Medical Benefits provided by the Hospital Association, properly known as "Union Pacific Employee Health Systems" (UPREHS). However, the dental and vision benefits are not provided by UPREHS, nor are your dependents covered under this plan (exception: an enrolled Medicare spouse). Dues are currently $100 per month and are deducted from the first half payroll each month (i.e., the check you receive on or about the 30th of the month). The latest regulations were amended on October 1, 2002. The most updated list of providers is available on the Internet or by calling directly to the Salt Lake City office. A pharmacy drug formulary was issued in January 2001. Members have a co-pay of $15 for each office visit and plus co-pay for pharmacy in multiples of $5 per 30 day’s prescription (i.e., $5 generic, $10 name brand). If an out-of-network healthcare provider is used, even on a referral basis, UPREHS will only pay 80% of the reasonable and customary charge after the co-pay; benefits are greatly reduced if members to seek healthcare outside the network (see chart on next two pages).

The address is 795 North 400 West, Salt Lake City UT 84103-1452.

The toll-free number is 800-547-0421

The fax number is 801-595-4399

The Internet address is http://www.uphealth.com/

The pharmacy address is PO Box 3228, Ogden, UT 84409

The pharmacy number is 800-331-6353

The pre-approval number is 800-572-5508.

This number must be called at least 3 days prior to any and all inpatient hospital admissions and certain outpatient procedures or benefits are reduced by 40 percent.  Emergency services performed without pre-approval must be reported within 24 hours to avoid the 40 percent reduction.

UPREHS also offers an optional plan of secondary insurance, referred to as CHC Supplemental, for an additional $60 per month (deducted from same check as your normal dues). This plan provides coverage for your dependents over and above what the National Health & Welfare Plan provides, i.e., the remaining 15 percent plus the deductible. It does not provide coverage for anything that has been denied by the primary insurance carrier.

BENEFITS SUMMARY FOR CHALLENGER HEALTH PLAN

IMPORTANT: All services must be medically necessary and be covered benefits. Payments for out-of-network services are a percentage of the Plan Allowable Amount, NOT the billed charges.

Coverage for dependents of UTU Members is provided by the "National Railway Carriers and United Transportation Union (NRC/UTU) Health and Welfare Plan." For dependents of those employees eligible for coverage under it, the "NRC/UTU Plan" replaces coverage provided under the traditional "Railroad Employees National Health and Welfare Plan" (Original Plan).

The NRC/UTU Plan gives eligible members their choice of two different healthcare plan administrators to provide their benefits. The plan administrator for coverage under the original plan is only United HealthCare (which was originally The Travelers, then MetraHealth). The NRC/UTU Plan offers, in addition to that provided by United HealthCare, coverage provided by Highmark Blue Cross Blue Shield of Pittsburg, PA effective January 1, 2005, replacing the Regence BCBS plan that has been in effect for several years.

Healthcare plans available under the NRC/UTU Plan include a Comprehensive Health Care Benefit (CHCB); a Mental Health and Substance Abuse Care Benefit (MHSA); a Managed Pharmacy Services Benefit (MPSB); and a Managed Medical Care Program (MMCP), i.e., HMO. A new benefit, Basic Healthcare Benefit (BHCB), is also offered for those whose healthcare needs are minimal. These Benefits are not insured; they are payable directly by the NRC/UTU Plan.

Both United HealthCare and Highmark provide coverage under the CHCB and/or MMCP. Employees living in Colorado can choose to be covered by a MMCP if they desire; otherwise they (and the majority of Local 446 members living in Wyoming and Nebraska) are covered by a CHCB. In either case, the eligible employee may choose whether United HealthCare or Highmark Blue Cross Blue Shield shall be the plan administrator. When the NRC/UTU Plan was negotiated, the benefits offered by both United HealthCare and Regence (now Highmark) were made equal; neither plan administrator can offer greater benefits in an effort to entice business away from the other. The main competition between these plan administrators is found in the service that they provide (e.g., speed of resolving claims, or hassle-free claim handling), and the competitive rate paid by the nation’s rail carriers in order to provide the contractual coverage, which is a major factor in negotiating our national contract.

Your benefits under the Mental Health and Substance Abuse Care Benefit (MHSA) are administered by ValueOptions, Inc. Formerly some of you were covered by Magellan, but they are no longer part of the team.

The Managed Pharmacy Services Benefit (MPSB) is administered by Merck-Medco Rx Services, regardless of whether United HealthCare or Blue Cross is chosen.

You should have a booklet explaining the NRC/UTU Plan; it has a light blue cover and was made effective January 1, 2000. There is an open enrollment period each October to afford employees the opportunity to change plan administrators for the coming year. The opportunity to change between MMCP and CHCB is also given during the enrollment period. Toll-free telephone numbers are provided in the summaries below.

Employee and dependents Dental Benefits are provided under the Railroad Employees’ National Dental Plan administered by Aetna Insurance Company. Eligibility is based upon completing one (1) year of service with the same railroad and commences on the first day of the calendar month following that requirement. Employee must also meet the previous-month-seven-day requirement.

