HEALTH BENEFITS

Index

EMPLOYEE
   Benefits Summary
DEPENDENTS
   Medical
EMPLOYEE and DEPENDENT
   Dental
   Vision
BENEFIT CONTACTS & PLAN OVERVIEW
   Commencement of Coverage
   Accident and Life Insurance
   Dental
   Medical
National Early Retirement Major Medical Benefit Plan
   Group Health Insurance Plan
MENTAL HEALTH AND SUBSTANCE ABUSE
PRESCRIPTION DRUGS   
   Dependents
VISION SERVICE PLAN
TERMINATION OF COVERAGE

   COBRA

 

 

 

 

 

 

 

 

 

 

RAILROAD RETIREMENT BOARD BENEFITS
     Base Year-Benefit Year
   Biweekly Benefits
   Duration of Benefits
   General Requirements
   How to Claim Benefits
      Unemployment 


  

 

 

 

 

 

 

 

 

 

 

 

EMPLOYEE

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

(IN AND OUT-OF-NETWORK SERVICES)

FOR DETAILS REFER TO YOUR PLAN DOCUMENT

EFFECTIVE July 1, 2002

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.

BENEFIT

IN NETWORK

OUT-OF-NETWORK

Physician Visit - $15 Co-Pay

Annual Routine Physical Exam

100%

100%1

Annual Deductible

Not A Benefit

Emergency Ambulance

Emergency Services After $50 Co-Pay2 3

100%

100%

100%

100%

40% After 24 Hours

Formulary Prescription Drugs

No Limit4

Use Of Mail-Order Pharmacy Required For Maintenance Medication

Emergency Only – Co-Pay Required

Inpatient Hospital5

- Maximum Days

Outpatient Hospital

Ambulatory Surgery Center

100%

Unlimited

100%

100%

40%

Unlimited

40%

40%

Chiropractic Services

- Annual Limit

80%

$600

80%

$600

Physical Therapy (56 Modalities)

- 56+ Modalities6

100%

40%

Annual Routine Eye Exam - $15 Co-Pay

- Prescription Eyewear

National Vision Plan (NVP)

NVP

National Vision Plan (NVP)

NVP

Preventive Healthcare

Limited

Limited

Organ Transplants6

- Lifetime Maximum

100%

$100,000

40%

$100,000

Artificial & Surgical Appliances

100%

40%

Skilled Nursing Facility6

- Maximum Days

Nursing Home Care (Domicile)6

Home Health Care6

100%

Unlimited

Not A Benefit

100%

40%

Unlimited

Not a Benefit

40%

Mental Health Services8

Inpatient

Outpatient

Annual Deductible

Annual Maximum

80%

80%

$100

45 Treatments

Not A Benefit

Not A Benefit

Not A Benefit

Not A Benefit

Alcohol/Drug Rehabilitation7

Inpatient

Outpatient

Annual Deductible

Annual Maximum

Lifetime Maximum

Maximum Per Outpatient Visit

80%

$100

$100

30 Days

Yes

$50

Not A Benefit

Not A Benefit

Not A Benefit

Not A Benefit

Not A Benefit

Not A Benefit

Dialysis Outpatient Care

First 30 Months (33 In Some Cases)

31+ Months (Secondary To Medicare)

100%

100% Medicare Supplemental

40%

40% Medicare Supplemental

1Annual Limit $150.00; 75% thereafter
2 Waived if Admitted to Hospital
3 Notify UPREHS Within 24 Hours
4 Co-Pay Required – Mail Order Pharmacy Automated Refills 800-547-0421
5 Hospital Admission Pre-Approval Required (800-572-5508)
6 Call for Pre-Approval – UPREHS Care Coordinator (800-547-0421)

7 Behavioral Health Requires Pre-Approval (888-484-3568)

DEPENDENTS

Medical Benefits

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 DEPENDENT

Dental

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.

Vision

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

Commencement of Coverage

IMPORTANT NOTE
: Commencement of coverage was changed by the following language in the 2003 National Agreement:

"Plan coverage for an "Eligible Employee" and his/her "Eligible Dependents" will commence on the first day of the fourth calendar month after such employee first renders the "Requisite Amount of Compensated Service."  

