The Republican tax bill would result in millions of dollars in cuts to the Railroad Unemployment Insurance Trust Fund and take funds away from out-of-work employees. Tell your senators and representatives to VOTE NO.
Next week, the House and Senate are expected to vote on a tax bill that is expected to add $1.5 trillion to $2 trillion to the federal deficit in the form of corporate and individual tax cuts. According to estimates, the Railroad Unemployment Insurance Trust Fund could lose as much as $9 million without any subsequent action by Congress under a 2010 budget process known as sequestration.
“Required spending reductions would significantly exceed the total resources available to be sequestered,” said Michele Neuendorf, a Railroad Retirement Board (RRB) labor member counsel, in an email. “This would have the practical result of a 100% sequestration of all non-exempt direct spending accounts including the funds from the Railroad Unemployment Insurance Trust Fund which is used to pay unemployment and sickness benefits.”
Under the federal “Pay-As-You-Go” (PAYGO) Act of 2010, federal spending is required to balance or offset any increases to the federal budget deficit (also known as sequestration). As a result, the tax bill would trigger automatic budget cuts across all federal programs including the RRB’s Railroad Unemployment Trust Fund, which is targeted for a 6.6 percent cut or approximately $9 million in the 2018 fiscal year by the administration.
“This tax proposal is Robin Hood caught in reverse,” said SMART Transportation Division National Legislative Director John Risch. “It would take from the poor and give to the rich. If the tax bill becomes law, the railroads will still be able to deduct money that they spend on union-busting lawyers while our members will no longer be able to deduct their union dues. The corporate tax rate for the big railroads will go from 35% to 21% while ours will stay the same with fewer deductions.”
It also means that $9 million intended for ailing and unemployed rail workers doesn’t go where it was supposed to. Instead it will go into the pockets of corporations and the well-to-do.
“Every person in America should be outraged that the Republican tax bill will borrow $1.5 trillion to $2.5 trillion to fund tax cuts for the wealthy while leaving no room for future federal investments toward infrastructure projects such as airports, transit systems, and passenger railroads,” Risch said. “I’ve been in the business of government policy since the 1980s and this is simply the worst tax proposal I have ever seen. Economists across the political spectrum are condemning this plan and the Republicans are so desperate for some sort of ‘win’ they are moving forward with little to no transparency or accountability to their constituents.”
Time is running out. A vote is planned for next week. Call your senators and representatives and urge them to vote against the tax bill.
In light of the recent furloughs by Union Pacific and BNSF railroads, below is a Q&A offered by the Railroad Retirement Board (RRB) addressing common questions about unemployment benefits.
To be eligible for unemployment benefits from the RRB, furloughed members must have had railroad earnings of at least $3,600 in 2014 and must also have five months of service in 2014 with a railroad. If you do not meet these requirements, you may be entitled to unemployment benefits from your state of residence.
Unemployment and sickness benefits for railroad employees
(Published July 2015 by the Railroad Retirement Board)
The Railroad Retirement Board (RRB) administers the Railroad Unemployment Insurance Act, which provides two kinds of benefits for qualified railroaders: unemployment benefits for those who become unemployed but are ready, willing and able to work; and sickness benefits for those who are unable to work because of sickness or injury. Sickness benefits are also payable to female rail workers for periods of time when they are unable to work because of pregnancy and childbirth. A new benefit year begins each July 1.
The following questions and answers describe these benefits, their eligibility requirements, and how to claim them.
1. What are the eligibility requirements for railroad unemployment and sickness benefits in July 2015? To qualify for normal railroad unemployment or sickness benefits, an employee must have had railroad earnings of at least $3,600 in calendar year 2014, counting no more than $1,440 for any month. Those who were first employed in the rail industry in 2014 must also have at least five months of creditable railroad service in 2014.
Under certain conditions, employees who do not qualify on the basis of their 2014 earnings may still be able to receive benefits in the new benefit year. Employees with at least 10 years of service (120 or more cumulative months of service) who received normal benefits in the benefit year ending June 30, 2015, may be eligible for extended benefits, and employees with at least 10 years of service (120 or more cumulative months of service) might qualify for accelerated benefits if they have rail earnings of at least $3,637.50 in 2015, not counting earnings of more than $1,455 a month.
