Railroad Retirement Board Labor Member John Bragg released the following message on Aug. 4:
Brothers and Sisters:
RRB Labor Member John Bragg
In my last update on July 9, 2020, I informed you of correspondence that the Railroad Retirement Board (RRB) received from the White House alleging that the National Railroad Retirement Investment Trust (NRRIT) was investing in companies which posed national security threats and raised humanitarian concerns. We were assured by NRRIT that it was not investing in these companies and that it has screening processes in place that identify those companies so that it does not and will not invest in them. Given the seriousness of the allegations, the RRB Board members assured the White House that a follow up with NRRIT would occur. The RRB Board Members sent a letter to NRRIT, again sharing some concerns, and followed up with a conference call on July 29th. NRRIT formally responded to the concerns raised in a letter dated July 30, 2020. That letter is attached for your viewing.
I want to reiterate that our trust fund is stable and NRRIT’s investments are producing the returns needed to ensure the stability of the fund well into the future. Every railroader has the right to retire with financial security and a sense of dignity. The RRB, with the help of NRRIT and its investments, helps ensure that right.
Labor Member, Railroad Retirement Board
A letter issued from the Labor Member of the Railroad Retirement Board, John Bragg, addressed criticism by White House staff leveled toward RRB regarding investments in Chinese enterprises. Bragg’s response is reproduced below and links to supporting documentation are also available in the text below.
July 9, 2020
Brothers and Sisters:
As many of you may know, our retirement trust fund is one of the healthiest in the country. The National Railroad Retirement Investment Trust (NRRIT), manages and makes the investment decisions of the railroad retirement funds and to date has helped produce returns that secure our trust fund well into the future. NRRIT is an independent non-federal entity governed by a seven-member Board, with three selected by rail management, three selected by rail labor, and one independent trustee selected by the six rail trustees. The best interest of the trust fund and the security that it provides to the rail community is always at the forefront of their duties.
However, just this week, the Chairman of the RRB received a letter from Larry Kudlow, Director of the National Economic Council, along with National Security Adviser Robert O’Brien expressing concerns over NRRIT’s investment in Chinese companies. The letter alleged that NRRIT was investing in two Chinese companies specifically that pose an economic risk to the trust funds of railroad employees. NRRIT had already assured us last month that it did not hold any interest in the companies named in the letter.
In my last update, I explained that Phase 2 of the Railroad Retirement Board’s (RRB) CARES Act implementation plan was targeted for completion by the end of May. Phase 2 of the RRB’s plan provides for the additional $1,200 per registration period for claims beginning April 1, 2020, or later. I am happy to report that final testing is underway as I draft this message. Barring any unforeseen complications, we anticipate making the first payments under Phase 2 within a week. I am grateful for the commitment of RRB employees who have worked tirelessly to implement computer programming changes to issue these payments, in recognition that they are crucial to our brothers and sisters in the railroad community.
RRB Labor Member John Bragg
Recently, we have been receiving inquiries regarding railroad employees filing for unemployment insurance (UI) benefits with the RRB while being compensated for work as union representatives. Employees must report all full-time and part-time work to the RRB when filing for benefits, including work as a union representative. If pay is received for a particular day, the employee should not claim the day as a day of unemployment. Instead, the employee should report the pay on the claim form with the appropriate code (for example, ‘E’ for a day employed, or ‘P’ for a vacation day or holiday pay). There are certain conditions where part-time work does not affect entitlement to benefits. In general, if the pay is no more than $15 a day for work which is substantially less than full-time and not inconsistent with the holding of full-time employment, it may be considered “subsidiary remuneration” and will not affect payment of UI benefits. Employees should keep in mind that the RRB must make a determination in advance of whether benefits are payable for days where part-time work was performed. Following are 2 examples provided for illustrative purposes:
Example 1: A claimant receives a salary of $350 per month for serving as secretary-treasurer of the local lodge of his union. He performs a variety of duties at his own convenience while holding down a full-time railroad job in his craft. The average payment per day is not more than $15 and therefore it will likely be determined to be subsidiary remuneration. If the claimant is laid off from his full-time railroad job but still receives $350 per month union salary, he should contact the RRB to see if unemployment benefits may be paid to him.
Example 2: A claimant receives a salary of $500 per month for serving as secretary-treasurer of the local lodge of his union. He performs a variety of duties at his own convenience while holding down a full-time railroad job in his craft. The average payment per day is more than $15 and therefore it will likely be determined not to be subsidiary remuneration. If the claimant is laid off from his full-time railroad job but still receives $500 per month union salary, it is likely no UI benefits would be payable as UI benefits would only be payable if the amount he was paid for the union work was subsidiary remuneration.
Additional guidance on the effects of part-time work and whether the compensation paid for such work meets the definition of subsidiary remuneration can be obtained by contacting the RRB at 1-877-772-5772.
A message from John Bragg, the Railroad Retirement Board’s labor member, released this week stated that the increased $1,200 in unemployment benefits from the CARES Act will begin to be deposited toward the end of the month.
“We do not have an implementation date as of yet, but barring unforeseen complications, (we) hope to have Phase 2 completed by the end of the month,” Bragg stated. “Our team is working on the necessary programming changes to provide for those payments.”
