|
At the end of fiscal year 2010, total railroad retirement system assets
equaled $25.1 billion. During fiscal year 2010, benefits totaling approximately
$11.0 billion were paid under the Railroad Retirement and Railroad Unemployment
Insurance Acts. Retirement and survivor benefits accounted for almost all of
this amount. Net unemployment and sickness benefits totaled $156.6 million.
Railroad Retirement and Survivor Program
As of September 30, 2010, total railroad retirement system assets, including
those maintained in U.S. Treasury accounts and those maintained by the National
Railroad Retirement Investment Trust (the “Trust” or “NRRIT”), equaled $25.1
billion, an increase of $0.5 billion during the fiscal year. Amounts in the
Railroad Retirement (RR) Account not needed to pay current administrative
expenses and amounts in the Social Security Equivalent Benefit (SSEB) Account
not needed to pay current benefits and administrative expenses are transferred
to the NRRIT whose Board of seven trustees is empowered to invest Trust assets
in non-governmental assets, such as equities and debt, as well as in
governmental securities.
Financial Operations - U.S. Treasury Accounts
During fiscal year 2010, railroad retirement and survivor benefit payments
were financed through four U.S. Treasury accounts.
The SSEB Account, established in fiscal year 1985, pays the portion of railroad
retirement benefits equivalent to a social security benefit from various income
sources related to these benefits. The RR Account funds retirement, survivor and
disability benefits, in excess of social security equivalent benefits, from
payroll taxes on employers and employees and other income sources. Supplemental
benefit payments are also paid from the RR Account. The Dual Benefits Payments (DBP)
Account and Federal Payments (FP) Account, funded by congressional
appropriations from general revenues, finance the phase-out costs of certain
vested dual benefits and interest on unnegotiated checks, respectively. The four
accounts together incurred $10.8 billion in benefit obligations (excluding $1.3
billion in social security benefits which were reimbursed by the Social Security
Administration) during fiscal year 2010.
Financing Sources
Payroll Taxes
The primary source of income to the railroad retirement and survivor program
is payroll taxes levied on covered employers and their employees. Payroll taxes
amounted to more than $4.6 billion, 41.6 percent of total financing sources (which
excludes an increase of $457.1 million, mostly due to a change in NRRIT net
assets) and $62.3 million less than in fiscal year 2009.
Railroad employees and employers pay tier I taxes which, by law, are the same as
social security taxes. The 2010 and 2009 rate of 7.65 percent was split between
6.20 percent for retirement and 1.45 percent for Medicare hospital insurance. The maximum
amount of earnings subject to the 6.20 percent rate in calendar years 2010 and
2009 was
$106,800, and all earnings were subject to the 1.45 percent Medicare tax. Both
employees and employers also pay a tier II tax to finance railroad retirement
benefit payments over and above social security levels. This tax, on earnings up
to $79,200 in 2010 and 2009, was 3.9 percent on employees in both
2010 and 2009. It was 12.1 percent on employers in both 2010 and 2009.
Tier I and tier II taxes for fiscal year 2010 amounted to $2.4 billion and $2.3
billion, respectively.
Financial Interchange Transfers
The second major source of income to the railroad retirement and survivor
program consists of transfers from the social security trust funds under a
financial interchange between the two systems. The financial interchange is
intended to place the Social Security Old-Age, Survivors and Disability
Insurance and Hospital Insurance Trust Funds in the same position in which they
would have been had railroad employment been covered by the Social Security and
Federal Insurance Contributions Acts. This involves computing the amount of
social security taxes that would have been collected on railroad employment, and
computing the amount of additional benefits which
social security would have paid to railroad retirement beneficiaries during the
same fiscal year.
In the computation of the latter amount, credit is given for any social security
benefits actually paid to railroad retirement beneficiaries. When benefit
reimbursements exceed payroll taxes, the difference, with an allowance for
interest and administrative expenses, is transferred from the Social Security
Trust Funds to the SSEB Account. If taxes exceed benefit reimbursements (this
has not happened since 1951), a transfer would be made in favor of the Social
Security Trust Funds. The net financial interchange transfer to the SSEB Account
during fiscal year 2010 amounted to $4.0 billion.
Retirement and Survivor
Program
Financing Sources - Fiscal Year 2010 (In Millions)
GROSS TOTAL: $11,167.5
Costs - Fiscal Year 2010
(In Millions)
TOTAL: $11,055.9
Note.--Percentages
may not add to 100 due to rounding.
Interest on Investments and Other Revenue
Interest revenue increased from $34.7 million in fiscal year 2009 to $36.5
million in fiscal year 2010. Interest revenue was also earned from financial
interchange advances.
Federal Income Tax Transfers
Legislation enacted in 1983 subjecting social security and railroad retirement
benefits to Federal income taxes also provided for a transfer of the tax
revenues to the social security and railroad retirement systems for the payment
of benefits. Most of the revenue from income taxes on social security equivalent
railroad retirement benefits is transferred to the SSEB Account, although a
portion attributable to higher-income taxpayers is transferred to the Federal
Hospital Insurance Trust Fund. Revenue derived from taxing regular railroad
retirement benefits in excess of social security equivalent benefits is
transferred to the RR Account. Revenue from taxing the vested dual benefits
funded by the general revenue appropriations previously described is transferred
to the DBP Account.
At the beginning of each quarter, income tax
transfers are made from Treasury general funds to the SSEB, RR and DBP Accounts.
These transfers are estimates of expected tax revenues for the quarter.
Adjustments are made later to reconcile the estimates for a taxable year with
actual tax revenues for the year. On a cash basis, original tax transfers for
fiscal year 2010 amounted to $470.0 million during the year. Original transfers
for fiscal year 2009 totaled $463.0 million. There were no reconciliation
adjustments in fiscal year 2010. Net transfers in fiscal year 2009 were
$321.0 million, including -$142.0 million in reconciliation adjustments.
The information in the preceding paragraph is on a fiscal year basis, while the
table shown below shows income tax transfers to the Accounts for taxable
(calendar) years 2001 through 2010, including reconciliation adjustments through
2005.