In order to qualify for extended unemployment benefits, a claimant must not have voluntarily quit work without good cause and not have voluntarily retired. To qualify for extended sickness benefits, a claimant must not have voluntarily retired and must be under age 65.
To be eligible for accelerated benefits, a claimant must have 14 or more consecutive days of unemployment or sickness; not have voluntarily retired or, if claiming unemployment benefits, quit work without good cause; and be under age 65 when claiming sickness benefits.
2. What is the daily benefit rate payable in the new benefit year beginning July 1, 2015? Almost all employees will qualify for the new maximum daily benefit rate of $72. Benefits are generally payable for the number of days of unemployment or sickness over four in 14-day claim periods, which yields $720 for each two full weeks of unemployment or sickness. Sickness benefits payable for the first 6 months after the month the employee last worked are subject to tier I railroad retirement payroll taxes, unless benefits are being paid for an on-the-job injury. (Claimants should be aware that as a result of a sequestration order under the Budget Control Act of 2011, the RRB will reduce unemployment and sickness benefits by 7.3 percent through September 30, 2015. As a result, the total maximum amount payable in a 2-week period covering 10 days of unemployment or sickness will be $667.44. The maximum amount payable for sickness benefits subject to tier I payroll taxes of 7.65 percent will be $616.38 over two weeks. Future reductions, should they occur, will be calculated based on applicable law.)
3. How long are these benefits payable? Normal unemployment or sickness benefits are each payable for up to 130 days (26 weeks) in a benefit year. The total amount of each kind of benefit which may be paid in the new benefit year cannot exceed the employee’s railroad earnings in calendar year 2014, counting earnings up to $1,860 per month.
If normal benefits are exhausted, extended benefits are payable for up to 65 days (during 7 consecutive 14-day claim periods) to employees with at least 10 years of service (120 or more cumulative service months).
4. What is the waiting-period requirement for unemployment and sickness benefits? Benefits are normally paid for the number of days of unemployment or sickness over four in 14-day registration periods. Initial sickness claims must also begin with four consecutive days of sickness. However, during the first 14-day claim period in a benefit year, benefits are only payable for each day of unemployment or sickness in excess of seven which, in effect, provides a one-week waiting period. (If an employee has at least five days of unemployment or five days of sickness in a 14-day period, he or she should still file for benefits.) Separate waiting periods are required for unemployment and sickness benefits. However, only one seven-day waiting period is generally required during any period of continuing unemployment or sickness, even if that period continues into a subsequent benefit year.
5. Are there special waiting-period requirements if unemployment is due to a strike? If a worker is unemployed because of a strike conducted in accordance with the Railway Labor Act, benefits are not payable for days of unemployment during the first 14 days of the strike, but benefits are payable during subsequent 14-day periods.
If a strike is in violation of the Railway Labor Act, unemployment benefits are not payable to employees participating in the strike. However, employees not among those participating in such an illegal strike, but who are unemployed on account of the strike, may receive benefits after the first two weeks of the strike.
While a benefit year waiting period cannot count toward a strike waiting period, the 14-day strike waiting period may count as the benefit year waiting period if a worker subsequently becomes unemployed for reasons other than a strike later in the benefit year.
6. Can employees in train and engine service receive unemployment benefits for days when they are standing by or laying over between scheduled runs? No, not if they are standing by or laying over between regularly assigned trips or they missed a turn in pool service.
7. Can extra-board employees receive unemployment benefits between jobs?
Yes, but only if the miles and/or hours they actually worked were less than the equivalent of normal full-time work in their class of service during the 14-day claim period. Entitlement to benefits would also depend on the employee’s earnings.
8. How would an employee’s earnings in a claim period affect his or her eligibility for unemployment benefits? If a claimant’s earnings for days worked, and/or days of vacation, paid leave, or other leave in a 14-day registration period are more than a certain indexed amount, no benefits are payable for any days of unemployment in that period. That registration period, however, can be used to satisfy the waiting period.
