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

benefit received exceeds the amount available to pay vested dual benefits. 

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

will remain available through September 30, 2021. 

e/	 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 2018, the RRB paid $13.1 billion, net of recoveries and offsetting collections, 

in retirement and survivor benefits to about 540,000 beneficiaries. This included benefits paid 

on behalf of the Social Security Administration amounting to $1.8 billion to about 124,000 

beneficiaries. The RRB also paid unemployment-sickness benefits of $100.2 million, net of 

recoveries and offsetting collections. About 9,000 railroad workers received unemployment 

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

2
 
 

 

 

 

 

 

Programs Administered by the RRB 

Railroad Retirement Act 

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

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

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

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

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

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

provisions for lump-sum payments. 

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

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

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

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

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

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

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

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

alternatives available to private sector pension plans. 

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

general funds. As of September 30, 2018, about 10,000 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 

3
 
 

 

 

 

 

 

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 

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 services providers, nationwide, for Part B Medical 

Services. In fiscal year 2020, it is estimated that the RRB will be reimbursed about $30.4 million 

for such costs. The estimate includes $18.1 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, 2018, was approximately $26.6 

billion. From its inception through September 30, 2018, the Trust transferred approximately 

$22.9 billion to the RRB to pay railroad benefits, including approximately $1.8 billion in fiscal 

year 2018. 

4
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 (the average 

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

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

employees can be between 0 percent and 4.9 percent. The calendar year 2019 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 $98,700 in 2019. 

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 2019 on 

covered rail employees and employers is 7.65 percent for employees. 

For withholding and reporting purposes, the employer tax rate is divided into 6.2 percent for 

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

employee’s earnings subject to the 6.2 percent rate is $132,900 in 2019, 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 2019, the minimum employer contribution rate is 2.15 percent. New 

employers in 2019 will pay a tax of 2.75 percent, which represents the average rate paid by all 

employers in the period 2015 – 2017. For 81 percent of covered employers, the unemployment 

insurance rate assessed will be 2.15 percent in 2019, while 7 percent of employers will pay the 

maximum of 12 percent. 

The 2019 rate is applied to the first $1,605 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
 
 Incumbent's name/ 

(Title) 

Erhard R. Chorlé 

(Chairman) 

John Bragg 

(Labor Member) 

Thomas R. Jayne 

(Management Member) 

The Board Members 

Term expiration
 

Date
 

08-28-22 

08-28-24 

08-28-23 

Compensation 

$174,500 

$164,200 

$164,200 

7
 
8 

 

 

 

 

 

 

 

 

 

 

U.S. RAILROAD RETIREMENT BOARD 

EXECUTIVE COMMITTEE 

MEMBER 

Shawna R. Weekley 

MEMBER 

Ana M. Kocur 

MEMBER 

Keith B. Earley 

MEMBER 

VACANT 

SENIOR EXECUTIV

OFFICER 

Daniel J. Fadden 

OFFICE OF 

INSPECTOR 

GENERAL 

Martin J. Dickman 

OFFICE OF 

EQUAL 

OPPORTUNITY 

Pamela M. Tate 

THE BOARD 

Chairman, Erhard R. Chorlé 

Labor Member, John Bragg 

Management Member, Thomas R. Jayne 

CHIEF ACTUARY 

BUREAU OF 

THE ACTUARY A

RESEARCH 

Frank J. Buzzi 

CHIEF 

FINANCIAL 

OFFICER 

BUREAU OF 

FISCAL 

OPERATION 

Shawna R. Weekley 

OFFICE OF 

GENERAL COUNSEL 

Ana M. Kocur 

OFFICE OF 

LEGISLATIVE 

AFFAIRS 

Beverly Britton Fraser 

BUREAU OF 

HEARINGS AND 

APPEALS 

Rachel L. Simmons 

SECRETARY TO 

THE BOARD 

VACANT 

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 

BUREAU OF HUMAN 

PUBLIC AFFAIRS 

Michael P. Freeman 

RESOURCES 

Marguerite V. Daniels 

OFFICE OF 

PROGRAMS 

VACANT 

POLICY AND 

SYSTEMS 

Kimberly A. Price 

PROGRAM 

EVALUATION AND 

MANAGEMENT 

SERVICES 

Janet M. Hallman 

RETIREMENT/ 

SURVIVOR 

BENEFITS 

Valerie F. Allen 

BUREAU O

FIELD SERVI

Daniel J. Fadd

UNEMPLOYMENT 

AND PROGRAMS 

SUPPORT 

Micheal T. Pawlak 

DISABILITY 

BENEFITS 

Sherita Boots 
 

 

 

 

 

 

 

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, $116,225,000 

[123,500,000], 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: Provided further, 

That $2,725,000 [10,000,000], to remain available until expended, shall be used to supplement, 

not supplant, existing resources devoted to operations and improvements for the Board's 

Information Technology Investment Initiatives. 

Note: A full-year 2019 appropriation was enacted on September 28, 2018, pursuant to the 

Department of Defense and Labor, Health and Human Services, and Education. Appropriations 

Act, 2019 and Continuing Appropriations Act, 2019 (P.L. 115–245). (Departments of Labor, 

Health and Human Services, and Education, and Related Agencies Appropriations Act, 2019.) 

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, $116,225,000 

[123,500,000], 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: Provided further, That $2,725,000 

[10,000,000], to remain available until 

expended, shall be used to supplement, 

not supplant, existing resources devoted to 

operations and improvements for the 

Board's Information Technology 

Investment Initiatives. 

Note: A full-year 2019 appropriation was 

enacted on September 28, 2018, pursuant 

to the Department of Defense and Labor, 

Health and Human Services, and 

Education. Appropriations Act, 2019 and 

Continuing Appropriations Act, 2019 

(P.L. 115–245). (Departments of Labor, 

Health and Human Services, and 

Education, and Related Agencies 

Appropriations Act, 2019.) 

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
 
 

 

 

 

 

 

 

 

 

 

 

 

Legislation 

President’s Agency’s 

Appropriation Appropriation 

Legislation Authorized Enacted Authorized Request Request 

AUTHORIZING Indefinite $123,500,000 a/ Indefinite $116,225,000 $137,216,000 

Railroad Retirement Act: 

Sections 15(a) and 

15A(c) 

Railroad Unemployment 

Insurance Act: 

Section 11(a) 

BYPASS AUTHORITY 

Railroad Retirement Act: 

Section 7(f) 

a/	 A full-year 2019 appropriation was enacted on September 28, 2018, pursuant to the Department of 

Defense and Labor, Health and Human Services, and Education Appropriations Act, 2019 and 

Continuing Appropriations Act, 2019 (P. L. 115-245) and includes $113,500,000 for the Limitation on 

Administration account and $10,000,000 for Information Technology Modernization. 

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 15A(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
 
 

 

Legislation 

Section 7(f) of the Railroad Retirement Act: 

“Whenever the Board submits or transmits any budget estimate, budget request, supplemental 

budget estimate, or other budget information, legislative recommendation, prepared testimony for 

congressional hearings, or comment on legislation to the President or to the Office of Management 

and Budget, it shall concurrently transmit a copy thereof to the Congress. No officer or agency of 

the United States shall have any authority to require the Board to submit its budget requests or 

estimates, legislative recommendations, prepared testimony for congressional hearings, or 

comments on legislation to any officer or agency of the United States for approval, comments, or 

review, prior to the submission of such recommendations, testimony, or comments to the 

Congress.” 

12
 
ADMINISTRATIVE EXPENSES a/b/
 

Budget Authority By Object Classification
 

Limitation on Administration Fiscal year 2018 Fiscal year 2019 Amount of Fiscal year 2020 Amoun

Direct obligations by object class actual amounts($) c/d/ estimated amounts($) d/e/ Change President's Budget($) d/ Chan

Personnel compensation: 

Full-time permanent $62,012,000 $63,608,000 ($3,817,000) $59,791,000 $8,826

Positions other than permanent 748,000 620,000 173,000 793,000 122

Other personnel compensation 1,432,000 1,403,000 (187,000) 1,216,000 

Total personnel compensation 64,192,000 65,631,000 (3,831,000) 61,800,000 8,948

Personnel benefits: civilian 21,412,000 21,007,000 (1,656,000) 19,351,000 2,906

Benefits for former personnel 240,000 172,000 103,000 275,000 

Travel and transportation of persons 493,000 1,049,000 (113,000) 936,000 

Transportation of things 1,000 37,000 66,000 103,000 

Rental payments to GSA 3,350,000 f/ 3,500,000 100,000 3,600,000 

Communications, utilities, and 5,260,000 6,290,000 298,000 6,588,000 

miscellaneous charges 

Printing and reproduction 242,000 275,000 28,000 303,000 

Consulting services 773,000 481,000 35,000 516,000 

Other services 19,628,000 21,784,000 (2,567,000) 19,217,000 g/ 9,137

Supplies and materials 585,000 693,000 11,000 704,000 

Equipment 1,492,000 2,581,000 251,000 2,832,000 

Total, direct obligations 117,668,000 123,500,000 (7,275,000) 116,225,000 20,991

Unobligated balance 5,832,000 j/ 0 0 0 

Total budget authority $123,500,000 $123,500,000 ($7,275,000) $116,225,000 $20,99

a/	 In a separate justification document, the Office of Inspector General is requesting $11,000,000 for administrative expenses in fiscal year 2020. 

b/	 Average FTE Costs: $118,680 for FY 2018, $120,469 (no COLA included) for FY 2019 and $122,044 (no COLA included) for FY 2020. 

c/	 The amounts included for 2018 reflect the annualized level provided by the Consolidated Appropriations Act, 2018 (P.L. 115-141). 

d/	 The Limitation on Administration excludes $29.8. million in fiscal year 2018 that the RRB received in reimbursements and transfers from the Centers for Medicare and Medicaid 

Amounts for fiscal years 2019 and 2020 exclude $29.8 million and $30.4 million respectively that the RRB expects to receive in each fiscal year from CMS and others. 

e/	 The amounts included for 2019 reflect the annualized level provided by the Department of Defense and Labor, Health and Human Services, and Education Appropriations Act, 20

Act, 2019 (P.L. 115-245). 

