The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act authorized a “recovery payment” for unemployed railroad workers in the amount of $1,200 per 2-week registration period. After making necessary programming changes to its claims processing systems, the U.S. Railroad Retirement Board (RRB) started making the payments on the evening of May 28.
In the initial round of processing, the agency made retroactive payments of $1,200 per 2-week registration period to individuals who had previously filed claims beginning on or after April 1. Those individuals had previously received unemployment insurance (UI) benefits in the amount of $733.98 to most claimants. The RRB estimates that the total amount of retroactive payments will be about $32 million. While the regular UI amount of $733.98 is reduced from $780 due to sequestration, the additional $1,200 recovery payment is not subject to reduction. However, it is subject to income taxation and garnishment for tax and other legally established debt.
Once these payments are completed, the RRB plans to start paying the additional $1,200 for new benefit claims the following day. The additional amount is payable on claims for days of unemployment through the 2-week claim period beginning July 31, 2020.
The CARES Act includes an appropriation of $425 million to pay for this added recovery payment. If these funds are exhausted before August 13, the end of the last eligible registration period, the added payment will no longer apply.
The CARES Act also authorized payment of extended benefits to rail workers who received UI benefits between July 1, 2019, and June 30, 2020. The RRB started paying the extended UI benefits on May 11, once again beginning with retroactive payments to individuals who had previously exhausted their regular UI benefits, before moving on to new claims.
The final piece of the CARES Act for the RRB is the elimination of a 1-week waiting period to receive benefits funded by an additional $50 million appropriation to cover this provision. The agency continues to diligently work on the needed programming for this provision, and hopes to have it completed in the near future. Again, the agency will initially make retroactive payments to individuals who had previously submitted UI claims before quickly moving on to processing new claims without the waiting period.
The RRB identified any eligible employees who previously received UI benefits for days of unemployment after April 1, 2020, so that the payments could be issued without the employee submitting additional information. For initial claims in the coming months, employees are encouraged to file them online through myRRB on the agency website, RRB.gov.
Since RRB offices are currently closed to the public due to the pandemic, railroad employees are encouraged to file for UI benefits by setting up an online myRRB account if they have not already done so.
Tag: Railroad Retirement Board
From RRB Labor Member John Bragg:
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.
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.
From the RRB’s Public Affairs office:
The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, recently signed into law by President Trump, authorized extended unemployment insurance (UI) benefits for railroad workers sidelined during the COVID-19 pandemic. After making necessary programming changes to agency systems, the U.S. Railroad Retirement Board (RRB) began processing and paying extended benefits on May 11.
The CARES Act authorized payment of extended UI benefits to rail workers who received UI benefits from July 1, 2019, to June 30, 2020. Under the legislation, railroad workers with less than 10 years of service may be eligible for up to 65 days of extended benefits within 7 consecutive 2-week registration periods. Workers with 10 or more years of railroad service, who were previously eligible for up to 65 days in extended benefits, may now receive benefits for up to 130 days within 13 consecutive 2-week registration periods. No extended benefit period under this provision can begin after December 31, 2020.
The RRB will identify any employees who exhausted their regular UI benefits during the benefit year that began July 1, 2019, and send them a letter and claim forms to receive the extended benefits. The agency will also load appropriate claim forms to online accounts so that individuals can file them online through myRRB on the agency website, RRB.gov.
Since RRB offices are currently closed to the public due to the pandemic, railroad employees are encouraged to file for UI benefits by setting up an online myRRB account if they have not already done so.
The extended benefits are being paid from a previous appropriation under the American Recovery and Reinvestment Act of 2009, of which $140 million remains. As a result, these benefits will not be charged to rail employers in calculating their contribution rates to fund the railroad unemployment system. Extended benefits will be payable until a claimant’s eligibility is exhausted or the appropriation is depleted, whichever comes first.
While the extended benefits will not be subject to reduction due to budget sequestration, the RRB does remind recipients that the payments are subject to income taxation and garnishment for tax or other legally established debts.
The team responsible for programming adjustments continues to work diligently to update systems to allow for the payment of the additional CARES Act benefits. When that processing is completed, payment will be made to cover retroactive periods. Meanwhile, employees who met eligibility requirements for UI at the beginning of the benefit year but had exhausted those benefits will now be able to file for and again receive UI benefits.
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:
https://www.careeronestop.org/LocalHelp/UnemploymentBenefits/Find-Unemployment-Benefits.aspx.
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.
John Bragg,
Labor member, Railroad Retirement Board
From Railroad Retirement Board (RRB) Labor Member John Bragg:
As the Railroad Retirement Board (RRB) works its way through this pandemic, I will continue to reach out to you, my fellow brothers and sisters, to keep you informed on the status of the RRB and the benefits we administer. Most recently, on March 31, 2020, I shared information on how the CARES Act boosts unemployment and sickness benefits for railroad workers impacted by the pandemic. That notice included a link to a page on the RRB’s website with guidance in the form of Q&As. You can find the FAQs here: Unemployment and Sickness Benefit Flexibilities Under the Railroad Unemployment Insurance Act (RUIA) during the COVID-19 Virus Outbreak.
The purpose of this notice is to bring to your attention two changes which have been made to that guidance.
