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Trigger of Surcharge in RUIA Contribution Rate For 2013
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The Railroad Retirement Board recently determined that there will be no
surcharge added to the basic RUIA contribution rate for each established
employer beginning January 1, 2013. The surcharge was 1.5 percent for 2012. New
employers are not affected, as their rate will be the average rate for all
employers from 2009 through 2011.
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, 2012, that account had an
accrual balance of $184.9 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 $137.3 million for the 1.5 percent surcharge and
$68.6 million for the 2.5 percent surcharge. Since the RUI Account balance is
greater than the indexed amount for $100 million there will be no surcharge for
calendar year 2013.
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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