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

g/	 This amount includes $2.725 million of no year funding for IT initiatives for the modernization of the RRB's Legacy Systems Modernization Services (LSMS) $1.69M, Cybersecu

Management Integrated System (FMIS) Upgrade $0.25M and Records Management System $0.5M. 

h/	 This amount includes $11.862 million of no year funding for IT initiatives for the modernization of the RRB's Legacy Systems Modernization Services (LSMS) $9.099M, Enterpris

$0.200M, Citizen Services, Paperless Processing $0.713M, Cybersecurity $0.285M, Financial Management Integrated System (FMIS) Upgrade $0.250M and Records Managem

i/	 The agency request level of $11.862M for IT Initiatives is an increase of $1.678M from $10.184M in the 2020 Budget Submission. This change is caused primarily by a change 

Replatform Services project that increased cost by $1.9M; as a result the agency now needs additional funding for several other projects: $0.250M to complete the FMIS Upgrad

Management System and $0.113M for Citizen Services Paperless Processing. 

j/	 This amount reflects the unobligated balance remaining from no year IT Initiatives funding from P.L 115-141, the Consolidated Appropriations Act, 2018. 

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

13 
 

ADMINISTRATIVE EXPENSES 

Budget Authority by Strategic Goal

Fiscal Year 2018 Fiscal Year 2019 Fiscal Year 2020 

Limitation on Administration Actual Estimate President's Budget 

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

 Strategic goal:

 1. Modernize information technology 37 5 $9,301,863 5 37 5 $15,634,503 5 66 9 $14,307,739 12 

 2. Customer service	 623 76 84,410,366 79 614 78 82,427,549 82 509 68 82,022,461 71 

 3. Stewardship	 156 19 23,955,771 16 147 17 25,437,948 13 169 23 19,894,800 17 

 Total, direct program obligations 816 117,668,000 798 123,500,000 744 116,225,000 

 Unobligated balance 5,832,000 0 0 

 Total budget authority 816 $123,500,000 798 $123,500,000 744 $116,225,000 

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

 1. 

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

 2. Provide excellent customer service. 

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

Note: Average FTE Costs: $118,680 for FY 2018, $120,469 (no COLA included) for FY 2019 and $122,044 (no COLA included) for FY 2020. 

14
 
 

STAFFING HISTORY
 

Actual Full-time Equivalent Employment
 

a/ 

b/ 

c/ 

d/ 

Cumulative 

Percent Cumulative percent change 

Fiscal Change from change from FTE since fiscal 

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

1993 1,698 b/ --­ --­ --­ --­

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

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

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

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

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

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

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

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

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

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

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

2005 957 -91 -8.7% 741 -43.6% 

2006 940 -17 -1.8% 758 -44.6% 

2007 927 -13 -1.4% 771 -45.4% 

2008 918 -9 -1.0% 780 -45.9% 

2009 897 -21 -2.3% 801 -47.2% 

2010 908 11 1.2% 790 -46.5% 

2011 903 -5 -0.6% 795 -46.8% 

2012 884 -19 -2.1% 814 -47.9% 

2013 865 -19 -2.1% 833 -49.1% 

2014 825 -40 -4.6% 873 -51.4% 

2015 835 10 1.2% 863 -50.8% 

2016 824 -11 -1.3% 874 -51.5% 

2017 853 29 3.5% 845 -49.8% 

2018 816 -37 -4.3% 882 -51.9% 

2019 798 c/ -18 -2.2% 900 -53.0% 

2020 744 d/ -54 -6.8% 954 -56.2% 

Excludes staffing for the Office of Inspector General 

Includes Special Management Improvement Fund FTEs for fiscal years 1994-1996 of 80, 58, 30 and 10, 

Reflects an adjusted projection as of January 2019. 

Reflects the estimated staffing allowable, pursuant to the Department of Defense and Labor, Health 

and Human Services, and Education Appropriations Act, 2019 and Continuing Appropriations Act, 2019 

(P.L. 115-245). The estimated 744 FTEs is 106 FTEs less than what is needed to sustain the agency's 

mission essential functions. Additional funding for the agency's Information Technology investments 

would improve the agency's ability to sustain organizational performance at lower FTE levels in the 

future. 

15
 
Funding for Major Contracts 

This chart shows contracts of $10,000 and over that are planned for fiscal year 2020 in the following Budget Object 

Class (BOC) categories: consulting services (BOC 251), government contracts (BOC 253), medical fees (BOC 256), 

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

310/257). These contract funding estimates are based upon the President's Budget Level of $116,225,000. 

BOC	 Title and description 

Information Technology - Operations 

252 •	 IT operations support and memberships. Requested funding includes IBM
 

operations support services, Core research services for CIO, and IT Research
 

Services membership.
 

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

PC Equipment. 

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

License Agreement. 

252 •	 IT Security. Security authorization, continuous monitoring of RRB information 

systems, mitigate cyber security risks, improve fraud prevention and detection
 

abilities, support a more effective, efficient, and leaner workforce and IWAY and
 

Nutanix Cluster Pro software.
 

252 •	 Services and Installations. Funding for agency Infrastructure and security 

operations IT services, and SCCM Implementation Services.
 

310 •	 IT End of Life Replacement Equipment. Replacements for Malware Analysis 

Workstations, IT Security laptops, network printers, digital forensics, routers and 

switches, KVM switch, Log management, network access controls, it security 

servers, network monitoring switch, and intrusion prevention/detection systems. EIS 

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

257 •	 IT Software & Maintenance Renewals. Sentinel & FS Sentinel for 6 months and full 

year, Cisco, Misc. PAY.GOV, SAP Business Objects, CA Software, Nutanix 

Cluster Support NITC, Skype, SharePoint Support, IPS and document imaging 

software. IBM Software Excel Enterprise Renewal. 

Estimated
 

FY 2020
 

Funding ($)
 

273,148 

499,905 

500,000 

325,420 

188,926 

1,346,150 

2,472,293 

16
 
BOC 

Funding for Major Contracts 

Title and description 

Estimated 

FY 2020 

Funding ($) 

IT Modernization Program (funded at President's Budget level) 

252 • Legacy Systems Modernization Services. See pages 63 through 67 for details. 1,690,000 

252 • Cybersecurity. See pages 63 through 67 for details. 285,000 

252 • Financial Management Integrated System. See pages 63 through 67 for details. 250,000 

252 • Records Management System. See pages 63 through 67 for details. 500,000 

Support of Benefit Program Activities 

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

to make disability determinations. 

1,610,000 

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

concerning benefit and claim matters and preparation of advisory medical opinions. 

470,400 

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

representatives and supervisors. Network Team building meetings. New Contact 

Representative Training. 

45,000 

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

Index (ASCI) survey. 

41,000 a/ 

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

income processing. 

12,000 

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

processing. 

74,000 a/ 

Financial Management 

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

Treasury for issuing checks and making electronic funds transfers on the RRB’s 

behalf, as well as postage costs incurred for RRB mailings released by the Treasury. 

35,000 a/ 

253 • Payroll Costs. Funding is for payroll costs related to PAR and labor distribution. 245,000 a/ 

257 Financial and Administrative Systems. Funding will be used to support FMIS 

annual Operations and Maintenance (O&M) contract and AquilQuest O&M. 

2,000,000 

17
 
 

Funding for Major Contracts 

BOC	 Title and description 

Administrative support 

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

Administration (NARA) for services by the Federal Records Center (FRC) to 

maintain the RRB claim files. This cost includes $24,000 for shuttle service to 

transport files between RRB headquarters and the FRC. 

252 •	 Photocopiers. Funding is required to continue contractual services for photocopiers in 

the RRB’s headquarters building, including high speed copiers that are used to prepare 

program related booklets, pamphlets, and other informational material. 

253 •	 Disaster recovery. Funding will be used to support services via an interagency 

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

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

miscellaneous and administrative support services. RWA Services. 54,000 Health 

Units. 

253 •	 OPM Background Investigations. Funding is required to obtain background 

investigations for agency employees and contractors. 

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

services. 

251 •	 Employee assistance program. The RRB provides professional assistance for 

employees with personal problems that adversely affect work performance and 

Program Activities. 

257 •	 Administrative Fees. Agency charges for FSAFEDS and Change of Stations. 

252 •	 Vocational Expert Services, Videoconferencing and transcription services. Funding 

for these services are needed for hearing appeals. 

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

hiring services, background investigations, as well as flexible spending accounts. GSA 

Payroll/HRIT, IIA with GSA for HSPD-12, IIA with DOI for USA Staffing Licenses, 

Change of Stations and Administrative Fees, OPM: USA Jobs and FSAFEDS, Fed 

desk. 

Estimated
 

FY 2020
 

Funding ($)
 

270,000 a/ 

362,000 

196,100 a/ 

104,000 a/ 

125,000 a/ 

65,000 

34,000 

25,000 

75,000 

535,000 a/ 

18
 
 

Funding for Major Contracts 

Estimated 

FY 2020 

BOC Title and description Funding ($) 

252 • Equifax Verifications. Funding will be used to obtain access to the work number 30,000 

system for employment and income information. 

252 • Learning Management System. Funding is for the RRB's in-house online 176,000 

educational/training courses and programs. 

252 • Shredding Services. Funding is for the secure destruction of agency documents. 35,000 

Facility Management Services 

253 • Federal Protective Service costs. Funding is required for protective services, billed 570,000 a/ 

by the Department of Homeland Security, Federal Protective Service. 

254 • Janitorial services. Funding is needed for janitorial services for the RRB 820,000 

headquarters building. 

254 • Building security. Funding is required for guard service and cleaning service for the 854,500 

RRB headquarters building. 

254/257 • Miscellaneous Building Contracts. Contracts for the maintenance of entrance 220,700 

turnstiles, elevators, chillers, fire alarms, asbestos abatement, air conditioning, and 

delegation of authority. 

Agency total, based on President's Budget 17,360,542 

a/ Contractual services provided by Federal Government agencies comprise $2,195,100 of the agency 

program total. 

