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Program Letter 2010-01 |
To: Certification Registration, Retirement and Unemployment Contact Officials
Subject: Notice of Annual Rates (2010) |
| Date:
December 8, 2009 |
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Prepared by:
Quality Reporting Service Center
Railroad Retirement Board
844 North Rush Street
Chicago, Illinois 60611-2092
| Phone: |
(312) 751-4992 |
| Fax: |
(312) 751-7190 |
| E-mail: |
QRSC@rrb.gov |
Please distribute this notice to all
individuals within your organization who may need the information in connection
with their work.
Creditable and Taxable Compensation
| The 2010 railroad retirement tax rates
and maximum compensation bases are as follows: |
|
Employee Tier I
|
6.2% |
$106,800 |
|
Medicare |
1.45% |
No Limit |
|
Employer Tier I |
6.2% |
$106,800 |
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Medicare |
1.45%
|
No Limit |
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Employee Tier II |
3.9%
|
$79,200 |
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Employer Tier II
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12.1% |
$79,200 |
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Railroad Unemployment Insurance
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Variable
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$1,330
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Railroad Unemployment Insurance Maximum |
Variable
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$1,718 |
The Tier II tax rates are determined annually from a tax rate schedule based
on an average account benefits ratio reflecting railroad retirement fund levels.
Employer tax rates can range from 8.2 percent to 22.1 percent. Employee
tax rates can range from 0 percent to 4.9 percent.
Experience Rating
In October 2009, each employer was sent a notice of their 2010 Railroad
Unemployment Insurance Act (RUIA) contribution rate. If you have not
received your notice, please contact the Quality Reporting Service Center.
Retirement and Survivor Benefits
Exempt Amounts for Annual Earnings Test for Less Than Full Retirement Age
Annuitants: In 2010, the annual exempt amount for less than full
retirement age annuitants is $14,160. The monthly exempt amount for the
first year of retirement in 2010 is $1,180.
Exempt Amounts for Annual Earnings Test for Full Retirement Age Annuitants: In
2010, the annual exempt amount for full retirement age annuitants is $37,680.
The monthly exempt amount for the first year of retirement in 2010 is $3,140.
Cost-of-living Increase: Annuitants will NOT receive a cost-of-living increase
effective December 2009.
Unemployment and Sickness Benefits
Maximum Daily Benefit Rate: Under the Railroad Unemployment Insurance Act
(RUIA), the maximum daily benefit rate is equal to 5 percent of the monthly RUIA
compensation base, rounded down to the nearest multiple of $1.00. For days
of unemployment and sickness in registration periods beginning on and after July
1, 2010, the maximum daily rate is $66.00. The maximum rate for
registration periods beginning on or after July 1, 2011, is $66.00.
Monthly Compensation Base: The monthly compensation base under the Railroad
Unemployment Insurance Act for calendar year 2010 is $1,330.
Qualifying Base Year Compensation: The amount of base year compensation required
in 2010 to qualify for benefits in the benefit year beginning July 1, 2011, is
$3,325.
Compensation of $3,325 is also the amount of creditable compensation required to
end a voluntary leaving of work disqualification period in months in calendar
year 2010. In addition, remuneration earned in calendar year 2010 from
employment covered under the Act cannot be considered subsidiary remuneration if
the employee's base year earnings are less than $3,325.
Maximum Benefits: The monthly amount of base year 2010 compensation that can be
counted in determining the maximum amount of normal benefits payable to an
employee in the benefit year beginning July 1, 2011, is $1,718.
Maximum Monthly Compensation Base and the
Earnings Test: For unemployment registration periods beginning July 1,
2010 and later, no benefits are payable for which the total amount of an
employee's earnings and other remuneration from railroad and non-railroad work
for days in the period exceeds the monthly compensation amount of $1,330.
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