The payment of the additional $1,200 biweekly per registration period for unemployment claims beginning April 1, 2020, or later will be paid retroactively to April 1 once the necessary adjustments are made to the RRB’s system.
“I assure you that agency employees recognize the lifeline that these benefits represent for the railroad community and all appropriate resources are being directed towards completing this work as soon as possible,” Bragg said.
The first phase of CARES Act unemployment assistance for rail workers required RRB to identify all employees who exhausted their regular UI benefits during the benefit year that began July 1, 2019, establish new extended UI periods and lengthen existing extended UI benefit periods as appropriate and pay any denied days of unemployment already on record.
RRB also sent UI claimants a letter of the payment actions and mailed any needed claim forms to bring claimants current so they can continue to receive the extended benefits. For those who file their claims electronically, the RRB loaded appropriate claim forms to their online accounts so that individuals can file them online through myRRB on the website RRB.gov.
I wanted to send out another update on what is going on at the agency. We have received inquiries regarding Pandemic Unemployment Assistance (PUA) that was established under the CARES Act and whether railroaders may be eligible for benefits under that program if they are not eligible for Railroad Unemployment Insurance Benefits (RUIA) benefits. The Department of Labor (DoL) is responsible for giving guidance to the states regarding the PUA benefits, so we asked the Railroad Retirement Board’s (RRB) General Counsel to reach out to the DoL. The RRB’s General Counsel has been advised by the DoL that nothing in the PUA provisions prohibit railroaders from being eligible for these benefits if they otherwise qualify. Similarly, the RRB’s General Counsel has found that there is nothing in the RUIA that prohibits railroaders from receiving PUA benefits if they are not receiving RUIA benefits. So as a result, I would recommend that if your members have been denied RUIA benefits, they check with their state unemployment services to see if they are eligible for PUA benefits. To find out the application process in each state, you can refer workers to the Unemployment Benefit Finder at the following website:
We have also received questions about the $1,200 one-time economic relief payment. The Department of Treasury is responsible for making those payments, so unfortunately, we do not have information about the timing of those payments. Information about the economic relief payments can be found at the following link: https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know
Though not related to COVID-19, I wanted to inform you of a new hire at the RRB. As you may remember from previous updates, the Board has been trying to hire a Chief Medical Officer. A new CMO, Dr. Elizabeth Bonson, has been hired and starts today. We hope that the CMO’s presence at the agency will help make the disability process more efficient.
Finally, as you know, the RRB is located in Chicago and this week, the governor of Illinois extended the stay-at-home order through May 30. I anticipate that the agency headquarters will continue to primarily work remotely. Regarding the field offices, although not all states have the same limitations as Illinois, at present it is my recommendation that it is in the best interests of agency personnel and the railroad population we serve to maintain the current work environment for all offices. Consequently, for the time being, field offices will remain closed to the public and staff will work remotely with periodic visits to the office for administrative tasks.
Labor member, Railroad Retirement Board
The purpose of this notice is to update you on how COVID-19 is impacting operations at the Railroad Retirement Board (RRB). Be assured, while it is not business as usual, the agency remains open for business. Listed below are some of the more notable changes. Last week, my office sent a press release to rail labor on some of these topics. Hopefully this message will include more detailed information for you and your members.
Field Service Operations:
Last week, my office sent a press release to rail labor advising that field offices are closed to the public. Whenever possible, agency personnel, including field personnel, are working from home. Unfortunately, we expect delays with processing incoming work because as you know, much of our work is not automated. We receive applications and claims for both unemployment and sickness by mail and by fax. Because of safety concerns surrounding COVID-19, staff is only going into the office or to the post office on Tuesdays and Thursdays.
Because of our concern regarding the delay in processing paper applications and claims, we are encouraging railroaders to set up myRRB.gov accounts on the RRB.gov website. I have attached information about all the services available through that account. Please feel free to share with your memberships. With that account, an employee can file for and submit claims for unemployment. A railroader can also submit sickness claims, though not the initial application. Usually, an initial sickness application is either mailed or faxed in from the employee’s doctor’s office to the agency at (312) 751-7185. If an employee is unable to do that or if delays persist, please contact my office at (312) 751-4905 and my staff will assist you in any way they can.
We have received questions regarding the continuation of retirement and disability benefits. Fortunately, that is overall an automated process and we do not expect any delays in paying those already established benefits. In addition, our actuary has assured us that the rail trust funds are well-positioned to pay all retirement, survivor, unemployment and sickness benefits. We are actively addressing questions regarding benefits payable under the RUIA and special circumstances raised by COVID-19.
Related to legislative changes, there have been congressional proposals to remove sequestration from unemployment and sickness benefits; waive the statutory 7-day waiting period for unemployment and sickness benefits; increase the amount of unemployment benefits; and extend the duration of unemployment benefits. There have also been proposals to increase the RRB’s administrative budget in order to account for increased costs related to COVID-19. My staff, along with the agency’s Office of Legislative Affairs and other agency subject matter experts, have worked with congressional staffers as well as your unions to convey the information needed in order for the legislation to move forward.
These are trying times and the agency is doing its best to continue to pay the right people, the right benefits, at the right time. Things are changing quickly and I will update you in the future as the RRB makes adjustments. In the meantime, if you have any questions or problems, I and my staff are always available to assist.