IT Modernization Program (additional IT funding at Agency's request level) 

252 • Legacy Systems Modernization Services. See pages 63 through 67 for details. 7,409,150 

252 • Enterprise Infrastructure Solutions (EIS). See pages 63 through 67 for details. 200,000 

252 • Citizen Services, Paperless Processing. See pages 63 through 67 for details. 712,650 

252 • Records Management System. See pages 63 through 67 for details. 815,000 

Total - additional need 9,136,800 

19
 
 

 

 

 

 

 

 

 

BUDGET AUTHORITY BY FUND
 

Fiscal Year Fiscal Year 

Fiscal Year Fiscal Year 2020 2020 

2018 actual 2019 President’s Agency’s 

amounts estimated Budget Request 

Railroad Retirement Program 

Direct Program: 

Railroad Retirement Account 75,032,443 76,628,243 72,880,000 86,043,000 

Social Security Equivalent 

Benefit Account 26,209,104 30,475,897 28,000,000 33,057,000 

Total, direct railroad retirement 

program obligations 101,241,547 107,104,140 100,880,000 119,100,000 

Railroad Unemployment and Sickness Insurance Program 

Direct Program: 

Railroad Unemployment 

Insurance Administration Fund 16,426,453 16,395,860 15,345,000 18,116,000 

Total, direct railroad 

retirement, 

unemployment and sickness 117,668,000 123,500,000 116,225,000 137,216,000 

insurance obligations 

Unobligated balance 5,832,000 --- --- --­

Total, direct railroad 

retirement, 

unemployment and sickness 

insurance budget authority 123,500,000 123,500,000 116,225,000 137,216,000 

Note: A full-year 2019 appropriation was enacted on September 28, 2018, pursuant to the Department 

of Defense and Labor, Health and Human Services, and Education Appropriations Act, 2019 and 

Continuing Appropriations Act, 2019 (P. L. 115-245) and includes $113,500,000 for the 

Limitation on Administration account and $10,000,000 for Information Technology 

Modernization. 

20
 
 

 

 

LIMITATION ON ADMINISTRATION
 

Financing
 

2018 2019 President’s Agency’s 

actual enacted Budget Request 

Financing 

Total, direct program obligations $117,668,000 123,500,000 $116,225,000 $137,216,000 

Unobligated balance 5,832,000 --­ --­ --­

Limitation $123,500,000 $123,500,000 $116,225,000 $137,216,000 

Relation of direct program obligations to outlays 

Obligations incurred, net 123,500,000 123,500,000 116,225,000 137,216,000 

Obligated balance, start of year 0 30,667,551 30,667,551 30,667,551 

Obligated balance, end of year (30,667,551) (30,667,551) (30,667,551) (30,667,551) 

Outlays from limitation $92,832,449 $123,500,000 $116,225,000 137,216,000 

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

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

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

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

Unemployment Insurance Act are transferred from the Railroad Unemployment Insurance 

Administration Fund to the Limitation on Administration. 

A full-year 2019 appropriation was enacted on September 28, 2018, pursuant to the Department 

of Defense and Labor, Health and Human Services, and Education Appropriations Act, 2019 

and Continuing Appropriations Act, 2019 (P. L. 115-245) and includes $113,500,000 for the 

Limitation on Administration account and $10,000,000 for Information Technology 

Modernization.. 

21
 

Fiscal Year Fiscal Year 

Fiscal Year Fiscal Year 2020 2020 
 

 

 --- --- ---

 

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 2020 Fiscal Year 2020 

Fiscal Year 2018 Fiscal Year 2019 President’s Agency’s 

actual enacted Budget Request 

Direct program sources 

Available from 

benefit trust funds 

by Congressional 

appropriation 

$123,500,000 $123,500,000 $116,225,000 $137,216,000 

Direct program uses 

Administrative 

expenses 

Unobligated 

balance 

$117,668,000 

5,832,000 

$123,500,000 $116,225,000 $137,216,000 

Total uses: $123,500,000 $123,500,000 $116,225,000 $137,216,000 

Note:	 A full-year 2019 appropriation was enacted on September 28, 2018, pursuant to the 

Department of Defense and Labor, Health and Human Services, and Education Appropriations 

Act, 2019 and Continuing Appropriations Act, 2019 (P. L. 115-245) and includes 

$113,500,000 for the Limitation on Administration account and $10,000,000 for Information 

Technology Modernization.. 

22
 
 

 

LIMITATION ON ADMINISTRATION 

Amounts Available for Obligation 

Fiscal Year 2020 Fiscal Year 2020 

Fiscal Year Fiscal Year President’s Agency’s 

2018 actual 2019 enacted Budget Request 

Appropriation $117,668,000 $123,500,000 $116,225,000 $137,216,000 

Unobligated 

balance 5,832,000 --­ --­ --­

Total direct 

obligations a/ $123,500,000 $123,500,000 $116,225,000 $137,216,000 

a/	 The RRB also received reimbursements totaling $29.8 million in fiscal year 2018 and expects to 

receive $29.8 million in fiscal year 2019, and $30.4 million in fiscal year 2020 from CMS and 

others. 

Note:	 A full-year 2019 appropriation was enacted on September 28, 2018, pursuant to the 

Department of Defense and Labor, Health and Human Services, and Education 

Appropriations Act, 2019 and Continuing Appropriations Act, 2019 (P. L. 115-245) and 

includes $113,500,000 for the Limitation on Administration account and $10,000,000 for 

Information Technology Modernization. 

23
 
 

 

 

 

 

APPROPRIATIONS HISTORY TABLE
 

Agency’s President’s	 Appropriation/ 

Request Budget estimate House Senate continuing 

Year Level to the Congress allowance allowance resolution 

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

2012 115,011,000 112,239,000 --- --- 108,649,264 b/ 

2013 117,719,000 112,415,000 --- --- 108,734,464 c/ 

2014 119,158,000 111,739,000 --- --- 110,300,000 d/ 

2015 119,743,000 112,150,000 --- --- 111,225,000 e/ 

2016 141,431,197 119,918,000 --- --- 111,225,000 f/ 

2017 139,649,040 122,499,000 --- --- 113,500,000 g/ 

2018 147,841,000 111,225,000 113,500,000 114,500,000 123,500,000 h/ 

2019 142,506,000 115,225,000 126,000,000 123,500,000 123,500,000 i/ 

2020 137,216,000 j/ 116,225,000 

a/	 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).
 

b/	 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). 

c/	 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). 

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

(P.L. 113-76). 

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

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

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

113).
 

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

31).
 

h/	 Reflects the appropriation made available by the Consolidated Appropriations Act, 2018 (P.L. 115­

141).
 

i/	 Reflects the appropriation made available by the Department of Defense and Labor, Health and 

Human Services, and Education Appropriations Act, 2019 and Continuing Appropriations Act, 2019 

(P.L. 115-245). 

j/	 The Agency’s request level amount has been revised from $136,833,000 as reported in the RRB’s 

Fiscal Year 2020 Budget Submission primarily due to updated cost estimates for certain Information 

Technology Modernization projects. 

24
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

Retirement/Survivor Benefit Program
 

Summary Processing Workload Table
 

Social 

Average Supplemental Security 

Fiscal 

years 

number of 

annuitants 

New 

applications 

annuity 

applications 

initial 

awards 1 

Post-payment 

adjustments 

Number of 

payments 

Medicare 

enrollments 2 

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

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

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

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

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

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

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

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

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

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

2018 513,732 33,879 4,464 3,393 80,201 6,686,481 7,840 

2019 (est) 509,500 31,000 5,000 3,000 79,000 6,620,000 7,000 

2020 (est) 504,300 29,000 4,000 3,000 79,000 6,560,000 7,000 

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

2/ Excludes attainments. 

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 

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

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

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

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

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

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

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

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

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

2017 225,000 14,372 96,777 80,748 20,087 132,557 113,163 

2018 223,000 (est) 11,294 71,119 59,696 18,660 131,320 112,940 

2019 (est) 220,000 12,000 70,000 59,000 19,000 127,000 109,000 

2020 (est) 216,000 13,000 77,000 65,000 19,000 126,000 108,000 

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 2020
 

Railroad Retirement Board
 

27
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board – Fiscal Year 2020 Performance Plan
 

TABLE OF CONTENTS
 

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

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

Strategic Goal I: Modernize Information Technology Operations to Sustain 

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

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

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

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

Strategic Objective: Effectively carry out responsibilities with respect to the
 

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

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

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

and Agency Resources ....................................................................................................... 34
 

recorded, and reported appropriately............................................................................ 34
 

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

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

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

Exhibit 1: Performance Plan - FY 2020 .................................................................................. 41
 

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Railroad Retirement Board – Fiscal Year 2020 Performance Plan 

Introduction 

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

2020 to support our mission (see mission statement on the following page) and to 

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

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

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

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

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

them with information about program results and service quality. 

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

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

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

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

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

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

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

projected performance levels) to be achieved in fiscal year 2020. 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 2020 for each 

performance goal, at the President’s proposed budget level of $116,225,000, 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 2020, 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 2020 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 2020 Performance Plan 

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

essential services. At the President’s proposed budget level for fiscal year 2020, we plan to 

allocate $14,307,739 and 66 full-time equivalent employees (FTEs) to this strategic goal. 

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

legacy computer systems built 40 years ago. Our workforce is rapidly aging, with the average 

employee serving 30 years at retirement. Institutional knowledge diminishes as this 

workforce retires and it is increasingly difficult to find the legacy skills needed to maintain 

these systems. To continue providing the excellent service to our beneficiaries, we need to 

transform these legacy systems through automation and build modern digital services while 

safeguarding information anywhere, anytime, in all ways throughout the information life 

cycle. Our strategy to modernize encompasses multiple iterations over various phases in a 

new environment to minimize impact to the current legacy environment. 

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

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

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

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

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

strategic objective. 

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

mainframe to distributed architecture.
 

The RRB transformed the Taxation systems using a like-to-like migration approach. 

The Tax system, built using COBOL/CICS/DB2 legacy technology, was transformed 

into the distributed architecture, Microsoft C#/.NET/SQL Server. We decided to 

transform the Employee Data Management (EDM) system following the reengineering assessment (Strategic Goal I-A-4 Complete the Assessment for reengineering Mission Essential Programs). 

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

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

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

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

strong Identity Proofing and Multi-Factor Authentication. 

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

End-of-Life Mainframe hardware. 

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

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

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

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

currently written in COBOL/CICS/DB2, to a cloud based system. 

31
 
 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board – Fiscal Year 2020 Performance Plan 

•	 Complete the assessment for re-engineering Mission Essential Programs 

The RRB will award a contract to conduct an assessment our RRB’s existing core 

businesses processes, identify re-engineering opportunities and deliver a roadmap/ 

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

batch oriented processing to interactive transactional processing. 

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

services in EIS 

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

improve architecture and modernize our network infrastructure. With the emerging 

cloud solutions we will optimize our network backbone connectivity to overcome 

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

in separate deliverables. 

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

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

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

Communications. Services in the Voice solicitation include Automatic Call 

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

other collaboration tools. 

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

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

other remote location data communications. 

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

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

data network connectivity. 

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

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

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

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

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

facilitate quick resolution of identified risks and issues. 