Employee and dependents Vision Benefits are provided under the Vision Service Plan. Eligibility is based upon completing one (1) year of service with the same railroad and commences on the first day of the calendar month following that requirement. Employee must also meet the previous-month-seven-day requirement.

Benefit Contacts and Plan Overview

(GP-1023000-G) Life Insurance and Accidental Death and Dismemberment (AD&D) Benefit

Dues: None.

Crafts Covered: All crafts including Hospital Association members. (Dependents are not covered).

Telephone Contact & Claim Address:

Metropolitan Life Insurance Company 800-310-7770

MetSource Life Recordkeeping Center, P.O. Box 6122, Utica, NY 13504-6122

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Dues: Premiums vary with age of employee and the amount of insurance purchased.

Crafts Covered: All crafts. (Employees must sign up within first year of employment).

Telephone Contact & Claim Address:

Metropolitan Life Insurance Company 800-357-4482

MetSource Life Recordkeeping Center, P.O. Box 6129, Utica, NY 13504-6129

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(GP-12000) Plan Booklet amended through January 1, 1999.

Dues: None – But must meet "Requisite Amount" of service.

Crafts Covered: All crafts

Telephone Contact: 877-277-3368 (877-2RR-DENT) or 616-942-6400

Internet Address: www.aetna.com

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Plan Booklet amended through October 2000.

Dues: $100 per month, deducted from first pay period in month (the check you receive on the 30^th).

Crafts Covered: All crafts.

Telephone Contact: 800-547-0421 Fax: 801-595-4399

Mental Health / Substance Abuse 888-484-3568

The pre-approval number is 800-572-5508. This number must be called at least 3 days prior to any and all inpatient hospital admissions and certain outpatient procedures or benefits are reduced by 40 percent. Emergency services performed without pre-approval must be reported within 24 hours to avoid the 40 percent reduction.

The address is 795 North 400 West, Salt Lake City, UT 84103-1452.

The Internet address is http://www.uphealth.com/

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Group # 690100 for dependents of employees; one has choice of administrators (two separate packages) from year to year via open enrollment each October. Plan Booklet amended through January 1, 2000.

Dues: None – But must meet "Requisite Amount" of service.

Crafts Covered: All Crafts.

Telephone Contact & Claim Addresses for the Choices of Healthcare Package Options Available:

1) United HealthCare: CHCB, MMCP or BHCB plans, 800-691-0013 or 888-445-4379

Send claims to P. O. Box 30985, Salt Lake City, UT 84130-0985

For mandatory prior approval for certain tests and procedures 800-842-4555

To Report Suspicious Billing and Fraud 800-414-2013

Internet Address: http://www.myuhc.com/

ValueOptions: MHSA (800-934-7245)

Merck-Medco: MPSB (800-842-0070)

OR

2) Highmark BlueCross BlueShield: CHCB, MMCP or BHCB

Railroad Dedicated Service Unit, P.O. Box 890381, Camp Hill, PA 17089-0381

Telephone 866-267-3320

For mandatory prior approval for certain tests and procedures 800-452-8507

Internet Address: http.//www.highmark.com

3) ValueOptions: MHSA 800-934-7245

4) Merck-Medco: MPSB 800-842-0070

Note: CHCB = Comprehensive Health Care Benefit

MMCP = Managed Medical Care Program (not available in Wyoming)

BHCB = Basic Healthcare Benefit

MHSA = Mental Health & Substance Abuse Care Benefit

MPSB = Managed Pharmacy Service Benefit

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Group GA-46000: United HealthCare.

Dues: None for basic GA-46000; if Plan E supplemental coverage is attached, dues are currently $130 per month per person.

Crafts Covered: All crafts

Telephone Contact & Claim Address:

GA-46000 (incl Plan E): 800-842-5252 or 800-842-9905

P. O. Box 30985, Salt Lake City, UT 84130-0985

For mandatory prior approval for certain tests and procedures: 800-842-4555 To Report Suspicious Billing and Fraud 800-414-2013

Internet Address: http://www.myuhc.com/

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Group GA-23111: United HealthCare

Dues: Plan C - $370 (employee or dependents) / $50 (student child) / $175 (incapacitated child);

Plan D - $325 Medicare Supplement;

Plan F - $140, Medicare Supplement;

all per month per person. The various plans provide different levels of coverage as options.

Crafts Covered: All crafts

Telephone Contact & Claim Address:

Plan C: 800-842-5252 or 800-842-9905

P. O. Box 30985, Salt Lake City, UT 84130-0985

Plan D or F: 800-809-0453

P. O. Box 30304, Salt Lake City, UT 84130-0304

For mandatory prior approval for certain tests and procedures: 800-842-4555

To Report Suspicious Billing and Fraud 800-414-2013

Internet Address: http://www.myuhc.com/

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Dues: None – But must meet "Requisite Amount" of service.

Crafts Covered: All

Telephone Contact & Claim Address:

ValueOptions (if United HealthCare or Highmark is administrator) 800-934-7245

Railroad Unit, Attn: Claims, P. O. Box 1002, Merrifield, VA 22116

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Dues: Included with basic UPREHS dues.