Coverage for employee and dependent health benefits commences on the first day of the month following the month in which the employee renders compensated service, or receives vacation pay, for an aggregate of at least seven (7) calendar days. This is deemed the "qualifying month" and coverage continues in each succeeding month so long as the seven (7) day service requirement is met in the preceding month. Days spent protecting assignments, but not used through no fault of the employee, count toward meeting the seven (7) day requirement. This requirement applies to all Plans, and is known as the "Requisite Amount of Compensated Service" and "Requisite Amount of Vacation Pay." The specific language of Side Letter #9 of the 1996 Agreement (a.k.a. Arbitration Board No. 559) reads, "…it was not the intent of the parties to affect employees by this change (to the seven-day requirement) where such employees have made themselves available for work and would have satisfied the seven-day rule but for an Act of God, an assignment of work which did not permit satisfaction of the seven-day rule, or because monthly mileage limitations and/or maximum monthly trip provisions prevented an employee from satisfying that rule. Also, where employees return to work from furlough, suspension, dismissal, or disability (including pregnancy), or commence work as new hires, at a time during the month when there is not opportunity to render compensated service on at least seven calendar days during that month, such employees will be deemed to have satisfied the seven-day rule, provided that they are available or actually work every available work opportunity." All references to meeting requirements contained in this publication refer to this "Requisite Amount" even though such might not be specifically mentioned.

 

 

 

ACCIDENT and LIFE INSURANCE

 

Metropolitan Life Insurance Company – Railroad Employees National Health and Welfare Plan (Original Plan)

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

Dues: None.

Plan Overview: This is a paid-up life insurance plan provided by the National Plan. Group Life in the amount of $10,000, reduces to $2,000 paid-up life at retirement. $8,000 is maximum benefit for accidental death and dismemberment. NOT TO BE CONFUSED WITH METLIFE OPTIONAL COVERAGES PLAN DESCRIBED BELOW.

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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Metropolitan Life Insurance Company – OPTIONAL Contributory Group Life & AD&D Insurance (Formerly Equitable)

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

Plan Overview: Employees can purchase either Optional Group Term Life Insurance and/or Voluntary Accidental Death & Dismemberment Insurance for themselves and dependents.

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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DENTAL

The Aetna Life Insurance Company / Aetna U.S. Healthcare - Railroad Employees National Dental Plan

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

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

Plan Overview: Provides benefits to cover dental expenses incurred by a covered employee and eligible dependents.

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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MEDICAL

Union Pacific Employee Health Systems (UPREHS) - Challenger Health Plan

Plan Booklet amended through October 2000.

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

Plan Overview: Provides medical, surgical, hospital, prescription drugs, mental health and substance abuse for the employee.

Provides optional CHC Supplemental Family Plan for dependents to pick up the deductible and the remaining 15% that is not paid by the healthcare plan for dependents (Note: will not pay on what is not covered by such dependents’ plan). Cost: $60 per month additional.

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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National Railway Carriers and United Transportation Union Health and Welfare Plan – (NRC/UTU Plan)

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.

Plan Overview: Provides medical, surgical, hospital (under CHCB, BHCB or MMCP where available), prescription drugs (MPSB), mental health and substance abuse for the dependents (MHSA).

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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Railroad Employees National Early Retirement Major Medical Benefit Plan

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.

Plan Overview: Provides major medical benefits and a managed pharmacy benefit to dependents of eligible retired and disabled railroad employees; however will cover these employees only if not covered by UPREHS. Eligibility for Medicare ceases coverage under this plan.

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 Health Insurance Plan

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.

Plan Overview: Provides major medical benefits for furloughed, dismissed and retired railroad employees and their dependents when coverage under GA-23000, GA-46000 or GA-690100 ends. Plan D is available as a supplement to Medicare.