Federal Income Tax Transfers by
Recipient Account
and Benefit Component,
Taxable Years 2001-2010 (Millions)
|
SSEB
tier I
benefits |
Tier II and
non-SSEB
tier I benefits |
Vested
dual
benefits |
|
SSEB
Account |
RR Account |
DBP Account |
|
Original transfers during
the year |
|
2001 |
$94 |
$229 |
$10 |
|
2002 |
97 |
252 |
9 |
|
2003 |
97 |
283 |
9 |
|
2004 |
109 |
294 |
8 |
|
2005 |
117 |
301 |
7 |
|
2006 |
125 |
312 |
7 |
|
2007 |
135 |
334 |
6 |
|
2008 |
144 |
325 |
5 |
|
2009 |
144 |
304 |
3 |
|
2010 |
159 |
315 |
3 |
|
Reconciliation adjustments |
|
2001 (2006) |
+6 |
+25 |
+1 |
|
2002 (2008) |
-4 |
-20 |
-1 |
|
2003 (2008) |
-12 |
-70 |
-3 |
|
2004 (2008) |
-18 |
-63 |
-2 |
|
2005 (2009) |
-8 |
-49 |
-2 |
| |
|
|
Includes non-SSEB
portion of tier I. |
|
Receives taxes
on social security equivalent benefit (SSEB) portion of tier I. |
|
Receives taxes
on vested dual benefit component beginning October 1, 1988. |
|
The year in
parentheses is the year the adjustments were made. |
Railroad Retirement and Survivor Program
| Consolidated Financing
Sources, Costs and Net Position (Millions) |
Financing Sources:
Payroll
Taxes
Financial
Interchange
Interest
on Investments and Other Revenue
Federal
Income Taxes
General
Appropriations
Other
Transfers
to the National Railroad Retirement Investment Trust
Transfers
from the National Railroad Retirement Investment Trust
Total
Financing Sources
Costs:
Benefit
Payments
Interest
Expense
Salaries
and Expenses
Other
Total
Costs
Financing Sources over Costs
Net Position - Beginning of Period
Net Position - End of Period |
$4,646.8
3,964.1
36.5
467.0
64.1
457.1
---
1,989.0
11,624.6
10,796.9
141.1
120.1
(2.2)
11,055.9
568.7
23,995.5
$24,564.2 |
$4,709.1
4,003.7
34.7
321.0
208.5
(1,964.2)
---
1,553.0
8,865.8
10,673.8
160.2
114.6
(1.0)
10,947.6
(2,081.8)
26,077.3
$23,995.5 |
| |
|
|
Prepared on an
accrual basis of accounting. |
|
Includes
accrued interest revenue from loan to the Railroad Unemployment Insurance
Account. |
|
Includes
unemployment and sickness insurance salaries and expenses of approximately
$15.8 million and $15.9 million for fiscal years 2010 and 2009,
respectively. |
National
Railroad Retirement Investment Trust (NRRIT)
|
Market value of assets managed by NRRIT on September 30, 2010 |
$23.8 billion |
Rate of return of investment portfolio managed by NRRIT for full year ended
September 30, 2010 |
11.15% |
Source: NRRIT
All NRRIT annual management reports and quarterly updates are available
here.
General Appropriations
General revenue appropriations were provided by the Railroad Retirement Act
of 1974 to fund the phase-out costs of certain dual railroad retirement/social
security benefits considered vested prior to 1975, and by the Railroad
Retirement Solvency Act of 1983 to fund interest on unnegotiated checks. The
total amounts appropriated by the Congress for vested dual benefits were $64.0
million for fiscal year 2010 and $72.0 million for fiscal year 2009. These amounts
include Federal income tax transfers for 2010 and 2009. The amount appropriated
for fiscal year 2010 was 11.1 percent less than fiscal year 2009, reflecting the
continuing decrease in eligibility for these benefits, which are not increased
for the cost of living. The total amounts appropriated by the Congress for
interest on unnegotiated checks were $150,000 for fiscal years 2010/2011 and
also $150,000 for fiscal years 2009/2010. In addition, Congress appropriated
$135.0 million in fiscal year 2009 for a one-time $250 payment to most railroad
retirement annuitants under the American Recovery and Reinvestment Act of 2009,
and $1.4 million for associated administrative costs under the law.
Other Financing Sources
Other financing sources consisted of $8.4 million to be provided by the
Office of Personnel Management to pay future retirement benefits to Railroad
Retirement Board employees, $16.0 million from the railroad unemployment
trust funds in transfers-in for current budget fiscal year salaries and
expenses, and an increase in NRRIT net assets of $441.5 million. These financing
sources were offset by transfers-out of $7.0 million for salaries and expenses
of the Board's Office of Inspector General, a loss on contingency liability of
$0.9 million, and a $0.9 million decrease in unexpended appropriations.
Costs
The Railroad Retirement Board pays all salaries and expenses under a single
administrative fund (Limitation on Administration) for both the railroad
retirement and survivor program and the unemployment and sickness insurance
program. Consequently, of the $120.1million and $114.6 million shown
here for salaries and expenses in fiscal years
2010 and 2009, respectively, about $15.8 million for fiscal year 2010 and $15.9
million for fiscal year 2009 were for the unemployment and sickness insurance
program. About $1.1 million in other costs for fiscal year 2010 and $1.2 million
for fiscal year 2009 were for the unemployment and sickness insurance program.
Excluding $16.9 million from total costs of $11.1 billion for fiscal year 2010
and $17.1 million from total costs of $10.9 billion for fiscal year 2009, total
costs for the railroad retirement and survivor program for fiscal year 2010
increased $108.5 million or 1.0 percent.
Benefit Payments
In fiscal year 2010, railroad retirement benefit payments increased
$123.1 million or almost 1.2 percent to about $10.8 billion on an accrual basis,
including $62.1 million in vested dual benefits and $60.4 million in
supplemental annuities.
Interest Expense
Interest expense of $141.1 million represents interest on the financial
interchange advances made by the U.S. Treasury during the fiscal year.
Salaries and Expenses
Excluding unemployment and sickness insurance salaries and expenses of $15.8
million for fiscal year 2010 and $15.9 million for fiscal year 2009, salaries
and expenses for the railroad retirement and survivor program were about $104.3
million for fiscal year 2010 and about $98.7 million for fiscal year 2009, a
$5.6 million or 5.7 percent increase. Adjusted by the $15.8 million in salaries
and expenses and $1.1 million in other costs for the unemployment and sickness
insurance program, fiscal year 2010 administrative expenses for the railroad
retirement and survivor program were about 0.93 percent of total costs.
Other Costs
Other costs consisted primarily of post-retirement benefits (pensions, health
and life insurance) for Railroad Retirement Board employees of $7.3 million for
the railroad retirement and survivor program and $1.1 million for the
unemployment and sickness insurance program. In addition, carrier refunds of
$0.1 million were incurred. These costs were offset by approximately $10.1
million in reimbursements from the Centers for Medicare & Medicaid Services for
Part B Medicare costs, as well as a reimbursement of approximately $0.4 million
from the RRB’s Office of Inspector General for RRB-incurred expenses, and
various other revenues of approximately $0.2 million.
