Public Affairs | RRB.Gov

Financing Unemployment and Sickness Insurance

Under the Railroad Unemployment Insurance Act, an employee's eligibility for benefits is based on taxable earnings in a calendar year and normally applies only to benefits in the benefit year starting the following July 1. For example, qualifying earnings in calendar year 2016 ordinarily give rise to normal benefits only in the benefit year beginning July 1, 2017. Given this limited period of potential benefits, the financing of railroad unemployment and sickness benefits is essentially a short-term proposition in comparison to the financing of retirement benefits.

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Income Taxes

Unemployment benefits paid by the RRB are subject to Federal income taxes, just like unemployment benefits paid under the State government programs.

Sickness benefits paid by the RRB, except for sickness benefits resulting from on-the-job injuries, are subject to Federal income tax under the same limitations and conditions that apply to the taxation of sick pay received by workers in other industries.

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Appeals

Employees

If a claimant disagrees with a decision made on a claim, he or she has 60 days from the date of the initial notice of the decision in which to file a written statement requesting reconsideration from the RRB office that made the decision. This step is mandatory before a decision may be appealed to the RRB's Bureau of Hearings and Appeals. Failure to request reconsideration within 60 days will result in forfeiture of further appeal rights.

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Claiming Sickness Benefits

An application for sickness benefits can be obtained from railroad labor organizations, railroad employers, any RRB office, or at www.rrb.gov. An application and a doctor's statement of sickness are required at the beginning of each period of continuing sickness for which benefits are claimed.

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Claiming Unemployment Benefits

Claimants can apply for unemployment benefits by mail or online.

To apply by mail, claimants must obtain an application from their labor organization, employer, local RRB field office, or our website. The completed application should be mailed to the local RRB field office as soon as possible and, in any case, must be filed within 30 days of the date on which the claimant became unemployed or the first day for which he or she wishes to claim benefits. Benefits may be lost if the application is filed late.

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Payments

Applicants for unemployment-sickness benefits can check with their local RRB field office as to when they can expect their first payment. Customer service standards and progress reports are available in field offices and on our website.

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Free Placement Service

The Railroad Unemployment Insurance Act authorizes the RRB to operate a free placement service. The primary purpose of the placement service is to secure new employment for experienced railroad workers who have lost their jobs.

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Disqualifications

Can an employee be disqualified from receiving benefits?

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Benefit Provisions

An earnings test is applied to unemployment claims. If a claimant's earnings for days worked, and/or days of vacation, paid leave, or other pay, in a 14-day registration period are more than a certain indexed amount, no benefits are payable for any days of unemployment in that period. That registration period, however, can be used to satisfy the waiting period requirement described below. Earnings include pay from self-employment and railroad, nonrailroad, and part-time work.

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Provisions of the Railroad Unemployment Insurance Act

The Railroad Unemployment Insurance Act provides benefits for qualified railroad employees. The Act is designed to restore part of their wage loss arising from unemployment or sickness (including maternity). Payments are made for days of unemployment or sickness in a benefit year, which generally begins on July 1, to employees who had sufficient earnings in the preceding calendar year (called the base year) to meet the qualifying conditions.

Who is considered a qualified employee?

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