32
 
 

 

 

 

 

 

 

 

Railroad Retirement Board – Fiscal Year 2020 Performance Plan 

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

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

performance. At the President’s proposed budget level for fiscal year 2020, we plan to 

allocate $82,022,461 and 509 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 

Overall Timeliness Performance service timeliness standards for paying benefits. Fiscal Year 2018 (through 9/30/2018) Through September 30, 2018, the overall actual 

performance was 98.8 percent. This means that •	 Retirement applications: 95.3% customers received benefit services within the (target: 94.0%) timeframes promised in the Customer Service •	 Survivor applications: 96.9% Plan for nearly 99 percent of the 259,415 (target: 94.5%) service transactions for which timeliness was •	 Disability applications/payments: measured. 52.8% (target: 82.2%) 

The inset at the right shows composite results in •	 RUIA applications/claims: 99.9% 
 

four combined categories of services. (target: 98.1%)
 

Communications with RRB customers 

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. 

33
 
 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board – Fiscal Year 2020 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, a total of 30 automated ERSNet services exist for employers to notify, request or 

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

Retirement Board (RRB). No additional services will be added to the ERSNet system in 

2019. We will focus on improvements and enhancements to the 30 services that are currently 

available. An additional service will be added in fiscal year 2020 with the completion and 

implementation of the Form G-117A, Designation of Contact Officials. This service will 

allow employers on-line access to make changes to the responsible officials within their 

organizations who are authorized to exchange data and information with the RRB. This will 

bring the total number of services available to 31 in the ERSNet system. 

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

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

community. At the President’s proposed budget level for fiscal year 2020, we plan to allocate 

$19,894,801 and 169 FTEs to this strategic goal. We have established four performance goals 

that focus on the specifics of achieving this strategic goal. 

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

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

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

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

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

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

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

•	 Continue to issue annual audited financial statements. 

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

valuations and financial projections. 

•	 Correctly estimate the amounts needed for future benefit payments. 

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

34
 
 

 

 

 

 

 

 

 

 

Railroad Retirement Board – Fiscal Year 2020 Performance Plan 

•	 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 2018, we released our Performance and Accountability Report for fiscal year 

2018. The RRB’s Office of Inspector General (OIG) did not express an opinion (disclaimer) 

on the RRB’s 2018 financial statements, which were included in that report. The OIG 

continues to report material weaknesses in the RRB’s financial reporting and control 

environment. The RRB rejects the material weaknesses identified and continues to disagree 

that a disclaimer of opinion on the RRB’s financial statement is necessary. While the RRB 

continues to be dismayed by the fluidity of the OIG’s rationale for the disclaimer of opinion 

and material weaknesses, the RRB continues to work in good faith with the OIG throughout 

the audit process. 

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: 

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

•	 Provide feedback and take additional preventive actions as appropriate. 

•	 Maintain established matching programs. 

•	 Continue our program integrity reviews. 

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

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

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

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

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

law and related guidance issued by OMB. 

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

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

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

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

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

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

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

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

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

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

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

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

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

35
 
 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board – Fiscal Year 2020 Performance Plan 

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

invested in these activities. 

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

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

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

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

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

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

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

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

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

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

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

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

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

performance management of its IT. 

•	 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. 

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Railroad Retirement Board – Fiscal Year 2020 Performance Plan 

Maximizing Employee Performance 

Like many agencies, the RRB has an aging workforce. Almost 51 percent of our employees 

have 20 or more years of service and almost 34 percent of the current workforce will be 

eligible for retirement by fiscal year 2020. To prepare for the expected turnover while 

adhering to the Administration’s “Comprehensive Plan for Reforming the Federal 

Government and Reducing the Federal Civilian Workforce”, the agency is placing increased 

emphasis on maximizing employee performance. The RRB’s plan to maximize employee 

performance consists of two separate yet interrelated plans – The Human Capital Analysis 

Plan and the Plan to Maximize Employee Performance. By improving the organization’s 

effectiveness and workforce management, RRB will better utilize the Federal workforce and 

manage our limited human capital resources. By strategically evaluating the positions within 

the RRB, we can then focus on maximizing employee performance. 

Maximizing employee performance focuses on an ever-evolving evaluation and 

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

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

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

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

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

competence. 

Human Capital Analysis Plan 

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

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

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

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

organizational decisions. 

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

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

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

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

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

efforts. 

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

analysis information to identify agency competencies, position competencies, 

leadership/management competencies, and executive competencies. Each individual 

competency will be behaviorally defined at five proficiency levels and include 

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

also be used to reduce project time. 

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

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

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

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

agency and/or individual level. 

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Railroad Retirement Board – Fiscal Year 2020 Performance Plan 

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

identify knowledge and skill deficiencies throughout the agency. Utilizing those 

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

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

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

competencies needed for employees to progress. 

Plan to Maximize Employee Performance 

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

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

•	 Bargaining/non-bargaining unit employees, 

•	 supervisors/managers, and 

•	 SES employees 

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

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

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

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

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

developing and implementing meaningful and relevant performance standards. 

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

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

errors in the evaluation. In addition, managers and supervisors are reminded to review and/or 

update performance standards whenever they are looking to post a vacancy announcement. In 

FY16, RRB conducted a random sample (with 95% confidence level and 5% allowed margin 

of error) of performance evaluations to ensure compliance with RRB policy and correct any 

deficiencies. In addition, the sample provided valuable feedback and opportunity for HR to 

follow-up with managers and supervisors to address unacceptable performance ratings. 

Regardless of the applicable performance management system in question, performance 

management at the RRB is aimed at improving individual and organizational effectiveness by 

relating pay levels, pay adjustments and awards to individual and organizational performance. 

Performance management is deemed essential at the RRB and is viewed as a continuous 

process given performance management related decisions have the potential to impact other 

personnel actions (e.g. within-grade-increases, career options, career ladder promotions, , 

demotion, retention and reduction-in-force (RIF) rights.) 

Effective performance management at the RRB provides an objective means of measuring 

actual work performance by considering factors such as; organizational mission, functional 

delegation, position descriptions, general output requirements of the position, critical 

elements, performance standards, job performance, performance appraisal, and performance 

feedback. 

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Railroad Retirement Board – Fiscal Year 2020 Performance Plan 

Strengthening IT Portfolio Management – In support of the Administration’s direction to 

agencies to assess the effectiveness of current information technology (IT) management 

practices and address opportunities to improve management of IT resources, we continue to 

use measurements based on the PorfolioStat categories Deliver, Innovate and Protect. The 

measurements ensure that the agency engages in proactive performance management of its IT 

portfolio. 

Information Security Program - Information security is a critical consideration for 

government agencies where maintaining the public’s trust is essential. The RRB relies 

extensively on computerized systems to support its mission operations and store the sensitive 

information that it collects. The RRB’s information security program is established and 

maintained to reasonably protect systems data and resources against internal failures, human 

errors, attacks and natural catastrophes that might cause improper disclosure, modification, 

destruction, or denial of services. 

We continue to make progress towards a compliant Information Security program to improve 

the RRB's security posture. The RRB implemented an Information Security Continuous 

Monitoring (ISCM) Strategy as outlined in OMB Memorandum M-14-03: Enhancing the 

Security of Federal Information and Information Systems. This strategy addressed the gaps in 

the Information Security program. We partnered with the Department of Homeland Security 

(DHS) in the Continuous Diagnostic and Mitigation (CDM) program. This partnership with 

DHS will further improve our Information Security program pertaining to vulnerability 

assessment, hardware and software management, configuration management, and privileged 

account management. We also enrolled in the DHS EINSTEIN-3 Accelerated (E3A) program 

that ensures all of the Domain Name System (DNS) and Simple Mail Transfer Protocol 

(SMTP) are monitored by these services. 

We continue to manage the risk of the critical infrastructure considering asset management, 

remote access, identity management, and network protection. Specifically: 

•	 Asset Management – we enrolled in the DHS CDM Continuous Monitoring as a 

Service (CMaaS) to provide better visibility of current hardware and software and to 

automatically detect unauthorized hardware and software. The CDM solution will be 

implemented based on the DHS project schedule. 

•	 Identity Management – we now have a multi-factor authentication solution in place 

and as part of CMaaS, we will be implementing credential management for general 

users and privileged access management for system administrators. 

•	 Remote Access – we will continue to strengthen information security controls for VPN 

remote access. 

•	 Network Protection – as part of CMaaS, we will further improve the Defense in Depth 

configuration in place. 

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Railroad Retirement Board – Fiscal Year 2020 Performance Plan 

Strategic Objective: Effectively carry out responsibilities with respect to the National 

Railroad Retirement Investment Trust. Although the RRB no longer has primary 

responsibility for the investment of the trust fund monies, it continues to have responsibilities 

in ensuring that the National Railroad Retirement Investment Trust (NRRIT), and its sevenmember Board of Trustees, comply with the provisions of the Railroad Retirement Act. This 

responsibility will be fulfilled through review of the monthly, quarterly and annually 

submitted reports by the NRRIT, and its auditors’ reports. In addition, the RRB’s Board 

Members and General Counsel meet twice annually with the Trustees and receive detailed 

briefings during periodic telephone conferences. 

The RRB has authority to bring civil action should it detect any violation of the Railroad 

Retirement Act or non-compliance with any provisions of that Act. 

To facilitate coordination among the NRRIT and Federal Government organizations, the 

Department of the Treasury, OMB, NRRIT and RRB have entered into a voluntary 

memorandum of understanding concerning budgetary, accounting and financial reporting 

responsibilities. 

40
 
 

 

 

 

 

Railroad Retirement Board 

FY 2020 Performance Plan 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

2017 

Actual 

($113.5m) 

2018 

Actual 1/ 

($123.5m) 

2019 

Enacted 

($123.5m)

2/ 

STRATEGIC GOAL I: Modernize Information Technology (IT) Operations to sustain mission essential services 

Strategic Objective: Legacy Systems Modernization 

Goal leader: Ram Murthy, Chief Information Officer 

I-A-1. Transform Tax and EDM 

systems (3 million lines of 

legacy COBOL) from the 

mainframe to distributed 

architecture. 

New 

Performance 

Goal 

2018 

Tax: 100% 

EDM: new 

strategic 

direction, 

see I-A-4 

I-A-2. Deliver online retirement 

forms (AA-1, AA-3) as citizen 

centric digital solutions. 

New 

Performance 

Goal 

2018 

AA-1: 100% 

AA-3: 80% AA-3: 100% 

I-A-3. Transition Mission 

Essential Programs from the 

End-of-Life Mainframe 

hardware. 

New 

Performance 

Goal 

2019 

50% 

I-A-4. Complete the assessment 

for re-engineering Mission 

Essential Programs. 