Earnings include pay from railroad and nonrailroad work, as well as part-time work and self-employment. Earnings also include pay that an employee would have earned except for failure to mark up or report for duty on time, or because he or she missed a turn in pool service or was otherwise not ready or willing to work. For the benefit year that begins July 2015, the amount is $1,440, which corresponds to the base year monthly compensation amount used in determining eligibility for benefits in each year. Also, even if an earnings test applies on the first claim in a benefit year, this will not prevent the first claim from satisfying the waiting period in a benefit year.
9. How does a person apply for and claim unemployment benefits? Claimants can file their applications for unemployment benefits, as well as their subsequent biweekly claims, by mail or online.
To apply by mail, claimants must obtain an application from their labor organization, employer, local RRB office or the agency’s website at www.rrb.gov. The completed application should be mailed to the local RRB office as soon as possible and, in any case, must be filed within 30 days of the date on which the claimant became unemployed or the first day for which he or she wishes to claim benefits. Benefits may be lost if the application is filed late.
To file their applications — or their biweekly claims — online, claimants must first establish an RRB online account at www.rrb.gov. Instructions on how to do so are available through the RRB’s website. Employees are encouraged to establish online accounts while still employed so the account is ready if they ever need to apply for these benefits or use other select RRB Internet services. Employees who have already established online accounts do not need to do so again.
The local RRB field office reviews the completed application, whether it was submitted by mail or online, and notifies the claimant’s current railroad employer, and base-year employer, if different. The employer has the opportunity to provide information about the benefit application.
After the RRB office processes the application, biweekly claim forms are mailed to the claimant, and are also available on the RRB’s website, as long as he or she remains unemployed and eligible for benefits. Claim forms should be signed and sent on or after the last day of the claim. This can be done by mail or electronically. The completed claim must be received by an RRB office within 15 days of the end of the claim or the date the claim form was mailed to the claimant or made available online, whichever is later. Claimants must not file both a paper claim and an online claim form for the same period(s).
Only one application needs to be filed during a benefit year, even if a claimant becomes unemployed more than once. However, a claimant must, in such a case, request a claim form from an RRB office within 30 days of the first day for which he or she wants to resume claiming benefits. These claims may then be filed by mail or online.
10. How does a person apply for and claim sickness benefits? An application for sickness benefits can be obtained from railroad labor organizations, railroad employers, any RRB office or the agency’s website. An application and a doctor’s statement of sickness are required at the beginning of each period of continuing sickness for which benefits are claimed. Claimants should make a special effort to have the doctor’s statement of sickness completed promptly since no claims can be paid without it.
The RRB suggests that employees keep an application on hand for use in claiming sickness benefits, and that family members know where the form is kept and how to use it. If an employee becomes unable to work because of sickness or injury, the employee should complete the application and then have his or her doctor complete the statement of sickness. Employees should note that they must indicate on the application whether they are applying for sickness benefits because they were injured at work or have a work-related illness. They must also indicate whether they have filed or expect to file a lawsuit or claim against a third party for personal injury. If a claimant receives sickness benefits for an injury or illness for which he or she is paid damages, it is important to be aware that the RRB is entitled to reimbursement of either the amount of the benefits paid for the injury or illness, or the net amount of the settlement, after deducting the claimant’s gross medical, hospital, and legal expenses, whichever is less.
If the employee is too sick to complete the application, someone else may do so. In such cases, a family member should also complete Form SI-10, “Statement of Authority to Act for Employee,” which accompanies the statement of sickness.
After completion, the forms should be mailed to the RRB’s headquarters in Chicago by the seventh day of the illness or injury for which benefits are claimed. However, applications received after 10 days but within 30 days of the first day for which an employee wishes to claim benefits are generally considered timely filed if there is a good reason for the delay. After the RRB receives the application and statement of sickness and determines eligibility, biweekly claim forms are mailed to the claimant for completion and return to an RRB field office for processing. The RRB also makes claim forms available for completion online by those employees who establish an online account. The claim forms must be received at the RRB within 30 days of the last day of the claim period, or within 30 days of the date the claim form was mailed to the claimant or made available online, whichever is later. Benefits may be lost if an application or claim is filed late.
Claimants are reminded that while claim forms for sickness benefits can be submitted online, applications and statements of sickness must be returned to the RRB by mail.