Co-Pay: $5 per 30-day supply (generic) or $10 per 30-day supply (name brand) through Mail-Order Pharmacy; $6 (generic) or $8 (brand name) per 30-day supply through contract network pharmacies. Tier 3 Non-Formulary drugs are $40 per 30-day supply through Mail-Order Pharmacy.

Telephone Contact: 800-331-6353 or 800-547-0421

The pharmacy address is PO Box 3228, Ogden, UT 84409

The Internet address is http://www.uphealth.com/

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Group #690100 - (NRC/UTU):

Group # GA46000:

Dues: None – But must meet "Requisite Amount" of service.

Crafts: All

Telephone Contact & claim Address:

Plan D GA-23111 800-842-0304

PAID Prescriptions, LLC, P.O. Box 702, Parsippany, NJ 07054

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Administered by Mid-Atlantic Vision Service Plan, Inc. Plan booklet amended to January 1, 1999.

Dues: None – But must meet "Requisite Amount" of service.

Telephone Contact & Claim Address (not necessary if using VSP Doctor):

Vision Service Plan 888-877-4782

Attn: Non-VSP Provider Claims, P.O. Box 997100, Sacramento, CA 95899-7100

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SUMMARY OF CONTINUATION OF COVERAGE
IF YOU CEASE TO RENDER COMPENSATED SERVICE

(OTHER THAN CONTINUATION UNDER COBRA
OR FAMILY AND MEDICAL LEAVE ACT)

1. For complete information concerning termination of coverage, including modifications of the provisions outlined above, see the section of NRC/UTU booklet entitled "Eligibility and Coverage" beginning on page 10 (page 8 in the National Vision Plan booklet). Under certain circumstances and provided the Plan is continued, benefits may be payable after coverage terminates. Information in this regard is also contained in the Eligibility for Benefits section on pages 25 through 29.

2. For a Furloughed Employee, Vacation Pay must be received prior to furlough. However a Furloughed Employee must have rendered compensated service or received Vacation Pay during a total of three months prior to the date of furlough or he will be covered only until the end of the month following the month in which he last rendered compensated service. For a Dismissed Employee, Vacation Pay must be received prior to severance of the employment relationship. An Eligible Employee who becomes disabled while covered under 690100 or GA-23000 as a furloughed, suspended or dismissed employee will be covered as described in the above chart in the section entitled "Disability."

3. In the event an Eligible Employee dies while covered, coverage for Dependents Health Care Benefits continues to the end of the fourth month following the month in which the Eligible Employee died.

4. For a Retired Employee, Vacation Pay must be received prior to the relinquishment of employment rights for retirement.

5. For a Furloughed Employee, healthcare through UPREHS is only for three months, not four; for him to continue coverage, said Furloughed Employee must pay his own premium ($100/month), due by the 5^th day of the month.

6. For any reason listed above, or any other reason, where the paycheck stops (i.e., no payroll deduction), employees having the CHC Supplemental Coverage with UPREHS must arrange to make payments directly to continue coverage.

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The following information was downloaded from the Railroad Retirement Board website on September 16, 2004. It has been edited for the Local 446 Handbook.

This pamphlet is issued for the purpose of general information. Certain limitations, exceptions, and special cases are not covered.

Introduction

The Railroad Unemployment Insurance Act provides two kinds of benefits for railroad employees: unemployment benefits, when you are not working but are ready, willing and able to work; and sickness benefits, when you are unable to work because of illness or injury. Sickness benefits are also payable to female employees unable to work because of pregnancy, miscarriage, or childbirth.

Benefit payments are based on biweekly claims filed with the Railroad Retirement Board, the Federal agency responsible for administering the Railroad Unemployment Insurance Act.

The funds to pay unemployment and sickness benefits are provided by payroll taxes on railroad employers only. Employees do not pay unemployment insurance taxes.

The following describes the requirements for railroad unemployment and sickness benefits, the amounts payable, and how to claim them.

Base Year-Benefit Year

A new benefit year for unemployment and sickness benefits begins every July 1. To qualify in the benefit year beginning July 1, 2004, you must have base year earnings of $2,800 in calendar year 2003, not counting earnings of more than $1,120 per month. To qualify in the benefit year beginning July 1, 2005, you must have base year earnings of $2,825 in calendar year 2004, not counting earnings of more than $1,130 per month. If the base year was your first year of railroad service, you must also have worked in five months of that year.

If you do not meet these requirements but have at least 10 years of service, you might still be able to qualify under the conditions for extended and accelerated benefits.

Biweekly Benefits

The maximum daily benefit payable in benefit year 2004-05 is $56 and, for biweekly claims, maximum benefits can total $560. While the daily benefit rate will remain at $56 in July 2005, it may increase at the beginning of each future benefit year depending on the growth in average national wages.

Registration and waiting period --Benefits are normally paid for the number of days of unemployment or sickness over four in 14-day registration periods. Initial sickness claims must also begin with four consecutive days of sickness. However, during the first 14-day claim period in a benefit year, benefits are only payable for each day of unemployment or sickness in excess of seven which, in effect, provides a one-week waiting period. But, only one seven-day waiting period is required during any period of continuing unemployment or sickness, even if that period continues into a subsequent benefit year.