New 

Performance 

Goal 

2019 

50% 

1-A-5. Complete the migration 

of agency network and 

telecommunication services to 

new services in EIS. 

New 

Performance 

Goal 

2019 

0% 

41
 
 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2020 Performance Plan 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

2017 

Actual 

($113.5m) 

2018 

Actual 1/ 

($123.5m) (

STRATEGIC GOAL II: Provide Excellent Customer Service 

Strategic Objective: Pay benefits timely. 

Goal leader for objectives II-A-1 through II-A-5; II-A-7 and II-A-8: Crystal Coleman, Acting Director of Programs 

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

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

II-A-1. RRB makes a decision to pay or 

deny a railroad retirement employee or 

spouse initial annuity application within 

35 days of the annuity beginning date, if 

advanced filed. 

(Measure: % ≤ 35 days) 

95.8% 94.0% 95.0% 94.9% 

II-A-2. RRB makes a decision to pay or 

deny a railroad retirement employee or 

spouse initial annuity application within 

60 days of the date the application was 

filed. 

(Measure: % ≤ 60 days) 

96.5% 96.3% 95.5% 96.5% 

II-A-3. RRB makes a decision to pay, 

deny or transfer to SSA an initial 

annuity application for a railroad 

retirement survivor not already 

receiving a benefit within 60 days of the 

annuity beginning date, or date filed 

(whichever is later). 

(Measure: % ≤ 60 days) 

94.3% 96.0% 96.9% 96.2% 

42
 
 

 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2020 Performance Plan 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

2017 

Actual 

($113.5m) 

2018 

Actual 1/ 

($123.5m) 

2019 

Enacted 

($123.5m

II-A-4. RRB makes a decision to pay, 

deny or transfer to SSA an initial annuity 

application for a railroad retirement 

survivor already receiving the benefits as 

a spouse within 30 days of the RRB’s 

receipt of first notice of the employee’s 

death. (Measure: % ≤ 30 days) 

95.5% 95.1% 96.1% 96.5% 94.0% 

II-A-5. RRB makes a decision to pay or 

deny a lump sum death benefit within 60 

days of the date the application was filed. 

(Measure: % ≤ 60 days) 

98.1% 98.0% 97.5% 98.2% 97.0% 

II-A-6. RRB certifies a payment or 

releases a letter of denial of UI or SI 

benefits within 10 days of the date RRB 

receives the claim. (Measure: % ≤ 10 

days) 

99.9% 99.9% 99.9% 99.9% 98.0% 

II-A-7. RRB makes a decision to pay or 

deny a benefit for a disabled applicant or 

family member within 100 days of the 

date the application is filed. (Measure: 

% ≤ 100 days) 

31.0% 17.4% 14.7% 11.3% 70.0% 

II-A-8. RRB makes a payment to a 

disabled applicant within 25 days of the 

date of decision or earliest payment date, 

whichever is later. 

(Measure: % < 25 days) 

95.8% 92.6% 92.5% 91.5% 94.0% 

II-A-9. Reduce the number of days 

elapsed between the date the appeal is 

filed and a decision is rendered. 

(Measure: average elapsed days) 

261 239 217 217 230 

43
 
 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2020 Performance Plan 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

2017 

Actual 

($113.5m) 

2018 

Actual 1/ 

($123.5m) 

2019 

Enact

($123.5

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

Goal leader: Crystal Coleman, Acting Director of Programs 

II-B-1. Offer electronic options to our 

customers, allowing them alternative 

ways to perform primary services via 

the Internet or interactive voice 

response systems. (Measure: Number 

of services available through 

electronic media) 

19 

services 

available 

19 services 

available 

19 services 

available 

20 

services 

available 

22 

services avai

II-B-2. Enable employers to use the 

Internet to conduct business with the 

RRB, in support of the Government 

Paperwork Elimination Act. 

a) Employers 

using ERS: 

(Measures: percentage of employers 

who use the on-line Employer 

Reporting System (ERS); number of 

services available through electronic 

media) 

b) Internet 

services: 

99.0% 99.0% 99.0% 99.3% 99.0% 

27 Internet 

services 

available 

27 Internet 

services 

available 

29 Internet 

services 

available 

30 Internet 

services 

available 

30 Internet se

available 

STRATEGIC GOAL III: Serve as Responsible Stewards for Our Customers’ Trust Funds and Agency Resources 

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

appropriately. 

Goal leader: Shawna Weekley, Chief Financial Officer 

III-A-1. Debts will be collected through 

billing, offset, reclamation, referral to 

outside collection programs, and a 

variety of other collection efforts. 

(Measure: total overpayments recovered 

in the fiscal year / total overpayments 

established in the fiscal year.) 

99.58% 90.73% 92.14% 91.70% 85.00% 

44
 
 

 

 

 

 

 

 

 

 

 

Railroad Retirement Board 

FY 2020 Performance Plan 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

2017 

Actual 

($113.5m) 

2018 

Actual 1/ 

($123.5m) 

201

Enact

($123.5

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

Goal leader III-B-1(a)(b) and III-B-3, 4, and 5: Crystal Coleman, Acting Director of Programs 

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

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

III-B-1. Achieve a railroad retirement benefit 

payment accuracy rate 8/ of at least 99%. 

a) Initial 

payments: 

(Measure: percent accuracy rate) 

b) Sample post 

recurring 

payments: 

99.72% 99.69% 98.89% 99.90% 9/ 99.60

99.91% 99.70% 99.94% 99.99% 9/ 99.60

III-B-2. Achieve a railroad unemployment/ 

sickness insurance benefit payment accuracy 

rate 8/ of at least 99%. 

a) Unemployment 

(Measure: percent accuracy rate) b) Sickness 

99.23% 99.36% 97.24% 96.09% 97.00

99.40% 99.94% 99.08% 100.00% 97.50

III-B-3. Overall Initial Disability 

Determination Accuracy. (Measure: % of 

Case Accuracy) 

95.8% 94.40% 94.40% Not Available 95.00

III-B-4. Maintain the level of Railroad 

Retirement Act (RRA) improper payments 

below the OMB threshold. (Measure: prior to 

FY14, below 2.5%; beginning FY14, below 

1.5%) 

0.58% 10/ 0.60% Not 

Available Not Available 1.00

III-B-5. Achieve a return of at least $3.60 for 

each dollar spent on program integrity 

activities. (Measure: recoverables and 

savings per dollar spent.) 

$4.49: 

$1.00 

$4.18: 

$1.00 

Not 

Available Not Available $3.8$1.0

45
 
 

 

 

 

 

 

Railroad Retirement Board 

FY 2020 Performance Plan 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

2017 

Actual 

($113.5m) 

2018 

Actual 1/ 

($123.5m) ($

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

Goal leader: Ram Murthy, Chief Information Officer 

III-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: RUIA 

XR, Medicare 

Database 

No: Tax 

database 

conversion 

incorporated 

Mainframe 

Applications 

Reengineering 

project. 

III-C-2. Deliver – Deliver on Budget. Percent of 

IT Projects costs within 10% of budgeted cost. 

New 

Performance 

Goal 

2016 

100% 100% 85% 

III-C-3. Deliver – Meet Customer Expectations. 

WWW.RRB.GOV Internet Services (Mainline and 

employer Reporting System) Continuous 

availability experienced by end users 

a) Continuous 

availability 

target 

b) Hours of 

outage allowed 

per month 

New 

Performance 

Goal 

2016 

98.72 99.2% 98.92% 

New 

Performance 

Goal 

2016 

9.38 6.52 hours 7.77 hours 

III-C-4. Innovate – Design for Modularity. Strategy for Continuity 

of Operations Improvements. 

New 

Performance 

Goal 

2017 

No 

Yes: 

Completed 

applying 

HTTPS-only 

standard to 

www.rrb.gov 

I

cl

en

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

investments that evaluated cloud alternatives. 

New 

Performance 

Goal 

2017 

50% 99.93% 

46
 
 Railroad Retirement Board 

FY 2020 Performance Plan 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

New 

Performance 

Goal 

2017 

2017 

Actual 

($113.5m) 

2018 

Actual 1/ 

($123.5m) ($

III-C-6. Protect – Email Data Loss Prevention. Percentage of 

externally bound emails and their attachments automatically 

encrypted that contain personally identifiable or credit card 

information 

99.82% 99.93% 

III-C-7. Protect – Percentage of agency employees required to use a 

Personal Identity Verification (PIV) card to authenticate. 

New 

Performance 

Goal 

2017 

74% 77% 

Un

Net

P

Net

47
 
 

 

 

 

 

 

 

 

Railroad Retirement 

Board 

FY 2020 Performance 

Plan 

2015 

Actual 

($111.225m) 

2016 

Actual 

($111.225m) 

2017 

Actual 

($113.5m) 

2018 

Actual 1/ 

($123.5m) 

2019 

Enacted 

($123.5m)

2

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

Goal leader: Ana M. Kocur, General Counsel 

III-D-1. Timely review 

information reported by the 

National Railroad Retirement 

Investment Trust to carry out 

RRB’s oversight responsibility 

under section 15(j) (5) (F) of the 

Railroad Retirement Act. Reports 

are to be reviewed within 30 days 

of receipt. (Measure: Yes/No) 

Yes Yes Yes Yes Yes 

Footnotes are following: 

1/ Actual results represent status as of September 30, 2018, unless otherwise noted. 2/ 

Amount includes $113,500,000 for the Limitation on Administration account and $10,000,000 for Information Technology Modernization. 3/ Amount includes $113,500,000 for the Limitation on Administration account and $2,725,000 for Information Technology Modernization. 4/ The FY 2020 goal has been lowered due to Retirement Survivor Benefits Division (RSBD) continuing to experience significant staff losse

sections. Training classes are being conducted to replace lost staff, but it takes much time to complete the class and become proficient in p

5/ Disability Benefits Division (DBD) is re-baselining the customer service standard. The last known process assessment was conducted in 

performance fell short of the customer service goal by 7.5%. In May 2016, a Gantt analysis identified that the disability process takes 245 d

increased staffing and revising business processes, DBD is determining a more appropriate goal.5/ Disability Benefits Division (DBD) i

service standard. The last known process assessment was conducted in 2010, which noted the 2009 performance fell short of the customer s

2016, a Gantt analysis identified that the disability process takes 245 days for a decision. Based on increased staffing and revising business pr

a more appropriate goal. 6/ The goal for II-B-1 initially included implementation of Internet - First Notice of Death (FNOD). The FY 2019 goal was increased to inclu

additional Internet service - Spouse/Divorced Spouse Application AA-3.7/ In FY 2019, no additional services will be added to the ERSNet 

improvements and enhancements to the 30 services that are currently available. 7/ In FY 2019, no additional services will be added to the ERSNet system. We will focus on improvements and enhancements to the 30 servic

available. This will also reduce the schedule for implementing new services, which resumes in FY 2020. 8/ The payment accuracy rate is the percentage of the dollars paid correctly as a result of adjudication actions performed. 