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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MENTAL HEALTH AND SUBSTANCE ABUSE

MHSA Benefit included in both NRC/UTU Plan and Original Plan

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

Plan Overview: Provides mental health and substance abuse (MHSA) managed care benefits for all dependents and employees not covered by a hospital Association.

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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PRESCRIPTION DRUGS

EMPLOYEE: UPREHS Pharmacy Drug Formulary amended to September, 2003.

Dues: Included with basic UPREHS dues.

Plan Overview: Covers prescription drugs that are medically necessary for employee members. Emergency and one-time-only prescriptions may be obtained from a contract network pharmacy. Medications intended to be taken longer than 30 days must be ordered through UPREHS Mail-Order Pharmacy.

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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DEPENDENT: Merck-Medco Prescription Drug Card Program

Group #690100 - (NRC/UTU):

Group # GA46000:

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

Plan Overview: Covers prescription drugs that are medically necessary for dependents. Use of an In-Network Pharmacy is easiest, as you will pay only the co-pay ($2 generic or $6 for brand-name). Use of an Out-of-Network Pharmacy will result in your being reimbursed for 75% of the cost for only the first 21 days, none thereafter; you must make a claim. There is a mail-order program available.

Crafts: All

Telephone Contact & claim Address:

Above named Plans: 800-842-0070 www.merckmedco.com

Plan D GA-23111 800-842-0304

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

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VISION SERVICE PLAN

Railroad Employees National Vision Plan

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

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

Plan Overview: Provides benefits for employees and dependents for eye examinations and benefits toward vision care expenses including glasses or contact lenses. Eligibility established after one year 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)

 

The Date Coverage Terminates (See Note 1)

Reason for Ceasing to Render Compensated Service

Coverage for Employee and
Dependents
Healthcare Benefits

Furlough

End of third month (UPREHS for employee) or fourth month (NRC/UTU Plan for dependents) following the month in which you last rendered compensated service or received Vacation Pay (See notes 2 & 5)

Suspension or Dismissal

End of fourth month following the month in which you last rendered compensated service or received Vacation Pay (See notes 2 & 5)

Leave of Absence

End of month following the month in which you last rendered the Requisite Amount of Compensated Service or received Vacation Pay

Employment Relationship Terminates other than for Retirement or by Dismissal

Date of termination of employment relationship (See Note 3)

Employment Relationship Terminates for Retirement

End of month following the month in which you last rendered compensated service or received Vacation Pay (See Note 4)

Disability - Inability to Perform Work in your Regular Occupation

Date your disability ends, but in any event when you have failed to render compensated service or receive vacation pay in a calendar year (2 Calendar years for Employee Health Care Benefits.

Pregnancy

End of fifth month following the month in which you last rendered compensated service.

Notes:

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 5th 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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OPTIONAL CONTINUATION OF HEALTH COVERAGE (COBRA)

UPREHS (COBRA) or United HealthCare (COBRA)

Dues: Yes (premiums)

Plan Overview: All employees and their dependents not entitled to Medicare whose medical coverage ends as a result of a termination of employment, reduction in hours, dissolved marriage, failure to meet dependent eligibility status, etc., may continue health coverage at their own expense.

Telephone contacts:

UPREHS 800-877-0618

United HealthCare 800-842-5252

Trustmark – Supplemental Sickness: 800-669-5066

Provident – Supplemental Sickness: 800-542-4231

COBRA refers to a Federal Law, known as the Consolidated Omnibus Budget Reconciliation Act of 1985, which requires that coverage be provided to those no longer eligible, if they desire, at their own expense; written to avoid non-insurability that some persons encounter.

 

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

RAILROAD RETIREMENT BOARD BENEFITS

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

Normal benefits --Normal benefits are paid for up to 130 days (26 weeks) in a benefit year. Benefit rights are exhausted when a benefit year ends (normally June 30) or earlier if benefit payments equal base year creditable earnings. For purposes of determining maximum normal benefits payable in benefit year 2004-05, monthly earnings of up to $1,447 in base year 2003 are counted. In benefit year 2005-06, monthly earnings up to $1,460 in base year 2004 will be counted.

