Home Site Map Contact Us Benefit Online Services Benefit Forms & Publications  
SkipAgency Management & Reports
Benefit Forms & Publications
General Benefit Information
Benefit Online Services
Employer Forms & Publications
Employer Information
Employer Online Services
Financial, Actuarial & Statistical
Genealogy
Legal Information
National RR Investment Trust
News Releases
Office of Inspector General
Public Forms & Publications
Budget Cuts Reduce Railroad Unemployment and Sickness Benefits
PR 13-4 March 2013 View this document in PDF

 
To view and download PDF documents, you need the free Acrobat Reader Read RRB's external link disclaimer. We recommend using the latest version.


 
Viewers with visual disabilities can go to Adobe's Access Website Read RRB's external link disclaimer for tools and information that will help make PDF files accessible.

877-772-5772
General information
Public Affairs 312-751-4777
Media inquiries


As a result of recently implemented budget cuts, the U.S. Railroad Retirement Board (RRB) must reduce railroad unemployment and sickness insurance benefits by 9.2 percent.
 
These reductions stem from a sequestration order which President Obama filed on March 1, 2013, in accordance with the requirements of the Budget Control Act of 2011. The sequestration order sets aside a total of $6 million in funding under the railroad unemployment and sickness insurance program. Given the total amount of spending under the program, a cut of this size made benefit reductions necessary.

The 9.2 percent reduction in railroad unemployment benefits will reduce the maximum daily benefit rate from $66.00 to just under $60.00. As a result, the total maximum amount payable in a 2-week period covering 10 days of unemployment will drop from $660.00 to $599.28.

Certain railroad sickness benefits are reduced for regular tier I railroad retirement taxes of 7.65 percent.  Applying the additional 9.2 percent reduction to these benefits will result in a daily benefit rate of $55.34 and a maximum 2-week payment of $553.44.

The maximum daily benefit rate will increase to $68.00 on July 1, 2013. For days of unemployment and sickness after that date, the reduction will result in a maximum daily benefit rate of $61.74 and a maximum 2-week payout of $617.44. The maximum daily benefit rate for sickness benefits subject to tier I payroll taxes will be $57.02, with a maximum 2-week total of $570.21.

The total sequestration is actually spread out over nine years. This initial reduction will remain in effect through September 30, 2013. The initial reduction amount is based upon projected claims and benefits and may be adjusted as needed. Congress will subsequently determine the amount of any reductions in future years. In addition, any appropriations subsequently enacted in fiscal year 2013 could also result in changes to the reduction amount.

The law exempts social security benefits, as well as railroad retirement, survivor, and disability benefits paid by the RRB, from sequestration.

In fiscal year 2012, the RRB paid $11.3 billion in retirement and survivor benefits to about 573,000 beneficiaries, and net unemployment-sickness benefits of $89 million to about 26,000 claimants.

# # #


Privacy Policy Policies & Links Freedom of Information Act No FEAR Act Data Frequently Asked Questions About Us

Link to RECOVERY.gov
RECOVERY.GOV
Link to USA.gov: The U.S. government's official web portal. U.S. Railroad Retirement Board
844 North Rush Street
Chicago IL, 60611-2092
Toll Free: (877) 772-5772
TTY: (312) 751-4701
Directory: (312) 751-4300
Locate an RRB office near you
RRB Home Page
     
     
Date posted: 03/04/2013
Date updated: 03/04/2013