National Railroad
Retirement Investment Trust Operations
Funds not needed immediately for benefit payments or administrative expenses are
invested through the National Railroad Retirement Investment Trust. The Trust
was established pursuant to section 105 of the Railroad Retirement and
Survivors’ Improvement Act of 2001 for the sole purpose of investing railroad
retirement assets. The Act authorizes the Trust to invest the assets of the
Railroad Retirement Account in a diversified investment portfolio in the same
manner as those of private sector retirement plans. Prior to the Act, investment
of Railroad Retirement Account assets was limited to U.S. Government securities.
Although the Trust was created by Congress to hold and invest Federal assets, it
is not an agency or instrumentality of the Federal government. It is a
tax-exempt entity governed by a seven-member Board, three selected by rail
management, three selected by rail labor and one independent trustee selected by
the six rail trustees.
During fiscal year 2010, the net asset value of Trust-managed assets increased
from $23.3 billion on October 1, 2009, to $23.8 billion on September 30, 2010.
This includes $2.0 billion that the Trust transferred to the U.S. Treasury for
the payment of railroad retirement benefits during the year. The rate of return
on Trust-managed assets for the year (net of fees) was 11.15 percent.
Total railroad retirement system assets (Trust-managed assets and reserves held
in Treasury accounts) grew from $20.7 billion in 2002 to $25.1 billion as of the
end of fiscal year 2010, after net transfers for benefit payments of
approximately $9.9 billion over the same time frame.
Trust operations are described in detail in the National Railroad Retirement
Investment Trust Annual Management Report for fiscal year 2010, which is
available here.
Benefit
Operations
Retirement and survivor benefits paid, including vested dual benefits and
supplemental employee annuities, totaled $10.8 billion in fiscal year 2010, $276
million more than in fiscal year 2009. Benefits were paid to over 581,700
beneficiaries in fiscal year 2010. Some 547,400 beneficiaries were being paid
at the end of the year. The table shown below presents retirement and survivor
benefit payments for fiscal years 2010 and 2009, by type of benefit, and the
percent changes in payments between the 2 years.
|
Retirement benefits |
Employee annuities
Age
Disability
Supplemental1 |
$4,928.9
2,260.9
60.3 |
$4,750.9
2,217.2
60.4 |
+3.7
+2.0
-0.1 |
|
Spouse and divorced spouse annuities |
1,338.4 |
1,282.4 |
+4.4 |
|
Total |
8,588.6 |
8,311.0
|
+3.3 |
|
Survivor benefits |
Annuities
Lump-sum benefits |
2,183.5
3.6 |
2,188.5
3.5 |
-0.2
+1.5 |
|
Total |
2,187.1 |
2,192.0 |
-0.2 |
|
Partition payments2 |
4.5 |
0.9 |
+377.8 |
|
Grand total |
$10,780.2 |
$10,504.0 |
+2.6 |
Excludes
partitioned payments to spouses and divorced spouses where
the employee is deceased.
Limited
to partitioned payments to spouses and divorced spouses where
the employee is deceased or not otherwise entitled to an annuity.
Partitioned payments from employees on the rolls are included with the
employees annuities.
Note.--Detail
may not add to total due to rounding. |
Under the two-tier railroad retirement formulas, the tier I annuity portion
approximates a social security benefit and increases by the cost-of-living
percentage applied to social security benefits. The tier II portion, which is
comparable to retirement benefits paid over and above social security benefits
to workers in other industries, increases by 32.5 percent of the social security
percentage. Effective December 2008, tier I portions increased by 5.8 percent
while tier II portions increased by 1.9 percent. There were no tier I or tier II
cost-of-living increases effective December 2009.
The December 2008 cost-of-living increase provided additional
benefit payments of about $100 million in fiscal year 2010, compared to payments
in fiscal year 2009.
Monthly retirement and survivor benefits being paid numbered nearly 676,700
at the end of the 2010 fiscal year, about 3,900 less than at the end of the
prior year. Monthly beneficiaries on the rolls declined by more than 4,800 over
the year, from 552,300 to 547,400. The number of monthly benefits paid is always
greater than the number of beneficiaries on the rolls, since many annuitants
receive more than one type of benefit. Although the second benefit is usually a
supplemental employee annuity, some employees also receive a spouse or widow(er)’s annuity.
Regular employee annuities in payment status at the end of fiscal year 2010 numbered 273,800, about
400 less than at the end of the previous fiscal year.
The number of age annuities being paid dropped slightly from 190,300 to 190,200 over the
year, while disability annuities decreased almost 300 to 83,500. Supplemental
annuities being paid to employees rose approximately 400, numbering 121,200 at
the end of the year. The
number of divorced spouse annuities being paid rose about 100 to 3,900. Spouse
and divorced spouse annuities together increased by more than 600, totaling
137,100 at year-end. Some 143,900 monthly survivor benefits were being paid at
the end of fiscal year 2010, a decrease of 5,000 from the previous year.
More than 700 partition payments to spouses and divorced
spouses where the employee is deceased or not otherwise entitled to an annuity
were being paid at the end of fiscal year 2010, an increase of approximately 500 from
the prior year.
Retirement
Regular employee annuities
Awards of regular employee annuities numbered 13,900 in fiscal year 2010, 400
more than in fiscal year 2009. Data by type of annuity awarded during the year
are given in the table below.
|
Age |
Beginning at full retirement
age or over |
900 |
7 |
$2,217 |
22.6 |
67.4 |
|
Unreduced, beginning at age 60 to under full retirement age
|
6,900 |
50 |
3,391 |
36.1 |
60.7 |
|
Reduced, beginning at age 62 to under full retirement age |
2,900 |
21 |
1,507 |
16.7 |
62.8 |
|
Disability
|
3,200 |
23 |
2,509 |
23.8 |
55.6 |
|
Total |
13,900 |
100 |
$2,723 |
28.4 |
60.4 |
|
Note:
Detail may not add to total due to rounding. |
Railroad employees with 10 to 29 years of creditable service, or 5 to 9
years of service if at least 5 years were after 1995, are eligible for regular
annuities based on age and service at age 62. Early retirement annuity
reductions are applied to annuities awarded before full retirement age--the
age at which an employee can receive full benefits with no reduction for early
retirement. This ranges from age 65 for those born before 1938 to age 67 for
those born in 1960 or later, the same as under social security. If an employee
had any creditable railroad service before August 12, 1983, the retirement age
for tier II purposes will remain 65. The reduction for early retirement is
1/180 for each of the first 36 months the employee is under full retirement
age when his or her annuity begins and 1/240 for each additional month.