9/ The actual results represent status as of March 31, 2018. 10/ The actual IP rate for FY 2015 was adjusted to accurately show that fiscal year data reviewed matches fiscal year data reported. 

48
 
 

 

 

 

 

JUSTIFICATION OF ESTIMATES 

The Administration’s Proposed Appropriation Language 

DUAL BENEFITS PAYMENTS ACCOUNT 

For payment to the Dual Benefits Payments Account, authorized under section 15(d) of the 

Railroad Retirement Act of 1974, $16[9],000,000, which shall include amounts becoming 

available in fiscal year 2020[2019 ] pursuant to section 224(c)(1)(B) of Public Law 98–76; and 

in addition, an amount, not to exceed 2 [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 2019 appropriation was enacted on September 28, 2018, pursuant to the 

Department of Defense and Labor, Health and Human Services, and Education Appropriations 

Act, 2019 and Continuing Appropriations Act, 2019 (P.L. 115–245). (Departments of Labor, 

Health and Human Services, and Education, and Related Agencies Appropriations Act, 2019.) 

49
 
 

 

Explanation of Proposed Appropriation Language 

Appropriation language Explanation 

For payment to the Dual Benefits Payments 

Account, authorized under section 15(d) of 

the Railroad Retirement Act of 1974, 

$16[9],000,000, which shall include 

amounts becoming available in fiscal year 

2020[2019 ] pursuant to section 

224(c)(1)(B) of Public Law 98–76; and in 

addition, an amount, not to exceed 2 [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 2019 appropriation was 

enacted on September 28, 2018, pursuant 

to the Department of Defense and Labor, 

Health and Human Services, and Education 

Appropriations Act, 2019 and Continuing 

Appropriations Act, 2019 (P.L. 115–245). 

(Departments of Labor, Health and Human 

Services, and Education, and Related 

Agencies Appropriations Act, 2019.). 

The proposed appropriation language 

provides $16,000,000 to the Dual Benefits 

Payments Account for payment of vested 

dual benefits. Of the $16,000,000, it is 

estimated that $1 million will be derived 

from income tax revenues as provided by 

Section 224(c) (1) (B) of Public Law 98-76. 

Also, an additional reserve amount, not to 

exceed 2 percent, will be made available 

only if the product of recipients and the 

average benefit received exceeds the amount 

available. The monies provided to the Dual 

Benefits Payments Account are to be made 

available to the account on a monthly basis 

in 12 approximately equal amounts 

50
 
 

 

 

 

 

Authorizing Legislation 

2019 2020 

President’s 

Legislation Authorized Enacted Authorized Budget 

Railroad Retirement Act of 1974 

as amended: 

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

15(i)(2) 

Dual Benefits Payments Indefinite $19,000,000 a/ Indefinite $16,000,000 

a/	 A full-year 2019 appropriation was enacted on September 28, 2018 pursuant to the 

Department of Defense and Labor, Health and Human Services, and Education Appropriations 

Act, 2019 and Continuing Appropriations Act, 2019 (P.L. 115-245). 

Section 15(d) (1): 

"There is hereby created an account in the Treasury of the United States to be known 

as the Dual Benefits Payments Account. There is hereby authorized to be appropriated 

to such account for each fiscal year beginning with the fiscal year ending September 

30, 1982, such sums as are necessary to pay during such fiscal year the amounts of 

annuities estimated by the Board to be paid under sections 3(h), 4(e), and 4(h) of this 

Act and under sections 204(a)(3), 204(a)(4), 206(3), and 207(3) of Public Law 93­

445." 

Section 7(c) (1): 

"In any fiscal year, the total amounts paid under such sections shall not exceed the total 

sums appropriated to the Dual Benefits Payments Account for that fiscal year." 

Section 15(i) (2): 

"The Secretary of the Treasury shall, on a monthly basis, credit each account 

established in the Treasury for the payment of benefits under this Act for the 

proportionate amount of benefit checks (including interest thereon) drawn on each 

such Account more than six months previously but not presented for payment and not 

previously credited to such Account, to the extent provided in advance in appropriation 

Acts." 

51
 
 

 

 

Appropriations History Table 

Dual Benefits Payments Account a/ 

Year 

2011 

2012 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 

President’s 

Budget estimate to 

the Congress 

57,000,000 

51,000,000 

45,000,000 

39,000,000 

34,000,000 

29,000,000 

25,000,000 

22,000,000 

19,000,000 

16,000,000 

House allowance 

--­

--­

--­

--­

--­

--­

--­

22,000,000 

19,000,000 

Senate allowance 

--­

--­

--­

--­

--­

--­

--­

22,000,000 

19,000,000 

Appropriation/ 

continuing 

resolution 

56,886,000 b/ 

50,914,950 c/ 

50,914,950 d/ 

39,000,000 e/ 

34,000,000 f/ 

29,000,000 g/ 

25,000,000 h/ 

22,000,000 i/ 

19,000,000 j/ 

a/ For all amounts on the following table, the appropriation language provides that an additional amount, not to 

exceed 2 percent of the appropriation amount, shall become available under certain conditions to provide for full 

payment of vested dual benefits. The appropriation language also specifies that the amount made available will 

be credited to the account on a monthly basis in 12 approximately equal amounts. 

b/ Amount reflects the level of funding provided by the Department of Defense and Full-Year Continuing 

Appropriations Act, 2011 (P.L. 112-10). This amount reflects an appropriation of $57,000,000 less a rescission 

of $114,000. 

c/ Amount reflects an appropriation of $51,000,000, less a rescission of $85,050 provided by the Departments of 

Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2012 (P.L. 112­

74). 

d/ Amount reflects an appropriation of $50,914,950 provided by the Consolidated and Further Continuing 

Appropriation Act, 2013 (P.L. 113-6). 

e/ Amount reflects an appropriation of $39,000,000 provided by the Consolidated Appropriation Act, 2014 (P.L. 

113-76). 

f/ Amount reflects an appropriation of $34,000,000 provided by the Consolidated and Further Appropriation Act, 

2015 (P.L. 113-235). 

g/ Amount reflects an appropriation of $29,000,000 provided by the Consolidated Appropriations Act, 2016 

(P.L. 114-113). 

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

Account. 

i/ The Consolidated Appropriations Act, 2018 (P.L. 115-141) provided $22,000,000 for the Dual Benefits 

Payments Account. 

j/ Amount reflects an appropriation of $19,000,000 provided by the Department of Defense and Labor, Health and 

Human Services, and Education Appropriations Act, 2019 and Continuing Appropriations Act, 2019 (P.L. 115­

245). 

52
 
Funding Sources 

The proposed fiscal year 2020 appropriation language calls for funding from the following 

source. 

Funding sources Budget authority a/ 

General revenue $16,000,000 

[Of the $16,000,000 to be funded 

from general revenue, $1,000,000 is 

expected from income taxes on 

vested dual benefits.] 

a/	 The proposed appropriation language provides that "... an amount, not to exceed 2 

percent of the amount provided herein, shall be available proportional to the amount by 

which the product of recipients and the average benefit received exceeds the amount 

available for payment of vested dual benefits ...." 

53
 
 

 

 

 

 

 

 

Dual Benefits Payments Account 

Amounts Available for Obligation 

Appropriation, excluding 2% contingency 

reserve (general funds of the Treasury) 

Transfer from other accounts (Federal 

Payments to the Railroad Retirement 

Accounts) 

Subtotal: 

Less: 

Unobligated balance 

Fiscal Year 

2018 Actual 

$22,000,000 

598 a/ 

$22,002,000 

$1,779,969 

Fiscal Year 

2019 Enacted 

$19,000,000 

2,000 

$19,002,000 

--­

a/ 

Fiscal Year 

2020 

President’s 

Budget 

$16,000,000 

2,000 

$16,002,000 

--­

a/ 

Total obligations (payments to beneficiaries) $20,220,629 $19,002,000 $16,002,000 

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

54
 
 

 

 

 

Explanation of 2020 Request 

This is the 44th request for appropriations authorized by the Railroad Retirement Act of 

1974 to fund vested dual benefits received by railroad retirees who, under prior law, would 

have become covered by both the railroad retirement system and the social security system 

because railroad retirement was not fully coordinated with social security from 1937 to 

1974. 

Under laws in effect prior to 1975, a worker engaging in covered employment under both 

the Railroad Retirement Act and Social Security Act could receive benefits separately 

under both Acts. Because the social security benefit formula is weighted in favor of the 

low wage earner, the total of a worker’s benefits from both systems averaged more than 

annuities of railroad employees who worked in the rail industry exclusively, and who had 

paid proportionally higher retirement taxes for the purpose of receiving higher benefits. 

The cost of the dual benefits was borne by the railroad retirement system since they 

reduced the system’s income from its financial interchange with the social security system. 

This situation was the major cause of the poor financial condition of the railroad retirement 

system in the early 1970s. In order to improve the systems financial condition, the 

Railroad Retirement Act of 1974 provided that the tier I component of the railroad 

retirement annuity be reduced by any social security benefit. This essentially integrated 

the two systems and eliminated the advantage of qualifying for benefits under both 

systems. 

However, it was generally considered unfair to eliminate this advantage entirely for those 

already retired or close to retirement when the 1974 Act became effective. The 1974 Act, 

therefore, provided for a restoration of benefits which were considered vested at the end of 

1974. The restored amount was known as the “vested dual benefit.” 

After considering various alternatives, the Congress authorized general fund appropriations 

to finance the cost of phasing out dual benefits. The Congress considered it unfair to 

impose this cost on current and future railroad employees because such employees would 

not be permitted to receive dual benefits upon retirement (except where vested rights were 

involved). Similarly, the Congress believed that it would be unfair to impose this cost on 

railroads because railroads had not benefitted and had consistently opposed the creation 

and expansion of dual benefits. Financing the vested dual benefit component of railroad 

retirement annuities from general revenues was supported by a precedent regarding 

military service and by the fact that the dual benefit problem had been brought about by 

prior Congressional action repealing past dual benefit restrictions over the objections of the 

railroads. 