Strike benefits --If you are unemployed because of a strike conducted in accordance with the Railway Labor Act, benefits are not payable for days of unemployment during the first 14 days of the strike, but benefits are payable during subsequent 14-day periods. If a strike is in violation of the Railway Labor Act, unemployment benefits are not payable to employees participating in the strike. However, employees not among those participating in such an illegal strike, but who are unemployed on account of the strike, may receive benefits after the first two weeks of the strike.

Note --Sickness benefits payable for the first six months after the employee last worked are subject to tier I railroad retirement payroll taxes, unless benefits are being paid for an on-the-job injury.

While a benefit year waiting period cannot count toward a strike waiting period, the 14-day strike waiting period may count as the benefit year waiting period if you subsequently become unemployed for reasons other than a strike later in the benefit year.

Duration of Benefits

Extended benefits --If you have 10 or more years of service and exhaust your normal unemployment or sickness benefits, you may be eligible to receive extended benefits for up to 65 days (13 consecutive weeks). Also, if you are not qualified for normal benefits in the current benefit year, but received normal benefits in the previous year, you may still be eligible for extended benefits.

In order to qualify for extended unemployment benefits, you must not have voluntarily quit work without good cause and not have voluntarily retired. To qualify for extended sickness benefits, you must not have voluntarily retired and must be under age 65.

Accelerated benefits --If you have 10 or more years of service and your earnings do not qualify you for unemployment or sickness benefits in the current benefit year, but will qualify you in the next benefit year, you may be able to receive normal unemployment or sickness benefits before the regular beginning date of the next benefit year. To be eligible, you must have 14 or more consecutive days of either unemployment or sickness; not have voluntarily retired or, if claiming unemployment benefits, quit work without good cause; and be under age 65 when claiming sickness benefits.

General Requirements

To be eligible for unemployment benefits, you must be ready, willing and able to work and be available for work. A "day of unemployment" is a day on which you meet these conditions and do not receive any pay, are not disqualified, and have properly registered for unemployment benefits. If you are in train and engine service, any calendar day on which you do not work solely because of a mileage limitation or work-restriction agreement or solely because you are between regularly assigned trips or tours of duty, or because you missed a turn in pool service, is not considered a day of unemployment.

To be eligible for sickness benefits, you must be unable to work because of illness or injury. A "day of sickness" is a day on which you meet this condition and for which you do not receive any pay and have filed a "statement of sickness" signed by your doctor or other authorized individual. This statement provides evidence of your medical condition and its expected duration.

You may not receive benefits for any day for which you receive pay. This includes railroad and non-railroad wages, salary, pay for time lost, pay while sick, dismissal allowances, most wage guaranty payments, vacation pay, holiday pay, military reservist pay, earnings from self-employment, or remuneration other than subsidiary remuneration.

However, payments received under an approved nongovernmental supplemental unemployment or sickness insurance plan, your own health or accident insurance policy or a group insurance policy will not affect entitlement to unemployment or sickness benefits and should not be reported on your claims.

Also, an earnings test is applied to unemployment claims. If a claimant's earnings for days worked, and/or days of vacation or paid leave, 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. Earnings include pay from self-employment and railroad, non-railroad, and part-time work. Earnings also include pay that you would have earned except for your failure to mark up or report for duty on time, or because you missed a turn in pool service or were otherwise not ready or willing to work.

For the benefit year beginning July 2004, the earnings test is $1,120; and for the benefit year that begins July 2005 the test will be $1,130. These amounts correspond to the base year monthly compensation amounts used in determining eligibility for benefits in each year. But, even if an earnings test applies on the first claim in a benefit year, this will not prevent the first claim from satisfying the waiting period in that benefit year.

On the other hand, earnings of not more than $15 a day from work which is substantially less than full-time and not inconsistent with the holding of normal full-time employment may be considered subsidiary remuneration and may not prevent payment of any days in a claim. However, be sure to report all full and part-time work on your claims, regardless of the amount of your earnings, so the Board can determine whether it affects your benefits.

How to Claim Benefits

Sickness --An application for sickness benefits can be obtained from railroad employers, railroad labor organizations, any Board office or printed off the Board's Web site (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. The Board suggests that you keep an application form on hand for use in claiming sickness benefits, and that your family knows where the form is kept and how to use it.

Attached to each application is a statement of sickness which must be completed by your doctor. If you become unable to work because of sickness or injury, complete your application and take or send it to your doctor for completion of the statement of sickness.

If you are too sick to complete the application, someone else may do it for you. In such cases, a member of your family should also complete the "Statement of Authority to Act for Employee," which accompanies the statement of sickness.

After completion, the forms should be mailed to the Board's headquarters in Chicago by the seventh day of illness or injury for which benefits are claimed. (Employees cannot file for sickness benefits through the Board’s Web site.) After the Board receives your application and statement of sickness and determines eligibility, biweekly claim forms are mailed to you for completion and return to a Board field office for processing.