Rail employees with 30 or more years of service are eligible for regular
annuities based on age and service at age 60. Certain early retirement
reductions are applied if the employee first became eligible for a 60/30
annuity July 1, 1984, or later and retired at ages 60 or 61
before 2002.
Employees who retire at 60 or older with
at least 30 years of railroad service are referred to as 60/30 retirees.
Disability awards are based either on
total disability or on occupational disability. A
total disability
annuity is based on disability for all employment and is payable at any age to
employees with at least 10 years of railroad service. Employees with 5-9 years
of service, if at least 5 years were after 1995, may qualify for tier I only
before retirement age on the basis of total disability if they also meet
certain social security earnings requirements. An employee is considered
totally disabled if medical evidence shows that a permanent physical or mental
condition exists which prevents the performance of any regular work. A
condition is considered to be permanent if it has lasted or may be expected to
last for at least 12 months.
An occupational disability
annuity is based on disability for the employee’s regular railroad occupation
and is payable to employees with a current connection with the rail industry
at age 60 if the employee has 10 years of service, or at any age if the
employee has at least 20 years of service. An employee is considered
occupationally disabled if the physical or mental condition is such that the
employee is permanently disabled for work in his or her regular railroad
occupation, even though the employee may be able to perform other kinds of
work.
Of the year’s 3,200 disability awards, 1,100 averaging $1,677 per month were
for total disability and 2,000 averaging $2,978 were for occupational
disability. Many employees who are disabled for all employment but are
otherwise qualified for an occupational disability annuity are initially
awarded occupational disability annuities in order to expedite payment.
.
Number of monthly
beneficiaries,
September 30, 2005, and 2010 (thousands)
Amount of benefits paid,
fiscal years 2005 and 2010 (millions)

| 1 |
Includes $62.7
million in fiscal year 2005 and $60.3 million in fiscal year 2010 for
supplemental annuities. |
| 2 |
Includes
divorced spouses. |
Average monthly amount,
September 30, 2005, and 2010
| 1 |
Without
supplemental annuity. |
| 2 |
Includes
divorced spouses. |
An estimated four-fifths of all employees recently awarded disability
annuities will meet the medical criteria for a disability freeze
determination. The standards for freeze determinations follow social security
law and are comparable to the criteria for granting total disability. Also, an
employee granted a disability freeze may qualify for early Medicare coverage
and lower Federal income taxes on his or her annuity.
Of the employees who were awarded regular annuities in fiscal year 2010,
nearly 9,700, or 70 percent, last worked for a railroad either in the
calendar year their annuity began or in the preceding year. Such retirements
are termed “immediate,” while those that occur 2 or more calendar years after
the year of last railroad employment are called “deferred.” As a group,
immediate retirees represent career railroad employees who worked in the
industry until retirement. Awards based on immediate retirement averaged
$3,191 per month, compared to $1,650 for the 4,200 awards based on deferred
retirement. Immediate retirees averaged 33 years of railroad service,
considerably more than the average of 18 years for deferred retirees. Of the
year’s awards, 54 percent of normal age retirements were immediate. While 93
percent of all 60/30 retirements were immediate, only 15 percent of the
reduced age awards to employees with less than 30 years of service were
immediate. Immediate retirements accounted for 71 percent of the year’s
disability awards.
The 273,800 retired employees on the rolls as of September 30, 2010, were
being paid regular monthly annuities averaging $2,196. The table below
presents data by type of annuity for these benefits.
|
Age |
Beginning at full retirement
age or over |
22,000 |
8 |
$1,621 |
45 |
Unreduced, beginning at age 60
to under full retirement age |
95,500 |
35 |
2,862 |
92 |
Reduced, beginning at age 60
to under full retirement age
|
72,800 |
27 |
1,470 |
35 |
|
Disability
|
83,500 |
31 |
2,221 |
81 |
|
Total |
273,800 |
100 |
$2,196 |
70 |
|
Note:
Detail may not add to total due to rounding. |
Of the 83,500 disability annuities being paid, 20,400 were for total
disability and 63,100 for occupational disability. The two types of disability
annuities averaged $1,508 and $2,452, respectively. In fiscal year 2010, nearly
$373 million was paid in total disability annuities and $1,888 million in
occupational disability annuities.
About 190,600 employees on the rolls at the end of fiscal year 2010 were
immediate retirees and their regular annuities averaged $2,560 per month.
Annuities of the 83,200 deferred retirees averaged $1,364. Although their
average railroad retirement annuity was much lower, a greater proportion of the
deferred annuitants also received social security benefits--29 percent compared
to 4 percent for the immediate retirees. Moreover, the average social security
benefit paid to deferred retirees was higher than that paid to immediate
retirees. Combined railroad retirement and social security benefits to deferred
retirees who were dual beneficiaries averaged $1,554, while combined benefits to
immediate retirees averaged $2,246. The table below presents numbers of
beneficiaries and average benefit amounts for employees on the rolls who were
receiving social security benefits, and for those who were not, by type of
retirement.
|
Receiving social security
benefit |
|
Number |
31,900 |
8,100 |
23,800 |
Average monthly amount:
Railroad
retirement (regular)
Social
security
Combined
benefit |
$645
1,085
1,730 |
$1,364
882
2,246 |
$400
1,154
1,554 |
|
Not receiving social
security benefit |
|
Number |
241,800 |
182,400 |
59,400 |
|
Average monthly amount |
$2,401 |
$2,613 |
$1,751 |
|
Note:
Detail may not add to total due to rounding. |
Regular employee annuities consist of as many as three components: tier I,
tier II, and a vested dual benefit. Reductions for early age retirement are
made in all components in cases where the employee retired before full
retirement age with less than 30 years of railroad service. The tier I
component is based on the employee’s combined railroad and social security
covered earnings, and is reduced by the amount of any social security benefit
that the employee receives. The gross tier I amounts of employees on the rolls
at the end of fiscal year 2010 averaged $1,710 per month. Tier I amounts of
nearly 7,700 employees were completely offset by social security benefits.
Tier I amounts being paid averaged $1,563.
The employee tier II component is based solely on railroad earnings. Tier II
amounts being paid at the end of fiscal year 2010 averaged $679. Employees are
eligible for vested dual benefits if, based on their own earnings, they met
certain vesting requirements and qualified for both railroad retirement and
social security benefits at the end of 1974, or, in some cases, at the end of
an earlier year of last railroad service. About 29,000 retirees were receiving
vested dual benefits averaging $162 at the end of the fiscal year.
Supplemental employee annuities
A supplemental annuity is payable to employees with a current connection with
the rail industry at age 60 if the employee has at least 30 years of service, or
at age 65 if the employee has 25-29 years of service. The employee must also
have had some rail service before October 1981.
