Laurel outlook., 1947-05-21
BENEFITS
START JULY | FOR
RAILROAD WORKERS

Beginning July 1 approximately
10000 railroad employees in Montana
will be protected by the new sickness
insurance system for railroad work
ers, according to H. j. Woolsey, dis
trict manager of the Railroad Retire
ment board. He estimates that
$350,000 in sickness benefits will be
paid out in this area in the COM
ing year. The program was estab-
lished by amendments of the rail-
road unemployment insurance act
passed by congress last July. I'm
der this plan, railroad employees will
become one of the first groups in
the nation to be insured under a gov
eminent plan against loss of wages
from temporary disability. "Any
kind of illness or injury will be COW
cred, regardless of how or where it
occurred" Woolsey said.
The new sickness benefits, like
the benefits now payable for unem-
ployment due to lack of work, will
be financed through taxes paid by
the railroads under the railroad I'M
employment insurance tax. No tax
for this purpose will be paid by the
employees.
Here is how the new program will
operate:
To become eligible for benefits
after July 1, the employee must (1)
have earned $3.50 or more in railroad
employment in 1916; (2) be unable
to work for at least seven days out
of a consecutive 14-day period, and
(3) mail an application and a doc
tors statement showing he is unable
to work, to an office of the railroad
retirement board within seven days
after the first day he wishes to
claim.
Claims for sickness benefits, like
those for unemployment benefits,
will cover periods of ID consecutive |
days. In the first claim period, an
employee will be paid for every day
of sickness ver seven. After the /
first period, he will receive benefits /
for each day over four. /
Woolsey explained that the amount /
of benefits an employee may receive E
will vary from $1.75 to SIS a day, de-
pending on the amount of his 1916 S
earnings. The lowest rate, SITS, is /
the employee who earned from {
$3.50 to $199, and the highest, SIS, (
is for the man who made $4,000 or (
more. The maximum that any work (
er can draw in a benefit year ranges &
$227.50 to $3.50. This will 4
benefits for a continuous
illness of &c weeks after the seven 4
lay waiting period. IN
Since the benefits are intended as \
insurance against the wage loss re- 4
from liability, no benefits 4
ire payable to employees who con- =
.inue to receive their regular wages, q
vacation pay, Or pay for time lost. &
Moreover, employees are not entitled Is
o sickness benefits for any day or E
lays for which they are paid unem- rs
,loyment insurance benefits, or sick q
less, maternity, or unemployment Is
compensation under some other fed rs
raj o. state law. If retirement ~
r paid under the railroad IS
act OF the social security M
and the sickness benefits are M
only the difference may be M
aid. However, if employees belong M
o a railroad relief association or a @
raternal order or carry insurance M
Nth a private firm and receive M
enefits from one or more of these M
ources, they may be paid sickness M
enefits also. IN
The freedom of employees who M
work-connected disabilities to rs
ecover damages through court ac- M
ion or to make settlements with M
leir employers is not affected in M
ny way by the sickness insurance M
rogram, Woolsey said. The law M
rovides, however, that if sickness M
enefits are paid for the same dis M
bility, the board is entitled to re- M
,ver the amount of the sickness Isl
enefits from the railroad out of the ISL
tt1ement I'M