The claim forms must be received at the Board within 30 days of the last day of the claim period, or within 30 days of the date the claim form was mailed to you, whichever is later. Benefits may be lost if an application or claim is filed late. If an unemployment or sickness application or claim is filed late, you should include a signed statement explaining the reason for the late filing.

As with claims for unemployment benefits, the Board must notify your base-year employer each time a claim for sickness benefits is filed. That employer has the right to submit information relevant to the claim before the Board makes its initial determination. If your current employer is not your base-year employer, your current employer is also notified. In addition, the base-year employer is notified each time benefits are paid to you. While the base-year employer may appeal the decision to pay benefits, the appeal does not prevent the timely payment of benefits. However, you may be required to repay benefits if the appeal is successful.

Payments --If you file an application for benefits you may expect to receive a claim form, or a decision on your application, within 15 days of the date you filed your application. When you file your biweekly claims, you may expect to receive a payment, or a decision on your claim, within 15 days of the date a Board office receives your claim form.

However, some claims for benefits may take longer to handle than others if they are more complex, or if a Board office has to get information from other people or organizations. If this happens, you may expect an explanation and an estimate of the time required to make a decision.

The normal method of payment for railroad unemployment and sickness benefits is by Direct Deposit. With Direct Deposit, payments are issued directly to a claimant's bank, savings and loan, credit union or other financial institution. Applicants for unemployment and sickness benefits are asked to provide information needed for Direct Deposit enrollment.

Free Placement Service

The Railroad Unemployment Insurance Act authorizes the Board 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.

When you apply for unemployment benefits you also apply for employment service. You will probably be interviewed by a Board representative who will try to help you secure employment if you do not have good prospects of returning to your former job. You may be referred by the representative to a suitable railroad job; otherwise, an effort will be made to place you in a non-railroad job for which you appear qualified. As part of its placement service, the Board maintains a list of job openings reported by railroads to its field offices. The list is available for review at all offices of the Board and on the Board's Web site (www.rrb.gov).

Disqualifications

If you have been paid a separation allowance by your employer, you cannot receive unemployment or sickness benefits for roughly the period of time it would have taken to earn the amount of the allowance.

If you leave either your railroad or non-railroad job voluntarily without good cause, you will be disqualified for railroad unemployment benefits until you have returned to railroad work and earned wages sufficient to qualify for benefits again.

If you leave work voluntarily with good cause, you will be disqualified for unemployment benefits for periods in which you could receive unemployment benefits under another law. If you are not qualified for other unemployment benefits, you may receive railroad unemployment benefits.

If you refuse to accept suitable work, or fail to follow instructions to apply for work or to report to a State unemployment office or a Board office for an interview, you may be disqualified for unemployment benefits for 30 days.

You will be disqualified for unemployment benefits for any day on which you take part in a strike which began in violation of the Railway Labor Act or in violation of the established rules and practices of your labor organization.

You may be disqualified for sickness benefits if you fail to take a medical examination when required by the Board.

You will be disqualified for both unemployment and sickness benefits for 75 days if you make a false or fraudulent statement or claim to obtain benefits. You may also be subject to fine or imprisonment. The Railroad Retirement Board conducts checks with Federal agencies, all 50 States (as well as the District of Columbia and Puerto Rico), and railroads to detect fraudulent benefit claims. The Board also checks with physicians to verify the accuracy of medical statements supporting sickness benefit claims.

Receipt of Other Benefits

If you receive a regular retirement or survivor benefit under the Railroad Retirement Act, Social Security Act, or any other social insurance law for days for which you are also entitled to benefits under the Railroad Unemployment Insurance Act, your unemployment or sickness benefits are payable only to the extent to which they exceed the other payments for those days. Examples of other such social insurance payments are military pensions, firefighters' and police pensions, or certain workers' compensation payments. Claimants should report all such other payments promptly to avoid having to refund benefits later. 

There is no reduction in unemployment or sickness benefits for benefits paid under a Board-approved nongovernmental sickness insurance plan, such as a supplemental sickness benefit plan established by a railroad. Similarly, there is no reduction in benefits if you receive supplemental unemployment benefits under a Board-approved nongovernmental unemployment benefit plan. But unemployment and sickness benefits provided under the Railroad Unemployment Insurance Act are not payable to you if you also receive Federal/State unemployment or sickness benefits under other laws, including Canadian law, for the same period of time.

Damages

If you receive sickness benefits for an injury or illness for which you are paid damages, the Board is entitled to reimbursement of either the amount of the benefits paid for the injury or illness, or the net amount of the settlement (after deducting your gross medical, hospital, and legal expenses), whichever is less.

Protective Allowances

Unemployment benefits can sometimes be paid even though you are covered by a job protection plan which guarantees you a certain amount of work or wages each month. However, if you receive a protective allowance from your employer for a period for which benefits were paid, some or all of the benefits will have to be refunded. Report such allowances promptly to the Board.

Appeals

Employers.--Employers may protest the payment of a claimant’s benefits, but such protests do not prevent the timely payment of benefits. However, employees may be required to repay benefits if their employers' protests are ultimately successful.