Some 7,300 supplemental annuities were awarded in fiscal year 2010, about 300
more than in fiscal year 2009. Approximately 5,600 of the awards (76 percent) began
concurrently with the employee’s regular annuity, while the remaining 1,700 were
to employees already receiving a regular annuity. Supplemental annuity awards
averaged over $41 per month after court-ordered partitions; 86 percent were at
the current maximum rate of $43. Supplemental annuities are reduced for any part
of a private railroad pension attributable to employer contributions. During the
fiscal year, 2,100 supplemental annuities were not awarded because they were
entirely offset by private pensions. In a few cases, the supplemental annuity
was partially offset by the pension, or the supplemental annuity was not offset
because the pension was reduced.
Supplemental annuities were being paid to almost 121,200, or 44 percent, of the
retired employees on the rolls at the end of the 2010 fiscal year. These
annuities averaged $42 after court-ordered partitions; over 100 of them were
paid under 1937 Act amendments, which stipulated a maximum rate of $70.
Spouse and divorced spouse annuities
Annuity awards to spouses and divorced spouses of retired employees numbered
11,300 in fiscal year 2010, 300 more than in the previous year. The table below
presents numbers and average amounts of spouse and divorced spouse annuities
awarded during the year and being paid at the end of the year, by type of
annuity and whether subject to age reduction.
| Monthly spouse benefits |
Awarded in
fiscal year 2010 |
In current-payment
status on
September 30, 2010 |
| Number |
Average
amount |
Number |
Average
amount |
|
Beginning at full retirement age or over |
1,200 |
$534 |
17,000 |
$446 |
|
With minor or disabled child in care |
400 |
1,066 |
1,800 |
1,118 |
Unreduced, beginning at age 60
to under full retirement age |
5,900 |
1,327 |
62,300 |
1,177 |
|
Reduced rate |
3,100 |
461 |
52,100 |
521 |
| Total |
10,600 |
976 |
133,200 |
826 |
|
Divorced spouse annuities |
700 |
528 |
3,900 |
504 |
| Grand total |
11,300 |
$950 |
137,100 |
$817 |
| Note:
Detail may not add to total due to rounding. |
If an employee is at least age 62 and retires with 10-29 years of railroad
service, or has 5-9 years of service and at least 5 years were after 1995, the
employee’s spouse is eligible for an annuity at age 62. Full retirement age
for a spouse is gradually rising from 65 to 67, depending on the year of
birth. Early retirement reductions are applied to the spouse annuity if the
spouse retires before full retirement age. The reduction for early retirement
is 1/144 for each of the first 36 months the spouse is under full retirement
age when her or his annuity begins and 1/240 for each month (if any) over 36.
If an employee retires with at least 30 years of service and is at least age
60, the employee’s spouse is eligible for an annuity at age 60. Prior to 2002,
certain early retirement reductions were applied to the tier I component of
such a spouse annuity if the employee retired before age 62, unless the
employee attained age 60 and completed 30 years of service prior to July 1,
1984. If a 30-year employee retired at age 62, no age reduction applied to the
spouse annuity. December 2001 legislation liberalized early retirement
benefits for 30-year employees retiring at ages 60 or 61 after 2001 and their
spouses. A spouse of an employee qualified for an age and service annuity is
eligible for a spouse annuity at any age if caring for the employee’s
unmarried child, and the child is under age 18 or the child became disabled
before age 22.
Of the 3,100 reduced spouse annuities awarded in fiscal year 2010, 100
averaging $691 per month were to spouses of 30-year employees and some 3,000
averaging $456 were to spouses of employees with less than 30 years of
service.
At the end of fiscal year 2010, more than 133,200 spouse annuities averaging $826
per month were being paid. Nearly 3,900 divorced spouse annuities averaging
$504 per month were also being paid. These included some 50 averaging
$547, where the employee was not yet entitled to an annuity. Families with an
employee and spouse on the rolls were paid combined railroad retirement
benefits averaging $3,155. This included $2,329 in regular and supplemental
employee annuities and $826 in spouse annuities.
Approximately 52,300, or 38 percent, of the spouses and divorced spouses on
the rolls were also receiving social security benefits. Combined railroad
retirement and social security benefits to these annuitants averaged $1,239
per month, including $317 in railroad retirement benefits and $922 in social
security benefits. Railroad retirement annuities to the 82,600 spouses not
receiving social security benefits averaged $1,138, while railroad retirement
annuities to the 2,200 divorced spouses not receiving social security benefits
averaged $686.
Like regular employee annuities, spouse annuities consist of up to three
components. The tier I component equals one-half of the employee’s tier I
amount before any reduction for the employee’s social security benefit. The
spouse tier I amount is reduced for the spouse’s receipt of a social security
benefit and may be reduced for a spouse’s public service pension. The tier I
portion may also be reduced if the spouse receives a railroad retirement
employee annuity, but this reduction is usually restored through an addition
to the spouse tier II amount. Divorced spouses receive only a tier I benefit.
The spouse tier II component equals 45 percent of the employee’s tier II
amount. Railroad retirement amendments in 1981 precluded further awards of
vested dual benefits to spouses.
Of the 133,200 spouses on the rolls at the end of fiscal year 2010, 91,500
were being paid tier I amounts averaging $728 per month. The tier I amounts of
41,800 spouses were completely offset by other benefits also due. Spouse tier
II amounts averaged $355. Vested dual benefits averaging $142 were being paid
to 300 spouses. The 3,900 divorced spouses on the rolls at the end of fiscal
year 2010 were being paid tier I amounts averaging $525 per month, not
reflecting all annuity adjustments.
Lump-sum retirement benefits
A lump-sum benefit may be payable at retirement to employees who received
separation or severance payments after 1984. This benefit approximates the tier
II payroll taxes deducted from separation or severance payments that did not
yield additional service credits for retirement. Some $0.5 million was paid in
separation/severance lump-sum benefits during fiscal year 2010.
Employees who have at least 10 years of railroad service and are not entitled to
a vested dual benefit may be eligible for a dual retirement tax refund if they
had concurrent railroad retirement and social security earnings within the
period 1951-74. The refund is equal to the social security taxes that the
employee paid on the combined railroad and social security earnings in excess of
the annual railroad retirement creditable earnings maximum. During the 2010
fiscal year, the RRB paid about 1,300 dual retirement tax refunds averaging
$81. Most of the payments were to employees retiring during the year. Less than
50 refunds were to survivors, mostly widows, of employees who died before
receiving the refund. Employees entitled to dual retirement tax refunds for
years after 1974 may claim them on their Federal income tax returns.