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

Unemployment --In order to receive unemployment benefits, you must file an application for benefits by mail or through the Board’s Web site (www.rrb.gov). If you choose to file by mail, you must obtain an application from your employer, labor organization, local Railroad Retirement Board office or the Board's Web site. The completed application should be mailed to the local Board office as soon as possible and, in any case, must be filed within 30 days of the date on which you became unemployed or the first day for which you wish to claim benefits. Benefits may be lost if the application is filed late.

In order to file for unemployment benefits through the Board’s Web site, or to conduct other business over the Internet, you must first establish an RRB Internet Services account. Employees are encouraged to establish online accounts while still employed so the account is ready if they ever need to apply for these benefits or use other Internet services. Once you establish an online account, you do not need to do so again. Directions for establishing an online account are available by clicking the link "Main Line Services" on the Board’s Web site at www.rrb.gov.

In either case, the local Board office reviews the completed unemployment application and notifies your base-year railroad employer, and your current employer if different. Your employer has the right to provide information about your benefit application. Biweekly claim forms are then mailed to you as long as you remain unemployed and eligible for benefits.

The Board must notify your base-year employer each time you file a claim for unemployment benefits and give that employer an opportunity to submit information relevant to the claim before the Board makes an initial determination on it. Any current employer is also notified. The Board also notifies your base-year employer each time benefits are paid to you. While the base-year employer may protest the decision to pay benefits, such a protest does not prevent the timely payment of benefits. However, you may be required to repay benefits if the protest is successful.

You should contact a Board office if you do not receive a claim or notice of ineligibility within 15 days of submitting an application or claim.

Claim forms should be signed and mailed only on or after the last day of the claim. The completed claim must be received by a Board office within 15 days of the end of the claim or the date the claim was mailed to you, whichever is later. While you can file applications online, employees cannot yet file their biweekly claims over the Internet, but the Board is planning to add this service in the future.

Only one application need be filed during a benefit year even if you become unemployed more than once. In that case, you must request a new claim form from a Board office within 30 days of the first day for which you want 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

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

Sickness benefits paid by the Board, 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.

The Railroad Unemployment Insurance Act specifically provides that railroad unemployment and sickness benefits are not subject to State income taxes. In January of each year, the Board sends railroad employees Form 1099-G showing the total amount of unemployment benefits paid during the previous year and/or a Form W-2 showing the net amount of sickness benefits paid.

For More Information

Claimants may also obtain information on railroad unemployment and sickness benefits by using the automated toll-free RRB Help Line, which is available 24 hours a day, 7 days a week, at 1-800-808-0772. The Board’s Web site at www.rrb.gov is another source of information on railroad unemployment and sickness benefits, and includes access to publications that may be downloaded and a new Internet service to file applications for unemployment benefits online.

Or, if you prefer, you can also contact the nearest office of the Railroad Retirement Board for information about railroad unemployment and sickness benefits. To locate the nearest Board office, you may call the RRB Help Line at 
1-800-808-0772 or access the Board’s Web site at www.rrb.gov. You may also look in the telephone directory under "United States Government," or check with your union representative, a rail employer, a local post office, or the nearest Federal Information Center. Most Board offices are open to the public from 9:00 a.m. to 3:30 p.m., Monday through Friday, except on Federal holidays.

Comments? 

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

Address of Denver Office

Railroad Retirement Board

721 19th 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)

General Conditions Under Which a Person is Entitled to a

Railroad Retirement EMPLOYEE ANNUITY

Age Requirement

The age requirement for an age and service annuity depends on your years of creditable railroad service. You must file an application to receive a railroad retirement annuity. When all eligibility requirements are met, your age and service annuity can begin as explained in Chart 1. Chart 2 explains Full Retirement Age (FRA).

CHART 1 - DETERMINING YOUR ANNUITY BEGINNING DATE

If you have at least:

You can retire the first full month:

Your Tier 1 will have an age reduction if:

Your Tier 2 will:

360 months of railroad service,

you are age 60.