Employees.--If you disagree with a decision made on your claim, you have 60 days from the date of the initial notice of the decision in which to file a written statement requesting reconsideration from the Board office that made the decision. This step is mandatory before a decision may be appealed to the Board's Bureau of Hearings and Appeals. Failure to request reconsideration within 60 days will result in forfeiture of further appeal rights.

If the case involves a benefit overpayment of more than 10 times the maximum daily benefit rate, you may request a waiver of repayment. A request for waiver filed within 60 days will, in certain cases, defer recovery of the overpayment from subsequent benefit payments. If you request waiver, you may be asked to complete a financial statement on a form provided by the Board. If dissatisfied with the reconsideration or waiver decision of a Board office, you may, within 60 days, appeal to the Board's Bureau of Hearings and Appeals.

If not satisfied with the Bureau of Hearings and Appeals' decision, you may further appeal, within 60 days, to the three-member Board.

If not satisfied with the three-member Board's decision, you may file a petition for a review of your claim by a U.S. Court of Appeals. A petition for review must be filed within 90 days of the notice of the Board's decision.

Income Taxes

If you have any comments or suggestions regarding the presentation of information in this publication, please let us know. You can fax us at 1-312-751-7154, e-mail us at opa@rrb.gov or write us at the following address:

Office of Public Affairs
U.S. Railroad Retirement Board
844 North Rush Street
Chicago, IL 60611-2092

Railroad Retirement Board

721 19^th St, Room 177

P.O. Box 8869

Denver, CO 80201-8869

Phone 303/844-4311

Fax 303/844-2609

The remaining pages in this portion of the Local 446 Handbook are four reprints from the RRRB concerning retirement. Certain portions thereof will definitely be modified if the 60-30 bill ever becomes law. These pages are included only to educate the membership on the need to have the law passed, as well as to illustrate the need for planning ahead.

United States of America Form G-177 (02-02)

Railroad Retirement Board (Reproduced for Local 446 Handbook)

CHART 1 - DETERMINING YOUR ANNUITY BEGINNING DATE

The term Full Retirement Age (FRA) means the age at which an employee with less than 30 years of railroad service can receive a full annuity (not reduced for early retirement).

If you have less than 30 years of railroad service, FRA for your Tier 1 age reduction is age 65 if you were born before January 2, 1938. The FRA for persons born after January 1, 1938, will gradually increase over a 20-year period to age 67, as illustrated in the following chart. FRA for your Tier 2 age reduction will remain at age 65 if you had any creditable railroad service before August 12, 1983. Otherwise, the FRA for your Tier 2 age reduction will gradually increase in the same manner as FRA for your Tier 1 age reduction.

(Full Retirement Age also affects Tier 1 annuity deductions due to earnings as described in Chart 3, regardless of your total years of railroad service.)

CHART 2 - DETERMINING YOUR FULL RETIREMENT AGE

You may be eligible for an annuity based on total disability at any age if you:

1. meet the railroad service requirement. You must either:

a. have at least 120 months of creditable railroad service; or,

b. have at least 60 months of creditable railroad service after 1995 and an SSA Insured Status; and,

2. are Permanently Disabled for all possible types of work. (Employees are considered to be Permanently Disabled if they qualify for a period of disability under Social Security Administration rules and the impairment is expected to last at least 12 months or result in death); and,

3. have stopped any Substantial Gainful Activity (SGA) (as explained in the next section).

You must file an application to receive a railroad retirement total and permanent disability annuity. Under the law, a disability annuity cannot begin earlier than the first day of the sixth month following the month in which the disability occurs. If you have less than 120 months of creditable railroad service, your Tier 2 cannot begin before you attain age 62.

To qualify for a total and permanent disability annuity, you must stop all Substantial Gainful Activity (SGA). SGA is the performance of significant duties, that are usually done for pay or profit, over a reasonable period of time. Significant duties are activities that are useful in a job, or operation of a business, and that have economic value. For more information on SGA, contact the nearest field office of the RRB.

You may qualify for an employee occupational disability annuity if you are Permanently Disabled for work in your regular railroad occupation and you have a Current Connection with the railroad industry (as explained on page 3). The earliest date the occupational disability can begin depends on your railroad service. You are eligible:

1. at any age, if you have at least 240 months of creditable railroad service; or,

2. at age 60, if you have 120 - 239 months of creditable railroad service.

You must file an application to receive a railroad retirement occupational disability annuity. Under the law, a disability annuity cannot begin earlier than the first day of the sixth full month following the month in which disability onset occurs.

If your annuity is based on 60-119 months of railroad service after 1995, you qualify for a Tier 1 if you have an SSA Insured Status based on combined railroad and social security earnings. You have an SSA Insured Status if:

1. your annuity is based on age and you have at least 40 quarters of coverage; or,

2. your annuity is based on total disability and you have a Disability Freeze (D/F) under SSA rules. (See Booklet RB-1D Employee Disability Benefits for an explanation of a D/F). The D/F cannot be deemed.

Your Regular Railroad Occupation is the one in which you worked:

1. in more months that you worked in any other occupation, in or outside of the railroad industry, during the last 5 years in which you were employed (the 5 years do not have to be consecutive); or

2. in at least one-half of all the months worked in the last 15 consecutive years.