Survivor
Monthly benefits
Annuity awards to survivors of deceased railroad employees numbered 7,700
during fiscal year 2010, 100 less than the previous year. About 143,900 survivor
annuities were being paid at the end of the fiscal year, including 300
temporarily paid at spouse or divorced spouse annuity rates pending recomputation to widow(er)s’ rates.
Some 114,900, or 80 percent, of the
survivor annuities were to aged widows and widowers.
The table below presents numbers and average monthly amounts of survivor
annuities, by type, for those awarded in the year and those being paid at the
end of the year.
|
Monthly survivor benefits |
Awarded in
fiscal year 2010 |
In current-payment
status on
September 30, 2010 |
| Number |
Average
amount |
Number |
Average
amount |
|
Aged widow(er)s' |
6,200 |
$1,740 |
114,900 |
$1,329 |
|
Disabled widow(er)s' |
200 |
1,536 |
4,300 |
1,108 |
|
Widowed mothers' (fathers') |
100 |
1,778 |
800 |
1,643 |
|
Remarried widow(er)s' |
200 |
1,064 |
4,200 |
896 |
|
Divorced widow(er)s' |
700 |
963 |
9,600 |
880 |
Children's:
Under age 18
Student
Disabled |
300
*
100 |
1,212
1,443
1,144 |
1,800
100
8,200 |
1,264
1,414
859 |
| Parents' |
* |
$798 |
* |
$935 |
| Total |
7,700 |
. . . |
143,900 |
. . . |
|
*Fewer than 50.
Note:
Detail may not add to total due to rounding.
|
Survivor annuities, like regular employee and spouse annuities, consist of as
many as three components: tier I, tier II and, for widows and widowers only, a
vested dual benefit. As with spouses, legislation in 1981 precluded new awards
of vested dual benefits to widow(er)s. The tier I component is computed
according to social security formulas and is based on the deceased employee’s
combined railroad and social security earnings. A reduction is made for the
survivor’s receipt of a social security benefit. There may also be a tier I
reduction if the survivor receives a railroad retirement employee annuity or
public pension. Remarried and divorced widow(er)s receive a tier I benefit only.
A dependent parent receives only a tier I amount if another family member is
also receiving benefits or if the parent has remarried.
Survivor tier II amounts are figured as a percentage of an employee tier II
benefit. Prior to 2002, the percentages were 50 percent for a widow(er), 15
percent for a child, and 35 percent for a parent. The total tier II amount for a
survivor family was subject to a minimum of 35 percent and a maximum of 80
percent of the employee tier II benefit, and all survivor tier II amounts were
proportionately adjusted when either limit applied. December 2001 legislation
established an “initial minimum amount” for widow(er)s which provides a tier II
benefit equal to 100 percent of the tier II amount of the deceased employee. The
maximum tier II amount payable to a family rose to 130 percent of the employee’s
tier II amount. Widows and widowers are guaranteed a total tier I and tier II
amount not less than what they were paid as a spouse, any necessary increase
being added to tier II.
Aged widow(er)s, who are eligible for benefits at age 60, have their tier I and
tier II amounts reduced if the annuity begins before full retirement age. The
eligibility age for unreduced annuities is gradually rising from age 65 to age
67. The maximum age reductions range from 17.1 percent to 20.36 percent,
depending on the widow(er)’s date of birth. Excluding about 300 annuities
temporarily paid at spouse or divorced spouse rates, aged widow(er)s’ annuities
being paid at the end of the 2010 fiscal year included 54,400 which were reduced
for age. Aged widow(er)s’ tier I amounts being paid averaged $1,121 per month.
In almost 7,700 cases, the tier I amount was wholly offset by reductions for
other benefits. Nearly 37,900 aged widow(er)s were also receiving social security
benefits, and these averaged $855. Tier II amounts averaged $284. More than 1,200
vested dual benefits averaging $69 were being paid to aged widow(er)s.
The tier I and tier II amounts of disabled widow(er)s’ annuities, which begin at
ages 50-59, are reduced 28.5 percent for age. Tier I amounts being paid to
disabled widow(er)s on the rolls at the end of fiscal year 2010 averaged $931
(in about 200 cases, the tier I amount was wholly offset by reductions). Social
security benefits being paid to more than 1,400 disabled widow(er)s averaged
$812. Tier II amounts averaged $218, while the 100 vested dual benefits being
paid averaged $85.
Tier I amounts paid to widowed mothers and fathers (widows and widowers caring
for children) generally equal 75 percent of the full amount payable to an aged
widow(er) before any reductions, similar to a social security mother’s or
father’s benefit. Eligible children and grandchildren are paid this same tier I
amount. However, if the sum of the tier I amounts of all members of a survivor
family exceeds the social security family maximum, then tier I amounts are
proportionately reduced so that the total equals the maximum. Reductions for the
family maximum usually occur when the family includes three or more
beneficiaries. Tier I amounts being paid as of the end of fiscal year 2010
averaged $1,210 for widowed mothers and fathers and $865 for children. Fewer
than 50 mothers (fathers) and some 2,300 children received social security
benefits averaging $1,018 and $564, respectively. Tier II amounts paid mothers
(fathers) and children averaged, respectively, $461 and $99.
Lump-sum survivor benefits
A lump-sum death benefit can be payable at the time of an employee’s death
only if there are no survivors immediately eligible for monthly benefits. For
survivors of employees who had at least 10 years of railroad service before
1975, the lump-sum death benefit is based on the employee’s earnings through
1974, with a maximum amount of approximately $1,200. If the employee completed
the 10th year of service after 1974, the lump-sum death benefit is limited to
$255, the maximum benefit payable under social security law, and only the widow
or widower living in the same household is eligible for the benefit. Lump-sum benefits may also be payable
to survivors of employees with less than 10 years of service, but at least 5
years after 1995, if the employee met the social security insured status
requirements. More than 3,700 lump-sum death benefits averaging $915 were
awarded during fiscal year 2010. Approximately 500 benefits were to
widow(er)s, while 3,300 were to other individuals who paid the funeral expenses.
Another lump-sum survivor benefit, the residual payment, can be made if no other
benefits based at least in part on an employee’s railroad service will be
payable in the future, and the total of prior benefit payments is less than what
the employee paid in pre-1975 railroad retirement taxes. Fewer than 50 residual
payments were awarded in the 2010 fiscal year; they averaged $2,133.
Partition Payments
The Pension Protection Act of 2006, as amended, continues the
court-ordered partitioned portion of the tier II, vested dual and supplemental
benefit payments to former spouses after the death of the employee. It also
allows for payment of court-ordered partitioned payments where the employee is
not entitled to an annuity if (1) the employee has 120 months of railroad
service or 60 months of service after 1995, and (2) both the employee and spouse
or divorced spouse are 62 for a full month, or, if the employee is deceased, the
employee would be 62 for a full month.