All of the following apply:

*You first met the age or service requirements in a month after June 1984 and before January 2002; and

*you have an annuity beginning date before January 1, 2002; and

*you retire before age 62.

not have an age reduction.

120-359 months of railroad service, with service before 8/12/1983,

you are age 62.

you retire before attaining your Full Retirement Age (FRA).

have an age reduction if you retire before attaining age 65.

120-359 months of railroad service, without service before 8/12/1983,

you are age 62.

you retire before attaining your Full Retirement Age(FRA).

have an age reduction if you retire before attaining your FRA.

60-119 months of

railroad service after

1995.

you are age 62.

 

 

 

 

you retire before attaining your FRA.

 

You must have an SSA Insured Status to receive a Tier I benefit.

have an age reduction if you retire before attaining your FRA

 

 

Full Retirement Age (FRA) for Annuities Based on Less Than 30 Years Service

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.)

Continued on next page

General Conditions Under Which a Person is Entitled to a Railroad Retirement EMPLOYEE ANNUITY (continued)

 

CHART 2 - DETERMINING YOUR FULL RETIREMENT AGE

 

 

 

 

 

 

 

 

Annuity Based on Total Disability

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.

Substantial Gainful Activity

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.

Annuity Based on Occupational Disability

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.

 

 

Continued on next page

 

General Conditions Under Which a Person is Entitled to a Railroad Retirement EMPLOYEE ANNUITY (continued)

SSA Insured Status

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.

Definition of Regular Railroad Occupation

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.

Stop Railroad Employment

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.

Supplemental Annuity

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.

Regular Current Connection

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.

However, work for certain government agencies will not break your current connection. Also, self-employment or employment after your employee annuity beginning date will not break your current connection.

Continued on next page

 

General Conditions Under Which a Person is Entitled to a Railroad Retirement EMPLOYEE ANNUITY (continued)

Deemed Current Connection

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).

Tier 1 Reductions for Non-Railroad Earnings

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

For a year in which:

You may lose up to $1 in Tier 1 benefits for every:

The reduction:

You attain FRA,

 

$3.00 of earnings over the Annual Exempt Earnings Amount for your age group. However, your earnings are only counted for months before the month in which you attain FRA.

Is removed effective the month in which you attain FRA.

You are under your FRA for the entire year,

$2.00 of earnings over the Annual Earnings Exempt Amount for your age group.

Applies for the full year.

You work outside the U.S. for 45 or more hours per month,

$2.00 of earnings. There is no Annual Earnings Exempt Amount for work outside the U.S. However, your earnings are only counted for months before the month in which you attain FRA.

Is removed effective the month in which you attain FRA.

Continued on next page

Tier 2 Reductions for Last Pre-retirement Non-Railroad Earnings

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)

 

GENERAL INFORMATION ABOUT CONTINUING IN OR RETURNING TO NON-RAILROAD

EMPLOYMENT AFTER RETIREMENT

A. WORKING IN NON-RAILROAD EMPLOYMENT AFTER RETIREMENT AFFECTS THE PAYMENT OF AN EMPLOYEE AND SPOUSE ANNUITY

· Prior to December 1, 1988, the employee or spouse had to stop all work for pay outside the railroad industry that was considered "last person service" and also give up any rights to return to this work in order to receive an age and service annuity.

B. "LAST PERSON SERVICE"

· · "Last Person Service" is a term that generally refers to the last employment with a non-railroad person, company or institution prior to retirement which was performed at the same time or after the person stopped railroad employment. Even work for which the employee or spouse received minimum earnings can be considered "last person service" employment.

C. THE EMPLOYEE OR SPOUSE NO LONGER NEEDS TO STOP WORKING IN "LAST PERSON SERVICE" TO RECEIVE AND ANNUITY

· Beginning December 1, 1988, an employee or spouse can

1) continue working in non-railroad employment or,

2) return to work for the last non-railroad person or company for which the employee or spouse ceased employment in order to receive an annuity under the Railroad Retirement Act.

 

However, certain "last person service" work deductions will apply. These deductions are in addition to any work deductions which apply if the employee or spouse earns over the annual earnings exempt amount.