The first change relates to the instructions on filing applications and claims — specifically, the instructions related to the filing for sickness benefits. It is not a significant change, but I still wanted to bring it to your attention. Ordinarily, an applicant for sickness benefits must submit an application form and must also submit Form SI-1b, Statement of Sickness. Because the Form SI-1b requires a doctor’s signature and it was recognized that it may be difficult to get a physician to sign a statement during these unique circumstances, the RRB issued guidance indicating that, in lieu of Form SI-1b, a written statement could be submitted for the first claim. Because of the Paperwork Reduction Act and the manner in which federal agencies may collect information, that statement should now be submitted through an RRB Form G-93, Statement of Claimant or Other Person. You can find that form here: RRB Form-G-93. See also Questions 5-7 of the FAQs. A side benefit is that we believe this will simplify the process for those unable to obtain a Form SI-1b, as it is a fillable form.
The second change relates to the Q&As themselves. We have received numerous inquiries regarding the one-time-only economic relief payment provided by the CARES Act. The RRB is not responsible for these payments. Therefore, we have added the following as Q&A No. 16:
Q: Is the RRB going to pay the one-time-only economic relief payment available to individuals with income of $99,000 or less and couples with income of $198,000 or less?
A: No, the Department of the Treasury will be responsible for making those payments. Additional information regarding the one-time-only economic relief payments can be found at the following link: https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know
I want to assure you that, while the worksite environment has changed considerably for RRB employees, the longstanding tradition of commitment to assuring that railroad workers receive the benefits that they have earned remains as strong as ever. These are unprecedented times and I will do my best to keep you informed. As we make changes accordingly, the agency will keep updating the website as well as the FAQs. Meanwhile, if you have additional questions, please don’t hesitate to reach out.
John Bragg,
Labor Member, Railroad Retirement Board
The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act, signed into law March 27, boosts unemployment and sickness benefits for railroad workers impacted by the pandemic.
Under the CARES Act, the 1-week waiting period required before railroad workers can receive unemployment or sickness benefits is temporarily eliminated. This applies to an employee’s first two-week registration period for a period of continuing sickness or unemployment beginning after the effective date of the law and ending on or before December 31, 2020.
In addition, the amount of the unemployment benefit is increased by $1,200 per 2-week period. This is in addition to the current biweekly maximum of $733.98 received by most claimants. This increased amount applies to any two-week registration periods beginning on or after April 1, 2020, through July 31, 2020.
The CARES Act includes a separate appropriation of $425 million to pay for this added “recovery benefit,” with an additional $50 million provided to cover the cost of eliminating the waiting period. If these funds are exhausted, the new provisions will no longer apply.
The CARES Act also authorizes payment of extended unemployment benefits to rail workers who received unemployment benefits from July 1, 2019, to June 30, 2020.
Under the legislation, railroad workers with fewer than 10 years of service may be eligible for up to 65 days of extended benefits within seven consecutive two-week registration periods. Workers with 10 or more years of railroad service who were previously eligible for up to 65 days in extended benefits may now receive benefits for up to 130 days within 13 consecutive two-week registration periods.
Since RRB offices are currently closed to the public due to the COVID-19 pandemic, railroad employees are encouraged to file for unemployment benefits online by establishing an account through myRRB at RRB.gov. Employees are encouraged to use a computer rather than a smartphone or tablet due to RRB IT system limitations. Otherwise, applications and claims for benefits will need to be submitted by regular mail. Applications for sickness benefits must be submitted to the agency by mail, or by fax at 312-751-7185. Subsequent claims may be completed online by those with myRRB accounts.
The RRB will also pay sickness benefits and, in some cases, unemployment benefits, to rail workers who have tested positive for COVID-19 or who are subject to a quarantine order. Further guidance on these types of situations is available at RRB.gov/Benefits/Coronavirus.
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.
Self-Service Options:
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.
Benefit Payments:
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.
Legislative Changes:
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.
The economic uncertainty and long-term health risks posed by the COVID-19 pandemic present a challenge nationally, and the Railroad Retirement Board (RRB), which administers railroad sickness and unemployment benefits, is advising all railroaders to establish an online login.gov account.
Establishing this account gives workers a head start in the event that RRB unemployment or sick benefits are needed by RR workers in the case of carrier furloughs or illness.
Information needed to create the login.gov account includes:
- A current, state-issued ID;
- An email address;
- Enabling two-step authentication;
- Providing basic information such as name, address and phone number;
- Social Security number;
- Address verification.
Once the info is processed, a personal key will be provided to the worker that will be needed to gain access and make changes to the account. This key should be written down and stored in a safe place.
RRB operations, like those of many other public service agencies, have been affected by the coronavirus pandemic. The board is following CDC guidelines and has closed its field offices, so services are being provided primarily through the RRB website and its toll-free number (877-772-5772).
A login.gov account permits users to have instant access to:
- Apply for unemployment benefits
- Claim unemployment benefits
- View Railroad Unemployment Insurance Act account info
- Claim sickness benefits
- View service & compensation
<liGet retirement benefits estimate
John Bragg, labor member of the Railroad Retirement Board, issued the following statement on March 19, 2020:
Based on the best information currently available and guidance issued by public health officials, the Office of the Labor Member has canceled all Pre-Retirement Seminars scheduled from March through June until further notice. We made this difficult decision out of an abundance of caution to protect the health, safety, and welfare of our customers and staff as we navigate through this time of uncertainty caused by the COVID-19 outbreak.
While we expect to reschedule these seminars later this year, we’ll be monitoring the situation as it evolves and provide event updates when details are finalized.
We encourage would-be attendees to stay informed while practicing social distancing and review seminar materials, which are all available online. The program booklet is posted on our Pre-Retirement Seminar web page, and all other items included in seminar kits can be found on our Educational Materials web page.
Thank you in advance for your patience and understanding – we look forward to getting back on track in the coming months.