In order to receive your employee railroad retirement age and service or disability annuity, you must stop all railroad work for pay (no longer carried on the payroll). For an age and service annuity, you must also relinquish rights to railroad employment. Also note that, after the annuity is awarded, payment cannot be made for any month in which you return to work for a railroad employer.

Some retired railroad employees may be eligible to receive a supplemental annuity of $23 through $43 from the RRB. This is in addition to your regular age and service or disability annuity.

The amount of your supplemental annuity is reduced if you receive monthly pension payments, or lump-sum pension payments, from your former railroad employer, which are based in whole or in part on contributions from that railroad employer. Your own contributions to your pension account do not cause a reduction.

To be eligible for the supplemental annuity, you must:

1. Be at least age 65 with at least 300 months (25 years) of railroad service, or be at least age 60 with at least 360 months (30 years) of railroad service; and,

2. Have at least 1 month of railroad service before October 1, 1981; and,

3. Have a Current Connection with the railroad industry (as explained below); and,

4. Be receiving your employee railroad retirement annuity.

You must have a Current Connection with the railroad industry to qualify for an occupational disability annuity, a supplemental annuity or for future survivor benefits. You have a regular current connection with the railroad industry if you meet either of the following conditions:

1. You worked for a railroad in at least 12 of the 30 consecutive months immediately before the month in which your annuity begins; or,

2. You worked in the railroad industry in at least 12 months in any earlier period of 30 consecutive months and you did not work in any significant non-railroad employment between the end of that 30-month period and the month in which your annuity begins.

If you do not have a regular current connection, you may have a Deemed Current Connection for only a supplemental annuity or for future survivor benefits if you:

1. Have at least 25 years of railroad service; and,

2. Stopped working in the railroad industry involuntarily and without fault for a non-medical reason on or after October 1, 1975; and,

Did not decline an offer to remain in or return to railroad employment in the same class or craft as your most recent railroad service (regardless of the number of miles you would have had to move to accept such job).

Any earnings can have an effect on disability annuities.

If your annuity is based on age and service and you are receiving social security benefits, your Tier 1 benefit is not reduced for your non-railroad earnings. If you are not receiving social security benefits, the Annual Earnings Exempt Amount is the amount of non-railroad earnings you can have in a year without losing part of your Tier 1 benefit and/or the Tier 1 benefit of your spouse. There are separate Annual Earnings Exempt Amounts for persons at Full Retirement Age (FRA) and those under FRA.

Use Chart 2 to determine your FRA and then refer to Chart 3 below and Form G-77a How Earnings Affect Payment of Retirement Annuities.

CHART 3 – DETERMINING YOUR ANNUAL EARNINGS EXEMPT AMOUNT

Your Last Pre-Retirement Non-Railroad Employer (LPE) is generally any non-railroad employer(s) for whom you performed service at the same time or after you stopped railroad work, but before your age and service or disability beginning date.

Any earnings can have an effect on disability annuities. For age and service annuities, any earnings after your annuity beginning date from your LPE, at any age, may cause a reduction to your supplemental annuity, your Tier 2 benefit and the Tier 2 benefit of your spouse.

The reduction is $1 for every $2 earned (subject to the maximum reduction of 50% of the employee and spouse Tier 2 benefits and 50% of any supplemental annuity).

If you would like more information, read Booklet RB-1 Age and Service Employee Annuities or booklet RB-1D Employee Disability Benefits before you come in to file for your annuity. These booklets are available at www.rrb.gov.

FORM G-177L (7-89) (Reproduced for Local 446 Handbook)

1) continue working in non-railroad employment or,

  THE RAILROAD RETIREMENT BOARD WILL DETERMINE IF THE NON-RAILROAD EMPLOYMENT IS "LAST PERSON SERVICE"

G-177L (7-89)

United States of America Form G-l77a (02-02)

Railroad Retirement Board (Reproduced for Local 446 Handbook)

The requirement for a spouse annuity based on age depends on the employee's years of creditable railroad service, the employee's age, and your age. The employee must be receiving an annuity and you must file an application for your spouse annuity. When all eligibility requirements are met, a spouse annuity based on your age can begin as explained in Chart 1 and Chart 2. Chart 3 explains Full Retirement Age (FRA).

CHART 1 - AGE REQUIREMENTS - EMPLOYEE HAS AT LEAST 360 MONTHS OF RAILROAD SERVICE

CHART 2 – SPOUSE AGE REQUIREMENTS – EMPLOYEE HAS 60-359 MONTHS OF RAILROAD SERVICE

The term Full Retirement Age (FRA) means the age at which the spouse of an employee with less than 30 years of railroad service can receive a full annuity (not reduced for early retirement).

If the employee has less than 30 years of railroad service, FRA for spouses who were born before January 2, 1938, is age 65. The FRA for persons born after January 1, 1938, will gradually increase over a 20-year period to age 67, as illustrated in the following chart. FRA for your Tier 2 age reduction will remain at age 65 if the employee had any railroad service before August 12,1983, Full Retirement Age for your Tier 2 age reduction will remain at age 65. Otherwise, the Full Retirement Age for your Tier 2 age reduction will gradually increase in the same manner as FRA for your Tier 1 age reduction.