Under the 1974 Act, appropriations had been authorized from general revenues for the 

phase-out costs of vested dual benefits. The amounts were to be sufficient to fund vested 

dual benefits on a level payment basis over the years 1976-2000. Because there was no 

provision in the law to reduce vested dual benefits to a level that would be fully covered by 

the amount appropriated, railroad retirement taxes were being used to cover the shortfall in 

the appropriation from general revenues. This led to a drain on the Railroad Retirement 

Account and contributed to a cash flow crisis. 

55
 
 

 

To stop the resulting drain on the Railroad Retirement Account, the 1981 amendments 

changed vested dual benefits to a pay-as-you-go basis rather than a level-payment system. 

Starting in fiscal year 1982, vested dual benefits were to be reduced so as not to exceed the 

amount of the annual appropriation. 

The Railroad Retirement Solvency Act of 1983 provided that revenues generated from 

income taxes on vested dual benefits be credited to the Railroad Retirement Account for 

fiscal years 1984 through 1988, and thereafter to the Dual Benefits Payments Account. 

Thus, since fiscal year 1989, these taxes have been credited to the Dual Benefits Payments 

Account and applied as an offset to the amount of funding needed from general revenues. 

The fiscal year 2020 appropriation language provides for 12 monthly payments to this 

account from general revenues and specifies that $16,000,000 be appropriated for benefits. 

In addition, the proposed language provides that an additional amount not to exceed 2 

percent of the $16,000,000 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. 

56
 
 

 

 

JUSTIFICATION OF ESTIMATES 

The Administration’s Proposed Appropriation Language 

FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT ACCOUNTS 

For payment to the accounts established in the Treasury for the payment of benefits under the 

Railroad Retirement Act for interest earned on unnegotiated checks, $150,000, to remain 

available through September 30, 2021 [0], which shall be the maximum amount available for 

payment pursuant to section 417 of Public Law 98–76. 

Note: A full-year 2019 appropriation was enacted on September 28, 2018, pursuant to the 

Department of Defense and Labor, Health and Human Services, and Education 

Appropriations Act, 2019 and Continuing Appropriations Act, 2019 (P.L. 115–245). 

(Departments of Labor, Health and Human Services, and Education, and Related Agencies 

Appropriations Act, 2019.) 

57
 
 

 

Explanation of Proposed Appropriation Language 

Appropriation language Explanation 

For payment to the accounts established 

in the Treasury for the payment of 

benefits under the Railroad Retirement 

Act for interest earned on unnegotiated 

checks, $150,000, to remain available 

through September 30, 2021[0], which 

shall be the maximum amount available 

for payment pursuant to section 417 of 

Public Law 98–76. 

Note: A full-year 2019 appropriation was 

enacted on September 28, 2018, pursuant 

to the Department of Defense and Labor, 

Health and Human Services, and 

Education Appropriations Act, 2019 and 

Continuing Appropriations Act, 2019 

(P.L. 115–245). (Departments of Labor, 

Health and Human Services, and 

Education, and Related Agencies 

Appropriations Act, 2019.) 

Section 417 of Public Law 98-76 (Railroad 

Retirement Solvency Act of 1983) amended 

the Railroad Retirement Act of 1974 to 

provide for monthly transfers from the 

Treasury of amounts for benefit checks 

drawn 6 months earlier and not presented for 

payment. 

Since fiscal year 1991, the RRB does not 

receive credits to this account for the 

principal amount of uncashed railroad 

retirement checks under provisions of the 

Competitive Equality Banking Act of 1987. 

Instead, such funds, which are appropriated 

to the Treasury, are transferred directly to 

the railroad retirement accounts and the 

Dual Benefits Payments Account. Interest 

on uncashed railroad retirement checks, 

however, must still be appropriated in 

advance to this account. 

58
 
Authorizing Legislation 

2019 2020 

Legislation Authorized Enacted Authorized President’s 

Budget 

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." 

a/	 A full-year 2019 appropriation was enacted on September 28, 2018 pursuant to the 

Department of Defense and Labor, Health and Human Services, and Education 

Appropriations Act, 2019 and Continuing Appropriations Act, 2019 (P.L. 115-245). 

59
 
 

 

 

 

 

 

 

 

 

 

Appropriations History Table 

President’s Appropriation/ 

Fiscal Budget estimate House Senate continuing 

Year to the Congress allowance allowance resolution 

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 

2018 150,000 150,000 150,000 150,000 

2019 150,000 150,000 150,000 150,000 a/ 

2020 150,000 

a/ Reflects the appropriation made available by the Department of Defense and Labor, 

Health and Human Services, and Education Appropriations Act, 2019 and Continuing 

Appropriations Act, 2019 (P.L. 115-245). 

Note: Amounts appropriated are available for 2 years. 

60
 
 

 

 

 

 

 

 

 

 

 

 

 

Federal Payments to the Railroad Retirement Accounts 

(Appropriations for Uncashed Checks) 

Amounts Available for Obligation 

Fiscal year 

2020 

Fiscal year Fiscal year President’s 

2018 actual 2019 enacted Budget 

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 294,000 200,000 200,000 

Total obligations $6,000 $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 2020 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 2020 provides that funds would be available for 

2 years, through September 30, 2021. 

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Information Technology Investment Initiatives 

Our Mission Essential Functions are performed in a legacy mainframe environment that is costly 

and extremely resource heavy to protect customer data from increasing cyber threats. We are 

appreciative to have received $20M towards IT Modernization in FY 2018/2019 that has 

jumpstarted our modernization efforts. These funds will allow the RRB to make significant 

progress on its mission critical IT investments as shown in the costs table below. For fiscal year 

2020, OMB guidance provides for an IT investment level of $2,725,000. $1,690,000 for Legacy 

Systems Modernization Services (LSMS), $285,000 for Cybersecurity, $250,000 for Financial 

Management Integrated System (FMIS) Upgrade, and $500,000 for Records Management 

System; however, this level does not encompass all needed IT investments included in the 

Agency Request shown below. The IT investments initiatives that would remain unfunded 

include: components of the Legacy Systems Modernization Services, Enterprise Infrastructure 

Solutions, Citizen Services, Paperless Processing, and Records Management System. 

The following list of prioritized IT investment initiatives are critical to the RRB’s continued 

efforts to implement the President’s Management Agenda. As a result of the change in scope for 

the Legacy Systems Replatform Services (LSRS), to include a cloud based system increased the 

initial request from $3,000,000 to $4,900,000. Additionally, the increased project cost for LSRS, 

affected the costs for other projects, primarily the Enterprise Infrastructure Solutions, Financial 

Management Integrated System (FMIS) Upgrade, and Records Management. 

Investment FY 2018/19 

No-Year 

Agency’s 

Request 

2020 

President’s 

Budget 

2020 

Additional 

Need 

1 Legacy Systems Replatform Services 

(LSRS) 4,900,000 0 0 0 

2 Legacy Systems Modernization Services 

(LSMS) 8,467,103 9,099,150 1,690,000 7,409,150 

3 Enterprise Infrastructure Solutions (EIS) 2,650,000 200,000 0 200,000 

4 Citizen Services, Paperless Processing 1,910,897 712,650 0 712,650 

5 Cybersecurity 1,072,000 285,000 285,000 0 

6 Financial Management Integrated 

System (FMIS) Upgrade 1,000,000 250,000 250,000 0 

7 Records Management System 0 1,315,000 500,000 815,000 

$20,000,000 $11,861,800 $2,725,000 $9,136,800 

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IT Modernization Initiative Overall Cost Projection 

Information Technology 

Investments FY 2018/19 

No-Year a/ 

Agency’s 

Request 

2020b/ 

FY 2021 FY 2022 Total c/ 

Mainframe Applications Replatform 4,900,000 0 0 0 4,900,000 

Legacy Systems Modernization 

Services 8,467,103 9,099,150 5,730,000 3,510,441 26,806,694 

Enterprise Infrastructure 

Solutions (EIS) 2,650,000 200,000 0 0 2,850,000 

Citizen Services, Paperless 

Processing 1,910,897 712,650 600,000 600,000 3,823,547 

Cybersecurity and Privacy 1,072,000 285,000 100,000 100,000 1,557,000 

Financial Management Integrated 

System Upgrade 1,000,000 250,000 0 0 1,250,000 

Records Management System 0 1,315,000 0 0 1,315,000 

TOTAL $20,000,000 $11,861,800 $6,430,000 $4,210,441 $42,502,241 

a/ Amounts reflect funding pursuant to Public Laws 115-114, Consolidated Appropriations Act, 2018, and 

115-245, Department of Defense and Labor, Health and Human Services, and Education Appropriations 

Act, 2019 and Continuing Appropriations Act, 2019. Both Public Laws provided $10 million in funding, 

a total of $20 million, for information and technology investment initiatives. 

b/ Amounts reflect funding at the agency request level. 

c/ Amounts based upon assumption that funding will be received for previous fiscal years. 

Note:	 The table is a roadmap for the RRB’s IT Modernization project. It provides estimated costs and an 

implementation timeline. The project will help the RRB deliver better citizen centric services, 

provide excellent customer service, effectively steward taxpayer dollars and safeguard trust fund 

assets. 

64
 
 

 

 

 

 

 

 

 

Legacy Systems Modernization Services (LSMS) 

Investment 

Agency’s 

Request 

2020 

President’s 

Budget 

2020 

Additional 

Need 

Legacy Systems Modernization Services (LSMS) 9,099,150 1,690,000 7,409,150 

The RRB’s Legacy Systems Modernization Services (LSMS) project is the RRB’s first priority 

for FY 2020 and directly aligns to the RRB Agency Reform Plan’s first proposal to “Improve 

Organizational Efficiency and Effectiveness.” LSMS will complete the business process reengineering (BPR) assessment in FY 2019. The agency’s development and engineering teams 

will focus on the 10-15 core services, in benefit processing and payment systems. The remaining 

can be outsourced as a shared service in the cloud. This is an opportunity to rethink agency 

business processes and how best to fulfill the mission. To facilitate this thinking, we contracted 

Subject Matter Experts to deliver a blueprint. LSMS will then continue based on the blueprint to 

achieve the transformation, namely the closely tied services in terms of Imaging, Records 

Management, Prescriptive Analytics, and Audit/Compliance, along with the Private Cloud for 

storage and resource heavy workloads. Also based on the blueprint, the agency will leverage 

cloud services for Case Management, Customer Management, Desktop-as-a-Service, DevOps, 

Continuous Monitoring, Website portal, and Citizen Service solutions. 

