Quality Reporting Service Center
Railroad Retirement Board
844 North Rush Street
Chicago, Illinois 60611-1275
Please distribute this notice to all
individuals within your organization who may need the information in connection
with their work.
Unemployment and sickness benefits payable under the Railroad Unemployment
Insurance Act (RUIA) for days after February 28, 2013 must be sequestered or
reduced by 9.2 % as part of a package of automatic spending cuts required by the
Budget Control Act of 2011 (BCA), which was passed in August 2011. This
sequestration is the result of the failure of the Joint Select Committee on
Deficit Reduction to propose, and Congress to enact, legislation reducing the
deficit, as required by the BCA. Under the BCA, the cuts were triggered to take
effect beginning January 1, 2013, if the Joint Select Committee on Deficit
Reduction did not agree to a $1.2 trillion deficit-reduction package by November
23, 2011. The cuts were initially delayed but will now take effect March 1,
2013. The initial reduction will continue through September 30, 2013. Congress
will determine the amount of subsequent reductions for October 1, 2013 and
beyond. We will update this program letter as necessary.
The final order of sequestration remains in effect through September 30,
2013, or until ordered by legislative or Executive action.
Only the reduced amount of sickness or unemployment benefits paid to a
claimant will be charged to the claimant's base year employer's benefit account
balance and consequently will be used when calculating the base year employer's
experience rated RUIA contribution rate for any future years. The sequestered
amount will not be charged to the claimant's base year employer's benefit
Any reduced special extended unemployment benefits paid based on the American
Taxpayer Relief Act of 2012 (ATRA) or any subsequent Act extending unemployment
benefits will be charged to the $175 million appropriation. These benefits will
not be charged to the claimant's base year employer's benefit account balance
and consequently will not be used when calculating the base year employer's
experience rated RUIA contribution rate for any future years.
If you have any questions regarding the reduction or sequestration of
benefits paid based on the Budget Control Act of 2011, please contact the
Railroad Retirement Board's Quality Reporting Service Center at (312) 751-4992.