(FRA also affects Tier 1 annuity deductions due to earnings, regardless of the number of the employee’s years of railroad service, as described in Chart 4.)

CHART 3 - DETERMINING YOUR FULL RETIREMENT AGE

The marriage requirement is met if any of the following conditions exist:

A wife may qualify for a spouse annuity, or a husband may qualify for a Tier 1 benefit, at any age, based on a child of the employee in care. The employee must have attained age 62 (or age 60 with 30 years of service) to qualify the spouse for this annuity. The child must be either:

The term Child in Care includes the railroad employee's unmarried natural child, adopted child or dependent stepchild, or under certain conditions, a grandchild whose parents are deceased or disabled. A child is in your care if you exercise parental control over, and are responsible for, the welfare and care of the child. If the child is permanently disabled, but mentally competent, he or she is considered to be in your care if you perform personal services. The RRB will make the final determination regarding the personal services you perform and whether or not they constitute the child being in your care.

Your Tier 1 benefits are not reduced for your non-railroad earnings if you are receiving social security benefits. Otherwise, the Annual Earnings Exempt Amount is the amount of non-railroad earnings you can have in a calendar year without losing part of your Tier 1 Benefit. Use Chart 3, on page 2, to determine your Full Retirement Age (FRA). Then refer to Chart 4 below and Form G-77a, "How Earnings Affect Payment of Retirement Annuities."

The employee's non-railroad earnings over the Annual Earnings Exempt Amount for the employee's age group may also cause a reduction in your Tier 1 benefit.

CHART 3 - DETERMINING YOUR ANNUAL EARNINGS EXEMPT AMOUNT

If the employee’s annuity is based on 60-119 months of railroad service after 1995, you qualify for a Tier 1 benefit if the employee has an SSA Insured Status based on combined railroad and social security earnings. The employee has an SSA Insured Status if:

1. the employee has at least 40 quarters of coverage in age and service cases; or,

2. the employee has a Disability Freeze (D/F) under SSA rules in disability cases. (See Booklet RB-1D Employee Disability Benefits for an explanation of a D/F). The D/F cannot be deemed.

Your Last Pre-Retirement Non-Railroad Employer (LPE) is generally any non-railroad employer for whom you performed service before your annuity beginning date. You may have more than one LPE if you worked for more than one non-railroad employer before your spouse annuity beginning date.

Any earnings after your spouse annuity beginning date from your LPE, at any age, may cause a reduction to your Tier 2 benefit. The reduction is $1 for every $2 earned (subject to the maximum reduction of 50% of your Tier 2 benefit).

If the employee has an LPE employer and the employee works for that employer after your spouse annuity beginning date, those LPE earnings can also cause a reduction to your Tier 2 benefit.

A spouse annuity is not payable for any month in which:

A spouse annuity ends the month before the month in which:

If you would like more information concerning spouse annuities, please request Booklet RB-30

Spouse/Divorced Spouse Annuity before you come in to file for your annuity.

Form G-177a (6-00)

United States of America Form G-177c (2-02)

Railroad Retirement Board (Reproduced for Local 446 Handbook)

When all eligibility requirements are met and you file an application, a divorced spouse annuity based on your age can begin as follows. Full Retirement Age (FRA) is explained in Chart 2.

CHART 1 - DETERMINING YOUR AGE REQUIREMENT

Your Full Retirement Age (FRA) means the age at which you can receive a full divorced spouse annuity with no reduction for early retirement. Full Retirement Age for persons born before January 2, 1938 is age 65. FRA for persons born after January 1, 1938 will gradually increase as illustrated in Chart 2.

FRA also affects the amount of non-railroad earnings you can earn after the annuity beginning date, as explained in Chart 3.

CHART 2 - DETER.MINING YOUR FULL RETIREMENT AGE

In order to qualify for a divorced spouse annuity, your marriage must have ended by final divorce decree and you must meet each of the following requirements:

If the employee’s annuity is based on 60-119 months of railroad service after 1995, you qualify for a divorced spouse annuity if the employee has an SSA insured status based on combined railroad and social security earnings. The employee has an SSA insured status if:

Your divorced spouse annuity is not reduced for your non-railroad earnings if you are receiving social security benefits. Otherwise, your Annual Earnings Exempt Amount is the amount of non-railroad earnings you can have in a calendar year without losing part of your benefit. Use Chart 2 on previous page to determine your Full Retirement Age (FRA). Then refer to Chart 3 below and Form G-77a, How Earnings Affect Payment of Retirement Annuities. The employee's non-railroad earnings over the Annual Earnings Exempt Amount for the employee’s age group may cause a reduction in your benefit.

CHART 3 - DETERMINING YOUR ANNUAL EARNINGS EXEMPT AMOUNT

Your divorced spouse annuity is not payable for any month in which:

Your divorced spouse annuity ends the month before the month in which:

If you would like more information concerning divorced spouse annuities, please request Booklet RB-30 Spouse/Divorced Spouse Annuity before you come in to file for your annuity. This booklet is available at www.rrb.gov.

Form G-177c (2-02)