11.Is a claimant’s employer notified each time a biweekly claim for unemployment or sickness benefits is filed? The Railroad Unemployment Insurance Act requires the RRB to notify the claimant’s base-year employer each time a claim for benefits is filed. That employer has the right to submit information relevant to the claim before the RRB makes an initial determination on the claim. In addition, if a claimant’s base-year employer is not his or her current employer, the claimant’s current employer is also notified. The RRB must also notify the claimant’s base-year employer each time benefits are paid to a claimant. The base-year employer may protest the decision to pay benefits. Such a protest does not prevent the timely payment of benefits. However, a claimant may be required to repay benefits if the employer’s protest is ultimately successful. The employer also has the right to appeal an unfavorable decision to the RRB’s Bureau of Hearings and Appeals.
The RRB also conducts checks with other Federal agencies and all 50 States, as well as the District of Columbia and Puerto Rico, to detect fraudulent benefit claims, and it checks with physicians to verify the accuracy of medical statements supporting sickness benefit claims.
12. How long does it take to receive payment? Under the RRB’s Customer Service Plan, if a claimant filed an application for unemployment or sickness benefits, the RRB will release a claim form or a denial letter within 10 days of receiving his or her application. If a claim for subsequent biweekly unemployment or sickness benefits is filed, the RRB will certify a payment or release a denial letter within 10 days of the date the RRB receives the claim form. If the claimant is entitled to benefits, benefits will generally be paid within one week of that decision.
However, some claims for benefits may take longer to handle than others if they are more complex, or if an RRB office has to get information from other people or organizations. If this happens, claimants may expect an explanation and an estimate of the time required to make a decision.
Claimants who think an RRB office made the wrong decision about their benefits have the right to ask for review and to appeal. They will be notified of these rights each time an unfavorable decision is made on their claims.
13. How are payments made? Railroad unemployment and sickness insurance benefits are paid by the U.S. Treasury’s Direct Deposit program. With Direct Deposit, benefit payments are made electronically to an employee’s bank, savings and loan, credit union or other financial institution. New applicants for unemployment and sickness benefits will be asked to provide information needed for Direct Deposit enrollment.
14. How can claimants get more information on railroad unemployment or sickness benefits? Claimants with questions about unemployment or sickness benefits, or who are seeking information about their claims and benefit payments, can contact an RRB office by calling toll-free at 1-877-772-5772. Claimants can also access an online service, “View RUIA Account Statement” on the “Benefit Online Services” page at www.rrb.gov, which provides a summary of the unemployment and sickness benefits paid to them. To use this service, claimants must first establish an online account.
Persons can find the address of the RRB office serving their area by calling 1-877-772-5772, or by visiting www.rrb.gov. Most RRB offices are open to the public from 9:00 a.m. to 3:30 p.m., Monday through Friday, except on Federal holidays.
UTU members participated in Labor Day events and parades nationwide, demonstrating that a healthy, energized and committed labor union movement is alive and well in America.
In truth, there was not too much to celebrate.
For too many Americans, this Labor Day was just another day without a full-time job; and for millions more Americans, any celebration of Labor Day was eclipsed by concerns of wage cuts, higher health care insurance premiums, loss of health care insurance, loss of collective bargaining rights and efforts by many in Congress to weaken Social Security, Medicare and public transportation.
Labor Day is the traditional start of political campaigns, and the 2012 presidential, congressional and state legislature elections will be a referendum on the future of organized labor and retention of all organized labor has achieved for Americans.
These achievements, all at risk in today’s harsh political climate, include collective bargaining rights, a minimum wage, the right to be heard and to present workplace grievances, an end to discrimination in hiring, overtime pay, paid holidays and vacations, employer provided health care insurance, compensation for workplace injuries, and workplace health and safety regulations.
Although UTU members are mostly secure in their jobs because of outstanding representation, here is a sampling of the climate facing working families in America today:
* Fewer than 7 percent of private-sector workers today belong to a labor union.
* According to a recent Gallup poll, only 52 percent of Americans have a positive opinion of labor unions – 78 percent among Democrats, but only 26 percent among Republicans.
* Across America, 14 million Americans are unemployed, nine million part-time workers cannot find full-time employment, and almost seven million Americas have given up looking for work.