D. EARNINGS RESTRICTIONS

· !f the employee or spouse continues in or returns to "last person-service" employment, the tier II benefit and any supplemental annuity payment is subject to a reduction of one dollar for each two dollars of compensation received in "last person service," up to a maximum of 50 percent of each component.

· ·If an employee continues in "last person service," both the employee and spouse annuity are subject to deductions, even if the spouse is not in "last person service"

· · Regular work deductions which affect the tier I and vested dual benefit components still apply to all earnings over the annual earnings exempt amount, if regular work deductions
apply, the employee or spouse could also lose one dollar for every two dollars earned over the annual earnings exempt amount in these components.

 

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

· The Railroad Retirement Board will determine if non-railroad employment is considered "last person service." Some types of non-railroad work, including self-employment are not considered "last person service" employment no matter when they are performed. These jobs will no have "last person service" earnings restrictions assessed against them.

· Contact the nearest office of the U.S. Railroad Retirement Board for further information Monday through Friday from 9:00 a.m. to 3:30 p.m.

F. THE EMPLOYEE OR SPOUSE MUST CONTACT THE RAILROAD RETIREMENT BOARD IMMEDIATELY IF (S)HE RETURNS TO "LAST PERSON SERVICE" EMPLOYMENT

· An employee or spouse must notify the Railroad Retirement Board immediately, if (s)he returns to work in "last person service" employment.

· !f the employee or spouse is filing for an annuity, this information will be requested at the time of filing.

· A written statement must be submitted if the employee or spouse has already retired and wishes to return to work in "last person service" employment. The statement should include:

· an estimate of the expected average monthly earnings

· the name and address of the employer, and

· the beginning date of the employment.

· The employee or spouse must also submit a final report of these earnings to the Railroad Retirement Board by April 15 of the year following the "last person service" employment. This final report is required by law.

· If the employee or spouse does not notify us promptly, (s)he may be paid more annuity than is due and have to refund the overpayment.

· The employee or spouse should also notify the Railroad Retirement Board immediately, if the previous earnings estimate changes or (s)he stops working.

 

 

G-177L (7-89)

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

Railroad Retirement Board (Reproduced for Local 446 Handbook)

Conditions Under Which a Person is Entitled to a Railroad Retirement SPOUSE ANNUITY

Age Requirement

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

If the employee is retired:

and the employee:

your spouse annuity can begin the first full month you are age 60. Your Tier 1 will:

Your Tier 2 will:

based on age and both attained age 60 and acquired 360 months of railroad service before July 1984,

retired after July 1, 1974, at age 60 or later

not have an age reduction.

not have an age reduction.

based on age and either attained age 60 or acquired 360 months railroad service in July 1984 through December 2001,

retired at age 60 through age 61, with an employee annuity beginning date before January 2002,

have an age reduction based on the employee's age reduction until both you and the employee have attained age 62. You will then have an age reduction for the number of months you are under Full Retirement Age when both you and the employee have attained age 62.

not have an age reduction.

based on age and either attained age 60 or acquired 360 months railroad service in July 1984, through December 2001,

retired at age 62 or later,

not have an age reduction.

not have an age reduction.

based on age with at least 360 months of railroad service,

Retired at age 60 or later with an employee annuity beginning date in January 2002, or later,

Not have an age reduction.

Not have an age reduction.

based on disability with 30 years of service and an annuity beginning date before July 1, 1984

has attained age 60,

not have an age reduction.

not have an age reduction.

 

based on disability with 30 years of service and an annuity beginning date of July 1, 1984, or later

 

 

has attained age 60,

 

 

have an age reduction depending on your spouse annuity beginning date.

· If your spouse annuity begins before January 2002, and begins before your FRA, your Tier 1 will have an age reduction. (You are deemed age 62 on your ABD.)

· If your spouse annuity begins January 1, 2002, or later, your Tier 1 will not have an age reduction.

not have an age reduction.