At the end of fiscal year 2010, there were some 700 spouses and
divorced spouses receiving payments averaging $287 where the
employee was deceased or not otherwise entitled to an annuity. While all but one received
a partitioned tier II benefit, only 9 percent received a partitioned vested dual
benefit and 35 percent received a partitioned supplemental benefit.
Medicare Enrollments
The Medicare program provides health insurance to persons ages 65 and older,
as well as persons under age 65 who have been entitled to monthly benefits based
on total disability for at least 24 months or who suffer from chronic kidney
disease requiring hemodialysis or transplant. In addition to the basic hospital
insurance, or Part A, plan, which is financed through payroll taxes, there is an
elective supplementary medical insurance, or Part B, plan for which monthly
premiums are charged.
Eligible railroad retirement annuitants and social security beneficiaries whose
benefits are payable by the Railroad Retirement Board are automatically enrolled
under both plans, but Part B may be declined by the annuitant or beneficiary.
Eligible nonretired persons must apply in order to obtain Medicare coverage. The
RRB automatically enrolled almost 22,800 beneficiaries for Medicare during
fiscal year 2010. As of the end of the fiscal year, nearly 476,200 persons
were enrolled in the Part A plan, and about 458,800 (96 percent) of them were
also enrolled in Part B.
Except for benefits for services in Canada, which are paid from the Railroad
Retirement Account, railroad enrollees are paid Part A benefits from the Federal
Hospital Insurance Trust Fund, the same as persons covered under the social
security system. Part B benefits are paid from the Federal Supplementary Medical
Insurance (SMI) Trust Funds. The carrier for Part B claims of railroad Medicare
enrollees made payments totaling $870 million in the 2010 fiscal year.
The regular monthly premium for medical insurance during fiscal year 2010 was
$96.40 for coverage through December 2009 and $110.50 thereafter.. However, due
to the "hold-harmless" provision related to no cost-of-living increase effective
December 2009, most beneficiaries who had premiums withheld prior to January
2010 continued to pay a $96.40 premium in calendar year 2010.
Beneficiaries with modified adjusted gross incomes above certain thresholds pay
higher Part B premiums. The RRB generally withholds Medicare premiums for
annuitants from their benefit payments, and at the end of the fiscal year over
435,200 annuitants were having their premiums withheld. Of the remaining
Part B enrollees, more than 2,200 were paying premiums to the RRB, either
directly or through an intermediary, and 21,300 had their premiums paid by State
agencies. The RRB periodically transfers premiums to the SMI Trust Funds.
Railroad Unemployment and Sickness
Insurance Program
Financial Operations
Financing sources for the railroad unemployment and sickness insurance
program during fiscal year 2010 exceeded costs by $101.1 million and the
net position increased by $101.1 million from $46.4 million at the end of fiscal
year 2009 to $147.5 million at the end of fiscal year 2010. For fiscal year 2010
as compared to fiscal year 2009, total financing sources for the railroad
unemployment and sickness insurance program increased by $158.4 million (156.8
percent) to $259.4 million.
Railroad Unemployment and
Sickness Insurance Program
Prepared
on an accrual basis of accounting.
For payment of temporary
extended unemployment benefits and administrative costs authorized under the Worker, Homeownership, and Business Assistance Act of 2009.
For payment of temporary extended unemployment benefits authorized under the
American
Recovery and Reinvestment Act of 2009.
Includes accrued interest
expense for loan from the Railroad Retirement Account and program costs for Railroad Unemployment Insurance - Extended Benefit Payments
(Worker, Homeownership, and Business Assistance Act of 2009).
Unemployment and Sickness
Insurance Program
Financing Sources - Fiscal Year 2010 (In Millions)
GROSS TOTAL: $259.4
|
Less Transfers-Out and carriers'
refunds of $16.3 million. |
|
Worker, Homeownership, and Business
Assistance Act of 2009 funding.. |
Costs - Fiscal Year 2010
(In Millions)
TOTAL: $158.3
Financing
Sources
The primary ongoing financing source of the railroad unemployment and sickness
insurance program is a payroll tax on railroad employers, based on the taxable
earnings of their employees. The employees themselves are not taxed.
Each employer pays taxes at a rate which takes into consideration its employees’
actual incidence of benefit usage. Under experience rating, employers whose
employees have low incidences of unemployment and sickness pay taxes at a lower
rate than those with higher levels of benefit usage. Each employer’s rate also
has a component for administrative expenses and a component to cover costs
shared by all employers. The rate applies to monthly earnings up to an indexed
maximum. In calendar year 2010, the taxable earnings base was the first $1,330
of each employee’s monthly earnings. The earnings base is indexed each year by a
rate which is equal to approximately two-thirds of the annual rate of increase
in the maximum base for railroad retirement tier I taxes.
In 2010, the basic tax rates on railroad employers, including covered commuter
railroads, ranged from a minimum of 2.15 percent (which included a surcharge of
1.5 percent) to a maximum of 12 percent. Most employers were assessed the
minimum rate in 2010. New employers in 2010 paid an initial rate of 2.51
percent.
Employer Payroll Taxes
Payroll taxes by employers totaled $98.4 million during fiscal year 2010.
This was an increase of 5.9 percent or $5.5 million more than the previous
year.
Interest
Cash not needed immediately for unemployment and sickness insurance benefits or
operating expenses is held in the Federal Unemployment Insurance Trust Fund and
invested by the Secretary of the Treasury. The fund earned an average rate of
return of 4.2 percent in fiscal year 2010, of which the Railroad Retirement
Board earned $1.5 million as its pro rata share.
Costs
Total costs for the railroad unemployment and sickness insurance program
decreased by $6.2 million (3.8 percent) to $158.3 million.
Benefit Payments
During fiscal year 2010, unemployment insurance benefit payments decreased by
$11.9 million (10.2 percent) to $104.5 million. Sickness insurance benefit
payments increased $4.0 million (8.3 percent) to $52.1 million.
Benefit Operations
Net unemployment and sickness benefits totaling $190.5 million were paid in
the 2009-2010 benefit year, $67.6 million more than in the prior year.
Beneficiaries numbered 41,200, in comparison to the previous year’s total of
some 37,600. Over 1,400 employees received both unemployment and sickness
benefits during the 2009-2010 benefit year. The number of unemployment benefit
claimants increased by more than 16 percent, while sickness benefit claimants
increased approximately 1 percent. Total unemployment benefit payments increased
by about 78 percent, while net sickness benefits increased by almost 16 percent.