* The current 9.1 percent unemployment rate does not include part-time workers seeking full-time work or those who have given up looking for work.
* Since 2008, average annual wage increases have been less than 2 percent.
* There are currently almost five unemployed workers for every job opening.
* To reduce the current 9.1 percent unemployment rate to 5 percent, the economy must create an average of 282,000 jobs per month. In August, zero new jobs were created, and the job creation rate of an average of 240,000 new jobs monthly during the boom years between 1993 and 2000 still falls short of the 282,000 target figure to reduce the current 9.1 unemployment rate to 5 percent.
* The unemployed finding new jobs generally suffer a 20 percent reduction in earnings.
We know from history that in union there is strength. As we look ahead to the 2012 elections, it is essential that all members of working families eligible to vote are registered and go to the polls on Election Day to elect labor-friendly candidates, regardless of political affiliation. Union members have one of the highest rates of participation in elections, and that enthusiasm and effort must continue.
With assistance from the UTU’s political consultant, the UTU’s national legislative office and state legislative directors, the UTU will be keeping members informed about labor-friendly political candidates.
Participation in the UTU PAC is also important in helping to elect labor-friendly candidates, as these contributions assist them in delivering their message to voters.
Being involved with your union is also essential, and this includes attending meetings of your local.
If you believe in something strong enough, you fight for it.
We can turn things around in America, but it requires solidarity to win this fight and emerge stronger than ever, so that on the Labor Days of the future, organized labor and working families all have something of substance to celebrate.
A new year under the Railroad Unemployment Insurance Act for unemployment and sickness benefits begins July 1.
The maximum daily benefit rate payable remains at $66 in the new benefit year.
Benefits are normally paid for the number of days of unemployment or sickness over four in 14-day registration periods. Thus, the maximum benefits for biweekly claims will continue to total $660.
During the first 14-day claim period in a benefit year, benefits are payable for each day of unemployment or sickness in excess of seven, rather than four, which, in effect, provides a one-week waiting period.
Initial sickness claims must also begin with four consecutive days of sickness. However, only one waiting period is required during any period of continuing unemployment or sickness, even if that period continues into a subsequent benefit year. Claimants already on the rolls will normally not be required to serve another waiting period because of the onset of the new benefit year.
To qualify for railroad unemployment or sickness benefits in the benefit year beginning July 1, an employee must have had railroad earnings of at least $3,325 in calendar year 2010, not counting more than $1,330 for any month. Those who were first employed in the rail industry in 2010 must also have at least five months of creditable railroad service in that year.
Under certain conditions, employees who do not qualify in the new benefit year on the basis of their 2010 earnings may still be able to receive benefits beginning July 1.
Employees who received normal benefits in the benefit year ending June 30, might still be eligible for extended benefits.
Ten-year employees may be eligible for accelerated benefits, if they have rail earnings of at least $3,325 in 2011, not counting earnings of more than $1,330 a month.
Application forms for unemployment and sickness benefits may be obtained from railroad employers, UTU local or general committee offices, any Railroad Retirement Board (RRB) office, or the Railroad Retirement Board’s website at www.rrb.gov.
Applications for unemployment benefits may be filed on-line.
Since November 2010, claimants have been able to file biweekly claims for sickness benefits over the Internet as well. However, rail employees who miss work due to illness or injury still must file a paper form that serves as their initial application for sickness benefits.
To access Railroad Retirement Board online services, employees must first establish an RRB Internet Services account. For security purposes, first-time users must apply for a Password Request Code, which they will receive by regular mail in about 10 business days.
To do this, employees should click on “requesting a Password Request Code (PRC)” in the “Benefit Online Services Login” section of the www.rrb.gov home page.
Once employees establish their online accounts, they will be able to file their applications and biweekly claims for unemployment benefits as well as conduct other business with the RRB over the Internet.
Employees are encouraged to initiate an online account while still employed so the account is established if they ever need to use these or other select RRB Internet services. Employees who have already established online accounts do not need to do so again.
Claimants with questions about unemployment or sickness benefits should contact an RRB office by calling toll free at (877) 772-5772. Field office locations can also be found online at www.rrb.gov.