Continued on next page

 

Conditions Under Which a Person is Entitled to a Railroad Retirement SPOUSE ANNUITY (continued)

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

If the employee retired:

and the employee has attained

your spouse annuity can begin the first full month you are age 62. Your Tier 1 will:

Your Tier 2 will:

before 1975 with at least 120 months of railroad service,

age 65,

have an age reduction if you retire before attaining your FRA.

have an age reduction if you retire before attaining age 65

In 1975 or later, with at least 120 months of railroad service including some railroad service before August 12, 1983

age 62,

have an age reduction if you retire before attaining your FRA.

have an age reduction if you retire before attaining age 65

In 1975 or later, with at least 120 months of railroad service and no railroad service before August 12, 1983

age 62,

have an age reduction if you retire before attaining your FRA.

have an age reduction if you retire before attaining your FRA.

January 2002 or later, with at least 60 months of railroad service after 1995,

 

age 62,

 

have an age reduction if you retire before attaining your FRA.

(The employee must have an SSA Insured Status to qualify you for a Tier 1 benefit.)

have an age reduction if you retire before attaining your FRA

Full Retirement Age (FRA) for Annuities Based on Less Than 30 years of 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

If you were born:

Then your Full Retirement Age is:

Before 1-2-1938

65

1-2-1938 thru 1-1-1939

65 and 2 months

1-2-1939 thru 1-1-1940

65 and 4 months

1-2-1940 thru 1-1-1941

65 and 6 months

1-2-1941 thru 1-1-1942

65 and 8 months

1-2-1942 thru 1-1-1943

65 and 10 months

1-2-1943 thru 1-1-1955

66

1-2-1955 thru 1-1-1956

66 and 2 months

1-2-1956 thru 1-1-1957

66 and 4 months

1-2-1957 thru 1-1-1958

66 and 6 months

1-2-1958 thru 1-1-1959

66 and 8 months

1-2-1959 thru 1-1-1960

66 and 10 months

1-2-1960 and later

67

 

 

 

 

Conditions Under Which a Person is Entitled to a Railroad Retirement SPOUSE ANNUITY (continued)

Marriage Requirements

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

· you have been married to the railroad employee for at least one year immediately prior to filing your spouse annuity application; or,

· you are the natural parent of the railroad employee's child; or,

· you were eligible for a widow(er)'s, parent's, or disabled child's annuity under the Railroad Retirement Act in the month before your marriage to the employee.

Definition of Child-in-Care

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:

· a minor child under age 18; or,

· a child age 18 or older with a permanent disability which began before the child attained age 22 and prevents any type of regular employment.

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.

Tier 1 Reductions for Non-Railroad Earnings

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

For a year in which:

You may lose up to $1 in Tier 1 benefits for every

The reduction:

you attain FRA,

$3.00 of earnings over the Annual Earnings Exempt Amount for your age group. However, your earnings are only counted for months before the month in which you attain FRA.

is removed effective the month in which you attain FRA.

you are under FRAfor the entire year,

$2.00 of earnings over the Annual Earnings Exempt Amount for your age group.

applies for the full year.

you work outside the U.S. for 45 or more hours per month,

$2.00 of earnings. There is no Annual Earnings Exempt Amount for work outside the U.S. However, your earnings are only counted for months before the month in which you attain FRA.

is removed effective the month in which you attain FRA.

 

 

 

Conditions Under Which a Person is Entitled to a Railroad Retirement SPOUSE ANNUITY (continued)

SSA Insured Status

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.

Tier 2 Reductions for Last Pre-Retirement Non-Railroad Earnings

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.

When a Spouse Annuity is Not Payable

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

· the employee's annuity is not payable; or,

· you work for a railroad employer; or,

· you become entitled to your own railroad retirement employee annuity on your own earnings record that exceeds the amount of your spouse annuity on this earnings record and neither earnings record includes railroad service before 1975; or,

· you become entitled to a railroad retirement survivor annuity on a different RRB earnings record that exceeds the spouse annuity rate.

