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The Railroad Retirement Board recently determined that a surcharge of 1.5
percent will be added to the basic RUIA contribution rate for each established employer
beginning January 1, 2012. The surcharge was 2.5 percent for 2011. New employers
are not affected, as their rate will be the average rate for all employers from
2008 through 2010.
The RUIA Experience Rating System provides for the addition of a surcharge to
the RUIA contribution rate if the accrual balance in the RUI Account falls below
certain levels as of June 30 of each year. On June 30, 2011, that account had an
accrual balance of $66.2 million. The 1.5 percent threshold is the higher of
$100 million or $100 million indexed to changes in the system compensation base.
The current thresholds are $130.2 million for the 1.5 percent surcharge and
$65.1 million for the 2.5 percent surcharge. Since the RUI Account balance is
less than the indexed amount for $100 million but greater than the indexed
amount for $50 million, the surcharge is 1.5 percent for calendar year 2012.
Official notice of the surcharge will be included in the annual rate notices
to be sent out to individual employers by October 15.
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