Enterprise Infrastructure Solutions (EIS) 

Investment 

Agency’s 

Request 

2020 

President’s 

Budget 

2020 

Additional 

Need 

Enterprise Infrastructure Solutions (EIS) 200,000 0 200,000 

The Enterprise Infrastructure Solutions (EIS) contract and related directly aligns to the RRB 

Agency Reform Plan’s third proposal to “Improve Organizational Efficiency and Effectiveness.” 

GSA has established this single new EIS program, to replace all of the existing contract vehicles 

for government telecommunications and infrastructure solutions. The transition gives RRB the 

opportunity to consolidate network services, as well as to re-architect and modernize our network 

infrastructure. 

Using the assigned $2.4M in FY 2019, the RRB will move forward with the EIS transition for 

network related equipment, services and parallel operations as needed during the transition. 

With the assigned funding, we will issue four major solicitations. The first solicitation will be 

for Web Content delivery services. These services will provide a publicly accessible web 

interface to access www.rrb.gov. The second solicitation will address the agencies Enterprisewide Voice Communications. Services in the Voice solicitation include Automatic Call 

Distribution (ACD), Interactive Voice Response (IVR), call conferencing, station-to-station 

calling (on-network and off-network), National Toll Free Services and other collaboration tools. 

The third solicitation is the RRB’s Wide Area Network (WAN) Multiprotocol Label Switching 

(MPLS) data communications. This will include the Field Offices and other remote location data 

communications. The fourth solicitation will address to the RRB’s non-MPLS WAN. This will 

65
 
 

 

 

 

include the agencies public internet connectivity, other inter-agencies and business partner data 

network connectivity. 

Much of the transition will migrate existing technology to similar or enhanced technology in a 

“like for like” fashion, where applicable. As applicable the RRB will pursue technological 

enhancements and efficiencies factoring in return on investment, capital expense, and human 

capital effort. This EIS contract enables RRB to reinvent its network infrastructure. By 

combining the previously implemented disparate Voice over IP (VoIP) systems at the Field 

locations and the HQ, we enable a uniform 5-digit dialing across all nationwide offices of the 

RRB. With the emerging cloud solutions we optimize our network backbone connectivity to 

overcome latency issues when our users access cloud services. The market trend is in advanced 

automation combined with just in time analytics to create networking solutions. Where feasible 

we leverage software based networking services, namely Network Virtualization and SDWAN 

services. 

Citizen Services / Paperless Processing 

Investment 

Agency’s 

Request 

2020 

President’s 

Budget 

2020 

Additional 

Need 

Citizen Services / Paperless Processing 712,650 0 712,650 

RRB’s Citizen Services / Paperless Processing initiative is the RRB’s third priority and directly 

aligns to the RRB Agency Reform Plan’s fourth proposal to “Improve Organizational Efficiency 

and Effectiveness.” The RRB proposes to establish an electronic imaging and records system, 

which will eliminate a significant portion of its paper-based processing. RRB will also migrate 

to paperless disability program processing as a future automation goal. 

Automating manual processes is critical for increasing employee efficiency and effectiveness in 

a benefits-paying environment. In addition, migration to an electronic method of processing 

disability claims would provide a means for real-time detection and prevention of disability fraud 

by facilitating greater data modeling to reduce fraud, waste and abuse while also enabling the use 

of data mining techniques that will assist auditors and investigators. 

Enhancements to the current system will enable the electronic export of e-mails, direct receipt of 

third party documents and faxes, as well as streamlining the process of scanning a claim folder to 

imaging. 

66
 
 

 

 

 

 

Cybersecurity 

Investment 

Agency’s 

Request 

2020 

President’s 

Budget 

2020 

Additional 

Need 

Cybersecurity 285,000 285,000 0 

The agency’s cybersecurity strategy is to make attacks ineffective through prevention and 

detection through continuous monitoring. Funding will enhance the RRB’s information security 

and privacy program activities, which directly support the President’s Executive Order on 

Strengthening the Cybersecurity of Federal Networks and Critical Infrastructure. Because of 

the sensitivities related to security and privacy program activities, specifics for this element are 

intentionally omitted and available internally only. In general, RRB mitigates risk through the 

complementary use of technology, such as firewalls, integrity checkers, virus scanners, intrusion 

detection systems, anti-virus software and other special security devices, and well-trained 

personnel. To supplement the agency’s continuous monitoring strategy, we recently formed a 

partnership with the Department of Homeland Security (DHS) and enrolled in the Continuous 

Diagnostic Mitigation (CDM) program. The CDM program increases the agency’s visibility of 

potential threats continuously. 

Financial Management Integrated System Upgrade 

Investment 

Agency’s 

Request 

2020 

President’s 

Budget 

2020 

Additional 

Need 

Financial Management Integrated 

System (FMIS) Upgrade 250,000 250,000 0 

In compliance with Financial Management Line of Business (FMLOB) guidance RRB 

commenced using a core financial management system in a cloud environment hosted by a 

shared service provider (CGI Federal Inc.) at the beginning of fiscal year 2014. The system, 

called the Financial Management Integrated System (FMIS), currently supports the processing 

and reporting functions of budget preparation and execution, acquisition and purchasing, 

accounts payable and disbursement, general ledger, external reporting, fixed assets and accounts 

receivable. The system is supported by CGI Federal’s proprietary financial system software – 

Momentum. The RRB is currently using the version of Momentum that was available at the time 

of migration - 7.0. Since that time, CGI has released five updated versions of Momentum 

containing significant added functional enhancements and regulatory updates that reflect current 

Federal guidance and mandates. The funding will support a migration by RRB to a more current 

version of the Momentum software, either 7.4, 7.5 or 7.6, and increase the agency’s ability to 

meet its business and reporting requirements efficiently and timely. 

67
 
 

Records Management System 

Investment Agency’s 

Request 

2020 

President’s 

Budget 

2020 

Additional 

Need 

Records Management System 1,315,000 500,000 815,000 

OMB memorandum M-12-18, Managing Government Records Directive, mandated that by 

Fiscal Year 2019, all Executive Branch agencies implement efforts to reform records 

management policies and practices and to develop a 21st-century framework for the management 

of Government records. The RRB did not receive funding to meet this mandate. 

The RRB acquired contractor services in fiscal year 2015 to perform an assessment of its records 

management program to meet the requirements of OMB M-12-18. Deliverables included an 

evaluation of current records management processes with a focus on identification of areas 

where improvement is necessary, and the development of a tactical action plan to meet the 

requirements of OMB M-12-18 going forward in future fiscal years. The contract assessment 

included a recommendation that the RRB implement a Records Management System (RMS) 

based on the action plan. 

This funding will support RRB’s plan to develop and implement a new cloud based RMS. When 

complete, the RMS will identify, maintain, classify and dispose of RRB electronic records, 

including disability related records and e-mails, according to specified records disposition 

policies. Completion of this project will support our third proposal to “Improve Organizational 

Efficiency and Effectiveness” as discussed in the RRB’s Agency Reform Plan in accordance 

with OMB Guidance M-17-22. 

68
 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RAILROAD RETIREMENT BOARD
 

Summary of Full-Time Equivalent Employment
 

Series Rank 

FY 2018 

actual 

FY 2019 

estimate 

FY 2020 

estimate 

Executive Level III 0 1 1 

Level IV 2 2 2 

Senior Executive Service ES-00 7 7 7 

General Schedule/Management GS/GM-15 38 38 35 

GS/GM-14 67 65 61 

GS/GM-13 99 97 90 

GS-12 209 204 190 

GS-11 109 106 99 

GS-10 131 128 119 

GS-9 23 22 21 

GS-8 46 45 42 

GS-7 32 31 29 

GS-6 8 8 7 

GS-5 38 37 35 

GS-4 7 7 6 

GS-3 0 0 0 

GS-2 0 0 0 

All Levels Combined Total 816 798 744 

Positions in the Office of Inspector General are excluded. 

Note: The estimated 744 FTEs, provided by the President’s proposed budget, is 106 FTEs less 

than what is needed to sustain the agency’s mission essential functions. Funding for the 

agency’s Information Technology investments would improve the agency’s ability to sustain 

organizational performance at lower FTE levels in the future. 

69
 
 

AVERAGE ES/SES AND GS/GM SALARIES AND BENEFITS 

AND GS/GM GRADES 

FY 2018 FY 2019 FY 2020 

actual Estimate estimate 

Average ES/SES salary $179,472 $180,263 $180,263
 

Average ES/SES benefits 63,501 62,481 62,481
 

Total, ES/SES 242,973 242,744 242,744 

Average GS/GM salary $85,200 $88,788 $88,261
 

Average GS/GM benefits 30,146 30,775 30,282
 

Total, GS/GM 115,346 119,563 118,543 

Average GS/GM grade 12.3 12.4 12.4 

RAILROAD RETIREMENT BOARD
 

EMPLOYEE RELOCATION EXPENSES
 

Past Year Current Year Budget Year 

FY 2018 FY 2019 FY 2020 

Total $0 $180,000 $300,000 

70
 
 

 

 

RAILROAD RETIREMENT BOARD
 

LEGISLATIVE PROPOSALS FOR FISCAL YEAR 2020
 

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 to allow the Railroad Retirement Board to 

utilize student and recent graduate hiring authorities available to other Federal 

agencies. 

The Railroad Retirement Board (RRB) is not permitted to use the excepted service hiring 

authorities established by the Office of Personnel Management (OPM) for student and 

recent graduate hiring due to language in the Railroad Retirement Act's establishing 

legislation. If the language proposed below is included in the Appropriations Bill, it 

would allow the RRB to use current OPM student and recent graduate hiring authorities 

to support succession planning efforts. 

Provided, that notwithstanding section 7(b)(9) of the Railroad Retirement Act, 

this limitation may be used to hire students attending qualifying educational 

institutions or individuals who have recently completed qualifying educational 

programs using current excepted hiring authorities established by the Office of 

Personnel Management. 

3.	 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. 

71
 
 

 

RAILROAD RETIREMENT BOARD
 

LEGISLATIVE PROPOSALS FOR FISCAL YEAR 2020
 

4.	 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. 

The Fiscal Year (FY) 2017 Budget Submission and FY 2018 Congressional Justification 

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 FY 2017 Budget submission and FY 

2018 Congressional Justification 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 Act and 

Railroad Unemployment Insurance Act based in part on a claimant’s earnings. The RRB 

currently conducts wage matches with all 50 States to detect improper payments. The FY 

2017 Budget submission and FY 2018 Congressional Justification proposed, and now the 

FY 2020 Budget submission proposes 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 Act and 

Railroad Unemployment Insurance Act. 

72