 

When a Spouse Annuity Ends

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

· you die; or,

· the employee dies. (A widow(er)'s annuity may become payable at this time); or,

· the employee's entitlement to an employee annuity terminates due to recovery from disability; or,

· your marriage to the employee ends by absolute divorce, (A divorced spouse annuity may become payable at this time); or,

· your marriage to the employee is dissolved by annulment; or,

· the child qualifying you for an annuity is no longer in your care or attains age 18 or recovers from disability. Your spouse annuity will end unless you are old enough to receive a spouse annuity based on age.

 

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)

Conditions Under Which a Person is Entitled

to a Railroad Retirement DIVORCED SPOUSE Annuity

Age Requirement

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

If the employee is at least:

and the employee is:

your divorced spouse annuity can begin:

Your Annuity will:

age 62 with at least 120 months of railroad service

receiving an employee annuity

The first full month you are age 62.

have an age reduction if you retire before attaining your Full Retirement Age (FRA).

Age 62 with at least 60 months of railroad service after 1995 and an SSA Insured Status

 

receiving an employee annuity

The first full month you are age 62.

have an age reduction if you retire before attaining your Full Retirement Age (FRA).

Definition of Full Retirement Age for an Age Reduction

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

If you were born:

Then your Full Retirement Age is:

Before 1-2-1938

65

1-2-1938 thru 1-1-1939

65 and 2 months

1-2-1939 thru 1-1-1940

65 and 4 months

1-2-1940 thru 1-1-1941

65 and 6 months

1-2-1941 thru 1-1-1942

65 and 8 months

1-2-1942 thru 1-1-1943

65 and 10 months

1-2-1943 thru 1-1-1955

66

1-2-1955 thru 1-1-1956

66 and 2 months

1-2-1956 thru 1-1-1957

66 and 4 months

1-2-1957 thru 1-1-1958

66 and 6 months

1-2-1958 thru 1-1-1959

66 and 8 months

1-2-1959 thru 1-1-1960

66 and 10 months

1-2-1960 and later

67

 

 

 

Conditions Under Which a Person is Entitled to a Railroad Retirement DIVORCED SPOUSE ANNUITY (continued)

Marriage Requirements

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:

· You were married to the railroad employee for at least 10 consecutive years immediately preceding the date of your final divorce decree; and,

· You are divorced from that railroad employee; and,

· You are not currently married to anyone. (If you remarried after the divorce from the employee, the later marriage must have terminated.)

· You are not entitled to a social security benefit (before any reductions) on your own earnings record that exceeds the amount of the divorced spouse annuity.

SSA Insured Status

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:

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.

Tier 1 Reductions for Non-Railroad Earnings

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

For a year:

You may lose up to $1 in Tier 1 benefits for every

The reduction:

in which you attain Full Retirement Age (FRA),

$3.00 of earnings over the Annual Earnings Exempt Amount for your age group. However your earnings are only counted for months before the month in which you attain FRA.

is removed effective the month in which you attain FRA.

you are under Full Retirement Age for the entire year,

$2.00 of earnings over the Annual Earnings Exempt Amount for your age group.

applies for the full year.

you work outside the U.S. for 45 or more hours per month,

$2.00 of earnings. There is no Annual Earnings Exempt Amount for work outside the U.S. However, your earnings are only counted for months before the month in which you attain FRA.

is removed effective the month in which you attain FRA.

 

When a Divorced Spouse Annuity is not Payable

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

· the employee's annuity is not payable; or,

· you work for a railroad employer, or,

· you become entitled to an RRA employee annuity on your own earnings record that exceeds the amount of your RRA divorced spouse annuity rate.

When a Divorced Spouse Annuity Ends

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

· you die; or,

· the employee dies. (A surviving divorced spouse annuity may become payable at this time); or,

· the employee's entitlement to an employee annuity terminates due to recovery from disability; or,

· you marry; or,

· you become entitled to SS benefits on your own earnings record that are greater than the RRA divorced spouse annuity; or,

· you become entitled to an RRA survivor annuity on another claim number that exceeds the amount of the RRA divorced spouse annuity.

 

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)