The substantial increases in unemployment benefits and beneficiaries can be
attributed to a national economic recession. The number of employees qualified
for benefits under the Railroad Unemployment Insurance Act fell more than 1
percent to 252,300.
Benefits are payable for each day of unemployment or sickness in excess of 7
during the first 14-day registration period in a benefit year. During benefit
year 2009-2010, there were 16,000 and 14,300 unemployment and sickness benefit
waiting period claims, respectively.
|
Note: |
Railroad unemployment and sickness
benefits are paid on the basis of benefit years beginning July 1 and ending
June 30 of the following year. Consequently, operational data in this
“Benefit Operations” section are generally presented for this time span,
rather than fiscal years beginning October 1 and ending September 30. |
Unemployment
The effect of the national economic decline on the railroad industry is
apparent by the large increases in unemployment benefits and beneficiaries.
Some 24,800 railroad workers were paid $138.2 million in unemployment benefits
during the 2009-2010 benefit year, including $26.8 million in temporary extended
benefits under the American Recovery and Reinvestment Act of 2009 (ARRA) and the
Worker, Homeownership, and Business Assistance Act of 2009 (WHBAA). The number
of benefit claimants increased by 3,500 from the prior year total of
21,400, while the benefit amount rose $60.4 million from the year-earlier total
of $77.8 million. The claimant count increased for the third straight year. The
average number of compensable days per unemployment benefit claimant was 90 in
benefit year 2009-2010 as compared to 63 in the previous benefit year. The
large increase reflected not only the national recession, but the availability
since June 2009 of temporary extended unemployment benefits under ARRA and WHBAA.
The mid-month unemployment count in the 2009-2010 benefit year began with a July
count of 11,100 claimants. The count sporadically dropped and rose in the
following months until it peaked
at 12,200 in January 2010 due to claims under WHBAA. After January 2010, the
count dropped during the following months until reaching a benefit year low of
4,000 in June 2010. For the 2009-2010 benefit year as a whole, the weekly
number of claimants averaged 9,000 in comparison to an average of 6,100 in the
previous benefit year. The overall unemployment benefit claimant rate,
measured in relation to numbers of employees qualified to receive benefits under
the Railroad Unemployment Insurance Act during a particular time period,
increased to 10 per 100 qualified from the previous year's level of 8 per 100
qualified, continuing to reflect the impact of the national economic recession.
The median age for all unemployment benefit claimants was 38 years, the same as
in the previous benefit year.
Sickness
The number of sickness benefit claimants during the 2009-2010 benefit year was
17,800, about 200 higher than in the previous year. The previous year claimant count was the
lowest since sickness benefits began in benefit year 1947-1948. Gross sickness
benefits of $77.0 million were paid, $5.3 million more than in the prior benefit
year. Net sickness benefits totaled $52.4 million, reflecting repayment of a
large amount of benefits following settlements of suits for injuries. Benefits
payable for an injury are recoverable if the claimant is awarded damages or
receives a settlement for the injury. Net benefits increased by $7.2 million in
comparison with the previous year.
Major unemployment and
sickness benefit operations,
benefit years 2009-2010 and 2008-2009
|
Applications
|
45,900 |
24,500 |
21,500
|
54,100 |
32,600 |
21,500 |
|
Claims |
406,300 |
265,900 |
140,400
|
304,300 |
166,900 |
137,400 |
|
Claimants |
41,200 |
24,800
|
17,800
|
37,600 |
21,400 |
17,600 |
|
Net amount of benefits |
$190,533,200 |
$138,175,100 |
$52,358,100 |
$122,961,500 |
$77,803,800 |
$45,157,700 |
Number of payments
Normal
Extended |
293,500
67,700 |
184,800
56,300 |
108,600
11,400 |
237,900
18,400 |
132,000
7,100 |
105,900
11,300 |
|
Total |
361,200 |
241,200 |
120,000 |
256,300 |
139,100 |
117,200 |
Average amount per 2-week registration period
Normal
Extended |
$560
544 |
$554
547 |
$568
529 |
$531
482
|
$522
457
|
$542
497 |
|
Total |
557 |
553 |
565 |
528 |
520 |
538 |
|
|
Starting in June 2009, includes
temporary extended unemployment benefits authorized by the American Recovery
and Reinvestment Act of 2009. Beginning in November 2009, temporary
extended unemployment benefits are also being paid under the Worker,
Homeownership, and Business Assistance Act of 2009. The benefit year
2008-2009 amount totaled $1.1 million and the benefit year 2009-2010 amount
totaled $26.8 million. |
|
|
Benefits
for both unemployment and sickness were paid to approximately 1,300
employees in benefit year 2008-2009 and 1,400 employees in benefit year
2009-2010. Those claimants who had only a non-compensable waiting period are
not included in the beneficiary counts since no benefits were paid. |
The utilization rate for sickness benefits increased for the first time in
six years. The previous year was at a historically low level. The average
duration of sickness increased for the second consecutive benefit year
Among the most common causes of sickness were injuries that included fractures
or wounds (affecting 26 percent of beneficiaries), arthritis and disk disorders
(22 percent), circulatory and heart disease (8 percent), and mental disorders,
including drug and alcohol addictions (11percent). The median age of all
sickness benefit claimants was 52 years; the same as in the previous benefit year.
|
2006-2007 |
7.6 |
67 |
|
2007-2008 |
7.2 |
66 |
|
2008-2009 |
6.9 |
67 |
|
2009-2010 |
7.0 |
68 |
Claimants under the
Railroad Unemployment Insurance Act,
Benefit Years 2005-2006 through 2009-2010

Unemployment and Sickness
Benefit Claimants By Age,
Benefit Year 2009-2010
Railroad Employment
Average monthly railroad employment in fiscal year 2010 fell about 4 percent
to 219,000 from the 227,000 average of the previous year, as the nationwide
recession continued to severely affect the railroad industry throughout calendar
year 2009. After experiencing an all-time low of 214,000 in January 2010,
railroad employment began to rebound, increasing in all but two months after
January 2010. By September 2010 railroad employment had risen to 224,000.
Employment in the railroad industry was affected by an increase in rail traffic,
which can be attributed to declines in industrial production. Although
freight-ton-miles in the October-December 2009 quarter were 8 percent lower than
in the same quarter of 2008, freight-ton-miles in the April-June 2010 quarter
were almost 15 percent higher than in the same quarter of the previous year.
Overall, fiscal year 2010 railroad freight-ton-miles were 4 percent higher than
the previous year.
Average Railroad
Employment
Fiscal Years 2006 through 2010

Note.--Numbers
for 2010 are preliminary.
|